diff --git a/src/components/LayerUI.tsx b/src/components/LayerUI.tsx
index ed4ec146..d585f1fe 100644
--- a/src/components/LayerUI.tsx
+++ b/src/components/LayerUI.tsx
@@ -121,7 +121,8 @@ const LibraryMenuItems = ({
   const rows = [];
   let addedPendingElements = false;
 
-  const referrer = libraryReturnUrl || window.location.origin;
+  const referrer =
+    libraryReturnUrl || window.location.origin + window.location.pathname;
 
   rows.push(
     <div className="layer-ui__library-header" key="library-header">
diff --git a/src/packages/excalidraw/CHANGELOG.md b/src/packages/excalidraw/CHANGELOG.md
index 1e4b54f5..770285ce 100644
--- a/src/packages/excalidraw/CHANGELOG.md
+++ b/src/packages/excalidraw/CHANGELOG.md
@@ -12,6 +12,14 @@ The change should be grouped under one of the below section and must contain PR
 Please add the latest change on the top under the correct section.
 -->
 
+## Unreleased
+
+## Excalidraw API
+
+### Features
+
+- Append `location.pathname` to `libraryReturnUrl` default url [#3325](https://github.com/excalidraw/excalidraw/pull/3325).
+
 ## 0.5.0 (2021-03-21)
 
 ## Excalidraw API
diff --git a/src/packages/excalidraw/README.md b/src/packages/excalidraw/README.md
index d1220aca..7932020a 100644
--- a/src/packages/excalidraw/README.md
+++ b/src/packages/excalidraw/README.md
@@ -545,7 +545,7 @@ This prop indicates whether the shows the grid. When supplied, the value takes p
 
 #### `libraryReturnUrl`
 
-If supplied, this URL will be used when user tries to install a library from [libraries.excalidraw.com](https://libraries.excalidraw.com). Default to `window.location.origin`. To install the libraries in the same tab from which it was opened, you need to set `window.name` (to any alphanumeric string) — if it's not set it will open in a new tab.
+If supplied, this URL will be used when user tries to install a library from [libraries.excalidraw.com](https://libraries.excalidraw.com). Defaults to `window.location.origin + window.location.pathname`. To install the libraries in the same tab from which it was opened, you need to set `window.name` (to any alphanumeric string) — if it's not set it will open in a new tab.
 
 #### `theme`