diff --git a/Gruntfile.js b/Gruntfile.js
index f3dff69..3a94db3 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -40,6 +40,14 @@ module.exports = function(grunt) {
           {expand: true, cwd: 'test/fixtures/', src: ['**/*']}
         ]
       },
+      zipWithFolders: {
+        options: {
+          archive: 'tmp/compress_test_folder.zip'
+        },
+        files: [
+          {expand: true, cwd: 'test/fixtures/', src: ['**'], dest: './'}
+        ]
+      },
       tar: {
         options: {
           archive: 'tmp/compress_test_files.tar'
diff --git a/tasks/lib/compress.js b/tasks/lib/compress.js
index 61f8899..367275b 100644
--- a/tasks/lib/compress.js
+++ b/tasks/lib/compress.js
@@ -150,7 +150,7 @@ module.exports = function(grunt) {
         var internalFileName = isExpandedPair ? file.dest : exports.unixifyPath(path.join(file.dest || '', srcFile));
 
         // check if internal file name is not a dot, should not be present in an archive
-        if (internalFileName === '.') {
+        if (internalFileName === '.' || internalFileName === './') {
           return;
         }
 
diff --git a/test/compress_test.js b/test/compress_test.js
index 24f3dac..3d49bb1 100644
--- a/test/compress_test.js
+++ b/test/compress_test.js
@@ -28,6 +28,26 @@ exports.compress = {
       test.done();
     });
   },
+  zipWithFolder: function(test) {
+    test.expect(1);
+    var expected = [
+      'folder_one/', 'folder_one/one.css', 'folder_one/one.js',
+      'folder_two/', 'folder_two/two.css', 'folder_two/two.js',
+      'test.css', 'test.js'
+    ];
+    var actual = [];
+    var parse = unzip.Parse();
+    fs.createReadStream(path.join('tmp', 'compress_test_folder.zip')).pipe(parse);
+    parse.on('entry', function(entry) {
+      actual.push(entry.path);
+    });
+    parse.on('close', function() {
+      actual.sort();
+      expected.sort();
+      test.deepEqual(actual, expected, 'zip file should unzip and contain all of the expected files');
+      test.done();
+    });
+  },
   tar: function(test) {
     test.expect(1);
     var expected = [