diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4dd2f89b..8f3f454d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -25,7 +25,7 @@ and this project adheres to [Semantic Versioning](https://semver.org).
 
 ### Fixed
 
-- Nothing
+- Xls Reader resolving absolute named ranges to relative ranges [Issue #2826](https://github.com/PHPOffice/PhpSpreadsheet/issues/2826) [PR #2827](https://github.com/PHPOffice/PhpSpreadsheet/pull/2827)
 
 
 ## 1.23.0 - 2022-04-24
diff --git a/src/PhpSpreadsheet/Reader/Xls.php b/src/PhpSpreadsheet/Reader/Xls.php
index d1f14ae1..af1104f5 100644
--- a/src/PhpSpreadsheet/Reader/Xls.php
+++ b/src/PhpSpreadsheet/Reader/Xls.php
@@ -1297,11 +1297,10 @@ class Xls extends BaseReader
                         ($docSheet = $this->spreadsheet->getSheetByName(trim($explodes[0], "'")))
                     ) {
                         $extractedRange = $explodes[1];
-                        $extractedRange = str_replace('$', '', $extractedRange);
 
-                        $localOnly = ($definedName['scope'] == 0) ? false : true;
+                        $localOnly = ($definedName['scope'] === 0) ? false : true;
 
-                        $scope = ($definedName['scope'] == 0) ? null : $this->spreadsheet->getSheetByName($this->sheets[$definedName['scope'] - 1]['name']);
+                        $scope = ($definedName['scope'] === 0) ? null : $this->spreadsheet->getSheetByName($this->sheets[$definedName['scope'] - 1]['name']);
 
                         $this->spreadsheet->addNamedRange(new NamedRange((string) $definedName['name'], $docSheet, $extractedRange, $localOnly, $scope));
                     }
diff --git a/tests/PhpSpreadsheetTests/Reader/Xls/DefinedNameTest.php b/tests/PhpSpreadsheetTests/Reader/Xls/DefinedNameTest.php
new file mode 100644
index 00000000..c9561580
--- /dev/null
+++ b/tests/PhpSpreadsheetTests/Reader/Xls/DefinedNameTest.php
@@ -0,0 +1,22 @@
+<?php
+
+namespace PhpOffice\PhpSpreadsheetTests\Reader\Xls;
+
+use PhpOffice\PhpSpreadsheet\Reader\Xls;
+use PHPUnit\Framework\TestCase;
+
+class DefinedNameTest extends TestCase
+{
+    public function testAbsoluteNamedRanges(): void
+    {
+        // Named Ranges were being converted from absolute to relative
+        $filename = 'tests/data/Reader/XLS/DefinedNameTest.xls';
+        $reader = new Xls();
+        $spreadsheet = $reader->load($filename);
+        $sheet = $spreadsheet->getActiveSheet();
+        self::assertSame($sheet->getCell('A7')->getCalculatedValue(), $sheet->getCell('B7')->getCalculatedValue());
+        self::assertSame($sheet->getCell('A8')->getCalculatedValue(), $sheet->getCell('B8')->getCalculatedValue());
+        self::assertSame($sheet->getCell('A9')->getCalculatedValue(), $sheet->getCell('B9')->getCalculatedValue());
+        $spreadsheet->disconnectWorksheets();
+    }
+}
diff --git a/tests/data/Reader/XLS/DefinedNameTest.xls b/tests/data/Reader/XLS/DefinedNameTest.xls
new file mode 100644
index 00000000..23be0c91
Binary files /dev/null and b/tests/data/Reader/XLS/DefinedNameTest.xls differ