diff --git a/docs/content/3.docs/2.directory-structure/10.plugins.md b/docs/content/3.docs/2.directory-structure/10.plugins.md
index 20a7327754..3959b234ef 100644
--- a/docs/content/3.docs/2.directory-structure/10.plugins.md
+++ b/docs/content/3.docs/2.directory-structure/10.plugins.md
@@ -12,6 +12,23 @@ Nuxt will automatically read the files in your `plugins` directory and load them
 All plugins in your `plugins/` directory are auto-registered, so you should not add them to your `nuxt.config` separately.
 ::
 
+## Which files are registered
+
+Only files at the top level of the `plugins/` directory (or index files within any subdirectories) will be registered as plugins.
+
+For example:
+
+```bash
+plugins
+ | - myPlugin.ts
+ | - myOtherPlugin
+ | --- supportingFile.ts
+ | --- componentToRegister.vue
+ | --- index.ts
+```
+
+Only `myPlugin.ts` and `myOtherPlugin/index.ts` would be registered.
+
 ## Creating plugins
 
 The only argument passed to a plugin is [`nuxtApp`](/docs/usage/nuxt-app).
diff --git a/docs/content/3.docs/2.directory-structure/5.composables.md b/docs/content/3.docs/2.directory-structure/5.composables.md
index b3d7988858..3e6594fd9e 100644
--- a/docs/content/3.docs/2.directory-structure/5.composables.md
+++ b/docs/content/3.docs/2.directory-structure/5.composables.md
@@ -8,7 +8,23 @@ head.title: Composables directory
 
 Nuxt 3 supports `composables/` directory to automatically import your Vue composables into your application using auto-imports!
 
-Example: (using named export)
+## How files are scanned
+
+Only files at the top level of the `composables/` directory (or index files within any subdirectories) will be scanned for composables.
+
+For example:
+
+```bash
+composables
+ | - useFoo.ts
+ | - useBar
+ | --- supportingFile.ts
+ | --- index.ts
+```
+
+Only `useFoo.ts` and `useBar/index.ts` would be searched for imports - and if the latter is a default export, it would be registered as `useBar` rather than `index`.
+
+## Example: (using named export)
 
 ```js [composables/useFoo.ts]
 import { useState } from '#app'
@@ -18,7 +34,7 @@ export const useFoo = () => {
 }
 ```
 
-Example: (using default export)
+## Example: (using default export)
 
 ```js [composables/use-foo.ts or composables/useFoo.ts]
 import { useState } from '#app'
diff --git a/packages/kit/src/resolve.ts b/packages/kit/src/resolve.ts
index 8de9f214e5..fa228918d6 100644
--- a/packages/kit/src/resolve.ts
+++ b/packages/kit/src/resolve.ts
@@ -104,7 +104,7 @@ export function tryResolvePath (path: string, opts: ResolveOptions = {}) {
   }
 }
 
-export async function resolveFiles (path: string, pattern: string) {
+export async function resolveFiles (path: string, pattern: string | string[]) {
   const files = await globby(pattern, {
     cwd: path,
     followSymbolicLinks: true
diff --git a/packages/nuxt3/src/auto-imports/composables.ts b/packages/nuxt3/src/auto-imports/composables.ts
index cd089bc90c..fe137ff6e2 100644
--- a/packages/nuxt3/src/auto-imports/composables.ts
+++ b/packages/nuxt3/src/auto-imports/composables.ts
@@ -1,37 +1,42 @@
 import { promises as fsp, existsSync } from 'fs'
-import { parse as parsePath, join } from 'pathe'
-import { globby } from 'globby'
+import { parse as parsePath } from 'pathe'
 import { findExports } from 'mlly'
 import { camelCase } from 'scule'
 import { AutoImport } from '@nuxt/schema'
+import { resolveFiles } from '@nuxt/kit'
 import { filterInPlace } from './utils'
 
 export async function scanForComposables (dir: string, autoImports: AutoImport[]) {
   if (!existsSync(dir)) { return }
 
-  const files = await globby(['*.{ts,js,tsx,jsx,mjs,cjs,mts,cts}'], { cwd: dir })
+  const files = await resolveFiles(dir, [
+    '*.{ts,js,mjs,cjs,mts,cts}',
+    '*/index.{ts,js,mjs,cjs,mts,cts}'
+  ])
 
   await Promise.all(
-    files.map(async (file) => {
-      const importPath = join(dir, file)
-
+    files.map(async (path) => {
       // Remove original entries from the same import (for build watcher)
-      filterInPlace(autoImports, i => i.from !== importPath)
+      filterInPlace(autoImports, i => i.from !== path)
 
-      const code = await fsp.readFile(join(dir, file), 'utf-8')
+      const code = await fsp.readFile(path, 'utf-8')
       const exports = findExports(code)
       const defaultExport = exports.find(i => i.type === 'default')
 
       if (defaultExport) {
-        autoImports.push({ name: 'default', as: camelCase(parsePath(file).name), from: importPath })
+        let name = parsePath(path).name
+        if (name === 'index') {
+          name = parsePath(path.split('/').slice(0, -1).join('/')).name
+        }
+        autoImports.push({ name: 'default', as: camelCase(name), from: path })
       }
       for (const exp of exports) {
         if (exp.type === 'named') {
           for (const name of exp.names) {
-            autoImports.push({ name, as: name, from: importPath })
+            autoImports.push({ name, as: name, from: path })
           }
         } else if (exp.type === 'declaration') {
-          autoImports.push({ name: exp.name, as: exp.name, from: importPath })
+          autoImports.push({ name: exp.name, as: exp.name, from: path })
         }
       }
     })
diff --git a/packages/nuxt3/src/core/app.ts b/packages/nuxt3/src/core/app.ts
index b2d9a9bd42..cc11dbb4a7 100644
--- a/packages/nuxt3/src/core/app.ts
+++ b/packages/nuxt3/src/core/app.ts
@@ -73,7 +73,10 @@ export async function resolveApp (nuxt: Nuxt, app: NuxtApp) {
   // Resolve plugins
   app.plugins = [
     ...nuxt.options.plugins,
-    ...await resolveFiles(nuxt.options.srcDir, 'plugins/**/*.{js,ts,mjs,cjs}')
+    ...await resolveFiles(nuxt.options.srcDir, [
+      'plugins/*.{ts,js,mjs,cjs,mts,cts}',
+      'plugins/*/index.*{ts,js,mjs,cjs,mts,cts}'
+    ])
   ].map(plugin => normalizePlugin(plugin))
 
   // Extend app