diff --git a/src/utils/__fixtures__/test.zip b/src/utils/__fixtures__/test.zip
new file mode 100644
index 00000000..e1a361e2
Binary files /dev/null and b/src/utils/__fixtures__/test.zip differ
diff --git a/src/utils/__tests__/system.test.ts b/src/utils/__tests__/system.test.ts
index b9993172..0194aa0f 100644
--- a/src/utils/__tests__/system.test.ts
+++ b/src/utils/__tests__/system.test.ts
@@ -1,16 +1,18 @@
 import * as fs from 'fs';
 
 import { logger } from '../../logger';
-import { withTempFile } from '../files';
+import { scan, withTempDir, withTempFile } from '../files';
 
 import {
   calculateChecksum,
+  extractZipArchive,
   hasExecutable,
   HashAlgorithm,
   HashOutputFormat,
   replaceEnvVariable,
   spawnProcess,
 } from '../system';
+import { relative, resolve } from 'path';
 
 jest.mock('../../logger');
 
@@ -174,3 +176,101 @@ describe('isExecutableInPath', () => {
     expect(hasExecutable('./bin/non-existing-binary')).toBe(false);
   });
 });
+
+describe('extractZipArchive', () => {
+  const testZipPath = resolve(__dirname, '../__fixtures__/test.zip');
+
+  test('extracts a zip archive', async () => {
+    await withTempDir(async tmpDir => {
+      await extractZipArchive(testZipPath, tmpDir);
+      const files = (await scan(tmpDir)).map(file => relative(tmpDir, file));
+      expect(files).toStrictEqual(['Sentry.zip']);
+
+      const innerFilePath = resolve(tmpDir, files[0])
+      expect(fs.statSync(innerFilePath).size).toBe(1409323);
+    });
+  });
+
+  // This is a regression test for a bug in the original implementation based on
+  // unzipper when running on a new NodeJS v20.
+  // Extraction of the root archive would succeed but actually the contents
+  // of the nested archive would be compromised. Following attempt to
+  // extract the inner archive would yield: "ERROR  invalid distance code"
+  test('extracts archive contained in another achive', async () => {
+    await withTempDir(async tmpDir => {
+      await extractZipArchive(testZipPath, tmpDir);
+
+      const innerZipPath = resolve(tmpDir, 'Sentry.zip')
+      const innerDir = resolve(tmpDir, 'Sentry')
+      fs.mkdirSync(innerDir)
+
+      await extractZipArchive(innerZipPath, innerDir);
+      const files = (await scan(innerDir))
+        .map(file => relative(innerDir, file).replace(/\\/g, '/'))
+        .sort();
+      expect(files).toStrictEqual([
+        "Sentry.psd1",
+        "Sentry.psm1",
+        "assemblies-loader.ps1",
+        "lib/.gitignore",
+        "lib/net462/Microsoft.Bcl.AsyncInterfaces.dll",
+        "lib/net462/Microsoft.Bcl.AsyncInterfaces.license",
+        "lib/net462/Microsoft.Bcl.AsyncInterfaces.version",
+        "lib/net462/Sentry.dll",
+        "lib/net462/Sentry.license",
+        "lib/net462/Sentry.version",
+        "lib/net462/System.Buffers.dll",
+        "lib/net462/System.Buffers.license",
+        "lib/net462/System.Buffers.version",
+        "lib/net462/System.Collections.Immutable.dll",
+        "lib/net462/System.Collections.Immutable.license",
+        "lib/net462/System.Collections.Immutable.version",
+        "lib/net462/System.Memory.dll",
+        "lib/net462/System.Memory.license",
+        "lib/net462/System.Memory.version",
+        "lib/net462/System.Numerics.Vectors.dll",
+        "lib/net462/System.Numerics.Vectors.license",
+        "lib/net462/System.Numerics.Vectors.version",
+        "lib/net462/System.Reflection.Metadata.dll",
+        "lib/net462/System.Reflection.Metadata.license",
+        "lib/net462/System.Reflection.Metadata.version",
+        "lib/net462/System.Runtime.CompilerServices.Unsafe.dll",
+        "lib/net462/System.Runtime.CompilerServices.Unsafe.license",
+        "lib/net462/System.Runtime.CompilerServices.Unsafe.version",
+        "lib/net462/System.Text.Encodings.Web.dll",
+        "lib/net462/System.Text.Encodings.Web.license",
+        "lib/net462/System.Text.Encodings.Web.version",
+        "lib/net462/System.Text.Json.dll",
+        "lib/net462/System.Text.Json.license",
+        "lib/net462/System.Text.Json.version",
+        "lib/net462/System.Threading.Tasks.Extensions.dll",
+        "lib/net462/System.Threading.Tasks.Extensions.license",
+        "lib/net462/System.Threading.Tasks.Extensions.version",
+        "lib/net462/System.ValueTuple.dll",
+        "lib/net462/System.ValueTuple.license",
+        "lib/net462/System.ValueTuple.version",
+        "lib/net6.0/Sentry.dll",
+        "lib/net6.0/Sentry.license",
+        "lib/net6.0/Sentry.version",
+        "lib/net8.0/Sentry.dll",
+        "lib/net8.0/Sentry.license",
+        "lib/net8.0/Sentry.version",
+        "private/DiagnosticLogger.ps1",
+        "private/EventUpdater.ps1",
+        "private/Get-CurrentOptions.ps1",
+        "private/Get-SentryAssembliesDirectory.ps1",
+        "private/ScopeIntegration.ps1",
+        "private/SentryEventProcessor.cs",
+        "private/SentryEventProcessor.ps1",
+        "private/StackTraceProcessor.ps1",
+        "public/Add-SentryBreadcrumb.ps1",
+        "public/Edit-SentryScope.ps1",
+        "public/Invoke-WithSentry.ps1",
+        "public/Out-Sentry.ps1",
+        "public/Start-Sentry.ps1",
+        "public/Start-SentryTransaction.ps1",
+        "public/Stop-Sentry.ps1",
+      ]);
+    });
+  });
+});