diff --git a/rojo-test/build-tests/rbxm_in_folder/default.project.json b/rojo-test/build-tests/rbxm_in_folder/default.project.json
new file mode 100644
index 00000000..fcd46779
--- /dev/null
+++ b/rojo-test/build-tests/rbxm_in_folder/default.project.json
@@ -0,0 +1,6 @@
+{
+  "name": "rbxm_in_folder",
+  "tree": {
+    "$path": "folder"
+  }
+}
\ No newline at end of file
diff --git a/rojo-test/build-tests/rbxm_in_folder/folder/foo.rbxm b/rojo-test/build-tests/rbxm_in_folder/folder/foo.rbxm
new file mode 100644
index 00000000..b152415d
Binary files /dev/null and b/rojo-test/build-tests/rbxm_in_folder/folder/foo.rbxm differ
diff --git a/rojo-test/src/build_test.rs b/rojo-test/src/build_test.rs
index ccc26c43..dd678c0c 100644
--- a/rojo-test/src/build_test.rs
+++ b/rojo-test/src/build_test.rs
@@ -24,6 +24,7 @@ gen_build_tests! {
     client_in_folder,
     gitkeep,
     module_in_folder,
+    rbxm_in_folder,
     rbxmx_in_folder,
     server_in_folder,
     txt_in_folder,
diff --git a/rojo-test/src/snapshots/build_test__rbxm_in_folder.snap b/rojo-test/src/snapshots/build_test__rbxm_in_folder.snap
new file mode 100644
index 00000000..574500ce
--- /dev/null
+++ b/rojo-test/src/snapshots/build_test__rbxm_in_folder.snap
@@ -0,0 +1,18 @@
+---
+created: "2019-08-14T22:05:46.597722600Z"
+creator: insta@0.10.0
+source: rojo-test/src/build_test.rs
+expression: contents
+---
+<roblox version="4">
+  <Item class="Folder" referent="0">
+    <Properties>
+      <string name="Name">rbxm_in_folder</string>
+    </Properties>
+    <Item class="Folder" referent="1">
+      <Properties>
+        <string name="Name">foo</string>
+      </Properties>
+    </Item>
+  </Item>
+</roblox>