diff --git a/scripts/localInstall.js b/scripts/localInstall.js
new file mode 100755
index 0000000000..6fa503c14c
--- /dev/null
+++ b/scripts/localInstall.js
@@ -0,0 +1,109 @@
+#!/usr/bin/env node
+
+const shell = require('shelljs');
+const fs = require('fs');
+const path = require('path');
+const { run, execSilent } = require('./util');
+
+/**
+ * Script for setting up the library in another local project
+ *
+ * ### Usage
+ *
+ * 1) `./localInstall install /path/to/target`
+ *
+ * Generate and install a tarball package to a target npm module. Useful for locally
+ * testing a build that will be sent to NPM. Accepts a relative or absolute path.
+ *
+ * 2) `./localInstall.js link /path/to/target`.
+ *
+ * Link the library to another project for development purposes. Changes made in this
+ * project will be automatically reflected in the target module.
+ *
+ * 3) `./localInstall.js unlink /path/to/target`
+ *
+ * Unlink the library from another project.
+ */
+
+const COMMANDS = ['install', 'link', 'unlink'];
+
+function showHelp() {
+  console.log('Commands:');
+  console.log(
+    '  install [path to target module]\tCreates an NPM package of the project and installs it to the target module'
+  );
+  console.log('  link [path to target module]\t\tLink the project to another module for quick development');
+  console.log('  unlink [path to target module]\tUnlink the project from the target module');
+}
+
+function main() {
+  const command = process.argv[2];
+  if (!COMMANDS.includes(command)) {
+    showHelp();
+    process.exit(0);
+  }
+
+  const targetPackagePath = !path.isAbsolute(process.argv[3])
+    ? path.resolve(process.cwd(), process.argv[3])
+    : process.argv[3];
+
+  if (!fs.existsSync(targetPackagePath)) {
+    console.log(`A valid target package path is required`);
+    process.exit(1);
+  }
+
+  const isDirectory = fs.lstatSync(targetPackagePath).isDirectory();
+  const packageJsonPath = path.join(targetPackagePath, 'package.json');
+  if (!isDirectory || !fs.existsSync(packageJsonPath)) {
+    console.log('Path must be to a valid npm package');
+    process.exit(1);
+  }
+
+  const localPackagePath = path.join(__dirname, '..');
+  const { name, version } = JSON.parse(fs.readFileSync(path.join(localPackagePath, 'package.json')).toString());
+
+  switch (command) {
+    case COMMANDS[0]: // install
+      let tarballPath;
+      run('Building project and creating package', () => {
+        shell.cd(localPackagePath);
+        execSilent('yarn build');
+        execSilent('yarn pack');
+        tarballPath = execSilent('find $(pwd) -type f -iname *.tgz').replace('\n', '');
+      });
+
+      run(`Installing v${version} to ${targetPackagePath}`, () => {
+        shell.cd(targetPackagePath);
+        const yarnLockPath = path.join(targetPackagePath, 'yarn.lock');
+        if (fs.existsSync(yarnLockPath)) {
+          execSilent(`yarn remove ${name}`, true);
+          execSilent(`yarn cache clean`);
+          execSilent(`yarn add ${tarballPath}`);
+        } else {
+          execSilent(`npm uninstall ${name}`);
+          execSilent(`npm install ${tarballPath}`);
+        }
+      });
+      break;
+    case COMMANDS[1]: // link
+      run(`Linking ${name} to ${targetPackagePath}`, () => {
+        shell.cd(localPackagePath);
+        execSilent('yarn link');
+        shell.cd(targetPackagePath);
+        execSilent(`yarn link ${name}`);
+      });
+      break;
+    case COMMANDS[2]: // unlink
+      run(`Unlinking ${name} from ${targetPackagePath}`, () => {
+        shell.cd(targetPackagePath);
+        execSilent(`yarn unlink ${name}`);
+        shell.cd(localPackagePath);
+        execSilent('yarn unlink');
+      });
+      break;
+    default:
+      showHelp();
+  }
+}
+
+main();
diff --git a/scripts/util.js b/scripts/util.js
new file mode 100644
index 0000000000..7bd2a99020
--- /dev/null
+++ b/scripts/util.js
@@ -0,0 +1,41 @@
+const shell = require('shelljs');
+require('shelljs/global');
+
+const terminalCodes = {
+  Red: '\\033[31m',
+  LightGrey: '\\033[37m',
+  Bold: '\\033[1m',
+  ResetAll: '\\033[0m',
+};
+
+module.exports = {
+  run: (status, f) => {
+    let result;
+    shell.exec(`printf "🐎 ${status}..."`);
+    const { LightGrey, Bold, ResetAll } = terminalCodes;
+    try {
+      result = f();
+    } catch (e) {
+      shell.exec(`printf "\\r❗️ ${status}...${Bold}${LightGrey}failed${ResetAll}\\n"`);
+      shell.exec(`printf "${e.message}"`);
+      process.exit(1);
+    }
+    shell.exec(`printf "\\r✅ ${status}...${Bold}${LightGrey}done${ResetAll}\\n"`);
+    return result;
+  },
+  execSilent: (command, swallowError) => {
+    const prevConfig = config.fatal;
+    config.fatal = true;
+    try {
+      return shell.exec(command, { silent: true });
+    } catch (e) {
+      if (swallowError) {
+        return;
+      }
+      throw e;
+    } finally {
+      config.fatal = prevConfig;
+    }
+  },
+  terminalCodes,
+};
diff --git a/src/resolve/metadataResolver.ts b/src/resolve/metadataResolver.ts
index dee77ba019..72ebe624c1 100644
--- a/src/resolve/metadataResolver.ts
+++ b/src/resolve/metadataResolver.ts
@@ -320,9 +320,9 @@ const parseAsFolderMetadataXml =
       if (parts.length > 1) {
         const folderContentTypesDirs = getFolderContentTypeDirNames(registry);
         // check if the path contains a folder content name as a directory
-        // e.g., `/reports/` and if it does return that folder name.
+        const pathWithoutFile = parts.slice(0, -1);
         folderContentTypesDirs.some((dirName) => {
-          if (fsPath.includes(`${sep}${dirName}${sep}`)) {
+          if (pathWithoutFile.includes(dirName)) {
             folderName = dirName;
           }
         });
diff --git a/test/resolve/metadataResolver.test.ts b/test/resolve/metadataResolver.test.ts
index 72f4457858..0e153a0d53 100644
--- a/test/resolve/metadataResolver.test.ts
+++ b/test/resolve/metadataResolver.test.ts
@@ -398,6 +398,31 @@ describe('MetadataResolver', () => {
         expect(comp[0]).to.have.deep.property('type', registryAccess.getTypeByName('ReportFolder'));
       });
 
+      it('should resolve folder metadata and reports from zip paths without leading directory', () => {
+        const registryAccess = new RegistryAccess();
+        const reportFolderDir = 'reports';
+        const reportSubFolder = join(reportFolderDir, 'TestFolder');
+        const virtualFS: VirtualDirectory[] = [
+          { dirPath: reportFolderDir, children: ['TestFolder-meta.xml', 'TestFolder'] },
+          { dirPath: reportSubFolder, children: ['MyReport.report-meta.xml'] },
+        ];
+        const tree = new VirtualTreeContainer(virtualFS);
+        const mdResolver = new MetadataResolver(registryAccess, tree);
+
+        const components = mdResolver.getComponentsFromPath(reportFolderDir);
+        expect(components).to.be.an('array').with.lengthOf(2);
+
+        const folderComp = components.find((c) => c.type.name === 'ReportFolder');
+        expect(folderComp).to.exist;
+        expect(folderComp).to.have.property('name', 'TestFolder');
+        expect(folderComp).to.have.deep.property('type', registryAccess.getTypeByName('ReportFolder'));
+
+        const reportComp = components.find((c) => c.type.name === 'Report');
+        expect(reportComp).to.exist;
+        expect(reportComp).to.have.property('name', 'TestFolder/MyReport');
+        expect(reportComp).to.have.deep.property('type', registryAccess.getTypeByName('Report'));
+      });
+
       it('Should not mistake folder component of a mixed content type as that type', () => {
         // this test has coveage on non-mixedContent types as well by nature of the execution path
         const path = mixedContentInFolder.FOLDER_XML_PATH;