diff --git a/Modules/System Tests/Azure Blob Services API/src/ABSBlobClientTest.Codeunit.al b/Modules/System Tests/Azure Blob Services API/src/ABSBlobClientTest.Codeunit.al
index e38dc58202..6343d1d0c8 100644
--- a/Modules/System Tests/Azure Blob Services API/src/ABSBlobClientTest.Codeunit.al	
+++ b/Modules/System Tests/Azure Blob Services API/src/ABSBlobClientTest.Codeunit.al	
@@ -18,7 +18,7 @@ codeunit 132920 "ABS Blob Client Test"
         Response: Codeunit "ABS Operation Response";
         ContainerName, BlobName, BlobContent, NewBlobContent : Text;
     begin
-        // [Scenarion] Given a storage account and a container, PutBlobBlockBlob operation succeeds and GetBlobAsText returns the content 
+        // [Scenario] Given a storage account and a container, PutBlobBlockBlob operation succeeds and GetBlobAsText returns the content 
 
         SharedKeyAuthorization := StorageServiceAuthorization.CreateSharedKey(AzuriteTestLibrary.GetAccessKey());
 
@@ -53,7 +53,7 @@ codeunit 132920 "ABS Blob Client Test"
         Response: Codeunit "ABS Operation Response";
         ContainerName, FirstBlobName, SecondBlobName, BlobContent : Text;
     begin
-        // [Scenarion] Given a storage account and a container with BLOBs, ListBlobs operation succeeds. 
+        // [Scenario] Given a storage account and a container with BLOBs, ListBlobs operation succeeds. 
 
         SharedKeyAuthorization := StorageServiceAuthorization.CreateSharedKey(AzuriteTestLibrary.GetAccessKey());
 
@@ -101,7 +101,7 @@ codeunit 132920 "ABS Blob Client Test"
         BlobList: Dictionary of [Text, XmlNode];
         Blobs: List of [Text];
     begin
-        // [Scenarion] Given a storage account and a container with BLOBs, ListBlobs operation succeeds. 
+        // [Scenario] Given a storage account and a container with BLOBs, ListBlobs operation succeeds. 
 
         SharedKeyAuthorization := StorageServiceAuthorization.CreateSharedKey(AzuriteTestLibrary.GetAccessKey());
 
@@ -200,7 +200,7 @@ codeunit 132920 "ABS Blob Client Test"
         ABSContainerContent: Record "ABS Container Content";
         ContainerName: Text;
     begin
-        // [Scenarion] When listing blobs, the levels, parent directories etc. are set correctly
+        // [Scenario] When listing blobs, the levels, parent directories etc. are set correctly
 
         SharedKeyAuthorization := StorageServiceAuthorization.CreateSharedKey(AzuriteTestLibrary.GetAccessKey());
 
@@ -538,7 +538,7 @@ codeunit 132920 "ABS Blob Client Test"
         LeaseId: Guid;
         ProposedLeaseId: Guid;
     begin
-        // [Scenarion] Given a storage account and a container, PutBlobBlockBlob operation succeeds and subsequent lease-operations
+        // [Scenario] Given a storage account and a container, PutBlobBlockBlob operation succeeds and subsequent lease-operations
         // (1) create a lease, (2) renew a lease, [(3) change a lease], (4) break a lease and (5) release the lease
 
         SharedKeyAuthorization := StorageServiceAuthorization.CreateSharedKey(AzuriteTestLibrary.GetAccessKey());
@@ -665,6 +665,68 @@ codeunit 132920 "ABS Blob Client Test"
         ABSContainerClient.DeleteContainer(ContainerName);
     end;
 
+    [Test]
+    procedure ParseResponseWithHierarchicalBlobName()
+    var
+        ABSContainerContent: Record "ABS Container Content";
+        ABSHelperLibrary: Codeunit "ABS Helper Library";
+        NodeList: XmlNodeList;
+        NextMarker: Text;
+    begin
+        // [SCENARIO] Parse the BLOB storage API response listing BLOBs in a container without the hierarchical namespace
+
+        // [GIVEN] Prepare an XML response from the BLOB Storage API, listing all BLOBs in a container.
+        // [GIVEN] Container does not have hierarchical namespace and contains a single BLOB with the name like "folder/blob"
+        NodeList := ABSHelperLibrary.CreateBlobNodeListFromResponse(ABSTestLibrary.GetServiceResponseBlobWithHierarchicalName(), NextMarker);
+
+        // [WHEN] Invoke BlobNodeListToTempRecord
+        ABSHelperLibrary.BlobNodeListToTempRecord(NodeList, ABSContainerContent);
+
+        // [THEN] "ABS Container Content" contains one record "folder" and one record "blob"
+        Assert.RecordCount(ABSContainerContent, 2);
+
+        ABSContainerContent.SetRange(Name, ABSTestLibrary.GetSampleResponseRootDirName());
+        Assert.RecordCount(ABSContainerContent, 1);
+
+        ABSContainerContent.SetRange(Name, ABSTestLibrary.GetSampleResponseFileName());
+        Assert.RecordCount(ABSContainerContent, 1);
+    end;
+
+    [Test]
+    procedure ParseResponseFromStorageHierarachicalNamespace()
+    var
+        ABSContainerContent: Record "ABS Container Content";
+        ABSHelperLibrary: Codeunit "ABS Helper Library";
+        NodeList: XmlNodeList;
+        NextMarker: Text;
+    begin
+        // [SCENARIO] Parse the BLOB storage API response listing BLOBs in a container with the hierarchical namespace enabled
+
+        // [GIVEN] Prepare an XML response from the BLOB Storage API, listing all BLOBs in a container.
+        // [GIVEN] Container has the hierarchical namespace enabled, and contains a root folder named "rootdir".
+        // [GIVEN] There is a subdirectory "subdir" in the root, and one blob named "blob" in the subdirectory.
+        NodeList := ABSHelperLibrary.CreateBlobNodeListFromResponse(ABSTestLibrary.GetServiceResponseHierarchicalNamespace(), NextMarker);
+
+        // [WHEN] Invoke BlobNodeListToTempRecord
+        ABSHelperLibrary.BlobNodeListToTempRecord(NodeList, ABSContainerContent);
+
+        // [THEN] "ABS Container Content" contains two records with resource type "folder" and one record with resource type = "blob"
+        Assert.RecordCount(ABSContainerContent, 3);
+
+        VerifyContainerContentType(ABSContainerContent, CopyStr(ABSTestLibrary.GetSampleResponseRootDirName(), 1, MaxStrLen(ABSContainerContent.Name)), Enum::"ABS Blob Resource Type"::Directory);
+        VerifyContainerContentType(ABSContainerContent, CopyStr(ABSTestLibrary.GetSampleResponseSubdirName(), 1, MaxStrLen(ABSContainerContent.Name)), Enum::"ABS Blob Resource Type"::Directory);
+        VerifyContainerContentType(ABSContainerContent, CopyStr(ABSTestLibrary.GetSampleResponseFileName(), 1, MaxStrLen(ABSContainerContent.Name)), Enum::"ABS Blob Resource Type"::File);
+    end;
+
+    local procedure VerifyContainerContentType(var ABSContainerContent: Record "ABS Container Content"; BlobName: Text[2048]; ExpectedResourceType: Enum "ABS Blob Resource Type")
+    var
+        IncorrectBlobPropertyErr: Label 'BLOB property is assigned incorrectly';
+    begin
+        ABSContainerContent.SetRange(Name, BlobName);
+        ABSContainerContent.FindFirst();
+        Assert.AreEqual(ExpectedResourceType, ABSContainerContent."Resource Type", IncorrectBlobPropertyErr);
+    end;
+
     local procedure GetBlobTagsFromABSContainerBlobList(BlobName: Text; BlobList: Dictionary of [Text, XmlNode]): Dictionary of [Text, Text]
     var
         BlobNode: XmlNode;
@@ -715,4 +777,4 @@ codeunit 132920 "ABS Blob Client Test"
         ABSTestLibrary: Codeunit "ABS Test Library";
         AzuriteTestLibrary: Codeunit "Azurite Test Library";
         SharedKeyAuthorization: Interface "Storage Service Authorization";
-}
\ No newline at end of file
+}
diff --git a/Modules/System Tests/Azure Blob Services API/src/ABSTestLibrary.Codeunit.al b/Modules/System Tests/Azure Blob Services API/src/ABSTestLibrary.Codeunit.al
index d55eaf8fc0..48a903285a 100644
--- a/Modules/System Tests/Azure Blob Services API/src/ABSTestLibrary.Codeunit.al	
+++ b/Modules/System Tests/Azure Blob Services API/src/ABSTestLibrary.Codeunit.al	
@@ -156,6 +156,137 @@ codeunit 132921 "ABS Test Library"
         exit(Document);
     end;
 
+    procedure GetServiceResponseBlobWithHierarchicalName(): Text;
+    var
+        Builder: TextBuilder;
+    begin
+        Builder.Append('<?xml version="1.0" encoding="utf-8"?>');
+        Builder.Append('<EnumerationResults ContainerName="https://myaccount.blob.core.windows.net/mycontainer">');
+        Builder.Append('<Blobs>');
+        Builder.Append('<Blob>');
+        Builder.Append('<Name>rootdir/filename.txt</Name>');
+        Builder.Append('<Url>https://myaccount.blob.core.windows.net/mycontainer/rootdir/filename.txt</Url>');
+        Builder.Append('<Properties>');
+        Builder.Append('<Last-Modified>Sat, 23 Sep 2023 21:32:55 GMT</Last-Modified>');
+        Builder.Append('<Etag>0x8DBBC7CA6253661</Etag>');
+        Builder.Append('<Content-Length>1</Content-Length>');
+        Builder.Append('<Content-Type>text/plain</Content-Type>');
+        Builder.Append('<Content-Encoding />');
+        Builder.Append('<Content-Language />');
+        Builder.Append('<Content-MD5>dpT0pmMW5TyM3Z2ZVL1hHQ==</Content-MD5>');
+        Builder.Append('<Cache-Control />');
+        Builder.Append('<BlobType>BlockBlob</BlobType>');
+        Builder.Append('<LeaseStatus>unlocked</LeaseStatus>');
+        Builder.Append('</Properties>');
+        Builder.Append('</Blob>');
+        Builder.Append('</Blobs>');
+        Builder.Append('<NextMarker />');
+        Builder.Append('</EnumerationResults>');
+
+        exit(Builder.ToText());
+    end;
+
+    procedure GetServiceResponseHierarchicalNamespace(): Text;
+    var
+        Builder: TextBuilder;
+    begin
+        Builder.Append('<?xml version="1.0" encoding="utf-8"?>');
+        Builder.Append('<EnumerationResults ServiceEndpoint="https://myaccount.blob.core.windows.net/" ContainerName="mycontainer">');
+        Builder.Append('<Blobs>');
+        Builder.Append('<Blob>');
+        Builder.Append('<Name>rootdir</Name>');
+        Builder.Append('<Properties>');
+        Builder.Append('<Creation-Time>Sat, 23 Sep 2023 21:04:18 GMT</Creation-Time>');
+        Builder.Append('<Last-Modified>Sat, 23 Sep 2023 21:04:18 GMT</Last-Modified>');
+        Builder.Append('<Etag>0x8DBBC78A6E95AF7</Etag>');
+        Builder.Append('<ResourceType>directory</ResourceType>');
+        Builder.Append('<Content-Length>0</Content-Length>');
+        Builder.Append('<Content-Type>application/octet-stream</Content-Type>');
+        Builder.Append('<Content-Encoding />');
+        Builder.Append('<Content-Language />');
+        Builder.Append('<Content-CRC64>AAAAAAAAAAA=</Content-CRC64>');
+        Builder.Append('<Content-MD5 />');
+        Builder.Append('<Cache-Control />');
+        Builder.Append('<Content-Disposition />');
+        Builder.Append('<BlobType>BlockBlob</BlobType>');
+        Builder.Append('<AccessTier>Hot</AccessTier>');
+        Builder.Append('<AccessTierInferred>true</AccessTierInferred>');
+        Builder.Append('<LeaseStatus>unlocked</LeaseStatus>');
+        Builder.Append('<LeaseState>available</LeaseState>');
+        Builder.Append('<ServerEncrypted>true</ServerEncrypted>');
+        Builder.Append('</Properties>');
+        Builder.Append('<OrMetadata />');
+        Builder.Append('</Blob>');
+        Builder.Append('<Blob>');
+        Builder.Append('<Name>rootdir/subdirectory</Name>');
+        Builder.Append('<Properties>');
+        Builder.Append('<Creation-Time>Tue, 26 Sep 2023 21:47:48 GMT</Creation-Time>');
+        Builder.Append('<Last-Modified>Tue, 26 Sep 2023 21:47:48 GMT</Last-Modified>');
+        Builder.Append('<Etag>0x8DBBEDA39F9C41D</Etag>');
+        Builder.Append('<ResourceType>directory</ResourceType>');
+        Builder.Append('<Content-Length>0</Content-Length>');
+        Builder.Append('<Content-Type>application/octet-stream</Content-Type>');
+        Builder.Append('<Content-Encoding />');
+        Builder.Append('<Content-Language />');
+        Builder.Append('<Content-CRC64>AAAAAAAAAAA=</Content-CRC64>');
+        Builder.Append('<Content-MD5 />');
+        Builder.Append('<Cache-Control />');
+        Builder.Append('<Content-Disposition />');
+        Builder.Append('<BlobType>BlockBlob</BlobType>');
+        Builder.Append('<AccessTier>Hot</AccessTier>');
+        Builder.Append('<AccessTierInferred>true</AccessTierInferred>');
+        Builder.Append('<LeaseStatus>unlocked</LeaseStatus>');
+        Builder.Append('<LeaseState>available</LeaseState>');
+        Builder.Append('<ServerEncrypted>true</ServerEncrypted>');
+        Builder.Append('</Properties>');
+        Builder.Append('<OrMetadata />');
+        Builder.Append('</Blob>');
+        Builder.Append('<Blob>');
+        Builder.Append('<Name>rootdir/subdirectory/filename.txt</Name>');
+        Builder.Append('<Properties>');
+        Builder.Append('<Creation-Time>Wed, 27 Sep 2023 20:24:18 GMT</Creation-Time>');
+        Builder.Append('<Last-Modified>Wed, 27 Sep 2023 20:24:18 GMT</Last-Modified>');
+        Builder.Append('<Etag>0x8DBBF97BA4A9839</Etag>');
+        Builder.Append('<ResourceType>file</ResourceType>');
+        Builder.Append('<Content-Length>1</Content-Length>');
+        Builder.Append('<Content-Type>text/plain</Content-Type>');
+        Builder.Append('<Content-Encoding />');
+        Builder.Append('<Content-Language />');
+        Builder.Append('<Content-CRC64 />');
+        Builder.Append('<Content-MD5>dpT0pmMW5TyM3Z2ZVL1hHQ==</Content-MD5>');
+        Builder.Append('<Cache-Control />');
+        Builder.Append('<Content-Disposition />');
+        Builder.Append('<BlobType>BlockBlob</BlobType>');
+        Builder.Append('<AccessTier>Hot</AccessTier>');
+        Builder.Append('<AccessTierInferred>true</AccessTierInferred>');
+        Builder.Append('<LeaseStatus>unlocked</LeaseStatus>');
+        Builder.Append('<LeaseState>available</LeaseState>');
+        Builder.Append('<ServerEncrypted>true</ServerEncrypted>');
+        Builder.Append('</Properties>');
+        Builder.Append('<OrMetadata />');
+        Builder.Append('</Blob>');
+        Builder.Append('</Blobs>');
+        Builder.Append('<NextMarker />');
+        Builder.Append('</EnumerationResults>');
+
+        exit(Builder.ToText());
+    end;
+
+    procedure GetSampleResponseRootDirName(): Text
+    begin
+        exit('rootdir');
+    end;
+
+    procedure GetSampleResponseSubdirName(): Text
+    begin
+        exit('subdirectory');
+    end;
+
+    procedure GetSampleResponseFileName(): Text
+    begin
+        exit('filename.txt');
+    end;
+
     local procedure GetNewLineCharacter(): Text
     var
         LF: Char;
diff --git a/Modules/System/Azure Blob Services API/src/Helper/ABSContainerContentHelper.Codeunit.al b/Modules/System/Azure Blob Services API/src/Helper/ABSContainerContentHelper.Codeunit.al
index 4ed0928477..0b85302a8d 100644
--- a/Modules/System/Azure Blob Services API/src/Helper/ABSContainerContentHelper.Codeunit.al	
+++ b/Modules/System/Azure Blob Services API/src/Helper/ABSContainerContentHelper.Codeunit.al	
@@ -25,15 +25,19 @@ codeunit 9054 "ABS Container Content Helper"
         Node.SelectSingleNode('.//Properties', PropertiesNode);
         ChildNodes := PropertiesNode.AsXmlElement().GetChildNodes();
 
-        AddNewEntry(ABSContainerContent, NameFromXml, OuterXml, ChildNodes, EntryNo);
+        AddNewEntry(ABSContainerContent, NameFromXml, OuterXml, ChildNodes, EntryNo, GetBlobResourceType(Node));
     end;
 
     [NonDebuggable]
-    procedure AddNewEntry(var ABSContainerContent: Record "ABS Container Content"; NameFromXml: Text; OuterXml: Text; ChildNodes: XmlNodeList; var EntryNo: Integer)
+    procedure AddNewEntry(
+        var ABSContainerContent: Record "ABS Container Content"; NameFromXml: Text; OuterXml: Text; ChildNodes: XmlNodeList; var EntryNo: Integer; ResourceType: Enum "ABS Blob Resource Type")
     var
         OutStream: OutStream;
     begin
-        AddParentEntries(NameFromXml, ABSContainerContent, EntryNo);
+        if ResourceType = ResourceType::Directory then
+            ParentEntryFullNameList.Add(NameFromXml)
+        else
+            AddParentEntries(NameFromXml, ABSContainerContent, EntryNo);
 
         ABSContainerContent.Init();
         ABSContainerContent.Level := GetLevel(NameFromXml);
@@ -199,6 +203,22 @@ codeunit 9054 "ABS Container Content Helper"
         Node := Document.AsXmlNode();
     end;
 
+    local procedure GetBlobResourceType(BlobXmlNode: XmlNode): Enum "ABS Blob Resource Type"
+    var
+        ResourceTypeNode: XmlNode;
+    begin
+        if not BlobXmlNode.SelectSingleNode('.//ResourceType', ResourceTypeNode) then
+            exit(Enum::"ABS Blob Resource Type"::File);
+
+        case ResourceTypeNode.AsXmlElement().InnerText().ToLower() of
+            Format(Enum::"ABS Blob Resource Type"::File).ToLower():
+                exit(Enum::"ABS Blob Resource Type"::File);
+
+            Format(Enum::"ABS Blob Resource Type"::Directory).ToLower():
+                exit(Enum::"ABS Blob Resource Type"::Directory)
+        end;
+    end;
+
     var
         ParentEntryFullNameList: List of [Text];
 }
\ No newline at end of file