diff --git a/packages/app/e2e/regression/open-file-expand-folder.spec.ts b/packages/app/e2e/regression/open-file-expand-folder.spec.ts
index d60e2f055a1..e66fb6deea6 100644
--- a/packages/app/e2e/regression/open-file-expand-folder.spec.ts
+++ b/packages/app/e2e/regression/open-file-expand-folder.spec.ts
@@ -60,7 +60,7 @@ test("expands a folder whose path has a trailing Windows separator", async ({ pa
       if (path) return []
       return [
         {
-          name: "frontend",
+          name: "",
           path: "frontend\\",
           absolute: `${directory}/frontend`,
           type: "directory" as const,
@@ -116,6 +116,7 @@ test("expands a folder whose path has a trailing Windows separator", async ({ pa
 
   const frontendRow = panel.locator('[data-slot="file-tree-v2-row"][data-path="frontend"]')
   await expect(frontendRow).toBeVisible()
+  await expect(frontendRow.getByText("frontend", { exact: true })).toBeVisible()
   await expect(frontendRow).toHaveAttribute("aria-expanded", "false")
   await frontendRow.click()
   await expect(frontendRow).toHaveAttribute("aria-expanded", "true")
diff --git a/packages/app/src/session/files/file-tree-v2.tsx b/packages/app/src/session/files/file-tree-v2.tsx
index 25ed0a6b553..d18fbadebbf 100644
--- a/packages/app/src/session/files/file-tree-v2.tsx
+++ b/packages/app/src/session/files/file-tree-v2.tsx
@@ -100,7 +100,11 @@ const FileTreeNodeV2 = (
     >
       {local.children}
       <span class="flex-1 min-w-0 text-start text-12-medium whitespace-nowrap truncate">
-        <bdi dir="auto">{local.node.name}</bdi>
+        <bdi dir="auto">
+          {local.node.type === "directory"
+            ? normalizeFileTreeV2Path(local.node.path).split("/").at(-1)
+            : local.node.name}
+        </bdi>
       </span>
       {(() => {
         const value = kind()