diff --git a/backend/azureblob/azureblob.go b/backend/azureblob/azureblob.go
index 48915d6e9..f2421b51a 100644
--- a/backend/azureblob/azureblob.go
+++ b/backend/azureblob/azureblob.go
@@ -2230,8 +2230,8 @@ func (o *Object) prepareUpload(ctx context.Context, src fs.ObjectInfo, options [
 		return ui, fmt.Errorf("can't upload to root - need a container")
 	}
 	// Create parent dir/bucket if not saving directory marker
-	_, isDirMarker := o.meta[dirMetaKey]
-	if !isDirMarker {
+	_, ui.isDirMarker = o.meta[dirMetaKey]
+	if !ui.isDirMarker {
 		err = o.fs.mkdirParent(ctx, o.remote)
 		if err != nil {
 			return ui, err
diff --git a/backend/azureblob/azureblob_test.go b/backend/azureblob/azureblob_test.go
index f6122b892..c694bb219 100644
--- a/backend/azureblob/azureblob_test.go
+++ b/backend/azureblob/azureblob_test.go
@@ -31,9 +31,9 @@ func TestIntegration2(t *testing.T) {
 	if *fstest.RemoteName != "" {
 		t.Skip("Skipping as -remote set")
 	}
-	name := "TestAzureBlob:"
+	name := "TestAzureBlob"
 	fstests.Run(t, &fstests.Opt{
-		RemoteName:  name,
+		RemoteName:  name + ":",
 		NilObject:   (*Object)(nil),
 		TiersToTest: []string{"Hot", "Cool"},
 		ChunkedUpload: fstests.ChunkedUploadConfig{