diff --git a/rpcs3/Emu/Cell/lv2/sys_fs.cpp b/rpcs3/Emu/Cell/lv2/sys_fs.cpp
index 6445f473d1..c1a40627be 100644
--- a/rpcs3/Emu/Cell/lv2/sys_fs.cpp
+++ b/rpcs3/Emu/Cell/lv2/sys_fs.cpp
@@ -862,7 +862,9 @@ error_code sys_fs_unlink(ppu_thread& ppu, vm::cptr<char> path)
 	const std::string_view vpath = path.get_ptr();
 	const std::string local_path = vfs::get(vpath);
 
-	if (vpath.find_first_not_of('/') == -1)
+	const std::size_t dev_start = vpath.find_first_not_of('/');
+
+	if (dev_start == -1)
 	{
 		return {CELL_EISDIR, path};
 	}
@@ -877,7 +879,10 @@ error_code sys_fs_unlink(ppu_thread& ppu, vm::cptr<char> path)
 		return {CELL_EISDIR, path};
 	}
 
-	if (!vfs::host::unlink(local_path))
+	// Size of "/dev_hdd0"-alike substring
+	const std::size_t dev_size  = vpath.find_first_of('/', dev_start);
+
+	if (!vfs::host::unlink(local_path, vfs::get(vpath.substr(0, dev_size))))
 	{
 		switch (auto error = fs::g_tls_error)
 		{
diff --git a/rpcs3/Emu/VFS.cpp b/rpcs3/Emu/VFS.cpp
index 3140984e11..bb68a7a357 100644
--- a/rpcs3/Emu/VFS.cpp
+++ b/rpcs3/Emu/VFS.cpp
@@ -33,6 +33,8 @@ bool vfs::mount(std::string_view vpath, std::string_view path)
 
 	const auto table = g_fxo->get<vfs_manager>();
 
+	// TODO: scan roots of mounted devices for undeleted vfs::host::unlink remnants, and try to delete them (_WIN32 only)
+
 	std::lock_guard lock(table->mutex);
 
 	if (vpath.empty())
@@ -566,13 +568,13 @@ bool vfs::host::rename(const std::string& from, const std::string& to, bool over
 	return true;
 }
 
-bool vfs::host::unlink(const std::string& path)
+bool vfs::host::unlink(const std::string& path, const std::string& dev_root)
 {
 #ifdef _WIN32
 	if (path.size() < 2 || reinterpret_cast<const u16&>(path.front()) != "//"_u16)
 	{
 		// Rename to special dummy name which will be ignored by VFS (but opened file handles can still read or write it)
-		const std::string dummy = fmt::format(u8"%s/＄%s%s", fs::get_parent_dir(path), fmt::base57(std::hash<std::string>()(path)), fmt::base57(__rdtsc()));
+		const std::string dummy = fmt::format(u8"%s/＄%s%s", dev_root, fmt::base57(std::hash<std::string>()(path)), fmt::base57(__rdtsc()));
 
 		if (!fs::rename(path, dummy, true))
 		{
diff --git a/rpcs3/Emu/VFS.h b/rpcs3/Emu/VFS.h
index e3e12ede1b..72e551c15f 100644
--- a/rpcs3/Emu/VFS.h
+++ b/rpcs3/Emu/VFS.h
@@ -25,6 +25,6 @@ namespace vfs
 		bool rename(const std::string& from, const std::string& to, bool overwrite);
 
 		// Delete file without deleting its contents, emulated with MoveFileEx on Windows
-		bool unlink(const std::string&);
+		bool unlink(const std::string& path, const std::string& dev_root);
 	}
 }