diff --git a/ironic/drivers/modules/ilo/firmware_processor.py b/ironic/drivers/modules/ilo/firmware_processor.py
index 52838ed374..53e159a95a 100644
--- a/ironic/drivers/modules/ilo/firmware_processor.py
+++ b/ironic/drivers/modules/ilo/firmware_processor.py
@@ -259,9 +259,13 @@ def _download_swift_based_fw_to(self, target_file):
     :raises: SwiftOperationError, on failure to download from swift.
     :raises: ImageDownloadFailed, on failure to download the original file.
     """
-    # Extract container name and object name
+    # Extract container name
     container = self.parsed_url.netloc
-    objectname = os.path.basename(self.parsed_url.path)
+    # Extract the object name from the path of the form:
+    #    ``/objectname`` OR
+    #    ``/pseudo-folder/objectname``
+    # stripping the leading '/' character.
+    objectname = self.parsed_url.path.lstrip('/')
     timeout = CONF.ilo.swift_object_expiry_timeout
     # Generate temp url using swift API
     tempurl = swift.SwiftAPI().get_temp_url(container, objectname, timeout)
diff --git a/ironic/tests/unit/drivers/modules/ilo/test_firmware_processor.py b/ironic/tests/unit/drivers/modules/ilo/test_firmware_processor.py
index d5f0f6f146..a041376310 100644
--- a/ironic/tests/unit/drivers/modules/ilo/test_firmware_processor.py
+++ b/ironic/tests/unit/drivers/modules/ilo/test_firmware_processor.py
@@ -363,16 +363,25 @@ class FirmwareProcessorTestCase(base.TestCase):
     def test__download_swift_based_fw_to_creates_temp_url(
             self, swift_mock, _download_http_based_fw_to_mock, urlparse_mock):
         # | GIVEN |
-        any_swift_based_firmware_file = 'swift://containername/objectname'
-        any_target_file = 'any_target_file'
-        self.fw_processor_fake.parsed_url = urlparse.urlparse(
-            any_swift_based_firmware_file)
-        # | WHEN |
-        ilo_fw_processor._download_swift_based_fw_to(self.fw_processor_fake,
-                                                     any_target_file)
+        swift_based_firmware_files = [
+            'swift://containername/objectname',
+            'swift://containername/pseudo-folder/objectname'
+        ]
+        for swift_firmware_file in swift_based_firmware_files:
+            # | WHEN |
+            self.fw_processor_fake.parsed_url = (urlparse.
+                                                 urlparse(swift_firmware_file))
+            ilo_fw_processor._download_swift_based_fw_to(
+                self.fw_processor_fake, 'any_target_file')
         # | THEN |
-        swift_mock.SwiftAPI().get_temp_url.assert_called_once_with(
-            'containername', 'objectname', mock.ANY)
+        expected_temp_url_call_args_list = [
+            mock.call('containername', 'objectname', mock.ANY),
+            mock.call('containername', 'pseudo-folder/objectname', mock.ANY)
+        ]
+        actual_temp_url_call_args_list = (
+            swift_mock.SwiftAPI().get_temp_url.call_args_list)
+        self.assertEqual(expected_temp_url_call_args_list,
+                         actual_temp_url_call_args_list)
 
     @mock.patch.object(urlparse, 'urlparse', autospec=True)
     @mock.patch.object(
diff --git a/releasenotes/notes/fix-ilo-firmware-update-swift-path-with-pseudo-folder-0660345510ec0bb4.yaml b/releasenotes/notes/fix-ilo-firmware-update-swift-path-with-pseudo-folder-0660345510ec0bb4.yaml
new file mode 100644
index 0000000000..64257c87f6
--- /dev/null
+++ b/releasenotes/notes/fix-ilo-firmware-update-swift-path-with-pseudo-folder-0660345510ec0bb4.yaml
@@ -0,0 +1,5 @@
+---
+fixes:
+  - Fixes an issue where iLO drivers fail to download the
+    firmware file from swift when the swift file path
+    includes swift pseudo folder.