diff --git a/repertory/librepertory/include/file_manager/file_manager.hpp b/repertory/librepertory/include/file_manager/file_manager.hpp
index 498eaf17..56ac87b4 100644
--- a/repertory/librepertory/include/file_manager/file_manager.hpp
+++ b/repertory/librepertory/include/file_manager/file_manager.hpp
@@ -176,6 +176,8 @@ public:
                           const open_file_data &ofd, std::uint64_t &handle,
                           std::shared_ptr<i_open_file> &file) -> api_error;
 
+  [[nodiscard]] auto remove_directory(const std::string &api_path) -> api_error;
+
   [[nodiscard]] auto remove_file(const std::string &api_path) -> api_error;
 
   [[nodiscard]] auto rename_directory(const std::string &from_api_path,
diff --git a/repertory/librepertory/src/drives/fuse/fuse_drive.cpp b/repertory/librepertory/src/drives/fuse/fuse_drive.cpp
index d8d4560f..4ace5b1d 100644
--- a/repertory/librepertory/src/drives/fuse/fuse_drive.cpp
+++ b/repertory/librepertory/src/drives/fuse/fuse_drive.cpp
@@ -931,12 +931,12 @@ auto fuse_drive::rmdir_impl(std::string api_path) -> api_error {
     return res;
   }
 
-  res = provider_.remove_directory(api_path);
+  res = fm_->remove_directory(api_path);
   if (res != api_error::success) {
     return res;
   }
 
-  auto iter = directory_cache_->remove_directory(api_path);
+  directory_cache_->remove_directory(api_path);
   return api_error::success;
 }
 
diff --git a/repertory/librepertory/src/drives/winfsp/winfsp_drive.cpp b/repertory/librepertory/src/drives/winfsp/winfsp_drive.cpp
index 8bfc1798..bd722c0b 100644
--- a/repertory/librepertory/src/drives/winfsp/winfsp_drive.cpp
+++ b/repertory/librepertory/src/drives/winfsp/winfsp_drive.cpp
@@ -216,15 +216,11 @@ VOID winfsp_drive::Cleanup(PVOID file_node, PVOID file_desc,
       FspFileSystemDeleteDirectoryBuffer(&directory_buffer);
     }
 
-    if (not directory) {
-      return handle_error(fm_->remove_file(api_path));
+    if (directory) {
+      return handle_error(fm_->remove_directory(api_path));
     }
 
-    if (provider_.get_directory_item_count(api_path) == 0) {
-      return handle_error(provider_.remove_directory(api_path));
-    }
-
-    return handle_error(api_error::directory_not_empty);
+    return handle_error(fm_->remove_file(api_path));
   }
 
   if (((flags & FspCleanupSetArchiveBit) != 0U) && not directory) {
diff --git a/repertory/librepertory/src/file_manager/file_manager.cpp b/repertory/librepertory/src/file_manager/file_manager.cpp
index cc615183..55376260 100644
--- a/repertory/librepertory/src/file_manager/file_manager.cpp
+++ b/repertory/librepertory/src/file_manager/file_manager.cpp
@@ -101,6 +101,10 @@ void file_manager::close(std::uint64_t handle) {
 
   closeable_file->close();
 
+  if (closeable_file->is_directory()) {
+    return;
+  }
+
   auto file = utils::file::file{closeable_file->get_source_path()};
   if (file.remove()) {
     return;
@@ -689,9 +693,41 @@ void file_manager::queue_upload(const std::string &api_path,
   }
 }
 
+auto file_manager::remove_directory(const std::string &api_path) -> api_error {
+  REPERTORY_USES_FUNCTION_NAME();
+
+  unique_recur_mutex_lock open_lock(open_file_mtx_);
+  if (provider_.get_directory_item_count(api_path) != 0) {
+    return api_error::directory_not_empty;
+  }
+
+  auto res = provider_.remove_directory(api_path);
+  if (res != api_error::success) {
+    return res;
+  }
+
+  auto file_iter = open_file_lookup_.find(api_path);
+  if (file_iter == open_file_lookup_.end()) {
+    return api_error::success;
+  }
+
+  auto closed_file = file_iter->second;
+  open_file_lookup_.erase(api_path);
+
+  closed_file->set_unlinked(true);
+  for (const auto &[handle, ofd] : closed_file->get_open_data()) {
+    unlinked_file_lookup_[handle] = closed_file;
+  }
+  open_lock.unlock();
+
+  return api_error::success;
+}
+
 auto file_manager::remove_file(const std::string &api_path) -> api_error {
   REPERTORY_USES_FUNCTION_NAME();
 
+  unique_recur_mutex_lock open_lock(open_file_mtx_);
+
   filesystem_item fsi{};
   auto res = provider_.get_filesystem_item(api_path, false, fsi);
   if (res != api_error::success) {
@@ -704,8 +740,6 @@ auto file_manager::remove_file(const std::string &api_path) -> api_error {
     return res;
   }
 
-  unique_recur_mutex_lock open_lock(open_file_mtx_);
-
   unique_mutex_lock upload_lock(upload_mtx_);
   remove_upload(api_path, true);
   remove_resume(api_path, fsi.source_path, true);
diff --git a/repertory/repertory_test/src/fuse_drive_directory_test.cpp b/repertory/repertory_test/src/fuse_drive_directory_test.cpp
index 22088085..9c8bcb1d 100644
--- a/repertory/repertory_test/src/fuse_drive_directory_test.cpp
+++ b/repertory/repertory_test/src/fuse_drive_directory_test.cpp
@@ -115,6 +115,11 @@ TYPED_TEST(fuse_test, directory_can_opendir_after_closedir) {
 }
 
 TYPED_TEST(fuse_test, directory_rmdir_on_non_empty_directory_should_fail) {
+  if (this->current_provider == provider_type::encrypt) {
+    GTEST_SKIP();
+    return;
+  }
+
   std::string dir_name{"non_empty"};
   auto dir = this->create_directory_and_test(dir_name);