diff --git a/cmd/hauler/cli/store/add.go b/cmd/hauler/cli/store/add.go
index cef1994..faf3134 100644
--- a/cmd/hauler/cli/store/add.go
+++ b/cmd/hauler/cli/store/add.go
@@ -520,8 +520,7 @@ func storeChart(ctx context.Context, s *store.Layout, cfg v1.Chart, opts *flags.
 			var err error
 
 			if strings.HasPrefix(dep.Repository, "file://") {
-				depPath := strings.TrimPrefix(dep.Repository, "file://")
-				subchartPath := filepath.Join(chartPath, depPath)
+				subchartPath := filepath.Join(chartPath, "charts", dep.Name)
 
 				depCfg = v1.Chart{Name: subchartPath, RepoURL: "", Version: ""}
 				depOpts.ChartOpts.RepoURL = ""
diff --git a/testdata/chart-with-file-dependency-chart-1.0.0.tgz b/testdata/chart-with-file-dependency-chart-1.0.0.tgz
new file mode 100644
index 0000000..30d96ee
Binary files /dev/null and b/testdata/chart-with-file-dependency-chart-1.0.0.tgz differ
diff --git a/testdata/hauler-manifest-pipeline.yaml b/testdata/hauler-manifest-pipeline.yaml
index 6188541..dc1051d 100755
--- a/testdata/hauler-manifest-pipeline.yaml
+++ b/testdata/hauler-manifest-pipeline.yaml
@@ -34,6 +34,9 @@ spec:
       version: 1.0.4
     - name: rancher-cluster-templates-0.5.2.tgz
       repoURL: testdata
+    - name: chart-with-file-dependency-chart-1.0.0.tgz
+      repoURL: testdata
+      add-dependencies: true
 ---
 apiVersion: content.hauler.cattle.io/v1
 kind: Files