diff --git a/src/filewidgets/kurlnavigatorbutton.cpp b/src/filewidgets/kurlnavigatorbutton.cpp
--- a/src/filewidgets/kurlnavigatorbutton.cpp
+++ b/src/filewidgets/kurlnavigatorbutton.cpp
@@ -29,6 +29,7 @@
 #include <klocalizedstring.h>
 #include <kstringhandler.h>
 
+#include <QDir>
 #include <QTimer>
 #include <QPainter>
 #include <QKeyEvent>
@@ -407,7 +408,17 @@
         return;
     }
 
-    const QUrl url = m_replaceButton ? KIO::upUrl(m_url) : m_url;
+    QUrl url = m_url;
+    if (m_replaceButton) {
+        url = KIO::upUrl(m_url);
+    } else if ((m_url.scheme() == QLatin1String("tar")) || (m_url.scheme() == QLatin1String("zip"))) {
+        // We are in an archive, check whether the subdir we have to list is part of the archive
+        // or is a parent directory.
+        QDir test_dir(url.path());
+        if (test_dir.exists()) {
+            url.setScheme(QStringLiteral("file"));
+        }
+    }
     m_subDirsJob = KIO::listDir(url, KIO::HideProgressInfo, false /*no hidden files*/);
     m_subDirs.clear(); // just to be ++safe