diff --git a/demux/demux.c b/demux/demux.c
index 348e582d12..b6f2c2efae 100644
--- a/demux/demux.c
+++ b/demux/demux.c
@@ -67,6 +67,7 @@ static const demuxer_desc_t *const demuxer_list[] = {
     &demuxer_desc_disc,
     &demuxer_desc_edl,
     &demuxer_desc_cue,
+    &demuxer_desc_playlist,
     &demuxer_desc_rawaudio,
     &demuxer_desc_rawvideo,
     &demuxer_desc_matroska,
@@ -75,7 +76,6 @@ static const demuxer_desc_t *const demuxer_list[] = {
 #endif
     &demuxer_desc_lavf,
     &demuxer_desc_mf,
-    &demuxer_desc_playlist,
     &demuxer_desc_null,
     NULL
 };
@@ -117,6 +117,7 @@ const struct m_sub_options demux_conf = {
         {"demuxer-backward-playback-step", OPT_DOUBLE(back_seek_size),
             M_RANGE(0, DBL_MAX)},
         {"metadata-codepage", OPT_STRING(meta_cp)},
+        {"autocreate-playlist", OPT_BOOL(autocreate_playlist)},
         {0}
     },
     .size = sizeof(struct demux_opts),
diff --git a/demux/demux.h b/demux/demux.h
index 401f1d146c..d9cd9f7ea4 100644
--- a/demux/demux.h
+++ b/demux/demux.h
@@ -86,6 +86,7 @@ struct demux_opts {
     double back_seek_size;
     char *meta_cp;
     bool force_retry_eof;
+    bool autocreate_playlist;
 };
 
 #define SEEK_FACTOR   (1 << 1)      // argument is in range [0,1]
@@ -211,6 +212,7 @@ struct demuxer_params {
     bool stream_record; // if true, enable stream recording if option is set
     int stream_flags;
     struct stream *external_stream; // if set, use this, don't open or close streams
+    bool has_playlist;
     // result
     bool demuxer_failed;
 };
diff --git a/demux/demux_playlist.c b/demux/demux_playlist.c
index b1108917d1..c90e69bfd5 100644
--- a/demux/demux_playlist.c
+++ b/demux/demux_playlist.c
@@ -85,6 +85,7 @@ struct pl_parser {
     bool force;
     bool add_base;
     bool line_allocated;
+    bool create_dir_playlist;
     enum demux_check check_level;
     struct stream *real_stream;
     char *format;
@@ -463,14 +464,25 @@ static bool scan_dir(struct pl_parser *p, char *path,
 
 static int parse_dir(struct pl_parser *p)
 {
-    if (!p->real_stream->is_directory)
-        return -1;
-    if (p->probing)
-        return 0;
+    int ret = -1;
+    struct stream *stream = p->real_stream;
+    if (p->create_dir_playlist && p->real_stream->is_local_file && !p->real_stream->is_directory) {
+        int flags = STREAM_ORIGIN_DIRECT | STREAM_READ | STREAM_LOCAL_FS_ONLY |
+                    STREAM_LESS_NOISE;
+        bstr dir = mp_dirname(p->real_stream->url);
+        if (dir.len)
+            stream = stream_create(bstrdup0(p, dir), flags, NULL, p->global);
+    }
+    if (!stream->is_directory)
+        goto done;
+    if (p->probing) {
+        ret = 0;
+        goto done;
+    }
 
-    char *path = mp_file_get_path(p, bstr0(p->real_stream->url));
+    char *path = mp_file_get_path(p, bstr0(stream->url));
     if (!path)
-        return -1;
+        goto done;
 
     struct stat dir_stack[MAX_DIR_STACK];
 
@@ -483,8 +495,12 @@ static int parse_dir(struct pl_parser *p)
     scan_dir(p, path, dir_stack, 0);
 
     p->add_base = false;
+    ret = p->pl->num_entries > 0 ? 0 : -1;
 
-    return p->pl->num_entries > 0 ? 0 : -1;
+done:
+    if (stream != p->real_stream)
+        free_stream(stream);
+    return ret;
 }
 
 #define MIME_TYPES(...) \
@@ -497,7 +513,6 @@ struct pl_format {
 };
 
 static const struct pl_format formats[] = {
-    {"directory", parse_dir},
     {"m3u", parse_m3u,
      MIME_TYPES("audio/mpegurl", "audio/x-mpegurl", "application/x-mpegurl")},
     {"ini", parse_ref_init},
@@ -505,6 +520,7 @@ static const struct pl_format formats[] = {
      MIME_TYPES("audio/x-scpls")},
     {"url", parse_url},
     {"txt", parse_txt},
+    {"directory", parse_dir},
 };
 
 static const struct pl_format *probe_pl(struct pl_parser *p)
@@ -549,6 +565,8 @@ static int open_file(struct demuxer *demuxer, enum demux_check check)
     p->force = force;
     p->check_level = check;
     p->probing = true;
+    p->create_dir_playlist = !demuxer->params->has_playlist && opts->autocreate_playlist;
+
     const struct pl_format *fmt = probe_pl(p);
     free_stream(p->s);
     playlist_clear(p->pl);
diff --git a/player/loadfile.c b/player/loadfile.c
index 93b5f11a1c..53500f4c30 100644
--- a/player/loadfile.c
+++ b/player/loadfile.c
@@ -1041,6 +1041,17 @@ void prepare_playlist(struct MPContext *mpctx, struct playlist *pl)
     if (opts->playlist_pos >= 0)
         pl->current = playlist_entry_from_index(pl, opts->playlist_pos);
 
+    for (int i = 0; i < pl->num_entries; ++i) {
+        if (!pl->entries[i]->playlist_path)
+            continue;
+        // If playlist_path exists as an element in the playlist itself, it means
+        // playlist was autogenerated.
+        if (!strcmp(pl->entries[i]->filename, pl->entries[i]->playlist_path)) {
+            pl->current = pl->entries[i];
+            break;
+        }
+    }
+
     if (opts->shuffle)
         playlist_shuffle(pl);
 
@@ -1144,6 +1155,7 @@ static MP_THREAD_VOID open_demux_thread(void *ctx)
         .stream_flags = mpctx->open_url_flags,
         .stream_record = true,
         .is_top_level = true,
+        .has_playlist = mpctx->playlist->num_entries > 1,
     };
     struct demuxer *demux =
         demux_open_url(mpctx->open_url, &p, mpctx->open_cancel, mpctx->global);