diff --git a/app/Models/Album.php b/app/Models/Album.php
index 90841cfa..b5fbddcf 100644
--- a/app/Models/Album.php
+++ b/app/Models/Album.php
@@ -123,12 +123,36 @@ class Album extends Model
     public function writeCoverFile($binaryData, $extension)
     {
         $extension = trim(strtolower($extension), '. ');
-        $fileName = uniqid('', true).".$extension";
-        $coverPath = app()->publicPath().'/public/img/covers/'.$fileName;
+        $destPath = $this->generateRandomCoverPath($extension);
+        file_put_contents($destPath, $binaryData);
 
-        file_put_contents($coverPath, $binaryData);
+        $this->update(['cover' => basename($destPath)]);
+    }
 
-        $this->update(['cover' => $fileName]);
+    /**
+     * Copy a cover file from an existing image on the system.
+     *
+     * @param string $srcPath The original image's full path.
+     */
+    public function copyCoverFile($srcPath)
+    {
+        $extension = pathinfo($srcPath, PATHINFO_EXTENSION);
+        $destPath = $this->generateRandomCoverPath($extension);
+        copy($srcPath, $destPath);
+
+        $this->update(['cover' => basename($destPath)]);
+    }
+
+    /**
+     * Generate a random path for the cover image.
+     *
+     * @param string $extension The extension of the cover (without dot)
+     *
+     * @return string
+     */
+    private function generateRandomCoverPath($extension)
+    {
+        return app()->publicPath().'/public/img/covers/'.uniqid('', true).".$extension";
     }
 
     public function setCoverAttribute($value)
diff --git a/app/Models/File.php b/app/Models/File.php
index 2c314d82..83394509 100644
--- a/app/Models/File.php
+++ b/app/Models/File.php
@@ -2,7 +2,9 @@
 
 namespace App\Models;
 
+use Cache;
 use Exception;
+use Symfony\Component\Finder\Finder;
 use getID3;
 use getid3_lib;
 use Illuminate\Support\Facades\Log;
@@ -99,7 +101,7 @@ class File
             'comments.track_number',
         ];
 
-        for ($i = 0; $i < count($trackIndices) && $track === 0; $i++) {
+        for ($i = 0; $i < count($trackIndices) && $track === 0; ++$i) {
             $track = array_get($info, $trackIndices[$i], [0])[0];
         }
 
@@ -227,11 +229,18 @@ class File
             $album = Album::get($artist, $info['album'], $isCompilation);
         }
 
-        if (!empty($info['cover']) && !$album->has_cover) {
-            try {
-                $album->generateCover($info['cover']);
-            } catch (Exception $e) {
-                Log::error($e);
+        if (!$album->has_cover) {
+            // If the album has no cover, we try to get the cover image from existing tag data
+            if (!empty($info['cover'])) {
+                try {
+                    $album->generateCover($info['cover']);
+                } catch (Exception $e) {
+                    Log::error($e);
+                }
+            }
+            // or, if there's a cover image under the same directory, use it.
+            elseif ($cover = $this->getCoverFileUnderSameDirectory()) {
+                $album->copyCoverFile($cover);
             }
         }
 
@@ -303,6 +312,42 @@ class File
         return $this->path;
     }
 
+    /**
+     * Issue #380.
+     * Some albums have its own cover image under the same directory as cover|folder.jpg/png.
+     * We'll check if such a cover file is found, and use it if positive.
+     *
+     * @return string|false The cover file's full path, or false if none found
+     */
+    private function getCoverFileUnderSameDirectory()
+    {
+        // As directory scanning can be expensive, we cache and reuse the result.
+        $cacheKey = md5($this->path.'_cover');
+
+        if (!is_null($cover = Cache::get($cacheKey))) {
+            return $cover;
+        }
+
+        $matches = array_keys(iterator_to_array(
+            Finder::create()
+                ->depth(0)
+                ->ignoreUnreadableDirs()
+                ->files()
+                ->name('/(cov|fold)er\.(jpe?g|png)$/i')
+                ->in(dirname($this->path))
+        ));
+
+        $cover = $matches ? $matches[0] : false;
+        // Even if a file is found, make sure it's a real image.
+        if ($cover && exif_imagetype($cover) === false) {
+            $cover = false;
+        }
+
+        Cache::put($cacheKey, $cover, 24 * 60);
+
+        return $cover;
+    }
+
     /**
      * Get a unique hash from a file path.
      *
diff --git a/tests/MediaTest.php b/tests/MediaTest.php
index 6370f448..2b1404a9 100644
--- a/tests/MediaTest.php
+++ b/tests/MediaTest.php
@@ -32,6 +32,11 @@ class MediaTest extends TestCase
         // Ogg files and audio files in subdirectories should be recognized
         $this->seeInDatabase('songs', ['path' => $this->mediaPath.'/subdir/back-in-black.ogg']);
 
+        // GitHub issue #380. folder.png should be copied and used as the cover for files
+        // under subdir/
+        $song = Song::wherePath($this->mediaPath.'/subdir/back-in-black.ogg')->first();
+        $this->assertNotNull($song->album->cover);
+
         // File search shouldn't be case-sensitive.
         $this->seeInDatabase('songs', ['path' => $this->mediaPath.'/subdir/no-name.MP3']);
 
@@ -58,6 +63,7 @@ class MediaTest extends TestCase
         $this->assertTrue($song->album->is_compilation);
         $this->assertEquals(Artist::VARIOUS_ID, $song->album->artist_id);
 
+
         $currentCover = $album->cover;
 
         $song = Song::orderBy('id', 'desc')->first();
diff --git a/tests/songs/subdir/folder.png b/tests/songs/subdir/folder.png
new file mode 100644
index 00000000..429406bf
Binary files /dev/null and b/tests/songs/subdir/folder.png differ