diff --git a/changelogs/unreleased/feature-hashed-storage-repo-import.yml b/changelogs/unreleased/feature-hashed-storage-repo-import.yml
new file mode 100644
index 00000000000..73c16a99053
--- /dev/null
+++ b/changelogs/unreleased/feature-hashed-storage-repo-import.yml
@@ -0,0 +1,5 @@
+---
+title: Improve GitLab Import rake task to work with Hashed Storage and Subgroups
+merge_request:
+author:
+type: changed
diff --git a/doc/raketasks/import.md b/doc/raketasks/import.md
index 2b305cb5c99..97e9b36d1a6 100644
--- a/doc/raketasks/import.md
+++ b/doc/raketasks/import.md
@@ -3,49 +3,47 @@
 ## Notes
 
 - The owner of the project will be the first admin
-- The groups will be created as needed
+- The groups will be created as needed, including subgroups
 - The owner of the group will be the first admin
 - Existing projects will be skipped
+- The existing Git repos will be moved from disk (removed from the original path)
 
 ## How to use
 
-### Create a new folder inside the git repositories path. This will be the name of the new group.
+### Create a new folder to import your Git repositories from.
 
-- For omnibus-gitlab, it is located at: `/var/opt/gitlab/git-data/repositories` by default, unless you changed
-it in the `/etc/gitlab/gitlab.rb` file.
-- For installations from source, it is usually located at: `/home/git/repositories` or you can see where
-your repositories are located by looking at `config/gitlab.yml` under the `repositories => storages` entries
-(you'll usually use the `default` storage path to start).
-
-New folder needs to have git user ownership and read/write/execute access for git user and its group:
+The new folder needs to have git user ownership and read/write/execute access for git user and its group:
 
 ```
-sudo -u git mkdir /var/opt/gitlab/git-data/repositories/new_group
+sudo -u git mkdir /var/opt/gitlab/git-data/repository-import-<date>/new_group
 ```
 
-If you are using an installation from source, replace `/var/opt/gitlab/git-data`
-with `/home/git`.
-
 ### Copy your bare repositories inside this newly created folder:
 
+- Any .git repositories found on any of the subfolders will be imported as projects
+- Groups will be created as needed, these could be nested folders. Example:
+
+If we copy the repos to `/var/opt/gitlab/git-data/repository-import-<date>`, and repo A needs to be under the groups G1 and G2, it will
+have to be created under those folders: `/var/opt/gitlab/git-data/repository-import-<date>/G1/G2/A.git`.
+
+
 ```
-sudo cp -r /old/git/foo.git /var/opt/gitlab/git-data/repositories/new_group/
+sudo cp -r /old/git/foo.git /var/opt/gitlab/git-data/repository-import-<date>/new_group/
 
 # Do this once when you are done copying git repositories
-sudo chown -R git:git /var/opt/gitlab/git-data/repositories/new_group/
+sudo chown -R git:git /var/opt/gitlab/git-data/repository-import-<date>
 ```
 
 `foo.git` needs to be owned by the git user and git users group.
 
-If you are using an installation from source, replace `/var/opt/gitlab/git-data`
-with `/home/git`.
+If you are using an installation from source, replace `/var/opt/gitlab/` with `/home/git`.
 
 ### Run the command below depending on your type of installation:
 
 #### Omnibus Installation
 
 ```
-$ sudo gitlab-rake gitlab:import:repos
+$ sudo gitlab-rake gitlab:import:repos['/var/opt/gitlab/git-data/repository-import-<date>']
 ```
 
 #### Installation from source
@@ -54,16 +52,21 @@ Before running this command you need to change the directory to where your GitLa
 
 ```
 $ cd /home/git/gitlab
-$ sudo -u git -H bundle exec rake gitlab:import:repos RAILS_ENV=production
+$ sudo -u git -H bundle exec rake gitlab:import:repos['/var/opt/gitlab/git-data/repository-import-<date>'] RAILS_ENV=production
 ```
 
 #### Example output
 
 ```
-Processing abcd.git
+Processing /var/opt/gitlab/git-data/repository-import-1/a/b/c/blah.git
+ * Using namespace: a/b/c
+ * Created blah (a/b/c/blah)
+ * Skipping repo  /var/opt/gitlab/git-data/repository-import-1/a/b/c/blah.wiki.git
+Processing /var/opt/gitlab/git-data/repository-import-1/abcd.git
  * Created abcd (abcd.git)
-Processing group/xyz.git
- * Created Group group (2)
+Processing /var/opt/gitlab/git-data/repository-import-1/group/xyz.git
+ * Using namespace: group (2)
  * Created xyz (group/xyz.git)
+ * Skipping repo /var/opt/gitlab/git-data/repository-import-1/@shared/a/b/abcd.git
 [...]
 ```
diff --git a/lib/gitlab/bare_repository_import/importer.rb b/lib/gitlab/bare_repository_import/importer.rb
new file mode 100644
index 00000000000..196de667805
--- /dev/null
+++ b/lib/gitlab/bare_repository_import/importer.rb
@@ -0,0 +1,101 @@
+module Gitlab
+  module BareRepositoryImport
+    class Importer
+      NoAdminError = Class.new(StandardError)
+
+      def self.execute(import_path)
+        import_path << '/' unless import_path.ends_with?('/')
+        repos_to_import = Dir.glob(import_path + '**/*.git')
+
+        unless user = User.admins.order_id_asc.first
+          raise NoAdminError.new('No admin user found to import repositories')
+        end
+
+        repos_to_import.each do |repo_path|
+          bare_repo = Gitlab::BareRepositoryImport::Repository.new(import_path, repo_path)
+
+          if bare_repo.hashed? || bare_repo.wiki?
+            log " * Skipping repo #{bare_repo.repo_path}".color(:yellow)
+
+            next
+          end
+
+          log "Processing #{repo_path}".color(:yellow)
+
+          new(user, bare_repo).create_project_if_needed
+        end
+      end
+
+      attr_reader :user, :project_name, :bare_repo
+
+      delegate :log, to: :class
+      delegate :project_name, :project_full_path, :group_path, :repo_path, :wiki_path, to: :bare_repo
+
+      def initialize(user, bare_repo)
+        @user = user
+        @bare_repo = bare_repo
+      end
+
+      def create_project_if_needed
+        if project = Project.find_by_full_path(project_full_path)
+          log " * #{project.name} (#{project_full_path}) exists"
+
+          return project
+        end
+
+        create_project
+      end
+
+      private
+
+      def create_project
+        group = find_or_create_groups
+
+        project = Projects::CreateService.new(user,
+                                              name: project_name,
+                                              path: project_name,
+                                              skip_disk_validation: true,
+                                              namespace_id: group&.id).execute
+
+        if project.persisted? && mv_repo(project)
+          log " * Created #{project.name} (#{project_full_path})".color(:green)
+
+          ProjectCacheWorker.perform_async(project.id)
+        else
+          log " * Failed trying to create #{project.name} (#{project_full_path})".color(:red)
+          log "   Errors: #{project.errors.messages}".color(:red) if project.errors.any?
+        end
+
+        project
+      end
+
+      def mv_repo(project)
+        FileUtils.mv(repo_path, File.join(project.repository_storage_path, project.disk_path + '.git'))
+
+        if bare_repo.wiki_exists?
+          FileUtils.mv(wiki_path, File.join(project.repository_storage_path, project.disk_path + '.wiki.git'))
+        end
+
+        true
+      rescue => e
+        log " * Failed to move repo: #{e.message}".color(:red)
+
+        false
+      end
+
+      def find_or_create_groups
+        return nil unless group_path.present?
+
+        log " * Using namespace: #{group_path}"
+
+        Groups::NestedCreateService.new(user, group_path: group_path).execute
+      end
+
+      # This is called from within a rake task only used by Admins, so allow writing
+      # to STDOUT
+      def self.log(message)
+        puts message # rubocop:disable Rails/Output
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/bare_repository_import/repository.rb b/lib/gitlab/bare_repository_import/repository.rb
new file mode 100644
index 00000000000..8574ac6eb30
--- /dev/null
+++ b/lib/gitlab/bare_repository_import/repository.rb
@@ -0,0 +1,42 @@
+module Gitlab
+  module BareRepositoryImport
+    class Repository
+      attr_reader :group_path, :project_name, :repo_path
+
+      def initialize(root_path, repo_path)
+        @root_path = root_path
+        @repo_path = repo_path
+
+        # Split path into 'all/the/namespaces' and 'project_name'
+        @group_path, _, @project_name = repo_relative_path.rpartition('/')
+      end
+
+      def wiki_exists?
+        File.exist?(wiki_path)
+      end
+
+      def wiki?
+        @wiki ||= repo_path.end_with?('.wiki.git')
+      end
+
+      def wiki_path
+        @wiki_path ||= repo_path.sub(/\.git$/, '.wiki.git')
+      end
+
+      def hashed?
+        @hashed ||= group_path.start_with?('@hashed')
+      end
+
+      def project_full_path
+        @project_full_path ||= "#{group_path}/#{project_name}"
+      end
+
+      private
+
+      def repo_relative_path
+        # Remove root path and `.git` at the end
+        repo_path[@root_path.size...-4]
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/bare_repository_importer.rb b/lib/gitlab/bare_repository_importer.rb
deleted file mode 100644
index 1d98d187805..00000000000
--- a/lib/gitlab/bare_repository_importer.rb
+++ /dev/null
@@ -1,97 +0,0 @@
-module Gitlab
-  class BareRepositoryImporter
-    NoAdminError = Class.new(StandardError)
-
-    def self.execute
-      Gitlab.config.repositories.storages.each do |storage_name, repository_storage|
-        git_base_path = repository_storage['path']
-        repos_to_import = Dir.glob(git_base_path + '/**/*.git')
-
-        repos_to_import.each do |repo_path|
-          if repo_path.end_with?('.wiki.git')
-            log " * Skipping wiki repo"
-            next
-          end
-
-          log "Processing #{repo_path}".color(:yellow)
-
-          repo_relative_path = repo_path[repository_storage['path'].length..-1]
-                                 .sub(/^\//, '') # Remove leading `/`
-                                 .sub(/\.git$/, '') # Remove `.git` at the end
-          new(storage_name, repo_relative_path).create_project_if_needed
-        end
-      end
-    end
-
-    attr_reader :storage_name, :full_path, :group_path, :project_path, :user
-    delegate :log, to: :class
-
-    def initialize(storage_name, repo_path)
-      @storage_name = storage_name
-      @full_path = repo_path
-
-      unless @user = User.admins.order_id_asc.first
-        raise NoAdminError.new('No admin user found to import repositories')
-      end
-
-      @group_path, @project_path = File.split(repo_path)
-      @group_path = nil if @group_path == '.'
-    end
-
-    def create_project_if_needed
-      if project = Project.find_by_full_path(full_path)
-        log " * #{project.name} (#{full_path}) exists"
-        return project
-      end
-
-      create_project
-    end
-
-    private
-
-    def create_project
-      group = find_or_create_group
-
-      project_params = {
-        name: project_path,
-        path: project_path,
-        repository_storage: storage_name,
-        namespace_id: group&.id,
-        skip_disk_validation: true
-      }
-
-      project = Projects::CreateService.new(user, project_params).execute
-
-      if project.persisted?
-        log " * Created #{project.name} (#{full_path})".color(:green)
-        ProjectCacheWorker.perform_async(project.id)
-      else
-        log " * Failed trying to create #{project.name} (#{full_path})".color(:red)
-        log "   Errors: #{project.errors.messages}".color(:red)
-      end
-
-      project
-    end
-
-    def find_or_create_group
-      return nil unless group_path
-
-      if namespace = Namespace.find_by_full_path(group_path)
-        log " * Namespace #{group_path} exists.".color(:green)
-        return namespace
-      end
-
-      log " * Creating Group: #{group_path}"
-      Groups::NestedCreateService.new(user, group_path: group_path).execute
-    end
-
-    # This is called from within a rake task only used by Admins, so allow writing
-    # to STDOUT
-    #
-    # rubocop:disable Rails/Output
-    def self.log(message)
-      puts message
-    end
-    # rubocop:enable Rails/Output
-  end
-end
diff --git a/lib/tasks/gitlab/import.rake b/lib/tasks/gitlab/import.rake
index d227a0c8bdb..adfcc3cda22 100644
--- a/lib/tasks/gitlab/import.rake
+++ b/lib/tasks/gitlab/import.rake
@@ -2,23 +2,21 @@ namespace :gitlab do
   namespace :import do
     # How to use:
     #
-    #  1. copy the bare repos under the repository storage paths (commonly the default path is /home/git/repositories)
-    #  2. run: bundle exec rake gitlab:import:repos RAILS_ENV=production
+    #  1. copy the bare repos to a specific path that contain the group or subgroups structure as folders
+    #  2. run: bundle exec rake gitlab:import:repos[/path/to/repos] RAILS_ENV=production
     #
     # Notes:
     #  * The project owner will set to the first administator of the system
     #  * Existing projects will be skipped
-    #
-    #
     desc "GitLab | Import bare repositories from repositories -> storages into GitLab project instance"
-    task repos: :environment do
-      if Project.current_application_settings.hashed_storage_enabled
-        puts 'Cannot import repositories when Hashed Storage is enabled'.color(:red)
+    task :repos, [:import_path] => :environment do |_t, args|
+      unless args.import_path
+        puts 'Please specify an import path that contains the repositories'.color(:red)
 
         exit 1
       end
 
-      Gitlab::BareRepositoryImporter.execute
+      Gitlab::BareRepositoryImport::Importer.execute(args.import_path)
     end
   end
 end
diff --git a/spec/lib/gitlab/bare_repository_import/importer_spec.rb b/spec/lib/gitlab/bare_repository_import/importer_spec.rb
new file mode 100644
index 00000000000..7f3bf5fc41c
--- /dev/null
+++ b/spec/lib/gitlab/bare_repository_import/importer_spec.rb
@@ -0,0 +1,168 @@
+require 'spec_helper'
+
+describe Gitlab::BareRepositoryImport::Importer, repository: true do
+  let!(:admin) { create(:admin) }
+  let!(:base_dir) { Dir.mktmpdir + '/' }
+  let(:bare_repository) { Gitlab::BareRepositoryImport::Repository.new(base_dir, File.join(base_dir, "#{project_path}.git")) }
+
+  subject(:importer) { described_class.new(admin, bare_repository) }
+
+  before do
+    allow(described_class).to receive(:log)
+  end
+
+  after do
+    FileUtils.rm_rf(base_dir)
+  end
+
+  shared_examples 'importing a repository' do
+    describe '.execute' do
+      it 'creates a project for a repository in storage' do
+        FileUtils.mkdir_p(File.join(base_dir, "#{project_path}.git"))
+        fake_importer = double
+
+        expect(described_class).to receive(:new).and_return(fake_importer)
+        expect(fake_importer).to receive(:create_project_if_needed)
+
+        described_class.execute(base_dir)
+      end
+
+      it 'skips wiki repos' do
+        repo_dir = File.join(base_dir, 'the-group', 'the-project.wiki.git')
+        FileUtils.mkdir_p(File.join(repo_dir))
+
+        expect(described_class).to receive(:log).with(" * Skipping repo #{repo_dir}")
+        expect(described_class).not_to receive(:new)
+
+        described_class.execute(base_dir)
+      end
+
+      context 'without admin users' do
+        let(:admin) { nil }
+
+        it 'raises an error' do
+          expect { described_class.execute(base_dir) }.to raise_error(Gitlab::BareRepositoryImport::Importer::NoAdminError)
+        end
+      end
+    end
+
+    describe '#create_project_if_needed' do
+      it 'starts an import for a project that did not exist' do
+        expect(importer).to receive(:create_project)
+
+        importer.create_project_if_needed
+      end
+
+      it 'skips importing when the project already exists' do
+        project = create(:project, path: 'a-project', namespace: existing_group)
+
+        expect(importer).not_to receive(:create_project)
+        expect(importer).to receive(:log).with(" * #{project.name} (#{project_path}) exists")
+
+        importer.create_project_if_needed
+      end
+
+      it 'creates a project with the correct path in the database' do
+        importer.create_project_if_needed
+
+        expect(Project.find_by_full_path(project_path)).not_to be_nil
+      end
+
+      it 'creates the Git repo in disk' do
+        FileUtils.mkdir_p(File.join(base_dir, "#{project_path}.git"))
+
+        importer.create_project_if_needed
+
+        project = Project.find_by_full_path(project_path)
+
+        expect(File).to exist(File.join(project.repository_storage_path, project.disk_path + '.git'))
+      end
+
+      context 'hashed storage enabled' do
+        it 'creates a project with the correct path in the database' do
+          stub_application_setting(hashed_storage_enabled: true)
+
+          importer.create_project_if_needed
+
+          expect(Project.find_by_full_path(project_path)).not_to be_nil
+        end
+      end
+    end
+  end
+
+  context 'with subgroups', :nested_groups do
+    let(:project_path) { 'a-group/a-sub-group/a-project' }
+
+    let(:existing_group) do
+      group = create(:group, path: 'a-group')
+      create(:group, path: 'a-sub-group', parent: group)
+    end
+
+    it_behaves_like 'importing a repository'
+  end
+
+  context 'without subgroups' do
+    let(:project_path) { 'a-group/a-project' }
+    let(:existing_group) { create(:group, path: 'a-group') }
+
+    it_behaves_like 'importing a repository'
+  end
+
+  context 'without groups' do
+    let(:project_path) { 'a-project' }
+
+    it 'starts an import for a project that did not exist' do
+      expect(importer).to receive(:create_project)
+
+      importer.create_project_if_needed
+    end
+
+    it 'creates a project with the correct path in the database' do
+      importer.create_project_if_needed
+
+      expect(Project.find_by_full_path("#{admin.full_path}/#{project_path}")).not_to be_nil
+    end
+
+    it 'creates the Git repo in disk' do
+      FileUtils.mkdir_p(File.join(base_dir, "#{project_path}.git"))
+
+      importer.create_project_if_needed
+
+      project = Project.find_by_full_path("#{admin.full_path}/#{project_path}")
+
+      expect(File).to exist(File.join(project.repository_storage_path, project.disk_path + '.git'))
+    end
+  end
+
+  context 'with Wiki' do
+    let(:project_path) { 'a-group/a-project' }
+    let(:existing_group) { create(:group, path: 'a-group') }
+
+    it_behaves_like 'importing a repository'
+
+    it 'creates the Wiki git repo in disk' do
+      FileUtils.mkdir_p(File.join(base_dir, "#{project_path}.git"))
+      FileUtils.mkdir_p(File.join(base_dir, "#{project_path}.wiki.git"))
+
+      importer.create_project_if_needed
+
+      project = Project.find_by_full_path(project_path)
+
+      expect(File).to exist(File.join(project.repository_storage_path, project.disk_path + '.wiki.git'))
+    end
+  end
+
+  context 'when subgroups are not available' do
+    let(:project_path) { 'a-group/a-sub-group/a-project' }
+
+    before do
+      expect(Group).to receive(:supports_nested_groups?) { false }
+    end
+
+    describe '#create_project_if_needed' do
+      it 'raises an error' do
+        expect { importer.create_project_if_needed }.to raise_error('Nested groups are not supported on MySQL')
+      end
+    end
+  end
+end
diff --git a/spec/lib/gitlab/bare_repository_import/repository_spec.rb b/spec/lib/gitlab/bare_repository_import/repository_spec.rb
new file mode 100644
index 00000000000..2db737f5fb6
--- /dev/null
+++ b/spec/lib/gitlab/bare_repository_import/repository_spec.rb
@@ -0,0 +1,51 @@
+require 'spec_helper'
+
+describe ::Gitlab::BareRepositoryImport::Repository do
+  let(:project_repo_path) { described_class.new('/full/path/', '/full/path/to/repo.git') }
+
+  it 'stores the repo path' do
+    expect(project_repo_path.repo_path).to eq('/full/path/to/repo.git')
+  end
+
+  it 'stores the group path' do
+    expect(project_repo_path.group_path).to eq('to')
+  end
+
+  it 'stores the project name' do
+    expect(project_repo_path.project_name).to eq('repo')
+  end
+
+  it 'stores the wiki path' do
+    expect(project_repo_path.wiki_path).to eq('/full/path/to/repo.wiki.git')
+  end
+
+  describe '#wiki?' do
+    it 'returns true if it is a wiki' do
+      wiki_path = described_class.new('/full/path/', '/full/path/to/a/b/my.wiki.git')
+
+      expect(wiki_path.wiki?).to eq(true)
+    end
+
+    it 'returns false if it is not a wiki' do
+      expect(project_repo_path.wiki?).to eq(false)
+    end
+  end
+
+  describe '#hashed?' do
+    it 'returns true if it is a hashed folder' do
+      path = described_class.new('/full/path/', '/full/path/@hashed/my.repo.git')
+
+      expect(path.hashed?).to eq(true)
+    end
+
+    it 'returns false if it is not a hashed folder' do
+      expect(project_repo_path.hashed?).to eq(false)
+    end
+  end
+
+  describe '#project_full_path' do
+    it 'returns the project full path' do
+      expect(project_repo_path.repo_path).to eq('/full/path/to/repo.git')
+    end
+  end
+end
diff --git a/spec/lib/gitlab/bare_repository_importer_spec.rb b/spec/lib/gitlab/bare_repository_importer_spec.rb
deleted file mode 100644
index 36d1844b5b1..00000000000
--- a/spec/lib/gitlab/bare_repository_importer_spec.rb
+++ /dev/null
@@ -1,100 +0,0 @@
-require 'spec_helper'
-
-describe Gitlab::BareRepositoryImporter, repository: true do
-  subject(:importer) { described_class.new('default', project_path) }
-
-  let!(:admin) { create(:admin) }
-
-  before do
-    allow(described_class).to receive(:log)
-  end
-
-  shared_examples 'importing a repository' do
-    describe '.execute' do
-      it 'creates a project for a repository in storage' do
-        FileUtils.mkdir_p(File.join(TestEnv.repos_path, "#{project_path}.git"))
-        fake_importer = double
-
-        expect(described_class).to receive(:new).with('default', project_path)
-                                     .and_return(fake_importer)
-        expect(fake_importer).to receive(:create_project_if_needed)
-
-        described_class.execute
-      end
-
-      it 'skips wiki repos' do
-        FileUtils.mkdir_p(File.join(TestEnv.repos_path, 'the-group', 'the-project.wiki.git'))
-
-        expect(described_class).to receive(:log).with(' * Skipping wiki repo')
-        expect(described_class).not_to receive(:new)
-
-        described_class.execute
-      end
-    end
-
-    describe '#initialize' do
-      context 'without admin users' do
-        let(:admin) { nil }
-
-        it 'raises an error' do
-          expect { importer }.to raise_error(Gitlab::BareRepositoryImporter::NoAdminError)
-        end
-      end
-    end
-
-    describe '#create_project_if_needed' do
-      it 'starts an import for a project that did not exist' do
-        expect(importer).to receive(:create_project)
-
-        importer.create_project_if_needed
-      end
-
-      it 'skips importing when the project already exists' do
-        project = create(:project, path: 'a-project', namespace: existing_group)
-
-        expect(importer).not_to receive(:create_project)
-        expect(importer).to receive(:log).with(" * #{project.name} (#{project_path}) exists")
-
-        importer.create_project_if_needed
-      end
-
-      it 'creates a project with the correct path in the database' do
-        importer.create_project_if_needed
-
-        expect(Project.find_by_full_path(project_path)).not_to be_nil
-      end
-    end
-  end
-
-  context 'with subgroups', :nested_groups do
-    let(:project_path) { 'a-group/a-sub-group/a-project' }
-
-    let(:existing_group) do
-      group = create(:group, path: 'a-group')
-      create(:group, path: 'a-sub-group', parent: group)
-    end
-
-    it_behaves_like 'importing a repository'
-  end
-
-  context 'without subgroups' do
-    let(:project_path) { 'a-group/a-project' }
-    let(:existing_group) { create(:group, path: 'a-group') }
-
-    it_behaves_like 'importing a repository'
-  end
-
-  context 'when subgroups are not available' do
-    let(:project_path) { 'a-group/a-sub-group/a-project' }
-
-    before do
-      expect(Group).to receive(:supports_nested_groups?) { false }
-    end
-
-    describe '#create_project_if_needed' do
-      it 'raises an error' do
-        expect { importer.create_project_if_needed }.to raise_error('Nested groups are not supported on MySQL')
-      end
-    end
-  end
-end