diff --git a/scripts/commands/playlist/format.ts b/scripts/commands/playlist/format.ts
index a7c69ee013..f38c797be4 100644
--- a/scripts/commands/playlist/format.ts
+++ b/scripts/commands/playlist/format.ts
@@ -4,11 +4,10 @@ import { Stream, Playlist } from '../../models'
 import { Storage } from '@freearhey/storage-js'
 import { STREAMS_DIR } from '../../constants'
 import { PlaylistParser } from '../../core'
-import { getStreamInfo } from '../../utils'
+import { getStoragePath, getStreamInfo } from '../../utils'
 import { loadData, data } from '../../api'
 import cliProgress from 'cli-progress'
 import { eachLimit } from 'async'
-import path from 'node:path'
 import os from 'node:os'
 
 program
@@ -42,7 +41,7 @@ async function main() {
     storage: streamsStorage
   })
   let files = program.args.length ? program.args : await streamsStorage.list('**/*.m3u')
-  files = files.map((filepath: string) => path.basename(filepath))
+  files = files.map((filepath: string) => getStoragePath(filepath, STREAMS_DIR))
   let streams = await parser.parse(files)
   streams = streams.map((stream: Stream) => {
     stream.setGuides(data.guidesGroupedByStreamId.get(stream.getId()))
diff --git a/scripts/utils.ts b/scripts/utils.ts
index 094d4dd3e0..4674abaea0 100644
--- a/scripts/utils.ts
+++ b/scripts/utils.ts
@@ -53,6 +53,31 @@ export function normalizeURL(url: string): string {
   }
 }
 
+function isInsideDirectory(rootDir: string, target: string): boolean {
+  const relative = path.relative(rootDir, target)
+
+  return (
+    relative !== '' &&
+    relative !== '..' &&
+    !relative.startsWith(`..${path.sep}`) &&
+    !path.isAbsolute(relative)
+  )
+}
+
+export function getStoragePath(filepath: string, rootDir: string): string {
+  const root = path.resolve(rootDir)
+  const fromWorkspace = path.resolve(filepath)
+  const target = isInsideDirectory(root, fromWorkspace)
+    ? fromWorkspace
+    : path.resolve(root, filepath)
+
+  if (!isInsideDirectory(root, target)) {
+    throw new Error(`Filepath "${filepath}" is outside the storage directory`)
+  }
+
+  return path.relative(root, target).split(path.sep).join('/')
+}
+
 export function truncate(string: string, limit: number = 100) {
   if (!string) return string
   if (string.length < limit) return string
diff --git a/tests/__data__/input/playlist_format/nested/nested.m3u b/tests/__data__/input/playlist_format/nested/nested.m3u
new file mode 100644
index 0000000000..34fe6f1cce
--- /dev/null
+++ b/tests/__data__/input/playlist_format/nested/nested.m3u
@@ -0,0 +1,5 @@
+#EXTM3U
+#EXTINF:-1 tvg-id="",Zulu (720p)
+https://example.com/zulu.m3u8
+#EXTINF:-1 tvg-id="",Alpha (720p)
+https://example.com/alpha.m3u8
diff --git a/tests/commands/playlist/format.test.ts b/tests/commands/playlist/format.test.ts
index dd36971028..2a01d0a887 100644
--- a/tests/commands/playlist/format.test.ts
+++ b/tests/commands/playlist/format.test.ts
@@ -31,6 +31,16 @@ describe('playlist:format', () => {
     })
   })
 
+  it('formats playlists in nested directories', () => {
+    const cmd = `${ENV_VAR} npm run playlist:format`
+    execSync(cmd, { encoding: 'utf8' })
+
+    const output = content('tests/__data__/output/streams/nested/nested.m3u')
+    expect(output).toContain(',Alpha (720p)')
+    expect(output).toContain(',Zulu (720p)')
+    expect(output.indexOf(',Alpha (720p)')).toBeLessThan(output.indexOf(',Zulu (720p)'))
+  })
+
   it('keeps links with malformed percent escapes', () => {
     fs.emptyDirSync('tests/__data__/output')
     fs.copySync('tests/__data__/input/playlist_normalize', 'tests/__data__/output/streams')