diff --git a/CHANGELOG.md b/CHANGELOG.md
index a5494bf..56430ec 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@
 * Added support for HEIF images.
 * Added [`--premultiplied`](https://sharp.pixelplumbing.com/en/latest/api-composite/#composite) option.
 * Added [`--reductionEffort` and `--smartSubsample`](https://sharp.pixelplumbing.com/en/stable/api-output/#webp) options.
+* Fixed bug with output directories ([#16](https://github.com/vseventer/sharp-cli/issues/16)).
 * Removed [`overlayWith`](http://sharp.pixelplumbing.com/en/v0.21.3/api-composite/#overlaywith) command.
 * Updated `fs-extra`, `mocha`, `sharp`, `sinon`, and `standard` dependencies.
 
diff --git a/lib/convert.js b/lib/convert.js
index f184857..613e098 100644
--- a/lib/convert.js
+++ b/lib/convert.js
@@ -29,6 +29,7 @@ const path = require('path')
 
 // Package modules.
 const bubbleError = require('bubble-stream-error')
+const isDirectory = require('is-directory')
 const sharp = require('sharp')
 const urlTemplate = require('url-template')
 
@@ -49,11 +50,17 @@ module.exports = {
   // Convert a list of files.
   files: (input, output) => {
     const template = urlTemplate.parse(output) // Parse output template.
+    output = path.resolve(output)
 
     // Process files.
+    const isBatch = input.length > 1
     const promises = input.map((src) => {
-      // Destination.
       src = path.resolve(src) // Absolute path.
+
+      // Process file.
+      const transformer = queue.drain(sharp(src))
+
+      // Destination.
       let dest = template.expand(path.parse(src))
 
       // Path separator for windows is encoded by url-template.
@@ -61,19 +68,16 @@ module.exports = {
       if (process.platform === 'win32') {
         dest = dest.split('%5C').join(path.sep)
       }
+      dest = path.resolve(dest) // Absolute path.
 
-      // Absolute path.
-      dest = path.resolve(dest)
-
-      // Process file.
-      const transformer = queue.drain(sharp(src))
-
-      // If output was not a template, re-use source name.
-      if (output === dest) {
+      // If output was not a template, assume dest is a directory when using
+      // batch processing.
+      const outputAssumeDir = dest === output && isBatch
+      if (outputAssumeDir || isDirectory.sync(dest)) {
         const defaultExt = path.extname(src)
         const desiredExt = transformer.options.formatOut
         dest = path.format({
-          dir: output,
+          dir: dest,
           name: path.basename(src, defaultExt),
           ext: desiredExt in EXTENSIONS ? EXTENSIONS[desiredExt] : defaultExt
         })
diff --git a/package-lock.json b/package-lock.json
index 3701929..d30682a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1704,6 +1704,11 @@
       "integrity": "sha1-mqIOtq7rv/d/vTPnTKAbM1gdOhY=",
       "dev": true
     },
+    "is-directory": {
+      "version": "0.3.1",
+      "resolved": "https://registry.npmjs.org/is-directory/-/is-directory-0.3.1.tgz",
+      "integrity": "sha1-YTObbyR1/Hcv2cnYP1yFddwVSuE="
+    },
     "is-extglob": {
       "version": "2.1.1",
       "resolved": "https://registry.npmjs.org/is-extglob/-/is-extglob-2.1.1.tgz",
diff --git a/package.json b/package.json
index b29d6aa..d3f85be 100644
--- a/package.json
+++ b/package.json
@@ -27,6 +27,7 @@
   },
   "dependencies": {
     "bubble-stream-error": "1.0.x",
+    "is-directory": "0.3.x",
     "multiyargs": "1.0.x",
     "sharp": "0.23.1",
     "url-template": "2.0.x",
diff --git a/test/convert.js b/test/convert.js
index ee6fec7..1ebef96 100644
--- a/test/convert.js
+++ b/test/convert.js
@@ -55,6 +55,19 @@ describe('convert', () => {
         .files([input], dest)
         .then(([info]) => expect(fs.existsSync(info.path)).to.be.true)
     })
+    it('must convert a file and output to an existing directory', () => {
+      // Negative test for directory that does not exist.
+      const rand = '' + Math.random()
+      return convert
+        .files([input, input], rand)
+        .then(() => { throw new Error('STOP') })
+        .catch((err) => {
+          expect(err).to.exist()
+          expect(err).to.have.property('message')
+          expect(err.message).to.contain(`${rand}/input.jpg`)
+          expect(err.message).to.contain('No such file or directory')
+        })
+    })
     it('must convert multiple files', () => {
       return convert
         .files([input, input], dest)