diff --git a/src/Platform/Microsoft.Testing.Extensions.TrxReport/TrxReportEngine.cs b/src/Platform/Microsoft.Testing.Extensions.TrxReport/TrxReportEngine.cs
index 831e83767d..85dfe942d0 100644
--- a/src/Platform/Microsoft.Testing.Extensions.TrxReport/TrxReportEngine.cs
+++ b/src/Platform/Microsoft.Testing.Extensions.TrxReport/TrxReportEngine.cs
@@ -360,9 +360,9 @@ private void AddResultSummary(XElement testRun, string resultSummaryOutcome, str
         AddArtifactsToCollection(_artifactsByExtension, collectorDataEntries, runDeploymentRoot);
     }
 
-    private string CopyArtifactIntoTrxDirectoryAndReturnHrefValue(FileInfo artifact, string runDeploymentRoot)
+    private string CopyArtifactIntoTrxDirectoryAndReturnHrefValue(FileInfo artifact, string runDeploymentRoot, string? relativeResultsDirectory = null)
     {
-        string artifactDirectory = CreateOrGetTrxArtifactDirectory(runDeploymentRoot);
+        string artifactDirectory = CreateOrGetTrxArtifactDirectory(runDeploymentRoot, relativeResultsDirectory);
         string fileName = artifact.Name;
 
         string destination = Path.Combine(artifactDirectory, fileName);
@@ -386,9 +386,11 @@ private string CopyArtifactIntoTrxDirectoryAndReturnHrefValue(FileInfo artifact,
         return Path.Combine(_environment.MachineName, Path.GetFileName(destination));
     }
 
-    private string CreateOrGetTrxArtifactDirectory(string runDeploymentRoot)
+    private string CreateOrGetTrxArtifactDirectory(string runDeploymentRoot, string? relativeResultsDirectory = null)
     {
-        string directoryName = Path.Combine(_configuration.GetTestResultDirectory(), runDeploymentRoot, "In", _environment.MachineName);
+        string directoryName = relativeResultsDirectory is null
+            ? Path.Combine(_configuration.GetTestResultDirectory(), runDeploymentRoot, "In", _environment.MachineName)
+            : Path.Combine(_configuration.GetTestResultDirectory(), runDeploymentRoot, "In", relativeResultsDirectory, _environment.MachineName);
         if (!Directory.Exists(directoryName))
         {
             Directory.CreateDirectory(directoryName);
@@ -580,7 +582,7 @@ private SummaryCounts AddResults(TestNodeUpdateMessage[] testNodeUpdateMessages,
             {
                 resultFiles ??= new XElement("ResultFiles");
 
-                string href = CopyArtifactIntoTrxDirectoryAndReturnHrefValue(testFileArtifact.FileInfo, runDeploymentRoot);
+                string href = CopyArtifactIntoTrxDirectoryAndReturnHrefValue(testFileArtifact.FileInfo, runDeploymentRoot, executionId);
                 resultFiles.Add(new XElement(
                     "ResultFile",
                     new XAttribute("path", href)));
diff --git a/test/IntegrationTests/Microsoft.Testing.Platform.Acceptance.IntegrationTests/TrxTests.cs b/test/IntegrationTests/Microsoft.Testing.Platform.Acceptance.IntegrationTests/TrxTests.cs
index 956bd745bf..fe377cc261 100644
--- a/test/IntegrationTests/Microsoft.Testing.Platform.Acceptance.IntegrationTests/TrxTests.cs
+++ b/test/IntegrationTests/Microsoft.Testing.Platform.Acceptance.IntegrationTests/TrxTests.cs
@@ -1,6 +1,8 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT license. See LICENSE file in the project root for full license information.
 
+using System.Xml.Linq;
+
 namespace Microsoft.Testing.Platform.Acceptance.IntegrationTests;
 
 [TestClass]
@@ -36,6 +38,38 @@ public async Task Trx_WhenReportTrxIsSpecified_TrxReportIsGeneratedInDefaultLoca
         await AssertTrxReportWasGeneratedAsync(testHostResult, trxPathPattern, 1);
     }
 
+    [DynamicData(nameof(TargetFrameworks.AllForDynamicData), typeof(TargetFrameworks))]
+    [TestMethod]
+    public async Task Trx_WhenReportTrxAndResultsDirectoryAreSpecifiedWithArtifact_ArtifactIsCopiedUnderRelativeResultsDirectory(string tfm)
+    {
+        string fileName = Guid.NewGuid().ToString("N");
+        string testResultsPath = Path.Combine(AssetFixture.TargetAssetPath, Guid.NewGuid().ToString("N"));
+        var testHost = TestInfrastructure.TestHost.LocateFrom(AssetFixture.TargetAssetPath, TestAssetFixture.AssetName, tfm);
+        TestHostResult testHostResult = await testHost.ExecuteAsync(
+            $"--report-trx --report-trx-filename {fileName}.trx --results-directory \"{testResultsPath}\"",
+            new() { ["WITH_ARTIFACT"] = "1" },
+            cancellationToken: TestContext.CancellationToken);
+
+        testHostResult.AssertExitCodeIs(ExitCode.Success);
+
+        string[] trxFiles = Directory.GetFiles(testResultsPath, $"{fileName}.trx", SearchOption.AllDirectories);
+        Assert.HasCount(1, trxFiles, $"Expected exactly one trx file but found {trxFiles.Length}: {string.Join(", ", trxFiles)}");
+
+        var trxDocument = XDocument.Parse(File.ReadAllText(trxFiles[0]));
+        XNamespace ns = "http://microsoft.com/schemas/VisualStudio/TeamTest/2010";
+        XElement unitTestResult = trxDocument.Descendants(ns + "UnitTestResult").Single();
+        string relativeResultsDirectory = unitTestResult.Attribute("relativeResultsDirectory")!.Value;
+        string resultFilePath = unitTestResult.Descendants(ns + "ResultFile").Single().Attribute("path")!.Value;
+        string runDeploymentRoot = trxDocument.Descendants(ns + "Deployment").Single().Attribute("runDeploymentRoot")!.Value;
+        string normalizedResultFilePath = resultFilePath.Replace('\\', Path.DirectorySeparatorChar).Replace('/', Path.DirectorySeparatorChar);
+
+        string copiedArtifactPath = Path.Combine(testResultsPath, runDeploymentRoot, "In", relativeResultsDirectory, normalizedResultFilePath);
+        Assert.IsTrue(File.Exists(copiedArtifactPath), $"Expected copied artifact at '{copiedArtifactPath}' but it was not found.");
+
+        string legacyArtifactPath = Path.Combine(testResultsPath, runDeploymentRoot, "In", normalizedResultFilePath);
+        Assert.IsFalse(File.Exists(legacyArtifactPath), $"Artifact was copied to legacy path '{legacyArtifactPath}'.");
+    }
+
     [DynamicData(nameof(TargetFrameworks.NetForDynamicData), typeof(TargetFrameworks))]
     [TestMethod]
     public async Task Trx_WhenTestHostCrash_ErrorIsDisplayedInsideTheTrx(string tfm)
@@ -252,8 +286,16 @@ public async Task ExecuteRequestAsync(ExecuteRequestContext context)
         }
 
         var testMethodIdentifier = new TestMethodIdentifierProperty(string.Empty, string.Empty, "DummyClassName", "Test", 0, Array.Empty<string>(), string.Empty);
+        PropertyBag properties = new(PassedTestNodeStateProperty.CachedInstance, testMethodIdentifier);
+        if (Environment.GetEnvironmentVariable("WITH_ARTIFACT") == "1")
+        {
+            string artifactPath = Path.Combine(Directory.GetCurrentDirectory(), "test-artifact.txt");
+            File.WriteAllText(artifactPath, "artifact");
+            properties.Add(new FileArtifactProperty(new FileInfo(artifactPath), "TestMethod", "description"));
+        }
+
         await context.MessageBus.PublishAsync(this, new TestNodeUpdateMessage(context.Request.Session.SessionUid,
-            new TestNode() { Uid = "0", DisplayName = "Test", Properties = new(PassedTestNodeStateProperty.CachedInstance, testMethodIdentifier) }));
+            new TestNode() { Uid = "0", DisplayName = "Test", Properties = properties }));
         context.Complete();
     }
 }
diff --git a/test/UnitTests/Microsoft.Testing.Extensions.UnitTests/TrxTests.cs b/test/UnitTests/Microsoft.Testing.Extensions.UnitTests/TrxTests.cs
index 491a882efe..4315016f4a 100644
--- a/test/UnitTests/Microsoft.Testing.Extensions.UnitTests/TrxTests.cs
+++ b/test/UnitTests/Microsoft.Testing.Extensions.UnitTests/TrxTests.cs
@@ -469,6 +469,8 @@ public async Task TrxReportEngine_GenerateReportAsync_WithArtifactsByTestNode_Tr
         Assert.IsNotNull(memoryStream.TrxContent);
         XDocument xml = memoryStream.TrxContent;
         AssertTrxOutcome(xml, "Completed");
+        string relativeResultsDirectory = xml.Descendants().Single(x => x.Name.LocalName == "UnitTestResult").Attribute("relativeResultsDirectory")!.Value;
+        string expectedDestinationSuffix = Path.Combine("_MachineName_0001-01-01_00_00_00.0000000", "In", relativeResultsDirectory, "MachineName", "fileName");
         string trxContent = xml.ToString();
         string trxContentsPattern = @"
     <UnitTestResult .* testName=""TestMethod"" .* outcome=""Passed"" .*>
@@ -478,6 +480,13 @@ public async Task TrxReportEngine_GenerateReportAsync_WithArtifactsByTestNode_Tr
     </UnitTestResult>
  ";
         Assert.IsTrue(Regex.IsMatch(trxContent, trxContentsPattern));
+        _fileSystem.Verify(
+            x => x.CopyFile(
+                It.Is<string>(source => source.EndsWith("fileName", StringComparison.Ordinal)),
+                It.Is<string>(destination => destination.EndsWith(
+                    expectedDestinationSuffix,
+                    StringComparison.Ordinal))),
+            Times.Once);
     }
 
     [TestMethod]