diff --git a/changelog/unreleased/bugfix-upload-nested-folders b/changelog/unreleased/bugfix-upload-nested-folders
new file mode 100644
index 00000000000..46421247852
--- /dev/null
+++ b/changelog/unreleased/bugfix-upload-nested-folders
@@ -0,0 +1,6 @@
+Bugfix: Uploading nested folders
+
+We've fixed a bug where the upload overlay breaks when uploading a folder that contains exactly one folder (which then contains some files).
+
+https://github.com/owncloud/web/issues/11299
+https://github.com/owncloud/web/pull/11302
diff --git a/packages/web-app-files/src/HandleUpload.ts b/packages/web-app-files/src/HandleUpload.ts
index cc29bf736cb..279deef101a 100644
--- a/packages/web-app-files/src/HandleUpload.ts
+++ b/packages/web-app-files/src/HandleUpload.ts
@@ -280,9 +280,8 @@ export class HandleUpload extends BasePlugin {
     for (const file of filesToUpload.filter(({ meta }) => !!meta.relativeFolder)) {
       const folders = file.meta.relativeFolder.split('/').filter(Boolean)
       let current = directoryTree
-      if (folders.length <= 1) {
-        topLevelIds[file.meta.relativeFolder] = file.meta.topLevelFolderId
-      }
+      // first folder is always top level
+      topLevelIds[urlJoin(folders[0])] = file.meta.topLevelFolderId
       for (const folder of folders) {
         current[folder] = current[folder] || {}
         current = current[folder]