diff --git a/R/model.R b/R/model.R
index 25f8dc111..64fa52087 100644
--- a/R/model.R
+++ b/R/model.R
@@ -405,6 +405,9 @@ compile <- function(quiet = TRUE,
     exe_base <- file.path(dir, basename(self$stan_file()))
   }
   exe <- cmdstan_ext(paste0(strip_ext(exe_base), exe_suffix))
+  if (dir.exists(exe)) {
+    stop("There is a subfolder matching the model name in the same folder as the model! Please remove or rename the subfolder and try again.", call. = FALSE)
+  }
   model_name <- sub(" ", "_", paste0(strip_ext(basename(self$stan_file())), "_model"))
 
   # compile if:
diff --git a/tests/testthat/test-model-compile.R b/tests/testthat/test-model-compile.R
index 6d60e9a17..68fc17ecb 100644
--- a/tests/testthat/test-model-compile.R
+++ b/tests/testthat/test-model-compile.R
@@ -420,3 +420,26 @@ test_that("check_syntax() works with pedantic=TRUE", {
   )
 })
 
+test_that("compiliation errors if folder with the model name exists", {
+  skip_on_cran()
+  skip_if(os_is_windows())
+  model_code <- "
+  parameters {
+    real y;
+  }
+  model {
+    y ~ std_normal();
+  }
+  "
+  stan_file <- write_stan_file(model_code)
+  exe <- strip_ext(stan_file)
+  if (!dir.exists(exe)) {
+    if (file.exists(exe)) {
+      file.remove(exe)
+    }
+    dir.create(exe)
+  }
+  expect_error(cmdstan_model(stan_file),
+               "There is a subfolder matching the model name in the same folder as the model! Please remove or rename the subfolder and try again.")
+})
+