diff --git a/cmd/collapse_test.go b/cmd/collapse_test.go
index 4c6a9d0ff..623ed1d84 100644
--- a/cmd/collapse_test.go
+++ b/cmd/collapse_test.go
@@ -86,4 +86,22 @@ var _ = Describe("collapse with testdata", func() {
 			Eventually(session).Should(gexec.Exit(0))
 		})
 	})
+
+	Describe("an orb containing local executors and commands in folder", func() {
+		BeforeEach(func() {
+			var err error
+			command = exec.Command(pathCLI, "collapse", "-r", "testdata/myorb/test")
+			results, err = ioutil.ReadFile("testdata/myorb/result.yml")
+			Expect(err).ShouldNot(HaveOccurred())
+		})
+
+		It("collapse all YAML contents as expected", func() {
+			session, err := gexec.Start(command, GinkgoWriter, GinkgoWriter)
+			session.Wait()
+			Expect(err).ShouldNot(HaveOccurred())
+			Eventually(session.Err.Contents()).Should(BeEmpty())
+			Eventually(session.Out.Contents()).Should(MatchYAML(results))
+			Eventually(session).Should(gexec.Exit(0))
+		})
+	})
 })
diff --git a/cmd/testdata/myorb/result.yml b/cmd/testdata/myorb/result.yml
new file mode 100644
index 000000000..281d6c05a
--- /dev/null
+++ b/cmd/testdata/myorb/result.yml
@@ -0,0 +1,19 @@
+commands:
+  zomg:
+    description: a command inside a folder in an orb
+    parameters:
+      tm:
+        description: Tell me something.
+        type: string
+    steps:
+    - run: echo "You don't say... << parameters.saywhat >>"
+description: A simple encapsulation of common tasks in Hugo
+executors:
+  default:
+    docker:
+    - image: cibuilds/hugo:<< parameters.image >>
+    parameters:
+      tag:
+        description: The tag to use on the image
+        type: string
+
diff --git a/cmd/testdata/myorb/test/commands/zomg.yml b/cmd/testdata/myorb/test/commands/zomg.yml
new file mode 100644
index 000000000..11289f015
--- /dev/null
+++ b/cmd/testdata/myorb/test/commands/zomg.yml
@@ -0,0 +1,7 @@
+description: "a command inside a folder in an orb"
+parameters:
+  tm:
+    description: "Tell me something."
+    type: string
+steps:
+  - run: echo "You don't say... << parameters.saywhat >>"
diff --git a/cmd/testdata/myorb/test/orb.yml b/cmd/testdata/myorb/test/orb.yml
new file mode 100644
index 000000000..d12c0a238
--- /dev/null
+++ b/cmd/testdata/myorb/test/orb.yml
@@ -0,0 +1,10 @@
+description: "A simple encapsulation of common tasks in Hugo"
+
+executors:
+  default:
+    parameters:
+      tag:
+        description: "The tag to use on the image"
+        type: string
+    docker:
+      - image: cibuilds/hugo:<< parameters.image >>