diff --git a/code/PopulateFactory.php b/code/PopulateFactory.php
index 4ee5235..ddcafd5 100644
--- a/code/PopulateFactory.php
+++ b/code/PopulateFactory.php
@@ -254,11 +254,18 @@ private function populateFile($data)
             $file = Image::create();
         }
 
-        $folder = Folder::find_or_make(dirname($filenameWithoutAssets));
+        $fileFolder = dirname($filenameWithoutAssets);
         $filename = basename($filenameWithoutAssets);
+        $folder = null;
+
+        // Create a folder if the YML configuration indicates that the file should be created within a folder
+        if ($fileFolder !== '.') {
+            $folder = Folder::find_or_make($fileFolder);
+            $fileFolder = $folder->getFilename();
+        }
 
         // We could just use $data['Filename'], but we need to allow for filsystem abstraction
-        $filePath = File::join_paths($folder->getFilename(), $filename);
+        $filePath = File::join_paths($fileFolder, $filename);
 
         $fileCfg = [
             // if there's a filename conflict we've got new content so overwrite it.
@@ -279,7 +286,7 @@ private function populateFile($data)
             $file->setFromString(file_get_contents($fixtureFilePath), $filePath, null, null, $fileCfg);
             // Setting ParentID needs to come after setFromString() as (at least sometimes) setFromString() resets the
             // file Parent back to the "Uploads" folder
-            $file->ParentID = $folder->ID;
+            $file->ParentID = $folder instanceof Folder ? $folder->ID : 0;
             $file->write();
             $file->publishRecursive();
         } catch (Exception $e) {
diff --git a/tests/php/PopulateAssetFactoryTest.php b/tests/php/PopulateAssetFactoryTest.php
new file mode 100644
index 0000000..423a9f5
--- /dev/null
+++ b/tests/php/PopulateAssetFactoryTest.php
@@ -0,0 +1,60 @@
+<?php
+
+namespace DNADesign\Populate\Tests;
+
+use DNADesign\Populate\PopulateFactory;
+use DNADesign\Populate\Tests\PopulateFactoryTest\PopulateFactoryTestObject;
+use DNADesign\Populate\Tests\PopulateFactoryTest\PopulateFactoryTestVersionedObject;
+use SilverStripe\Assets\Image;
+use SilverStripe\Dev\SapphireTest;
+use SilverStripe\Dev\TestOnly;
+use SilverStripe\Versioned\Versioned;
+
+/**
+ * Test populating files into assets folder.
+ */
+class PopulateAssetFactoryTest extends SapphireTest implements TestOnly
+{
+    /**
+     * @var PopulateFactory
+     */
+    protected $factory;
+
+    public function setUp()
+    {
+        parent::setUp();
+        $this->factory = new PopulateFactory();
+    }
+
+    /**
+     * Assert that a file is loaded into the expected path within assets directory (Root path).
+     */
+    public function testLoadingFileToRootAssetsDirectory()
+    {
+        // Load a file using populate factory
+        $obj = $this->factory->createObject(Image::class, 'image1', [
+            'Filename' => 'image1.png',
+            'PopulateFileFrom' => 'tests/php/fixture/assets/image1.png',
+        ]);
+
+        // Assert that the file is created and exists in expected root directory of assets
+        $this->assertEquals('./image1.png', $obj->getFilename());
+        $this->assertFileExists(__DIR__ . '/../../assets/image1.png');
+    }
+
+    /**
+     * Assert that a file is loaded into the expected path within assets directory (Within folder)
+     */
+    public function testLoadingFileToFolderInAssetsDirectory()
+    {
+        // Load a file using populate factory
+        $obj = $this->factory->createObject(Image::class, 'image1', [
+            'Filename' => 'fixture/image1.png',
+            'PopulateFileFrom' => 'tests/php/fixture/assets/image1.png',
+        ]);
+
+        // Assert that the file is created and exists in expected root directory of assets
+        $this->assertEquals('fixture/image1.png', $obj->getFilename());
+        $this->assertFileExists(__DIR__ . '/../../assets/fixture/image1.png');
+    }
+}
diff --git a/tests/php/fixture/assets/image1.png b/tests/php/fixture/assets/image1.png
new file mode 100644
index 0000000..e16ff20
Binary files /dev/null and b/tests/php/fixture/assets/image1.png differ