diff --git a/packages/cli/CHANGELOG.md b/packages/cli/CHANGELOG.md
index 4f880969c7..d2627aa2ef 100644
--- a/packages/cli/CHANGELOG.md
+++ b/packages/cli/CHANGELOG.md
@@ -6,6 +6,7 @@ All notable changes to the Zowe CLI package will be documented in this file.
 
 - Enhancement: Incorporate all source code from the zowe/imperative Github repository into the zowe/zowe-cli repository. This change should have no user impact.
 - BugFix: Removed out of date `Perf-Timing` performance timing package.
+- BugFix: Fix behavior where a specified directory was being lowercased on non-PDS datasets when downloading all datasets [#1722](https://github.com/zowe/zowe-cli/issues/1722)
 
 ## `7.18.8`
 
diff --git a/packages/zosfiles/CHANGELOG.md b/packages/zosfiles/CHANGELOG.md
index ef84ef1cc7..1db6d1a262 100644
--- a/packages/zosfiles/CHANGELOG.md
+++ b/packages/zosfiles/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 All notable changes to the Zowe z/OS files SDK package will be documented in this file.
 
+## Recent Changes
+
+- BugFix: Fix behavior where a specified directory was being lowercased on non-PDS datasets when downloading all datasets [#1722](https://github.com/zowe/zowe-cli/issues/1722)
+
 ## `7.18.8`
 - Enhancement: Patch that adds invalidFileName to ZosFilesMessages
 
diff --git a/packages/zosfiles/__tests__/__unit__/methods/download/Download.unit.test.ts b/packages/zosfiles/__tests__/__unit__/methods/download/Download.unit.test.ts
index 27bcc89211..671b2a7deb 100644
--- a/packages/zosfiles/__tests__/__unit__/methods/download/Download.unit.test.ts
+++ b/packages/zosfiles/__tests__/__unit__/methods/download/Download.unit.test.ts
@@ -870,6 +870,39 @@ describe("z/OS Files - Download", () => {
             });
         });
 
+        it("should download all members specifying mixed case directory, volume, and extension", async () => {
+            let response;
+            let caughtError;
+
+            const volume = "testVs";
+            const directory = "My/Test/Path/";
+            const extension = ".xyz";
+
+            try {
+                response = await Download.allMembers(dummySession, dsname, {volume, directory, extension});
+            } catch (e) {
+                caughtError = e;
+            }
+
+            expect(caughtError).toBeUndefined();
+            expect(response).toEqual({
+                success: true,
+                commandResponse: util.format(ZosFilesMessages.datasetDownloadedWithDestination.message, directory),
+                apiResponse: listApiResponse
+            });
+
+            expect(listAllMembersSpy).toHaveBeenCalledTimes(1);
+            expect(listAllMembersSpy).toHaveBeenCalledWith(dummySession, dsname, {volume});
+
+            expect(downloadDatasetSpy).toHaveBeenCalledTimes(2);
+            listApiResponse.items.forEach((mem) => {
+                expect(downloadDatasetSpy).toHaveBeenCalledWith(dummySession, `${dsname}(${mem.member})`, {
+                    volume,
+                    file: `${directory}/${mem.member.toLowerCase()}${extension}`
+                });
+            });
+        });
+
         it("should download all members with specified \"\" extension", async () => {
             let response;
             let caughtError;
@@ -1279,6 +1312,42 @@ describe("z/OS Files - Download", () => {
             expect(Download.dataSet).toHaveBeenCalledWith(dummySession, dataSetPS.dsname, {file: "my/test/path/test.ps.data.set.xyz"});
         });
 
+        it("should download all datasets specifying a mixed case directory", async () => {
+            let response;
+            let caughtError;
+
+            const directory = "My/Test/Path";
+            const extensionMap = {set: "file"};
+
+            Download.dataSet = jest.fn(async (): Promise<any> => {
+                return {
+                    commandResponse: "Data set downloaded",
+                    apiResponse: {
+                        items: [dataSetPS]
+                    },
+                };
+            });
+
+            try {
+                response = await Download.allDataSets(dummySession, [dataSetPS] as any, {directory, extensionMap});
+            } catch (e) {
+                caughtError = e;
+            }
+
+            expect(caughtError).toBeUndefined();
+            expect(response).toEqual({
+                success: true,
+                commandResponse: (Download as any).buildDownloadDsmResponse({
+                    downloaded: ["TEST.PS.DATA.SET"],
+                    failedArchived: [],
+                    failedUnsupported: [],
+                    failedWithErrors: {}
+                }, {directory}),
+                apiResponse: [{ ...dataSetPS, status: "Data set downloaded" }]
+            });
+            expect(Download.dataSet).toHaveBeenCalledWith(dummySession, dataSetPS.dsname, {extensionMap, file: "My/Test/Path/test.ps.data.set.file"});
+        });
+
         it("should download all datasets specifying the directory and extension map 1", async () => {
             let response;
             let caughtError;
diff --git a/packages/zosfiles/src/methods/download/Download.ts b/packages/zosfiles/src/methods/download/Download.ts
index 3dd345ac4d..135b76a3c4 100644
--- a/packages/zosfiles/src/methods/download/Download.ts
+++ b/packages/zosfiles/src/methods/download/Download.ts
@@ -372,11 +372,11 @@ export class Download {
                 } else if (dataSetObj.dsorg === "PO" || dataSetObj.dsorg === "PO-E") {
                     mutableOptions.directory = `${mutableOptions.directory}/${ZosFilesUtils.getDirsFromDataSet(dataSetObj.dsname)}`;
                 } else {
-                    mutableOptions.file = `${mutableOptions.directory}/${dataSetObj.dsname}.` +
-                        `${mutableOptions.extension ?? ZosFilesUtils.DEFAULT_FILE_EXTENSION}`;
+                    mutableOptions.file = `${dataSetObj.dsname}.${mutableOptions.extension ?? ZosFilesUtils.DEFAULT_FILE_EXTENSION}`;
                     if (!options.preserveOriginalLetterCase) {
                         mutableOptions.file = mutableOptions.file.toLowerCase();
                     }
+                    mutableOptions.file = `${mutableOptions.directory}/${mutableOptions.file}`;
                     mutableOptions.directory = undefined;
                     mutableOptions.extension = undefined;
                 }