diff --git a/tests/bufr_compare.sh b/tests/bufr_compare.sh
index faa42a6e4..ecb24c11d 100755
--- a/tests/bufr_compare.sh
+++ b/tests/bufr_compare.sh
@@ -109,9 +109,19 @@ status=$?
 set -e
 [ $status -eq 1 ]
 
+#----------------------------------------------------
+# Compare file with directory
+#----------------------------------------------------
+temp_dir=tempdir.bufr_compare
+mkdir -p $temp_dir
+infile=aaen_55.bufr
+cp $infile $temp_dir
+${tools_dir}bufr_compare $infile $temp_dir
+
+
 #Clean up
 rm -f $fLog 
 rm -f $fBufrTmp | true
 rm -f $fBufrInput1 | true
 rm -f $fBufrInput2 | true
-
+rm -rf $temp_dir
diff --git a/tests/compare.sh b/tests/compare.sh
index 92ad6914e..79c9b49f3 100755
--- a/tests/compare.sh
+++ b/tests/compare.sh
@@ -8,7 +8,6 @@
 # virtue of its status as an intergovernmental organisation nor does it submit to any jurisdiction.
 #
 
-
 . ./include.sh
 
 REDIRECT=/dev/null
@@ -33,5 +32,12 @@ cat temp_comp.3 temp_comp.2 temp_comp.1 > temp_comp.321
 # Compare files in which the messages are not in the same order
 ${tools_dir}grib_compare -r temp_comp.123 temp_comp.321
 
+# GRIB-797: test last argument being a directory
+temp_dir=tempdir.grib_compare
+mkdir -p $temp_dir
+cp $infile $temp_dir
+${tools_dir}grib_compare $infile  $temp_dir
+rm -rf $temp_dir
+
 rm -f temp_comp.1 temp_comp.2 temp_comp.3 temp_comp.123 temp_comp.321
 rm -f $outfile || true
diff --git a/tools/bufr_compare.c b/tools/bufr_compare.c
index 118640b49..512eeb111 100644
--- a/tools/bufr_compare.c
+++ b/tools/bufr_compare.c
@@ -16,6 +16,12 @@
 
 #include "grib_tools.h"
 
+static const char* basename(const char* path)
+{
+    char* s = strrchr(path, '/');
+    if (!s) return path;
+    else    return s + 1;
+}
 
 GRIB_INLINE static int grib_inline_strcmp(const char* a,const char* b)
 {
@@ -324,6 +330,22 @@ int grib_tool_init(grib_runtime_options* options)
     if (grib_options_on("t:"))
         tolerance_factor=atof(grib_options_get_option("t:"));
 
+    {
+        /* Check for 2nd file being a directory. If so, we assume user is comparing to a file */
+        /* with the same name as first file in that directory */
+        struct stat s;
+        grib_tools_file* infile = options->infile; /* the 2nd file in comparison */
+        if (infile) {
+            int stat_val = stat(infile->name, &s);
+            if ( stat_val == 0 && S_ISDIR(s.st_mode)) {
+                /* Take the filename of the 1st file and append to dir */
+                char bufr[2048] = {0,};
+                /* options->infile_extra->name is the 1st file */
+                sprintf(bufr, "%s/%s", infile->name, basename(options->infile_extra->name));
+                infile->name = strdup(bufr);
+            }
+        }
+    }
 
     return 0;
 }
diff --git a/tools/grib_compare.c b/tools/grib_compare.c
index 1793e4543..1ebef0566 100644
--- a/tools/grib_compare.c
+++ b/tools/grib_compare.c
@@ -10,6 +10,13 @@
 
 #include "grib_tools.h"
 
+static const char* basename(const char* path)
+{
+    char* s = strrchr(path, '/');
+    if (!s) return path;
+    else    return s + 1;
+}
+
 GRIB_INLINE static int grib_inline_strcmp(const char* a,const char* b)
 {
     if (*a != *b) return 1;
@@ -283,6 +290,23 @@ int grib_tool_init(grib_runtime_options* options)
         }
     }
 
+    {
+        /* Check for 2nd file being a directory. If so, we assume user is comparing to a file */
+        /* with the same name as first file in that directory */
+        struct stat s;
+        grib_tools_file* infile = options->infile; /* the 2nd file in comparison */
+        if (infile) {
+            int stat_val = stat(infile->name, &s);
+            if ( stat_val == 0 && S_ISDIR(s.st_mode)) {
+                /* Take the filename of the 1st file and append to dir */
+                char bufr[2048] = {0,};
+                /* options->infile_extra->name is the 1st file */
+                sprintf(bufr, "%s/%s", infile->name, basename(options->infile_extra->name));
+                infile->name = strdup(bufr);
+            }
+        }
+    }
+
     return 0;
 }