diff --git a/server/scanner/LibraryScanner.js b/server/scanner/LibraryScanner.js
index bd0bb310..a52350f6 100644
--- a/server/scanner/LibraryScanner.js
+++ b/server/scanner/LibraryScanner.js
@@ -424,8 +424,8 @@ class LibraryScanner {
       }
       const folder = library.libraryFolders[0]
 
-      const relFilePaths = folderGroups[folderId].fileUpdates.map((fileUpdate) => fileUpdate.relPath)
-      const fileUpdateGroup = scanUtils.groupFilesIntoLibraryItemPaths(library.mediaType, relFilePaths)
+      const filePathItems = folderGroups[folderId].fileUpdates.map((fileUpdate) => fileUtils.getFilePathItemFromFileUpdate(fileUpdate))
+      const fileUpdateGroup = scanUtils.groupFileItemsIntoLibraryItemDirs(library.mediaType, filePathItems, !!library.settings?.audiobooksOnly)
 
       if (!Object.keys(fileUpdateGroup).length) {
         Logger.info(`[LibraryScanner] No important changes to scan for in folder "${folderId}"`)
diff --git a/server/utils/fileUtils.js b/server/utils/fileUtils.js
index b0c73d6c..8b87d3a0 100644
--- a/server/utils/fileUtils.js
+++ b/server/utils/fileUtils.js
@@ -131,11 +131,21 @@ async function readTextFile(path) {
 }
 module.exports.readTextFile = readTextFile
 
+/**
+ * @typedef FilePathItem
+ * @property {string} name - file name e.g. "audiofile.m4b"
+ * @property {string} path - fullpath excluding folder e.g. "Author/Book/audiofile.m4b"
+ * @property {string} reldirpath - path excluding file name e.g. "Author/Book"
+ * @property {string} fullpath - full path e.g. "/audiobooks/Author/Book/audiofile.m4b"
+ * @property {string} extension - file extension e.g. ".m4b"
+ * @property {number} deep - depth of file in directory (0 is file in folder root)
+ */
+
 /**
  * Get array of files inside dir
  * @param {string} path
  * @param {string} [relPathToReplace]
- * @returns {{name:string, path:string, dirpath:string, reldirpath:string, fullpath:string, extension:string, deep:number}[]}
+ * @returns {FilePathItem[]}
  */
 async function recurseFiles(path, relPathToReplace = null) {
   path = filePathToPOSIX(path)
@@ -213,7 +223,6 @@ async function recurseFiles(path, relPathToReplace = null) {
       return {
         name: item.name,
         path: item.fullname.replace(relPathToReplace, ''),
-        dirpath: item.path,
         reldirpath: isInRoot ? '' : item.path.replace(relPathToReplace, ''),
         fullpath: item.fullname,
         extension: item.extension,
@@ -228,6 +237,26 @@ async function recurseFiles(path, relPathToReplace = null) {
 }
 module.exports.recurseFiles = recurseFiles
 
+/**
+ *
+ * @param {import('../Watcher').PendingFileUpdate} fileUpdate
+ * @returns {FilePathItem}
+ */
+module.exports.getFilePathItemFromFileUpdate = (fileUpdate) => {
+  let relPath = fileUpdate.relPath
+  if (relPath.startsWith('/')) relPath = relPath.slice(1)
+
+  const dirname = Path.dirname(relPath)
+  return {
+    name: Path.basename(relPath),
+    path: relPath,
+    reldirpath: dirname === '.' ? '' : dirname,
+    fullpath: fileUpdate.path,
+    extension: Path.extname(relPath),
+    deep: relPath.split('/').length - 1
+  }
+}
+
 /**
  * Download file from web to local file system
  * Uses SSRF filter to prevent internal URLs
diff --git a/server/utils/scandir.js b/server/utils/scandir.js
index 028a1022..a70e09bb 100644
--- a/server/utils/scandir.js
+++ b/server/utils/scandir.js
@@ -32,107 +32,6 @@ function checkFilepathIsAudioFile(filepath) {
 }
 module.exports.checkFilepathIsAudioFile = checkFilepathIsAudioFile
 
-/**
- * TODO: Function needs to be re-done
- * @param {string} mediaType
- * @param {string[]} paths array of relative file paths
- * @returns {Record<string,string[]>} map of files grouped into potential libarary item dirs
- */
-function groupFilesIntoLibraryItemPaths(mediaType, paths) {
-  // Step 1: Clean path, Remove leading "/", Filter out non-media files in root dir
-  var nonMediaFilePaths = []
-  var pathsFiltered = paths
-    .map((path) => {
-      return path.startsWith('/') ? path.slice(1) : path
-    })
-    .filter((path) => {
-      let parsedPath = Path.parse(path)
-      // Is not in root dir OR is a book media file
-      if (parsedPath.dir) {
-        if (!isMediaFile(mediaType, parsedPath.ext, false)) {
-          // Seperate out non-media files
-          nonMediaFilePaths.push(path)
-          return false
-        }
-        return true
-      } else if (mediaType === 'book' && isMediaFile(mediaType, parsedPath.ext, false)) {
-        // (book media type supports single file audiobooks/ebooks in root dir)
-        return true
-      }
-      return false
-    })
-
-  // Step 2: Sort by least number of directories
-  pathsFiltered.sort((a, b) => {
-    var pathsA = Path.dirname(a).split('/').length
-    var pathsB = Path.dirname(b).split('/').length
-    return pathsA - pathsB
-  })
-
-  // Step 3: Group files in dirs
-  var itemGroup = {}
-  pathsFiltered.forEach((path) => {
-    var dirparts = Path.dirname(path)
-      .split('/')
-      .filter((p) => !!p && p !== '.') //  dirname returns . if no directory
-    var numparts = dirparts.length
-    var _path = ''
-
-    if (!numparts) {
-      // Media file in root
-      itemGroup[path] = path
-    } else {
-      // Iterate over directories in path
-      for (let i = 0; i < numparts; i++) {
-        var dirpart = dirparts.shift()
-        _path = Path.posix.join(_path, dirpart)
-
-        if (itemGroup[_path]) {
-          // Directory already has files, add file
-          var relpath = Path.posix.join(dirparts.join('/'), Path.basename(path))
-          itemGroup[_path].push(relpath)
-          return
-        } else if (!dirparts.length) {
-          // This is the last directory, create group
-          itemGroup[_path] = [Path.basename(path)]
-          return
-        } else if (dirparts.length === 1 && /^(cd|dis[ck])\s*\d{1,3}$/i.test(dirparts[0])) {
-          // Next directory is the last and is a CD dir, create group
-          itemGroup[_path] = [Path.posix.join(dirparts[0], Path.basename(path))]
-          return
-        }
-      }
-    }
-  })
-
-  // Step 4: Add in non-media files if they fit into item group
-  if (nonMediaFilePaths.length) {
-    for (const nonMediaFilePath of nonMediaFilePaths) {
-      const pathDir = Path.dirname(nonMediaFilePath)
-      const filename = Path.basename(nonMediaFilePath)
-      const dirparts = pathDir.split('/')
-      const numparts = dirparts.length
-      let _path = ''
-
-      // Iterate over directories in path
-      for (let i = 0; i < numparts; i++) {
-        const dirpart = dirparts.shift()
-        _path = Path.posix.join(_path, dirpart)
-        if (itemGroup[_path]) {
-          // Directory is a group
-          const relpath = Path.posix.join(dirparts.join('/'), filename)
-          itemGroup[_path].push(relpath)
-        } else if (!dirparts.length) {
-          itemGroup[_path] = [filename]
-        }
-      }
-    }
-  }
-
-  return itemGroup
-}
-module.exports.groupFilesIntoLibraryItemPaths = groupFilesIntoLibraryItemPaths
-
 /**
  * @param {string} mediaType
  * @param {{name:string, path:string, dirpath:string, reldirpath:string, fullpath:string, extension:string, deep:number}[]} fileItems (see recurseFiles)