Attempted relative import with no known parent package

Everyone seems to want to tell you what you should be doing rather than just answering the question.

The problem is that you're running the module as '__main__' by passing the mod1.py as an argument to the interpreter.

From PEP 328:

Relative imports use a module's __name__ attribute to determine that module's position in the package hierarchy. If the module's name does not contain any package information (e.g. it is set to '__main__') then relative imports are resolved as if the module were a top level module, regardless of where the module is actually located on the file system.

In Python 2.6, they're adding the ability to reference modules relative to the main module. PEP 366 describes the change.

Update: According to Nick Coghlan, the recommended alternative is to run the module inside the package using the -m switch.

Assuming that both your directories are real Python packages (do have the __init__.py file inside them), here is a safe solution for inclusion of modules relatively to the location of the script.

I assume that you want to do this, because you need to include a set of modules with your script. I use this in production in several products and works in many special scenarios like: scripts called from another directory or executed with python execute instead of opening a new interpreter.

 import os, sys, inspect
 # realpath() will make your script run, even if you symlink it :)
 cmd_folder = os.path.realpath(os.path.abspath(os.path.split(inspect.getfile( inspect.currentframe() ))[0]))
 if cmd_folder not in sys.path:
     sys.path.insert(0, cmd_folder)

 # Use this if you want to include modules from a subfolder
 cmd_subfolder = os.path.realpath(os.path.abspath(os.path.join(os.path.split(inspect.getfile( inspect.currentframe() ))[0],"subfolder")))
 if cmd_subfolder not in sys.path:
     sys.path.insert(0, cmd_subfolder)

 # Info:
 # cmd_folder = os.path.dirname(os.path.abspath(__file__)) # DO NOT USE __file__ !!!
 # __file__ fails if the script is called in different ways on Windows.
 # __file__ fails if someone does os.chdir() before.
 # sys.argv[0] also fails, because it doesn't not always contains the path.

As a bonus, this approach does let you force Python to use your module instead of the ones installed on the system.

Warning! I don't really know what is happening when current module is inside an egg file. It probably fails too.