diff --git a/osxphotos/_version.py b/osxphotos/_version.py
index 58c9d624..ba5ac208 100644
--- a/osxphotos/_version.py
+++ b/osxphotos/_version.py
@@ -1,3 +1,3 @@
 """ version info """
 
-__version__ = "0.42.35"
+__version__ = "0.42.36"
diff --git a/osxphotos/path_utils.py b/osxphotos/path_utils.py
index 075f14e2..b5a4a4c8 100644
--- a/osxphotos/path_utils.py
+++ b/osxphotos/path_utils.py
@@ -6,22 +6,22 @@ from ._constants import MAX_DIRNAME_LEN, MAX_FILENAME_LEN
 
 
 def sanitize_filepath(filepath):
-    """ sanitize a filepath """
+    """sanitize a filepath"""
     return pathvalidate.sanitize_filepath(filepath, platform="macos")
 
 
 def is_valid_filepath(filepath):
-    """ returns True if a filepath is valid otherwise False """
+    """returns True if a filepath is valid otherwise False"""
     return pathvalidate.is_valid_filepath(filepath, platform="macos")
 
 
 def sanitize_filename(filename, replacement=":"):
-    """ replace any illegal characters in a filename and truncate filename if needed
+    """replace any illegal characters in a filename and truncate filename if needed
 
     Args:
         filename: str, filename to sanitze
         replacement: str, value to replace any illegal characters with; default = ":"
-    
+
     Returns:
         filename with any illegal characters replaced by replacement and truncated if necessary
     """
@@ -46,12 +46,12 @@ def sanitize_filename(filename, replacement=":"):
 
 
 def sanitize_dirname(dirname, replacement=":"):
-    """ replace any illegal characters in a directory name and truncate directory name if needed
+    """replace any illegal characters in a directory name and truncate directory name if needed
 
     Args:
-        dirname: str, directory name to sanitze
-        replacement: str, value to replace any illegal characters with; default = ":"
-    
+        dirname: str, directory name to sanitize
+        replacement: str, value to replace any illegal characters with; default = ":"; if None, no replacement occurs
+
     Returns:
         dirname with any illegal characters replaced by replacement and truncated if necessary
     """
@@ -61,19 +61,20 @@ def sanitize_dirname(dirname, replacement=":"):
 
 
 def sanitize_pathpart(pathpart, replacement=":"):
-    """ replace any illegal characters in a path part (either directory or filename without extension) and truncate name if needed
+    """replace any illegal characters in a path part (either directory or filename without extension) and truncate name if needed
 
     Args:
-        pathpart: str, path part to sanitze
-        replacement: str, value to replace any illegal characters with; default = ":"
-    
+        pathpart: str, path part to sanitize
+        replacement: str, value to replace any illegal characters with; default = ":"; if None, no replacement occurs
+
     Returns:
         pathpart with any illegal characters replaced by replacement and truncated if necessary
     """
     if pathpart:
-        pathpart = pathpart.replace("/", replacement)
+        pathpart = (
+            pathpart.replace("/", replacement) if replacement is not None else pathpart
+        )
         if len(pathpart) > MAX_DIRNAME_LEN:
             drop = len(pathpart) - MAX_DIRNAME_LEN
             pathpart = pathpart[:-drop]
     return pathpart
-
diff --git a/osxphotos/phototemplate.py b/osxphotos/phototemplate.py
index 929858ef..a6125d6c 100644
--- a/osxphotos/phototemplate.py
+++ b/osxphotos/phototemplate.py
@@ -1194,7 +1194,8 @@ class PhotoTemplate:
         if self.filename:
             values = [sanitize_pathpart(value) for value in values]
         elif self.dirname:
-            values = [sanitize_dirname(value) for value in values]
+            # sanitize but don't replace any "/" as user function may want to create sub directories
+            values = [sanitize_dirname(value, replacement=None) for value in values]
 
         return values
 
diff --git a/tests/test_cli.py b/tests/test_cli.py
index f6fa1f42..5e4c85ff 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -6443,3 +6443,33 @@ def test_export_post_command_bad_command():
         )
         assert result.exit_code == 0
         assert 'Error running command "foobar' in result.output
+
+
+def test_export_directory_template_function():
+    """Test --directory with template function """
+    import os.path
+    import pathlib
+    from osxphotos.cli import cli
+
+    runner = CliRunner()
+    cwd = os.getcwd()
+    # pylint: disable=not-context-manager
+    with runner.isolated_filesystem():
+        with open("foo.py", "w") as f:
+            f.writelines(["def foo(photo, **kwargs):\n","    return 'foo/bar'"])
+        result = runner.invoke(
+            cli,
+            [
+                "export",
+                "--db",
+                os.path.join(cwd, PHOTOS_DB_15_7),
+                ".",
+                "--uuid",
+                CLI_EXPORT_UUID,
+                "--directory",
+                "{function:foo.py::foo}"
+            ],
+        )
+        assert result.exit_code == 0
+        assert pathlib.Path(f"foo/bar/{CLI_EXPORT_UUID_FILENAME}").is_file()
+