diff --git a/phpBB/phpbb/storage/adapter/local.php b/phpBB/phpbb/storage/adapter/local.php
index 8e491b0240..c7fbe544e9 100644
--- a/phpBB/phpbb/storage/adapter/local.php
+++ b/phpBB/phpbb/storage/adapter/local.php
@@ -256,17 +256,20 @@ class local implements adapter_interface, stream_interface
 	 */
 	protected function remove_empty_dirs($path)
 	{
-		$dirpath = dirname($this->root_path . $path);
-		$filepath = dirname($this->root_path . $this->get_path($path) . $this->get_filename($path));
-		$path = filesystem_helper::make_path_relative($filepath, $dirpath);
-
-		do
+		if ($this->subfolders)
 		{
-			$parts = explode('/', $path);
-			$parts = array_slice($parts, 0, -1);
-			$path = implode('/', $parts);
+			$dirpath = dirname($this->root_path . $path);
+			$filepath = dirname($this->root_path . $this->get_path($path) . $this->get_filename($path));
+			$path = filesystem_helper::make_path_relative($filepath, $dirpath);
+
+			do
+			{
+				$parts = explode('/', $path);
+				$parts = array_slice($parts, 0, -1);
+				$path = implode('/', $parts);
+			}
+			while ($path && @rmdir($dirpath . '/' . $path));
 		}
-		while ($path && @rmdir($dirpath . '/' . $path));
 	}
 
 	/**
@@ -277,6 +280,9 @@ class local implements adapter_interface, stream_interface
 	 */
 	protected function get_path($path)
 	{
+		$dirname = dirname($path);
+		$dirname = ($dirname != '.') ? $dirname . DIRECTORY_SEPARATOR : '';
+
 		if ($this->subfolders)
 		{
 			$hash = md5(basename($path));
@@ -284,17 +290,13 @@ class local implements adapter_interface, stream_interface
 			$parts = str_split($hash, 2);
 			$parts = array_slice($parts, 0, $this->dir_depth);
 
-			// Create path
-			$dirname = dirname($path);
-			$path = $dirname . DIRECTORY_SEPARATOR;
-
 			if (!empty($parts))
 			{
-				$path .= implode(DIRECTORY_SEPARATOR, $parts) . DIRECTORY_SEPARATOR;
+				$dirname .= implode(DIRECTORY_SEPARATOR, $parts) . DIRECTORY_SEPARATOR;
 			}
 		}
 
-		return $path;
+		return $dirname;
 	}
 
 	/**
diff --git a/tests/storage/adapter/local_subfolders_test.php b/tests/storage/adapter/local_subfolders_test.php
new file mode 100644
index 0000000000..250e1973c7
--- /dev/null
+++ b/tests/storage/adapter/local_subfolders_test.php
@@ -0,0 +1,136 @@
+<?php
+/**
+ *
+ * This file is part of the phpBB Forum Software package.
+ *
+ * @copyright (c) phpBB Limited <https://www.phpbb.com>
+ * @license GNU General Public License, version 2 (GPL-2.0)
+ *
+ * For full copyright and license information, please see
+ * the docs/CREDITS.txt file.
+ *
+ */
+
+ class phpbb_storage_adapter_local_subfolders_test extends phpbb_test_case
+ {
+	protected $adapter;
+
+	protected $path;
+
+	protected $filesystem;
+
+	public function setUp()
+	{
+		parent::setUp();
+
+		$this->filesystem = new \phpbb\filesystem\filesystem();
+		$phpbb_root_path = getcwd() . DIRECTORY_SEPARATOR;
+
+		$this->adapter = new \phpbb\storage\adapter\local($this->filesystem, new \FastImageSize\FastImageSize(), new \phpbb\mimetype\guesser(array(new \phpbb\mimetype\extension_guesser)), $phpbb_root_path);
+		$this->adapter->configure(['path' => 'test_path', 'subfolders' => true]);
+
+		$this->path = $phpbb_root_path . 'test_path/';
+		mkdir($this->path);
+	}
+
+	public function tearDown()
+	{
+		$this->adapter = null;
+		rmdir($this->path);
+	}
+
+	public function test_put_contents()
+	{
+		$this->adapter->put_contents('file.txt', 'abc');
+		$this->assertTrue(file_exists($this->path . '3d/8e/file.txt'));
+		$this->assertEquals(file_get_contents($this->path . '3d/8e/file.txt'), 'abc');
+		unlink($this->path . '3d/8e/file.txt');
+		rmdir($this->path . '3d/8e');
+		rmdir($this->path . '3d');
+	}
+
+	public function test_get_contents()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		file_put_contents($this->path . '3d/8e/file.txt', 'abc');
+		$this->assertEquals($this->adapter->get_contents('file.txt'), 'abc');
+		unlink($this->path . '3d/8e/file.txt');
+		rmdir($this->path . '3d/8e');
+		rmdir($this->path . '3d');
+	}
+
+	public function test_exists()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		touch($this->path . '3d/8e/file.txt');
+		$this->assertTrue($this->adapter->exists('file.txt'));
+		$this->assertFalse($this->adapter->exists('3d/8e/file.txt'));
+		unlink($this->path . '3d/8e/file.txt');
+		rmdir($this->path . '3d/8e');
+		rmdir($this->path . '3d');
+	}
+
+	public function test_delete_file()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		touch($this->path . '3d/8e/file.txt');
+		$this->assertTrue(file_exists($this->path . '3d/8e/file.txt'));
+		$this->adapter->delete('file.txt');
+		$this->assertFalse(file_exists($this->path . '3d/8e/file.txt'));
+		$this->assertFalse(file_exists($this->path . '3d'));
+	}
+
+	public function test_rename()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		touch($this->path . '3d/8e/file.txt');
+		$this->adapter->rename('file.txt', 'file2.txt');
+		$this->assertFalse(file_exists($this->path . '3d/8e/file.txt'));
+		$this->assertTrue(file_exists($this->path . '27/36/file2.txt'));
+		$this->assertFalse(file_exists($this->path . '3d'));
+		unlink($this->path . '27/36/file2.txt');
+		rmdir($this->path . '27/36');
+		rmdir($this->path . '27');
+	}
+
+	public function test_copy()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		file_put_contents($this->path . '3d/8e/file.txt', 'abc');
+		$this->adapter->copy('file.txt', 'file2.txt');
+		$this->assertEquals(file_get_contents($this->path . '3d/8e/file.txt'), 'abc');
+		$this->assertEquals(file_get_contents($this->path . '27/36/file2.txt'), 'abc');
+		unlink($this->path . '3d/8e/file.txt');
+		rmdir($this->path . '3d/8e');
+		rmdir($this->path . '3d');
+		unlink($this->path . '27/36/file2.txt');
+		rmdir($this->path . '27/36');
+		rmdir($this->path . '27');
+	}
+
+	public function test_read_stream()
+	{
+		mkdir($this->path . '3d/8e', 0777, true);
+		touch($this->path . '3d/8e/file.txt');
+		$stream = $this->adapter->read_stream('file.txt');
+		$this->assertTrue(is_resource($stream));
+		fclose($stream);
+		unlink($this->path . '3d/8e/file.txt');
+		rmdir($this->path . '3d/8e');
+		rmdir($this->path . '3d');
+	}
+
+	public function test_write_stream()
+	{
+		file_put_contents($this->path . 'file.txt', 'abc');
+		$stream = fopen($this->path . 'file.txt', 'rb');
+		$this->adapter->write_stream('file2.txt', $stream);
+		fclose($stream);
+		$this->assertEquals(file_get_contents($this->path . '27/36/file2.txt'), 'abc');
+		unlink($this->path . 'file.txt');
+		unlink($this->path . '27/36/file2.txt');
+		rmdir($this->path . '27/36');
+		rmdir($this->path . '27');
+	}
+
+ }
diff --git a/tests/storage/adapter/local_test.php b/tests/storage/adapter/local_test.php
index d24759b8d3..eb4b5e0dcf 100644
--- a/tests/storage/adapter/local_test.php
+++ b/tests/storage/adapter/local_test.php
@@ -27,7 +27,7 @@
 		$phpbb_root_path = getcwd() . DIRECTORY_SEPARATOR;
 
 		$this->adapter = new \phpbb\storage\adapter\local($this->filesystem, new \FastImageSize\FastImageSize(), new \phpbb\mimetype\guesser(array(new \phpbb\mimetype\extension_guesser)), $phpbb_root_path);
-		$this->adapter->configure(['path' => 'test_path', 'subfolders' => true]);
+		$this->adapter->configure(['path' => 'test_path', 'subfolders' => false]);
 
 		$this->path = $phpbb_root_path . 'test_path/';
 		mkdir($this->path);
@@ -42,82 +42,61 @@
 	public function test_put_contents()
 	{
 		$this->adapter->put_contents('file.txt', 'abc');
-		$this->assertTrue(file_exists($this->path . '3d/8e/file.txt'));
-		$this->assertEquals(file_get_contents($this->path . '3d/8e/file.txt'), 'abc');
-		unlink($this->path . '3d/8e/file.txt');
-		rmdir($this->path . '3d/8e');
-		rmdir($this->path . '3d');
+		$this->assertTrue(file_exists($this->path . 'file.txt'));
+		$this->assertEquals(file_get_contents($this->path . 'file.txt'), 'abc');
+		unlink($this->path . 'file.txt');
 	}
 
 	public function test_get_contents()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		file_put_contents($this->path . '3d/8e/file.txt', 'abc');
+		file_put_contents($this->path . 'file.txt', 'abc');
 		$this->assertEquals($this->adapter->get_contents('file.txt'), 'abc');
-		unlink($this->path . '3d/8e/file.txt');
-		rmdir($this->path . '3d/8e');
-		rmdir($this->path . '3d');
+		unlink($this->path . 'file.txt');
 	}
 
 	public function test_exists()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		touch($this->path . '3d/8e/file.txt');
+		touch($this->path . 'file.txt');
 		$this->assertTrue($this->adapter->exists('file.txt'));
-		$this->assertFalse($this->adapter->exists('3d/8e/file.txt'));
-		unlink($this->path . '3d/8e/file.txt');
-		rmdir($this->path . '3d/8e');
-		rmdir($this->path . '3d');
+		$this->assertFalse($this->adapter->exists('noexist.txt'));
+		unlink($this->path . 'file.txt');
 	}
 
 	public function test_delete_file()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		touch($this->path . '3d/8e/file.txt');
-		$this->assertTrue(file_exists($this->path . '3d/8e/file.txt'));
+		touch($this->path . 'file.txt');
+		$this->assertTrue(file_exists($this->path . 'file.txt'));
 		$this->adapter->delete('file.txt');
-		$this->assertFalse(file_exists($this->path . '3d/8e/file.txt'));
-		$this->assertFalse(file_exists($this->path . '3d'));
+		$this->assertFalse(file_exists($this->path . 'file.txt'));
 	}
 
 	public function test_rename()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		touch($this->path . '3d/8e/file.txt');
+		touch($this->path . 'file.txt');
 		$this->adapter->rename('file.txt', 'file2.txt');
-		$this->assertFalse(file_exists($this->path . '3d/8e/file.txt'));
-		$this->assertTrue(file_exists($this->path . '27/36/file2.txt'));
-		$this->assertFalse(file_exists($this->path . '3d'));
-		unlink($this->path . '27/36/file2.txt');
-		rmdir($this->path . '27/36');
-		rmdir($this->path . '27');
+		$this->assertFalse(file_exists($this->path . 'file.txt'));
+		$this->assertTrue(file_exists($this->path . 'file2.txt'));
+		$this->assertFalse(file_exists($this->path . 'file.txt'));
+		unlink($this->path . 'file2.txt');
 	}
 
 	public function test_copy()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		file_put_contents($this->path . '3d/8e/file.txt', 'abc');
+		file_put_contents($this->path . 'file.txt', 'abc');
 		$this->adapter->copy('file.txt', 'file2.txt');
-		$this->assertEquals(file_get_contents($this->path . '3d/8e/file.txt'), 'abc');
-		$this->assertEquals(file_get_contents($this->path . '27/36/file2.txt'), 'abc');
-		unlink($this->path . '3d/8e/file.txt');
-		rmdir($this->path . '3d/8e');
-		rmdir($this->path . '3d');
-		unlink($this->path . '27/36/file2.txt');
-		rmdir($this->path . '27/36');
-		rmdir($this->path . '27');
+		$this->assertEquals(file_get_contents($this->path . 'file.txt'), 'abc');
+		$this->assertEquals(file_get_contents($this->path . 'file2.txt'), 'abc');
+		unlink($this->path . 'file.txt');
+		unlink($this->path . 'file2.txt');
 	}
 
 	public function test_read_stream()
 	{
-		mkdir($this->path . '3d/8e', 0777, true);
-		touch($this->path . '3d/8e/file.txt');
+		touch($this->path . 'file.txt');
 		$stream = $this->adapter->read_stream('file.txt');
 		$this->assertTrue(is_resource($stream));
 		fclose($stream);
-		unlink($this->path . '3d/8e/file.txt');
-		rmdir($this->path . '3d/8e');
-		rmdir($this->path . '3d');
+		unlink($this->path . 'file.txt');
 	}
 
 	public function test_write_stream()
@@ -126,11 +105,9 @@
 		$stream = fopen($this->path . 'file.txt', 'rb');
 		$this->adapter->write_stream('file2.txt', $stream);
 		fclose($stream);
-		$this->assertEquals(file_get_contents($this->path . '27/36/file2.txt'), 'abc');
+		$this->assertEquals(file_get_contents($this->path . 'file2.txt'), 'abc');
 		unlink($this->path . 'file.txt');
-		unlink($this->path . '27/36/file2.txt');
-		rmdir($this->path . '27/36');
-		rmdir($this->path . '27');
+		unlink($this->path . 'file2.txt');
 	}
 
  }