diff --git a/src/poetry/installation/executor.py b/src/poetry/installation/executor.py
index eb7302aa63d..22972882fcb 100644
--- a/src/poetry/installation/executor.py
+++ b/src/poetry/installation/executor.py
@@ -506,7 +506,7 @@ def _install(self, operation: Install | Update) -> int:
         elif package.source_type == "file":
             archive = self._prepare_archive(operation)
         elif package.source_type == "directory":
-            archive = self._prepare_directory_archive(operation)
+            archive = self._prepare_archive(operation)
             cleanup_archive = True
         elif package.source_type == "url":
             assert package.source_url is not None
@@ -569,6 +569,8 @@ def _prepare_archive(self, operation: Install | Update) -> Path:
 
         assert package.source_url is not None
         archive = Path(package.source_url)
+        if package.source_subdirectory:
+            archive = archive / package.source_subdirectory
         if not Path(package.source_url).is_absolute() and package.root_dir:
             archive = package.root_dir / archive
 
@@ -576,27 +578,6 @@ def _prepare_archive(self, operation: Install | Update) -> Path:
 
         return self._chef.prepare(archive, editable=package.develop)
 
-    def _prepare_directory_archive(self, operation: Install | Update) -> Path:
-        package = operation.package
-        operation_message = self.get_operation_message(operation)
-
-        message = (
-            f"  <fg=blue;options=bold>•</> {operation_message}:"
-            " <info>Building...</info>"
-        )
-        self._write(operation, message)
-
-        assert package.source_url is not None
-        if package.root_dir:
-            req = package.root_dir / package.source_url
-        else:
-            req = Path(package.source_url).resolve(strict=False)
-
-        if package.source_subdirectory:
-            req /= package.source_subdirectory
-
-        return self._prepare_archive(operation)
-
     def _prepare_git_archive(self, operation: Install | Update) -> Path:
         from poetry.vcs.git import Git
 
@@ -619,7 +600,7 @@ def _prepare_git_archive(self, operation: Install | Update) -> Path:
         original_url = package.source_url
         package._source_url = str(source.path)
 
-        archive = self._prepare_directory_archive(operation)
+        archive = self._prepare_archive(operation)
 
         package._source_url = original_url
 
diff --git a/tests/installation/test_executor.py b/tests/installation/test_executor.py
index 1f2a6c37dd1..34f397e6bd4 100644
--- a/tests/installation/test_executor.py
+++ b/tests/installation/test_executor.py
@@ -776,6 +776,37 @@ def test_executor_should_write_pep610_url_references_for_git(
     )
 
 
+def test_executor_should_append_subdirectory_for_git(
+    mocker: MockerFixture,
+    tmp_venv: VirtualEnv,
+    pool: RepositoryPool,
+    config: Config,
+    io: BufferedIO,
+    mock_file_downloads: None,
+    wheel: Path,
+) -> None:
+    package = Package(
+        "demo",
+        "0.1.2",
+        source_type="git",
+        source_reference="master",
+        source_resolved_reference="123456",
+        source_url="https://github.com/demo/subdirectories.git",
+        source_subdirectory="two",
+    )
+
+    chef = Chef(config, tmp_venv, Factory.create_pool(config))
+    chef.set_directory_wheel(wheel)
+    spy = mocker.spy(chef, "prepare")
+
+    executor = Executor(tmp_venv, pool, config, io)
+    executor._chef = chef
+    executor.execute([Install(package)])
+
+    archive_arg = spy.call_args[0][0]
+    assert archive_arg == tmp_venv.path / "src/demo/subdirectories/two"
+
+
 def test_executor_should_write_pep610_url_references_for_git_with_subdirectories(
     tmp_venv: VirtualEnv,
     pool: RepositoryPool,