diff --git a/packages/nexrender-action-decompress/index.js b/packages/nexrender-action-decompress/index.js
index d2b6f8ab..46ac85dd 100644
--- a/packages/nexrender-action-decompress/index.js
+++ b/packages/nexrender-action-decompress/index.js
@@ -13,7 +13,25 @@ const decompress = (job, settings, asset, action) => {
     switch (action.format) {
         case 'zip':
             const zip = new AdmZip(asset.dest);
-            zip.extractAllTo(job.workpath, action.overwrite || false);
+            const entries = zip.getEntries();
+
+            // Check if zip has a single root folder
+            const rootFolders = new Set(entries.map(entry => entry.entryName.split('/')[0]));
+            const hasSingleRootFolder = rootFolders.size === 1 && entries.every(entry => entry.entryName.startsWith([...rootFolders][0] + '/'));
+
+            if (hasSingleRootFolder) {
+                // Extract all files, removing the root folder from paths
+                const rootFolder = [...rootFolders][0];
+                entries.forEach(entry => {
+                    if (!entry.isDirectory) {
+                        const relativePath = entry.entryName.substring(rootFolder.length + 1);
+                        zip.extractEntryTo(entry.entryName, job.workpath, false, true, false, relativePath);
+                    }
+                });
+            } else {
+                // Default behavior - extract all files
+                zip.extractAllTo(job.workpath, action.overwrite || false);
+            }
             break;
     }
 
@@ -23,7 +41,6 @@ const decompress = (job, settings, asset, action) => {
     }
 
     return Promise.resolve();
-
 }
 
 module.exports = (job, settings, action, type) => {
diff --git a/packages/nexrender-action-decompress/test.js b/packages/nexrender-action-decompress/test.js
index 50e0c43e..ea77ada5 100644
--- a/packages/nexrender-action-decompress/test.js
+++ b/packages/nexrender-action-decompress/test.js
@@ -27,6 +27,11 @@ describe('actions/decompress', function() {
         zip2.writeZip(path.join(workpath, 'asset.zip'));
 
         fs.writeFileSync(path.join(workpath, 'non-archive.jpg'), 'hello there 4');
+
+        // create "asset with root folder" zip file
+        const zip3 = new AdmZip();
+        zip3.addFile("root-folder/nested.jpg", Buffer.from("hello there 5"));
+        zip3.writeZip(path.join(workpath, 'asset-with-root.zip'));
     });
 
     // Cleanup after tests
@@ -39,6 +44,8 @@ describe('actions/decompress', function() {
         fs.unlinkSync(path.join(workpath, 'asset.jpg'));
         fs.rmdirSync(path.join(workpath, '(Footage)'));
         fs.unlinkSync(path.join(workpath, 'non-archive.jpg'));
+        fs.unlinkSync(path.join(workpath, 'asset-with-root.zip'));
+        fs.unlinkSync(path.join(workpath, 'nested.jpg'));
 
         // Remove test workpath directory
         fs.rmdirSync(workpath);
@@ -110,4 +117,65 @@ describe('actions/decompress', function() {
             })
             .catch(done);
     });
+
+    it('should handle zip files with a single root folder', function(done) {
+        const job = {
+            workpath: workpath,
+            template: {
+                dest: path.join(workpath, 'asset-with-root.zip'),
+                decompressed: 'nested.jpg',
+            },
+            assets: []
+        };
+
+        decompressAction(job, {}, { format: 'zip' }, 'prerender')
+            .then(() => {
+                // ensure file is extracted from nested folder
+                assert(fs.existsSync(path.join(workpath, 'nested.jpg')));
+                assert.strictEqual(fs.readFileSync(path.join(workpath, 'nested.jpg'), 'utf8'), 'hello there 5');
+                assert.strictEqual(job.template.dest, path.join(workpath, 'nested.jpg'));
+                done();
+            })
+            .catch(done);
+    });
+
+    it('should automatically flatten zip files with a single root folder', function(done) {
+        // Create a zip with a single root folder structure
+        const zipWithRoot = new AdmZip();
+        zipWithRoot.addFile("root-folder/template2.aep", Buffer.from("nested template"));
+        zipWithRoot.addFile("root-folder/assets/image.jpg", Buffer.from("nested image"));
+        zipWithRoot.writeZip(path.join(workpath, 'nested-structure.zip'));
+
+        const job = {
+            workpath: workpath,
+            template: {
+                dest: path.join(workpath, 'nested-structure.zip'),
+                decompressed: 'template2.aep',
+            },
+            assets: []
+        };
+
+        decompressAction(job, {}, { format: 'zip' }, 'prerender')
+            .then(() => {
+                // Files should be extracted without the root-folder prefix
+                assert(fs.existsSync(path.join(workpath, 'template2.aep')));
+                assert(fs.existsSync(path.join(workpath, 'assets', 'image.jpg')));
+
+                // Verify content
+                assert.strictEqual(fs.readFileSync(path.join(workpath, 'template2.aep'), 'utf8'), 'nested template');
+                assert.strictEqual(fs.readFileSync(path.join(workpath, 'assets', 'image.jpg'), 'utf8'), 'nested image');
+
+                // Verify the root folder itself is not created
+                assert(!fs.existsSync(path.join(workpath, 'root-folder')));
+
+                // Cleanup the additional test files
+                fs.unlinkSync(path.join(workpath, 'template2.aep'));
+                fs.unlinkSync(path.join(workpath, 'assets', 'image.jpg'));
+                fs.rmdirSync(path.join(workpath, 'assets'));
+                fs.unlinkSync(path.join(workpath, 'nested-structure.zip'));
+
+                done();
+            })
+            .catch(done);
+    });
 });