diff --git a/NEWS b/NEWS
index d09d4f489..03bc819bc 100644
--- a/NEWS
+++ b/NEWS
@@ -15,6 +15,8 @@ Changes in 3.0.11 (since 3.0.10)
 
 * Bug fixes
 
+** `basename` now checks the suffix against the base name, not the full path
+   (<https://debbugs.gnu.org/69437>)
 ** test-hashing should now work on 32-bit systems
 ** GUILE-VERSION changes should propagate to .version and relevant Makefiles
    (<https://debbugs.gnu.org/72084>)
diff --git a/libguile/filesys.c b/libguile/filesys.c
index 5b1453bf6..8657fedc3 100644
--- a/libguile/filesys.c
+++ b/libguile/filesys.c
@@ -2037,10 +2037,10 @@ SCM_DEFINE (scm_dirname, "dirname", 1, 0, 0,
 
 SCM_DEFINE (scm_basename, "basename", 1, 1, 0, 
             (SCM filename, SCM suffix),
-	    "Return the base name of the file name @var{filename}. The\n"
-	    "base name is the file name without any directory components.\n"
-	    "If @var{suffix} is provided, and is equal to the end of\n"
-	    "@var{filename}, it is removed also.")
+            "Return the base name of @var{filename}. The base name is the\n"
+            "@var{filename} without any directory components.\n"
+            "If the @var{suffix} matches the end of the base name and is\n"
+            "shorter, then it is removed from the result.\n")
 #define FUNC_NAME s_scm_basename
 {
   char *c_filename;
@@ -2057,17 +2057,28 @@ SCM_DEFINE (scm_basename, "basename", 1, 1, 0,
        "/" and "//" are treated specially.  */
     res = scm_from_utf8_string ("/");
   else
-    res = scm_from_utf8_string (last_component (c_filename));
+    {
+      char *last = last_component (c_filename);
+      if (SCM_UNBNDP (suffix))
+        res = scm_from_utf8_string (last);
+      else
+        {
+          char * const c_suffix = scm_to_utf8_string (suffix);
+          scm_dynwind_free (c_suffix);
+          const size_t res_n = strlen (last);
+          const size_t suf_n = strlen (c_suffix);
+          if (suf_n < res_n)
+            {
+              const size_t prefix_n = res_n - suf_n;
+              if (strcmp (last + prefix_n, c_suffix) == 0)
+                last[prefix_n] = '\0';
+            }
+          res = scm_from_utf8_string (last);
+        }
+    }
 
   scm_dynwind_end ();
 
-  if (!SCM_UNBNDP (suffix) &&
-      scm_is_true (scm_string_suffix_p (suffix, filename,
-                                        SCM_UNDEFINED, SCM_UNDEFINED,
-                                        SCM_UNDEFINED, SCM_UNDEFINED)))
-    res = scm_c_substring
-      (res, 0, scm_c_string_length (res) - scm_c_string_length (suffix));
-
   return res;
 }
 #undef FUNC_NAME
diff --git a/test-suite/tests/filesys.test b/test-suite/tests/filesys.test
index 45e77c823..fa8d6f797 100644
--- a/test-suite/tests/filesys.test
+++ b/test-suite/tests/filesys.test
@@ -311,7 +311,15 @@
 
   (pass-if-equal "/" "/" (basename "/"))
   (pass-if-equal "//" "/" (basename "//"))
-  (pass-if-equal "a/b/c" "c" (basename "a/b/c")))
+  (pass-if-equal "a/b/c" "c" (basename "a/b/c"))
+
+  (pass-if-equal "a.b" (basename "a.b" "a.b"))
+  (pass-if-equal "a.b" (basename "/a.b" "a.b"))
+  (pass-if-equal "a" (basename "a.b" ".b"))
+  (pass-if-equal "a" (basename "/a.b" ".b"))
+
+  ;; https://debbugs.gnu.org/69437
+  (pass-if-equal "bar" (basename "foo/bar" "o/bar")))
 
 (delete-file (test-file))
 (when (file-exists? (test-symlink))