diff --git a/core/libs/prx/libkernel/File/src/Stdio.cpp b/core/libs/prx/libkernel/File/src/Stdio.cpp
index 711b9f388..5db08e781 100644
--- a/core/libs/prx/libkernel/File/src/Stdio.cpp
+++ b/core/libs/prx/libkernel/File/src/Stdio.cpp
@@ -544,10 +544,13 @@ int APS5_VABI getdents_nid_postfix(int fd, char* buf, int nbytes) {
 int APS5_VABI sceKernelMkdir(const char* path, uint16_t mode) {
     (void)mode;
     if (path == nullptr) throw std::invalid_argument("sceKernelMkdir: path is null");
-    const auto native = ResolvePath_nid_no_patch(path);
+    auto native = ResolvePath_nid_no_patch(path);
+    while (!native.has_filename() && native.has_relative_path()) native = native.parent_path();
     std::error_code error;
     if (std::filesystem::exists(native, error)) return SceErrorFromErrno(GUEST_EEXIST);
-    if (!std::filesystem::exists(native.parent_path(), error)) return SceErrorFromErrno(GUEST_ENOENT);
+    const auto parent = std::filesystem::status(native.parent_path(), error);
+    if (!std::filesystem::exists(parent)) return SceErrorFromErrno(GUEST_ENOENT);
+    if (!std::filesystem::is_directory(parent)) return SceErrorFromErrno(GUEST_ENOTDIR);
     if (!std::filesystem::create_directory(native, error)) return SceErrorFromErrno(error.value() ? error.value() : GUEST_EIO);
     RecordWrittenPath_nid_no_patch(native);
     return 0;
diff --git a/core/libs/tests/GuestKernelSync.cpp b/core/libs/tests/GuestKernelSync.cpp
index 526218a99..9fc11185f 100644
--- a/core/libs/tests/GuestKernelSync.cpp
+++ b/core/libs/tests/GuestKernelSync.cpp
@@ -40,6 +40,10 @@ int main() {
     Require(sceKernelMkdir("kernel_sync_probe", 0777) == 0);
     Require(Recorded("kernel_sync_probe"));
     std::ofstream("kernel_sync_probe/existing.bin") << "existing";
+    Require(sceKernelMkdir("kernel_sync_probe/nested/", 0777) == 0);
+    Require(std::filesystem::is_directory("kernel_sync_probe/nested") && Recorded("kernel_sync_probe/nested"));
+    Require(sceKernelMkdir("kernel_sync_probe/nested/", 0777) == static_cast<int>(0x80020011u));
+    Require(sceKernelMkdir("kernel_sync_probe/existing.bin/child", 0777) == static_cast<int>(0x80020014u));
     const int reader = sceKernelOpen("kernel_sync_probe/existing.bin", 0x0, 0);
     Require(reader >= 0 && sceKernelClose(reader) == 0);
     void* stream = fopen_nid_postfix("kernel_sync_probe/existing.bin", "r");