diff --git a/src/diffusers/utils/dynamic_modules_utils.py b/src/diffusers/utils/dynamic_modules_utils.py
index 2a1cea10e1..856966dd29 100644
--- a/src/diffusers/utils/dynamic_modules_utils.py
+++ b/src/diffusers/utils/dynamic_modules_utils.py
@@ -299,7 +299,10 @@ def get_cached_module_file(
     # Download and cache module_file from the repo `pretrained_model_name_or_path` of grab it if it's a local file.
     pretrained_model_name_or_path = str(pretrained_model_name_or_path)
 
-    module_file_or_url = os.path.join(pretrained_model_name_or_path, module_file)
+    if subfolder is not None:
+        module_file_or_url = os.path.join(pretrained_model_name_or_path, subfolder, module_file)
+    else:
+        module_file_or_url = os.path.join(pretrained_model_name_or_path, module_file)
 
     if os.path.isfile(module_file_or_url):
         resolved_module_file = module_file_or_url
@@ -384,7 +387,11 @@ def get_cached_module_file(
                 if not os.path.exists(submodule_path / module_folder):
                     os.makedirs(submodule_path / module_folder)
             module_needed = f"{module_needed}.py"
-            shutil.copyfile(os.path.join(pretrained_model_name_or_path, module_needed), submodule_path / module_needed)
+            if subfolder is not None:
+                source_path = os.path.join(pretrained_model_name_or_path, subfolder, module_needed)
+            else:
+                source_path = os.path.join(pretrained_model_name_or_path, module_needed)
+            shutil.copyfile(source_path, submodule_path / module_needed)
     else:
         # Get the commit hash
         # TODO: we will get this info in the etag soon, so retrieve it from there and not here.