diff --git a/.changes/increase-tauri-dir-lookup-depth.md b/.changes/increase-tauri-dir-lookup-depth.md
new file mode 100644
index 000000000..eb9ac27f3
--- /dev/null
+++ b/.changes/increase-tauri-dir-lookup-depth.md
@@ -0,0 +1,6 @@
+---
+"cli.rs": patch
+"cli.js": patch
+---
+
+Increase `tauri.conf.json` directory lookup depth to `3` and allow changing it with the `TAURI_PATH_DEPTH` environment variable.
diff --git a/tooling/cli/src/helpers/app_paths.rs b/tooling/cli/src/helpers/app_paths.rs
index 974b67199..a89eafdf7 100644
--- a/tooling/cli/src/helpers/app_paths.rs
+++ b/tooling/cli/src/helpers/app_paths.rs
@@ -25,7 +25,14 @@ fn lookup<F: Fn(&PathBuf) -> bool>(dir: &Path, checker: F) -> Option<PathBuf> {
 
   let mut builder = WalkBuilder::new(dir);
   let _ = builder.add_ignore(default_gitignore);
-  builder.require_git(false).ignore(false).max_depth(Some(2));
+  builder.require_git(false).ignore(false).max_depth(Some(
+    std::env::var("TAURI_PATH_DEPTH")
+      .map(|d| {
+        d.parse()
+          .expect("`TAURI_PATH_DEPTH` environment variable must be a positive integer")
+      })
+      .unwrap_or(3),
+  ));
 
   for entry in builder.build().flatten() {
     let path = dir.join(entry.path());