diff --git a/app/code/Magento/MediaGallery/Model/Directory/Command/CreateByPaths.php b/app/code/Magento/MediaGallery/Model/Directory/Command/CreateByPaths.php
index bfb6b677ce19c..4d87c1aa95285 100644
--- a/app/code/Magento/MediaGallery/Model/Directory/Command/CreateByPaths.php
+++ b/app/code/Magento/MediaGallery/Model/Directory/Command/CreateByPaths.php
@@ -63,7 +63,7 @@ public function execute(array $paths): void
                 //phpcs:ignore Magento2.Functions.DiscouragedFunction
                 $name = basename($path);
                 //phpcs:ignore Magento2.Functions.DiscouragedFunction
-                $folder = str_replace($name, '', $path);
+                $folder = substr($path, 0, strrpos($path, $name));
 
                 $this->storage->createDirectory(
                     $name,
diff --git a/dev/tests/integration/testsuite/Magento/MediaGallery/Model/Directory/Command/CreateByPathsTest.php b/dev/tests/integration/testsuite/Magento/MediaGallery/Model/Directory/Command/CreateByPathsTest.php
index 3511cdec532fa..f1a9272c2b13c 100644
--- a/dev/tests/integration/testsuite/Magento/MediaGallery/Model/Directory/Command/CreateByPathsTest.php
+++ b/dev/tests/integration/testsuite/Magento/MediaGallery/Model/Directory/Command/CreateByPathsTest.php
@@ -94,10 +94,24 @@ public function notAllowedPathsProvider(): array
         ];
     }
 
+    /**
+     * Test create child directory with the same name as parent
+     */
+    public function testCreateChildDirectoryTheSameNameAsParentDirectory(): void
+    {
+        $dir = self::TEST_DIRECTORY_NAME;
+        $childPath = $dir . '/' . $dir;
+
+        $this->createByPaths->execute([$dir]);
+        $this->assertFileExists($this->mediaDirectoryPath . $dir);
+        $this->createByPaths->execute([$childPath]);
+        $this->assertFileExists($this->mediaDirectoryPath . $childPath);
+    }
+
     /**
      * @throws \Magento\Framework\Exception\FileSystemException
      */
-    public static function tearDownAfterClass()
+    protected function tearDown()
     {
         $filesystem = \Magento\TestFramework\Helper\Bootstrap::getObjectManager()
             ->get(\Magento\Framework\Filesystem::class);