diff --git a/.github/workflows/test-gh.yml b/.github/workflows/test-gh.yml
index 48466051..83ea5d36 100644
--- a/.github/workflows/test-gh.yml
+++ b/.github/workflows/test-gh.yml
@@ -25,8 +25,8 @@ jobs:
         export PATH=/tmp/bin:$PATH
 
         # imgpkg
-        wget -O- https://github.com/k14s/imgpkg/releases/download/v0.3.0/imgpkg-linux-amd64 > /tmp/bin/imgpkg && \
-          echo "7ebd513bdb4d448764725202f0bfe41e052a594eddeb55e53681ebdf4c27d4dc  /tmp/bin/imgpkg" | shasum -c - && \
+        wget -O- https://github.com/k14s/imgpkg/releases/download/v0.7.0/imgpkg-linux-amd64 > /tmp/bin/imgpkg && \
+          echo "bb90881c2c03cad4d50b2f0881d1330d341a37bb55bd8fff50bf228f7cfcf3d2  /tmp/bin/imgpkg" | shasum -c - && \
           chmod +x /tmp/bin/imgpkg
 
         # helm 2
diff --git a/examples/imgpkgBundle/vendir.lock.yml b/examples/imgpkgBundle/vendir.lock.yml
index f2de285c..04348375 100755
--- a/examples/imgpkgBundle/vendir.lock.yml
+++ b/examples/imgpkgBundle/vendir.lock.yml
@@ -10,5 +10,8 @@ directories:
   - imgpkgBundle:
       image: index.docker.io/ewrenn/consul-helm-bundle@sha256:15777f0007ee10fb9b2e0ed55107751188f3f3a11bae81c122ff4f11c9d67d15
     path: docker.io/ewrenn/consul-helm-by-digest
+  - imgpkgBundle:
+      image: index.docker.io/k8slt/vendir-test-recursive-bundle@sha256:4d58d662d3f6e858fb3f989214482405ac13974d98f3f0695bd36e3fc36d3f81
+    path: docker.io/k8slt/vendir-test-recursive-bundle
   path: vendor
 kind: LockConfig
diff --git a/examples/imgpkgBundle/vendir.yml b/examples/imgpkgBundle/vendir.yml
index 050a5b8c..4cf55af8 100644
--- a/examples/imgpkgBundle/vendir.yml
+++ b/examples/imgpkgBundle/vendir.yml
@@ -20,3 +20,8 @@ directories:
       image: index.docker.io/ewrenn/consul-helm-bundle@sha256:15777f0007ee10fb9b2e0ed55107751188f3f3a11bae81c122ff4f11c9d67d15
     excludePaths:
     - .git/**/*
+
+  - path: docker.io/k8slt/vendir-test-recursive-bundle
+    imgpkgBundle:
+      image: index.docker.io/k8slt/vendir-test-recursive-bundle@sha256:4d58d662d3f6e858fb3f989214482405ac13974d98f3f0695bd36e3fc36d3f81
+      recursive: true
diff --git a/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/.imgpkg/images.yml b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/.imgpkg/images.yml
new file mode 100644
index 00000000..2992cdee
--- /dev/null
+++ b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/.imgpkg/images.yml
@@ -0,0 +1,3 @@
+---
+apiVersion: imgpkg.carvel.dev/v1alpha1
+kind: ImagesLock
diff --git a/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/config.yml b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/config.yml
new file mode 100644
index 00000000..7fa901fb
--- /dev/null
+++ b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/bundles/sha256-69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf/config.yml
@@ -0,0 +1 @@
+test: true
diff --git a/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/images.yml b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/images.yml
new file mode 100644
index 00000000..70ba070d
--- /dev/null
+++ b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/.imgpkg/images.yml
@@ -0,0 +1,4 @@
+apiVersion: imgpkg.carvel.dev/v1alpha1
+kind: ImagesLock
+images:
+- image: index.docker.io/k8slt/vendir-test-referenced-bundle@sha256:69a0ebcf1abcea7b53e0c61885e8a3d6e93e6583aad7eb78a3a161e7133f76bf
diff --git a/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/config.yml b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/config.yml
new file mode 100644
index 00000000..c654d94a
--- /dev/null
+++ b/examples/imgpkgBundle/vendor/docker.io/k8slt/vendir-test-recursive-bundle/config.yml
@@ -0,0 +1 @@
+test-recursive: true
diff --git a/pkg/vendir/config/directory.go b/pkg/vendir/config/directory.go
index a144f66c..5693f10e 100644
--- a/pkg/vendir/config/directory.go
+++ b/pkg/vendir/config/directory.go
@@ -99,6 +99,7 @@ type DirectoryContentsImgpkgBundle struct {
 	SecretRef *DirectoryContentsLocalRef `json:"secretRef,omitempty"`
 
 	DangerousSkipTLSVerify bool `json:"dangerousSkipTLSVerify,omitempty"`
+	Recursive              bool `json:"recursive,omitempty"`
 }
 
 type DirectoryContentsGithubRelease struct {
diff --git a/pkg/vendir/fetch/imgpkgbundle/sync.go b/pkg/vendir/fetch/imgpkgbundle/sync.go
index be6ce236..3f5843d0 100644
--- a/pkg/vendir/fetch/imgpkgbundle/sync.go
+++ b/pkg/vendir/fetch/imgpkgbundle/sync.go
@@ -43,6 +43,7 @@ func (t *Sync) Sync(dstPath string) (ctlconf.LockDirectoryContentsImgpkgBundle,
 	}
 
 	args = t.addDangerousArgs(args)
+	args = t.addGeneralArgs(args)
 
 	var stdoutBs, stderrBs bytes.Buffer
 
@@ -111,3 +112,10 @@ func (t *Sync) addDangerousArgs(args []string) []string {
 	}
 	return args
 }
+
+func (t *Sync) addGeneralArgs(args []string) []string {
+	if t.opts.Recursive {
+		args = append(args, "--recursive")
+	}
+	return args
+}