diff --git a/litestar/utils/module_loader.py b/litestar/utils/module_loader.py
index 09dbf9f8d6..1fab629dd5 100644
--- a/litestar/utils/module_loader.py
+++ b/litestar/utils/module_loader.py
@@ -2,7 +2,6 @@
 
 from __future__ import annotations
 
-import os.path
 import sys
 from importlib import import_module
 from importlib.util import find_spec
@@ -39,7 +38,8 @@ def module_to_os_path(dotted_path: str = "app") -> Path:
     except ModuleNotFoundError as e:
         raise TypeError(f"Couldn't find the path for {dotted_path}") from e
 
-    return Path(str(src.origin).rsplit(os.path.sep + "__init__.py", maxsplit=1)[0])
+    path = Path(str(src.origin))
+    return path.parent if path.is_file() else path
 
 
 def import_string(dotted_path: str) -> Any:
diff --git a/tests/unit/test_utils/test_module_loader.py b/tests/unit/test_utils/test_module_loader.py
index b76315980f..dec9993b72 100644
--- a/tests/unit/test_utils/test_module_loader.py
+++ b/tests/unit/test_utils/test_module_loader.py
@@ -17,10 +17,14 @@ def test_import_string() -> None:
         _ = import_string("imaginary_module_that_doesnt_exist.Config")  # a random nonexistent class
 
 
-def test_module_path() -> None:
+def test_module_path(tmp_path: Path, monkeypatch: MonkeyPatch) -> None:
     the_path = module_to_os_path("litestar.config.compression")
     assert the_path.exists()
 
+    tmp_path.joinpath("simple_module.py").write_text("x = 'foo'")
+    monkeypatch.syspath_prepend(tmp_path)
+    os_path = module_to_os_path("simple_module")
+    assert os_path == Path(tmp_path)
     with pytest.raises(TypeError):
         _ = module_to_os_path("litestar.config.compression.Config")
         _ = module_to_os_path("litestar.config.compression.extra.module")
@@ -35,5 +39,4 @@ def test_import_string_cached(tmp_path: Path, monkeypatch: MonkeyPatch) -> None:
     tmp_path.joinpath("testmodule.py").write_text("x = 'foo'")
     monkeypatch.chdir(tmp_path)
     monkeypatch.syspath_prepend(tmp_path)
-
     assert import_string("testmodule.x") == "foo"