diff --git a/GAMELISTS.md b/GAMELISTS.md
index 7064a27ca3..ac5196be84 100644
--- a/GAMELISTS.md
+++ b/GAMELISTS.md
@@ -75,7 +75,8 @@ Things to be Aware Of
 
 * If a value matches the default for a particular piece of metadata, ES will not write it to the gamelist.xml (for example, if `genre` isn't specified, ES won't write an empty genre tag; if `players` is 1, ES won't write a `players` tag).
 
-* A `game` can actually point to a folder/directory if the the folder has a matching extension.
+* A `game` can actually point to a folder/directory if the the folder has a matching extension. It shows up as a game in ES.
+When launch this, if there is a file with the same name as the folder in that folder, that file will be passed to the command as `%ROM%`. Otherwise, just the directory path is passed.
 
 * `folder` metadata will only be used if a game is found inside of that folder.
 
diff --git a/es-app/src/FileData.cpp b/es-app/src/FileData.cpp
index 1aa4f0f076..5de1d5dd61 100644
--- a/es-app/src/FileData.cpp
+++ b/es-app/src/FileData.cpp
@@ -287,9 +287,17 @@ void FileData::launchGame(Window* window)
 
 	std::string command = mEnvData->mLaunchCommand;
 
-	const std::string rom      = Utils::FileSystem::getEscapedPath(getPath());
-	const std::string basename = Utils::FileSystem::getStem(getPath());
-	const std::string rom_raw  = Utils::FileSystem::getPreferredPath(getPath());
+	std::string path = getPath();
+	if(Utils::FileSystem::isDirectory(path))
+	{
+		const std::string path2 = Utils::FileSystem::resolveRelativePath(Utils::FileSystem::getFileName(path), path, false, true);
+		if(Utils::FileSystem::isRegularFile(path2))
+			path = path2;
+	}
+
+	const std::string rom      = Utils::FileSystem::getEscapedPath(path);
+	const std::string basename = Utils::FileSystem::getStem(path);
+	const std::string rom_raw  = Utils::FileSystem::getPreferredPath(path);
 	const std::string name     = getName();
 
 	command = Utils::String::replace(command, "%ROM%", rom);