diff --git a/CHANGELOG.md b/CHANGELOG.md
index f4b20ad..0e534e2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,7 @@ Categories Used:
 
 - Fix tar extraction count when --quiet [\#824](https://github.com/ouch-org/ouch/pull/824) ([marcospb19](https://github.com/marcospb19))
 - Fix 7z BadSignature error when compressing and then listing [\#819](https://github.com/ouch-org/ouch/pull/819) ([tommady](https://github.com/tommady))
+- Fix Unpacking with merge flag failed without --dir flag [\#826](https://github.com/ouch-org/ouch/pull/826) ([tommady](https://github.com/tommady))
 
 ### Tweaks
 
diff --git a/src/commands/decompress.rs b/src/commands/decompress.rs
index f5dc712..33a046f 100644
--- a/src/commands/decompress.rs
+++ b/src/commands/decompress.rs
@@ -413,7 +413,9 @@ fn smart_unpack(
     };
 
     // Rename the temporary directory to the archive name, which is output_file_path
-    fs::rename(&previous_path, &new_path)?;
+    if fs::rename(&previous_path, &new_path).is_err() {
+        utils::copy_dir(&previous_path, &new_path)?;
+    };
     info_accessible(format!(
         "Successfully moved \"{}\" to \"{}\"",
         nice_directory_display(&previous_path),
diff --git a/src/utils/fs.rs b/src/utils/fs.rs
index 0f55252..f5a23fc 100644
--- a/src/utils/fs.rs
+++ b/src/utils/fs.rs
@@ -209,3 +209,23 @@ pub fn try_infer_extension(path: &Path) -> Option<Extension> {
         None
     }
 }
+
+/// Copy the src directory into the dst directory recursively
+pub fn copy_dir(src: &Path, dst: &Path) -> crate::Result<()> {
+    if !src.exists() || !dst.exists() {
+        return Err(crate::Error::NotFound {
+            error_title: "source or destination directory does not exist".to_string(),
+        });
+    }
+
+    for entry in fs::read_dir(src)? {
+        let entry = entry?;
+        let ty = entry.file_type()?;
+        if ty.is_dir() {
+            copy_dir(entry.path().as_path(), dst.join(entry.file_name()).as_path())?;
+        } else {
+            fs::copy(entry.path(), dst.join(entry.file_name()).as_path())?;
+        }
+    }
+    Ok(())
+}
diff --git a/src/utils/mod.rs b/src/utils/mod.rs
index 444cf1f..060a7ed 100644
--- a/src/utils/mod.rs
+++ b/src/utils/mod.rs
@@ -18,7 +18,7 @@ pub use self::{
         EscapedPathDisplay,
     },
     fs::{
-        cd_into_same_dir_as, create_dir_if_non_existent, is_path_stdin, remove_file_or_dir,
+        cd_into_same_dir_as, copy_dir, create_dir_if_non_existent, is_path_stdin, remove_file_or_dir,
         rename_for_available_filename, resolve_path_conflict, try_infer_extension,
     },
     question::{