diff --git a/Utilities/File.cpp b/Utilities/File.cpp
index 490605c792..aff4537dea 100644
--- a/Utilities/File.cpp
+++ b/Utilities/File.cpp
@@ -166,6 +166,7 @@ static fs::error to_error(int e)
 	case ENOTEMPTY: return fs::error::notempty;
 	case EROFS: return fs::error::readonly;
 	case EISDIR: return fs::error::isdir;
+	case ENOTDIR: return fs::error::notdir;
 	case ENOSPC: return fs::error::nospace;
 	case EXDEV: return fs::error::xdev;
 	default: return fs::error::unknown;
@@ -2833,6 +2834,7 @@ void fmt_class_string<fs::error>::format(std::string& out, u64 arg)
 		case fs::error::notempty: return "Not empty";
 		case fs::error::readonly: return "Read only";
 		case fs::error::isdir: return "Is a directory";
+		case fs::error::notdir: return "Not a directory";
 		case fs::error::toolong: return "Path too long";
 		case fs::error::nospace: return "Not enough space on the device";
 		case fs::error::xdev: return "Device mismatch";
diff --git a/Utilities/File.h b/Utilities/File.h
index dd2db42a46..3d332dd0be 100644
--- a/Utilities/File.h
+++ b/Utilities/File.h
@@ -683,6 +683,7 @@ namespace fs
 		notempty,
 		readonly,
 		isdir,
+		notdir,
 		toolong,
 		nospace,
 		xdev,
diff --git a/rpcs3/Emu/Cell/lv2/sys_fs.cpp b/rpcs3/Emu/Cell/lv2/sys_fs.cpp
index beec0fc4e4..2534f6a8c1 100644
--- a/rpcs3/Emu/Cell/lv2/sys_fs.cpp
+++ b/rpcs3/Emu/Cell/lv2/sys_fs.cpp
@@ -140,6 +140,32 @@ bool verify_mself(const fs::file& mself_file)
 	return true;
 }
 
+// TODO: May not be thread-safe (or even, process-safe)
+bool has_non_directory_components(std::string_view path)
+{
+	std::string path0{path};
+
+	while (true)
+	{
+		const std::string sub_path = fs::get_parent_dir(path0);
+
+		if (sub_path.size() >= path0.size())
+		{
+			break;
+		}
+
+		fs::stat_t stat{};
+		if (fs::get_stat(sub_path, stat))
+		{
+			return !stat.is_directory;
+		}
+
+		path0 = std::move(sub_path);
+	}
+
+	return false;
+}
+
 lv2_fs_mount_info_map::lv2_fs_mount_info_map()
 {
 	for (auto mp = &g_mp_sys_dev_root; mp; mp = mp->next) // Scan and keep track of pre-mounted devices
@@ -899,8 +925,17 @@ lv2_file::open_raw_result_t lv2_file::open_raw(const std::string& local_path, s3
 
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir: return {CELL_ENOTDIR};
 		case fs::error::noent: return {CELL_ENOENT};
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return {CELL_ENOTDIR};
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -1372,6 +1407,11 @@ error_code sys_fs_opendir(ppu_thread& ppu, vm::cptr<char> path, vm::ptr<u32> fd)
 		}
 		default:
 		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
 			fmt::throw_exception("unknown error %s", error);
 		}
 		}
@@ -1555,6 +1595,10 @@ error_code sys_fs_stat(ppu_thread& ppu, vm::cptr<char> path, vm::ptr<CellFsStat>
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path};
+		}
 		case fs::error::noent:
 		{
 			// Try to analyse split file (TODO)
@@ -1594,6 +1638,11 @@ error_code sys_fs_stat(ppu_thread& ppu, vm::cptr<char> path, vm::ptr<CellFsStat>
 		}
 		default:
 		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
 			fmt::throw_exception("unknown error %s", error);
 		}
 		}
@@ -1720,6 +1769,10 @@ error_code sys_fs_mkdir(ppu_thread& ppu, vm::cptr<char> path, s32 mode)
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path};
+		}
 		case fs::error::noent:
 		{
 			return {mp == &g_mp_sys_dev_hdd1 ? sys_fs.warning : sys_fs.error, CELL_ENOENT, path};
@@ -1728,7 +1781,15 @@ error_code sys_fs_mkdir(ppu_thread& ppu, vm::cptr<char> path, s32 mode)
 		{
 			return {sys_fs.warning, CELL_EEXIST, path};
 		}
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -1789,9 +1850,18 @@ error_code sys_fs_rename(ppu_thread& ppu, vm::cptr<char> from, vm::cptr<char> to
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir: return {CELL_ENOTDIR, from};
 		case fs::error::noent: return {CELL_ENOENT, from};
 		case fs::error::exist: return {CELL_EEXIST, to};
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_from))
+			{
+				return {CELL_ENOTDIR, from};
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -1842,9 +1912,18 @@ error_code sys_fs_rmdir(ppu_thread& ppu, vm::cptr<char> path)
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir: return {CELL_ENOTDIR, path};
 		case fs::error::noent: return {CELL_ENOENT, path};
 		case fs::error::notempty: return {CELL_ENOTEMPTY, path};
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -1896,11 +1975,23 @@ error_code sys_fs_unlink(ppu_thread& ppu, vm::cptr<char> path)
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path };
+		}
 		case fs::error::noent:
 		{
 			return {mp == &g_mp_sys_dev_hdd1 ? sys_fs.warning : sys_fs.error, CELL_ENOENT, path};
 		}
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -2737,7 +2828,15 @@ error_code sys_fs_get_block_size(ppu_thread& ppu, vm::cptr<char> path, vm::ptr<u
 		{
 		case fs::error::exist: return {CELL_EISDIR, path};
 		case fs::error::noent: return {CELL_ENOENT, path};
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -2789,11 +2888,23 @@ error_code sys_fs_truncate(ppu_thread& ppu, vm::cptr<char> path, u64 size)
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path};
+		}
 		case fs::error::noent:
 		{
 			return {mp == &g_mp_sys_dev_hdd1 ? sys_fs.warning : sys_fs.error, CELL_ENOENT, path};
 		}
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -2840,7 +2951,10 @@ error_code sys_fs_ftruncate(ppu_thread& ppu, u32 fd, u64 size)
 		switch (auto error = fs::g_tls_error)
 		{
 		case fs::error::ok:
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
@@ -2887,6 +3001,10 @@ error_code sys_fs_chmod(ppu_thread&, vm::cptr<char> path, s32 mode)
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path};
+		}
 		case fs::error::noent:
 		{
 			// Try to locate split files
@@ -2900,8 +3018,12 @@ error_code sys_fs_chmod(ppu_thread&, vm::cptr<char> path, s32 mode)
 		}
 		default:
 		{
-			sys_fs.error("sys_fs_chmod(): unknown error %s", error);
-			return {CELL_EIO, path};
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
 		}
 		}
 	}
@@ -3033,11 +3155,23 @@ error_code sys_fs_utime(ppu_thread& ppu, vm::cptr<char> path, vm::cptr<CellFsUti
 	{
 		switch (auto error = fs::g_tls_error)
 		{
+		case fs::error::notdir:
+		{
+			return { CELL_ENOTDIR, path};
+		}
 		case fs::error::noent:
 		{
 			return {mp == &g_mp_sys_dev_hdd1 ? sys_fs.warning : sys_fs.error, CELL_ENOENT, path};
 		}
-		default: fmt::throw_exception("unknown error %s", error);
+		default:
+		{
+			if (has_non_directory_components(local_path))
+			{
+				return { CELL_ENOTDIR, path };
+			}
+
+			fmt::throw_exception("unknown error %s", error);
+		}
 		}
 	}
 
diff --git a/rpcs3/Loader/ISO.cpp b/rpcs3/Loader/ISO.cpp
index a80d664174..0ddc3e39d9 100644
--- a/rpcs3/Loader/ISO.cpp
+++ b/rpcs3/Loader/ISO.cpp
@@ -585,10 +585,8 @@ std::unique_ptr<fs::dir_base> iso_device::open_dir(const std::string& path)
 
 	if (!node->metadata.is_directory)
 	{
-		// fs::dir::open -> ::readdir should return ENOTDIR when path is
-		// pointing to a file instead of a folder, which translates to error::unknown.
-		// doing the same here.
-		fs::g_tls_error = fs::error::unknown;
+		// fs::dir::open -> ::readdir should return ENOTDIR when path is pointing to a file instead of a folder.
+		fs::g_tls_error = fs::error::notdir;
 		return nullptr;
 	}