diff --git a/gradio/utils.py b/gradio/utils.py
index 70fa98e5140d..b69ad7b22bfb 100644
--- a/gradio/utils.py
+++ b/gradio/utils.py
@@ -1006,16 +1006,16 @@ def is_in_or_equal(path_1: str | Path, path_2: str | Path):
     True if path_1 is a descendant (i.e. located within) path_2 or if the paths are the
     same, returns False otherwise.
     Parameters:
-        path_1: str or Path (should be a file)
-        path_2: str or Path (can be a file or directory)
+        path_1: str or Path (to file or directory)
+        path_2: str or Path (to file or directory)
     """
     path_1, path_2 = abspath(path_1), abspath(path_2)
     try:
-        if not path_1.is_file():
-            return False
-        path_1_parent = path_1.parent
-        if ".." in str(path_1_parent.relative_to(path_2)):  # prevent path traversal
-            return False
+        relative_path = path_1.relative_to(path_2)
+        if str(relative_path) == ".":
+            return True
+        relative_path = path_1.parent.relative_to(path_2)
+        return ".." not in str(relative_path)
     except ValueError:
         return False
     return True
diff --git a/test/test_utils.py b/test/test_utils.py
index b1ce641cd3ca..324aae34f321 100644
--- a/test/test_utils.py
+++ b/test/test_utils.py
@@ -423,6 +423,7 @@ def test_tex2svg_preserves_matplotlib_backend():
 def test_is_in_or_equal():
     assert is_in_or_equal("files/lion.jpg", "files/lion.jpg")
     assert is_in_or_equal("files/lion.jpg", "files")
+    assert is_in_or_equal("files/lion.._M.jpg", "files")
     assert not is_in_or_equal("files", "files/lion.jpg")
     assert is_in_or_equal("/home/usr/notes.txt", "/home/usr/")
     assert not is_in_or_equal("/home/usr/subdirectory", "/home/usr/notes.txt")