diff --git a/crates/erg_common/config.rs b/crates/erg_common/config.rs
index 6919a32f..9752066a 100644
--- a/crates/erg_common/config.rs
+++ b/crates/erg_common/config.rs
@@ -441,16 +441,16 @@ impl Input {
     }
 
     /// resolution order:
-    /// 1. `{path}.er`
-    /// 2. `{path}/__init__.er`
+    /// 1. `{path/to}.er`
+    /// 2. `{path/to}/__init__.er`
     fn resolve_local(&self, path: &Path) -> Result<PathBuf, std::io::Error> {
         let mut dir = self.dir();
         dir.push(path);
-        dir.set_extension("er"); // {path}.er
+        dir.set_extension("er"); // {path/to}.er
         let path = dir.canonicalize().or_else(|_| {
-            dir.pop();
-            dir.push(path);
-            dir.push("__init__.er"); // -> {path}/__init__.er
+            dir.pop(); // {path}
+            dir.push(path.iter().last().unwrap_or_default()); // {path/to}
+            dir.push("__init__.er"); // -> {path/to}/__init__.er
             dir.canonicalize()
         })?;
         Ok(normalize_path(path))
@@ -464,10 +464,10 @@ impl Input {
     }
 
     /// resolution order:
-    /// 1. `{path}.d.er`
-    /// 2. `{path}/__init__.d.er`
-    /// 3. `__pycache__/{path}.d.er`
-    /// 4. `{path}/__pycache__/__init__.d.er`
+    /// 1. `{path/to}.d.er`
+    /// 2. `{path/to}/__init__.d.er`
+    /// 3. `{path}/__pycache__/{to}.d.er`
+    /// 4. `{path/to}/__pycache__/__init__.d.er`
     fn _resolve_local_decl(&self, path: &Path) -> Result<PathBuf, std::io::Error> {
         let mut dir = self.dir();
         let mut comps = path.components();
@@ -477,29 +477,29 @@ impl Input {
         let last_path = Path::new(&last);
         dir.push(comps);
         dir.push(last_path);
-        dir.set_extension("d.er"); // {path}.d.er
+        dir.set_extension("d.er"); // {path/to}.d.er
         let path = dir
             .canonicalize()
             .or_else(|_| {
-                dir.pop(); // {path}.d.er -> ./
-                dir.push(last_path); // -> {path}
-                dir.push("__init__.d.er"); // -> {path}/__init__.d.er
+                dir.pop(); // {path/to}.d.er -> {path}
+                dir.push(last_path); // -> {path/to}
+                dir.push("__init__.d.er"); // -> {path/to}/__init__.d.er
                 dir.canonicalize()
             })
             .or_else(|_| {
+                dir.pop(); // -> {path/to}
                 dir.pop(); // -> {path}
-                dir.pop(); // -> ./
-                dir.push("__pycache__");
-                dir.push(last_path);
-                dir.set_extension("d.er"); // -> __pycache__/{path}.d.er
+                dir.push("__pycache__"); // -> {path}/__pycache__
+                dir.push(last_path); // -> {path}/__pycache__/{to}
+                dir.set_extension("d.er"); // -> {path}/__pycache__/{to}.d.er
                 dir.canonicalize()
             })
             .or_else(|_| {
-                dir.pop(); // -> __pycache__
-                dir.pop(); // -> ./
-                dir.push(last_path); // -> {path}
-                dir.push("__pycache__"); // -> {path}/__pycache__
-                dir.push("__init__.d.er"); // -> {path}/__pycache__/__init__.d.er
+                dir.pop(); // -> {path}/__pycache__
+                dir.pop(); // -> {path}
+                dir.push(last_path); // -> {path/to}
+                dir.push("__pycache__"); // -> {path/to}/__pycache__
+                dir.push("__init__.d.er"); // -> {path/to}/__pycache__/__init__.d.er
                 dir.canonicalize()
             })?;
         Ok(normalize_path(path))
@@ -551,10 +551,10 @@ impl Input {
     }
 
     /// resolution order:
-    /// 1. `./{path}.er`
-    /// 2. `./{path}/__init__.er`
-    /// 3. `std/{path}.er`
-    /// 4. `std/{path}/__init__.er`
+    /// 1. `./{path/to}.er`
+    /// 2. `./{path/to}/__init__.er`
+    /// 3. `std/{path/to}.er`
+    /// 4. `std/{path/to}/__init__.er`
     pub fn resolve_real_path(&self, path: &Path) -> Option<PathBuf> {
         if let Ok(path) = self.resolve_local(path) {
             Some(path)
@@ -575,16 +575,16 @@ impl Input {
     }
 
     /// resolution order:
-    /// 1.  `{path}.d.er`
-    /// 2.  `{path}/__init__.d.er`
-    /// 3.  `__pycache__/{path}.d.er`
-    /// 4.  `{path}/__pycache__/__init__.d.er`
-    /// 5.  `{path}.d/__init__.d.er`
-    /// 6.  `{path}.d/__pycache__/__init__.d.er`
-    /// 7.  `std/{path}.d.er`
-    /// 8.  `std/{path}/__init__.d.er`
-    /// 9.  `site-packages/__pycache__/{path}.d.er`
-    /// 10. `site-packages/{path}/__pycache__/__init__.d.er`
+    /// 1.  `{path/to}.d.er`
+    /// 2.  `{path/to}/__init__.d.er`
+    /// 3.  `{path}/__pycache__/{to}.d.er`
+    /// 4.  `{path/to}/__pycache__/__init__.d.er`
+    /// 5.  `{path.d/to.d}/__init__.d.er`
+    /// 6.  `{path.d/to.d}/__pycache__/__init__.d.er`
+    /// 7.  `std/{path/to}.d.er`
+    /// 8.  `std/{path/to}/__init__.d.er`
+    /// 9.  `site-packages/{path}/__pycache__/{to}.d.er`
+    /// 10. `site-packages/{path/to}/__pycache__/__init__.d.er`
     pub fn resolve_decl_path(&self, path: &Path) -> Option<PathBuf> {
         if let Ok(path) = self.resolve_local_decl(path) {
             Some(path)
diff --git a/crates/erg_compiler/context/register.rs b/crates/erg_compiler/context/register.rs
index 29bf46e0..98d8fec9 100644
--- a/crates/erg_compiler/context/register.rs
+++ b/crates/erg_compiler/context/register.rs
@@ -1793,12 +1793,12 @@ impl Context {
         }
     }
 
-    fn import_err(&self, __name__: &Str, loc: &impl Locational) -> TyCheckErrors {
+    fn import_err(&self, line: u32, __name__: &Str, loc: &impl Locational) -> TyCheckErrors {
         let mod_cache = self.mod_cache();
         let py_mod_cache = self.py_mod_cache();
         TyCheckErrors::from(TyCheckError::import_error(
             self.cfg.input.clone(),
-            line!() as usize,
+            line as usize,
             format!("module {__name__} not found"),
             loc.loc(),
             self.caused_by(),
@@ -1813,7 +1813,7 @@ impl Context {
         let path = match self.cfg.input.resolve_real_path(Path::new(&__name__[..])) {
             Some(path) => path,
             None => {
-                return Err(self.import_err(__name__, loc));
+                return Err(self.import_err(line!(), __name__, loc));
             }
         };
         self.check_mod_vis(path.as_path(), __name__, loc)?;
@@ -1834,8 +1834,14 @@ impl Context {
         __name__: &Str,
         loc: &impl Locational,
     ) -> CompileResult<()> {
-        if let Some(parent) = path.parent() {
-            if FileKind::from(path).is_simple_erg_file() && DirKind::from(parent).is_erg_module() {
+        let file_kind = FileKind::from(path);
+        let parent = if file_kind.is_init_er() {
+            path.parent().and_then(|p| p.parent())
+        } else {
+            path.parent()
+        };
+        if let Some(parent) = parent {
+            if DirKind::from(parent).is_erg_module() {
                 let parent = parent.join("__init__.er");
                 let parent_module = if let Some(parent) = self.get_mod_with_path(&parent) {
                     Some(parent)
@@ -1845,10 +1851,10 @@ impl Context {
                     self.get_mod_with_path(&parent)
                 };
                 if let Some(parent_module) = parent_module {
-                    let import_err = || {
+                    let import_err = |line| {
                         TyCheckErrors::from(TyCheckError::import_error(
                             self.cfg.input.clone(),
-                            line!() as usize,
+                            line as usize,
                             format!("module `{__name__}` is not public"),
                             loc.loc(),
                             self.caused_by(),
@@ -1856,13 +1862,18 @@ impl Context {
                             None,
                         ))
                     };
-                    let mod_name = path.file_stem().unwrap_or_default().to_string_lossy();
+                    let file_stem = if file_kind.is_init_er() {
+                        path.parent().unwrap().file_stem()
+                    } else {
+                        path.file_stem()
+                    };
+                    let mod_name = file_stem.unwrap_or_default().to_string_lossy();
                     if let Some((_, vi)) = parent_module.get_var_info(&mod_name) {
                         if !vi.vis.compatible(&ast::AccessModifier::Public, self) {
-                            return Err(import_err());
+                            return Err(import_err(line!()));
                         }
                     } else {
-                        return Err(import_err());
+                        return Err(import_err(line!()));
                     }
                 }
             }
@@ -1881,7 +1892,7 @@ impl Context {
         let src = cfg
             .input
             .try_read()
-            .map_err(|_| self.import_err(__name__, loc))?;
+            .map_err(|_| self.import_err(line!(), __name__, loc))?;
         let mut builder =
             HIRBuilder::new_with_cache(cfg, __name__, self.shared.as_ref().unwrap().clone());
         match builder.build(src, "exec") {
@@ -2040,7 +2051,7 @@ impl Context {
         let src = cfg
             .input
             .try_read()
-            .map_err(|_| self.import_err(__name__, loc))?;
+            .map_err(|_| self.import_err(line!(), __name__, loc))?;
         let mut builder = HIRBuilder::new_with_cache(
             cfg,
             self.mod_name(&path),
diff --git a/tests/should_err/foo/__init__.er b/tests/should_err/foo/__init__.er
index 07075e11..d51d4656 100644
--- a/tests/should_err/foo/__init__.er
+++ b/tests/should_err/foo/__init__.er
@@ -1 +1,2 @@
 .bar = import "./bar"
+.quux = import "./quux"
diff --git a/tests/should_err/foo/quux/__init__.er b/tests/should_err/foo/quux/__init__.er
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/should_err/import.er b/tests/should_err/import.er
index 5598bbe1..66d43cf8 100644
--- a/tests/should_err/import.er
+++ b/tests/should_err/import.er
@@ -2,3 +2,4 @@ _ = import "foo" # OK
 _ = import "foo/bar" # OK
 _ = import "foo/baz" # ERR
 _ = import "foo/qux" # ERR
+_ = import "foo/quux" # OK