diff --git a/pkg/local_object_storage/blobstor/fstree/fstree.go b/pkg/local_object_storage/blobstor/fstree/fstree.go
index 41da5e8fc..3ee125815 100644
--- a/pkg/local_object_storage/blobstor/fstree/fstree.go
+++ b/pkg/local_object_storage/blobstor/fstree/fstree.go
@@ -2,13 +2,13 @@ package fstree
 
 import (
 	"crypto/sha256"
-	"encoding/hex"
 	"errors"
 	"io/ioutil"
 	"os"
 	"path"
 	"strings"
 
+	"github.com/nspcc-dev/neofs-api-go/pkg/container"
 	objectSDK "github.com/nspcc-dev/neofs-api-go/pkg/object"
 )
 
@@ -40,9 +40,30 @@ const (
 var ErrFileNotFound = errors.New("file not found")
 
 func stringifyAddress(addr *objectSDK.Address) string {
-	h := sha256.Sum256([]byte(addr.String()))
+	return addr.ObjectID().String() + "." + addr.ContainerID().String()
+}
 
-	return hex.EncodeToString(h[:])
+func addressFromString(s string) (*objectSDK.Address, error) {
+	ss := strings.SplitN(s, ".", 2)
+	if len(ss) != 2 {
+		return nil, errors.New("invalid address")
+	}
+
+	oid := objectSDK.NewID()
+	if err := oid.Parse(ss[0]); err != nil {
+		return nil, err
+	}
+
+	cid := container.NewID()
+	if err := cid.Parse(ss[1]); err != nil {
+		return nil, err
+	}
+
+	addr := objectSDK.NewAddress()
+	addr.SetObjectID(oid)
+	addr.SetContainerID(cid)
+
+	return addr, nil
 }
 
 // Iterate iterates over all stored objects.
@@ -52,7 +73,7 @@ func (t *FSTree) Iterate(f func(addr *objectSDK.Address, data []byte) error) err
 
 func (t *FSTree) iterate(depth int, curPath []string, f func(*objectSDK.Address, []byte) error) error {
 	curName := strings.Join(curPath[1:], "")
-	des, err := ioutil.ReadDir(curName)
+	des, err := ioutil.ReadDir(path.Join(curPath...))
 	if err != nil {
 		return err
 	}
@@ -71,13 +92,15 @@ func (t *FSTree) iterate(depth int, curPath []string, f func(*objectSDK.Address,
 			}
 		}
 
-		addr := objectSDK.NewAddress()
-		err := addr.Parse(curName + des[i].Name())
+		if depth != t.Depth {
+			continue
+		}
+
+		addr, err := addressFromString(curName + des[i].Name())
 		if err != nil {
 			continue
 		}
 
-		curPath = append(curPath, des[i].Name())
 		data, err := ioutil.ReadFile(path.Join(curPath...))
 		if err != nil {
 			return err
diff --git a/pkg/local_object_storage/blobstor/fstree/fstree_test.go b/pkg/local_object_storage/blobstor/fstree/fstree_test.go
new file mode 100644
index 000000000..2b87f5299
--- /dev/null
+++ b/pkg/local_object_storage/blobstor/fstree/fstree_test.go
@@ -0,0 +1,141 @@
+package fstree
+
+import (
+	"crypto/rand"
+	"crypto/sha256"
+	"errors"
+	"os"
+	"path"
+	"testing"
+
+	"github.com/nspcc-dev/neofs-api-go/pkg/container"
+	objectSDK "github.com/nspcc-dev/neofs-api-go/pkg/object"
+	"github.com/stretchr/testify/require"
+)
+
+func testCID() *container.ID {
+	cs := [sha256.Size]byte{}
+	_, _ = rand.Read(cs[:])
+
+	id := container.NewID()
+	id.SetSHA256(cs)
+
+	return id
+}
+
+func testOID() *objectSDK.ID {
+	cs := [sha256.Size]byte{}
+	_, _ = rand.Read(cs[:])
+
+	id := objectSDK.NewID()
+	id.SetSHA256(cs)
+
+	return id
+}
+
+func testAddress() *objectSDK.Address {
+	a := objectSDK.NewAddress()
+	a.SetObjectID(testOID())
+	a.SetContainerID(testCID())
+
+	return a
+}
+
+func TestAddressToString(t *testing.T) {
+	addr := testAddress()
+	s := stringifyAddress(addr)
+	actual, err := addressFromString(s)
+	require.NoError(t, err)
+	require.Equal(t, addr, actual)
+}
+
+func TestFSTree(t *testing.T) {
+	tmpDir := path.Join(os.TempDir(), "neofs.fstree.test")
+	require.NoError(t, os.Mkdir(tmpDir, os.ModePerm))
+	t.Cleanup(func() { require.NoError(t, os.RemoveAll(tmpDir)) })
+
+	fs := FSTree{
+		Info: Info{
+			Permissions: os.ModePerm,
+			RootPath:    tmpDir,
+		},
+		Depth:      2,
+		DirNameLen: 2,
+	}
+
+	const count = 3
+	var addrs []*objectSDK.Address
+
+	store := map[string][]byte{}
+
+	for i := 0; i < count; i++ {
+		a := testAddress()
+		addrs = append(addrs, a)
+
+		data := make([]byte, 10)
+		_, _ = rand.Read(data[:])
+		require.NoError(t, fs.Put(a, data))
+		store[a.String()] = data
+	}
+
+	t.Run("get", func(t *testing.T) {
+		for _, a := range addrs {
+			actual, err := fs.Get(a)
+			require.NoError(t, err)
+			require.Equal(t, store[a.String()], actual)
+		}
+
+		_, err := fs.Get(testAddress())
+		require.Error(t, err)
+	})
+
+	t.Run("exists", func(t *testing.T) {
+		for _, a := range addrs {
+			_, err := fs.Exists(a)
+			require.NoError(t, err)
+		}
+
+		_, err := fs.Exists(testAddress())
+		require.Error(t, err)
+	})
+
+	t.Run("iterate", func(t *testing.T) {
+		n := 0
+		err := fs.Iterate(func(addr *objectSDK.Address, data []byte) error {
+			n++
+			expected, ok := store[addr.String()]
+			require.True(t, ok, "object %s was not found", addr.String())
+			require.Equal(t, data, expected)
+			return nil
+		})
+
+		require.NoError(t, err)
+		require.Equal(t, count, n)
+
+		t.Run("leave early", func(t *testing.T) {
+			n := 0
+			errStop := errors.New("stop")
+			err := fs.Iterate(func(addr *objectSDK.Address, data []byte) error {
+				if n++; n == count-1 {
+					return errStop
+				}
+				return nil
+			})
+
+			require.True(t, errors.Is(err, errStop))
+			require.Equal(t, count-1, n)
+		})
+	})
+
+	t.Run("delete", func(t *testing.T) {
+		require.NoError(t, fs.Delete(addrs[0]))
+
+		_, err := fs.Exists(addrs[0])
+		require.Error(t, err)
+
+		_, err = fs.Exists(addrs[1])
+		require.NoError(t, err)
+
+		require.Error(t, fs.Delete(testAddress()))
+	})
+}