diff --git a/index.js b/index.js
index 7367e97..bf6acc5 100644
--- a/index.js
+++ b/index.js
@@ -15,6 +15,7 @@ var defined = require('defined');
 var splicer = require('labeled-stream-splicer');
 var outpipe = require('outpipe');
 var isarray = require('isarray');
+var mkdirp = require('mkdirp');
 
 module.exports = function f (b, opts) {
     if (!opts) opts = {};
@@ -59,6 +60,7 @@ module.exports = function f (b, opts) {
             if (isarray(outopt)) {
                 outputs = outopt.map(function (o) {
                     if (isStream(o)) return o;
+                    mkdirp.sync(path.dirname(o)); // ensure the containing directory exists
                     return fs.createWriteStream(o);
                 });
             } else {
diff --git a/package.json b/package.json
index 0b28986..a96b528 100644
--- a/package.json
+++ b/package.json
@@ -13,6 +13,7 @@
     "isarray": "0.0.1",
     "labeled-stream-splicer": "^1.0.0",
     "minimist": "~0.2.0",
+    "mkdirp": "~0.5.1",
     "nub": "0.0.0",
     "outpipe": "^1.1.0",
     "reversepoint": "~0.2.0",
@@ -24,7 +25,6 @@
     "browser-unpack": "^1.1.1",
     "browserify": "^11.0.1",
     "concat-stream": "^1.4.6",
-    "mkdirp": "~0.5.0",
     "module-deps": "^3.9.0",
     "osenv": "^0.1.0",
     "tape": "^4.0.1",
diff --git a/test/outputs.js b/test/outputs.js
index 58a4b2b..5f22108 100644
--- a/test/outputs.js
+++ b/test/outputs.js
@@ -44,6 +44,36 @@ test('file outputs', function (t) {
     });
 });
 
+test('file outputs - new folder', function (t) {
+    var tmpdir = tmp() + '/factor-bundle-' + Math.random();
+    mkdirp.sync(tmpdir);
+
+    t.plan(2);
+    var b = browserify(files);
+    b.plugin(factor, {
+        outputs: [
+            path.join(tmpdir, 'deps/x.js'),
+            path.join(tmpdir, 'deps/y.js')
+        ]
+    });
+    var w = fs.createWriteStream(path.join(tmpdir, 'common.js'));
+    b.bundle().pipe(w);
+
+    w.on('finish', function () {
+        var common = fs.readFileSync(tmpdir + '/common.js', 'utf8');
+        var x = fs.readFileSync(path.join(tmpdir, 'deps/x.js'), 'utf8');
+        var y = fs.readFileSync(path.join(tmpdir, 'deps/y.js'), 'utf8');
+
+        vm.runInNewContext(common + x, { console: { log: function (msg) {
+            t.equal(msg, 55500);
+        } } });
+
+        vm.runInNewContext(common + y, { console: { log: function (msg) {
+            t.equal(msg, 333);
+        } } });
+    });
+});
+
 test('stream outputs', function (t) {
     var tmpdir = tmp() + '/factor-bundle-' + Math.random();
     mkdirp.sync(tmpdir);