diff --git a/apex/apex.go b/apex/apex.go
index fdfcf86..5ce0e05 100644
--- a/apex/apex.go
+++ b/apex/apex.go
@@ -684,8 +684,14 @@
 			} else {
 				readOnlyPaths = append(readOnlyPaths, pathInApex)
 			}
-			if !android.InList(f.installDir, executablePaths) {
-				executablePaths = append(executablePaths, f.installDir)
+			dir := f.installDir
+			for !android.InList(dir, executablePaths) && dir != "" {
+				executablePaths = append(executablePaths, dir)
+				dir, _ = filepath.Split(dir) // move up to the parent
+				if len(dir) > 0 {
+					// remove trailing slash
+					dir = dir[:len(dir)-1]
+				}
 			}
 		}
 		sort.Strings(readOnlyPaths)
diff --git a/apex/apex_test.go b/apex/apex_test.go
index b178829..c7ef58e 100644
--- a/apex/apex_test.go
+++ b/apex/apex_test.go
@@ -40,6 +40,7 @@
 	ctx.RegisterModuleType("cc_library_shared", android.ModuleFactoryAdaptor(cc.LibrarySharedFactory))
 	ctx.RegisterModuleType("cc_object", android.ModuleFactoryAdaptor(cc.ObjectFactory))
 	ctx.RegisterModuleType("toolchain_library", android.ModuleFactoryAdaptor(cc.ToolchainLibraryFactory))
+	ctx.RegisterModuleType("prebuilt_etc", android.ModuleFactoryAdaptor(android.PrebuiltEtcFactory))
 	ctx.PreDepsMutators(func(ctx android.RegisterMutatorsContext) {
 		ctx.BottomUp("link", cc.LinkageMutator).Parallel()
 		ctx.BottomUp("version", cc.VersionMutator).Parallel()
@@ -94,6 +95,7 @@
 		"apex_manifest.json":                        nil,
 		"system/sepolicy/apex/myapex-file_contexts": nil,
 		"mylib.cpp":                                 nil,
+		"myprebuilt":                                nil,
 	})
 	_, errs := ctx.ParseFileList(".", []string{"Android.bp"})
 	android.FailIfErrored(t, errs)
@@ -415,3 +417,33 @@
 	ensureContains(t, mylibCFlags, "__LIBDL_API__=27")
 	ensureContains(t, mylibSharedCFlags, "__LIBDL_API__=27")
 }
+
+func TestFilesInSubDir(t *testing.T) {
+	ctx := testApex(t, `
+		apex {
+			name: "myapex",
+			key: "myapex.key",
+			prebuilts: ["myetc"],
+		}
+
+		apex_key {
+			name: "myapex.key",
+			public_key: "testkey.avbpubkey",
+			private_key: "testkey.pem",
+		}
+
+		prebuilt_etc {
+			name: "myetc",
+			src: "myprebuilt",
+			sub_dir: "foo/bar",
+		}
+	`)
+
+	generateFsRule := ctx.ModuleForTests("myapex", "android_common_myapex").Rule("generateFsConfig")
+	dirs := strings.Split(generateFsRule.Args["exec_paths"], " ")
+
+	// Ensure that etc, etc/foo, and etc/foo/bar are all listed
+	ensureListContains(t, dirs, "etc")
+	ensureListContains(t, dirs, "etc/foo")
+	ensureListContains(t, dirs, "etc/foo/bar")
+}