diff --git a/django_components/template_loader.py b/django_components/template_loader.py
index ac3372e0..d094dab0 100644
--- a/django_components/template_loader.py
+++ b/django_components/template_loader.py
@@ -14,15 +14,22 @@ class Loader(FilesystemLoader):
         component_dir = "components"
         directories = set(get_app_template_dirs(component_dir))
 
+        if hasattr(settings, "BASE_DIR"):
+            path = (settings.BASE_DIR / component_dir).resolve()
+            if path.is_dir():
+                directories.add(path)
+
         if settings.SETTINGS_MODULE:
-            settings_path = Path(*settings.SETTINGS_MODULE.split("."))
+            module_parts = settings.SETTINGS_MODULE.split(".")
+            module_path = Path(*module_parts)
 
-            path = (settings_path / ".." / component_dir).resolve()
-            if path.is_dir():
-                directories.add(path)
+            if len(module_parts) > 2:
+                module_path = Path(*module_parts[:-1])
 
-            path = (settings_path / ".." / ".." / component_dir).resolve()
-            if path.is_dir():
-                directories.add(path)
+            # Use list() for < Python 3.9
+            for parent in list(module_path.parents)[:2]:
+                path = (parent / component_dir).resolve()
+                if path.is_dir():
+                    directories.add(path)
 
         return list(directories)
diff --git a/tests/test_autodiscover.py b/tests/test_autodiscover.py
index 42a48633..89b55c42 100644
--- a/tests/test_autodiscover.py
+++ b/tests/test_autodiscover.py
@@ -1,3 +1,6 @@
+from pathlib import Path
+
+from django.template.engine import Engine
 from django.urls import include, path
 
 # isort: off
@@ -6,8 +9,8 @@ from .testutils import Django30CompatibleSimpleTestCase as SimpleTestCase
 
 # isort: on
 
-
 from django_components import autodiscover, component
+from django_components.template_loader import Loader
 
 urlpatterns = [
     path("", include("tests.components.urls")),
@@ -28,3 +31,104 @@ class TestAutodiscover(SimpleTestCase):
             self.fail(
                 "Autodiscover should not raise AlreadyRegistered exception"
             )
+
+
+class TestLoaderSettingsModule(SimpleTestCase):
+    def tearDown(self) -> None:
+        del settings.SETTINGS_MODULE  # noqa
+
+    def test_get_dirs(self):
+        settings.SETTINGS_MODULE = "tests.test_autodiscover"  # noqa
+        current_engine = Engine.get_default()
+        loader = Loader(current_engine)
+        dirs = loader.get_dirs()
+        self.assertEqual(
+            dirs, [Path(__file__).parent.resolve() / "components"]
+        )
+
+    def test_complex_settings_module(self):
+        settings.SETTINGS_MODULE = (  # noqa
+            "tests.test_structures.test_structure_1.config.settings"
+        )
+
+        current_engine = Engine.get_default()
+        loader = Loader(current_engine)
+        dirs = loader.get_dirs()
+        self.assertEqual(
+            dirs,
+            [
+                Path(__file__).parent.resolve()
+                / "test_structures"
+                / "test_structure_1"
+                / "components"
+            ],
+        )
+
+    def test_complex_settings_module_2(self):
+        settings.SETTINGS_MODULE = "tests.test_structures.test_structure_2.project.settings.production"  # noqa
+
+        current_engine = Engine.get_default()
+        loader = Loader(current_engine)
+        dirs = loader.get_dirs()
+        self.assertEqual(
+            dirs,
+            [
+                Path(__file__).parent.resolve()
+                / "test_structures"
+                / "test_structure_2"
+                / "project"
+                / "components"
+            ],
+        )
+
+    def test_complex_settings_module_3(self):
+        settings.SETTINGS_MODULE = "tests.test_structures.test_structure_3.project.settings.production"  # noqa
+
+        current_engine = Engine.get_default()
+        loader = Loader(current_engine)
+        dirs = loader.get_dirs()
+        expected = [
+            (
+                Path(__file__).parent.resolve()
+                / "test_structures"
+                / "test_structure_3"
+                / "components"
+            ),
+            (
+                Path(__file__).parent.resolve()
+                / "test_structures"
+                / "test_structure_3"
+                / "project"
+                / "components"
+            ),
+        ]
+        self.assertEqual(
+            sorted(dirs),
+            sorted(expected),
+        )
+
+
+class TestBaseDir(SimpleTestCase):
+    def setUp(self):
+        settings.BASE_DIR = (  # noqa
+            Path(__file__).parent.resolve()
+            / "test_structures"
+            / "test_structure_1"
+        )
+        settings.SETTINGS_MODULE = "tests_fake.test_autodiscover_fake"  # noqa
+
+    def tearDown(self) -> None:
+        del settings.BASE_DIR  # noqa
+        del settings.SETTINGS_MODULE  # noqa
+
+    def test_base_dir(self):
+        current_engine = Engine.get_default()
+        loader = Loader(current_engine)
+        dirs = loader.get_dirs()
+        expected = [
+            Path(__file__).parent.resolve()
+            / "test_structures"
+            / "test_structure_1"
+            / "components"
+        ]
+        self.assertEqual(dirs, expected)
diff --git a/tests/test_structures/test_structure_1/components/component.py b/tests/test_structures/test_structure_1/components/component.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_1/config/settings.py b/tests/test_structures/test_structure_1/config/settings.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_2/project/components/component.py b/tests/test_structures/test_structure_2/project/components/component.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_2/project/settings/production.py b/tests/test_structures/test_structure_2/project/settings/production.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_3/components/component.py b/tests/test_structures/test_structure_3/components/component.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_3/project/components/component.py b/tests/test_structures/test_structure_3/project/components/component.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/test_structures/test_structure_3/project/settings/production.py b/tests/test_structures/test_structure_3/project/settings/production.py
new file mode 100644
index 00000000..e69de29b