diff --git a/.changeset/weak-readers-know.md b/.changeset/weak-readers-know.md
new file mode 100644
index 0000000000..24cf29a5db
--- /dev/null
+++ b/.changeset/weak-readers-know.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-code-coverage': patch
+---
+
+Addresses bug when file path contains multiple directories with the same name.
diff --git a/plugins/code-coverage/src/components/FileExplorer/FileExplorer.test.tsx b/plugins/code-coverage/src/components/FileExplorer/FileExplorer.test.tsx
new file mode 100644
index 0000000000..4163b22ac1
--- /dev/null
+++ b/plugins/code-coverage/src/components/FileExplorer/FileExplorer.test.tsx
@@ -0,0 +1,222 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+import { groupByPath, buildFileStructure } from './FileExplorer';
+
+const dummyFiles = [
+  {
+    filename: 'dir1/file1',
+    files: [],
+    coverage: 1,
+    missing: 1,
+    tracked: 1,
+    path: '',
+  },
+  {
+    filename: 'dir1/file2',
+    files: [],
+    coverage: 1,
+    missing: 1,
+    tracked: 1,
+    path: '',
+  },
+  {
+    filename: 'dir2/file3',
+    files: [],
+    coverage: 1,
+    missing: 1,
+    tracked: 1,
+    path: '',
+  },
+  {
+    filename: 'dir3/dir2/dir1/file4',
+    files: [],
+    coverage: 1,
+    missing: 1,
+    tracked: 1,
+    path: '',
+  },
+  {
+    filename: 'dir3/dir2/dir3/file4',
+    files: [],
+    coverage: 1,
+    missing: 1,
+    tracked: 1,
+    path: '',
+  },
+];
+
+const dummyDataGroupedByPath = {
+  dir1: [
+    {
+      filename: 'dir1/file1',
+      files: [],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+      path: '',
+    },
+    {
+      filename: 'dir1/file2',
+      files: [],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+      path: '',
+    },
+  ],
+  dir2: [
+    {
+      filename: 'dir2/file3',
+      files: [],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+      path: '',
+    },
+  ],
+  dir3: [
+    {
+      filename: 'dir3/dir2/dir1/file4',
+      files: [],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+      path: '',
+    },
+    {
+      filename: 'dir3/dir2/dir3/file4',
+      files: [],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+      path: '',
+    },
+  ],
+};
+
+const coverageTableRow = {
+  files: dummyFiles,
+  coverage: 1,
+  missing: 1,
+  tracked: 1,
+  path: '',
+};
+
+const coverageTableRowResults = {
+  files: [
+    {
+      path: 'dir1',
+      files: [
+        {
+          path: 'file1',
+          files: [],
+          coverage: 1,
+          missing: 1,
+          tracked: 1,
+        },
+        {
+          path: 'file2',
+          files: [],
+          coverage: 1,
+          missing: 1,
+          tracked: 1,
+        },
+      ],
+      coverage: 1,
+      missing: 2,
+      tracked: 2,
+    },
+    {
+      path: 'dir2',
+      files: [
+        {
+          path: 'file3',
+          files: [],
+          coverage: 1,
+          missing: 1,
+          tracked: 1,
+        },
+      ],
+      coverage: 1,
+      missing: 1,
+      tracked: 1,
+    },
+    {
+      path: 'dir3',
+      files: [
+        {
+          path: 'dir2',
+          files: [
+            {
+              path: 'dir1',
+              files: [
+                {
+                  path: 'file4',
+                  files: [],
+                  coverage: 1,
+                  missing: 1,
+                  tracked: 1,
+                },
+              ],
+              coverage: 1,
+              missing: 1,
+              tracked: 1,
+            },
+            {
+              path: 'dir3',
+              files: [
+                {
+                  path: 'file4',
+                  files: [],
+                  coverage: 1,
+                  missing: 1,
+                  tracked: 1,
+                },
+              ],
+              coverage: 1,
+              missing: 1,
+              tracked: 1,
+            },
+          ],
+          coverage: 1,
+          missing: 2,
+          tracked: 2,
+        },
+      ],
+      coverage: 1,
+      missing: 2,
+      tracked: 2,
+    },
+  ],
+  coverage: 1,
+  missing: 1,
+  tracked: 1,
+  path: '',
+};
+
+describe('groupByPath function', () => {
+  it('should group files by their root directory,as per their filename', () => {
+    expect(groupByPath(dummyFiles)).toStrictEqual(dummyDataGroupedByPath);
+  });
+});
+
+describe('buildFileStructure function', () => {
+  it('should group files by their root directory,as per their filename', () => {
+    expect(buildFileStructure(coverageTableRow)).toStrictEqual(
+      coverageTableRowResults,
+    );
+  });
+});
diff --git a/plugins/code-coverage/src/components/FileExplorer/FileExplorer.tsx b/plugins/code-coverage/src/components/FileExplorer/FileExplorer.tsx
index 21052c0793..49379551ad 100644
--- a/plugins/code-coverage/src/components/FileExplorer/FileExplorer.tsx
+++ b/plugins/code-coverage/src/components/FileExplorer/FileExplorer.tsx
@@ -30,7 +30,6 @@ import { useAsync } from 'react-use';
 import { codeCoverageApiRef } from '../../api';
 import { FileEntry } from '../../types';
 import { FileContent } from './FileContent';
-
 import {
   Progress,
   ResponseErrorPanel,
@@ -51,33 +50,46 @@ type CoverageTableRow = {
   tableData?: { id: number };
 };
 
-const buildFileStructure = (row: CoverageTableRow) => {
-  const dataGroupedByPath: FileStructureObject = row.files.reduce(
-    (acc: FileStructureObject, cur: CoverageTableRow) => {
-      let path = cur.filename;
-      if (row.path) {
-        path = path?.split(`${row.path}/`)[1];
-      }
-      const pathArray = path?.split('/');
-
-      if (!pathArray) {
-        return acc;
-      }
+export const groupByPath = (files: CoverageTableRow[]) => {
+  const acc: FileStructureObject = {};
+  files.forEach(file => {
+    const filename = file.filename;
+    if (!file.filename) return;
+    const pathArray = filename?.split('/').filter(el => el !== '');
+    if (pathArray) {
       if (!acc.hasOwnProperty(pathArray[0])) {
         acc[pathArray[0]] = [];
       }
-      acc[pathArray[0]].push(cur);
-      return acc;
-    },
-    {},
-  );
+      acc[pathArray[0]].push(file);
+    }
+  });
+  return acc;
+};
 
+const removeVisitedPathGroup = (
+  files: CoverageTableRow[],
+  pathGroup: string,
+) => {
+  return files.map(file => {
+    return {
+      ...file,
+      filename: file.filename
+        ? file.filename.substring(
+            file.filename?.indexOf(pathGroup) + pathGroup.length + 1,
+          )
+        : file.filename,
+    };
+  });
+};
+
+export const buildFileStructure = (row: CoverageTableRow) => {
+  const dataGroupedByPath: FileStructureObject = groupByPath(row.files);
   row.files = Object.keys(dataGroupedByPath).map(pathGroup => {
     return buildFileStructure({
       path: pathGroup,
       files: dataGroupedByPath.hasOwnProperty('files')
-        ? dataGroupedByPath.files
-        : dataGroupedByPath[pathGroup],
+        ? removeVisitedPathGroup(dataGroupedByPath.files, pathGroup)
+        : removeVisitedPathGroup(dataGroupedByPath[pathGroup], pathGroup),
       coverage:
         dataGroupedByPath[pathGroup].reduce(
           (acc: number, cur: CoverageTableRow) => acc + cur.coverage,