diff --git a/blender_asset_tracer/pack/__init__.py b/blender_asset_tracer/pack/__init__.py
index f3ac76c..59ace62 100644
--- a/blender_asset_tracer/pack/__init__.py
+++ b/blender_asset_tracer/pack/__init__.py
@@ -554,9 +554,15 @@ class Packer:
             bfile.close()
 
     def _copy_asset_and_deps(self, asset_path: pathlib.Path, action: AssetAction):
+        asset_path_is_dir = asset_path.is_dir()
+
         # Copy the asset itself, but only if it's not a sequence (sequences are
         # handled below in the for-loop).
-        if "*" not in str(asset_path) and "<UDIM>" not in asset_path.name:
+        if (
+            "*" not in str(asset_path)
+            and "<UDIM>" not in asset_path.name
+            and not asset_path_is_dir
+        ):
             packed_path = action.new_path
             assert packed_path is not None
             read_path = action.read_from or asset_path
@@ -564,6 +570,11 @@ class Packer:
                 read_path, packed_path, may_move=action.read_from is not None
             )
 
+        if asset_path_is_dir:  # like 'some/directory':
+            asset_base_path = asset_path
+        else:  # like 'some/directory/prefix_*.bphys':
+            asset_base_path = asset_path.parent
+
         # Copy its sequence dependencies.
         for usage in action.usages:
             if not usage.is_sequence:
@@ -571,14 +582,24 @@ class Packer:
 
             first_pp = self._actions[usage.abspath].new_path
             assert first_pp is not None
+            log.info(f"first_pp = {first_pp}")
 
             # In case of globbing, we only support globbing by filename,
             # and not by directory.
             assert "*" not in str(first_pp) or "*" in first_pp.name
 
-            packed_base_dir = first_pp.parent
+            if asset_path_is_dir:
+                packed_base_dir = first_pp
+            else:
+                packed_base_dir = first_pp.parent
+
             for file_path in usage.files():
-                packed_path = packed_base_dir / file_path.name
+                # Compute the relative path, to support cases where asset_path
+                # is `some/directory` and the to-be-copied file is in
+                # `some/directory/subdir/filename.txt`.
+                relpath = file_path.relative_to(asset_base_path)
+                packed_path = packed_base_dir / relpath
+
                 # Assumption: assets in a sequence are never blend files.
                 self._send_to_target(file_path, packed_path)
 
diff --git a/blender_asset_tracer/pack/transfer.py b/blender_asset_tracer/pack/transfer.py
index b4e543c..62b1b1c 100644
--- a/blender_asset_tracer/pack/transfer.py
+++ b/blender_asset_tracer/pack/transfer.py
@@ -90,6 +90,8 @@ class FileTransferer(threading.Thread, metaclass=abc.ABCMeta):
 
     def queue_copy(self, src: pathlib.Path, dst: pathlib.PurePath):
         """Queue a copy action from 'src' to 'dst'."""
+        if src.is_dir():
+            raise TypeError(f"only files can be copied, not directories: {src}")
         assert (
             not self.done.is_set()
         ), "Queueing not allowed after done_and_join() was called"
@@ -103,6 +105,8 @@ class FileTransferer(threading.Thread, metaclass=abc.ABCMeta):
 
     def queue_move(self, src: pathlib.Path, dst: pathlib.PurePath):
         """Queue a move action from 'src' to 'dst'."""
+        if src.is_dir():
+            raise TypeError(f"only files can be moved, not directories: {src}")
         assert (
             not self.done.is_set()
         ), "Queueing not allowed after done_and_join() was called"
diff --git a/blender_asset_tracer/trace/file_sequence.py b/blender_asset_tracer/trace/file_sequence.py
index f5d4344..6a28567 100644
--- a/blender_asset_tracer/trace/file_sequence.py
+++ b/blender_asset_tracer/trace/file_sequence.py
@@ -56,7 +56,10 @@ def expand_sequence(path: pathlib.Path) -> typing.Iterator[pathlib.Path]:
         raise DoesNotExist(path)
 
     if path.is_dir():
-        yield path
+        # Explode directory paths into separate files.
+        for subpath in path.rglob("*"):
+            if subpath.is_file():
+                yield subpath
         return
 
     log.debug("expanding file sequence %s", path)