diff --git a/README.md b/README.md
index 42baca2ea..29184004e 100644
--- a/README.md
+++ b/README.md
@@ -38,6 +38,8 @@ Features merged into the master branch:
 
 - [homing: sensorless minimum home distance](https://github.com/DangerKlippers/danger-klipper/pull/65)
 
+- [virtual_sdcard: scanning of subdirectories](https://github.com/DangerKlippers/danger-klipper/pull/68) ([klipper#6327](https://github.com/Klipper3d/klipper/pull/6327))
+
 "Dangerous Klipper for dangerous users"
 
 Klipper is a 3d-Printer firmware. It combines the power of a general
diff --git a/docs/Config_Reference.md b/docs/Config_Reference.md
index 814ca3294..31aa013a3 100644
--- a/docs/Config_Reference.md
+++ b/docs/Config_Reference.md
@@ -82,14 +82,14 @@ A collection of DangerKlipper-specific system options
 # if False, will warn but allow klipper to still run
 error_on_unused_config_options: True
 
-# If statistics should be logged 
+# If statistics should be logged
 # (helpful for keeping the log clean during development)
-log_statistics: True 
+log_statistics: True
 
 # If the config file should be logged at startup
-log_config_file_at_startup: True 
+log_config_file_at_startup: True
 
-# If the bed mesh should be logged on startup 
+# If the bed mesh should be logged on startup
 # (helpful for keeping the log clean during development)
 log_bed_mesh_at_startup: True
 
@@ -1521,6 +1521,8 @@ path:
 #   be provided.
 #on_error_gcode:
 #   A list of G-Code commands to execute when an error is reported.
+#with_subdirs: False
+#   Enable scanning of subdirectories for the menu and for the M20 and M23 commands. The default is False.
 
 ```
 
diff --git a/klippy/extras/display/menu.py b/klippy/extras/display/menu.py
index 7414fcdf7..da82e5bff 100644
--- a/klippy/extras/display/menu.py
+++ b/klippy/extras/display/menu.py
@@ -691,7 +691,7 @@ def _populate(self):
         super(MenuVSDList, self)._populate()
         sdcard = self.manager.printer.lookup_object("virtual_sdcard", None)
         if sdcard is not None:
-            files = sdcard.get_file_list()
+            files = sdcard.get_file_list(sdcard.with_subdirs)
             for fname, fsize in files:
                 self.insert_item(
                     self.manager.menuitem_from(
diff --git a/klippy/extras/virtual_sdcard.py b/klippy/extras/virtual_sdcard.py
index 0f8bc78d0..d61ea3d70 100644
--- a/klippy/extras/virtual_sdcard.py
+++ b/klippy/extras/virtual_sdcard.py
@@ -16,6 +16,7 @@ def __init__(self, config):
         )
         # sdcard state
         sd = config.get("path")
+        self.with_subdirs = config.getboolean("with_subdirs", False)
         self.sdcard_dirname = os.path.normpath(os.path.expanduser(sd))
         self.current_file = None
         self.file_position = self.file_size = 0
@@ -185,7 +186,7 @@ def cmd_SDCARD_PRINT_FILE(self, gcmd):
 
     def cmd_M20(self, gcmd):
         # List SD card
-        files = self.get_file_list()
+        files = self.get_file_list(self.with_subdirs)
         gcmd.respond_raw("Begin file list")
         for fname, fsize in files:
             gcmd.respond_raw("%s %d" % (fname, fsize))
@@ -203,7 +204,7 @@ def cmd_M23(self, gcmd):
         filename = gcmd.get_raw_command_parameters().strip()
         if filename.startswith("/"):
             filename = filename[1:]
-        self._load_file(gcmd, filename)
+        self._load_file(gcmd, filename, self.with_subdirs)
 
     def _load_file(self, gcmd, filename, check_subdirs=False):
         files = self.get_file_list(check_subdirs)
@@ -221,7 +222,7 @@ def _load_file(self, gcmd, filename, check_subdirs=False):
         except:
             logging.exception("virtual_sdcard file open")
             raise gcmd.error("Unable to open file")
-        gcmd.respond_raw("File opened:%s Size:%d" % (filename, fsize))
+        gcmd.respond_raw("File opened: %s Size: %d" % (filename, fsize))
         gcmd.respond_raw("File selected")
         self.current_file = f
         self.file_position = 0
diff --git a/test/klippy/virtual_sdcard.cfg b/test/klippy/virtual_sdcard.cfg
new file mode 100644
index 000000000..7a839f9c2
--- /dev/null
+++ b/test/klippy/virtual_sdcard.cfg
@@ -0,0 +1,85 @@
+# Test config for sdcard_loop
+[virtual_sdcard]
+path: test/klippy/sdcard_loop
+with_subdirs: True
+
+[display_status]
+
+# Override to support unlimited belt size
+# (homing Z simply resets its virtual position to 0.0)
+[homing_override]
+axes: xyz
+set_position_x: 0
+set_position_y: 0
+set_position_z: 0
+gcode:
+  G92 X0 Y0 Z0
+
+
+[stepper_x]
+step_pin: PF0
+dir_pin: PF1
+enable_pin: !PD7
+microsteps: 16
+rotation_distance: 40
+endstop_pin: ^PE5
+position_endstop: 0
+position_max: 200
+homing_speed: 50
+
+[stepper_y]
+step_pin: PF6
+dir_pin: !PF7
+enable_pin: !PF2
+microsteps: 16
+rotation_distance: 40
+endstop_pin: ^PJ1
+position_endstop: 0
+position_max: 200
+homing_speed: 50
+
+[stepper_z]
+step_pin: PL3
+dir_pin: PL1
+enable_pin: !PK0
+microsteps: 16
+rotation_distance: 8
+endstop_pin: ^PD3
+position_endstop: 0.5
+position_max: 200000000
+
+[extruder]
+step_pin: PA4
+dir_pin: PA6
+enable_pin: !PA2
+microsteps: 16
+rotation_distance: 33.5
+nozzle_diameter: 0.500
+filament_diameter: 3.500
+heater_pin: PB4
+sensor_type: EPCOS 100K B57560G104F
+sensor_pin: PK5
+control: pid
+pid_Kp: 22.2
+pid_Ki: 1.08
+pid_Kd: 114
+min_temp: 0
+max_temp: 210
+
+[heater_bed]
+heater_pin: PH5
+sensor_type: EPCOS 100K B57560G104F
+sensor_pin: PK6
+control: watermark
+min_temp: 0
+max_temp: 110
+
+[mcu]
+serial: /dev/ttyACM0
+
+[printer]
+kinematics: cartesian
+max_velocity: 300
+max_accel: 3000
+max_z_velocity: 5
+max_z_accel: 100
diff --git a/test/klippy/virtual_sdcard.test b/test/klippy/virtual_sdcard.test
new file mode 100644
index 000000000..2dc8bf484
--- /dev/null
+++ b/test/klippy/virtual_sdcard.test
@@ -0,0 +1,7 @@
+; Virtual SD card unit tests
+
+DICTIONARY atmega2560.dict
+CONFIG virtual_sdcard.cfg
+
+G28
+M20