diff -r f316e6d6271a Lib/posixpath.py
--- a/Lib/posixpath.py	Mon Mar 21 10:32:02 2011 +0100
+++ b/Lib/posixpath.py	Mon Mar 21 03:26:48 2011 -0700
@@ -354,46 +354,44 @@
 
 def realpath(filename):
     """Return the canonical path of the specified filename, eliminating any
-symbolic links encountered in the path."""
-    if isabs(filename):
-        bits = ['/'] + filename.split('/')[1:]
-    else:
-        bits = [''] + filename.split('/')
-
-    for i in range(2, len(bits)+1):
-        component = join(*bits[0:i])
-        # Resolve symbolic links.
-        if islink(component):
-            resolved = _resolve_link(component)
-            if resolved is None:
-                # Infinite loop -- return original component + rest of the path
-                return abspath(join(*([component] + bits[i:])))
-            else:
-                newpath = join(*([resolved] + bits[i:]))
-                return realpath(newpath)
-
-    return abspath(filename)
-
-
-def _resolve_link(path):
-    """Internal helper function.  Takes a path and follows symlinks
-    until we either arrive at something that isn't a symlink, or
-    encounter a path we've seen before (meaning that there's a loop).
+    symbolic links encountered in the path.
     """
     paths_seen = set()
-    while islink(path):
-        if path in paths_seen:
-            # Already seen this path, so we must have a symlink loop
-            return None
-        paths_seen.add(path)
-        # Resolve where the link points to
-        resolved = os.readlink(path)
-        if not isabs(resolved):
-            dir = dirname(path)
-            path = normpath(join(dir, resolved))
+    current = []    # the working stack
+    # get abspath of filename without normalization
+    cwd = os.getcwdu() if isinstance(filename, unicode) else os.getcwd()
+    components = join(cwd, filename).split(sep)
+    while len(components):
+        comp = components.pop(0)
+        if comp == '.':
+            continue
+        elif comp == '..':
+            current.pop()
         else:
-            path = normpath(resolved)
-    return path
+            current.append(comp)
+
+        # join what we have so far
+        cwd = sep.join(current)
+        if islink(cwd):
+            if cwd in paths_seen:
+                # already seen this path, so we must have a symlink loop
+                return abspath(filename)
+            paths_seen.add(cwd)
+            # resolve the symlink
+            tmp = os.readlink(cwd)
+            tmplist = tmp.split(sep)
+            # insert the symlink expansion into the components stack
+            components = tmplist + components
+            if isabs(tmp):
+                # symlink to an abs path; start over because there might be
+                # another symlink inside the target abs path
+                current = []
+            else:
+                # pop the previously pushed symlink; continue popping
+                # components, starting with the recently pushed expansion
+                current.pop()
+
+    return sep.join(current)
 
 supports_unicode_filenames = (sys.platform == 'darwin')
 
diff -r f316e6d6271a Lib/test/test_posixpath.py
--- a/Lib/test/test_posixpath.py	Mon Mar 21 10:32:02 2011 +0100
+++ b/Lib/test/test_posixpath.py	Mon Mar 21 03:26:48 2011 -0700
@@ -309,6 +309,30 @@
                 safe_rmdir(ABSTFN + "/k")
                 safe_rmdir(ABSTFN)
 
+        def test_realpath_issue11397(self):
+            # Issue #11397: realpath() fails to return the correct real path of
+            # some tree of symlinks.
+            try:
+                old_path = abspath('.')
+                os.mkdir(ABSTFN)
+                os.chdir(ABSTFN)
+                os.mkdir(ABSTFN + '/a')
+                os.symlink('../a', 'a/blink')
+                os.makedirs(ABSTFN + '/a/c/d')
+                os.symlink('a/c/d/..', 'xlink')         # xlink -> /a/c
+                os.symlink('xlink/../blink', 'zlink')   # zlink -> /a/blink -> /a
+
+                self.assertEqual(realpath('zlink'), ABSTFN + '/a')
+            finally:
+                os.chdir(old_path)
+                test_support.unlink(ABSTFN + '/zlink')
+                test_support.unlink(ABSTFN + '/xlink')
+                test_support.unlink(ABSTFN + '/a/blink')
+                safe_rmdir(ABSTFN + '/a/c/d')
+                safe_rmdir(ABSTFN + '/a/c')
+                safe_rmdir(ABSTFN + '/a')
+                safe_rmdir(ABSTFN)
+
     def test_relpath(self):
         (real_getcwd, os.getcwd) = (os.getcwd, lambda: r"/home/user/bar")
         try: