diff --git a/source/dub/dub.d b/source/dub/dub.d
index a9d5c51..849538d 100644
--- a/source/dub/dub.d
+++ b/source/dub/dub.d
@@ -581,6 +581,13 @@
 		if (!placement.existsFile())
 			mkdirRecurse(placement.toNativeString());
 		Path dstpath = placement ~ (packageId ~ "-" ~ clean_package_version);
+		if (!dstpath.existsFile())
+			mkdirRecurse(dstpath.toNativeString());
+
+		// Support libraries typically used with git submodules like ae.
+		// Such libraries need to have ".." as import path but this can create
+		// import path leakage.
+		dstpath = dstpath ~ packageId;
 
 		auto lock = lockFile(dstpath.toNativeString() ~ ".lock", 30.seconds); // possibly wait for other dub instance
 		if (dstpath.existsFile())
diff --git a/source/dub/packagemanager.d b/source/dub/packagemanager.d
index 08331b2..aa5f921 100644
--- a/source/dub/packagemanager.d
+++ b/source/dub/packagemanager.d
@@ -203,9 +203,19 @@
 	bool isManagedPackage(Package pack)
 	const {
 		auto ppath = pack.basePackage.path;
+		return isManagedPath(ppath);
+	}
+
+	/** Determines if a specifc path is within a DUB managed package folder.
+
+		By default, managed folders are "~/.dub/packages" and
+		"/var/lib/dub/packages".
+	*/
+	bool isManagedPath(Path path)
+	const {
 		foreach (rep; m_repositories) {
 			auto rpath = rep.packagePath;
-			if (ppath.startsWith(rpath))
+			if (path.startsWith(rpath))
 				return true;
 		}
 		return false;
@@ -532,8 +542,20 @@
 				logDebug("iterating dir %s", path.toNativeString());
 				try foreach( pdir; iterateDirectory(path) ){
 					logDebug("iterating dir %s entry %s", path.toNativeString(), pdir.name);
-					if( !pdir.isDirectory ) continue;
+					if (!pdir.isDirectory) continue;
+
 					auto pack_path = path ~ (pdir.name ~ "/");
+
+					if (isManagedPath(path)) {
+						// Search for a single directory within this directory which happen to be a prefix of pdir
+						// This is to support new folder structure installed over the ancient one.
+						foreach (subdir; iterateDirectory(path ~ (pdir.name ~ "/")))
+							if (subdir.isDirectory && pdir.name.startsWith(subdir.name)) {// eg: package vibe-d will be in "vibe-d-x.y.z/vibe-d"
+								pack_path ~= subdir.name ~ "/";
+								break;
+							}
+					}
+
 					auto packageFile = Package.findPackageFile(pack_path);
 					if (packageFile.empty) continue;
 					Package p;
diff --git a/test/issue502-root-import/dub.json b/test/issue502-root-import/dub.json
new file mode 100644
index 0000000..cdd4b0b
--- /dev/null
+++ b/test/issue502-root-import/dub.json
@@ -0,0 +1,7 @@
+{
+    "name": "issue502-root-import",
+    "dependencies":
+    {
+        "gitcompatibledubpackage": "~>1.0"
+    }
+}
\ No newline at end of file
diff --git a/test/issue502-root-import/source/app.d b/test/issue502-root-import/source/app.d
new file mode 100644
index 0000000..9241919
--- /dev/null
+++ b/test/issue502-root-import/source/app.d
@@ -0,0 +1,10 @@
+import gitcompatibledubpackage.subdir.file;
+
+void main(string[] args)
+{
+}
+
+unittest
+{
+    assert(!hasTheWorldExploded());
+}
\ No newline at end of file