diff --git a/src/libsync/syncengine.cpp b/src/libsync/syncengine.cpp
index a9ca164038fb0..db8ed9c2dd4c7 100644
--- a/src/libsync/syncengine.cpp
+++ b/src/libsync/syncengine.cpp
@@ -1261,7 +1261,7 @@ void SyncEngine::setLocalDiscoveryOptions(LocalDiscoveryStyle style, std::set<QS
         // only execute if logging is enabled
         auto debug = qDebug(lcEngine);
         debug << "paths to discover locally";
-        for (auto path : _localDiscoveryPaths) {
+        for (const auto &path : _localDiscoveryPaths) {
             debug << path;
         }
     }
@@ -1354,8 +1354,9 @@ void SyncEngine::wipeVirtualFiles(const QString &localPath, SyncJournalDb &journ
 {
     qCInfo(lcEngine) << "Wiping virtual files inside" << localPath;
     const auto resGetFilesBelowPath = journal.getFilesBelowPath(QByteArray(), [&](const SyncJournalFileRecord &rec) {
-        if (rec._type != ItemTypeVirtualFile && rec._type != ItemTypeVirtualFileDownload)
+        if (rec._type != ItemTypeVirtualFile && rec._type != ItemTypeVirtualFileDownload && rec._type != ItemTypeVirtualDirectory) {
             return;
+        }
 
         qCDebug(lcEngine) << "Removing db record for" << rec.path();
         if (!journal.deleteFileRecord(rec._path)) {
diff --git a/test/testsynccfapi.cpp b/test/testsynccfapi.cpp
index 797752ac5275a..1b915b4864bd3 100644
--- a/test/testsynccfapi.cpp
+++ b/test/testsynccfapi.cpp
@@ -7,14 +7,15 @@
  * any purpose.
  */
 
-#include <QtTest>
 #include "syncenginetestutils.h"
-#include "common/vfs.h"
-#include "config.h"
-#include <syncengine.h>
 
+#include "common/vfs.h"
+#include "openfilemanager.h"
+#include "syncengine.h"
 #include "vfs/cfapi/cfapiwrapper.h"
 
+#include <QtTest>
+
 namespace cfapi {
 using namespace OCC::CfApiWrapper;
 }
@@ -1582,6 +1583,131 @@ private slots:
         const auto directoryItem = fakeFolder.remoteModifier().find("directory");
         QCOMPARE(directoryItem, nullptr);
     }
+
+    void syncFoldersOnDemand()
+    {
+        FakeFolder fakeFolder {FileInfo{}};
+        auto vfs = setupVfs(fakeFolder);
+
+        ItemCompletedSpy completeSpy(fakeFolder);
+
+        const auto cleanup = [&]() {
+            completeSpy.clear();
+        };
+
+        cleanup();
+
+        fakeFolder.remoteModifier().insert("rootfile1");
+        fakeFolder.remoteModifier().mkdir("first folder");
+        fakeFolder.remoteModifier().insert("first folder/file1");
+        fakeFolder.remoteModifier().insert("first folder/file2");
+        fakeFolder.remoteModifier().insert("first folder/file3");
+        fakeFolder.remoteModifier().mkdir("first folder/second folder");
+        fakeFolder.remoteModifier().insert("first folder/second folder/second file1");
+        fakeFolder.remoteModifier().insert("first folder/second folder/second file2");
+        fakeFolder.remoteModifier().insert("first folder/second folder/second file3");
+
+        QVERIFY(fakeFolder.syncOnce());
+        QCOMPARE(completeSpy.size(), 9);
+        QVERIFY(itemInstruction(completeSpy, "rootfile1", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "first folder", CSYNC_INSTRUCTION_NEW));
+
+        cleanup();
+
+        OCC::showInFileManager(fakeFolder.localPath() + "first folder");
+
+        QTest::qWait(5000);
+
+        QVERIFY(fakeFolder.syncOnce());
+
+        OCC::showInFileManager(fakeFolder.localPath() + "first folder");
+
+        QTest::qWait(5000);
+
+        const auto file3Info = fakeFolder.localModifier().find("first folder/file3");
+        QVERIFY(file3Info.exists());
+        const auto secondFolderInfo = fakeFolder.localModifier().find("first folder/second folder");
+        QVERIFY(secondFolderInfo.exists());
+        const auto wrongFirstFolderInfo = fakeFolder.localModifier().find("first folder/first folder");
+        QVERIFY(!wrongFirstFolderInfo.exists());
+
+        QVERIFY(fakeFolder.syncOnce());
+
+        OCC::showInFileManager(fakeFolder.localPath() + "first folder/second folder");
+
+        QTest::qWait(5000);
+
+        const auto secondFile3Info = fakeFolder.localModifier().find("first folder/second folder/second file3");
+        QVERIFY(secondFile3Info.exists());
+        const auto wrongSecondFolderInfo = fakeFolder.localModifier().find("first folder/second folder/second folder");
+        QVERIFY(!wrongSecondFolderInfo.exists());
+
+        QVERIFY(fakeFolder.syncOnce());
+    }
+
+    void switchVfsOffWithOnDemandFolder()
+    {
+        FakeFolder fakeFolder{FileInfo{}};
+        setupVfs(fakeFolder);
+
+        ItemCompletedSpy completeSpy(fakeFolder);
+
+        fakeFolder.remoteModifier().insert("firstFile1.txt");
+        fakeFolder.remoteModifier().insert("firstFile2.txt");
+        fakeFolder.remoteModifier().insert("firstFile3.txt");
+        fakeFolder.remoteModifier().mkdir("directory");
+        fakeFolder.remoteModifier().mkdir("directory/subdir");
+        fakeFolder.remoteModifier().insert("directory/file1");
+        fakeFolder.remoteModifier().insert("directory/file2");
+        fakeFolder.remoteModifier().insert("directory/file3");
+        fakeFolder.remoteModifier().insert("directory/subdir/fileTxt1.txt");
+        fakeFolder.remoteModifier().insert("directory/subdir/fileTxt2.txt");
+        fakeFolder.remoteModifier().insert("directory/subdir/fileTxt3.txt");
+
+        QVERIFY(fakeFolder.syncOnce());
+
+        QCOMPARE(completeSpy.size(), 11);
+        QVERIFY(itemInstruction(completeSpy, "directory", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "firstFile1.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "firstFile2.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "firstFile3.txt", CSYNC_INSTRUCTION_NEW));
+        completeSpy.clear();
+
+        SyncEngine::wipeVirtualFiles(fakeFolder.localPath(), fakeFolder.syncJournal(), *fakeFolder.syncEngine().syncOptions()._vfs);
+
+        fakeFolder.syncEngine().syncOptions()._vfs->stop();
+        fakeFolder.syncEngine().syncOptions()._vfs->unregisterFolder();
+
+        auto noVfsPlugin = QSharedPointer<Vfs>(createVfsFromPlugin(Vfs::Off).release());
+        QObject::connect(&fakeFolder.syncEngine().syncFileStatusTracker(), &SyncFileStatusTracker::fileStatusChanged,
+                         noVfsPlugin.data(), &Vfs::fileStatusChanged);
+        fakeFolder.switchToVfs(noVfsPlugin);
+
+        ::setPinState(fakeFolder.localPath(), PinState::Unspecified, cfapi::NoRecurse);
+
+        fakeFolder.syncJournal().setSelectiveSyncList(SyncJournalDb::SelectiveSyncBlackList, {});
+
+        fakeFolder.syncEngine().setLocalDiscoveryOptions(LocalDiscoveryStyle::FilesystemOnly);
+        QVERIFY(fakeFolder.syncOnce());
+
+        QCOMPARE(completeSpy.size(), 9);
+        QVERIFY(itemInstruction(completeSpy, "directory", CSYNC_INSTRUCTION_NONE));
+        QVERIFY(itemInstruction(completeSpy, "firstFile1.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "firstFile2.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "firstFile3.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/subdir", CSYNC_INSTRUCTION_NONE));
+        QVERIFY(itemInstruction(completeSpy, "directory/file1", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/file2", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/file3", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/subdir/fileTxt1.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/subdir/fileTxt2.txt", CSYNC_INSTRUCTION_NEW));
+        QVERIFY(itemInstruction(completeSpy, "directory/subdir/fileTxt3.txt", CSYNC_INSTRUCTION_NEW));
+        completeSpy.clear();
+
+        fakeFolder.syncEngine().setLocalDiscoveryOptions(LocalDiscoveryStyle::FilesystemOnly);
+        QVERIFY(fakeFolder.syncOnce());
+        QCOMPARE(completeSpy.size(), 0);
+    }
 };
 
 QTEST_GUILESS_MAIN(TestSyncCfApi)