diff --git a/pkg/porter/create_test.go b/pkg/porter/create_test.go
index fa952a35a..935b842a0 100644
--- a/pkg/porter/create_test.go
+++ b/pkg/porter/create_test.go
@@ -84,3 +84,45 @@ func TestCreateWithBundleName(t *testing.T) {
 	require.NoError(t, yaml.Unmarshal(data, &porterYaml))
 	require.True(t, porterYaml.Name == bundleName)
 }
+
+// make sure bundlename is not the entire file structure, just the "base"
+func TestCreateNestedBundleName(t *testing.T) {
+	dir := "foo/bar/bar"
+	bundleName := "mybundle"
+
+	p := NewTestPorter(t)
+	err := p.CreateInDir(filepath.Join(dir, bundleName))
+	require.NoError(t, err)
+
+	// Verify that files are present in the "mybundle" directory
+	configFileStats, err := p.FileSystem.Stat(filepath.Join(bundleName, "porter.yaml"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, "porter.yaml"), pkg.FileModeWritable, configFileStats.Mode())
+
+	helperFileStats, err := p.FileSystem.Stat(filepath.Join(bundleName, "helpers.sh"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, "helpers.sh"), pkg.FileModeExecutable, helperFileStats.Mode())
+
+	dockerfileStats, err := p.FileSystem.Stat(filepath.Join(bundleName, "template.Dockerfile"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, "template.Dockerfile"), pkg.FileModeWritable, dockerfileStats.Mode())
+
+	readmeStats, err := p.FileSystem.Stat(filepath.Join(bundleName, "README.md"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, "README.md"), pkg.FileModeWritable, readmeStats.Mode())
+
+	gitignoreStats, err := p.FileSystem.Stat(filepath.Join(bundleName, ".gitignore"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, ".gitignore"), pkg.FileModeWritable, gitignoreStats.Mode())
+
+	dockerignoreStats, err := p.FileSystem.Stat(filepath.Join(bundleName, ".dockerignore"))
+	require.NoError(t, err)
+	tests.AssertFilePermissionsEqual(t, filepath.Join(bundleName, ".dockerignore"), pkg.FileModeWritable, dockerignoreStats.Mode())
+
+	// verify "name" inside porter.yaml is set to "mybundle"
+	porterYaml := &manifest.Manifest{}
+	data, err := p.FileSystem.ReadFile(filepath.Join(bundleName, "porter.yaml"))
+	require.NoError(t, err)
+	require.NoError(t, yaml.Unmarshal(data, &porterYaml))
+	require.True(t, porterYaml.Name == bundleName)
+}