diff --git a/CHANGES.rst b/CHANGES.rst
index 66466cc..c38c9a7 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -6,7 +6,8 @@ Changelog
 2.4.1 (unreleased)
 ------------------
 
-- Nothing changed yet.
+- Support detecting a shadowing folder as module name (as part of `A005`).
+  [asfaltboy]
 
 
 2.4.0 (2024-04-01)
diff --git a/flake8_builtins.py b/flake8_builtins.py
index 1b3ef4f..e95d1db 100644
--- a/flake8_builtins.py
+++ b/flake8_builtins.py
@@ -293,7 +293,10 @@ def check_module_name(self, filename: str):
         if not self.module_names:
             return
         path = Path(filename)
-        module_name = path.name.removesuffix('.py')
+        if path.name == '__init__.py':
+            module_name = path.parent.name
+        else:
+            module_name = path.name.removesuffix('.py')
         if module_name in self.module_names:
             yield self.error(
                 None,
diff --git a/run_tests.py b/run_tests.py
index 057d356..26064e0 100644
--- a/run_tests.py
+++ b/run_tests.py
@@ -510,6 +510,7 @@ def test_tuple_unpacking():
 def test_module_name():
     source = ''
     check_code(source, expected_codes='A005', filename='./temp/logging.py')
+    check_code(source, expected_codes='A005', filename='./temp/typing/__init__.py')
 
 
 @pytest.mark.skipif(