diff --git a/src/csync/csync_exclude.cpp b/src/csync/csync_exclude.cpp
index b92cfa08e43ca..e8c52b45ddc8a 100644
--- a/src/csync/csync_exclude.cpp
+++ b/src/csync/csync_exclude.cpp
@@ -470,8 +470,9 @@ CSYNC_EXCLUDE_TYPE ExcludedFiles::traversalPatternMatch(const QString &path, Ite
             continue;
         }
 
-        if (!m.hasMatch())
-            return CSYNC_NOT_EXCLUDED;
+        if (!m.hasMatch()) {
+            continue;
+        }
         if (m.capturedStart(QStringLiteral("exclude")) != -1) {
             return CSYNC_FILE_EXCLUDE_LIST;
         } else if (m.capturedStart(QStringLiteral("excluderemove")) != -1) {
@@ -494,12 +495,13 @@ CSYNC_EXCLUDE_TYPE ExcludedFiles::traversalPatternMatch(const QString &path, Ite
             continue;
         }
 
-        if (m.hasMatch()) {
-            if (m.capturedStart(QStringLiteral("exclude")) != -1) {
-                return CSYNC_FILE_EXCLUDE_LIST;
-            } else if (m.capturedStart(QStringLiteral("excluderemove")) != -1) {
-                return CSYNC_FILE_EXCLUDE_AND_REMOVE;
-            }
+        if (!m.hasMatch()) {
+            continue;
+        }
+        if (m.capturedStart(QStringLiteral("exclude")) != -1) {
+            return CSYNC_FILE_EXCLUDE_LIST;
+        } else if (m.capturedStart(QStringLiteral("excluderemove")) != -1) {
+            return CSYNC_FILE_EXCLUDE_AND_REMOVE;
         }
     }
     return CSYNC_NOT_EXCLUDED;
@@ -533,12 +535,13 @@ CSYNC_EXCLUDE_TYPE ExcludedFiles::fullPatternMatch(const QString &p, ItemType fi
             continue;
         }
 
-        if (m.hasMatch()) {
-            if (m.capturedStart(QStringLiteral("exclude")) != -1) {
-                return CSYNC_FILE_EXCLUDE_LIST;
-            } else if (m.capturedStart(QStringLiteral("excluderemove")) != -1) {
-                return CSYNC_FILE_EXCLUDE_AND_REMOVE;
-            }
+        if (!m.hasMatch()) {
+            continue;
+        }
+        if (m.capturedStart(QStringLiteral("exclude")) != -1) {
+            return CSYNC_FILE_EXCLUDE_LIST;
+        } else if (m.capturedStart(QStringLiteral("excluderemove")) != -1) {
+            return CSYNC_FILE_EXCLUDE_AND_REMOVE;
         }
     }
 
diff --git a/test/testexcludedfiles.cpp b/test/testexcludedfiles.cpp
index 988b4f8f548ab..504db5fc4d9de 100644
--- a/test/testexcludedfiles.cpp
+++ b/test/testexcludedfiles.cpp
@@ -11,12 +11,16 @@
 #include <QtTest>
 #include <QTemporaryDir>
 
+#include "common/utility.h"
+#include "csync.h"
 #include "csync_exclude.h"
 #include "logger.h"
 
 using namespace OCC;
 
-#define EXCLUDE_LIST_FILE SOURCEDIR "/../../sync-exclude.lst"
+using namespace Qt::StringLiterals;
+
+constexpr auto EXCLUDE_LIST_FILE = SOURCEDIR "/../../sync-exclude.lst";
 
 // The tests were converted from the old CMocka framework, that's why there is a global
 static QScopedPointer<ExcludedFiles> excludedFiles;
@@ -397,8 +401,8 @@ private slots:
         QCOMPARE(check_file_traversal("/excludepath/withsubdir"), CSYNC_FILE_EXCLUDE_LIST);
         QCOMPARE(check_dir_traversal("/excludepath/withsubdir2"), CSYNC_NOT_EXCLUDED);
 
-        // because leading dirs aren't checked!
-        QCOMPARE(check_dir_traversal("/excludepath/withsubdir/foo"), CSYNC_NOT_EXCLUDED);
+        // Parent directories are considered too
+        QCOMPARE(check_dir_traversal("/excludepath/withsubdir/foo"), CSYNC_FILE_EXCLUDE_LIST);
 
         /* Check ending of pattern */
         QCOMPARE(check_file_traversal("/exclude"), CSYNC_FILE_EXCLUDE_LIST);
@@ -785,6 +789,71 @@ private slots:
         QCOMPARE(excludedFiles->reloadExcludeFiles(), true);
         QCOMPARE(excludedFiles->_allExcludes.size(), 1);
     }
+
+    void testFolderExcludeListInheritsGlobalExcludes()
+    {
+        QTemporaryDir tempDir;
+        const auto localPath = Utility::trailingSlashPath(tempDir.path());
+        excludedFiles.reset(new ExcludedFiles(localPath));
+
+        // create .sync-exclude.lst files inside `a/b` and `a/b/c` subdirectories
+        QDir localDir(localPath);
+        QVERIFY(localDir.mkpath("a/b/c/d"));
+        const auto writeExcludeList = [&localDir](const QString& path, const QStringList& contents) -> bool {
+            QFile f(localDir.filePath("%1/.sync-exclude.lst"_L1.arg(path)));
+            if (!f.open(QIODevice::WriteOnly)) {
+                return false;
+            }
+            f.write(contents.join("\n").toLocal8Bit());
+            f.close();
+            return true;
+        };
+        QVERIFY(writeExcludeList("a/b", {"B_ignore*"}));
+        QVERIFY(writeExcludeList("a/b/c", {"C_ignore*"}));
+
+        // add default/global exclude list from the client
+        excludedFiles->addExcludeFilePath(EXCLUDE_LIST_FILE);
+        QVERIFY(excludedFiles->reloadExcludeFiles());
+
+        QCOMPARE(excludedFiles->traversalPatternMatch("~$_patternExcludedByDefault", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+
+        // according to `ExcludedFiles::traversalPatternMatch`, directories are
+        // guaranteed to be visited before their files, so match those first.
+        //
+        // The function has the side effect of reading additional excludes from
+        // a ".sync-exclude.lst" file in the passed directory
+        QCOMPARE(excludedFiles->_allExcludes.size(), 1);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a", ItemTypeDirectory), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->_allExcludes.size(), 1);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b", ItemTypeDirectory), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->_allExcludes.size(), 2);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c", ItemTypeDirectory), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->_allExcludes.size(), 3);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/d", ItemTypeDirectory), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->_allExcludes.size(), 3);
+
+        // validate custom ignores from the directory-specific .sync-exclude.lst
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/B_ignoredFile", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/C_ignoredFile", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+
+        // excludes from subfolders are not propagated to their parent(s)
+        QCOMPARE(excludedFiles->traversalPatternMatch("B_ignoredFile", ItemTypeFile), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/B_ignoredFile", ItemTypeFile), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->traversalPatternMatch("C_ignoredFile", ItemTypeFile), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/C_ignoredFile", ItemTypeFile), CSYNC_NOT_EXCLUDED);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/C_ignoredFile", ItemTypeFile), CSYNC_NOT_EXCLUDED);
+
+        // global exclude list should still match in subdirs
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/~$_patternExcludedByDefault", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/~$_patternExcludedByDefault", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/~$_patternExcludedByDefault", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/d/~$_patternExcludedByDefault", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+
+        // excludes from subfolders inherit the parent excludes
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/B_ignoredFile", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/d/B_ignoredFile", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+        QCOMPARE(excludedFiles->traversalPatternMatch("a/b/c/d/C_ignoredFile", ItemTypeFile), CSYNC_FILE_EXCLUDE_LIST);
+    }
 };
 
 QTEST_APPLESS_MAIN(TestExcludedFiles)