diff --git a/lib/interpolateName.js b/lib/interpolateName.js
index 267dd2c..60a898c 100644
--- a/lib/interpolateName.js
+++ b/lib/interpolateName.js
@@ -51,9 +51,10 @@ function interpolateName(loaderContext, name, options = {}) {
       directory = resourcePath.replace(/\\/g, "/").replace(/\.\.(\/)?/g, "_$1");
     }
 
-    if (directory.length === 1) {
+    if (directory.length <= 1) {
       directory = "";
-    } else if (directory.length > 1) {
+    } else {
+      // directory.length > 1
       folder = path.basename(directory);
     }
   }
diff --git a/test/interpolateName.test.js b/test/interpolateName.test.js
index d84bf8e..77d9a17 100644
--- a/test/interpolateName.test.js
+++ b/test/interpolateName.test.js
@@ -308,11 +308,21 @@ describe("interpolateName()", () => {
         "/path/to/",
         "should interpolate [path] token",
       ],
+      [
+        [loaderContext, "[path]", { context: "/path/" }],
+        "to/",
+        "should interpolate [path] token with context",
+      ],
       [
         [loaderContext, "[folder]", {}],
         "to",
         "should interpolate [folder] token",
       ],
+      [
+        [{ resourcePath: "." }, "[folder]", {}],
+        "",
+        "should interpolate [folder] token with short resourcePath",
+      ],
     ]);
   });