I am running the following code in texlive (latest version) in linux and got the error Unknown graphics extension: .eps. . I tried removing .eps extension but it gave me file.eps not found. my path is correct and file name is also double checked. I am compiling using pdflatex

\documentclass[12pt,a4paper,twoside]{book}
\usepackage{epstopdf}
\usepackage{caption}
\usepackage{subfig}
\usepackage{graphicx} % [demo] is just for the example
\graphicspath{{ch1_figures/}{./jiis_images/}}
\begin{document}
\begin{figure}[ht]
\centering
\subfloat[A]{\includegraphics[width=0.3\textwidth]{file.eps}\label{fig:subfig5}}
\end{figure}
\end{document}

• If you load the epstopdf package you should do it after graphicx. But normally it is not needed as graphicx loads it. Imho the support of \graphicspath is broken in epstopdf (or never worked). Add the path to the subfolder in the \includegraphics command. – Ulrike Fischer May 26 '16 at 10:30
• @UlrikeFischer. I loaded epstopdf after \graphicx and it worked like charm. It sucks when we don't know the proper ordering of loading packages. – chandresh May 26 '16 at 10:39
• Well the loading order is described in the documentation, so you could know. Is your file.eps in the current folder or in one of the folders from the graphicspath command? – Ulrike Fischer May 26 '16 at 10:46
• In one of the folders of the graphicspath command. – chandresh May 26 '16 at 10:50
• Are you using linux? For me (on windows) epstopf doesn't succeed in this case. – Ulrike Fischer May 26 '16 at 10:51