diff --git a/mod/assign/locallib.php b/mod/assign/locallib.php
index 3147f455eac..c2ad1613ee3 100644
--- a/mod/assign/locallib.php
+++ b/mod/assign/locallib.php
@@ -2965,10 +2965,14 @@ class assign {
             $prefix = clean_filename($prefix . '_' . $this->get_uniqueid_for_user($user->id) . '_');
         }
 
-        $subtype = $plugin->get_subtype();
-        $type = $plugin->get_type();
-        $prefix = $prefix . $subtype . '_' . $type . '_';
-
+        // Only prefix files if downloadasfolders user preference is NOT set.
+        if (!get_user_preferences('assign_downloadasfolders', 1)) {
+            $subtype = $plugin->get_subtype();
+            $type = $plugin->get_type();
+            $prefix = $prefix . $subtype . '_' . $type . '_';
+        } else {
+            $prefix = "";
+        }
         $result = str_replace('@@PLUGINFILE@@/', $prefix, $text);
 
         return $result;