diff --git a/dm/host/hle_fs.c b/dm/host/hle_fs.c
index 92fc95619d..5057229f15 100644
--- a/dm/host/hle_fs.c
+++ b/dm/host/hle_fs.c
@@ -982,7 +982,9 @@ HLE_FORCE("_ZN2nn2fs13OpenDirectoryEPNS0_15DirectoryHandleEPKci", "fsp-srv → o
     }
     HP(path); DIR *d = opendir(hp);
     if (!d) return err_res("opendir", hp);
-    dirh_t *h = calloc(1, sizeof *h); h->d = d; strlcpy(h->path, hp, sizeof h->path); h->mode = mode;
+    dirh_t *h = calloc(1, sizeof *h);
+    if (!h) { int e = errno; closedir(d); errno = e; return err_res("directory allocation", hp); }
+    h->d = d; strlcpy(h->path, hp, sizeof h->path); h->mode = mode;
     const char *c = strchr(path, ':');
     if (c) for (int i = 0; i < g_nmnt; i++) if (g_mnt[i].overlay[0] && strlen(g_mnt[i].name) == (size_t)(c - path) && !strncmp(g_mnt[i].name, path, (size_t)(c - path))) {
         dir_snapshot(h, &g_mnt[i], c + 1); break;
diff --git a/dm/host/tests/Makefile b/dm/host/tests/Makefile
index b639c75ac9..8766efb8d2 100644
--- a/dm/host/tests/Makefile
+++ b/dm/host/tests/Makefile
@@ -110,6 +110,13 @@ $(B)/t_thread_leak: t_thread_leak.c ../thread.c ../dm.h $(GAME_H) | $(B)
 	$(CLANG) -O1 -Wno-unused-function -I.. $(GINC) -o $@ t_thread_leak.c
 $(B)/t_fs: t_fs.c t_fs_stub.c ../hle_fs.c ../save_sync.c ../save_sync.h ../hle_bigstack.c ../hle.h ../dm.h $(GAME_H) | $(B)
 	$(CLANG) -O1 -Wno-unused-function -I.. $(GINC) -o $@ t_fs.c t_fs_stub.c ../hle_bigstack.c ../save_sync.c
+# Inject only the folder handle allocation; directory I/O remains real.
+$(B)/t_fs_directory: t_fs_directory.c t_fs_stub.c ../hle_fs.c ../romfs_image.h ../save_sync.c ../save_sync.h ../hle_bigstack.c ../hle.h ../dm.h $(GAME_H) | $(B)
+	$(CLANG) -O1 -g -Wall -Werror -Wno-unused-function -I.. $(GINC) -o $@ t_fs_directory.c t_fs_stub.c ../hle_bigstack.c ../save_sync.c
+.PHONY: fs-directory
+fs-directory: $(B)/t_fs_directory
+	TMPDIR="$(abspath $(B))" $(B)/t_fs_directory
+run: fs-directory
 $(B)/t_fs_commit_list: t_fs_commit_list.c t_fs_stub.c ../hle_fs.c ../save_sync.c ../save_sync.h ../hle_bigstack.c ../hle.h ../dm.h $(GAME_H) | $(B)
 	$(CLANG) -O1 -Wall -Wno-unused-function -I.. $(GINC) -o $@ t_fs_commit_list.c t_fs_stub.c ../hle_bigstack.c ../save_sync.c
 $(B)/t_fs_commit_list_tsan: t_fs_commit_list.c t_fs_stub.c ../hle_fs.c ../save_sync.c ../save_sync.h ../hle_bigstack.c ../hle.h ../dm.h $(GAME_H) | $(B)
diff --git a/dm/host/tests/t_fs_directory.c b/dm/host/tests/t_fs_directory.c
new file mode 100644
index 0000000000..6d177ffa8e
--- /dev/null
+++ b/dm/host/tests/t_fs_directory.c
@@ -0,0 +1,95 @@
+// Real folder-backed OpenDirectory: allocation failure must return an error,
+// leave the output untouched, and close the DIR already opened by the handler.
+#include <dirent.h>
+#include <errno.h>
+#include <stdlib.h>
+
+static void *directory_calloc(size_t count, size_t size);
+static DIR *directory_opendir(const char *path);
+static int directory_closedir(DIR *d);
+#define calloc directory_calloc
+#define opendir directory_opendir
+#define closedir directory_closedir
+#include "../hle_fs.c"
+#undef closedir
+#undef opendir
+#undef calloc
+
+struct dm_flags g_flag;
+uint64_t g_t0_ns;
+uint64_t now_ns(void) { return 0; }
+void dm_guest_write_prepare(void *a, size_t n) { (void)a; (void)n; }
+
+static int fail_handle, failed_allocations, opened_fd = -1;
+static void *directory_calloc(size_t count, size_t size) {
+    if (fail_handle && count == 1 && size == sizeof(dirh_t)) {
+        failed_allocations++;
+        errno = ENOMEM;
+        return NULL;
+    }
+    return calloc(count, size);
+}
+static DIR *directory_opendir(const char *path) {
+    DIR *d = opendir(path);
+    if (d) opened_fd = dirfd(d);
+    return d;
+}
+
+static int directory_closedir(DIR *d) {
+    int r = closedir(d);
+    // Successful cleanup may change errno; it must not hide the allocation error.
+    if (fail_handle) errno = ENOENT;
+    return r;
+}
+
+static int checks, fails;
+#define CHECK(c, text) do { checks++; int ok = !!(c); fails += !ok; printf("%s %s\n", ok ? "PASS" : "FAIL", text); } while (0)
+
+int main(void) {
+    char root[1024], file[1100];
+    const char *tmp = getenv("TMPDIR");
+    snprintf(root, sizeof root, "%s/t_fs_directory.XXXXXX", tmp ? tmp : "/private/tmp");
+    if (!mkdtemp(root)) { perror("mkdtemp"); return 2; }
+    snprintf(file, sizeof file, "%s/entry", root);
+    FILE *f = fopen(file, "w");
+    if (!f) { perror("fopen"); rmdir(root); return 2; }
+    fputs("hello", f); fclose(f);
+    CHECK(mount("test", root, 0) == RES_OK, "mount the synthetic folder");
+
+    const uint64_t initial[] = {0, 0x1234};
+    for (size_t i = 0; i < sizeof initial / sizeof initial[0]; i++) {
+        uint64_t h = initial[i];
+        opened_fd = -1; failed_allocations = 0; fail_handle = 1;
+        Result r = h_fs_OpenDirectory(&h, "test:/", DIRMODE_DIR | DIRMODE_FILE);
+        int error = errno;
+        fail_handle = 0;
+        CHECK(failed_allocations == 1, "inject failure into the directory-handle allocation");
+        CHECK(r == RES_FAIL, "failed allocation returns the filesystem resource failure");
+        CHECK(error == ENOMEM, "allocation error survives directory cleanup");
+        CHECK(h == initial[i], "failed open leaves the caller's handle untouched");
+        CHECK(opened_fd >= 0, "the handler opened a real directory before allocation failed");
+        errno = 0;
+        CHECK(fcntl(opened_fd, F_GETFD) == -1 && errno == EBADF, "failed open closes the real directory descriptor");
+    }
+    h_fs_CloseDirectory(0);
+
+    uint64_t h = 0;
+    Result r = h_fs_OpenDirectory(&h, "test:/", DIRMODE_DIR | DIRMODE_FILE);
+    int fd = opened_fd;
+    CHECK(r == RES_OK && h != 0, "a later successful open publishes a handle");
+    if (r == RES_OK && h) {
+        CHECK(fcntl(fd, F_GETFD) >= 0, "successful open keeps its directory descriptor alive");
+        int64_t count = -1;
+        CHECK(h_fs_DirCount(&count, h) == RES_OK && count == 1, "the successful handle counts the one synthetic file");
+        DirectoryEntry entry[2] = {0};
+        CHECK(h_fs_ReadDirectory(&count, entry, h, 2) == RES_OK && count == 1 &&
+              !strcmp(entry[0].name, "entry") && entry[0].type == ENT_FILE && entry[0].size == 5,
+              "the successful handle reads the file name, type and size");
+        h_fs_CloseDirectory(h);
+        errno = 0;
+        CHECK(fcntl(fd, F_GETFD) == -1 && errno == EBADF, "CloseDirectory releases the successful handle's descriptor");
+    }
+    CHECK(!unlink(file) && !rmdir(root), "remove the synthetic fixture");
+    printf("== fs directory: %d checks, %d failed ==\n", checks, fails);
+    return fails != 0;
+}
diff --git a/docs/agents/symptoms.md b/docs/agents/symptoms.md
index 84313c92a7..937924bc39 100644
--- a/docs/agents/symptoms.md
+++ b/docs/agents/symptoms.md
@@ -144,6 +144,7 @@ One line per symptom in the [subsystem references](../reference/): what you see
 - a call the host hooks under its newer name reaches the SDK's own code on an older game. → [Older SDK names for the same calls](../reference/services.md#older-sdk-names-for-the-same-calls)
 - abort in `sm::Initialize` under `nn::friends::GetBlockedUserList` after the opening movie. → [SDK 4's `friends::GetBlockedUserList` without a `Uid`](../reference/services.md#sdk-4s-friendsgetblockeduserlist-without-a-uid)
 - the first loading screen never ends; `DM_FS=1` shows `save:/system` "not found" and no `fs mount save`. → [SDK 6's `account::OpenPreselectedUser` returns a Result](../reference/services.md#sdk-6s-accountopenpreselecteduser-returns-a-result)
+- the host crashes in `h_fs_OpenDirectory` when its folder-backed directory handle allocation fails. → [Directory handle allocation failure](../reference/services.md#directory-handle-allocation-failure)
 - IL2CPP "Could not open …/global-metadata.dat" (then a crash in its logger). → [The SDK's own `fs::IsMounted` reads an empty mount table](../reference/services.md#the-sdks-own-fsismounted-reads-an-empty-mount-table)
 - a 10-byte read of the wrong RomFS file, then a null pointer at boot; files named `rom:\StartupUI.pak` are not found. → [File handles with low bits set, and backslash paths](../reference/services.md#file-handles-with-low-bits-set-and-backslash-paths)
 - Addressables never start (no `StreamingAssets/aa/settings.json` in the `DM_FS=1` output at all), then a null asset crash (`main+0x31100ec`). → [C library path checks ask the file system's limits](../reference/services.md#c-library-path-checks-ask-the-file-systems-limits)
diff --git a/docs/reference/services.md b/docs/reference/services.md
index 0608442f22..707df2ad7e 100644
--- a/docs/reference/services.md
+++ b/docs/reference/services.md
@@ -80,6 +80,13 @@ Most service calls can be found before they crash, before the first boot or the
 
 ## File system and save data
 
+### Directory handle allocation failure
+
+- **Symptom:** the host crashes in `h_fs_OpenDirectory` when its folder-backed directory handle allocation fails.
+- **Cause:** `opendir` succeeded, but the following `calloc` of `dirh_t` was dereferenced without a null check. Returning early without cleanup would also leak the already-open `DIR`.
+- **Fix:** close the directory on allocation failure, preserve `errno` across cleanup, and return the existing filesystem failure through `err_res` before publishing a handle. The caller's output stays untouched, as on the other failed-open paths. `t_fs_directory.c` injects allocation failure in the real handler, checks the descriptor is closed and the output unchanged, then exercises successful open, count, read and close.
+- **Found on:** the [GCC audit in issue #313](https://github.com/seedds/nxnative/issues/313#issuecomment-6523656102), reproduced with a synthetic directory and allocation fault injection; no game-specific failure was reported.
+
 ### The SDK's own `fs::IsMounted` reads an empty mount table
 
 - **Symptom:** IL2CPP "Could not open …/global-metadata.dat" (then a crash in its logger).