diff --git a/src/libsync/propagatedownload.cpp b/src/libsync/propagatedownload.cpp
index 67a7a4264d..ac417a6227 100644
--- a/src/libsync/propagatedownload.cpp
+++ b/src/libsync/propagatedownload.cpp
@@ -343,8 +343,27 @@ void PropagateDownloadFile::start()
 
     qCDebug(lcPropagateDownload) << _item->_file << propagator()->_activeJobList.count();
 
-    if (propagator()->account()->capabilities().clientSideEncryptionAvailable()) {
-        _downloadEncryptedHelper = new PropagateDownloadEncrypted(propagator(), _item, this);
+    const auto rootPath = [=]() {
+        const auto result = propagator()->_remoteFolder;
+        if (result.startsWith('/')) {
+            return result.mid(1);
+        } else {
+            return result;
+        }
+    }();
+    const auto remotePath = QString(rootPath + _item->_file);
+    const auto remoteParentPath = remotePath.left(remotePath.lastIndexOf('/'));
+
+    const auto account = propagator()->account();
+    if (!account->capabilities().clientSideEncryptionAvailable() ||
+        !account->e2e()->isFolderEncrypted(remoteParentPath + '/')) {
+        startAfterIsEncryptedIsChecked();
+    } else {
+        SyncJournalFileRecord parentRec;
+        propagator()->_journal->getFileRecordByE2eMangledName(remoteParentPath, &parentRec);
+        const auto parentPath = parentRec.isValid() ? parentRec._path : remoteParentPath;
+
+        _downloadEncryptedHelper = new PropagateDownloadEncrypted(propagator(), parentPath, _item, this);
         connect(_downloadEncryptedHelper, &PropagateDownloadEncrypted::folderStatusNotEncrypted, [this] {
           startAfterIsEncryptedIsChecked();
         });
@@ -357,8 +376,6 @@ void PropagateDownloadFile::start()
                tr("File %1 can not be downloaded because encryption information is missing.").arg(QDir::toNativeSeparators(_item->_file)));
         });
         _downloadEncryptedHelper->start();
-    } else {
-        startAfterIsEncryptedIsChecked();
     }
 }
 
@@ -503,7 +520,7 @@ void PropagateDownloadFile::startDownload()
     if (_item->_directDownloadUrl.isEmpty()) {
         // Normal job, download from oC instance
         _job = new GETFileJob(propagator()->account(),
-            propagator()->_remoteFolder + _item->_file,
+            propagator()->_remoteFolder + (_isEncrypted ? _item->_encryptedFileName : _item->_file),
             &_tmpFile, headers, expectedEtagForResume, _resumeStart, this);
     } else {
         // We were provided a direct URL, use that one
diff --git a/src/libsync/propagatedownloadencrypted.cpp b/src/libsync/propagatedownloadencrypted.cpp
index 3c23e8fc0d..4b989f59eb 100644
--- a/src/libsync/propagatedownloadencrypted.cpp
+++ b/src/libsync/propagatedownloadencrypted.cpp
@@ -6,9 +6,10 @@ Q_LOGGING_CATEGORY(lcPropagateDownloadEncrypted, "nextcloud.sync.propagator.down
 
 namespace OCC {
 
-PropagateDownloadEncrypted::PropagateDownloadEncrypted(OwncloudPropagator *propagator, SyncFileItemPtr item, QObject *parent)
+PropagateDownloadEncrypted::PropagateDownloadEncrypted(OwncloudPropagator *propagator, const QString &localParentPath, SyncFileItemPtr item, QObject *parent)
     : QObject(parent)
     , _propagator(propagator)
+    , _localParentPath(localParentPath)
     , _item(item)
     , _info(_item->_file)
 {
@@ -89,7 +90,7 @@ void PropagateDownloadEncrypted::checkFolderEncryptedMetadata(const QJsonDocumen
     if (encryptedFilename == file.encryptedFilename) {
       _encryptedInfo = file;
       _item->_encryptedFileName = _item->_file;
-      _item->_file = _item->_file.section(QLatin1Char('/'), 0, -2) + QLatin1Char('/') + _encryptedInfo.originalFilename;
+      _item->_file = _localParentPath + QLatin1Char('/') + _encryptedInfo.originalFilename;
 
       qCDebug(lcPropagateDownloadEncrypted) << "Found matching encrypted metadata for file, starting download";
       emit folderStatusEncrypted();
diff --git a/src/libsync/propagatedownloadencrypted.h b/src/libsync/propagatedownloadencrypted.h
index b2a6b94754..2d769c7467 100644
--- a/src/libsync/propagatedownloadencrypted.h
+++ b/src/libsync/propagatedownloadencrypted.h
@@ -15,7 +15,7 @@ namespace OCC {
 class PropagateDownloadEncrypted : public QObject {
   Q_OBJECT
 public:
-  PropagateDownloadEncrypted(OwncloudPropagator *propagator, SyncFileItemPtr item, QObject *parent = nullptr);
+  PropagateDownloadEncrypted(OwncloudPropagator *propagator, const QString &localParentPath, SyncFileItemPtr item, QObject *parent = nullptr);
   void start();
   void checkFolderId(const QStringList &list);
   bool decryptFile(QFile& tmpFile);
@@ -37,6 +37,7 @@ signals:
 
 private:
   OwncloudPropagator *_propagator;
+  QString _localParentPath;
   SyncFileItemPtr _item;
   QFileInfo _info;
   EncryptedFile _encryptedInfo;
diff --git a/src/libsync/propagatorjobs.cpp b/src/libsync/propagatorjobs.cpp
index 3ec7e1a031..9744d64ea4 100644
--- a/src/libsync/propagatorjobs.cpp
+++ b/src/libsync/propagatorjobs.cpp
@@ -13,6 +13,8 @@
  * for more details.
  */
 
+#include "account.h"
+#include "propagatedownloadencrypted.h"
 #include "propagatorjobs.h"
 #include "owncloudpropagator.h"
 #include "owncloudpropagator_p.h"
@@ -156,6 +158,36 @@ void PropagateLocalMkdir::start()
     if (propagator()->_abortRequested.fetchAndAddRelaxed(0))
         return;
 
+    const auto rootPath = [=]() {
+        const auto result = propagator()->_remoteFolder;
+        if (result.startsWith('/')) {
+            return result.mid(1);
+        } else {
+            return result;
+        }
+    }();
+    const auto remotePath = QString(rootPath + _item->_file);
+    const auto remoteParentPath = remotePath.left(remotePath.lastIndexOf('/'));
+
+    const auto account = propagator()->account();
+    if (!account->capabilities().clientSideEncryptionAvailable() ||
+        !account->e2e()->isFolderEncrypted(remoteParentPath + '/')) {
+        startLocalMkdir();
+    } else {
+        SyncJournalFileRecord parentRec;
+        propagator()->_journal->getFileRecordByE2eMangledName(remoteParentPath, &parentRec);
+        const auto parentPath = parentRec.isValid() ? parentRec._path : remoteParentPath;
+        startDemanglingName(parentPath);
+    }
+}
+
+void PropagateLocalMkdir::setDeleteExistingFile(bool enabled)
+{
+    _deleteExistingFile = enabled;
+}
+
+void PropagateLocalMkdir::startLocalMkdir()
+{
     QDir newDir(propagator()->getFilePath(_item->_file));
     QString newDirStr = QDir::toNativeSeparators(newDir.path());
 
@@ -211,9 +243,22 @@ void PropagateLocalMkdir::start()
     done(resultStatus);
 }
 
-void PropagateLocalMkdir::setDeleteExistingFile(bool enabled)
+void PropagateLocalMkdir::startDemanglingName(const QString &parentPath)
 {
-    _deleteExistingFile = enabled;
+    auto downloadEncryptedHelper = new PropagateDownloadEncrypted(propagator(), parentPath, _item, this);
+    connect(downloadEncryptedHelper, &PropagateDownloadEncrypted::folderStatusEncrypted,
+            this, &PropagateLocalMkdir::startLocalMkdir);
+    connect(downloadEncryptedHelper, &PropagateDownloadEncrypted::folderStatusNotEncrypted, this, [this] {
+        // We were wrong after all? Actually might happen due to legacy clients creating broken encrypted folders
+        qCDebug(lcPropagateLocalMkdir) << "Parent of" << _item->_file << "wasn't encrypted, creating with the original name";
+        startLocalMkdir();
+    });
+    connect(downloadEncryptedHelper, &PropagateDownloadEncrypted::failed, [this] {
+        // This also might happen due to legacy clients creating broken encrypted folders...
+        qCDebug(lcPropagateLocalMkdir) << "Directory" << _item->_file << "doesn't exist in its parent metadata, creating with the original name";
+        startLocalMkdir();
+    });
+    downloadEncryptedHelper->start();
 }
 
 void PropagateLocalRename::start()
diff --git a/src/libsync/propagatorjobs.h b/src/libsync/propagatorjobs.h
index b4c37cd94c..1a1266865a 100644
--- a/src/libsync/propagatorjobs.h
+++ b/src/libsync/propagatorjobs.h
@@ -71,6 +71,9 @@ public:
     void setDeleteExistingFile(bool enabled);
 
 private:
+    void startLocalMkdir();
+    void startDemanglingName(const QString &parentPath);
+
     bool _deleteExistingFile;
 };