diff --git a/README.md b/README.md
index b102855..6801a8e 100644
--- a/README.md
+++ b/README.md
@@ -54,6 +54,13 @@ You can optionally customize the behavior by passing an extra options object:
 var dir = requireDir('./path/to/dir', {recurse: true});
 ```
 
+## Directory as Modules
+
+As per [the node documentation](https://nodejs.org/api/modules.html#modules_folders_as_modules)
+directories that resolve to a module will be treated as such when recursion is **not** enabled.
+For example, if you have a folder called 'foo' with 'index.js' inside, requireDir will return the
+contents of index.js on its object.
+
 ## Options
 
 `recurse`: Whether to recursively `require()` subdirectories too.
diff --git a/index.js b/index.js
index d923b98..9561e80 100644
--- a/index.js
+++ b/index.js
@@ -79,6 +79,17 @@ module.exports = function requireDir(dir, opts) {
                     if (opts.duplicates) {
                         map[file] = map[base];
                     }
+                } else {
+                    // If we're not recursing through the files then we check to see
+                    // if the folder is a valid node module
+
+                    // Checks to see if there is an index file and returns the extension
+                    var modulePath = getModulePath(path);
+
+                    if (modulePath && !opts.recurse) {
+                        filesMinusDirs[file + Path.extname(modulePath)] = modulePath;
+                    }
+
                 }
             } else {
                 filesMinusDirs[file] = path;
@@ -100,6 +111,7 @@ module.exports = function requireDir(dir, opts) {
 
             // if a file exists with this extension, we'll require() it:
             var file = base + ext;
+
             var path = filesMinusDirs[file];
 
             if (path) {
@@ -134,6 +146,14 @@ module.exports = function requireDir(dir, opts) {
     return map;
 };
 
+function getModulePath(path) {
+    try {
+        return require.resolve(path);
+    } catch (err) {
+        return null;
+    }
+}
+
 function toCamelCase(str) {
     return str.replace(/[_-][a-z]/ig, function (s) {
         return s.substring(1).toUpperCase();
diff --git a/test/directoryAsModule.js b/test/directoryAsModule.js
new file mode 100644
index 0000000..afb0fc9
--- /dev/null
+++ b/test/directoryAsModule.js
@@ -0,0 +1,18 @@
+var assert = require('assert');
+var requireDir = require('..');
+
+assert.deepEqual(requireDir('./directoryAsModule'), {
+    a: 'a',
+    b: 'b'
+});
+
+assert.deepEqual(requireDir('./directoryAsModule', {recurse: true}), {
+    a: 'a',
+    b: {
+        "index":"b",
+        "anotherfile": "b"
+    },
+    c: {}
+});
+
+console.log('Directory as module tests passed')
diff --git a/test/directoryAsModule/a.js b/test/directoryAsModule/a.js
new file mode 100644
index 0000000..2e7700b
--- /dev/null
+++ b/test/directoryAsModule/a.js
@@ -0,0 +1 @@
+module.exports = 'a';
diff --git a/test/directoryAsModule/b/anotherfile.js b/test/directoryAsModule/b/anotherfile.js
new file mode 100644
index 0000000..3df3888
--- /dev/null
+++ b/test/directoryAsModule/b/anotherfile.js
@@ -0,0 +1 @@
+module.exports = 'b';
diff --git a/test/directoryAsModule/b/index.js b/test/directoryAsModule/b/index.js
new file mode 100644
index 0000000..b855bec
--- /dev/null
+++ b/test/directoryAsModule/b/index.js
@@ -0,0 +1 @@
+module.exports = 'b'
diff --git a/test/directoryAsModule/c/hello.txt b/test/directoryAsModule/c/hello.txt
new file mode 100644
index 0000000..cbf86dc
--- /dev/null
+++ b/test/directoryAsModule/c/hello.txt
@@ -0,0 +1 @@
+Not a module