diff --git a/src/lager.erl b/src/lager.erl
index d8d7792..705fa23 100644
--- a/src/lager.erl
+++ b/src/lager.erl
@@ -214,7 +214,7 @@ trace_file(File, Filter, Level, Options) ->
         {Sink, {ok, Trace}} ->
             Handlers = lager_config:global_get(handlers, []),
             %% check if this file backend is already installed
-            Res = case lists:keyfind({lager_file_backend, FileName}, 1, Handlers) of
+            Res = case lager_util:find_file(FileName, Handlers) of
                       false ->
                           %% install the handler
                           LogFileConfig =
diff --git a/src/lager_util.erl b/src/lager_util.erl
index 842ef32..c33d1a9 100644
--- a/src/lager_util.erl
+++ b/src/lager_util.erl
@@ -28,7 +28,7 @@
     open_logfile/2, ensure_logfile/4, rotate_logfile/2, format_time/0, format_time/1,
     localtime_ms/0, localtime_ms/1, maybe_utc/1, parse_rotation_date_spec/1,
     calculate_next_rotation/1, validate_trace/1, check_traces/4, is_loggable/3,
-    trace_filter/1, trace_filter/2, expand_path/1, check_hwm/1,
+    trace_filter/1, trace_filter/2, expand_path/1, find_file/2, check_hwm/1,
     make_internal_sink_name/1, otp_version/0
 ]).
 
@@ -514,6 +514,26 @@ expand_path(RelPath) ->
             RelPath
     end.
 
+%% Find a file among the already installed handlers.
+%%
+%% The file is already expanded (i.e. lager_util:expand_path already added the
+%% "log_root"), but the file paths inside Handlers are not.
+find_file(_File1, _Handlers = []) ->
+    false;
+find_file(File1, [{{lager_file_backend, File2}, _Handler, _Sink} = HandlerInfo | Handlers]) ->
+    File1Abs = filename:absname(File1),
+    File2Abs = filename:absname(lager_util:expand_path(File2)),
+    case File1Abs =:= File2Abs of
+        true ->
+            % The file inside HandlerInfo is the same as the file we are looking
+            % for, so we are done.
+            HandlerInfo;
+        false ->
+            find_file(File1, Handlers)
+    end;
+find_file(File1, [_HandlerInfo | Handlers]) ->
+    find_file(File1, Handlers).
+
 %% Log rate limit, i.e. high water mark for incoming messages
 
 check_hwm(Shaper = #lager_shaper{hwm = undefined}) ->
diff --git a/test/lager_trace_test.erl b/test/lager_trace_test.erl
new file mode 100644
index 0000000..48d722d
--- /dev/null
+++ b/test/lager_trace_test.erl
@@ -0,0 +1,103 @@
+-module(lager_trace_test).
+
+-compile([{parse_transform, lager_transform}]).
+
+-ifdef(TEST).
+-include_lib("eunit/include/eunit.hrl").
+
+% Our expectation is that the first log entry will appear so we won't actually
+% wait out ?FIRST_LOG_ENTRY_TIMEOUT. On the other hand, the second log entry is
+% expected never to arrive, so the test will wait out ?SECOND_LOG_ENTRY_TIMEOUT;
+% that's why it is shorter.
+-define(FIRST_LOG_ENTRY_TIMEOUT, (10 * 1000)). % 10 seconds
+-define(SECOND_LOG_ENTRY_TIMEOUT, 1000). % 1 second
+
+-define(FNAME, "test/test1.log").
+
+trace_test_() ->
+    {timeout,
+     10,
+     {foreach,
+         fun() ->
+                 file:write_file(?FNAME, ""),
+                 error_logger:tty(false),
+                 application:load(lager),
+                 application:set_env(lager, log_root, "test"),
+                 application:set_env(lager, handlers,
+                                     [{lager_file_backend,
+                                       [{file, "test1.log"},
+                                        {level, none},
+                                        {formatter, lager_default_formatter},
+                                        {formatter_config, [message, "\n"]}
+                                       ]}]),
+                 application:set_env(lager, traces,
+                                     [{{lager_file_backend, "test1.log"},
+                                       [{tag, mytag}], info}]),
+                 application:set_env(lager, error_logger_redirect, false),
+                 application:set_env(lager, async_threshold, undefined),
+                 lager:start()
+         end,
+         fun(_) ->
+                 file:delete(?FNAME),
+                 application:stop(lager),
+                 application:stop(goldrush),
+                 application:unset_env(lager, log_root),
+                 application:unset_env(lager, handlers),
+                 application:unset_env(lager, traces),
+                 application:unset_env(lager, error_logger_redirect),
+                 application:unset_env(lager, async_threshold),
+                 error_logger:tty(true)
+         end,
+         [{"Trace combined with log_root",
+             fun() ->
+                 lager:info([{tag, mytag}], "Test message"),
+
+                 % Wait until we have the expected log entry in the log file.
+                 case wait_until(fun() ->
+                                         count_lines(?FNAME) >= 1
+                                 end, ?FIRST_LOG_ENTRY_TIMEOUT) of
+                     ok ->
+                         ok;
+                     {error, timeout} ->
+                         throw({file_empty, file:read_file(?FNAME)})
+                 end,
+
+                 % Let's wait a little to see that we don't get a duplicate log
+                 % entry.
+                 case wait_until(fun() ->
+                                         count_lines(?FNAME) >= 2
+                                 end, ?SECOND_LOG_ENTRY_TIMEOUT) of
+                     ok ->
+                         throw({too_many_entries, file:read_file(?FNAME)});
+                     {error, timeout} ->
+                         ok
+                 end
+             end}
+          ]}}.
+
+% Wait until Fun() returns true.
+wait_until(Fun, Timeout) ->
+    wait_until(Fun, Timeout, {8, 13}).
+
+wait_until(_Fun, Timeout, {T1, _}) when T1 > Timeout ->
+    {error, timeout};
+wait_until(Fun, Timeout, {T1, T2}) ->
+    case Fun() of
+        true ->
+            ok;
+        false ->
+            timer:sleep(T1),
+            wait_until(Fun, Timeout, {T2, T1 + T2})
+    end.
+
+% Return the number of lines in a file. Return 0 for a non-existent file.
+count_lines(Filename) ->
+    case file:read_file(Filename) of
+        {ok, Content} ->
+            Lines = binary:split(Content, <<"\n">>, [global, trim]),
+            length(Lines);
+        {error, _} ->
+            0
+    end.
+
+-endif.