diff --git a/src/Directory.Build.props b/src/Directory.Build.props
index d4b5634d..7e2f046e 100644
--- a/src/Directory.Build.props
+++ b/src/Directory.Build.props
@@ -2,7 +2,7 @@
 <Project>
   <PropertyGroup>
     <NoWarn>CS1591</NoWarn>
-    <Version>24.5.0</Version>
+    <Version>24.5.1</Version>
     <LangVersion>11</LangVersion>
     <AssemblyVersion>1.0.0</AssemblyVersion>
     <PackageTags>Markdown, Snippets, mdsnippets, documentation, MarkdownSnippets</PackageTags>
diff --git a/src/MarkdownSnippets/Processing/DirectoryMarkdownProcessor.cs b/src/MarkdownSnippets/Processing/DirectoryMarkdownProcessor.cs
index 62b2cd4f..658449d7 100644
--- a/src/MarkdownSnippets/Processing/DirectoryMarkdownProcessor.cs
+++ b/src/MarkdownSnippets/Processing/DirectoryMarkdownProcessor.cs
@@ -322,6 +322,8 @@ void ProcessFile(string sourceFile, MarkdownProcessor markdownProcessor)
 
     void WriteLines(string target, List<Line> lines)
     {
+        var directoryName = Path.GetDirectoryName(target)!;
+        Directory.CreateDirectory(directoryName);
         using var writer = File.CreateText(target);
         writer.NewLine = newLine;
         foreach (var line in lines)
diff --git a/src/Tests/DirectoryMarkdownProcessor/ConventionWithNestedDir/mdsource/Nested/one.source.md b/src/Tests/DirectoryMarkdownProcessor/ConventionWithNestedDir/mdsource/Nested/one.source.md
new file mode 100644
index 00000000..2cd3eb5e
--- /dev/null
+++ b/src/Tests/DirectoryMarkdownProcessor/ConventionWithNestedDir/mdsource/Nested/one.source.md
@@ -0,0 +1 @@
+snippet: snippet1
\ No newline at end of file
diff --git a/src/Tests/DirectoryMarkdownProcessorTests.ConventionWithNestedDir.verified.txt b/src/Tests/DirectoryMarkdownProcessorTests.ConventionWithNestedDir.verified.txt
new file mode 100644
index 00000000..c76b400b
--- /dev/null
+++ b/src/Tests/DirectoryMarkdownProcessorTests.ConventionWithNestedDir.verified.txt
@@ -0,0 +1,12 @@
+/mdsource/Nested/one.source.md
+snippet: snippet1
+
+/Nested/one.md
+<!-- snippet: snippet1 -->
+<a id='snippet-snippet1'></a>
+```cs
+the code from snippet1
+```
+<sup><a href='#snippet-snippet1' title='Start of snippet'>anchor</a></sup>
+<!-- endSnippet -->
+
diff --git a/src/Tests/DirectoryMarkdownProcessorTests.cs b/src/Tests/DirectoryMarkdownProcessorTests.cs
index ba0afcb1..b2e25606 100644
--- a/src/Tests/DirectoryMarkdownProcessorTests.cs
+++ b/src/Tests/DirectoryMarkdownProcessorTests.cs
@@ -420,6 +420,30 @@ public Task Convention()
 
         return Verify(builder.ToString());
     }
+    [Fact]
+    public Task ConventionWithNestedDir()
+    {
+        var root = Path.GetFullPath("DirectoryMarkdownProcessor/ConventionWithNestedDir");
+        var processor = new DirectoryMarkdownProcessor(
+            root,
+            writeHeader: false,
+            newLine: "\r",
+            directoryIncludes: _ => true,
+            markdownDirectoryIncludes: _ => true,
+            snippetDirectoryIncludes: _ => true);
+        processor.AddSnippets(SnippetBuild("snippet1"));
+        processor.Run();
+
+        var builder = new StringBuilder();
+        foreach (var file in Directory.EnumerateFiles(root, "*.*", SearchOption.AllDirectories).OrderBy(_ => _))
+        {
+            builder.AppendLineN(file.Replace(root, ""));
+            builder.AppendLineN(File.ReadAllText(file));
+            builder.AppendLineN();
+        }
+
+        return Verify(builder.ToString());
+    }
 
     [Fact]
     public void MustErrorByDefaultWhenIncludesAreMissing()