diff --git a/lua/nvim-tree/actions/movements.lua b/lua/nvim-tree/actions/movements.lua
index c2459c7755e..49a36c7760b 100644
--- a/lua/nvim-tree/actions/movements.lua
+++ b/lua/nvim-tree/actions/movements.lua
@@ -105,7 +105,7 @@ end
 function M.find_git_item(where)
   return function()
     local node_cur = lib.get_node_at_cursor()
-    local nodes_by_line = lib.get_nodes_by_line(core.get_explorer().nodes, core.get_nodes_starting_line())
+    local nodes_by_line = utils.get_nodes_by_line(core.get_explorer().nodes, core.get_nodes_starting_line())
 
     local cur, first, prev, nex = nil, nil, nil, nil
     for line, node in pairs(nodes_by_line) do
diff --git a/lua/nvim-tree/diagnostics.lua b/lua/nvim-tree/diagnostics.lua
index d6e23961179..5cf69d460bb 100644
--- a/lua/nvim-tree/diagnostics.lua
+++ b/lua/nvim-tree/diagnostics.lua
@@ -32,7 +32,7 @@ local function add_sign(linenr, severity)
     return
   end
   local sign_name = sign_names[severity][1]
-  vim.fn.sign_place(1, GROUP, sign_name, buf, { lnum = linenr + 1 })
+  vim.fn.sign_place(1, GROUP, sign_name, buf, { lnum = linenr })
 end
 
 local function from_nvim_lsp()
@@ -131,18 +131,17 @@ function M.update()
     local bufpath = utils.canonical_path(bufname)
     log.line("diagnostics", " bufpath '%s' severity %d", bufpath, severity)
     if 0 < severity and severity < 5 then
-      local node, line = utils.find_node(core.get_explorer().nodes, function(node)
+      local nodes_by_line = utils.get_nodes_by_line(core.get_explorer().nodes, core.get_nodes_starting_line())
+      for line, node in pairs(nodes_by_line) do
         local nodepath = utils.canonical_path(node.absolute_path)
-        log.line("diagnostics", "  checking nodepath '%s'", nodepath)
-        if M.show_on_dirs and not node.open then
-          return vim.startswith(bufpath, nodepath)
-        else
-          return nodepath == bufpath
+        log.line("diagnostics", "  %d checking nodepath '%s'", line, nodepath)
+        if M.show_on_dirs and vim.startswith(bufpath, nodepath) then
+          log.line("diagnostics", " matched fold node '%s'", node.absolute_path)
+          add_sign(line, severity)
+        elseif nodepath == bufpath then
+          log.line("diagnostics", " matched file node '%s'", node.absolute_path)
+          add_sign(line, severity)
         end
-      end)
-      if node then
-        log.line("diagnostics", " matched node '%s'", node.absolute_path)
-        add_sign(line, severity)
       end
     end
   end
diff --git a/lua/nvim-tree/lib.lua b/lua/nvim-tree/lib.lua
index 37e0b0c2c1b..649a468bbc3 100644
--- a/lua/nvim-tree/lib.lua
+++ b/lua/nvim-tree/lib.lua
@@ -3,30 +3,12 @@ local api = vim.api
 local renderer = require "nvim-tree.renderer"
 local view = require "nvim-tree.view"
 local core = require "nvim-tree.core"
+local utils = require "nvim-tree.utils"
 
 local M = {
   target_winid = nil,
 }
 
-function M.get_nodes_by_line(nodes_all, line_start)
-  local nodes_by_line = {}
-  local line = line_start
-  local function iter(nodes)
-    for _, node in ipairs(nodes) do
-      nodes_by_line[line] = node
-      line = line + 1
-      if node.open == true then
-        local child = iter(node.nodes)
-        if child ~= nil then
-          return child
-        end
-      end
-    end
-  end
-  iter(nodes_all)
-  return nodes_by_line
-end
-
 function M.get_node_at_cursor()
   if not core.get_explorer() then
     return
@@ -39,14 +21,14 @@ function M.get_node_at_cursor()
   local line = cursor[1]
   if view.is_help_ui() then
     local help_lines = require("nvim-tree.renderer.help").compute_lines()
-    local help_text = M.get_nodes_by_line(help_lines, 1)[line]
+    local help_text = utils.get_nodes_by_line(help_lines, 1)[line]
     return { name = help_text }
   else
     if line == 1 and core.get_explorer().cwd ~= "/" and view.is_root_folder_visible() then
       return { name = ".." }
     end
 
-    return M.get_nodes_by_line(core.get_explorer().nodes, core.get_nodes_starting_line())[line]
+    return utils.get_nodes_by_line(core.get_explorer().nodes, core.get_nodes_starting_line())[line]
   end
 end
 
diff --git a/lua/nvim-tree/utils.lua b/lua/nvim-tree/utils.lua
index f557c9332dd..017c5765c22 100644
--- a/lua/nvim-tree/utils.lua
+++ b/lua/nvim-tree/utils.lua
@@ -123,6 +123,29 @@ function M.find_node(nodes, fn)
   return node, i
 end
 
+-- return visible nodes indexed by line
+-- @param nodes_all list of node
+-- @param line_start first index
+---@return table
+function M.get_nodes_by_line(nodes_all, line_start)
+  local nodes_by_line = {}
+  local line = line_start
+  local function iter(nodes)
+    for _, node in ipairs(nodes) do
+      nodes_by_line[line] = node
+      line = line + 1
+      if node.open == true then
+        local child = iter(node.nodes)
+        if child ~= nil then
+          return child
+        end
+      end
+    end
+  end
+  iter(nodes_all)
+  return nodes_by_line
+end
+
 ---Matching executable files in Windows.
 ---@param ext string
 ---@return boolean