diff --git a/README.md b/README.md
index 200a82a..deb3190 100644
--- a/README.md
+++ b/README.md
@@ -36,7 +36,7 @@ Apart from that, there is no limitation on the script language.
 You can use Bash, Python, Swift, Ruby, whatever.
 And of course, you can always write a script wrapper to call something else.
 
-=> If you can call the script with `open` (e.g., `open myscript`), it will work in the status menu too.
+=> If you can run the script with `open` (e.g., `open myscript`), it will work in the status menu too.
 
 
 ### Configuration
@@ -46,6 +46,7 @@ There are a few ways to modify the menu structure:
 #### Menu Icon
 
 A subdirectory can have a custom icon if the folder contains an image file named `icon.X` (where `X` is one of: `svg`, `png`, `jpg`, `jpeg`, `gif`, `ico`, `icns`).
+For menu items, the icon file should be named exactly like the script file plus one of the icon extensions (e.g., `cmd.sh` -> `cmd.sh.png`).
 
 #### Sort Order
 
diff --git a/src/main.swift b/src/main.swift
index 28d4b56..8ba1216 100755
--- a/src/main.swift
+++ b/src/main.swift
@@ -317,18 +317,20 @@ struct Entry {
 
 	func icon() -> NSImage? {
 		var img: NSImage? = nil
-		if isDir {
+		if !hasDynParent {
+			let basePath = self.isDir ? self.url.appendingPathComponent("icon") : self.url
 			for ext in ["svg", "png", "jpg", "jpeg", "gif", "ico", "icns"] {
-				let iconPath = self.url.appendingPathComponent("icon." + ext)
+				let iconPath = basePath.appendingPathExtension(ext)
 				if FileManager.default.fileExists(atPath: iconPath.path) {
 					img = NSImage(contentsOf: iconPath)
 					break
 				}
 			}
-			if img == nil {
+			if img == nil, self.isDir {
 				img = NSImage(named: NSImage.folderName)
 			}
-		} else if action == .Dynamic || hasDynParent {
+		}
+		if img == nil, action == .Dynamic || hasDynParent {
 			let cmd = Exec(file: self.url, env: ["ACTION": "icon", "ITEM": hasDynParent ? self.title : ""])
 			img = NSImage(data: cmd.readData())
 		}