diff --git a/lib/unzip.js b/lib/unzip.js
index 0d643111..0c930dfc 100644
--- a/lib/unzip.js
+++ b/lib/unzip.js
@@ -23,10 +23,18 @@ module.exports = function (input, isGZip, isSprite, callback) {
     }
     return JSZip.loadAsync(input)
         .then(function (zip) {
-            return zip.file(isSprite ? 'sprite.json' : 'project.json').async('string')
-                .then(function (project) {
-                    return callback(null, [project, zip]);
-                });
+            // look for json in the list of files, or in a subdirectory
+            // assumes there is only one sprite or project json in the zipfile
+            const file = isSprite ?
+                zip.file(/^([^/]*\/)?sprite\.json$/)[0] :
+                zip.file(/^([^/]*\/)?project\.json$/)[0];
+            if (file) {
+                return file.async('string')
+                    .then(function (project) {
+                        return callback(null, [project, zip]);
+                    });
+            }
+            return callback(msg + 'missing project or sprite json');
         })
         .catch(function (err) {
             return callback(msg + JSON.stringify(err));
diff --git a/test/fixtures/data.js b/test/fixtures/data.js
index fef92573..7aebec80 100644
--- a/test/fixtures/data.js
+++ b/test/fixtures/data.js
@@ -33,14 +33,16 @@ module.exports = {
         sb: fs.readFileSync(path.resolve(__dirname, './data/_example.sb')),
         sb2: fs.readFileSync(path.resolve(__dirname, './data/_example.sb2')),
         json: fs.readFileSync(path.resolve(__dirname, './data/_example.json')),
-        gzipJson: fs.readFileSync(path.resolve(__dirname, './data/_example.json.gz'))
+        gzipJson: fs.readFileSync(path.resolve(__dirname, './data/_example.json.gz')),
+        invalidEmpty: fs.readFileSync(path.resolve(__dirname, './data/invalid/_invalidEmpty.sb2'))
     },
     sprites: {
         default_cat_sprite2: fs.readFileSync(path.resolve(__dirname, './data/_default_cat.sprite2')),
         default_cat_sprite2_json: fs.readFileSync(path.resolve(__dirname, './data/_default_cat.sprite2json')),
         example_sprite2: fs.readFileSync(path.resolve(__dirname, './data/_example_sprite.sprite2')),
         example_sprite2_json: fs.readFileSync(path.resolve(__dirname, './data/_example_sprite.sprite2json')),
-        bananas_sprite2: fs.readFileSync(path.resolve(__dirname, './data/_bananas.sprite2'))
+        bananas_sprite2: fs.readFileSync(path.resolve(__dirname, './data/_bananas.sprite2')),
+        bananas_nested_sprite2: fs.readFileSync(path.resolve(__dirname, './data/_bananas_nested.sprite2'))
     },
     sb3_comments: {
         comments: fs.readFileSync(path.resolve(__dirname, './data/_comments.sb3')),
diff --git a/test/fixtures/data/_bananas_nested.sprite2 b/test/fixtures/data/_bananas_nested.sprite2
new file mode 100644
index 00000000..cdbafef1
Binary files /dev/null and b/test/fixtures/data/_bananas_nested.sprite2 differ
diff --git a/test/fixtures/data/_nestedFolder.sb2 b/test/fixtures/data/_nestedFolder.sb2
new file mode 100644
index 00000000..2395c048
Binary files /dev/null and b/test/fixtures/data/_nestedFolder.sb2 differ
diff --git a/test/fixtures/data/invalid/_invalidEmpty.sb2 b/test/fixtures/data/invalid/_invalidEmpty.sb2
new file mode 100644
index 00000000..978903cc
Binary files /dev/null and b/test/fixtures/data/invalid/_invalidEmpty.sb2 differ
diff --git a/test/integration/example.js b/test/integration/example.js
index 7dac9ad4..98e63c30 100644
--- a/test/integration/example.js
+++ b/test/integration/example.js
@@ -62,3 +62,13 @@ test('gzipped json', function (t) {
         t.end();
     });
 });
+
+test('invalid empty project archive', function (t) {
+    var msg = 'Failed to unzip and extract project.json, with error: ';
+    parser(data.example.invalidEmpty, false, function (err, result) {
+        t.type(err, 'string');
+        t.equal(err.startsWith(msg), true);
+        t.type(result, 'undefined');
+        t.end();
+    });
+});
diff --git a/test/integration/sprites.js b/test/integration/sprites.js
index dc1ef982..7662dccc 100644
--- a/test/integration/sprites.js
+++ b/test/integration/sprites.js
@@ -42,6 +42,19 @@ test('banana sprite2, no sounds', function (t) {
     });
 });
 
+test('nested banana sprite2', function (t) {
+    parser(data.sprites.bananas_nested_sprite2, true, function (err, result) {
+        t.equal(err, null);
+        t.equal(Array.isArray(result), true);
+        var res = result[0];
+        var possibleZip = result[1];
+        t.type(res, 'object');
+        t.equal(res.projectVersion, 2);
+        t.equal(possibleZip instanceof JSZip, true);
+        t.end();
+    });
+});
+
 test('default cat sprite2 json', function (t) {
     parser(data.sprites.default_cat_sprite2_json, true, function (err, result) {
         t.equal(err, null);
diff --git a/test/unit/unzip.js b/test/unit/unzip.js
index 4a0178c5..bc9a2cb2 100644
--- a/test/unit/unzip.js
+++ b/test/unit/unzip.js
@@ -11,7 +11,8 @@ var fixtures = {
     zipFakeProjectJSON:
         path.resolve(__dirname, '../fixtures/data/_zipFakeProjectJson.zip'),
     zipNoProjectJSON:
-        path.resolve(__dirname, '../fixtures/data/_zipNoProjectJson.zip')
+        path.resolve(__dirname, '../fixtures/data/_zipNoProjectJson.zip'),
+    sb2Nested: path.resolve(__dirname, '../fixtures/data/_nestedFolder.sb2')
 };
 
 for (var i in fixtures) {
@@ -63,6 +64,20 @@ test('gzipped JSON', function (t) {
     });
 });
 
+test('sb2 with nested folder', function (t) {
+    var buffer = new Buffer(fixtures.sb2Nested);
+    unzip(buffer, false, false, function (err, res) {
+        t.equal(err, null);
+        t.equal(Array.isArray(res), true);
+        t.type(res[0], 'string');
+        t.doesNotThrow(function () {
+            JSON.parse(res[0]);
+        });
+        t.equal(res[1] instanceof JSZip, true);
+        t.end();
+    });
+});
+
 test('zip without project json', function (t) {
     var buffer = new Buffer(fixtures.zipNoProjectJSON);
     unzip(buffer, false, false, function (err, res) {