diff --git a/package.json b/package.json
index ed1ff650..0f126a7c 100644
--- a/package.json
+++ b/package.json
@@ -35,9 +35,9 @@
     "istanbul": "^0.4.5",
     "jsonschema": "^1.2.4",
     "lodash": "^4.17.15",
-    "node-dir": "^0.1.17",
     "node-emoji": "^1.10.0",
     "pify": "^4.0.1",
+    "recursive-readdir": "^2.2.2",
     "shelljs": "^0.8.3",
     "solidity-parser-antlr": "0.4.7",
     "web3": "1.2.1",
diff --git a/plugins/resources/truffle.utils.js b/plugins/resources/truffle.utils.js
index 9c00b594..f33f109f 100644
--- a/plugins/resources/truffle.utils.js
+++ b/plugins/resources/truffle.utils.js
@@ -1,8 +1,7 @@
 const PluginUI = require('./truffle.ui');
-
 const globalModules = require('global-modules');
 const TruffleProvider = require('@truffle/provider');
-const dir = require('node-dir');
+const recursive = require('recursive-readdir');
 const globby = require('globby');
 const path = require('path');
 
@@ -15,7 +14,7 @@ const path = require('path');
  * @param  {Object}   config  truffleConfig
  * @return {String[]}         list of files to pass to mocha
  */
-function getTestFilePaths(config){
+async function getTestFilePaths(config){
   let target;
   let ui = new PluginUI(config.logger.log);
 
@@ -23,7 +22,7 @@ function getTestFilePaths(config){
   // Handle --file <path|glob> cli option (subset of tests)
   (typeof config.file === 'string')
     ? target = globby.sync([config.file])
-    : target = dir.files(config.testDir, { sync: true }) || [];
+    : target = await recursive(config.testDir);
 
   // Filter native solidity tests and warn that they're skipped
   const solregex = /.*\.(sol)$/;
diff --git a/plugins/truffle.plugin.js b/plugins/truffle.plugin.js
index 06bbadeb..5df66dc4 100644
--- a/plugins/truffle.plugin.js
+++ b/plugins/truffle.plugin.js
@@ -96,7 +96,7 @@ async function plugin(config){
     );
 
     config.all = true;
-    config.test_files = truffleUtils.getTestFilePaths(config);
+    config.test_files = await truffleUtils.getTestFilePaths(config);
     config.compilers.solc.settings.optimizer.enabled = false;
 
     // Compile Instrumented Contracts
diff --git a/test/integration/projects/tests-folder/.solcover.js b/test/integration/projects/tests-folder/.solcover.js
new file mode 100644
index 00000000..71b990cc
--- /dev/null
+++ b/test/integration/projects/tests-folder/.solcover.js
@@ -0,0 +1,4 @@
+module.exports = {
+ "silent": false,
+ "istanbulReporter": [ "json-summary", "text"]
+}
diff --git a/test/integration/projects/tests-folder/buidler.config.js b/test/integration/projects/tests-folder/buidler.config.js
new file mode 100644
index 00000000..d1f48df0
--- /dev/null
+++ b/test/integration/projects/tests-folder/buidler.config.js
@@ -0,0 +1,8 @@
+const { loadPluginFile } = require("@nomiclabs/buidler/plugins-testing");
+loadPluginFile(__dirname + "/../plugins/buidler.plugin");
+usePlugin("@nomiclabs/buidler-truffle5");
+
+module.exports={
+  defaultNetwork: "buidlerevm",
+  logger: process.env.SILENT ? { log: () => {} } : console,
+};
\ No newline at end of file
diff --git a/test/integration/projects/tests-folder/contracts/ContractA.sol b/test/integration/projects/tests-folder/contracts/ContractA.sol
new file mode 100644
index 00000000..9d8d1344
--- /dev/null
+++ b/test/integration/projects/tests-folder/contracts/ContractA.sol
@@ -0,0 +1,17 @@
+pragma solidity ^0.5.0;
+
+
+contract ContractA {
+  uint x;
+  constructor() public {
+  }
+
+  function sendFn() public {
+    x = 5;
+  }
+
+  function callFn() public pure returns (uint){
+    uint y = 5;
+    return y;
+  }
+}
diff --git a/test/integration/projects/tests-folder/contracts/ContractB.sol b/test/integration/projects/tests-folder/contracts/ContractB.sol
new file mode 100644
index 00000000..daa42f7d
--- /dev/null
+++ b/test/integration/projects/tests-folder/contracts/ContractB.sol
@@ -0,0 +1,17 @@
+pragma solidity ^0.5.0;
+
+
+contract ContractB {
+  uint x;
+  constructor() public {
+  }
+
+  function sendFn() public {
+    x = 5;
+  }
+
+  function callFn() public pure returns (uint){
+    uint y = 5;
+    return y;
+  }
+}
diff --git a/test/integration/projects/tests-folder/contracts/ContractC.sol b/test/integration/projects/tests-folder/contracts/ContractC.sol
new file mode 100644
index 00000000..454c86cd
--- /dev/null
+++ b/test/integration/projects/tests-folder/contracts/ContractC.sol
@@ -0,0 +1,17 @@
+pragma solidity ^0.5.0;
+
+
+contract ContractC {
+  uint x;
+  constructor() public {
+  }
+
+  function sendFn() public {
+    x = 5;
+  }
+
+  function callFn() public pure returns (uint){
+    uint y = 5;
+    return y;
+  }
+}
diff --git a/test/integration/projects/tests-folder/contracts/Migrations.sol b/test/integration/projects/tests-folder/contracts/Migrations.sol
new file mode 100644
index 00000000..c378ffb0
--- /dev/null
+++ b/test/integration/projects/tests-folder/contracts/Migrations.sol
@@ -0,0 +1,23 @@
+pragma solidity >=0.4.21 <0.6.0;
+
+contract Migrations {
+  address public owner;
+  uint public last_completed_migration;
+
+  constructor() public {
+    owner = msg.sender;
+  }
+
+  modifier restricted() {
+    if (msg.sender == owner) _;
+  }
+
+  function setCompleted(uint completed) public restricted {
+    last_completed_migration = completed;
+  }
+
+  function upgrade(address new_address) public restricted {
+    Migrations upgraded = Migrations(new_address);
+    upgraded.setCompleted(last_completed_migration);
+  }
+}
diff --git a/test/integration/projects/tests-folder/test/contracta.js b/test/integration/projects/tests-folder/test/contracta.js
new file mode 100644
index 00000000..cc778027
--- /dev/null
+++ b/test/integration/projects/tests-folder/test/contracta.js
@@ -0,0 +1,15 @@
+const ContractA = artifacts.require("ContractA");
+
+contract("contracta", function(accounts) {
+  let instance;
+
+  before(async () => instance = await ContractA.new())
+
+  it('sends [ @skipForCoverage ]', async function(){
+    await instance.sendFn();
+  });
+
+  it('calls [ @skipForCoverage ]', async function(){
+    await instance.callFn();
+  })
+});
diff --git a/test/integration/projects/tests-folder/test/folder/contractb.js b/test/integration/projects/tests-folder/test/folder/contractb.js
new file mode 100644
index 00000000..71ebfb7a
--- /dev/null
+++ b/test/integration/projects/tests-folder/test/folder/contractb.js
@@ -0,0 +1,15 @@
+const ContractB = artifacts.require("ContractB");
+
+contract("contractB [ @skipForCoverage ]", function(accounts) {
+  let instance;
+
+  before(async () => instance = await ContractB.new())
+
+  it('sends', async function(){
+    await instance.sendFn();
+  });
+
+  it('calls', async function(){
+    await instance.callFn();
+  })
+});
diff --git a/test/integration/projects/tests-folder/test/folder/contractc.js b/test/integration/projects/tests-folder/test/folder/contractc.js
new file mode 100644
index 00000000..9b3d950d
--- /dev/null
+++ b/test/integration/projects/tests-folder/test/folder/contractc.js
@@ -0,0 +1,20 @@
+const ContractC = artifacts.require("ContractC");
+
+contract("contractc", function(accounts) {
+  let instance;
+
+  before(async () => instance = await ContractC.new())
+
+  it('sends', async function(){
+    await instance.sendFn();
+  });
+
+  it('calls', async function(){
+    await instance.callFn();
+  })
+
+  it('sends', async function(){
+    await instance.sendFn();
+  });
+
+});
diff --git a/test/integration/projects/tests-folder/truffle-config.js b/test/integration/projects/tests-folder/truffle-config.js
new file mode 100644
index 00000000..b398b071
--- /dev/null
+++ b/test/integration/projects/tests-folder/truffle-config.js
@@ -0,0 +1,7 @@
+module.exports = {
+  networks: {},
+  mocha: {},
+  compilers: {
+    solc: {}
+  }
+}
diff --git a/test/units/truffle/standard.js b/test/units/truffle/standard.js
index 436a457e..8a19dd94 100644
--- a/test/units/truffle/standard.js
+++ b/test/units/truffle/standard.js
@@ -79,6 +79,29 @@ describe('Truffle Plugin: standard use cases', function() {
     verify.lineCoverage(expected);
   });
 
+
+  it('tests in first layer and in a sub-folder', async function() {
+    mock.installFullProject('tests-folder');
+    await plugin(truffleConfig);
+
+    const expected = [
+      {
+        file: mock.pathToContract(truffleConfig, 'ContractA.sol'),
+        pct: 100
+      },
+      {
+        file: mock.pathToContract(truffleConfig, 'ContractB.sol'),
+        pct: 100,
+      },
+      {
+        file: mock.pathToContract(truffleConfig, 'ContractC.sol'),
+        pct: 100,
+      },
+    ];
+
+    verify.lineCoverage(expected);
+  });
+
   it('with relative path solidity imports', async function() {
     mock.installFullProject('import-paths');
     await plugin(truffleConfig);
diff --git a/yarn.lock b/yarn.lock
index 5c3e4251..a7ad95dd 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -5038,7 +5038,7 @@ minimalistic-crypto-utils@^1.0.0, minimalistic-crypto-utils@^1.0.1:
   resolved "https://registry.yarnpkg.com/minimalistic-crypto-utils/-/minimalistic-crypto-utils-1.0.1.tgz#f6c00c1c0b082246e5c4d99dfb8c7c083b2b582a"
   integrity sha1-9sAMHAsIIkblxNmd+4x8CDsrWCo=
 
-"minimatch@2 || 3", minimatch@3.0.4, minimatch@^3.0.2, minimatch@^3.0.4:
+"minimatch@2 || 3", minimatch@3.0.4, minimatch@^3.0.4:
   version "3.0.4"
   resolved "https://registry.yarnpkg.com/minimatch/-/minimatch-3.0.4.tgz#5166e286457f03306064be5497e8dbb0c3d32083"
   integrity sha512-yJHVQEhyqPLUTgt9B83PXu6W3rx4MvvHvSUvToogpwoGDOUQ+yDrR0HRot+yOCdCO7u4hX3pWft6kWBBcqh0UA==
@@ -5229,13 +5229,6 @@ node-alias@^1.0.4:
     chalk "^1.1.1"
     lodash "^4.2.0"
 
-node-dir@^0.1.17:
-  version "0.1.17"
-  resolved "https://registry.yarnpkg.com/node-dir/-/node-dir-0.1.17.tgz#5f5665d93351335caabef8f1c554516cf5f1e4e5"
-  integrity sha1-X1Zl2TNRM1yqvvjxxVRRbPXx5OU=
-  dependencies:
-    minimatch "^3.0.2"
-
 node-emoji@^1.10.0:
   version "1.10.0"
   resolved "https://registry.yarnpkg.com/node-emoji/-/node-emoji-1.10.0.tgz#8886abd25d9c7bb61802a658523d1f8d2a89b2da"
@@ -6222,6 +6215,13 @@ rechoir@^0.6.2:
   dependencies:
     resolve "^1.1.6"
 
+recursive-readdir@^2.2.2:
+  version "2.2.2"
+  resolved "https://registry.yarnpkg.com/recursive-readdir/-/recursive-readdir-2.2.2.tgz#9946fb3274e1628de6e36b2f6714953b4845094f"
+  integrity sha512-nRCcW9Sj7NuZwa2XvH9co8NPeXUBhZP7CRKJtU+cS6PW9FpCIFoI5ib0NT1ZrbNuPoRy0ylyCaUL8Gih4LSyFg==
+  dependencies:
+    minimatch "3.0.4"
+
 regenerate@^1.2.1:
   version "1.4.0"
   resolved "https://registry.yarnpkg.com/regenerate/-/regenerate-1.4.0.tgz#4a856ec4b56e4077c557589cae85e7a4c8869a11"