diff --git a/qgpg/__init__.py b/qgpg/__init__.py
index 3d760a4..f9ec0b9 100644
--- a/qgpg/__init__.py
+++ b/qgpg/__init__.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python3
 
-__version__ = "1.0"
+__version__ = "1.1"
 
 import argparse
 import os
@@ -129,7 +129,8 @@ Usage
     )
     parser.add_argument("--name", help="Name of the owner of the key", required=False, default="recipient@address")
     parser.add_argument(
-        "--recursive","-r",
+        "--recursive",
+        "-r",
         default=False,
         action="store_true",
         help="Recursive encryption or decryption. Processes full folder structures",
@@ -141,10 +142,8 @@ Usage
         choices=["k", "e", "d", "keygen", "encrypt", "decrypt"],
     )
     parser.add_argument("path", help="path to file to encrypt/decrypt, or folder if recursive", nargs="?")
-    parser.add_argument("out_path", help="output file, if not using recursive.", nargs="?")
+    parser.add_argument("out_path", help="output file or folder when using recursive.", nargs="?")
     parsed = parser.parse_args()
-    if parsed.out_path and parsed.recursive:
-        parser.error("Cannot assign output path, when in recursive mode")
     for cmd in ("keygen", "encrypt", "decrypt"):
         if parsed.command == cmd[0]:
             parsed.command = cmd
@@ -260,7 +259,11 @@ class Processor:
             auto_path = in_file + self.suffix
         if self.opts.command == "decrypt":
             auto_path = in_file[: -len(self.suffix)]
-        out_file = self.opts.out_path if self.opts.out_path else auto_path
+        if self.opts.recursive and self.opts.out_path:
+            out_file = os.path.join(self.opts.out_path, os.sep.join(auto_path.split(os.sep)[1:]))
+            os.makedirs(os.path.dirname(out_file), exist_ok=True)
+        else:
+            out_file = self.opts.out_path if self.opts.out_path else auto_path
         if os.path.exists(out_file):
             print(f"{out_file} already exists", file=sys.stderr)
             return