diff --git a/app/src/main/kotlin/com/syncflow/domain/sync/SyncEngine.kt b/app/src/main/kotlin/com/syncflow/domain/sync/SyncEngine.kt
index 5379bb6..3f90d99 100644
--- a/app/src/main/kotlin/com/syncflow/domain/sync/SyncEngine.kt
+++ b/app/src/main/kotlin/com/syncflow/domain/sync/SyncEngine.kt
@@ -68,6 +68,36 @@ class SyncEngine @Inject constructor(
         else
             LocalAccessor.JavaFile(File(localPath))
 
+    /**
+     * Recursively collect every FILE under [basePath] on the remote, descending into each
+     * subdirectory (one Depth:1 PROPFIND per directory). Directories are never returned as
+     * files — only their contents. The provider already drops the parent entry from each
+     * listing, so children-only is returned; the explicit self-path guard prevents any
+     * pathological infinite recursion. This MUST mirror the recursive local walk: otherwise
+     * files in remote subfolders appear absent and a TWO_WAY/MIRROR sync deletes them locally.
+     */
+    private suspend fun listRemoteFilesRecursive(
+        provider: CloudProvider,
+        basePath: String,
+        depth: Int = 0,
+    ): List<RemoteFile> {
+        if (depth > 64) {
+            Timber.w("SyncEngine: remote recursion depth limit hit at $basePath")
+            return emptyList()
+        }
+        val out = mutableListOf<RemoteFile>()
+        for (entry in provider.listFiles(basePath).getOrThrow()) {
+            if (entry.isDirectory) {
+                if (entry.path.trimEnd('/') != basePath.trimEnd('/')) {
+                    out += listRemoteFilesRecursive(provider, entry.path, depth + 1)
+                }
+            } else {
+                out += entry
+            }
+        }
+        return out
+    }
+
     private suspend fun performSync(
         pair: SyncPair,
         provider: CloudProvider,
@@ -76,8 +106,11 @@ class SyncEngine @Inject constructor(
     ): SyncResult {
         val accessor = makeAccessor(pair.localPath)
         var knownStates = fileStateDao.getForPair(pair.id).associateBy { it.relativePath }
-        val remoteFiles = provider.listFiles(pair.remotePath).getOrThrow()
-            .filter { !it.isDirectory }  // skip remote directories — they are not sync targets
+        // The local walk is RECURSIVE, so the remote listing must be too. Listing only the top
+        // level (Depth:1) made every file inside a remote subfolder look "missing from remote",
+        // which on a TWO_WAY/MIRROR pair triggered DELETE_LOCAL and wiped those files off the
+        // device (data loss). Walk the remote tree so subfolder files are matched, not deleted.
+        val remoteFiles = listRemoteFilesRecursive(provider, pair.remotePath)
             .associateBy { it.path.removePrefix(pair.remotePath).trimStart('/') }
         val localFiles = accessor.walkFiles(pair)
 
diff --git a/version.properties b/version.properties
index 919ad90..e0c9d89 100644
--- a/version.properties
+++ b/version.properties
@@ -1,2 +1,2 @@
-VERSION_NAME=1.0.67
-VERSION_CODE=68
+VERSION_NAME=1.0.68
+VERSION_CODE=69