diff --git a/extensions/npm/src/npmView.ts b/extensions/npm/src/npmView.ts
index 5e7cab831ab..4947aa6fa5a 100644
--- a/extensions/npm/src/npmView.ts
+++ b/extensions/npm/src/npmView.ts
@@ -45,9 +45,9 @@ class PackageJSON extends TreeItem {
 
 	static getLabel(folderName: string, relativePath: string): string {
 		if (relativePath.length > 0) {
-			return path.join(folderName, relativePath, packageName);
+			return path.join(relativePath, packageName);
 		}
-		return path.join(folderName, packageName);
+		return packageName;
 	}
 
 	constructor(folder: Folder, relativePath: string) {