diff --git a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/CatalogFileIndex.scala b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/CatalogFileIndex.scala
index 727b33018fbc..202bdfd421b1 100644
--- a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/CatalogFileIndex.scala
+++ b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/CatalogFileIndex.scala
@@ -83,7 +83,7 @@ class CatalogFileIndex(
       val timeNs = System.nanoTime() - startTime
       new InMemoryFileIndex(sparkSession,
         rootPathsSpecified = partitionSpec.partitions.map(_.path),
-        parameters = Map.empty,
+        parameters = table.storage.properties,
         userSpecifiedSchema = Some(partitionSpec.partitionColumns),
         fileStatusCache = fileStatusCache,
         userSpecifiedPartitionSpec = Some(partitionSpec),
diff --git a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningAwareFileIndex.scala b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningAwareFileIndex.scala
index d70c4b11bc0d..36fd5638b399 100644
--- a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningAwareFileIndex.scala
+++ b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningAwareFileIndex.scala
@@ -67,6 +67,10 @@ abstract class PartitioningAwareFileIndex(
     caseInsensitiveMap.getOrElse("recursiveFileLookup", "false").toBoolean
   }
 
+  protected lazy val inferRecursivePartition: Boolean = {
+    caseInsensitiveMap.getOrElse("inferRecursivePartition", "false").toBoolean
+  }
+
   override def listFiles(
       partitionFilters: Seq[Expression], dataFilters: Seq[Expression]): Seq[PartitionDirectory] = {
     def isNonEmptyFile(f: FileStatus): Boolean = {
@@ -106,13 +110,36 @@ abstract class PartitioningAwareFileIndex(
       PartitionDirectory(InternalRow.empty, allFiles()
         .filter(f => isNonEmptyFile(f) && matchFileMetadataPredicate(f))) :: Nil
     } else {
-      if (recursiveFileLookup) {
-        throw new IllegalArgumentException(
-          "Datasource with partition do not allow recursive file loading.")
+      val prunePartitionPaths = prunePartitions(partitionFilters, partitionSpec())
+
+      val partitionDirToChildrenFiles = if (recursiveFileLookup) {
+        // For partitioned table, we need to group by partition path
+        // when recursiveFileLookup is true.
+
+        val partitionDirs = prunePartitionPaths.map(_.path).toSet
+
+        def matchedPartitionDir(path: Path): Option[Path] = {
+          if (partitionDirs.contains(path)) {
+            Some(path)
+          } else if (path.getParent != null) {
+            matchedPartitionDir(path.getParent)
+          } else {
+            None
+          }
+        }
+
+        leafDirToChildrenFiles.toSeq.flatMap {
+          case (path, statuses) => matchedPartitionDir(path).map((_, statuses))
+        }.groupBy(_._1).map {
+          case (path, pathToStatuses) => (path, pathToStatuses.flatMap(_._2).toArray)
+        }
+      } else {
+        leafDirToChildrenFiles
       }
-      prunePartitions(partitionFilters, partitionSpec()).map {
+
+      prunePartitionPaths.map {
         case PartitionPath(values, path) =>
-          val files: Seq[FileStatus] = leafDirToChildrenFiles.get(path) match {
+          val files: Seq[FileStatus] = partitionDirToChildrenFiles.get(path) match {
             case Some(existingDir) =>
               // Directory has children files in it, return them
               existingDir.filter(f => matchPathPattern(f) && isNonEmptyFile(f) &&
@@ -169,7 +196,7 @@ abstract class PartitioningAwareFileIndex(
   }
 
   protected def inferPartitioning(): PartitionSpec = {
-    if (recursiveFileLookup) {
+    if (recursiveFileLookup && !inferRecursivePartition) {
       PartitionSpec.emptySpec
     } else {
       // We use leaf dirs containing data files to discover the schema.
diff --git a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningUtils.scala b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningUtils.scala
index d4989606927b..3ef96bf43e1f 100644
--- a/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningUtils.scala
+++ b/sql/core/src/main/scala/org/apache/spark/sql/execution/datasources/PartitioningUtils.scala
@@ -148,7 +148,19 @@ object PartitioningUtils extends SQLConfHelper {
 
     // We create pairs of (path -> path's partition value) here
     // If the corresponding partition value is None, the pair will be skipped
-    val pathsWithPartitionValues = paths.zip(partitionValues).flatMap(x => x._2.map(x._1 -> _))
+    val pathsWithPartitionValues = (partitionValues, optDiscoveredBasePaths, paths).zipped.flatMap {
+      case (Some(partitionValue), optDiscoveredBasePath, path) =>
+        val partitionPath = optDiscoveredBasePath.map(basePath => {
+          var tmpPartitionPath = basePath
+          partitionValue.columnNames.zip(partitionValue.typedValues).foreach {
+            case (column, TypedPartValue(value, _)) => tmpPartitionPath =
+              new Path(tmpPartitionPath, s"$column=$value")
+          }
+          tmpPartitionPath
+        })
+        Some(partitionPath.getOrElse(path), partitionValue)
+      case _ => None
+    }.distinct
 
     if (pathsWithPartitionValues.isEmpty) {
       // This dataset is not partitioned.
diff --git a/sql/core/src/test/scala/org/apache/spark/sql/execution/datasources/FileIndexSuite.scala b/sql/core/src/test/scala/org/apache/spark/sql/execution/datasources/FileIndexSuite.scala
index 1897a347ef17..fa09ee3b83be 100644
--- a/sql/core/src/test/scala/org/apache/spark/sql/execution/datasources/FileIndexSuite.scala
+++ b/sql/core/src/test/scala/org/apache/spark/sql/execution/datasources/FileIndexSuite.scala
@@ -539,6 +539,111 @@ class FileIndexSuite extends SharedSparkSession {
       }
     }
   }
+
+  test("SPARK-40600: Support recursiveFileLookup for partitioned datasource") {
+    def createPartitionDirWithSubDir(basePath: File,
+        partitionDirs: Seq[String], subDir: String,
+        expectedFileList: mutable.ListBuffer[String]): Unit = {
+      var partitionDirectory: File = basePath
+      partitionDirs.foreach { dir =>
+        partitionDirectory = new File(partitionDirectory, dir)
+        partitionDirectory.mkdir()
+      }
+      val file = new File(partitionDirectory, "text.txt")
+      stringToFile(file, "text")
+      expectedFileList.append(file.getCanonicalPath)
+
+      val subDirectory = new File(partitionDirectory, subDir)
+      subDirectory.mkdir()
+      val subFile = new File(subDirectory, "subtext.txt")
+      stringToFile(subFile, "text")
+      expectedFileList.append(subFile.getCanonicalPath)
+    }
+
+    def checkPartitions(fileIndex: InMemoryFileIndex,
+        expectedPartitions: Seq[(Seq[String], String)]): Unit = {
+      assertResult(expectedPartitions.sortBy(_._2)) {
+        fileIndex.partitionSpec().partitions
+          .map { p =>
+            val values = (0 until p.values.numFields).map(p.values.getString(_))
+            (values, new File(p.path.toUri).getCanonicalPath)
+          }.sortBy(_._2)
+      }
+    }
+
+    def checkListFiles(fileIndex: InMemoryFileIndex, expectedFiles: Seq[String]): Unit = {
+      assertResult(expectedFiles.sorted) {
+        fileIndex.listFiles(Nil, Nil).flatMap(_.files)
+          .map(f => new File(f.getPath.toUri).getCanonicalPath).sorted
+      }
+    }
+
+    // one partition path,
+    // dirs: dir/a=a1/text.text
+    //       dir/a=a1/subdir01/subtext.text
+    // if inferRecursivePartition is false, expected partitions: ()
+    // if inferRecursivePartition is true, expected partitions: (a=a1, dir/a=a1)
+    withTempDir { dir =>
+      val expectedFileList = mutable.ListBuffer[String]()
+      createPartitionDirWithSubDir(dir, Seq("a=a1"), "subdir01", expectedFileList)
+
+      val fileIndex = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)), Map("recursiveFileLookup" -> "false"), None)
+      checkPartitions(fileIndex, Seq((Seq("a1"), new File(dir, "a=a1").getCanonicalPath)))
+      checkListFiles(fileIndex, expectedFileList.filter(!_.contains("subdir")).toSeq)
+
+      val recursiveFileIndex1 = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)), Map("recursiveFileLookup" -> "true"), None)
+      checkPartitions(recursiveFileIndex1, Seq.empty)
+      checkListFiles(recursiveFileIndex1, expectedFileList.toSeq)
+
+      val recursiveFileIndex2 = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)),
+        Map("recursiveFileLookup" -> "true", "inferRecursivePartition" -> "true"),
+        None)
+      checkPartitions(recursiveFileIndex2, Seq((Seq("a1"), new File(dir, "a=a1").getCanonicalPath)))
+      checkListFiles(recursiveFileIndex2, expectedFileList.toSeq)
+    }
+
+    // two partition path,
+    // dirs: dir/a=a2/b=b1/text.text
+    //       dir/a=a2/b=b1/subdir01/subtext.text
+    //       dir/a=a2/b=b2/text.text
+    //       dir/a=a2/b=b2/subdir02/subtext.text
+    // if inferRecursivePartition is false, expected partitions:
+    //     ()
+    // if inferRecursivePartition is true, expected partitions:
+    //     (a=a2/b=b1, dir/a=a2/b=b1)
+    //     (a=a2/b=b2, dir/a=a2/b=b2)
+    withTempDir { dir =>
+      val expectedFileList = mutable.ListBuffer[String]()
+      createPartitionDirWithSubDir(dir, Seq("a=a2", "b=b1"), "subdir01", expectedFileList)
+      createPartitionDirWithSubDir(dir, Seq("a=a2", "b=b2"), "subdir02", expectedFileList)
+
+      val fileIndex = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)), Map("recursiveFileLookup" -> "false"), None)
+      checkPartitions(fileIndex, Seq(
+        (Seq("a2", "b1"), new File(new File(dir, "a=a2"), "b=b1").getCanonicalPath),
+        (Seq("a2", "b2"), new File(new File(dir, "a=a2"), "b=b2").getCanonicalPath)
+      ))
+      checkListFiles(fileIndex, expectedFileList.filter(!_.contains("subdir")).toSeq)
+
+      val recursiveFileIndex1 = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)), Map("recursiveFileLookup" -> "true"), None)
+      checkPartitions(recursiveFileIndex1, Seq.empty)
+      checkListFiles(recursiveFileIndex1, expectedFileList.toSeq)
+
+      val recursiveFileIndex2 = new InMemoryFileIndex(spark,
+        Seq(new Path(dir.getCanonicalPath)),
+        Map("recursiveFileLookup" -> "true", "inferRecursivePartition" -> "true"),
+        None)
+      checkPartitions(recursiveFileIndex2, Seq(
+        (Seq("a2", "b1"), new File(new File(dir, "a=a2"), "b=b1").getCanonicalPath),
+        (Seq("a2", "b2"), new File(new File(dir, "a=a2"), "b=b2").getCanonicalPath)
+      ))
+      checkListFiles(recursiveFileIndex2, expectedFileList.toSeq)
+    }
+  }
 }
 
 object DeletionRaceFileSystem {