diff --git a/CHANGELOG.md b/CHANGELOG.md
index cf34dce..9cf63b7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -34,6 +34,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 * the Notes view is refreshed after a note has been deleted, instead of before
 * deleting a folder relied on a package that was only installed as a development dependency
 * New Note and New Folder failed when a note was selected, they now create next to the note (#67, #76)
+* in a portable VS Code, a relative storage location is relative to the folder holding VS Code, so notes can be kept with it and opened from there (#38)
 
 ## [2.0.0] - 2025-03-26
 
diff --git a/README.md b/README.md
index 154b44c..79a848b 100644
--- a/README.md
+++ b/README.md
@@ -38,7 +38,7 @@ A multi-root workspace uses the first folder for relative locations.
 
 This extension contributes the following settings:
 
-* `Notes.notesLocation`: location of the notes in the Notes section, set in your user settings and not synced between machines
+* `Notes.notesLocation`: location of the notes in the Notes section, set in your user settings and not synced between machines. In a [portable](https://code.visualstudio.com/docs/editor/portable) VS Code, a relative path is relative to the folder holding VS Code, so the notes can travel with it (for example `data/Notes` on Windows and Linux)
 * `Notes.workspaceNotesLocation`: location of the notes in the Workspace Notes section, relative to the workspace folder or a full path
 * `Notes.notesDefaultNotesExtension`: extension used for new notes
 * `Notes.notesExtensions`: list of extensions recognized as notes or '*' for all extensions
diff --git a/package.json b/package.json
index 063b2f5..6f54407 100644
--- a/package.json
+++ b/package.json
@@ -39,7 +39,7 @@
 					"type": "string",
 					"default": "",
 					"scope": "machine-overridable",
-					"description": "Storage location for the Notes view, set in your user settings. A path starting with `~` is in your home folder. Not synced between machines. A value in a workspace's settings is used as that workspace's notes, use `notes.workspaceNotesLocation` for that instead."
+					"description": "Storage location for the Notes view, set in your user settings. A path starting with `~` is in your home folder. In a portable VS Code, a relative path is relative to the folder holding it, so the notes can travel with it. Not synced between machines. A value in a workspace's settings is used as that workspace's notes, use `notes.workspaceNotesLocation` for that instead."
 				},
 				"notes.workspaceNotesLocation": {
 					"type": "string",
diff --git a/src/extension.ts b/src/extension.ts
index 9e2a367..8016028 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -6,7 +6,7 @@ import * as path from 'path';
 import { Note } from './note';
 import { NotesViewProvider } from './notesViewProvider';
 import { NotesWatcher } from './notesWatcher';
-import { getLocationState, resolveNotesLocation, toWorkspaceSetting } from './location';
+import { getLocationState, getPortableFolder, resolveNotesLocation, toWorkspaceSetting } from './location';
 
 let extId = 'vscode-notes';
 let extPub = 'dionmunk';
@@ -231,11 +231,12 @@ export class Notes {
 		return vscode.workspace.workspaceFolders?.[0]?.uri.fsPath;
 	}
 
-	// get notes storage location, with ~ and a path relative to the workspace folder resolved
+	// get notes storage location, with ~ and a relative path resolved: against the folder holding a portable
+	// VS Code, so the notes travel with it, otherwise against the workspace folder
 	// only the user settings count: a notesLocation in workspace settings is that workspace's notes
 	static getNotesLocation(): string {
 		const notesLocation = vscode.workspace.getConfiguration('notes').inspect<string>('notesLocation')?.globalValue;
-		return resolveNotesLocation(notesLocation, os.homedir(), Notes.getWorkspaceFolder());
+		return resolveNotesLocation(notesLocation, os.homedir(), getPortableFolder() ?? Notes.getWorkspaceFolder());
 	}
 
 	// get the workspace notes location, '' without a workspace folder or a location
diff --git a/src/location.ts b/src/location.ts
index 199dfe2..5f63fe3 100644
--- a/src/location.ts
+++ b/src/location.ts
@@ -61,3 +61,11 @@ export function toWorkspaceSetting(folder: string, workspaceDir: string): string
 	// forward slashes work on every platform, and the setting may be shared through the repository
 	return relative.split(path.sep).join('/');
 }
+
+// the folder holding a portable VS Code, which a relative notes location is resolved against so the notes
+// travel with it: VS Code sets VSCODE_PORTABLE to its portable data folder, the `data` folder in the
+// program folder on Windows and Linux, or `code-portable-data` next to the application on macOS
+export function getPortableFolder(env: NodeJS.ProcessEnv = process.env): string | undefined {
+	const portableData = env.VSCODE_PORTABLE;
+	return portableData ? path.dirname(portableData) : undefined;
+}
diff --git a/src/test/suite/location.test.ts b/src/test/suite/location.test.ts
index bb5f21c..0f4d727 100644
--- a/src/test/suite/location.test.ts
+++ b/src/test/suite/location.test.ts
@@ -2,7 +2,7 @@ import * as assert from 'assert';
 import * as fs from 'fs';
 import * as os from 'os';
 import * as path from 'path';
-import { getLocationState, resolveNotesLocation, toWorkspaceSetting } from '../../location';
+import { getLocationState, getPortableFolder, resolveNotesLocation, toWorkspaceSetting } from '../../location';
 
 suite('Notes Location', () => {
 	const home = path.join(path.sep, 'home', 'someone');
@@ -77,4 +77,17 @@ suite('Notes Location', () => {
 		const picked = path.join(workspace, 'docs', 'notes');
 		assert.strictEqual(resolveNotesLocation(toWorkspaceSetting(picked, workspace), home, workspace), picked);
 	});
+
+	test('a portable VS Code is the folder holding its portable data folder', () => {
+		const install = path.join(path.sep, 'usb', 'VSCode');
+		assert.strictEqual(getPortableFolder({ VSCODE_PORTABLE: path.join(install, 'data') }), install);
+		assert.strictEqual(getPortableFolder({}), undefined);
+		assert.strictEqual(getPortableFolder({ VSCODE_PORTABLE: '' }), undefined);
+	});
+
+	test('a relative location in a portable VS Code is inside its folder (#38)', () => {
+		const install = path.join(path.sep, 'usb', 'VSCode');
+		const portable = getPortableFolder({ VSCODE_PORTABLE: path.join(install, 'data') });
+		assert.strictEqual(resolveNotesLocation('data/Notes', home, portable), path.join(install, 'data', 'Notes'));
+	});
 });