diff --git a/src/code/InstallHelper.cs b/src/code/InstallHelper.cs
index ba7fc3d88..d804da16a 100644
--- a/src/code/InstallHelper.cs
+++ b/src/code/InstallHelper.cs
@@ -1203,7 +1203,7 @@ private bool TryExtractToDirectory(string zipPath, string extractPath, out Error
             {
                 using (ZipArchive archive = ZipFile.OpenRead(zipPath))
                 {
-                    foreach (ZipArchiveEntry entry in archive.Entries)
+                    foreach (ZipArchiveEntry entry in archive.Entries.Where(entry => entry.CompressedLength > 0))
                     {
                         // If a file has one or more parent directories.
                         if (entry.FullName.Contains(Path.DirectorySeparatorChar) || entry.FullName.Contains(Path.AltDirectorySeparatorChar))
diff --git a/test/InstallPSResourceTests/InstallPSResourceLocal.Tests.ps1 b/test/InstallPSResourceTests/InstallPSResourceLocal.Tests.ps1
index 7553fa066..90b264983 100644
--- a/test/InstallPSResourceTests/InstallPSResourceLocal.Tests.ps1
+++ b/test/InstallPSResourceTests/InstallPSResourceLocal.Tests.ps1
@@ -14,12 +14,15 @@ Describe 'Test Install-PSResource for local repositories' -tags 'CI' {
     BeforeAll {
         $localRepo = "psgettestlocal"
         $localUNCRepo = "psgettestlocal3"
+        $localNupkgRepo = "LocalNupkgRepo"
+        $localNupkgRepoUri = "test\testFiles\testNupkgs"
         $testModuleName = "test_local_mod"
         $testModuleName2 = "test_local_mod2"
         $testModuleClobber = "testModuleClobber"
         $testModuleClobber2 = "testModuleClobber2"
         Get-NewPSResourceRepositoryFile
         Register-LocalRepos
+        Register-PSResourceRepository -Name $localNupkgRepo -SourceLocation $localNupkgRepoUri
 
         $prereleaseLabel = "alpha001"
         $tags = @()
@@ -279,4 +282,13 @@ Describe 'Test Install-PSResource for local repositories' -tags 'CI' {
             $err[$i].FullyQualifiedErrorId | Should -Not -Be "System.NullReferenceException,Microsoft.PowerShell.PSResourceGet.Cmdlets.InstallPSResource"
         }
     }
+
+    It "Install .nupkg that contains directories (specific package throws errors when accessed by ZipFile.OpenRead)" {
+        $nupkgName = "Microsoft.Web.Webview2"
+        $nupkgVersion = "1.0.2792.45"
+        Install-PSResource -Name $nupkgName -Version $nupkgVersion -Repository $localNupkgRepo -TrustRepository
+        $pkg = Get-InstalledPSResource $nupkgName
+        $pkg.Name | Should -Be $nupkgName
+        $pkg.Version | Should -Be $nupkgVersion
+    }
 }
diff --git a/test/testFiles/testNupkgs/microsoft.web.webview2.1.0.2792.45.nupkg b/test/testFiles/testNupkgs/microsoft.web.webview2.1.0.2792.45.nupkg
new file mode 100644
index 000000000..d047ae55d
Binary files /dev/null and b/test/testFiles/testNupkgs/microsoft.web.webview2.1.0.2792.45.nupkg differ