diff --git a/src/Generators/ModelFactoryGenerator.php b/src/Generators/ModelFactoryGenerator.php
index 046adf4..0771116 100644
--- a/src/Generators/ModelFactoryGenerator.php
+++ b/src/Generators/ModelFactoryGenerator.php
@@ -12,7 +12,11 @@ class ModelFactoryGenerator extends BaseGenerator
      */
     public function generate(string $type = 'full')
     {
-        $modelFactoryPath = $this->makeDirectory(database_path('factories'));
+        $modelFactoryPath = database_path('factories');
+        if ($this->modelNames['model_path'] != 'Models') {
+            $modelFactoryPath .= '/'.$this->modelNames['model_path'];
+        }
+        $modelFactoryPath = $this->makeDirectory($modelFactoryPath);
         $modelFactoryClassPath = $modelFactoryPath.'/'.$this->modelNames['model_name'].'Factory.php';
 
         if ($this->files->exists($modelFactoryClassPath)) {
@@ -47,6 +51,12 @@ public function getContent(string $stubName)
             $modelFactoryFileContent = str_replace($string, $replacement, $modelFactoryFileContent);
         }
 
+        if ($this->modelNames['model_path'] != 'Models') {
+            $string = 'Database\Factories';
+            $replacement = $string.'\\'.str_replace('/', '\\', $this->modelNames['model_path']);
+            $modelFactoryFileContent = str_replace($string, $replacement, $modelFactoryFileContent);
+        }
+
         return $this->replaceStubString($modelFactoryFileContent);
     }
 }
diff --git a/tests/CrudApiMakeCommandTest.php b/tests/CrudApiMakeCommandTest.php
index 60a5360..dde115e 100644
--- a/tests/CrudApiMakeCommandTest.php
+++ b/tests/CrudApiMakeCommandTest.php
@@ -115,7 +115,7 @@ public function it_can_generate_crud_files_for_namespaced_model()
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
         $this->assertFileExists(app_path("Policies/{$modelName}Policy.php"));
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(base_path("tests/Feature/Api/Manage{$modelName}Test.php"));
@@ -148,7 +148,7 @@ public function it_can_generate_crud_files_with_parent_option()
         $localeConfig = config('app.locale');
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(app_path("Policies/{$parentName}/{$modelName}Policy.php"));
diff --git a/tests/CrudMakeCommandTest.php b/tests/CrudMakeCommandTest.php
index d34c46f..7f4441e 100644
--- a/tests/CrudMakeCommandTest.php
+++ b/tests/CrudMakeCommandTest.php
@@ -128,7 +128,7 @@ public function it_can_generate_crud_files_for_namespaced_model()
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
         $this->assertFileExists(app_path("Policies/{$modelName}Policy.php"));
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(base_path("tests/Feature/Manage{$modelName}Test.php"));
@@ -163,7 +163,7 @@ public function it_can_generate_crud_files_with_parent_option()
         $localeConfig = config('app.locale');
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(app_path("Policies/{$parentName}/{$modelName}Policy.php"));
diff --git a/tests/CrudSimpleMakeCommandTest.php b/tests/CrudSimpleMakeCommandTest.php
index de97f88..996c181 100644
--- a/tests/CrudSimpleMakeCommandTest.php
+++ b/tests/CrudSimpleMakeCommandTest.php
@@ -121,7 +121,7 @@ public function it_can_generate_crud_files_for_namespaced_model()
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
         $this->assertFileExists(app_path("Policies/{$modelName}Policy.php"));
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(base_path("tests/Feature/Manage{$modelName}Test.php"));
@@ -154,7 +154,7 @@ public function it_can_generate_crud_files_with_parent_option()
         $localeConfig = config('app.locale');
         $this->assertFileExists(resource_path("lang/{$localeConfig}/{$langName}.php"));
 
-        $this->assertFileExists(database_path("factories/{$modelName}Factory.php"));
+        $this->assertFileExists(database_path("factories/{$inputName}Factory.php"));
         $this->assertFileExists(base_path("tests/Unit/Models/{$modelName}Test.php"));
         $this->assertFileExists(base_path("tests/Unit/Policies/{$modelName}PolicyTest.php"));
         $this->assertFileExists(app_path("Policies/{$parentName}/{$modelName}Policy.php"));
diff --git a/tests/Generators/ModelFactoryGeneratorTest.php b/tests/Generators/ModelFactoryGeneratorTest.php
index 846d7ce..161efbf 100644
--- a/tests/Generators/ModelFactoryGeneratorTest.php
+++ b/tests/Generators/ModelFactoryGeneratorTest.php
@@ -40,6 +40,50 @@ public function definition()
         $this->assertEquals($modelFactoryContent, file_get_contents($modelFactoryPath));
     }
 
+    /** @test */
+    public function it_creates_correct_model_factory_content_with_namespaced_model()
+    {
+        $inputName = 'Entities/References/Category';
+        $modelName = 'Category';
+        $fullModelName = 'App\Entities\References\Category';
+        $pluralModelName = 'Categories';
+        $tableName = 'categories';
+        $langName = 'category';
+        $modelPath = 'Entities/References';
+        $factoryNamespace = 'Entities\References';
+
+        $this->artisan('make:crud-api', ['name' => $inputName, '--no-interaction' => true]);
+
+        $modelFactoryPath = database_path('factories/'.$inputName.'Factory.php');
+        $this->assertFileExists($modelFactoryPath);
+        $modelFactoryContent = "<?php
+
+namespace Database\Factories\\{$factoryNamespace};
+
+use App\Models\User;
+use {$fullModelName};
+use Illuminate\Database\Eloquent\Factories\Factory;
+
+class {$modelName}Factory extends Factory
+{
+    protected \$model = {$modelName}::class;
+
+    public function definition()
+    {
+        return [
+            'title'       => \$this->faker->word,
+            'description' => \$this->faker->sentence,
+            'creator_id'  => function () {
+                return User::factory()->create()->id;
+            },
+        ];
+    }
+}
+";
+        $this->assertEquals($modelFactoryContent, file_get_contents($modelFactoryPath));
+    }
+
+
     /** @test */
     public function it_creates_model_factory_file_content_from_published_stub()
     {