diff --git a/packages/playground/blueprints/src/lib/resources.ts b/packages/playground/blueprints/src/lib/resources.ts
index 93065089cc..d08d0485f4 100644
--- a/packages/playground/blueprints/src/lib/resources.ts
+++ b/packages/playground/blueprints/src/lib/resources.ts
@@ -164,7 +164,7 @@ export class VFSResource extends Resource {
 
 	/** @inheritDoc */
 	get name() {
-		return this.resource.path;
+		return this.resource.path.split('/').pop() || '';
 	}
 }
 
diff --git a/packages/playground/blueprints/src/lib/steps/activate-plugin.ts b/packages/playground/blueprints/src/lib/steps/activate-plugin.ts
index 72efa36a8a..3f46081122 100644
--- a/packages/playground/blueprints/src/lib/steps/activate-plugin.ts
+++ b/packages/playground/blueprints/src/lib/steps/activate-plugin.ts
@@ -51,8 +51,7 @@ foreach ( ( glob( $plugin_path . '/*.php' ) ?: array() ) as $file ) {
 echo 'NO_ENTRY_FILE';
 `,
 	});
-	if (result.errors) throw new Error(result.errors);
-	if (result.text === 'NO_ENTRY_FILE') {
+	if (result.text.endsWith('NO_ENTRY_FILE')) {
 		throw new Error('Could not find plugin entry file.');
 	}
 };
diff --git a/packages/playground/blueprints/src/lib/steps/install-asset.ts b/packages/playground/blueprints/src/lib/steps/install-asset.ts
index ed613d5e8f..40649457ff 100644
--- a/packages/playground/blueprints/src/lib/steps/install-asset.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-asset.ts
@@ -31,15 +31,17 @@ export async function installAsset(
 	// Extract to temporary folder so we can find asset folder name
 
 	const zipFileName = zipFile.name;
-	const tmpFolder = `/tmp/assets`;
+	const assetNameGuess = zipFileName.replace(/\.zip$/, '');
+
+	const tmpUnzippedFilesPath = `/tmp/assets/${assetNameGuess}`;
 	const tmpZipPath = `/tmp/${zipFileName}`;
 
 	const removeTmpFolder = () =>
-		playground.rmdir(tmpFolder, {
+		playground.rmdir(tmpUnzippedFilesPath, {
 			recursive: true,
 		});
 
-	if (await playground.fileExists(tmpFolder)) {
+	if (await playground.fileExists(tmpUnzippedFilesPath)) {
 		await removeTmpFolder();
 	}
 
@@ -54,35 +56,34 @@ export async function installAsset(
 	try {
 		await unzip(playground, {
 			zipPath: tmpZipPath,
-			extractToPath: tmpFolder,
+			extractToPath: tmpUnzippedFilesPath,
 		});
 
-		// Find extracted asset folder name
-
-		const files = await playground.listFiles(tmpFolder);
+		// Find the path asset folder name
+		const files = await playground.listFiles(tmpUnzippedFilesPath, {
+			prependPath: true,
+		});
 
+		/**
+		 * If the zip only contains a single entry that is directory,
+		 * we assume that's the asset folder. Otherwise, the zip
+		 * probably contains the plugin files without an intermediate folder.
+		 */
+		const zipHasRootFolder =
+			files.length === 1 && (await playground.isDir(files[0]));
 		let assetFolderName;
 		let tmpAssetPath = '';
-
-		for (const file of files) {
-			tmpAssetPath = `${tmpFolder}/${file}`;
-			if (await playground.isDir(tmpAssetPath)) {
-				assetFolderName = file;
-				break;
-			}
-		}
-
-		if (!assetFolderName) {
-			throw new Error(
-				`The zip file should contain a single folder with files inside, but the provided zip file (${zipFileName}) does not contain such a folder.`
-			);
+		if (zipHasRootFolder) {
+			tmpAssetPath = files[0];
+			assetFolderName = files[0].split('/').pop()!;
+		} else {
+			tmpAssetPath = tmpUnzippedFilesPath;
+			assetFolderName = assetNameGuess;
 		}
 
 		// Move asset folder to target path
-
 		const assetFolderPath = `${targetPath}/${assetFolderName}`;
 		await playground.mv(tmpAssetPath, assetFolderPath);
-
 		await cleanup();
 
 		return {
diff --git a/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts b/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
index 15b48f7fae..85a5397228 100644
--- a/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
@@ -15,7 +15,6 @@ describe('Blueprint step installPlugin', () => {
 
 	it('should install a plugin', async () => {
 		// Create test plugin
-
 		const pluginName = 'test-plugin';
 
 		php.mkdir(`/${pluginName}`);
@@ -28,7 +27,10 @@ describe('Blueprint step installPlugin', () => {
 		const zipFileName = `${pluginName}-0.0.1.zip`;
 
 		await php.run({
-			code: `<?php $zip = new ZipArchive(); $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); $zip->addFile("/${pluginName}/index.php"); $zip->close();`,
+			code: `<?php $zip = new ZipArchive(); 
+						 $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); 
+						 $zip->addFile("/${pluginName}/index.php"); 
+						 $zip->close();`,
 		});
 
 		php.rmdir(`/${pluginName}`);
@@ -63,4 +65,50 @@ describe('Blueprint step installPlugin', () => {
 
 		expect(php.fileExists(`${pluginsPath}/${pluginName}`)).toBe(true);
 	});
+
+	it('should install a plugin even when it is zipped directly without a root-level folder', async () => {
+		// Create test plugin
+		const pluginName = 'test-plugin';
+
+		php.writeFile('/index.php', `/**\n * Plugin Name: Test Plugin`);
+
+		// Note the package name is different from plugin folder name
+		const zipFileName = `${pluginName}-0.0.1.zip`;
+
+		await php.run({
+			code: `<?php $zip = new ZipArchive(); 
+						 $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); 
+						 $zip->addFile("/index.php"); 
+						 $zip->close();`,
+		});
+
+		expect(php.fileExists(zipFileName)).toBe(true);
+
+		// Create plugins folder
+		const rootPath = await php.documentRoot;
+		const pluginsPath = `${rootPath}/wp-content/plugins`;
+
+		php.mkdir(pluginsPath);
+
+		await runBlueprintSteps(
+			compileBlueprint({
+				steps: [
+					{
+						step: 'installPlugin',
+						pluginZipFile: {
+							resource: 'vfs',
+							path: zipFileName,
+						},
+						options: {
+							activate: false,
+						},
+					},
+				],
+			}),
+			php
+		);
+
+		php.unlink(zipFileName);
+		expect(php.fileExists(`${pluginsPath}/${pluginName}-0.0.1`)).toBe(true);
+	});
 });