diff --git a/src/providers/wms/qgswmsprovider.cpp b/src/providers/wms/qgswmsprovider.cpp
index 38eda23412dc..af8e12d2d6ad 100644
--- a/src/providers/wms/qgswmsprovider.cpp
+++ b/src/providers/wms/qgswmsprovider.cpp
@@ -5236,6 +5236,8 @@ QVariantMap QgsWmsProviderMetadata::decodeUri( const QString &uri ) const
       if ( url.isLocalFile() )
       {
         decoded[ QStringLiteral( "path" ) ] = url.toLocalFile();
+        // Also add the url to insure WMS source widget works properly with XYZ file:// URLs
+        decoded[ item.first ] = item.second;
       }
       else if ( QFileInfo( item.second ).isFile() )
       {
@@ -5278,6 +5280,13 @@ QString QgsWmsProviderMetadata::encodeUri( const QVariantMap &parts ) const
     {
       items.push_back( { QStringLiteral( "url" ), QUrl::fromLocalFile( it.value().toString() ).toString() } );
     }
+    else if ( it.key() == QLatin1String( "url" ) )
+    {
+      if ( !parts.contains( QLatin1String( "path" ) ) )
+      {
+        items.push_back( { it.key(), it.value().toString() } );
+      }
+    }
     else
     {
       if ( it.value().type() == QVariant::StringList )
@@ -5376,6 +5385,20 @@ QList<QgsProviderSublayerDetails> QgsWmsProviderMetadata::querySublayers( const
       }
     }
   }
+  else
+  {
+    const thread_local QRegularExpression re( QStringLiteral( "{-?[xyzq]}" ) );
+    if ( fileName.contains( re ) )
+    {
+      // local XYZ directory
+      QgsProviderSublayerDetails details;
+      details.setUri( uri );
+      details.setProviderKey( key() );
+      details.setType( Qgis::LayerType::Raster );
+      return {details};
+    }
+  }
+
   return {};
 }
 
diff --git a/tests/src/providers/testqgswmsprovider.cpp b/tests/src/providers/testqgswmsprovider.cpp
index 6592c32f0eca..eaf73d97b45e 100644
--- a/tests/src/providers/testqgswmsprovider.cpp
+++ b/tests/src/providers/testqgswmsprovider.cpp
@@ -376,11 +376,26 @@ class TestQgsWmsProvider: public QgsTest
       QString uriString = QStringLiteral( "url=file:///my/local/tiles.mbtiles&type=mbtiles" );
       QVariantMap parts = QgsProviderRegistry::instance()->decodeUri( QStringLiteral( "wms" ), uriString );
       QVariantMap expectedParts { { QString( "type" ), QVariant( "mbtiles" ) },
-        { QString( "path" ), QVariant( "/my/local/tiles.mbtiles" ) } };
+        { QString( "path" ), QVariant( "/my/local/tiles.mbtiles" ) },
+        { QString( "url" ), QVariant( "file:///my/local/tiles.mbtiles" ) } };
       QCOMPARE( parts, expectedParts );
 
       QString encodedUri = QgsProviderRegistry::instance()->encodeUri( QStringLiteral( "wms" ), parts );
       QCOMPARE( encodedUri, uriString );
+
+      QgsProviderMetadata *wmsMetadata = QgsProviderRegistry::instance()->providerMetadata( "wms" );
+      QVERIFY( wmsMetadata );
+
+      // query sublayers
+      QList< QgsProviderSublayerDetails > sublayers;
+      sublayers = wmsMetadata->querySublayers( QStringLiteral( "type=xyz&url=file:///my/xyz/directory/%7Bz%7D/%7Bx%7D/%7By%7D.png&zmax=19&zmin=0" ) );
+      QCOMPARE( sublayers.size(), 1 );
+      QCOMPARE( sublayers.at( 0 ).providerKey(), QStringLiteral( "wms" ) );
+      QCOMPARE( sublayers.at( 0 ).name(), QLatin1String( "" ) );
+      QCOMPARE( sublayers.at( 0 ).uri(), QStringLiteral( "type=xyz&url=file:///my/xyz/directory/%7Bz%7D/%7Bx%7D/%7By%7D.png&zmax=19&zmin=0" ) );
+      QCOMPARE( sublayers.at( 0 ).type(), Qgis::LayerType::Raster );
+      QVERIFY( !sublayers.at( 0 ).skippedContainerScan() );
+      QVERIFY( !QgsProviderUtils::sublayerDetailsAreIncomplete( sublayers ) );
     }
 
     void absoluteRelativeUri()