diff --git a/src/AzureBlobStorageAdapter.php b/src/AzureBlobStorageAdapter.php
index d877623..0a3e89b 100644
--- a/src/AzureBlobStorageAdapter.php
+++ b/src/AzureBlobStorageAdapter.php
@@ -230,17 +230,20 @@ public function listContents(string $path, bool $deep): iterable
     {
         try {
             $prefix = $this->prefixer->prefixDirectoryPath($path);
+            $directories = [$prefix];
 
-            if ($deep) {
-                foreach ($this->containerClient->getBlobs($prefix) as $item) {
-                    yield $this->normalizeBlob($this->prefixer->stripPrefix($item->name), $item->properties);
-                }
-            } else {
-                foreach ($this->containerClient->getBlobsByHierarchy($prefix) as $item) {
+            while (!empty($directories)) {
+                $currentPrefix = array_shift($directories);
+
+                foreach ($this->containerClient->getBlobsByHierarchy($currentPrefix) as $item) {
                     if ($item instanceof Blob) {
                         yield $this->normalizeBlob($this->prefixer->stripPrefix($item->name), $item->properties);
                     } else {
                         yield new DirectoryAttributes($this->prefixer->stripPrefix($item->name));
+
+                        if ($deep) {
+                            $directories[] = $item->name;
+                        }
                     }
                 }
             }
diff --git a/tests/AzureBlobStorageTest.php b/tests/AzureBlobStorageTest.php
index 6797fa8..0c0128f 100644
--- a/tests/AzureBlobStorageTest.php
+++ b/tests/AzureBlobStorageTest.php
@@ -190,4 +190,28 @@ public function setting_visibility_causes_errors(): void
 
         $adapter->setVisibility('some-file.md', 'public');
     }
+
+    #[Test]
+    public function listing_contents_deep(): void
+    {
+        $this->runScenario(function () {
+            $adapter = $this->adapter();
+
+            $adapter->write('dir1/file1.txt', 'content1', new Config());
+            $adapter->write('dir1/dir2/file2.txt', 'content2', new Config());
+            $adapter->write('dir1/dir2/dir3/file3.txt', 'content3', new Config());
+            /** @phpstan-ignore-next-line */
+            $contents = iterator_to_array($adapter->listContents('', true));
+
+            $this->assertCount(6, $contents); // 3 files + 3 directories
+
+            $paths = array_map(fn($item) => $item->path(), $contents);
+            $this->assertContains('dir1', $paths);
+            $this->assertContains('dir1/file1.txt', $paths);
+            $this->assertContains('dir1/dir2', $paths);
+            $this->assertContains('dir1/dir2/file2.txt', $paths);
+            $this->assertContains('dir1/dir2/dir3', $paths);
+            $this->assertContains('dir1/dir2/dir3/file3.txt', $paths);
+        });
+    }
 }