diff --git a/metadata-ingestion/src/datahub/ingestion/source/s3/source.py b/metadata-ingestion/src/datahub/ingestion/source/s3/source.py
index b5bc08912ee94..b1554ad127b7a 100644
--- a/metadata-ingestion/src/datahub/ingestion/source/s3/source.py
+++ b/metadata-ingestion/src/datahub/ingestion/source/s3/source.py
@@ -866,8 +866,21 @@ def get_folder_info(
         Returns:
         List[Folder]: A list of Folder objects representing the partitions found.
         """
+
+        def _is_allowed_path(path_spec_: PathSpec, s3_uri: str) -> bool:
+            allowed = path_spec_.allowed(s3_uri)
+            if not allowed:
+                logger.debug(f"File {s3_uri} not allowed and skipping")
+                self.report.report_file_dropped(s3_uri)
+            return allowed
+
+        s3_objects = (
+            obj
+            for obj in bucket.objects.filter(Prefix=prefix).page_size(PAGE_SIZE)
+            if _is_allowed_path(path_spec, f"s3://{obj.bucket_name}/{obj.key}")
+        )
+
         partitions: List[Folder] = []
-        s3_objects = bucket.objects.filter(Prefix=prefix).page_size(PAGE_SIZE)
         grouped_s3_objects_by_dirname = groupby_unsorted(
             s3_objects,
             key=lambda obj: obj.key.rsplit("/", 1)[0],
@@ -878,10 +891,6 @@ def get_folder_info(
             modification_time = None
 
             for item in group:
-                file_path = self.create_s3_path(item.bucket_name, item.key)
-                if not path_spec.allowed(file_path):
-                    logger.debug(f"File {file_path} not allowed and skipping")
-                    continue
                 file_size += item.size
                 if creation_time is None or item.last_modified < creation_time:
                     creation_time = item.last_modified
diff --git a/metadata-ingestion/tests/unit/data_lake/test_path_spec.py b/metadata-ingestion/tests/unit/data_lake/test_path_spec.py
new file mode 100644
index 0000000000000..305f4b72f5329
--- /dev/null
+++ b/metadata-ingestion/tests/unit/data_lake/test_path_spec.py
@@ -0,0 +1,31 @@
+import pytest
+
+from datahub.ingestion.source.data_lake_common.path_spec import PathSpec
+
+
+@pytest.mark.parametrize(
+    "include, s3_uri, expected",
+    [
+        (
+            "s3://bucket/{table}/{partition0}/*.csv",
+            "s3://bucket/table/p1/test.csv",
+            True,
+        ),
+        (
+            "s3://bucket/{table}/{partition0}/*.csv",
+            "s3://bucket/table/p1/p2/test.csv",
+            False,
+        ),
+    ],
+)
+def test_allowed_ignores_depth_mismatch(
+    include: str, s3_uri: str, expected: bool
+) -> None:
+    # arrange
+    path_spec = PathSpec(
+        include=include,
+        table_name="{table}",
+    )
+
+    # act, assert
+    assert path_spec.allowed(s3_uri) == expected
diff --git a/metadata-ingestion/tests/unit/s3/test_s3_source.py b/metadata-ingestion/tests/unit/s3/test_s3_source.py
index 902987213e122..e91874dcb4236 100644
--- a/metadata-ingestion/tests/unit/s3/test_s3_source.py
+++ b/metadata-ingestion/tests/unit/s3/test_s3_source.py
@@ -1,6 +1,6 @@
 from datetime import datetime
 from typing import List, Tuple
-from unittest.mock import Mock
+from unittest.mock import Mock, call
 
 import pytest
 
@@ -12,6 +12,18 @@
 from datahub.ingestion.source.s3.source import S3Source, partitioned_folder_comparator
 
 
+def _get_s3_source(path_spec_: PathSpec) -> S3Source:
+    return S3Source.create(
+        config_dict={
+            "path_spec": {
+                "include": path_spec_.include,
+                "table_name": path_spec_.table_name,
+            },
+        },
+        ctx=PipelineContext(run_id="test-s3"),
+    )
+
+
 def test_partition_comparator_numeric_folder_name():
     folder1 = "3"
     folder2 = "12"
@@ -249,18 +261,6 @@ def test_get_folder_info():
     """
     Test S3Source.get_folder_info returns the latest file in each folder
     """
-
-    def _get_s3_source(path_spec_: PathSpec) -> S3Source:
-        return S3Source.create(
-            config_dict={
-                "path_spec": {
-                    "include": path_spec_.include,
-                    "table_name": path_spec_.table_name,
-                },
-            },
-            ctx=PipelineContext(run_id="test-s3"),
-        )
-
     # arrange
     path_spec = PathSpec(
         include="s3://my-bucket/{table}/{partition0}/*.csv",
@@ -303,3 +303,50 @@ def _get_s3_source(path_spec_: PathSpec) -> S3Source:
     assert len(res) == 2
     assert res[0].sample_file == "s3://my-bucket/my-folder/dir1/0002.csv"
     assert res[1].sample_file == "s3://my-bucket/my-folder/dir2/0001.csv"
+
+
+def test_get_folder_info_ignores_disallowed_path(
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """
+    Test S3Source.get_folder_info skips disallowed files and logs a message
+    """
+    # arrange
+    path_spec = Mock(
+        spec=PathSpec,
+        include="s3://my-bucket/{table}/{partition0}/*.csv",
+        table_name="{table}",
+    )
+    path_spec.allowed = Mock(return_value=False)
+
+    bucket = Mock()
+    bucket.objects.filter().page_size = Mock(
+        return_value=[
+            Mock(
+                bucket_name="my-bucket",
+                key="my-folder/ignore/this/path/0001.csv",
+                creation_time=datetime(2025, 1, 1, 1),
+                last_modified=datetime(2025, 1, 1, 1),
+                size=100,
+            ),
+        ]
+    )
+
+    s3_source = _get_s3_source(path_spec)
+
+    # act
+    res = s3_source.get_folder_info(path_spec, bucket, prefix="/my-folder")
+
+    # assert
+    expected_called_s3_uri = "s3://my-bucket/my-folder/ignore/this/path/0001.csv"
+
+    assert path_spec.allowed.call_args_list == [call(expected_called_s3_uri)], (
+        "File should be checked if it's allowed"
+    )
+    assert f"File {expected_called_s3_uri} not allowed and skipping" in caplog.text, (
+        "Dropped file should be logged"
+    )
+    assert s3_source.get_report().filtered == [expected_called_s3_uri], (
+        "Dropped file should be in the report.filtered"
+    )
+    assert res == [], "Dropped file should not be in the result"