diff --git a/pytest_reportportal/service.py b/pytest_reportportal/service.py
index fceb5f44..75fa80e0 100644
--- a/pytest_reportportal/service.py
+++ b/pytest_reportportal/service.py
@@ -457,12 +457,31 @@ def _merge_leaf_types(self, test_tree: dict[str, Any], leaf_types: set, separato
                 self._merge_leaf_types(child_leaf, leaf_types, separator)
 
     def _merge_dirs(self, test_tree: dict[str, Any]) -> None:
+        """Merge directory and file leaves using configured separator.
+
+        :param test_tree: Test tree structure to merge
+        """
         self._merge_leaf_types(test_tree, {LeafType.DIR, LeafType.FILE}, self._config.rp_dir_path_separator)
 
-    def _merge_code_with_separator(self, test_tree: dict[str, Any], separator: str) -> None:
-        self._merge_leaf_types(test_tree, {LeafType.CODE, LeafType.FILE, LeafType.DIR, LeafType.SUITE}, separator)
+    def _merge_code_with_separator(self, test_tree: dict[str, Any], separator: str, is_bdd: bool = False) -> None:
+        """Merge code and suite leaves, respecting hierarchy flags.
+
+        :param test_tree: Test tree structure to merge
+        :param separator: Separator to use when merging names
+        :param is_bdd: If True, always merge FILE for BDD scenarios. Otherwise respect rp_hierarchy_test_file
+        """
+        types_to_merge = {LeafType.CODE, LeafType.SUITE}
+        if is_bdd or not self._config.rp_hierarchy_test_file:
+            types_to_merge.add(LeafType.FILE)
+        if not self._config.rp_hierarchy_dirs:
+            types_to_merge.add(LeafType.DIR)
+        self._merge_leaf_types(test_tree, types_to_merge, separator)
 
     def _merge_code(self, test_tree: dict[str, Any]) -> None:
+        """Merge code and suite leaves using double colon separator.
+
+        :param test_tree: Test tree structure to merge
+        """
         self._merge_code_with_separator(test_tree, "::")
 
     def _build_item_paths(self, leaf: dict[str, Any], path: list[dict[str, Any]]) -> None:
@@ -1185,7 +1204,7 @@ def start_bdd_scenario(self, feature: Feature, scenario: Scenario) -> None:
         self._generate_names(root_leaf)
         if not self._config.rp_hierarchy_code:
             try:
-                self._merge_code_with_separator(root_leaf, " - ")
+                self._merge_code_with_separator(root_leaf, " - ", is_bdd=True)
             except Exception as e:
                 LOGGER.exception(e)
         self._build_item_paths(root_leaf, [])
diff --git a/tests/integration/__init__.py b/tests/integration/__init__.py
index d57be797..3d59848e 100644
--- a/tests/integration/__init__.py
+++ b/tests/integration/__init__.py
@@ -35,6 +35,7 @@
     + [["examples/hierarchy/inner/test_inner_simple.py"]] * 7
     + [["examples/hierarchy/test_in_class_in_class.py"]]
     + [["examples/test_simple.py"]] * 2
+    + [["examples/hierarchy/inner/test_inner_simple.py"]]
 )
 
 # noinspection PyTypeChecker
@@ -65,6 +66,10 @@
     dict(**utils.DEFAULT_VARIABLES),
     dict({"rp_hierarchy_test_file": False}, **utils.DEFAULT_VARIABLES),
     dict({"rp_hierarchy_test_file": False, "rp_hierarchy_dirs_level": 1}, **utils.DEFAULT_VARIABLES),
+    dict(
+        {"rp_hierarchy_dirs": True, "rp_hierarchy_test_file": True, "rp_hierarchy_code": False},
+        **utils.DEFAULT_VARIABLES,
+    ),
 ]
 
 HIERARCHY_TEST_EXPECTED_ITEMS = [
@@ -271,6 +276,13 @@
     ],
     [{"name": "examples::test_simple", "item_type": "STEP", "parent_item_id": lambda x: x is None}],
     [{"name": "test_simple", "item_type": "STEP", "parent_item_id": lambda x: x is None}],
+    [
+        {"name": "examples", "item_type": "SUITE", "parent_item_id": lambda x: x is None},
+        {"name": "hierarchy", "item_type": "SUITE", "parent_item_id": lambda x: x.startswith("examples")},
+        {"name": "inner", "item_type": "SUITE", "parent_item_id": lambda x: x.startswith("hierarchy")},
+        {"name": "test_inner_simple.py", "item_type": "SUITE", "parent_item_id": lambda x: x.startswith("inner")},
+        {"name": "test_simple", "item_type": "STEP", "parent_item_id": lambda x: x.startswith("test_inner_simple.py")},
+    ],
 ]
 
 HIERARCHY_TEST_PARAMETERS = [