diff --git a/src/Console/Commands/ScaffoldAuthenticationControllers.php b/src/Console/Commands/ScaffoldAuthenticationControllers.php
index 8ac6321..96e1ab6 100644
--- a/src/Console/Commands/ScaffoldAuthenticationControllers.php
+++ b/src/Console/Commands/ScaffoldAuthenticationControllers.php
@@ -39,6 +39,13 @@ class ScaffoldAuthenticationControllers extends Command
      */
     protected $namespace = null;
 
+    /**
+     * Models namespace
+     *
+     * @var string
+     */
+    protected $modelNamespace = null;
+
     /**
      * @var Illuminate\Filesystem\Filesystem
      */
@@ -54,6 +61,8 @@ public function __construct()
         parent::__construct();
 
         $this->namespace = self::DEFAULT_NAMESPACE;
+        
+        $this->modelNamespace = self::DEFAULT_NAMESPACE;
 
         $this->filesystem = new Filesystem;
     }
@@ -88,6 +97,8 @@ protected function identifyApplicationNamespace()
             if ($this->namespace !== self::DEFAULT_NAMESPACE) {
                 $this->comment("Using [$this->namespace] as application namespace.");
             }
+
+            $this->modelNamespace = is_dir(app_path('Models')) ? $this->namespace.'\\Models' : $this->namespace;
         } catch (RuntimeException $ex) {
             $this->warn("Unable to identity the application namespace, assuming [$this->namespace].");
         }
@@ -126,12 +137,12 @@ protected function scaffoldModels()
             mkdir($directory, 0755, true);
         }
 
-        // TODO: make it Models folder aware
+        $useModelsDirectory = is_dir(app_path('Models'));
 
         collect($this->filesystem->allFiles(__DIR__.'/../../../stubs/Identities/Models'))
-            ->each(function (SplFileInfo $file) {
+            ->each(function (SplFileInfo $file) use ($useModelsDirectory) {
                 $modelName = Str::replaceLast('.stub', '.php', $file->getFilename());
-                $model = app_path($modelName);
+                $model = $useModelsDirectory ? app_path('Models/'.$modelName) : app_path($modelName);
 
                 if (file_exists($model) && ! $this->option('force')) {
                     if ($this->confirm("The [$modelName] file already exists. Do you want to replace it?")) {
@@ -188,7 +199,7 @@ protected function compileControllerStub($stub)
     protected function compileModelStub($stub)
     {
         $originalNamespaceDeclaration = str_replace('\\;', ';', "namespace ".self::DEFAULT_NAMESPACE.';');
-        $newNamespaceDeclaration = str_replace('\\;', ';', "namespace $this->namespace;");
+        $newNamespaceDeclaration = str_replace('\\;', ';', "namespace $this->modelNamespace;");
         
         return str_replace(
             $originalNamespaceDeclaration,
diff --git a/tests/Unit/ScaffoldAuthenticationControllersTest.php b/tests/Unit/ScaffoldAuthenticationControllersTest.php
index a8ada24..3ec0818 100644
--- a/tests/Unit/ScaffoldAuthenticationControllersTest.php
+++ b/tests/Unit/ScaffoldAuthenticationControllersTest.php
@@ -29,7 +29,7 @@ public function test_scaffold()
 
         $files = [
             base_path('database/migrations/2020_08_09_115707_create_identities_table.php'),
-            app_path('Identity.php'),
+            app_path('Models/Identity.php'),
             app_path('Http/Controllers/Identities/Auth/ConnectController.php'),
             app_path('Http/Controllers/Identities/Auth/LoginController.php'),
             app_path('Http/Controllers/Identities/Auth/RegisterController.php'),