diff --git a/backend/posix/posix.go b/backend/posix/posix.go
index 5640a2c0..f00a8c0d 100644
--- a/backend/posix/posix.go
+++ b/backend/posix/posix.go
@@ -3044,7 +3044,6 @@ func (p *Posix) DeleteObject(ctx context.Context, input *s3.DeleteObjectInput) (
 				// if the specified VersionId is the same as in the latest version,
 				// remove the latest version, find the latest version from the versioning
 				// directory and move to the place of the deleted object, to make it the latest
-
 				isDelMarker, err := p.isObjDeleteMarker(bucket, object)
 				if err != nil {
 					return nil, err
@@ -3056,6 +3055,7 @@ func (p *Posix) DeleteObject(ctx context.Context, input *s3.DeleteObjectInput) (
 
 				ents, err := os.ReadDir(versionPath)
 				if errors.Is(err, fs.ErrNotExist) {
+					p.removeParents(bucket, object)
 					return &s3.DeleteObjectOutput{
 						DeleteMarker: &isDelMarker,
 						VersionId:    input.VersionId,
@@ -3066,6 +3066,7 @@ func (p *Posix) DeleteObject(ctx context.Context, input *s3.DeleteObjectInput) (
 				}
 
 				if len(ents) == 0 {
+					p.removeParents(bucket, object)
 					return &s3.DeleteObjectOutput{
 						DeleteMarker: &isDelMarker,
 						VersionId:    input.VersionId,
diff --git a/tests/integration/group-tests.go b/tests/integration/group-tests.go
index 41e4c272..ea9f856f 100644
--- a/tests/integration/group-tests.go
+++ b/tests/integration/group-tests.go
@@ -692,6 +692,7 @@ func TestVersioning(s *S3Conf) {
 	Versioning_DeleteObject_non_existing_object(s)
 	Versioning_DeleteObject_delete_a_delete_marker(s)
 	Versioning_Delete_null_versionId_object(s)
+	Versioning_DeleteObject_nested_dir_object(s)
 	Versioning_DeleteObject_suspended(s)
 	Versioning_DeleteObjects_success(s)
 	Versioning_DeleteObjects_delete_deleteMarkers(s)
@@ -1151,6 +1152,7 @@ func GetIntTests() IntTests {
 		"Versioning_DeleteObject_non_existing_object":                             Versioning_DeleteObject_non_existing_object,
 		"Versioning_DeleteObject_delete_a_delete_marker":                          Versioning_DeleteObject_delete_a_delete_marker,
 		"Versioning_Delete_null_versionId_object":                                 Versioning_Delete_null_versionId_object,
+		"Versioning_DeleteObject_nested_dir_object":                               Versioning_DeleteObject_nested_dir_object,
 		"Versioning_DeleteObject_suspended":                                       Versioning_DeleteObject_suspended,
 		"Versioning_DeleteObjects_success":                                        Versioning_DeleteObjects_success,
 		"Versioning_DeleteObjects_delete_deleteMarkers":                           Versioning_DeleteObjects_delete_deleteMarkers,
diff --git a/tests/integration/tests.go b/tests/integration/tests.go
index 13e798a9..91e13594 100644
--- a/tests/integration/tests.go
+++ b/tests/integration/tests.go
@@ -14904,6 +14904,51 @@ func Versioning_Delete_null_versionId_object(s *S3Conf) error {
 	})
 }
 
+func Versioning_DeleteObject_nested_dir_object(s *S3Conf) error {
+	testName := "Versioning_DeleteObject_nested_dir_object"
+	return actionHandler(s, testName, func(s3client *s3.Client, bucket string) error {
+		obj := "foo/bar/baz"
+		out, err := putObjectWithData(1000, &s3.PutObjectInput{
+			Bucket: &bucket,
+			Key:    &obj,
+		}, s3client)
+		if err != nil {
+			return err
+		}
+
+		ctx, cancel := context.WithTimeout(context.Background(), shortTimeout)
+		res, err := s3client.DeleteObject(ctx, &s3.DeleteObjectInput{
+			Bucket:    &bucket,
+			Key:       &obj,
+			VersionId: out.res.VersionId,
+		})
+		cancel()
+		if err != nil {
+			return err
+		}
+
+		if getString(res.VersionId) != getString(out.res.VersionId) {
+			return fmt.Errorf("expected the versionId to be %v, instead got %v", getString(out.res.VersionId), getString(res.VersionId))
+		}
+
+		ctx, cancel = context.WithTimeout(context.Background(), shortTimeout)
+		_, err = s3client.DeleteBucket(ctx, &s3.DeleteBucketInput{
+			Bucket: &bucket,
+		})
+		cancel()
+		if err != nil {
+			return err
+		}
+
+		// Then create the bucket back to not get error on teardown
+		if err := setup(s, bucket); err != nil {
+			return err
+		}
+
+		return nil
+	}, withLock())
+}
+
 func Versioning_DeleteObject_suspended(s *S3Conf) error {
 	testName := "Versioning_DeleteObject_suspended"
 	return actionHandler(s, testName, func(s3client *s3.Client, bucket string) error {