diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index f538e5251e..1f0859aff4 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -660,6 +660,8 @@ export class ProjectsController {
 		if (root && fileOrFolder) {
 			// use relative path and not tree paths for files and folder
 			const allFileEntries = project.files.concat(project.preDeployScripts).concat(project.postDeployScripts).concat(project.noneDeployScripts);
+
+			// trim trailing slash since folders with and without a trailing slash are allowed in a sqlproj
 			const trimmedUri = utils.trimChars(utils.getPlatformSafeFileEntryPath(utils.trimUri(root.fileSystemUri, fileOrFolder.fileSystemUri)), '/');
 			return allFileEntries.find(x => utils.trimChars(utils.getPlatformSafeFileEntryPath(x.relativePath), '/') === trimmedUri);
 		}
diff --git a/extensions/sql-database-projects/src/test/projectTree.test.ts b/extensions/sql-database-projects/src/test/projectTree.test.ts
index a7cd908195..b12521322c 100644
--- a/extensions/sql-database-projects/src/test/projectTree.test.ts
+++ b/extensions/sql-database-projects/src/test/projectTree.test.ts
@@ -108,11 +108,10 @@ describe('Project Tree tests', function (): void {
 			'/TestProj/Database References',
 			'/TestProj/someFolder1']);
 
-		// Why are we only matching names - https://github.com/microsoft/azuredatastudio/issues/11026
-		should(tree.children.find(x => x.projectUri.path === '/TestProj/someFolder1')?.children.map(y => path.basename(y.projectUri.path))).deepEqual([
-			'MyNestedFolder1',
-			'MyNestedFolder2',
-			'MyFile2.sql']);
+		should(tree.children.find(x => x.projectUri.path === '/TestProj/someFolder1')?.children.map(y => y.projectUri.path)).deepEqual([
+				'/TestProj/someFolder1/MyNestedFolder1',
+				'/TestProj/someFolder1/MyNestedFolder2',
+				'/TestProj/someFolder1/MyFile2.sql']);
 	});
 
 	it('Should be able to parse and include relative paths outside project folder', function (): void {