diff --git a/localstack-core/localstack/testing/testselection/matching.py b/localstack-core/localstack/testing/testselection/matching.py
index 2d9025b240bef..4bf5e9bfaca2d 100644
--- a/localstack-core/localstack/testing/testselection/matching.py
+++ b/localstack-core/localstack/testing/testselection/matching.py
@@ -93,8 +93,12 @@ def service_tests(self, services: list[str]):
     def passthrough(self):
         return lambda t: [t] if self.matching_func(t) else []
 
-    def directory(self):
-        return lambda t: [get_directory(t)] if self.matching_func(t) else []
+    def directory(self, paths: list[str] = None):
+        """Enables executing tests on a full directory if the file is matched.
+        By default, it will return the directory of the modified file.
+        If the argument `paths` is provided, it will instead return the provided list.
+        """
+        return lambda t: (paths or [get_directory(t)]) if self.matching_func(t) else []
 
 
 class Matchers:
diff --git a/tests/unit/testing/testselection/test_matching.py b/tests/unit/testing/testselection/test_matching.py
index 8cf7c9fdde7c9..885d4d83ceff4 100644
--- a/tests/unit/testing/testselection/test_matching.py
+++ b/tests/unit/testing/testselection/test_matching.py
@@ -6,10 +6,13 @@
 
 from localstack.testing.testselection.matching import (
     MATCHING_RULES,
+    SENTINEL_ALL_TESTS,
+    Matchers,
     check_rule_has_matches,
     generic_service_test_matching_rule,
     resolve_dependencies,
 )
+from localstack.testing.testselection.testselection import get_affected_tests_from_changes
 
 
 def test_service_dependency_resolving_no_deps():
@@ -104,3 +107,34 @@ def test_rules_are_matching_at_least_one_file():
     files = [os.path.relpath(f, root_dir) for f in files]
     for rule_id, rule in enumerate(MATCHING_RULES):
         assert check_rule_has_matches(rule, files), f"no match for rule {rule_id}"
+
+
+def test_directory_rules_with_paths():
+    feature_path = "localstack/my_feature"
+    test_path = "test/my_feature"
+    matcher = Matchers.glob(f"{feature_path}/**").directory(paths=[test_path])
+    selected_tests = get_affected_tests_from_changes([f"{feature_path}/__init__.py"], [matcher])
+
+    assert selected_tests == [test_path]
+
+
+def test_directory_rules_no_paths():
+    conftest_path = "**/conftest.py"
+    matcher = Matchers.glob(conftest_path).directory()
+
+    selected_tests = get_affected_tests_from_changes(
+        ["tests/aws/service/sns/conftest.py"], [matcher]
+    )
+
+    assert selected_tests == ["tests/aws/service/sns/"]
+
+
+def test_directory_rules_no_match():
+    feature_path = "localstack/my_feature"
+    test_path = "test/my_feature"
+    matcher = Matchers.glob(f"{feature_path}/**").directory(paths=[test_path])
+    selected_tests = get_affected_tests_from_changes(
+        ["localstack/not_my_feature/__init__.py"], [matcher]
+    )
+
+    assert selected_tests == [SENTINEL_ALL_TESTS]