diff --git a/.gitignore b/.gitignore
index ca683dc5d4..03a65905e1 100644
--- a/.gitignore
+++ b/.gitignore
@@ -312,3 +312,4 @@ docs/type3/signatures/
 
 # Local screenshot artifacts from *-screenshots.spec.ts
 frontend/editor/screenshots/
+frontend/editor/src-tauri/libs/.variant
diff --git a/frontend/editor/public/locales/en-US/translation.toml b/frontend/editor/public/locales/en-US/translation.toml
index 87d8ffb556..402142ea17 100644
--- a/frontend/editor/public/locales/en-US/translation.toml
+++ b/frontend/editor/public/locales/en-US/translation.toml
@@ -4321,7 +4321,8 @@ download = "Download"
 downloadAll = "Download all"
 downloadVersion = "Download this version"
 dropOverlay = "Drop files to upload"
-dropOverlaySub = "Files start in Local. Use 'Move to' or 'Save to cloud' to organize them into a folder."
+dropOverlaySub = "Files land in Local. Organize them into folders any time."
+dropOverlaySubFolder = "They'll be added to this folder."
 duplicate = "Duplicate"
 file = "File"
 fileInfo = "File info"
@@ -4334,12 +4335,19 @@ inPath = "in {{path}}"
 inWorkspace = "Open"
 inWorkspaceAria = "Already in workspace"
 loading = "Loading…"
-localFoldersUnavailable = "Folders are cloud-only - save a file to the cloud to organize it."
+localFolderManagedByDisk = "This folder is managed by its directory on disk."
+moveAcrossKindsBlocked = "These folders live in different places, so one can't go inside the other."
+moveIntoMountCloudSkipped_one = "{{count}} server file stayed in your files. It lives on the server, not on this disk."
+moveIntoMountCloudSkipped_other = "{{count}} server files stayed in your files. They live on the server, not on this disk."
+moveIntoMountFailed_one = "{{count}} file could not be written into the folder."
+moveIntoMountFailed_other = "{{count}} files could not be written into the folder."
+moveIntoVirtualCloudSkipped_one = "{{count}} server file was left in place. Server files can't live in browser-only folders."
+moveIntoVirtualCloudSkipped_other = "{{count}} server files were left in place. Server files can't live in browser-only folders."
 moveSkippedRemote_one = "{{count}} file couldn't be moved on the server (no permission or already deleted)."
 moveSkippedRemote_other = "{{count}} files couldn't be moved on the server (no permission or already deleted)."
 moveTo = "Move to…"
 newFolder = "New folder"
-newFolderStorageDisabled = "Server folder storage isn't enabled. Ask your admin to turn it on."
+newFolderStorageDisabled = "Server folder storage isn't enabled."
 newFolderTabUnavailable = "Switch to All or Cloud to create folders."
 offlineNoFolderEdits = "Server folder sync unavailable - folder changes are disabled. Check sign-in and storage configuration."
 open = "Open"
@@ -4347,6 +4355,7 @@ openVersionInWorkspace = "Open in workspace"
 originFilter = "Filter by source"
 refresh = "Refresh from server"
 remove = "Delete"
+removeLocalFolder = "Remove (files stay on disk)"
 removeVersion = "Remove this version"
 rename = "Rename"
 renamed = "Renamed"
@@ -4359,6 +4368,7 @@ selectAll = "Select all"
 selectAllHint = "Click to select all. Tip: hold Ctrl (or Cmd) to add files one at a time, Shift to select a range."
 selectedCount = "{{count}} selected"
 selectFile = "Select file {{name}}"
+serverFolderNeedsConnection = "Sign in to Stirling Cloud or connect a self-hosted server to use server folders."
 shareDisabledHint = "File sharing isn't enabled on this server. Ask your admin to enable it."
 shareManage = "Manage sharing"
 showDetails = "Show details"
@@ -4367,7 +4377,6 @@ summary_one = "{{count}} item"
 summary_other = "{{count}} items"
 tree = "Folders"
 upload = "Upload"
-uploadedToLocal = "Uploaded files start in Local. Use 'Save to cloud' to put them in a folder."
 uploadFromMobile = "Upload from Mobile"
 versionActions = "Version actions"
 versionCollapse = "Collapse middle versions"
@@ -4433,6 +4442,8 @@ title = "You haven't shared any files yet"
 [filesPage.error]
 actionFailed = "Could not {{action}}."
 actionFailedDetail = "Could not {{action}}: {{message}}"
+addFolderFailed = "Could not add the folder."
+addFolderFailedDetail = "Could not add the folder: {{message}}"
 cloudDeleteFailed_one = "Couldn't delete 1 file from the cloud."
 cloudDeleteFailed_other = "Couldn't delete {{count}} files from the cloud."
 deleteFolderFailed = "Could not delete folder."
@@ -4445,8 +4456,14 @@ moveFilesFailed = "Could not move files."
 moveFilesFailedDetail = "Could not move files: {{message}}"
 moveFolderFailed = "Could not move folder."
 moveFolderFailedDetail = "Could not move folder: {{message}}"
+openDiskFileFailed = "Could not open {{name}}."
+openDiskFileFailedDetail = "Could not open {{name}}: {{message}}"
+readFolderFailed = "Could not read the folder."
+readFolderFailedDetail = "Could not read the folder: {{message}}"
 removeFilesFailed = "Could not remove files."
 removeFilesFailedDetail = "Could not remove files: {{message}}"
+removeFolderFailed = "Could not remove folder."
+removeFolderFailedDetail = "Could not remove folder: {{message}}"
 uploadFilesFailed = "Could not upload files."
 uploadFilesFailedDetail = "Could not upload files: {{message}}"
 
@@ -4466,12 +4483,21 @@ activeCount = "{{count}} filters active"
 clearAll = "Clear filters"
 label = "Filters"
 
+[filesPage.folderKind]
+local = "Local folder"
+virtual = "Browser folder"
+
 [filesPage.folderName]
 cancel = "Cancel"
 error = "Could not save folder. Try again."
 label = "Folder name"
 placeholder = "Folder name"
 
+[filesPage.folderOrigin]
+diskHint = "A folder mounted from a directory on your disk"
+serverHint = "A folder stored on the Stirling server"
+virtualHint = "A folder that lives only in this browser"
+
 [filesPage.moveDialog]
 cancel = "Cancel"
 confirm = "Move here"
@@ -4485,10 +4511,16 @@ newFolderPlaceholder = "Folder name"
 newFolderToggle = "Create new folder…"
 title = "Move to folder"
 
+[filesPage.newFolderMenu]
+addExisting = "Add local folder"
+server = "New folder on the server"
+serverHint = "Synced to your account, available wherever you sign in."
+
 [filesPage.origin]
 all = "All sources"
 cloud = "Cloud"
 cloudHint = "Stored on the Stirling server"
+diskHint = "A file in the mounted folder on your disk"
 local = "Local"
 localHint = "Only stored in this browser"
 shared = "Shared"
diff --git a/frontend/editor/src-tauri/capabilities/default.json b/frontend/editor/src-tauri/capabilities/default.json
index 4147b69ce0..34d333a3de 100644
--- a/frontend/editor/src-tauri/capabilities/default.json
+++ b/frontend/editor/src-tauri/capabilities/default.json
@@ -39,6 +39,18 @@
       "identifier": "fs:allow-read-file",
       "allow": [{ "path": "**" }]
     },
+    {
+      "identifier": "fs:allow-read-dir",
+      "allow": [{ "path": "**" }]
+    },
+    {
+      "identifier": "fs:allow-stat",
+      "allow": [{ "path": "**" }]
+    },
+    {
+      "identifier": "fs:allow-mkdir",
+      "allow": [{ "path": "**" }]
+    },
     {
       "identifier": "fs:allow-write-file",
       "allow": [{ "path": "**" }]
diff --git a/frontend/editor/src/core/components/filesPage/FileGrid.tsx b/frontend/editor/src/core/components/filesPage/FileGrid.tsx
index 334ad76805..8ab5bdbca9 100644
--- a/frontend/editor/src/core/components/filesPage/FileGrid.tsx
+++ b/frontend/editor/src/core/components/filesPage/FileGrid.tsx
@@ -20,7 +20,13 @@ import CreateNewFolderIcon from "@mui/icons-material/CreateNewFolder";
 import SearchIcon from "@mui/icons-material/Search";
 
 import { FileId } from "@app/types/file";
-import { FolderId, FolderRecord, ROOT_FOLDER_ID } from "@app/types/folder";
+import {
+  FolderId,
+  FolderRecord,
+  ROOT_FOLDER_ID,
+  folderKind,
+} from "@app/types/folder";
+import type { DiskFileEntry } from "@app/services/localFolderContents";
 import { useFolders } from "@app/contexts/FolderContext";
 import { usePolicyFileBadges } from "@app/hooks/usePolicyFileBadges";
 import { StirlingFileStub } from "@app/types/fileContext";
@@ -36,20 +42,64 @@ import { FileOriginBadge } from "@app/components/filesPage/FileOriginBadge";
 import { FolderThumbnail } from "@app/components/filesPage/FolderThumbnail";
 import { findFolderIcon } from "@app/components/filesPage/folderIcons";
 import { FolderAppearancePicker } from "@app/components/filesPage/FolderAppearancePicker";
-import { useLazyThumbnail } from "@app/hooks/useLazyThumbnail";
+import {
+  useLazyThumbnail,
+  useDiskThumbnail,
+} from "@app/hooks/useLazyThumbnail";
 import { useFileActionIcons } from "@app/hooks/useFileActionIcons";
 import { useFileActionTerminology } from "@app/hooks/useFileActionTerminology";
 import type { FilesPageSortMode } from "@app/contexts/FilesPageContext";
 import { OpenInNewWindowMenuItem } from "@app/components/filesPage/OpenInNewWindowMenuItem";
 
+/**
+ * The origin badge a folder wears, mirroring the one its files would: a server folder
+ * is Cloud, a virtual folder is Local (this browser), a mounted folder is On disk.
+ */
+function useFolderOriginBadge(folder: FolderRecord): {
+  origin: "cloud" | "local";
+  tooltip: string;
+} {
+  const { t } = useTranslation();
+  switch (folderKind(folder)) {
+    case "virtual":
+      return {
+        origin: "local",
+        tooltip: t(
+          "filesPage.folderOrigin.virtualHint",
+          "A folder that lives only in this browser",
+        ),
+      };
+    case "local":
+      return {
+        // Same mark as a virtual folder: what matters is that it lives on
+        // this device, not which corner of it. The tooltip says which.
+        origin: "local",
+        tooltip: t(
+          "filesPage.folderOrigin.diskHint",
+          "A folder mounted from a directory on your disk",
+        ),
+      };
+    default:
+      return {
+        origin: "cloud",
+        tooltip: t(
+          "filesPage.folderOrigin.serverHint",
+          "A folder stored on the Stirling server",
+        ),
+      };
+  }
+}
+
 export type FilesPageViewMode = "grid" | "list";
 
 export interface FilesPageEntry {
-  kind: "folder" | "file";
+  kind: "folder" | "file" | "diskFile";
   folder?: FolderRecord;
   /** Number of files inside this folder (folder entries only). */
   folderFileCount?: number;
   file?: StirlingFileStub;
+  /** A file read straight off a mounted directory (kind "diskFile"). */
+  disk?: DiskFileEntry;
   /** Parent breadcrumb path for search results outside the current folder. */
   parentPath?: string;
 }
@@ -66,6 +116,7 @@ interface FileGridProps {
   onOpenFolder: (id: FolderId) => void;
   /** "Add to workspace". */
   onOpenFile: (file: StirlingFileStub) => void;
+  onOpenDiskFile?: (entry: DiskFileEntry) => void;
   onMoveFiles: (
     fileIds: FileId[],
     targetFolderId: FolderId | null,
@@ -383,6 +434,7 @@ function GridView(props: FileGridProps) {
     onSelectFile,
     onOpenFolder,
     onOpenFile,
+    onOpenDiskFile,
     onMoveFiles,
     onMoveFolder,
     onRenameFolder,
@@ -414,6 +466,15 @@ function GridView(props: FileGridProps) {
             />
           );
         }
+        if (entry.kind === "diskFile" && entry.disk) {
+          return (
+            <DiskFileCard
+              key={`disk-${entry.disk.path}`}
+              entry={entry.disk}
+              onOpen={() => onOpenDiskFile?.(entry.disk!)}
+            />
+          );
+        }
         if (entry.kind === "file" && entry.file) {
           return (
             <FileCard
@@ -470,6 +531,12 @@ function FolderCard({
 }: FolderCardProps) {
   const { t } = useTranslation();
   const { serverReachable, setError } = useFolders();
+  // Only a server folder can go offline: the other kinds take their name, look and
+  // lifetime from elsewhere, so their edit items are hidden rather than disabled.
+  const kind = folderKind(folder);
+  const originBadge = useFolderOriginBadge(folder);
+  const editsDisabled = kind === "server" && !serverReachable;
+  const editsHidden = kind === "local";
   const offlineHint = t(
     "filesPage.offlineNoFolderEdits",
     "Offline - folder changes are disabled.",
@@ -517,9 +584,7 @@ function FolderCard({
         e.dataTransfer.effectAllowed = "move";
       }}
       {...dropHandlers}
-      className={`files-page-card is-folder${
-        isDropTarget ? " is-drop-target" : ""
-      }`}
+      className={`files-page-card is-folder${isDropTarget ? " is-drop-target" : ""}`}
       onDoubleClick={onOpen}
       onContextMenu={(e) => {
         e.preventDefault();
@@ -540,6 +605,13 @@ function FolderCard({
           fileCount={fileCount}
           iconGlyph={findFolderIcon(folder.icon)?.glyph}
         />
+        <div className="files-page-card-origin">
+          <FileOriginBadge
+            origin={originBadge.origin}
+            tooltip={originBadge.tooltip}
+            compact
+          />
+        </div>
       </div>
       <div className="files-page-card-body">
         <div className="files-page-card-name" title={folder.name}>
@@ -577,33 +649,51 @@ function FolderCard({
             >
               {t("filesPage.open", "Open")}
             </Menu.Item>
-            <Menu.Item
-              leftSection={<DriveFileRenameOutlineIcon fontSize="small" />}
-              onClick={onRename}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
-            >
-              {t("filesPage.rename", "Rename")}
-            </Menu.Item>
-            <Menu.Divider />
-            <Menu.Label>
-              {t("filesPage.appearance.title", "Appearance")}
-            </Menu.Label>
-            <FolderAppearancePicker
-              folder={folder}
-              onChange={onChangeAppearance}
-              disabled={!serverReachable}
-            />
-            <Menu.Divider />
-            <Menu.Item
-              color="red"
-              leftSection={<DeleteIcon fontSize="small" />}
-              onClick={onDelete}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
-            >
-              {t("filesPage.deleteFolder", "Delete folder")}
-            </Menu.Item>
+            {/* Only a mount root can be removed; a subdirectory is the
+                disk's, and the app never deletes directories. */}
+            {editsHidden && folder.parentFolderId === null && (
+              <Menu.Item
+                color="red"
+                leftSection={<DeleteIcon fontSize="small" />}
+                onClick={onDelete}
+              >
+                {t(
+                  "filesPage.removeLocalFolder",
+                  "Remove (files stay on disk)",
+                )}
+              </Menu.Item>
+            )}
+            {!editsHidden && (
+              <>
+                <Menu.Item
+                  leftSection={<DriveFileRenameOutlineIcon fontSize="small" />}
+                  onClick={onRename}
+                  disabled={editsDisabled}
+                  title={editsDisabled ? offlineHint : undefined}
+                >
+                  {t("filesPage.rename", "Rename")}
+                </Menu.Item>
+                <Menu.Divider />
+                <Menu.Label>
+                  {t("filesPage.appearance.title", "Appearance")}
+                </Menu.Label>
+                <FolderAppearancePicker
+                  folder={folder}
+                  onChange={onChangeAppearance}
+                  disabled={editsDisabled}
+                />
+                <Menu.Divider />
+                <Menu.Item
+                  color="red"
+                  leftSection={<DeleteIcon fontSize="small" />}
+                  onClick={onDelete}
+                  disabled={editsDisabled}
+                  title={editsDisabled ? offlineHint : undefined}
+                >
+                  {t("filesPage.deleteFolder", "Delete folder")}
+                </Menu.Item>
+              </>
+            )}
           </Menu.Dropdown>
         </Menu>
       </div>
@@ -908,9 +998,7 @@ function FileCard({
       onKeyDown={(e) => {
         if (e.key === "Enter") onDoubleClick();
       }}
-      className={`files-page-card${isSelected ? " is-selected" : ""}${
-        isInWorkspace ? " is-in-workspace" : ""
-      }`}
+      className={`files-page-card${isSelected ? " is-selected" : ""}${isInWorkspace ? " is-in-workspace" : ""}`}
     >
       {isInWorkspace && (
         <span
@@ -1011,6 +1099,7 @@ function ListView(
     onSetSelection,
     onOpenFolder,
     onOpenFile,
+    onOpenDiskFile,
     onMoveFiles,
     onMoveFolder,
     onRenameFolder,
@@ -1129,6 +1218,15 @@ function ListView(
             />
           );
         }
+        if (entry.kind === "diskFile" && entry.disk) {
+          return (
+            <DiskFileRow
+              key={`disk-${entry.disk.path}`}
+              entry={entry.disk}
+              onOpen={() => onOpenDiskFile?.(entry.disk!)}
+            />
+          );
+        }
         if (entry.kind === "file" && entry.file) {
           return (
             <FileRow
@@ -1183,6 +1281,11 @@ function FolderRow({
 }: FolderRowProps) {
   const { t } = useTranslation();
   const { serverReachable, setError } = useFolders();
+  // Kinds gate the edit items, as in FolderCard.
+  const kind = folderKind(folder);
+  const originBadge = useFolderOriginBadge(folder);
+  const editsDisabled = kind === "server" && !serverReachable;
+  const editsHidden = kind === "local";
   const offlineHint = t(
     "filesPage.offlineNoFolderEdits",
     "Offline - folder changes are disabled.",
@@ -1278,8 +1381,19 @@ function FolderRow({
             </span>
           )}
         </span>
+        <FileOriginBadge
+          origin={originBadge.origin}
+          tooltip={originBadge.tooltip}
+          compact
+        />
+      </span>
+      <span role="gridcell">
+        {kind === "virtual"
+          ? t("filesPage.folderKind.virtual", "Browser folder")
+          : kind === "local"
+            ? t("filesPage.folderKind.local", "Local folder")
+            : t("filesPage.folder", "Folder")}
       </span>
-      <span role="gridcell">{t("filesPage.folder", "Folder")}</span>
       <span role="gridcell">
         {fileCount === 0
           ? "-"
@@ -1308,33 +1422,51 @@ function FolderRow({
             >
               {t("filesPage.open", "Open")}
             </Menu.Item>
-            <Menu.Item
-              leftSection={<DriveFileRenameOutlineIcon fontSize="small" />}
-              onClick={onRename}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
-            >
-              {t("filesPage.rename", "Rename")}
-            </Menu.Item>
-            <Menu.Divider />
-            <Menu.Label>
-              {t("filesPage.appearance.title", "Appearance")}
-            </Menu.Label>
-            <FolderAppearancePicker
-              folder={folder}
-              onChange={onChangeAppearance}
-              disabled={!serverReachable}
-            />
-            <Menu.Divider />
-            <Menu.Item
-              color="red"
-              leftSection={<DeleteIcon fontSize="small" />}
-              onClick={onDelete}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
-            >
-              {t("filesPage.deleteFolder", "Delete folder")}
-            </Menu.Item>
+            {/* Only a mount root can be removed; a subdirectory is the
+                disk's, and the app never deletes directories. */}
+            {editsHidden && folder.parentFolderId === null && (
+              <Menu.Item
+                color="red"
+                leftSection={<DeleteIcon fontSize="small" />}
+                onClick={onDelete}
+              >
+                {t(
+                  "filesPage.removeLocalFolder",
+                  "Remove (files stay on disk)",
+                )}
+              </Menu.Item>
+            )}
+            {!editsHidden && (
+              <>
+                <Menu.Item
+                  leftSection={<DriveFileRenameOutlineIcon fontSize="small" />}
+                  onClick={onRename}
+                  disabled={editsDisabled}
+                  title={editsDisabled ? offlineHint : undefined}
+                >
+                  {t("filesPage.rename", "Rename")}
+                </Menu.Item>
+                <Menu.Divider />
+                <Menu.Label>
+                  {t("filesPage.appearance.title", "Appearance")}
+                </Menu.Label>
+                <FolderAppearancePicker
+                  folder={folder}
+                  onChange={onChangeAppearance}
+                  disabled={editsDisabled}
+                />
+                <Menu.Divider />
+                <Menu.Item
+                  color="red"
+                  leftSection={<DeleteIcon fontSize="small" />}
+                  onClick={onDelete}
+                  disabled={editsDisabled}
+                  title={editsDisabled ? offlineHint : undefined}
+                >
+                  {t("filesPage.deleteFolder", "Delete folder")}
+                </Menu.Item>
+              </>
+            )}
           </Menu.Dropdown>
         </Menu>
       </span>
@@ -1402,9 +1534,7 @@ function FileRow({
       onKeyDown={(e) => {
         if (e.key === "Enter") onOpen();
       }}
-      className={`files-page-list-row${isSelected ? " is-selected" : ""}${
-        isInWorkspace ? " is-in-workspace" : ""
-      }`}
+      className={`files-page-list-row${isSelected ? " is-selected" : ""}${isInWorkspace ? " is-in-workspace" : ""}`}
     >
       {/* Each direct child is a gridcell: a role="row" may only own cells, so the
           checkbox and the actions menu have to sit inside one.
@@ -1516,3 +1646,194 @@ function FileRow({
 
 // Re-export root constant for caller convenience
 export { ROOT_FOLDER_ID };
+
+/**
+ * No stub behind it, so no selection, move, rename or delete: the disk owns the
+ * file and the only affordance is adding it to the workspace.
+ */
+function DiskFileCard({
+  entry,
+  onOpen,
+}: {
+  entry: DiskFileEntry;
+  onOpen: () => void;
+}) {
+  const { t } = useTranslation();
+  const thumbnail = useDiskThumbnail(entry);
+  const extension = entry.name.includes(".")
+    ? entry.name.split(".").pop()!.toUpperCase()
+    : "";
+  const isPdf = extension === "PDF";
+  return (
+    <div
+      className="files-page-card"
+      role="listitem"
+      tabIndex={0}
+      onDoubleClick={onOpen}
+      onKeyDown={(e) => {
+        if (e.key === "Enter") onOpen();
+      }}
+      title={entry.path}
+    >
+      <div className="files-page-card-thumb">
+        {thumbnail ? (
+          <img src={thumbnail} alt="" draggable={false} />
+        ) : (
+          <div className="files-page-card-thumb-fallback">
+            {isPdf ? (
+              <PictureAsPdfIcon style={{ fontSize: "2rem" }} />
+            ) : (
+              <InsertDriveFileIcon style={{ fontSize: "2rem" }} />
+            )}
+            <span>{extension || "FILE"}</span>
+          </div>
+        )}
+        <div className="files-page-card-origin">
+          <FileOriginBadge
+            origin="local"
+            tooltip={t(
+              "filesPage.origin.diskHint",
+              "A file in the mounted folder on your disk",
+            )}
+            compact
+          />
+        </div>
+      </div>
+      <div className="files-page-card-body">
+        <div className="files-page-card-name" title={entry.name}>
+          {entry.name}
+        </div>
+        <div className="files-page-card-meta">
+          <span>{formatFileSize(entry.sizeBytes)}</span>
+          <span>·</span>
+          <span>{getFileDate({ lastModified: entry.lastModified })}</span>
+        </div>
+      </div>
+      <div className="files-page-card-actions">
+        <Menu shadow="md" position="bottom-end" withinPortal>
+          <Menu.Target>
+            <ActionIcon
+              size="sm"
+              onClick={(e) => e.stopPropagation()}
+              aria-label={t("filesPage.fileMenu", "File actions")}
+            >
+              <MoreVertIcon fontSize="small" />
+            </ActionIcon>
+          </Menu.Target>
+          <Menu.Dropdown>
+            <Menu.Item
+              leftSection={<OpenInNewIcon fontSize="small" />}
+              onClick={(e) => {
+                e.stopPropagation();
+                onOpen();
+              }}
+            >
+              {t("filesPage.addToWorkspace", "Add to workspace")}
+            </Menu.Item>
+          </Menu.Dropdown>
+        </Menu>
+      </div>
+    </div>
+  );
+}
+
+/** List-view sibling of {@link DiskFileCard}; same single affordance. */
+function DiskFileRow({
+  entry,
+  onOpen,
+}: {
+  entry: DiskFileEntry;
+  onOpen: () => void;
+}) {
+  const { t } = useTranslation();
+  const thumbnail = useDiskThumbnail(entry);
+  const ext = entry.name.includes(".")
+    ? entry.name.split(".").pop()!.toUpperCase()
+    : "";
+  return (
+    <div
+      role="row"
+      tabIndex={0}
+      className="files-page-list-row"
+      onDoubleClick={onOpen}
+      onKeyDown={(e) => {
+        if (e.key === "Enter") onOpen();
+      }}
+      title={entry.path}
+    >
+      <span aria-hidden="true" />
+      <span
+        role="gridcell"
+        style={{
+          display: "flex",
+          alignItems: "center",
+          gap: "0.5rem",
+          minWidth: 0,
+        }}
+      >
+        {thumbnail ? (
+          <img
+            src={thumbnail}
+            alt=""
+            draggable={false}
+            style={{
+              width: "1.5rem",
+              height: "1.5rem",
+              objectFit: "cover",
+              borderRadius: "0.25rem",
+            }}
+          />
+        ) : ext === "PDF" ? (
+          <PictureAsPdfIcon fontSize="small" />
+        ) : (
+          <InsertDriveFileIcon fontSize="small" />
+        )}
+        <span
+          style={{
+            overflow: "hidden",
+            textOverflow: "ellipsis",
+            whiteSpace: "nowrap",
+          }}
+          title={entry.name}
+        >
+          {entry.name}
+        </span>
+        <FileOriginBadge
+          origin="local"
+          tooltip={t(
+            "filesPage.origin.diskHint",
+            "A file in the mounted folder on your disk",
+          )}
+          compact
+        />
+      </span>
+      <span role="gridcell">{ext || t("filesPage.file", "File")}</span>
+      <span role="gridcell">{formatFileSize(entry.sizeBytes)}</span>
+      <span role="gridcell">
+        {getFileDate({ lastModified: entry.lastModified })}
+      </span>
+      <span role="gridcell">
+        <Menu shadow="md" position="bottom-end" withinPortal>
+          <Menu.Target>
+            <ActionIcon
+              variant="tertiary"
+              size="sm"
+              onClick={(e) => e.stopPropagation()}
+              aria-label={t("filesPage.fileMenu", "File actions")}
+            >
+              <MoreVertIcon fontSize="small" />
+            </ActionIcon>
+          </Menu.Target>
+          <Menu.Dropdown>
+            <Menu.Item
+              leftSection={<OpenInNewIcon fontSize="small" />}
+              onClick={onOpen}
+            >
+              {t("filesPage.addToWorkspace", "Add to workspace")}
+            </Menu.Item>
+          </Menu.Dropdown>
+        </Menu>
+      </span>
+    </div>
+  );
+}
diff --git a/frontend/editor/src/core/components/filesPage/FileManagerView.tsx b/frontend/editor/src/core/components/filesPage/FileManagerView.tsx
index 4665784e79..0952732599 100644
--- a/frontend/editor/src/core/components/filesPage/FileManagerView.tsx
+++ b/frontend/editor/src/core/components/filesPage/FileManagerView.tsx
@@ -10,8 +10,10 @@ import { useLocation, useNavigate } from "react-router-dom";
 import {
   Drawer,
   Group,
+  Menu,
   MultiSelect,
   Select,
+  Text,
   TextInput,
   Tooltip,
 } from "@mantine/core";
@@ -32,6 +34,9 @@ import OpenInNewIcon from "@mui/icons-material/OpenInNew";
 import InfoOutlinedIcon from "@mui/icons-material/InfoOutlined";
 import CloudUploadIcon from "@mui/icons-material/CloudUpload";
 import KeyboardArrowRightIcon from "@mui/icons-material/KeyboardArrowRight";
+import ArrowDropDownIcon from "@mui/icons-material/ArrowDropDown";
+import DriveFolderUploadIcon from "@mui/icons-material/DriveFolderUpload";
+import CloudIcon from "@mui/icons-material/Cloud";
 import RefreshIcon from "@mui/icons-material/Refresh";
 import { FilesToolbarBulkMenu } from "@app/components/filesPage/FilesToolbarBulkMenu";
 import { FilesToolbarCount } from "@app/components/filesPage/FilesToolbarCount";
@@ -45,6 +50,7 @@ import { useFolders } from "@app/contexts/FolderContext";
 import { useFileActions } from "@app/contexts/file/fileHooks";
 import { useAllFiles } from "@app/contexts/FileContext";
 import { useFileHandler } from "@app/hooks/useFileHandler";
+import { useServerFolderBlock } from "@app/hooks/useServerFolderBlock";
 import {
   useNavigationActions,
   useNavigationGuard,
@@ -60,7 +66,7 @@ import { getFileOrigin } from "@app/components/filesPage/fileOrigin";
 
 import { FileId } from "@app/types/file";
 import { StirlingFileStub } from "@app/types/fileContext";
-import { FolderId, ROOT_FOLDER_ID } from "@app/types/folder";
+import { FolderId, ROOT_FOLDER_ID, folderKind } from "@app/types/folder";
 
 import { FileGrid, FilesPageEntry } from "@app/components/filesPage/FileGrid";
 import SuperSearch from "@app/components/shared/superSearch/SuperSearch";
@@ -69,6 +75,20 @@ import { FileDetailsPanel } from "@app/components/filesPage/FileDetailsPanel";
 import BulkUploadToServerModal from "@app/components/shared/BulkUploadToServerModal";
 import MobileUploadModal from "@app/components/shared/MobileUploadModal";
 import { useAppConfig } from "@app/contexts/AppConfigContext";
+import { canPickDirectory } from "@app/services/directoryPicker";
+import {
+  diskFolderId,
+  isDiskFolderId,
+  pickFolderColor,
+} from "@app/types/folder";
+import { useNewFolderFlow } from "@app/hooks/useNewFolderFlow";
+import { writeIntoMount } from "@app/services/mountWrites";
+import {
+  canListDirectory,
+  listDirectory,
+  readDiskFile,
+  type DiskFileEntry,
+} from "@app/services/localFolderContents";
 import { useIsMobile } from "@app/hooks/useIsMobile";
 import { MoveToFolderDialog } from "@app/components/filesPage/MoveToFolderDialog";
 import { FolderNameDialog } from "@app/components/filesPage/FolderNameDialog";
@@ -201,6 +221,7 @@ export default function FileManagerView() {
   );
 
   const setCurrentFolderId = folders.setCurrentFolderId;
+  const resolveDiskFolder = folders.resolveDiskFolder;
   const foldersById = folders.foldersById;
   const currentFolderId = folders.currentFolderId;
 
@@ -212,10 +233,13 @@ export default function FileManagerView() {
       setCurrentFolderId(ROOT_FOLDER_ID);
     } else if (foldersById.has(param as FolderId)) {
       setCurrentFolderId(param as FolderId);
+    } else if (isDiskFolderId(param) && resolveDiskFolder(param as FolderId)) {
+      // A mount subdirectory deep link: rebuilt from the id, mapped next render.
+      setCurrentFolderId(param as FolderId);
     } else {
       setCurrentFolderId(ROOT_FOLDER_ID);
     }
-  }, [location.pathname, foldersById, setCurrentFolderId]);
+  }, [location.pathname, foldersById, setCurrentFolderId, resolveDiskFolder]);
 
   // Bounce off any share-related tab when sharing isn't enabled.
   useEffect(() => {
@@ -275,6 +299,8 @@ export default function FileManagerView() {
     }
     const lc = search.toLowerCase();
     const matched = folders.folders.filter((f) => {
+      // The Cloud tab is the server's view: browser folders and mounts aren't on it.
+      if (currentTab === "cloud" && folderKind(f) !== "server") return false;
       if (search) {
         // Subtree-wide name match; exclude the current folder itself.
         return (
@@ -296,10 +322,11 @@ export default function FileManagerView() {
     // Tab overrides folder navigation for Local/Recent/Shared.
     switch (currentTab) {
       case "local":
-        // Local = files with no server copy. folderId is forced null on this
-        // path (cf. file.ts comment), but we check remoteStorageId too so
-        // stale local-folder rows from a pre-pivot DB don't slip through.
-        return allFiles.filter((f) => f.remoteStorageId == null);
+        // Both halves: a local file inside a browser folder belongs to that folder,
+        // not here as well.
+        return allFiles.filter(
+          (f) => f.remoteStorageId == null && (f.folderId ?? null) === null,
+        );
       case "cloud":
         // Cloud bucket; search widens to subtree, else direct-folder match.
         return allFiles.filter((f) => {
@@ -426,12 +453,141 @@ export default function FileManagerView() {
     [foldersById],
   );
 
+  const currentFolder = currentFolderId
+    ? folders.foldersById.get(currentFolderId)
+    : undefined;
+  const currentLocalDirectory =
+    currentFolder && folderKind(currentFolder) === "local"
+      ? currentFolder.directory
+      : undefined;
+  const { setError: setFolderError, registerDiskSubfolders } = folders;
+  const [diskEntries, setDiskEntries] = useState<DiskFileEntry[]>([]);
+  const [diskLoading, setDiskLoading] = useState(false);
+  // Bumped when this view writes into the directory, so the listing re-reads.
+  const [diskRefreshTick, setDiskRefreshTick] = useState(0);
+  useEffect(() => {
+    if (!currentLocalDirectory || !canListDirectory) {
+      setDiskEntries([]);
+      // Leaving a mount mid-listing cancels the in-flight reset, so clear the
+      // flag here or the skeleton covers every folder for the rest of the session.
+      setDiskLoading(false);
+      return;
+    }
+    let cancelled = false;
+    setDiskLoading(true);
+    listDirectory(currentLocalDirectory)
+      .then((listed) => {
+        if (cancelled) return;
+        setDiskEntries(listed?.files ?? []);
+        if (currentFolderId !== null) {
+          registerDiskSubfolders(
+            currentFolderId,
+            (listed?.directories ?? []).map((dir) => ({
+              id: diskFolderId(dir.path),
+              kind: "local" as const,
+              name: dir.name,
+              parentFolderId: currentFolderId,
+              directory: dir.path,
+              color: pickFolderColor(dir.name),
+              createdAt: 0,
+              updatedAt: 0,
+            })),
+          );
+        }
+      })
+      .catch((err) => {
+        console.warn("[FileManagerView] disk listing failed", err);
+        if (!cancelled) {
+          setDiskEntries([]);
+          setFolderError(
+            err instanceof Error
+              ? t("filesPage.error.readFolderFailedDetail", {
+                  message: err.message,
+                  defaultValue: `Could not read the folder: ${err.message}`,
+                })
+              : t(
+                  "filesPage.error.readFolderFailed",
+                  "Could not read the folder.",
+                ),
+          );
+        }
+      })
+      .finally(() => {
+        if (!cancelled) setDiskLoading(false);
+      });
+    return () => {
+      cancelled = true;
+    };
+    // The stable setter, not the context: its identity changes on every folder
+    // mutation, including the setError above, so a failing listing would re-trigger.
+  }, [
+    currentLocalDirectory,
+    currentFolderId,
+    registerDiskSubfolders,
+    setFolderError,
+    diskRefreshTick,
+    t,
+  ]);
+
+  const openDiskFile = useCallback(
+    async (entry: DiskFileEntry) => {
+      try {
+        const file = await readDiskFile(entry);
+        if (!file) return;
+        clearFilesPageReturnRoute();
+        await addFiles([file], { selectFiles: true });
+        navActions.setWorkbench("viewer");
+        navigate("/");
+      } catch (err) {
+        folders.setError(
+          err instanceof Error
+            ? t("filesPage.error.openDiskFileFailedDetail", {
+                name: entry.name,
+                message: err.message,
+                defaultValue: `Could not open ${entry.name}: ${err.message}`,
+              })
+            : t("filesPage.error.openDiskFileFailed", {
+                name: entry.name,
+                defaultValue: `Could not open ${entry.name}.`,
+              }),
+        );
+      }
+    },
+    [addFiles, navActions, navigate, folders, t],
+  );
+
   const entries = useMemo<FilesPageEntry[]>(() => {
     // When searching, items may come from anywhere in the subtree, so we
     // expose a "parentPath" subtitle whenever the item's parent differs from
     // currentFolderId. When no search is active, every item is in the
     // current folder by definition and the subtitle is suppressed.
     const inSearch = search.length > 0;
+    // Inside a mount the listing is the directory; storage rows don't apply.
+    if (currentLocalDirectory) {
+      const needle = search.toLowerCase();
+      const compare: Record<
+        string,
+        (a: DiskFileEntry, b: DiskFileEntry) => number
+      > = {
+        "name-asc": (a, b) => a.name.localeCompare(b.name),
+        "name-desc": (a, b) => b.name.localeCompare(a.name),
+        "size-asc": (a, b) => a.sizeBytes - b.sizeBytes,
+        "size-desc": (a, b) => b.sizeBytes - a.sizeBytes,
+        "modified-asc": (a, b) => a.lastModified - b.lastModified,
+        "modified-desc": (a, b) => b.lastModified - a.lastModified,
+      };
+      return [
+        ...visibleFolders.map<FilesPageEntry>((folder) => ({
+          kind: "folder",
+          folder,
+          folderFileCount: 0,
+        })),
+        ...diskEntries
+          .filter((disk) => !needle || disk.name.toLowerCase().includes(needle))
+          .sort(compare[filesPage.sortMode] ?? compare["modified-desc"]!)
+          .map<FilesPageEntry>((disk) => ({ kind: "diskFile", disk })),
+      ];
+    }
     return [
       ...visibleFolders.map<FilesPageEntry>((folder) => ({
         kind: "folder",
@@ -457,6 +613,9 @@ export default function FileManagerView() {
     filesPage.fileCountsByFolder,
     search,
     currentFolderId,
+    currentLocalDirectory,
+    diskEntries,
+    filesPage.sortMode,
     pathForFolderId,
   ]);
 
@@ -531,28 +690,46 @@ export default function FileManagerView() {
       // state - otherwise the file pops up the next time the user navigates
       // to /viewer or /tools, which reads as "auto-opened" and surprised
       // people every time. The grid will repaint via refresh() below.
+      // Files uploaded while standing in a folder belong in that folder.
+      const target =
+        currentTab === "all" || currentTab === "cloud" ? currentFolderId : null;
+      const targetFolder = target ? folders.foldersById.get(target) : undefined;
+      if (targetFolder && folderKind(targetFolder) === "local") {
+        const { failedCount } = await writeIntoMount(
+          targetFolder.directory,
+          files.map((file) => ({ name: file.name, bytes: async () => file })),
+        );
+        if (failedCount > 0) {
+          folders.setError(
+            t("filesPage.moveIntoMountFailed", {
+              count: failedCount,
+              defaultValue:
+                "{{count}} file(s) could not be written into the folder.",
+            }),
+          );
+        }
+        setDiskRefreshTick((tick) => tick + 1);
+        return;
+      }
+      // Everywhere else membership is set with the stub rather than by a move that
+      // could fail after. For a server folder it stays local until the save lands.
       const added = await addFiles(files, {
         selectFiles: false,
         skipWorkspaceDispatch: true,
+        ...(target ? { folderId: target as string } : {}),
       });
       const fileIds = added.map((f) => f.fileId);
-      const target = currentFolderId;
-      // Uploaded files land in Local (folderId stays null).
       if (
         target !== null &&
         fileIds.length > 0 &&
-        (currentTab === "all" || currentTab === "cloud")
+        targetFolder &&
+        folderKind(targetFolder) === "server"
       ) {
-        folders.setError(
-          t(
-            "filesPage.uploadedToLocal",
-            "Uploaded files start in Local. Use 'Save to cloud' to put them in a folder.",
-          ),
-        );
+        await moveFilesTo(fileIds, target);
       }
       await refresh();
     },
-    [addFiles, currentFolderId, currentTab, folders, refresh, t],
+    [addFiles, currentFolderId, currentTab, folders, moveFilesTo, refresh, t],
   );
 
   const onFileInputChange = useCallback(
@@ -913,20 +1090,18 @@ export default function FileManagerView() {
     [selectedFiles, fileMap],
   );
 
+  // Per-destination availability for the New-folder menu; the reason renders as the
+  // disabled item's caption.
+  const serverFolderDisabledReason = useServerFolderBlock() ?? undefined;
+
+  const { addLocalFolder, createFolderHere, createFolderHereBlockedReason } =
+    useNewFolderFlow();
+
   // null = New folder actionable; string = disabled tooltip reason.
   const newFolderDisabledReason: string | null = useMemo(() => {
-    // Guests can't use cloud folders at all - say so before any tab/storage
-    // hint, since switching tabs wouldn't help them.
-    if (signInRequiredReason) {
-      return signInRequiredReason;
-    }
-    if (currentTab === "local") {
-      return t(
-        "filesPage.localFoldersUnavailable",
-        "Folders are cloud-only - save a file to the cloud to organise it.",
-      );
-    }
+    // Only All/Cloud render folders, so creating one elsewhere would look inert.
     if (
+      currentTab === "local" ||
       currentTab === "recent" ||
       currentTab === "shared" ||
       currentTab === "sharedByMe"
@@ -936,14 +1111,32 @@ export default function FileManagerView() {
         "Switch to All or Cloud to create folders.",
       );
     }
-    if (!folders.serverReachable) {
-      return t(
-        "filesPage.newFolderStorageDisabled",
-        "Server folder storage isn't enabled. Ask your admin to turn it on.",
-      );
+    // A subfolder inherits kind server, so the blockers gate the button rather
+    // than letting the dialog open and fail at submit.
+    if (
+      currentFolder &&
+      folderKind(currentFolder) === "server" &&
+      serverFolderDisabledReason
+    ) {
+      return serverFolderDisabledReason;
+    }
+    // The web root creates on the server or not at all.
+    if (
+      folders.currentFolderId === null &&
+      !canPickDirectory &&
+      serverFolderDisabledReason
+    ) {
+      return serverFolderDisabledReason;
     }
     return null;
-  }, [signInRequiredReason, currentTab, folders.serverReachable, t]);
+  }, [
+    currentTab,
+    currentLocalDirectory,
+    currentFolder,
+    folders.currentFolderId,
+    serverFolderDisabledReason,
+    t,
+  ]);
 
   return (
     <div className="files-page" ref={dropZoneRef}>
@@ -977,6 +1170,10 @@ export default function FileManagerView() {
           const handleRefresh = async () => {
             setRefreshing(true);
             try {
+              // In a mount, refresh means the directory: the listing only re-reads when told.
+              if (currentLocalDirectory) {
+                setDiskRefreshTick((tick) => tick + 1);
+              }
               // pullFromServer bumps the folder revision, which the
               // FolderProvider's effect reacts to by re-running refresh() -
               // no need to await folders.refresh() manually.
@@ -1045,15 +1242,69 @@ export default function FileManagerView() {
                       </Button>
                     </span>
                   </Tooltip>
-                ) : (
+                ) : folders.currentFolderId !== null || !canPickDirectory ? (
+                  // Nothing to choose: a subfolder inherits its parent's kind, and on
+                  // the web everything lives on the server. Straight to the dialog.
                   <Button
                     variant="secondary"
                     size="sm"
                     leftSection={<CreateNewFolderIcon fontSize="small" />}
-                    onClick={() => openNewFolderDialog()}
+                    onClick={() =>
+                      folders.currentFolderId !== null
+                        ? openNewFolderDialog()
+                        : openNewFolderDialog(null, "server")
+                    }
                   >
                     {t("filesPage.newFolder", "New folder")}
                   </Button>
+                ) : (
+                  // Desktop root: two peer destinations, so the button is the menu.
+                  <Menu shadow="md" position="bottom-end" withinPortal>
+                    <Menu.Target>
+                      <Button
+                        variant="secondary"
+                        size="sm"
+                        leftSection={<CreateNewFolderIcon fontSize="small" />}
+                        rightSection={<ArrowDropDownIcon fontSize="small" />}
+                      >
+                        {t("filesPage.newFolder", "New folder")}
+                      </Button>
+                    </Menu.Target>
+                    <Menu.Dropdown>
+                      <Menu.Item
+                        leftSection={
+                          <DriveFolderUploadIcon
+                            fontSize="small"
+                            style={{ marginRight: "0.3rem" }}
+                          />
+                        }
+                        onClick={() => void addLocalFolder()}
+                      >
+                        {t(
+                          "filesPage.newFolderMenu.addExisting",
+                          "Add local folder",
+                        )}
+                      </Menu.Item>
+                      <Menu.Item
+                        className="files-page-new-folder-option"
+                        leftSection={<CloudIcon fontSize="small" />}
+                        disabled={Boolean(serverFolderDisabledReason)}
+                        onClick={() => openNewFolderDialog(null, "server")}
+                      >
+                        {t(
+                          "filesPage.newFolderMenu.server",
+                          "New folder on the server",
+                        )}
+                        <Text size="xs" c="dimmed">
+                          {serverFolderDisabledReason ??
+                            t(
+                              "filesPage.newFolderMenu.serverHint",
+                              "Synced to your account, available wherever you sign in.",
+                            )}
+                        </Text>
+                      </Menu.Item>
+                    </Menu.Dropdown>
+                  </Menu>
                 )}
                 <Button
                   size="sm"
@@ -1647,7 +1898,7 @@ export default function FileManagerView() {
           >
             <FileGrid
               entries={entries}
-              loading={loading}
+              loading={loading || diskLoading}
               currentTab={currentTab}
               searchActive={search.trim().length > 0}
               serverReachable={folders.serverReachable}
@@ -1659,6 +1910,7 @@ export default function FileManagerView() {
               onSelectFile={handleSelectFile}
               onSetSelection={setSelectedFileIds}
               onOpenFolder={handleOpenFolder}
+              onOpenDiskFile={(entry) => void openDiskFile(entry)}
               onOpenFile={handleOpenFile}
               onMoveFiles={moveFilesTo}
               onMoveFolder={moveFolderTo}
@@ -1692,8 +1944,12 @@ export default function FileManagerView() {
               // (disabled tooltips, native file picker, dialog) is
               // identical regardless of where the user clicks from.
               onEmptyUpload={() => fileInputRef.current?.click()}
-              onEmptyCreateFolder={() => openNewFolderDialog()}
-              newFolderDisabledReason={newFolderDisabledReason}
+              onEmptyCreateFolder={createFolderHere}
+              // A single-click shortcut, so it also blocks where it has nothing safe
+              // to do, unlike the header button whose menu still offers the choices.
+              newFolderDisabledReason={
+                newFolderDisabledReason ?? createFolderHereBlockedReason
+              }
             />
             {isDraggingExternal && (
               <div className="files-page-drop-overlay" aria-live="polite">
@@ -1704,16 +1960,21 @@ export default function FileManagerView() {
                   {t("filesPage.dropOverlay", "Drop files to upload")}
                 </span>
                 <span className="files-page-drop-overlay-sub">
-                  {/* Behavior contract: per handleNativeUpload above, all
-                      newly-uploaded files start in Local (folderId stays
-                      null) regardless of the current folder view. Saying
-                      "will land in {folder}" was a lie; tell the truth
-                      so the user reaches for Save-to-cloud / Move-to when
-                      they actually want a folder placement. */}
-                  {t(
-                    "filesPage.dropOverlaySub",
-                    "Files start in Local. Use 'Move to' or 'Save to cloud' to organise them into a folder.",
-                  )}
+                  {/* Behavior contract: per handleNativeUpload above, files
+                      dropped inside a folder on the All/Cloud views are
+                      placed into it — a mount takes them onto the disk
+                      itself. Other tabs land drops in Local, so the copy
+                      must match. */}
+                  {(currentTab === "all" || currentTab === "cloud") &&
+                  currentFolderId !== null
+                    ? t(
+                        "filesPage.dropOverlaySubFolder",
+                        "They'll be added to this folder.",
+                      )
+                    : t(
+                        "filesPage.dropOverlaySub",
+                        "Files land in Local. Organise them into folders any time.",
+                      )}
                 </span>
               </div>
             )}
@@ -1774,7 +2035,14 @@ export default function FileManagerView() {
       <MoveToFolderDialog
         opened={moveDialog.open}
         onClose={closeMoveDialog}
-        folders={folders.folders}
+        // Files can go anywhere, but a folder moves only within its own kind and
+        // never into a mount - a directory's subfolders are the filesystem's.
+        folders={folders.folders.filter((candidate) => {
+          if (!moveDialog.folderId) return true;
+          if (folderKind(candidate) === "local") return false;
+          const moving = folders.foldersById.get(moveDialog.folderId);
+          return moving ? folderKind(candidate) === folderKind(moving) : true;
+        })}
         initialFolderId={moveDialog.initial}
         disabledFolderId={moveDialog.folderId}
         onConfirm={async (target) => {
diff --git a/frontend/editor/src/core/components/filesPage/FileOriginBadge.tsx b/frontend/editor/src/core/components/filesPage/FileOriginBadge.tsx
index 3d94610e0b..2ea4507a14 100644
--- a/frontend/editor/src/core/components/filesPage/FileOriginBadge.tsx
+++ b/frontend/editor/src/core/components/filesPage/FileOriginBadge.tsx
@@ -11,6 +11,7 @@ interface FileOriginBadgeProps {
   origin: FileOrigin;
   /** Compact (icon-only) vs full (icon + text). */
   compact?: boolean;
+  tooltip?: string;
 }
 
 const styles = {
@@ -44,6 +45,7 @@ const styles = {
 export function FileOriginBadge({
   origin,
   compact = false,
+  tooltip,
 }: FileOriginBadgeProps) {
   const { t } = useTranslation();
 
@@ -88,7 +90,7 @@ export function FileOriginBadge({
   );
 
   return (
-    <Tooltip label={config.tooltip} withinPortal>
+    <Tooltip label={tooltip ?? config.tooltip} withinPortal>
       {badge}
     </Tooltip>
   );
diff --git a/frontend/editor/src/core/components/filesPage/FilesPage.css b/frontend/editor/src/core/components/filesPage/FilesPage.css
index 6d4070edb6..b6e54bb15d 100644
--- a/frontend/editor/src/core/components/filesPage/FilesPage.css
+++ b/frontend/editor/src/core/components/filesPage/FilesPage.css
@@ -582,8 +582,13 @@
   position: absolute;
   bottom: 0.4rem;
   left: 0.4rem;
+  /* The overlay itself stays transparent to the card's clicks and drags, but
+     the badge inside must catch hover or its tooltip can never open. */
   pointer-events: none;
 }
+.files-page-card-origin > * {
+  pointer-events: auto;
+}
 
 /* "Open" badge - file is currently loaded in the active workspace.
    Solid pill with white text so it reads against any thumbnail
@@ -1494,3 +1499,14 @@
     transform: none;
   }
 }
+
+/* A disabled destination still has to be read - its caption carries the reason - and
+   Mantine's disabled colour drops below comfortable contrast in dark mode. Selector
+   stands on the item's own class because the dropdown renders in a portal. */
+.files-page-new-folder-option[data-disabled] {
+  color: var(--c-text-muted) !important;
+  opacity: 1;
+}
+.files-page-new-folder-option[data-disabled] .mantine-Text-root {
+  color: var(--c-text-subtle) !important;
+}
diff --git a/frontend/editor/src/core/components/filesPage/FolderTreeSidebar.tsx b/frontend/editor/src/core/components/filesPage/FolderTreeSidebar.tsx
index 597b0782e8..918dbe9880 100644
--- a/frontend/editor/src/core/components/filesPage/FolderTreeSidebar.tsx
+++ b/frontend/editor/src/core/components/filesPage/FolderTreeSidebar.tsx
@@ -16,6 +16,7 @@ import { useFolders } from "@app/contexts/FolderContext";
 import { FileId } from "@app/types/file";
 import {
   FolderId,
+  folderKind,
   FolderRecord,
   FolderTreeNode,
   ROOT_FOLDER_ID,
@@ -260,6 +261,12 @@ function TreeNodeRow({
 }: TreeNodeRowProps) {
   const { t } = useTranslation();
   const { serverReachable, setError } = useFolders();
+  // Server folders need the server; a virtual folder is browser-owned and a
+  // local one is managed by its directory, so its edit items disable with a
+  // kind-specific hint instead of a wrong "offline" excuse.
+  const kind = folderKind(node.folder);
+  const editsDisabled =
+    kind === "local" || (kind === "server" && !serverReachable);
   const { currentTab } = useFilesPage();
   const offlineHint = t(
     "filesPage.offlineNoFolderEdits",
@@ -433,8 +440,17 @@ function TreeNodeRow({
                 e.stopPropagation();
                 onRenameFolder(node.folder);
               }}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
+              disabled={editsDisabled}
+              title={
+                kind === "local"
+                  ? t(
+                      "filesPage.localFolderManagedByDisk",
+                      "This folder is managed by its directory on disk.",
+                    )
+                  : editsDisabled
+                    ? offlineHint
+                    : undefined
+              }
             >
               {t("filesPage.treeMenu.rename", "Rename")}
             </Menu.Item>
@@ -444,24 +460,48 @@ function TreeNodeRow({
                 e.stopPropagation();
                 onRequestNewFolder(node.folder.id);
               }}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
+              disabled={editsDisabled}
+              title={
+                kind === "local"
+                  ? t(
+                      "filesPage.localFolderManagedByDisk",
+                      "This folder is managed by its directory on disk.",
+                    )
+                  : editsDisabled
+                    ? offlineHint
+                    : undefined
+              }
             >
               {t("filesPage.treeMenu.newSubfolder", "New subfolder")}
             </Menu.Item>
             <Menu.Divider />
-            <Menu.Item
-              color="red"
-              leftSection={<DeleteOutlineIcon fontSize="small" />}
-              onClick={(e) => {
-                e.stopPropagation();
-                onDeleteFolder(node.folder);
-              }}
-              disabled={!serverReachable}
-              title={!serverReachable ? offlineHint : undefined}
-            >
-              {t("filesPage.treeMenu.delete", "Delete folder")}
-            </Menu.Item>
+            {/* Every kind can be removed except a mount's subdirectory, which
+                is the disk's — the app never deletes directories. A mount
+                root's removal deletes the record and nothing on disk, so only
+                the server kind's reachability gate applies. */}
+            {(kind !== "local" || node.folder.parentFolderId === null) && (
+              <Menu.Item
+                color="red"
+                leftSection={<DeleteOutlineIcon fontSize="small" />}
+                onClick={(e) => {
+                  e.stopPropagation();
+                  onDeleteFolder(node.folder);
+                }}
+                disabled={kind === "server" && !serverReachable}
+                title={
+                  kind === "server" && !serverReachable
+                    ? offlineHint
+                    : undefined
+                }
+              >
+                {kind === "local"
+                  ? t(
+                      "filesPage.removeLocalFolder",
+                      "Remove (files stay on disk)",
+                    )
+                  : t("filesPage.treeMenu.delete", "Delete folder")}
+              </Menu.Item>
+            )}
           </Menu.Dropdown>
         </Menu>
       </div>
diff --git a/frontend/editor/src/core/contexts/FileContext.tsx b/frontend/editor/src/core/contexts/FileContext.tsx
index d9bac4332c..2b9437b3f4 100644
--- a/frontend/editor/src/core/contexts/FileContext.tsx
+++ b/frontend/editor/src/core/contexts/FileContext.tsx
@@ -267,6 +267,8 @@ function FileContextInner({
         skipWorkspaceDispatch?: boolean;
         skipUploadTracking?: boolean;
         derivedFromTool?: boolean;
+        /** Folder every added file is born into (see AddFileOptions). */
+        folderId?: string;
       },
     ): Promise<StirlingFile[]> => {
       const stirlingFiles = await addFiles(
diff --git a/frontend/editor/src/core/contexts/FilesPageContext.tsx b/frontend/editor/src/core/contexts/FilesPageContext.tsx
index b8cf4ccf29..3a93653811 100644
--- a/frontend/editor/src/core/contexts/FilesPageContext.tsx
+++ b/frontend/editor/src/core/contexts/FilesPageContext.tsx
@@ -13,8 +13,15 @@ import { useTranslation } from "react-i18next";
 
 import { FileId } from "@app/types/file";
 import { StirlingFileStub } from "@app/types/fileContext";
-import { FolderId, FolderRecord, ROOT_FOLDER_ID } from "@app/types/folder";
+import {
+  FolderId,
+  FolderKind,
+  FolderRecord,
+  ROOT_FOLDER_ID,
+  folderKind,
+} from "@app/types/folder";
 import { fileStorage } from "@app/services/fileStorage";
+import { writeIntoMount } from "@app/services/mountWrites";
 import { folderSyncService } from "@app/services/folderSyncService";
 import { uploadHistoryChain } from "@app/services/serverStorageUpload";
 import { reconcileServerFiles } from "@app/services/fileSyncService";
@@ -59,6 +66,8 @@ export type FilesPageTab =
 export interface FolderNameDialogState {
   mode: "new" | "rename" | null;
   parentId?: FolderId | null;
+  /** For a root-level create: the kind the caller chose (menu, not dialog). */
+  kind?: FolderKind;
   folder?: FolderRecord;
 }
 
@@ -102,7 +111,7 @@ interface FilesPageContextValue {
 
   // Dialog state
   folderNameDialog: FolderNameDialogState;
-  openNewFolderDialog: (parentId?: FolderId | null) => void;
+  openNewFolderDialog: (parentId?: FolderId | null, kind?: FolderKind) => void;
   openRenameFolderDialog: (folder: FolderRecord) => void;
   closeFolderNameDialog: () => void;
   submitFolderName: (name: string) => Promise<void>;
@@ -243,8 +252,11 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
     useState<FolderNameDialogState>({ mode: null });
 
   const openNewFolderDialog = useCallback(
-    (parentId: FolderId | null = folders.currentFolderId) => {
-      setFolderNameDialog({ mode: "new", parentId });
+    (
+      parentId: FolderId | null = folders.currentFolderId,
+      kind?: FolderKind,
+    ) => {
+      setFolderNameDialog({ mode: "new", parentId, kind });
     },
     [folders.currentFolderId],
   );
@@ -260,9 +272,11 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
   const submitFolderName = useCallback(
     async (name: string) => {
       if (folderNameDialog.mode === "new") {
+        // Chosen before the dialog opened, and only used at the root.
         await folders.createFolder(
           name,
           folderNameDialog.parentId ?? folders.currentFolderId,
+          folderNameDialog.kind,
         );
       } else if (
         folderNameDialog.mode === "rename" &&
@@ -297,13 +311,89 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
   const moveFilesTo = useCallback(
     async (fileIds: FileId[], folderId: FolderId | null) => {
       if (fileIds.length === 0) return;
-      const stubs = fileIds
-        .map((id) => fileMap.get(id))
-        .filter((s): s is StirlingFileStub => Boolean(s));
+      // fileMap is a render-time snapshot, so a file created moments ago is not in
+      // it yet. Storage is the truth, and falling back keeps it in the move.
+      const fetched = await Promise.all(
+        fileIds.map(
+          (id) => fileMap.get(id) ?? fileStorage.getStirlingFileStub(id),
+        ),
+      );
+      const stubs = fetched.filter((s): s is StirlingFileStub => Boolean(s));
       const localOnly = stubs.filter((s) => s.remoteStorageId == null);
       // Cloud list is mutated below with newly-promoted local files.
       const cloudFiles = stubs.filter((s) => s.remoteStorageId != null);
 
+      const targetFolder =
+        folderId === null ? null : folders.foldersById.get(folderId);
+      const targetKind = targetFolder ? folderKind(targetFolder) : null;
+
+      if (targetKind === "local") {
+        // In a mount means on the disk: write each file into the directory, then retire
+        // the app-side copy once the bytes verifiably landed.
+        const { written, failedCount } = await writeIntoMount(
+          targetFolder?.directory,
+          localOnly.map((stub) => ({
+            name: stub.name,
+            bytes: () => fileStorage.getStirlingFile(stub.id),
+          })),
+        );
+        const movedIds = localOnly
+          .filter((_, i) => written[i])
+          .map((stub) => stub.id);
+        if (movedIds.length > 0) {
+          // Superseded versions go too, or their bytes sit in storage unseen.
+          const orphans = await fileStorage.orphanedAncestorIds(movedIds);
+          await fileActions.removeFiles([...movedIds, ...orphans], true);
+        }
+        // One error slot, two possible failures: report both.
+        const notices: string[] = [];
+        if (failedCount > 0) {
+          notices.push(
+            t("filesPage.moveIntoMountFailed", {
+              count: failedCount,
+              defaultValue:
+                "{{count}} file(s) could not be written into the folder.",
+            }),
+          );
+        }
+        if (cloudFiles.length > 0) {
+          notices.push(
+            t("filesPage.moveIntoMountCloudSkipped", {
+              count: cloudFiles.length,
+              defaultValue:
+                "{{count}} server file(s) stayed in your files. They live on the server, not on this disk.",
+            }),
+          );
+        }
+        if (notices.length > 0) {
+          folders.setError(notices.join(" "));
+        }
+        await refresh();
+        return;
+      }
+
+      if (targetKind === "virtual") {
+        // A browser-owned folder cannot hold server files: the next sync would snap
+        // them back, so they are left where they are and reported.
+        if (cloudFiles.length > 0) {
+          folders.setError(
+            t(
+              "filesPage.moveIntoVirtualCloudSkipped",
+              "{{count}} server file(s) were left in place. Server files can't live in browser-only folders.",
+              { count: cloudFiles.length },
+            ),
+          );
+        }
+        if (localOnly.length > 0) {
+          await indexedDB.moveFilesToFolder(
+            localOnly.map((s) => s.id),
+            folderId,
+          );
+        }
+        await refresh();
+        return;
+      }
+
       if (folderId !== null && localOnly.length > 0) {
         // Per-file uploadHistoryChain so each gets its own remoteStorageId.
         try {
@@ -379,7 +469,17 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
         }
       }
 
-      // Local files moving to ROOT need no cloud write.
+      // Local files moving to the root DO need a write when they are leaving a folder —
+      // their membership is a browser-side folderId that nothing above has touched (the
+      // upload branch only runs for a non-null target).
+      if (folderId === null && localOnly.length > 0) {
+        const leaving = localOnly
+          .filter((s) => (s.folderId ?? null) !== null)
+          .map((s) => s.id);
+        if (leaving.length > 0) {
+          await indexedDB.moveFilesToFolder(leaving, null);
+        }
+      }
       await refresh();
     },
     [indexedDB, refresh, fileMap, folders, t, fileActions],
@@ -397,6 +497,22 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
         );
         return;
       }
+      // A subtree is one kind throughout (each kind has its own system of
+      // record), so a cross-kind drop is refused here as a message rather
+      // than surfacing as a thrown error from the context.
+      if (newParentId !== null) {
+        const source = folders.foldersById.get(folderId);
+        const target = folders.foldersById.get(newParentId);
+        if (source && target && folderKind(source) !== folderKind(target)) {
+          folders.setError(
+            t(
+              "filesPage.moveAcrossKindsBlocked",
+              "These folders live in different places, so one can't go inside the other.",
+            ),
+          );
+          return;
+        }
+      }
       await folders.moveFolder(folderId, newParentId);
     },
     [folders, t],
@@ -554,10 +670,29 @@ export function FilesPageProvider({ children }: { children: React.ReactNode }) {
 
   const promptDeleteFolder = useCallback(
     (folder: FolderRecord) => {
+      if (folderKind(folder) === "local") {
+        // Removing a mount destroys nothing — the record goes, the directory and every
+        // file in it stay — so there is nothing to warn about and the delete dialog's
+        // "what about the files?" question would be a scary lie.
+        void folders.deleteFolder(folder.id).catch((err) => {
+          folders.setError(
+            err instanceof Error
+              ? t("filesPage.error.removeFolderFailedDetail", {
+                  message: err.message,
+                  defaultValue: `Could not remove folder: ${err.message}`,
+                })
+              : t(
+                  "filesPage.error.removeFolderFailed",
+                  "Could not remove folder.",
+                ),
+          );
+        });
+        return;
+      }
       const fileCount = filesInSubtree(folder.id).length;
       setDeleteFolderDialog({ folder, fileCount });
     },
-    [filesInSubtree],
+    [filesInSubtree, folders, t],
   );
 
   const deleteFolder = useCallback(
diff --git a/frontend/editor/src/core/contexts/FolderContext.test.tsx b/frontend/editor/src/core/contexts/FolderContext.test.tsx
index 15d3b02efb..fa53a0240c 100644
--- a/frontend/editor/src/core/contexts/FolderContext.test.tsx
+++ b/frontend/editor/src/core/contexts/FolderContext.test.tsx
@@ -93,6 +93,26 @@ vi.mock("@app/services/folderStorage", () => ({
   },
 }));
 
+// The virtual store is exercised by its own suite (virtualFolderStorage.test);
+// here it only needs to exist and be empty so the merged load resolves.
+vi.mock("@app/services/virtualFolderStorage", () => ({
+  virtualFolderStorage: {
+    getAllFolders: vi.fn(() => Promise.resolve([])),
+    createFolder: vi.fn(),
+    updateFolder: vi.fn(),
+    moveFolder: vi.fn(),
+    deleteFolder: vi.fn(() => Promise.resolve([])),
+  },
+}));
+
+vi.mock("@app/services/localFolderStorage", () => ({
+  localFolderStorage: {
+    getAllFolders: vi.fn(() => Promise.resolve([])),
+    mountDirectory: vi.fn(),
+    removeFolder: vi.fn(() => Promise.resolve()),
+  },
+}));
+
 vi.mock("@app/contexts/IndexedDBContext", () => ({
   useIndexedDB: () => ({
     clearFolderForFiles: vi.fn().mockResolvedValue(undefined),
diff --git a/frontend/editor/src/core/contexts/FolderContext.tsx b/frontend/editor/src/core/contexts/FolderContext.tsx
index b792452373..0c52c4b845 100644
--- a/frontend/editor/src/core/contexts/FolderContext.tsx
+++ b/frontend/editor/src/core/contexts/FolderContext.tsx
@@ -26,16 +26,25 @@ import React, {
 } from "react";
 
 import { folderStorage } from "@app/services/folderStorage";
+import { virtualFolderStorage } from "@app/services/virtualFolderStorage";
+import { localFolderStorage } from "@app/services/localFolderStorage";
 import { folderSyncService } from "@app/services/folderSyncService";
 import {
   FolderBreadcrumbEntry,
   FolderId,
+  FolderKind,
   FolderRecord,
   FolderTreeNode,
   ROOT_FOLDER_ID,
   createFolderId,
+  diskFolderId,
+  diskFolderPath,
+  folderKind,
+  isDiskFolderId,
   pickFolderColor,
 } from "@app/types/folder";
+import { directoryKey } from "@app/services/localFolderStorage";
+import { makeDiskDirectory } from "@app/services/localFolderContents";
 import { useIndexedDB } from "@app/contexts/IndexedDBContext";
 import { useAppConfig } from "@app/contexts/AppConfigContext";
 import { useAuth } from "@app/auth/UseSession";
@@ -88,9 +97,11 @@ interface FolderContextValue {
     ok: boolean;
     reason?: "endpoint-missing" | "network" | "server" | "client";
   }>;
+  /** Create a folder. A child takes its parent's kind; only a root create chooses. */
   createFolder: (
     name: string,
     parentFolderId?: FolderId | null,
+    kind?: FolderKind,
   ) => Promise<FolderRecord>;
   renameFolder: (id: FolderId, name: string) => Promise<FolderRecord | null>;
   moveFolder: (
@@ -102,6 +113,14 @@ interface FolderContextValue {
     appearance: { color?: string; icon?: string | null },
   ) => Promise<FolderRecord | null>;
   deleteFolder: (id: FolderId) => Promise<FolderId[]>;
+  /** Idempotent per directory: mounting one already mounted returns its record. */
+  mountLocalFolder: (directory: string, name: string) => Promise<FolderRecord>;
+  registerDiskSubfolders: (parentId: FolderId, records: FolderRecord[]) => void;
+  /**
+   * Rebuild the records behind a disk-subfolder id, for a link arriving before any
+   * listing ran. True when it sits under a known mount and is now registered.
+   */
+  resolveDiskFolder: (id: FolderId) => boolean;
 
   getChildFolderIds: (parentId: FolderId | null) => FolderId[];
   isDescendant: (candidateId: FolderId, ancestorId: FolderId | null) => boolean;
@@ -146,6 +165,25 @@ function buildTree(folders: FolderRecord[]): FolderTreeNode[] {
   return build(ROOT_FOLDER_ID, 0);
 }
 
+/** The record a subdirectory of a mount presents as: kind local, path as id. */
+function diskSubfolderRecord(
+  path: string,
+  name: string,
+  parentFolderId: FolderId,
+): FolderRecord {
+  const now = Date.now();
+  return {
+    id: diskFolderId(path),
+    kind: "local",
+    name,
+    parentFolderId,
+    directory: path,
+    color: pickFolderColor(name),
+    createdAt: now,
+    updatedAt: now,
+  };
+}
+
 /** Convert a server-side error to a banner-ready user message. */
 function formatServerError(err: unknown): string {
   if (err && typeof err === "object" && "response" in err) {
@@ -241,7 +279,26 @@ function shouldStrandedReset(
 }
 
 export function FolderProvider({ children }: FolderProviderProps) {
-  const [folders, setFolders] = useState<FolderRecord[]>([]);
+  const [storedFolders, setFolders] = useState<FolderRecord[]>([]);
+  // Never persisted: a directory is its own record, so a listing rebuilds these.
+  const [diskSubfolders, setDiskSubfolders] = useState<
+    Map<FolderId, FolderRecord[]>
+  >(() => new Map());
+  const folders = useMemo(() => {
+    const known = new Set(storedFolders.map((f) => f.id));
+    const synthesized: FolderRecord[] = [];
+    for (const records of diskSubfolders.values()) {
+      for (const record of records) {
+        if (!known.has(record.id)) {
+          known.add(record.id);
+          synthesized.push(record);
+        }
+      }
+    }
+    return synthesized.length
+      ? [...storedFolders, ...synthesized]
+      : storedFolders;
+  }, [storedFolders, diskSubfolders]);
   const [loading, setLoading] = useState(true);
   const [error, setError] = useState<string | null>(null);
   // Start `false` so folder-mutation buttons are disabled until the first
@@ -269,9 +326,14 @@ export function FolderProvider({ children }: FolderProviderProps) {
   const refresh = useCallback(async () => {
     setLoading(true);
     try {
-      const all = await folderStorage.getAllFolders();
+      // Three systems of record behind one list; kind says which rules a row follows.
+      const [server, virtual, local] = await Promise.all([
+        folderStorage.getAllFolders(),
+        virtualFolderStorage.getAllFolders(),
+        localFolderStorage.getAllFolders(),
+      ]);
       if (!mountedRef.current) return;
-      setFolders(all);
+      setFolders([...server, ...virtual, ...local]);
     } catch (err) {
       console.error("[FolderContext] cache read failed", err);
       if (mountedRef.current) {
@@ -342,7 +404,11 @@ export function FolderProvider({ children }: FolderProviderProps) {
         console.warn("[FolderContext] cache replace failed", cacheErr);
       }
       if (mountedRef.current) {
-        setFolders(remote);
+        // Server-wins is for server rows: the other kinds have no server copy.
+        setFolders((prev) => [
+          ...remote,
+          ...prev.filter((f) => folderKind(f) !== "server"),
+        ]);
         setServerReachable(true);
         setError(null);
       }
@@ -519,11 +585,65 @@ export function FolderProvider({ children }: FolderProviderProps) {
     [bumpFolderRevision, folders, handleStaleFolder],
   );
 
+  /** The kind of an existing folder, or throw — mutations must never guess. */
+  const requireKind = useCallback(
+    (id: FolderId): FolderKind => {
+      const folder = foldersById.get(id);
+      if (!folder) throw new Error(`Unknown folder: ${id}`);
+      return folderKind(folder);
+    },
+    [foldersById],
+  );
+
   const createFolder = useCallback(
     async (
       name: string,
       parentFolderId: FolderId | null = currentFolderId,
+      kind?: FolderKind,
     ): Promise<FolderRecord> => {
+      // A child's kind is its parent's: one subtree, one system of record.
+      const effectiveKind: FolderKind =
+        parentFolderId !== null
+          ? requireKind(parentFolderId)
+          : (kind ?? "server");
+      if (effectiveKind === "local") {
+        // A mount's subfolder is a directory: make it on disk, present it as a
+        // listing would. Mount roots come from the picker, never here.
+        const parent = parentFolderId ? foldersById.get(parentFolderId) : null;
+        if (!parent?.directory) {
+          throw new Error("Cannot create a folder outside a mounted directory");
+        }
+        const path = await makeDiskDirectory(parent.directory, name);
+        if (path === null) {
+          throw new Error("This build cannot create folders on disk");
+        }
+        const record = diskSubfolderRecord(path, name, parent.id);
+        if (mountedRef.current) {
+          setDiskSubfolders((prev) => {
+            const next = new Map(prev);
+            const siblings = (next.get(parent.id) ?? []).filter(
+              (f) => f.id !== record.id,
+            );
+            next.set(parent.id, [...siblings, record]);
+            return next;
+          });
+          setError(null);
+        }
+        bumpFolderRevision();
+        return record;
+      }
+      if (effectiveKind === "virtual") {
+        const record = await virtualFolderStorage.createFolder(
+          name,
+          parentFolderId,
+        );
+        if (mountedRef.current) {
+          setFolders((prev) => [...prev, record]);
+          setError(null);
+        }
+        bumpFolderRevision();
+        return record;
+      }
       const color = pickFolderColor(name);
       // Client-side id makes server idempotency check safe on retry.
       const id = createFolderId();
@@ -549,11 +669,41 @@ export function FolderProvider({ children }: FolderProviderProps) {
       }
       return result;
     },
-    [currentFolderId, runFolderMutation],
+    [
+      currentFolderId,
+      requireKind,
+      storageBackedByServer,
+      bumpFolderRevision,
+      runFolderMutation,
+    ],
+  );
+
+  /** Apply a mutated non-server record to state; the store already has it. */
+  const applyOwnedRecord = useCallback(
+    (record: FolderRecord | null): FolderRecord | null => {
+      if (record !== null && mountedRef.current) {
+        setFolders((prev) =>
+          prev.map((f) => (f.id === record.id ? record : f)),
+        );
+        setError(null);
+      }
+      bumpFolderRevision();
+      return record;
+    },
+    [bumpFolderRevision],
   );
 
   const renameFolder = useCallback(
     async (id: FolderId, name: string) => {
+      const kind = requireKind(id);
+      if (kind === "local") {
+        throw new Error("A local folder takes its name from its directory");
+      }
+      if (kind === "virtual") {
+        return applyOwnedRecord(
+          await virtualFolderStorage.updateFolder(id, { name }),
+        );
+      }
       return runFolderMutation(
         () => folderSyncService.update(id, { name }),
         async (record) => {
@@ -565,11 +715,23 @@ export function FolderProvider({ children }: FolderProviderProps) {
         id,
       );
     },
-    [runFolderMutation],
+    [applyOwnedRecord, requireKind, runFolderMutation],
   );
 
   const moveFolder = useCallback(
     async (id: FolderId, newParentId: FolderId | null) => {
+      const kind = requireKind(id);
+      if (newParentId !== null && requireKind(newParentId) !== kind) {
+        throw new Error("Folders can only move within their own kind");
+      }
+      if (kind === "local") {
+        throw new Error("A local folder sits where its directory sits");
+      }
+      if (kind === "virtual") {
+        return applyOwnedRecord(
+          await virtualFolderStorage.moveFolder(id, newParentId),
+        );
+      }
       return runFolderMutation(
         () =>
           folderSyncService.update(id, {
@@ -585,7 +747,7 @@ export function FolderProvider({ children }: FolderProviderProps) {
         id,
       );
     },
-    [runFolderMutation],
+    [applyOwnedRecord, requireKind, runFolderMutation],
   );
 
   const updateFolderAppearance = useCallback(
@@ -593,6 +755,23 @@ export function FolderProvider({ children }: FolderProviderProps) {
       id: FolderId,
       appearance: { color?: string; icon?: string | null },
     ) => {
+      const kind = requireKind(id);
+      if (kind === "local") {
+        throw new Error("Local folders cannot be recoloured yet");
+      }
+      if (kind === "virtual") {
+        // Only the fields the picker sent: it sends one key per interaction, and the
+        // store's spread persists an explicit undefined, so passing both would erase
+        // the one the user did not touch. icon: null clears the icon, deliberately.
+        const updates: { color?: string; icon?: string } = {};
+        if (appearance.color !== undefined) updates.color = appearance.color;
+        if (appearance.icon !== undefined) {
+          updates.icon = appearance.icon ?? undefined;
+        }
+        return applyOwnedRecord(
+          await virtualFolderStorage.updateFolder(id, updates),
+        );
+      }
       return runFolderMutation(
         () =>
           folderSyncService.update(id, {
@@ -608,11 +787,50 @@ export function FolderProvider({ children }: FolderProviderProps) {
         id,
       );
     },
-    [runFolderMutation],
+    [applyOwnedRecord, requireKind, runFolderMutation],
   );
 
   const deleteFolder = useCallback(
     async (id: FolderId): Promise<FolderId[]> => {
+      const kind = requireKind(id);
+      if (kind === "local") {
+        if (isDiskFolderId(id)) {
+          throw new Error(
+            "Subfolders of a mounted directory are removed on disk",
+          );
+        }
+        // Removes the record and nothing else; the directory is the user's.
+        await localFolderStorage.removeFolder(id);
+        if (mountedRef.current) {
+          setError(null);
+          setFolders((prev) => prev.filter((f) => f.id !== id));
+          if (currentFolderId === id) {
+            setCurrentFolderId(ROOT_FOLDER_ID);
+          }
+        }
+        bumpFolderRevision();
+        return [id];
+      }
+      if (kind === "virtual") {
+        // Same shape as the server path: subtree delete, strand-reset, detach files.
+        const removed = await virtualFolderStorage.deleteFolder(id);
+        const removedSet = new Set(removed);
+        if (mountedRef.current) {
+          setError(null);
+          setFolders((prev) => prev.filter((f) => !removedSet.has(f.id)));
+          if (
+            currentFolderId &&
+            shouldStrandedReset(currentFolderId, removedSet, folders)
+          ) {
+            setCurrentFolderId(ROOT_FOLDER_ID);
+          }
+        }
+        bumpFolderRevision();
+        await clearFolderForFiles(removed).catch((e) =>
+          console.warn("[FolderContext] virtual folder file cleanup", e),
+        );
+        return removed;
+      }
       // Custom path (not runFolderMutation) because we have two best-effort
       // cleanups to coordinate, and need to reset currentFolderId BEFORE the
       // cleanups so the user isn't stranded inside a tombstone if the cache
@@ -680,9 +898,94 @@ export function FolderProvider({ children }: FolderProviderProps) {
       currentFolderId,
       folders,
       handleStaleFolder,
+      requireKind,
     ],
   );
 
+  const mountLocalFolder = useCallback(
+    async (directory: string, name: string): Promise<FolderRecord> => {
+      const record = await localFolderStorage.mountDirectory(directory, name);
+      if (mountedRef.current) {
+        setError(null);
+        // Idempotent mount can hand back a record that's already listed.
+        setFolders((prev) =>
+          prev.some((f) => f.id === record.id) ? prev : [...prev, record],
+        );
+      }
+      bumpFolderRevision();
+      return record;
+    },
+    [bumpFolderRevision],
+  );
+
+  const registerDiskSubfolders = useCallback(
+    (parentId: FolderId, records: FolderRecord[]) => {
+      setDiskSubfolders((prev) => {
+        const before = prev.get(parentId) ?? [];
+        const same =
+          before.length === records.length &&
+          before.every(
+            (f, i) => f.id === records[i]?.id && f.name === records[i]?.name,
+          );
+        if (same) return prev;
+        const next = new Map(prev);
+        next.set(parentId, records);
+        return next;
+      });
+    },
+    [],
+  );
+
+  const resolveDiskFolder = useCallback(
+    (id: FolderId): boolean => {
+      const path = diskFolderPath(id);
+      if (path === null) return false;
+      const pathKey = directoryKey(path);
+      // The deepest mount containing the path: nested mounts give a shorter chain.
+      let mount: FolderRecord | null = null;
+      let mountKeyLength = -1;
+      for (const folder of storedFolders) {
+        if (folderKind(folder) !== "local" || !folder.directory) continue;
+        const key = directoryKey(folder.directory);
+        const prefix = key.endsWith("/") ? key : `${key}/`;
+        if (pathKey.startsWith(prefix) && key.length > mountKeyLength) {
+          mount = folder;
+          mountKeyLength = key.length;
+        }
+      }
+      if (!mount?.directory) return false;
+      // Rebuild every level between the mount and the path, each as a child
+      // of the one above, so breadcrumbs and the tree have the whole chain.
+      const sep = path.includes("\\") ? "\\" : "/";
+      const mountDir = mount.directory.replace(/[\\/]+$/, "");
+      const rest = path
+        .slice(mountDir.length)
+        .split(/[\\/]+/)
+        .filter(Boolean);
+      const additions: Array<[FolderId, FolderRecord]> = [];
+      let parentId: FolderId = mount.id;
+      let current = mountDir;
+      for (const segment of rest) {
+        current = `${current}${sep}${segment}`;
+        const record = diskSubfolderRecord(current, segment, parentId);
+        additions.push([parentId, record]);
+        parentId = record.id;
+      }
+      setDiskSubfolders((prev) => {
+        const next = new Map(prev);
+        for (const [parent, record] of additions) {
+          const siblings = next.get(parent) ?? [];
+          if (!siblings.some((f) => f.id === record.id)) {
+            next.set(parent, [...siblings, record]);
+          }
+        }
+        return next;
+      });
+      return true;
+    },
+    [storedFolders],
+  );
+
   const value = useMemo<FolderContextValue>(
     () => ({
       folders,
@@ -698,6 +1001,9 @@ export function FolderProvider({ children }: FolderProviderProps) {
       refresh,
       pullFromServer,
       createFolder,
+      mountLocalFolder,
+      registerDiskSubfolders,
+      resolveDiskFolder,
       renameFolder,
       moveFolder,
       updateFolderAppearance,
@@ -717,6 +1023,9 @@ export function FolderProvider({ children }: FolderProviderProps) {
       refresh,
       pullFromServer,
       createFolder,
+      mountLocalFolder,
+      registerDiskSubfolders,
+      resolveDiskFolder,
       renameFolder,
       moveFolder,
       updateFolderAppearance,
diff --git a/frontend/editor/src/core/contexts/file/fileActions.ts b/frontend/editor/src/core/contexts/file/fileActions.ts
index 4067a99069..88fb0eac5f 100644
--- a/frontend/editor/src/core/contexts/file/fileActions.ts
+++ b/frontend/editor/src/core/contexts/file/fileActions.ts
@@ -273,6 +273,12 @@ interface AddFileOptions {
   /** When true, marks every added stub as derivedFromTool so the policy
    *  auto-run skips it — used for policy outputs imported via addFiles. */
   derivedFromTool?: boolean;
+  /**
+   * The folder every added file is born into — membership set at creation, atomically
+   * with the stub, instead of a separate move that can fail after the file already
+   * landed somewhere else.
+   */
+  folderId?: string;
 }
 
 /**
@@ -444,6 +450,9 @@ export async function addFiles(
       // Create new filestub with minimal metadata; hydrate thumbnails/processedFile asynchronously
       const fileStub = createNewStirlingFileStub(file, fileId);
       if (options.derivedFromTool) fileStub.derivedFromTool = true;
+      if (options.folderId) {
+        fileStub.folderId = options.folderId as StirlingFileStub["folderId"];
+      }
 
       // Early encryption detection for PDFs — set the flag before dispatch so the
       // viewer gate and modal queue pick it up immediately instead of after hydration
diff --git a/frontend/editor/src/core/hooks/useFileHandler.ts b/frontend/editor/src/core/hooks/useFileHandler.ts
index 6fcbcb2350..a3e7b1d1a8 100644
--- a/frontend/editor/src/core/hooks/useFileHandler.ts
+++ b/frontend/editor/src/core/hooks/useFileHandler.ts
@@ -17,6 +17,8 @@ export const useFileHandler = () => {
         autoUnzip?: boolean;
         /** Skip the upload metric - the file isn't new to the system (e.g. a copy). */
         skipUploadTracking?: boolean;
+        /** Folder every added file is born into (see AddFileOptions). */
+        folderId?: string;
       } = {},
     ): Promise<StirlingFile[]> => {
       // Merge default options with passed options - passed options take precedence
diff --git a/frontend/editor/src/core/hooks/useLazyThumbnail.ts b/frontend/editor/src/core/hooks/useLazyThumbnail.ts
index 955e5188b4..31d8d94bc2 100644
--- a/frontend/editor/src/core/hooks/useLazyThumbnail.ts
+++ b/frontend/editor/src/core/hooks/useLazyThumbnail.ts
@@ -3,6 +3,7 @@ import type { FileId } from "@app/types/file";
 import { useFileManagement } from "@app/contexts/FileContext";
 import { useIndexedDB } from "@app/contexts/IndexedDBContext";
 import { generateThumbnailForFile } from "@app/utils/thumbnailUtils";
+import { readDiskFile } from "@app/services/localFolderContents";
 
 const THUMBNAIL_SIZE_LIMIT = 100 * 1024 * 1024; // 100MB
 
@@ -15,7 +16,7 @@ const LAZY_THUMB_CONCURRENCY = 2;
 let activeLazyThumbs = 0;
 const lazyThumbQueue: Array<() => Promise<void>> = [];
 
-function scheduleLazyThumb(task: () => Promise<void>): void {
+export function scheduleLazyThumb(task: () => Promise<void>): void {
   lazyThumbQueue.push(task);
   drainLazyThumbQueue();
 }
@@ -80,3 +81,92 @@ export function useLazyThumbnail(
 
   return thumb;
 }
+
+// Keyed by path + mtime + size: an unchanged file never renders twice, an edited one does.
+const diskThumbCache = new Map<string, string>();
+// Bounded by bytes, not entries: image thumbnails are data URLs that track the
+// source, so 300 photos would pin gigabytes of strings for the process lifetime.
+const DISK_THUMB_CACHE_MAX_BYTES = 48 * 1024 * 1024;
+let diskThumbCacheBytes = 0;
+
+function cacheDiskThumb(key: string, url: string): void {
+  const prior = diskThumbCache.get(key);
+  if (prior !== undefined) diskThumbCacheBytes -= prior.length;
+  while (
+    diskThumbCacheBytes + url.length > DISK_THUMB_CACHE_MAX_BYTES &&
+    diskThumbCache.size > 0
+  ) {
+    // Insertion order makes this FIFO; an evicted thumbnail re-renders on revisit.
+    const oldest = diskThumbCache.keys().next().value!;
+    diskThumbCacheBytes -= diskThumbCache.get(oldest)!.length;
+    diskThumbCache.delete(oldest);
+  }
+  diskThumbCache.set(key, url);
+  diskThumbCacheBytes += url.length;
+}
+
+// Reading the bytes is the expensive step, so only for types the generator renders.
+const THUMBABLE_EXTENSIONS = new Set([
+  "pdf",
+  "png",
+  "jpg",
+  "jpeg",
+  "gif",
+  "webp",
+  "bmp",
+  "svg",
+]);
+
+function canEverThumbnail(name: string): boolean {
+  const ext = name.includes(".") ? name.split(".").pop()!.toLowerCase() : "";
+  return THUMBABLE_EXTENSIONS.has(ext);
+}
+
+/**
+ * Thumbnail for a disk-listed file, through the same generator and the same concurrency
+ * gate as stored files — a mounted folder's rows fill in progressively alongside
+ * everything else instead of stampeding the disk.
+ */
+export function useDiskThumbnail(entry: {
+  path: string;
+  name: string;
+  sizeBytes: number;
+  lastModified: number;
+}): string | undefined {
+  const key = `${entry.path}|${entry.lastModified}|${entry.sizeBytes}`;
+  const [thumb, setThumb] = useState<string | undefined>(() => {
+    const hit = diskThumbCache.get(key);
+    return hit === "" ? undefined : hit;
+  });
+
+  useEffect(() => {
+    const cached = diskThumbCache.get(key);
+    if (cached !== undefined) {
+      setThumb(cached === "" ? undefined : cached);
+      return;
+    }
+    if (entry.sizeBytes >= THUMBNAIL_SIZE_LIMIT) return;
+    if (!canEverThumbnail(entry.name)) return;
+    let cancelled = false;
+    scheduleLazyThumb(async () => {
+      if (cancelled || diskThumbCache.has(key)) return;
+      try {
+        const file = await readDiskFile(entry);
+        if (!file || cancelled) return;
+        const url = await generateThumbnailForFile(file);
+        // "" is cached too: a failed/oversized render should not retry on
+        // every re-mount of the same row.
+        cacheDiskThumb(key, url);
+        if (!cancelled && url) setThumb(url);
+      } catch {
+        cacheDiskThumb(key, "");
+      }
+    });
+    return () => {
+      cancelled = true;
+    };
+    // The key encodes every field of `entry` this effect reads.
+  }, [key]);
+
+  return thumb;
+}
diff --git a/frontend/editor/src/core/hooks/useNewFolderFlow.ts b/frontend/editor/src/core/hooks/useNewFolderFlow.ts
new file mode 100644
index 0000000000..a5ab6b85e9
--- /dev/null
+++ b/frontend/editor/src/core/hooks/useNewFolderFlow.ts
@@ -0,0 +1,70 @@
+import { useCallback } from "react";
+import { useTranslation } from "react-i18next";
+import { useNavigate } from "react-router-dom";
+import { useFolders } from "@app/contexts/FolderContext";
+import { useFilesPage } from "@app/contexts/FilesPageContext";
+import { canPickDirectory, pickDirectory } from "@app/services/directoryPicker";
+import { useServerFolderBlock } from "@app/hooks/useServerFolderBlock";
+
+/** The folder-creation flows, shared by every surface that offers them so they
+ *  cannot drift apart. */
+export function useNewFolderFlow() {
+  const { t } = useTranslation();
+  const folders = useFolders();
+  const { openNewFolderDialog } = useFilesPage();
+  const navigate = useNavigate();
+  const serverFolderBlock = useServerFolderBlock();
+
+  // No dialog: the picker is the whole interaction and the directory names the folder.
+  const addLocalFolder = useCallback(async () => {
+    try {
+      const picked = await pickDirectory();
+      if (!picked) return;
+      const record = await folders.mountLocalFolder(picked.path, picked.name);
+      // The path owns folder selection: setting state here races the effect that
+      // re-runs with the old pathname and snaps back to root.
+      navigate(`/files/${record.id}`);
+    } catch (err) {
+      folders.setError(
+        err instanceof Error
+          ? t("filesPage.error.addFolderFailedDetail", {
+              message: err.message,
+              defaultValue: `Could not add the folder: ${err.message}`,
+            })
+          : t("filesPage.error.addFolderFailed", "Could not add the folder."),
+      );
+    }
+  }, [folders, navigate, t]);
+
+  // Single-click New folder for surfaces with no menu: the picker where the build
+  // can see the disk, a server folder on the web, and blocked rather than silent
+  // when the server cannot take one. Inside a folder the kind is inherited.
+  const createFolderHere = useCallback(() => {
+    if (folders.currentFolderId !== null) {
+      openNewFolderDialog(folders.currentFolderId);
+      return;
+    }
+    if (canPickDirectory) {
+      void addLocalFolder();
+      return;
+    }
+    // Backstop: surfaces disable themselves, so a click here means stale UI.
+    if (serverFolderBlock === null) {
+      openNewFolderDialog(null, "server");
+    }
+  }, [
+    addLocalFolder,
+    folders.currentFolderId,
+    openNewFolderDialog,
+    serverFolderBlock,
+  ]);
+
+  // Why the single-click surfaces are disabled, or null. Only the web root blocks:
+  // desktop always has the picker, and subfolders inherit their kind.
+  const createFolderHereBlockedReason =
+    folders.currentFolderId === null && !canPickDirectory
+      ? serverFolderBlock
+      : null;
+
+  return { addLocalFolder, createFolderHere, createFolderHereBlockedReason };
+}
diff --git a/frontend/editor/src/core/hooks/useServerFolderBlock.ts b/frontend/editor/src/core/hooks/useServerFolderBlock.ts
new file mode 100644
index 0000000000..51d2c890ee
--- /dev/null
+++ b/frontend/editor/src/core/hooks/useServerFolderBlock.ts
@@ -0,0 +1,27 @@
+import { useTranslation } from "react-i18next";
+import { useAuth } from "@app/auth/UseSession";
+import { useAppConfig } from "@app/contexts/AppConfigContext";
+import { useFolders } from "@app/contexts/FolderContext";
+
+/** Why a server folder can't be created right now, or null when it can. */
+export function useServerFolderBlock(): string | null {
+  const { t } = useTranslation();
+  const { isAnonymous } = useAuth();
+  const { config: appConfig } = useAppConfig();
+  const folders = useFolders();
+  if (isAnonymous) {
+    return t("filesPage.signInRequired", "Sign in to use cloud storage.");
+  }
+  // Two different problems, two different next steps: storage off is an
+  // admin setting; unreachable is a connectivity state that fixes itself.
+  if (appConfig?.storageEnabled !== true) {
+    return t(
+      "filesPage.newFolderStorageDisabled",
+      "Server folder storage isn't enabled.",
+    );
+  }
+  if (!folders.serverReachable) {
+    return t("filesPage.syncError.network", "Could not reach the server.");
+  }
+  return null;
+}
diff --git a/frontend/editor/src/core/pages/HomePage.tsx b/frontend/editor/src/core/pages/HomePage.tsx
index 6434acbc9e..bfd0f8d6d7 100644
--- a/frontend/editor/src/core/pages/HomePage.tsx
+++ b/frontend/editor/src/core/pages/HomePage.tsx
@@ -56,6 +56,9 @@ import {
   useFilesPage,
 } from "@app/contexts/FilesPageContext";
 import { useFolders } from "@app/contexts/FolderContext";
+import { folderKind } from "@app/types/folder";
+import { useServerFolderBlock } from "@app/hooks/useServerFolderBlock";
+import { useNewFolderFlow } from "@app/hooks/useNewFolderFlow";
 import { useFileHandler } from "@app/hooks/useFileHandler";
 import { FolderTreePanel } from "@app/components/filesPage/FolderTreePanel";
 import type { FileSidebarProps } from "@app/components/shared/FileSidebar";
@@ -771,6 +774,8 @@ const MyFilesSidebarOverrides = forwardRef<HTMLDivElement, FileSidebarProps>(
     const filesPage = useFilesPage();
     const folders = useFolders();
     const { addFiles } = useFileHandler();
+    const { createFolderHere, createFolderHereBlockedReason } =
+      useNewFolderFlow();
 
     const handleUpload = useCallback(
       async (files: File[]) => {
@@ -787,12 +792,19 @@ const MyFilesSidebarOverrides = forwardRef<HTMLDivElement, FileSidebarProps>(
       [addFiles, filesPage, folders.currentFolderId],
     );
 
-    const newFolderDisabledReason = !folders.serverReachable
-      ? t(
-          "filesPage.newFolderStorageDisabled",
-          "Server folder storage isn't enabled. Ask your admin to turn it on.",
-        )
+    // Kind-aware: only a server folder's subfolder needs the server, and a mounted
+    // directory takes no subfolders from here at all.
+    const railCurrentFolder = folders.currentFolderId
+      ? folders.foldersById.get(folders.currentFolderId)
+      : undefined;
+    const railCurrentKind = railCurrentFolder
+      ? folderKind(railCurrentFolder)
       : null;
+    const serverFolderBlock = useServerFolderBlock();
+    const newFolderDisabledReason =
+      railCurrentKind === "server"
+        ? serverFolderBlock
+        : createFolderHereBlockedReason;
 
     return (
       <FileSidebar
@@ -803,7 +815,7 @@ const MyFilesSidebarOverrides = forwardRef<HTMLDivElement, FileSidebarProps>(
         extraAction={{
           icon: <CreateNewFolderIcon />,
           label: t("filesPage.newFolder", "New folder"),
-          onClick: () => filesPage.openNewFolderDialog(),
+          onClick: createFolderHere,
           disabled: newFolderDisabledReason !== null,
           disabledTooltip: newFolderDisabledReason ?? undefined,
           testId: "files-rail-new-folder",
diff --git a/frontend/editor/src/core/services/directoryPicker.ts b/frontend/editor/src/core/services/directoryPicker.ts
new file mode 100644
index 0000000000..c529eccb1f
--- /dev/null
+++ b/frontend/editor/src/core/services/directoryPicker.ts
@@ -0,0 +1,15 @@
+/** Picking a directory on the machine, as a real filesystem path. */
+
+export interface PickedDirectory {
+  /** Absolute path, as the platform writes it. */
+  path: string;
+  /** The directory's own name — the mounted folder's display name. */
+  name: string;
+}
+
+export const canPickDirectory = false;
+
+/** Ask the user for a directory; null when cancelled (or unsupported). */
+export async function pickDirectory(): Promise<PickedDirectory | null> {
+  return null;
+}
diff --git a/frontend/editor/src/core/services/fileSyncService.ts b/frontend/editor/src/core/services/fileSyncService.ts
index a218a43428..32e8ae32f1 100644
--- a/frontend/editor/src/core/services/fileSyncService.ts
+++ b/frontend/editor/src/core/services/fileSyncService.ts
@@ -11,6 +11,7 @@ import { alert } from "@app/components/toast";
 import { StirlingFileStub, StirlingFile } from "@app/types/fileContext";
 import { FileId } from "@app/types/fileContext";
 import { FolderId, parseFolderId } from "@app/types/folder";
+import { virtualFolderStorage } from "@app/services/virtualFolderStorage";
 import {
   isZipBundle,
   loadShareBundleEntries,
@@ -119,6 +120,15 @@ export async function reconcileServerFiles(
   }
 
   let combinedStubs: StirlingFileStub[];
+  // Virtual folders are browser-owned, so a stub sitting in one must keep its
+  // membership through the reconcile — the server's folderId (always null for them) is
+  // not an opinion about it.
+  const virtualFolderIds = new Set<FolderId>(
+    await virtualFolderStorage
+      .getAllFolders()
+      .then((folders) => folders.map((folder) => folder.id))
+      .catch(() => []),
+  );
   const localRemoteIds = new Set(
     localStubs
       .map((s) => s.remoteStorageId)
@@ -202,7 +212,12 @@ export async function reconcileServerFiles(
         // Server is authoritative for cloud-stored files. Don't fall back to
         // stub.folderId on null - that would resurrect a stale folder pointer
         // after the server SET_NULL'd it (e.g. owner deleted the folder).
-        folderId: safeParseFolderId(serverFile.folderId),
+        // EXCEPT when the stub sits in a browser-owned (virtual) folder: the
+        // server has never heard of that folder, so its null says nothing
+        // about the membership and must not eject the file from it.
+        folderId: virtualFolderIds.has((stub.folderId ?? "") as FolderId)
+          ? stub.folderId
+          : safeParseFolderId(serverFile.folderId),
       };
     });
 
diff --git a/frontend/editor/src/core/services/folderStorage.ts b/frontend/editor/src/core/services/folderStorage.ts
index f67c75a86b..4d1dccf004 100644
--- a/frontend/editor/src/core/services/folderStorage.ts
+++ b/frontend/editor/src/core/services/folderStorage.ts
@@ -11,12 +11,24 @@
  * are all the server's job now.
  */
 
-import { FolderId, FolderRecord } from "@app/types/folder";
+import { FolderId, FolderRecord, folderKind } from "@app/types/folder";
 import {
   indexedDBManager,
   DATABASE_CONFIGS,
 } from "@app/services/indexedDBManager";
 
+/**
+ * This cache is wiped and rewritten from the server's response on every sync, so a
+ * non-server folder stored here would silently vanish on the next pull.
+ */
+function requireServerFolder(folder: FolderRecord): void {
+  if (folderKind(folder) !== "server") {
+    throw new Error(
+      `folderStorage caches server folders only; got kind "${folderKind(folder)}" for ${folder.id}`,
+    );
+  }
+}
+
 class FolderStorageService {
   private readonly dbConfig = DATABASE_CONFIGS.FILES;
   private readonly storeName = "folders";
@@ -43,6 +55,7 @@ class FolderStorageService {
         reject(transaction.error ?? new Error("folder cache replace aborted"));
       store.clear();
       for (const folder of folders) {
+        requireServerFolder(folder);
         store.put(folder);
       }
     });
@@ -50,6 +63,7 @@ class FolderStorageService {
 
   /** Insert or overwrite a single folder in the cache. */
   async upsertFolder(folder: FolderRecord): Promise<void> {
+    requireServerFolder(folder);
     const db = await this.getDatabase();
     await new Promise<void>((resolve, reject) => {
       const transaction = db.transaction([this.storeName], "readwrite");
diff --git a/frontend/editor/src/core/services/folderSyncService.ts b/frontend/editor/src/core/services/folderSyncService.ts
index 53e1d7e65b..2d23f65a38 100644
--- a/frontend/editor/src/core/services/folderSyncService.ts
+++ b/frontend/editor/src/core/services/folderSyncService.ts
@@ -51,6 +51,9 @@ function toFolderRecord(dto: ServerFolder): FolderRecord {
     dto.parentFolderId === null ? null : parseFolderId(dto.parentFolderId);
   return {
     id,
+    // Everything that comes off this wire is a server folder by definition;
+    // virtual and local folders never round-trip through the server at all.
+    kind: "server",
     name: dto.name,
     parentFolderId,
     color: dto.color ?? undefined,
diff --git a/frontend/editor/src/core/services/indexedDBManager.migration.test.ts b/frontend/editor/src/core/services/indexedDBManager.migration.test.ts
index 0a5a4b9827..bc3addcb07 100644
--- a/frontend/editor/src/core/services/indexedDBManager.migration.test.ts
+++ b/frontend/editor/src/core/services/indexedDBManager.migration.test.ts
@@ -399,4 +399,71 @@ describe("IndexedDB migration (FILES store)", () => {
       TARGET_VERSION,
     );
   });
+
+  test("a v10 profile missing local_folders upgrades to v11 with the full schema", async () => {
+    // v10 briefly existed with only one of the two browser-folder stores.
+    await new Promise<void>((resolve, reject) => {
+      const req = indexedDB.open(DB_NAME, 10);
+      req.onupgradeneeded = () => {
+        const db = req.result;
+        db.createObjectStore("files", { keyPath: "id" });
+        db.createObjectStore("folders", { keyPath: "id" });
+        db.createObjectStore("virtual_folders", { keyPath: "id" });
+        // local_folders deliberately absent.
+      };
+      req.onsuccess = () => {
+        req.result.close();
+        resolve();
+      };
+      req.onerror = () => reject(req.error);
+    });
+
+    const db = await indexedDBManager.openDatabase(DATABASE_CONFIGS.FILES);
+    const names = Array.from(db.objectStoreNames);
+    expect(names).toContain("local_folders");
+    expect(names).toContain("virtual_folders");
+    expect(db.version).toBe(TARGET_VERSION);
+    indexedDBManager.closeDatabase(DB_NAME);
+  });
+
+  test("v9 -> latest adds virtual_folders without touching files or folders", async () => {
+    // Seed a database shaped like the v9 schema: files + folders, no
+    // virtual_folders yet, with a row in each that must survive the upgrade.
+    await new Promise<void>((resolve, reject) => {
+      const req = indexedDB.open(DB_NAME, 9);
+      req.onupgradeneeded = () => {
+        const db = req.result;
+        db.createObjectStore("files", { keyPath: "id" });
+        db.createObjectStore("folders", { keyPath: "id" });
+      };
+      req.onsuccess = () => {
+        const db = req.result;
+        const tx = db.transaction(["files", "folders"], "readwrite");
+        tx.objectStore("files").put({ id: "file-1", folderId: null });
+        tx.objectStore("folders").put({ id: "folder-1", name: "Kept" });
+        tx.oncomplete = () => {
+          db.close();
+          resolve();
+        };
+        tx.onerror = () => reject(tx.error);
+      };
+      req.onerror = () => reject(req.error);
+    });
+
+    await indexedDBManager.openDatabase(DATABASE_CONFIGS.FILES);
+    indexedDBManager.closeDatabase(DB_NAME);
+
+    const stores = await getObjectStoreNames();
+    expect(stores).toContain("virtual_folders");
+    expect(stores).toContain("local_folders");
+    expect(stores).toContain("files");
+    expect(stores).toContain("folders");
+
+    const rows = (await readAllFiles()) as Array<Record<string, unknown>>;
+    expect(rows.map((row) => row.id)).toEqual(["file-1"]);
+
+    expect(await indexedDBManager.getDatabaseVersion(DB_NAME)).toBe(
+      TARGET_VERSION,
+    );
+  });
 });
diff --git a/frontend/editor/src/core/services/indexedDBManager.ts b/frontend/editor/src/core/services/indexedDBManager.ts
index dd823a2bd9..9be3fa4f59 100644
--- a/frontend/editor/src/core/services/indexedDBManager.ts
+++ b/frontend/editor/src/core/services/indexedDBManager.ts
@@ -465,7 +465,9 @@ class IndexedDBManager {
 export const DATABASE_CONFIGS = {
   FILES: {
     name: "stirling-pdf-files",
-    version: 9,
+    // v10 existed briefly with only one of the two browser-folder stores; v11 declares
+    // both, so every v10 profile upgrades to a full schema.
+    version: 11,
     stores: [
       {
         name: "files",
@@ -492,6 +494,27 @@ export const DATABASE_CONFIGS = {
           { name: "createdAt", keyPath: "createdAt", unique: false },
         ],
       },
+      {
+        name: "local_folders",
+        keyPath: "id",
+        indexes: [{ name: "name", keyPath: "name", unique: false }],
+      },
+      // Browser-owned folders (kind "virtual"), deliberately a separate store from
+      // `folders`: that one is a cache the server sync wipes wholesale on every pull,
+      // and these rows have no server copy to be restored from.
+      {
+        name: "virtual_folders",
+        keyPath: "id",
+        indexes: [
+          {
+            name: "parentFolderId",
+            keyPath: "parentFolderId",
+            unique: false,
+          },
+          { name: "name", keyPath: "name", unique: false },
+          { name: "createdAt", keyPath: "createdAt", unique: false },
+        ],
+      },
     ],
   } as DatabaseConfig,
 
diff --git a/frontend/editor/src/core/services/localFolderContents.ts b/frontend/editor/src/core/services/localFolderContents.ts
new file mode 100644
index 0000000000..e7f1f06957
--- /dev/null
+++ b/frontend/editor/src/core/services/localFolderContents.ts
@@ -0,0 +1,54 @@
+/** One file inside a mounted directory, as the file manager lists it. */
+export interface DiskFileEntry {
+  /** Absolute path — the file's identity here; nothing about it is stored. */
+  path: string;
+  name: string;
+  sizeBytes: number;
+  lastModified: number;
+}
+
+export interface DiskDirEntry {
+  path: string;
+  name: string;
+}
+
+/** What one look at a mounted directory yields. */
+export interface DiskListing {
+  files: DiskFileEntry[];
+  directories: DiskDirEntry[];
+}
+
+export const canListDirectory = false;
+
+/**
+ * The regular files and subdirectories directly inside `directory` — one level, never
+ * recursive; a subdirectory is listed only when entered.
+ */
+export async function listDirectory(
+  _directory: string,
+): Promise<DiskListing | null> {
+  return null;
+}
+
+export async function makeDiskDirectory(
+  _parent: string,
+  _name: string,
+): Promise<string | null> {
+  return null;
+}
+
+/** Read one listed file's bytes as a File, ready for the workbench. */
+export async function readDiskFile(
+  _entry: DiskFileEntry,
+): Promise<File | null> {
+  return null;
+}
+
+/** Write a file into a mounted directory, under a name that never clobbers an existing one. */
+export async function writeDiskFile(
+  _directory: string,
+  _name: string,
+  _bytes: Blob,
+): Promise<string | null> {
+  return null;
+}
diff --git a/frontend/editor/src/core/services/localFolderStorage.test.ts b/frontend/editor/src/core/services/localFolderStorage.test.ts
new file mode 100644
index 0000000000..fffe8e9d3b
--- /dev/null
+++ b/frontend/editor/src/core/services/localFolderStorage.test.ts
@@ -0,0 +1,64 @@
+import { describe, expect, test, beforeEach } from "vitest";
+import "fake-indexeddb/auto";
+import { IDBFactory } from "fake-indexeddb";
+import {
+  localFolderStorage,
+  directoryKey,
+} from "@app/services/localFolderStorage";
+import {
+  indexedDBManager,
+  DATABASE_CONFIGS,
+} from "@app/services/indexedDBManager";
+
+/**
+ * A mount is a pointer at a directory, and one directory must never have two pointers —
+ * the rows would be two names for one truth.
+ */
+describe("localFolderStorage", () => {
+  beforeEach(() => {
+    indexedDBManager.closeDatabase(DATABASE_CONFIGS.FILES.name);
+    globalThis.indexedDB = new IDBFactory();
+  });
+
+  test("directoryKey equates the spellings a case-insensitive filesystem does", () => {
+    const key = directoryKey("C:\\Users\\Reece\\Downloads");
+    expect(directoryKey("c:\\users\\reece\\downloads")).toBe(key);
+    expect(directoryKey("C:\\Users\\Reece\\Downloads\\")).toBe(key);
+    expect(directoryKey("C:/Users/Reece/Downloads")).toBe(key);
+    expect(directoryKey("C:\\Users\\\\Reece\\Downloads")).toBe(key);
+
+    expect(directoryKey("\\\\server\\share\\docs")).toBe(
+      directoryKey("//SERVER/share/docs/"),
+    );
+
+    // POSIX paths are genuinely case-sensitive; only the separator rules apply.
+    expect(directoryKey("/home/Reece/")).toBe(directoryKey("/home/Reece"));
+    expect(directoryKey("/home/Reece")).not.toBe(directoryKey("/home/reece"));
+  });
+
+  test("mounting the same directory under another spelling hands back the existing record", async () => {
+    const first = await localFolderStorage.mountDirectory(
+      "C:\\Users\\Reece\\Downloads",
+      "Downloads",
+    );
+    const again = await localFolderStorage.mountDirectory(
+      "c:/users/reece/downloads/",
+      "downloads",
+    );
+    expect(again.id).toBe(first.id);
+    expect(await localFolderStorage.getAllFolders()).toHaveLength(1);
+  });
+
+  test("a subdirectory of a mount gets its own mount; that is the only way to reach it", async () => {
+    const parent = await localFolderStorage.mountDirectory(
+      "C:\\Users\\Reece\\Downloads",
+      "Downloads",
+    );
+    const child = await localFolderStorage.mountDirectory(
+      "C:\\Users\\Reece\\Downloads\\Invoices",
+      "Invoices",
+    );
+    expect(child.id).not.toBe(parent.id);
+    expect(await localFolderStorage.getAllFolders()).toHaveLength(2);
+  });
+});
diff --git a/frontend/editor/src/core/services/localFolderStorage.ts b/frontend/editor/src/core/services/localFolderStorage.ts
new file mode 100644
index 0000000000..c9dc16da32
--- /dev/null
+++ b/frontend/editor/src/core/services/localFolderStorage.ts
@@ -0,0 +1,119 @@
+/**
+ * The record of directories mounted into the file manager (kind "local"): a pointer at
+ * a directory, nothing more.
+ */
+
+import {
+  FolderId,
+  FolderRecord,
+  folderKind,
+  createFolderId,
+  pickFolderColor,
+} from "@app/types/folder";
+import {
+  indexedDBManager,
+  DATABASE_CONFIGS,
+} from "@app/services/indexedDBManager";
+
+/** One directory, one key — regardless of how the picker spelled the path. */
+export function directoryKey(directory: string): string {
+  let key = directory.replace(/\\/g, "/");
+  const unc = key.startsWith("//");
+  key = key.replace(/\/{2,}/g, "/");
+  if (unc) key = `/${key}`;
+  if (key.length > 1 && !/^[a-zA-Z]:\/$/.test(key)) {
+    key = key.replace(/\/+$/, "");
+  }
+  if (/^[a-zA-Z]:/.test(key) || unc) {
+    key = key.toLowerCase();
+  }
+  return key;
+}
+
+function requireLocalFolder(folder: FolderRecord): void {
+  if (folderKind(folder) !== "local") {
+    throw new Error(
+      `localFolderStorage owns local folders only; got kind "${folderKind(folder)}" for ${folder.id}`,
+    );
+  }
+}
+
+class LocalFolderStorageService {
+  private readonly dbConfig = DATABASE_CONFIGS.FILES;
+  private readonly storeName = "local_folders";
+
+  private async getDatabase(): Promise<IDBDatabase> {
+    return indexedDBManager.openDatabase(this.dbConfig);
+  }
+
+  async getAllFolders(): Promise<FolderRecord[]> {
+    const db = await this.getDatabase();
+    return new Promise((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readonly");
+      const store = transaction.objectStore(this.storeName);
+      const request = store.getAll();
+      request.onerror = () => reject(request.error);
+      request.onsuccess = () =>
+        resolve((request.result as FolderRecord[]) ?? []);
+    });
+  }
+
+  /**
+   * Mount a directory, or hand back the existing record for one already mounted: two
+   * rows for one directory would be two names for one truth.
+   */
+  async mountDirectory(directory: string, name: string): Promise<FolderRecord> {
+    const key = directoryKey(directory);
+    const folders = await this.getAllFolders();
+    const existing = folders.find(
+      (folder) => directoryKey(folder.directory ?? "") === key,
+    );
+    if (existing) return existing;
+    const now = Date.now();
+    const record: FolderRecord = {
+      id: createFolderId(),
+      kind: "local",
+      name,
+      parentFolderId: null,
+      directory,
+      color: pickFolderColor(name),
+      createdAt: now,
+      updatedAt: now,
+    };
+    requireLocalFolder(record);
+    const db = await this.getDatabase();
+    await new Promise<void>((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      const req = store.put(record);
+      req.onerror = () => reject(req.error);
+      req.onsuccess = () => resolve();
+    });
+    return record;
+  }
+
+  /** Remove the mount. The directory on disk is untouched, always. */
+  async removeFolder(id: FolderId): Promise<void> {
+    const db = await this.getDatabase();
+    await new Promise<void>((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      const req = store.delete(id);
+      req.onerror = () => reject(req.error);
+      req.onsuccess = () => resolve();
+    });
+  }
+
+  async clearAll(): Promise<void> {
+    const db = await this.getDatabase();
+    return new Promise((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      const request = store.clear();
+      request.onerror = () => reject(request.error);
+      request.onsuccess = () => resolve();
+    });
+  }
+}
+
+export const localFolderStorage = new LocalFolderStorageService();
diff --git a/frontend/editor/src/core/services/mountWrites.ts b/frontend/editor/src/core/services/mountWrites.ts
new file mode 100644
index 0000000000..afe660cb96
--- /dev/null
+++ b/frontend/editor/src/core/services/mountWrites.ts
@@ -0,0 +1,38 @@
+import { writeDiskFile } from "@app/services/localFolderContents";
+
+export interface MountWriteItem {
+  name: string;
+  /** Pulled lazily, one file at a time — a batch never sits in memory whole. */
+  bytes: () => Promise<Blob | null>;
+}
+
+/**
+ * Write named blobs into a mounted directory - the one engine behind both uploading
+ * into a mount and moving library files into one, so failure accounting and collision
+ * behaviour cannot drift apart.
+ */
+export async function writeIntoMount(
+  directory: string | undefined,
+  items: MountWriteItem[],
+): Promise<{ written: boolean[]; failedCount: number }> {
+  const written: boolean[] = items.map(() => false);
+  let failedCount = 0;
+  for (let i = 0; i < items.length; i++) {
+    try {
+      const blob = directory ? await items[i].bytes() : null;
+      const result =
+        blob && directory
+          ? await writeDiskFile(directory, items[i].name, blob)
+          : null;
+      if (result === null) {
+        failedCount += 1;
+      } else {
+        written[i] = true;
+      }
+    } catch (err) {
+      console.warn("[mountWrites] write into mount failed", err);
+      failedCount += 1;
+    }
+  }
+  return { written, failedCount };
+}
diff --git a/frontend/editor/src/core/services/virtualFolderStorage.test.ts b/frontend/editor/src/core/services/virtualFolderStorage.test.ts
new file mode 100644
index 0000000000..fb4979cfdd
--- /dev/null
+++ b/frontend/editor/src/core/services/virtualFolderStorage.test.ts
@@ -0,0 +1,78 @@
+import { describe, expect, test, beforeEach } from "vitest";
+import "fake-indexeddb/auto";
+import { IDBFactory } from "fake-indexeddb";
+import { virtualFolderStorage } from "@app/services/virtualFolderStorage";
+import { folderStorage } from "@app/services/folderStorage";
+import {
+  indexedDBManager,
+  DATABASE_CONFIGS,
+} from "@app/services/indexedDBManager";
+
+/**
+ * Virtual folders have no server to be authoritative, so the invariants the
+ * server enforces for its folders (no cycles, bounded depth, subtree deletes
+ * that report every removed id) are this module's own responsibility.
+ */
+describe("virtualFolderStorage", () => {
+  beforeEach(() => {
+    indexedDBManager.closeDatabase(DATABASE_CONFIGS.FILES.name);
+    globalThis.indexedDB = new IDBFactory();
+  });
+
+  test("creates rows stamped virtual, invisible to the server folder cache", async () => {
+    const created = await virtualFolderStorage.createFolder("Research", null);
+    expect(created.kind).toBe("virtual");
+
+    // Same DB, different store: the server cache must not see it, because a
+    // sync wipes that cache wholesale and would silently destroy the row.
+    expect(await folderStorage.getAllFolders()).toEqual([]);
+    expect(await virtualFolderStorage.getAllFolders()).toEqual([created]);
+  });
+
+  test("the server cache refuses a virtual row outright", async () => {
+    const virtual = await virtualFolderStorage.createFolder("Research", null);
+    await expect(folderStorage.upsertFolder(virtual)).rejects.toThrow(
+      /server folders only/,
+    );
+  });
+
+  test("refuses to move a folder into its own subtree", async () => {
+    const parent = await virtualFolderStorage.createFolder("a", null);
+    const child = await virtualFolderStorage.createFolder("b", parent.id);
+    const grandchild = await virtualFolderStorage.createFolder("c", child.id);
+
+    await expect(
+      virtualFolderStorage.moveFolder(parent.id, grandchild.id),
+    ).rejects.toThrow(/own subtree/);
+    await expect(
+      virtualFolderStorage.moveFolder(parent.id, parent.id),
+    ).rejects.toThrow(/into itself/);
+  });
+
+  test("deleting a folder removes its whole subtree and reports every id", async () => {
+    const parent = await virtualFolderStorage.createFolder("a", null);
+    const child = await virtualFolderStorage.createFolder("b", parent.id);
+    const grandchild = await virtualFolderStorage.createFolder("c", child.id);
+    const bystander = await virtualFolderStorage.createFolder("keep", null);
+
+    const removed = await virtualFolderStorage.deleteFolder(parent.id);
+
+    // Every removed id is reported so the caller can unlink files that
+    // referenced them — the same contract as the server delete.
+    expect([...removed].sort()).toEqual(
+      [parent.id, child.id, grandchild.id].sort(),
+    );
+    expect(await virtualFolderStorage.getAllFolders()).toEqual([bystander]);
+  });
+
+  test("refuses to nest past the depth cap", async () => {
+    let parentId = (await virtualFolderStorage.createFolder("d0", null)).id;
+    for (let i = 1; i < 64; i += 1) {
+      parentId = (await virtualFolderStorage.createFolder(`d${i}`, parentId))
+        .id;
+    }
+    await expect(
+      virtualFolderStorage.createFolder("too-deep", parentId),
+    ).rejects.toThrow(/depth limit/);
+  });
+});
diff --git a/frontend/editor/src/core/services/virtualFolderStorage.ts b/frontend/editor/src/core/services/virtualFolderStorage.ts
new file mode 100644
index 0000000000..3068cc5290
--- /dev/null
+++ b/frontend/editor/src/core/services/virtualFolderStorage.ts
@@ -0,0 +1,219 @@
+/**
+ * The system of record for kind "virtual" folders - rows this store owns rather than
+ * caches.
+ */
+
+import {
+  FolderId,
+  FolderRecord,
+  folderKind,
+  createFolderId,
+  pickFolderColor,
+} from "@app/types/folder";
+import {
+  indexedDBManager,
+  DATABASE_CONFIGS,
+} from "@app/services/indexedDBManager";
+
+/** Mirrors FolderService.MAX_FOLDER_DEPTH so virtual trees can't out-nest server ones. */
+const MAX_FOLDER_DEPTH = 64;
+
+function requireVirtualFolder(folder: FolderRecord): void {
+  if (folderKind(folder) !== "virtual") {
+    throw new Error(
+      `virtualFolderStorage owns virtual folders only; got kind "${folderKind(folder)}" for ${folder.id}`,
+    );
+  }
+}
+
+class VirtualFolderStorageService {
+  private readonly dbConfig = DATABASE_CONFIGS.FILES;
+  private readonly storeName = "virtual_folders";
+
+  private async getDatabase(): Promise<IDBDatabase> {
+    return indexedDBManager.openDatabase(this.dbConfig);
+  }
+
+  async getAllFolders(): Promise<FolderRecord[]> {
+    const db = await this.getDatabase();
+    return new Promise((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readonly");
+      const store = transaction.objectStore(this.storeName);
+      const request = store.getAll();
+      request.onerror = () => reject(request.error);
+      request.onsuccess = () =>
+        resolve((request.result as FolderRecord[]) ?? []);
+    });
+  }
+
+  async getFolder(id: FolderId): Promise<FolderRecord | null> {
+    const db = await this.getDatabase();
+    return new Promise((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readonly");
+      const store = transaction.objectStore(this.storeName);
+      const request = store.get(id);
+      request.onerror = () => reject(request.error);
+      request.onsuccess = () =>
+        resolve((request.result as FolderRecord | undefined) ?? null);
+    });
+  }
+
+  /**
+   * Create a virtual folder under `parent` (null = root), which must itself be
+   * virtual: hung off a server folder, a server-side delete orphans the subtree.
+   */
+  async createFolder(
+    name: string,
+    parentFolderId: FolderId | null,
+  ): Promise<FolderRecord> {
+    if (parentFolderId !== null) {
+      await this.requireWithinDepth(parentFolderId);
+    }
+    const now = Date.now();
+    const record: FolderRecord = {
+      id: createFolderId(),
+      kind: "virtual",
+      name,
+      parentFolderId,
+      color: pickFolderColor(name),
+      createdAt: now,
+      updatedAt: now,
+    };
+    await this.put(record);
+    return record;
+  }
+
+  /** Rename / recolour / re-icon in place. Structure is moveFolder's job. */
+  async updateFolder(
+    id: FolderId,
+    updates: Partial<Pick<FolderRecord, "name" | "color" | "icon">>,
+  ): Promise<FolderRecord | null> {
+    const existing = await this.getFolder(id);
+    if (!existing) return null;
+    const next: FolderRecord = {
+      ...existing,
+      ...updates,
+      updatedAt: Date.now(),
+    };
+    await this.put(next);
+    return next;
+  }
+
+  /**
+   * Reparent a folder (null = to root), refusing moves that would make the
+   * tree lie: under itself or its own descendant (a cycle — the subtree would
+   * fall out of every walk), or deeper than the depth cap.
+   */
+  async moveFolder(
+    id: FolderId,
+    newParentId: FolderId | null,
+  ): Promise<FolderRecord | null> {
+    const existing = await this.getFolder(id);
+    if (!existing) return null;
+    if (newParentId !== null) {
+      if (newParentId === id) {
+        throw new Error("Cannot move a folder into itself");
+      }
+      const ancestors = await this.requireWithinDepth(newParentId);
+      if (ancestors.has(id)) {
+        throw new Error("Cannot move a folder into its own subtree");
+      }
+    }
+    const next: FolderRecord = {
+      ...existing,
+      parentFolderId: newParentId,
+      updatedAt: Date.now(),
+    };
+    await this.put(next);
+    return next;
+  }
+
+  /**
+   * Delete a folder and its whole virtual subtree, returning every removed id
+   * so the caller can unlink files that referenced them — mirroring the shape
+   * of the server delete, which reports removedFolderIds for the same reason.
+   */
+  async deleteFolder(id: FolderId): Promise<FolderId[]> {
+    const all = await this.getAllFolders();
+    const childrenByParent = new Map<FolderId | null, FolderRecord[]>();
+    for (const folder of all) {
+      const siblings = childrenByParent.get(folder.parentFolderId) ?? [];
+      siblings.push(folder);
+      childrenByParent.set(folder.parentFolderId, siblings);
+    }
+    // `removed` doubles as the BFS queue (index-walked; shift() would
+    // reindex the array on every visit).
+    const removed: FolderId[] = [id];
+    for (let head = 0; head < removed.length; head++) {
+      for (const child of childrenByParent.get(removed[head]) ?? []) {
+        removed.push(child.id);
+      }
+    }
+    const db = await this.getDatabase();
+    await new Promise<void>((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      transaction.oncomplete = () => resolve();
+      transaction.onerror = () =>
+        reject(transaction.error ?? new Error("virtual folder delete failed"));
+      transaction.onabort = () =>
+        reject(transaction.error ?? new Error("virtual folder delete aborted"));
+      for (const folderId of removed) store.delete(folderId);
+    });
+    return removed;
+  }
+
+  async clearAll(): Promise<void> {
+    const db = await this.getDatabase();
+    return new Promise((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      const request = store.clear();
+      request.onerror = () => reject(request.error);
+      request.onsuccess = () => resolve();
+    });
+  }
+
+  private async put(record: FolderRecord): Promise<void> {
+    requireVirtualFolder(record);
+    const db = await this.getDatabase();
+    await new Promise<void>((resolve, reject) => {
+      const transaction = db.transaction([this.storeName], "readwrite");
+      const store = transaction.objectStore(this.storeName);
+      const req = store.put(record);
+      req.onerror = () => reject(req.error);
+      req.onsuccess = () => resolve();
+    });
+  }
+
+  /** Walk from `startId` to the root, returning the ids seen. */
+  private async requireWithinDepth(startId: FolderId): Promise<Set<FolderId>> {
+    // One read for the whole store, walked in memory — the chain would
+    // otherwise cost a serialized IndexedDB round trip per ancestor.
+    const byId = new Map(
+      (await this.getAllFolders()).map((folder) => [folder.id, folder]),
+    );
+    const seen = new Set<FolderId>();
+    let cursor: FolderId | null = startId;
+    while (cursor !== null) {
+      if (seen.has(cursor)) {
+        throw new Error("Virtual folder hierarchy contains a cycle");
+      }
+      seen.add(cursor);
+      const parent = byId.get(cursor);
+      if (parent === undefined) {
+        throw new Error(`No virtual folder: ${cursor}`);
+      }
+      cursor = parent.parentFolderId;
+    }
+    // The chain walked is the prospective parent's own ancestry; whatever is
+    // being placed under it sits one level deeper, so a full-depth chain has
+    // no room for a child.
+    if (seen.size >= MAX_FOLDER_DEPTH) {
+      throw new Error(`Folder depth limit reached (max ${MAX_FOLDER_DEPTH})`);
+    }
+    return seen;
+  }
+}
+
+export const virtualFolderStorage = new VirtualFolderStorageService();
diff --git a/frontend/editor/src/core/types/file.ts b/frontend/editor/src/core/types/file.ts
index c6ec1898cb..dd252af7b9 100644
--- a/frontend/editor/src/core/types/file.ts
+++ b/frontend/editor/src/core/types/file.ts
@@ -65,13 +65,16 @@ export interface BaseFileMetadata {
   sourceFileIds?: FileId[];
 
   /**
-   * The cloud folder this file lives in. Semantics:
-   * - `remoteStorageId == null` → file is local-only; folderId MUST be null.
-   * - `remoteStorageId != null && folderId == null` → file is at the cloud root.
-   * - `remoteStorageId != null && folderId == X` → file lives in cloud folder X.
+   * The folder this file lives in. Semantics by storage state:
+   * - Cloud-stored (`remoteStorageId != null`): server-authoritative — null is
+   *   the cloud root, X is server folder X; the sync overwrites it.
+   * - Local-only: browser-owned — a browser folder's id, or the server folder
+   *   the file was placed in at upload time, which membership the server
+   *   adopts once the save-to-server lands (and which keeps the file visibly
+   *   in its folder if that save fails).
    *
-   * The "Local" pseudo-folder in the UI is the predicate `remoteStorageId == null`;
-   * it has no corresponding {@code folderId} value. Folders are a server-only concept.
+   * The "Local" pseudo-folder in the UI is the predicate
+   * `remoteStorageId == null && folderId == null`.
    */
   folderId?: FolderId | null;
 
diff --git a/frontend/editor/src/core/types/folder.test.ts b/frontend/editor/src/core/types/folder.test.ts
new file mode 100644
index 0000000000..2e2c726572
--- /dev/null
+++ b/frontend/editor/src/core/types/folder.test.ts
@@ -0,0 +1,31 @@
+import { describe, expect, test } from "vitest";
+import {
+  diskFolderId,
+  diskFolderPath,
+  isDiskFolderId,
+} from "@app/types/folder";
+
+/**
+ * A mount's subdirectories have no stored record, so their ids must carry the
+ * path itself — through a URL, across a reload, for any spelling the OS uses.
+ */
+describe("disk folder ids", () => {
+  test("round-trips Windows, POSIX, and non-ASCII paths", () => {
+    for (const path of [
+      "C:\\Users\\Reece\\Downloads\\Invoices",
+      "/home/reece/Documents/Rechnungen 2026",
+      "D:\\\u041f\u0440\u043e\u0435\u043a\u0442\u044b\\\u0421\u0447\u0435\u0442\u0430",
+    ]) {
+      const id = diskFolderId(path);
+      expect(isDiskFolderId(id)).toBe(true);
+      expect(diskFolderPath(id)).toBe(path);
+    }
+  });
+
+  test("is URL-safe and distinct from stored folder ids", () => {
+    const id = diskFolderId("C:\\a+b/c?d");
+    expect(id).toMatch(/^disk:[A-Za-z0-9_-]+$/);
+    expect(isDiskFolderId("3f0e2a9c-0000-4000-8000-000000000000")).toBe(false);
+    expect(diskFolderPath("not-a-disk-id")).toBeNull();
+  });
+});
diff --git a/frontend/editor/src/core/types/folder.ts b/frontend/editor/src/core/types/folder.ts
index dbc0710fc9..5ac464ed6f 100644
--- a/frontend/editor/src/core/types/folder.ts
+++ b/frontend/editor/src/core/types/folder.ts
@@ -37,11 +37,21 @@ export const FOLDER_COLOR_PALETTE = [
 /** Members of {@link FOLDER_COLOR_PALETTE}. Use this rather than `string` to keep callers honest. */
 export type FolderPaletteColor = (typeof FOLDER_COLOR_PALETTE)[number];
 
+/**
+ * Three independent features that share a shape, not variants of one: - `server`: in
+ * the server's database, synced down and cached; needs login and storage to exist.
+ */
+export type FolderKind = "server" | "virtual" | "local";
+
 /** Persisted folder shape stored in IndexedDB. */
 export interface FolderRecord {
   id: FolderId;
+  /** Read through {@link folderKind}, never directly. */
+  kind?: FolderKind;
   name: string;
   parentFolderId: FolderId | null;
+  /** For `local` folders: the directory this record mounts. */
+  directory?: string;
   /** Hex colour - either a palette member or any custom hex from a future picker. */
   color?: string;
   icon?: string;
@@ -49,6 +59,11 @@ export interface FolderRecord {
   updatedAt: number;
 }
 
+/** Absent means `server`: server DTOs and rows predating kinds never carry one. */
+export function folderKind(folder: Pick<FolderRecord, "kind">): FolderKind {
+  return folder.kind ?? "server";
+}
+
 /**
  * Folder tree node - derived from FolderRecord[] for rendering the tree
  * navigator. Children are ordered by name (case-insensitive).
@@ -82,6 +97,40 @@ export function parseFolderId(value: unknown): FolderId {
   return value as FolderId;
 }
 
+/** Subdirectories of a mounted folder are not stored anywhere — the directory is the record. */
+const DISK_FOLDER_ID_PREFIX = "disk:";
+
+export function diskFolderId(path: string): FolderId {
+  const bytes = new TextEncoder().encode(path);
+  let binary = "";
+  for (const b of bytes) binary += String.fromCharCode(b);
+  const b64 = btoa(binary)
+    .replace(/\+/g, "-")
+    .replace(/\//g, "_")
+    .replace(/=+$/, "");
+  return `${DISK_FOLDER_ID_PREFIX}${b64}` as FolderId;
+}
+
+export function isDiskFolderId(id: string): boolean {
+  return id.startsWith(DISK_FOLDER_ID_PREFIX);
+}
+
+/** The path a disk subfolder id encodes, or null for any other id. */
+export function diskFolderPath(id: string): string | null {
+  if (!isDiskFolderId(id)) return null;
+  const b64 = id
+    .slice(DISK_FOLDER_ID_PREFIX.length)
+    .replace(/-/g, "+")
+    .replace(/_/g, "/");
+  try {
+    const binary = atob(b64);
+    const bytes = Uint8Array.from(binary, (c) => c.charCodeAt(0));
+    return new TextDecoder().decode(bytes);
+  } catch {
+    return null;
+  }
+}
+
 export function createFolderId(): FolderId {
   return generateId() as FolderId;
 }
diff --git a/frontend/editor/src/desktop/hooks/useServerFolderBlock.ts b/frontend/editor/src/desktop/hooks/useServerFolderBlock.ts
new file mode 100644
index 0000000000..9a16c63ff7
--- /dev/null
+++ b/frontend/editor/src/desktop/hooks/useServerFolderBlock.ts
@@ -0,0 +1,43 @@
+import { useEffect, useState } from "react";
+import { useTranslation } from "react-i18next";
+import { connectionModeService } from "@app/services/connectionModeService";
+import type { ConnectionMode } from "@app/services/connectionModeService";
+import { useServerFolderBlock as useCoreServerFolderBlock } from "@core/hooks/useServerFolderBlock";
+
+/**
+ * Desktop's blocker speaks in connection modes: local mode has no server at all, so
+ * "storage isn't enabled" would send the user after a setting that does not exist.
+ */
+export function useServerFolderBlock(): string | null {
+  const { t } = useTranslation();
+  const coreReason = useCoreServerFolderBlock();
+  // Seeded from the cache so a remount answers on its first frame; the effect covers
+  // the first-ever load and later mode switches.
+  const [mode, setMode] = useState<ConnectionMode | null>(() =>
+    connectionModeService.getCachedMode(),
+  );
+  useEffect(() => {
+    let mounted = true;
+    void connectionModeService.getCurrentMode().then((current) => {
+      if (mounted) setMode(current);
+    });
+    const unsubscribe = connectionModeService.subscribeToModeChanges((config) =>
+      setMode(config.mode),
+    );
+    return () => {
+      mounted = false;
+      unsubscribe();
+    };
+  }, []);
+  // While the mode is unknown (first-ever load), fail closed with the same message: in
+  // any mode where the item would be blocked, signing in or connecting a server IS the
+  // way out — unlike the core reasons, which in local mode point at a storage setting
+  // that doesn't exist.
+  if (mode === "local" || mode === null) {
+    return t(
+      "filesPage.serverFolderNeedsConnection",
+      "Sign in to Stirling Cloud or connect a self-hosted server to use server folders.",
+    );
+  }
+  return coreReason;
+}
diff --git a/frontend/editor/src/desktop/services/connectionModeService.ts b/frontend/editor/src/desktop/services/connectionModeService.ts
index 9d440e04ed..fe4fe320a6 100644
--- a/frontend/editor/src/desktop/services/connectionModeService.ts
+++ b/frontend/editor/src/desktop/services/connectionModeService.ts
@@ -71,6 +71,11 @@ export class ConnectionModeService {
     return config.mode;
   }
 
+  /** The mode already in memory, or null before the first load. */
+  getCachedMode(): ConnectionMode | null {
+    return this.currentConfig?.mode ?? null;
+  }
+
   async getServerConfig(): Promise<ServerConfig | null> {
     const config = await this.getCurrentConfig();
     return config.server_config;
diff --git a/frontend/editor/src/desktop/services/directoryPicker.ts b/frontend/editor/src/desktop/services/directoryPicker.ts
new file mode 100644
index 0000000000..9d3e4e47b2
--- /dev/null
+++ b/frontend/editor/src/desktop/services/directoryPicker.ts
@@ -0,0 +1,27 @@
+/**
+ * Desktop directory picking: the Tauri file dialog hands back a real path,
+ * which is the whole reason local folders are a desktop capability — a
+ * browser can only produce handles, never locations.
+ */
+
+import { isTauri } from "@tauri-apps/api/core";
+import { open } from "@tauri-apps/plugin-dialog";
+import type { PickedDirectory } from "@core/services/directoryPicker";
+export type { PickedDirectory };
+
+// The desktop bundle also runs as a plain web page in dev; only the actual
+// Tauri webview can open the native dialog.
+export const canPickDirectory = isTauri();
+
+export async function pickDirectory(): Promise<PickedDirectory | null> {
+  if (!canPickDirectory) return null;
+  const picked = await open({ directory: true, multiple: false });
+  if (typeof picked !== "string" || picked.length === 0) return null;
+  // The path's last segment, tolerant of either separator and a trailing one.
+  const name =
+    picked
+      .replace(/[\\/]+$/, "")
+      .split(/[\\/]/)
+      .pop() || picked;
+  return { path: picked, name };
+}
diff --git a/frontend/editor/src/desktop/services/localFolderContents.ts b/frontend/editor/src/desktop/services/localFolderContents.ts
new file mode 100644
index 0000000000..1d071b74bb
--- /dev/null
+++ b/frontend/editor/src/desktop/services/localFolderContents.ts
@@ -0,0 +1,191 @@
+/** Desktop read-through for mounted local folders, over the Tauri filesystem plugin. */
+
+import { isTauri } from "@tauri-apps/api/core";
+import {
+  mkdir,
+  readDir,
+  readFile,
+  stat,
+  writeFile,
+} from "@tauri-apps/plugin-fs";
+import {
+  directoryKey,
+  localFolderStorage,
+} from "@core/services/localFolderStorage";
+import type {
+  DiskDirEntry,
+  DiskFileEntry,
+  DiskListing,
+} from "@core/services/localFolderContents";
+export type { DiskDirEntry, DiskFileEntry, DiskListing };
+
+/**
+ * Containment: these reads and writes run under a filesystem-wide Tauri capability, but
+ * the contract here is mounted directories only, so any path outside one is refused.
+ */
+async function isWithinMount(path: string): Promise<boolean> {
+  const pathKey = directoryKey(path);
+  const folders = await localFolderStorage.getAllFolders();
+  return folders
+    .map((folder) => directoryKey(folder.directory ?? ""))
+    .filter((key) => key.length > 0)
+    .some(
+      (dir) =>
+        pathKey === dir ||
+        pathKey.startsWith(dir.endsWith("/") ? dir : `${dir}/`),
+    );
+}
+
+/** Caps the listing; past the cap the freshest files win, which is what is wanted
+ *  in a Downloads-like directory. */
+const LIST_CAP = 500;
+
+/**
+ * Every stat is a webview-to-Rust round trip, so listing cost is IPC latency, not disk
+ * speed.
+ */
+const STAT_BATCH = 32;
+
+/** Lexical join: path.join is another IPC round trip, and a directory joined to a
+ *  name it reported itself needs no normalisation a string cannot do. */
+function joinPath(directory: string, name: string): string {
+  const sep = directory.includes("\\") ? "\\" : "/";
+  const base = directory.endsWith(sep)
+    ? directory.slice(0, -sep.length)
+    : directory;
+  return `${base}${sep}${name}`;
+}
+
+export const canListDirectory = isTauri();
+
+export async function listDirectory(
+  directory: string,
+): Promise<DiskListing | null> {
+  if (!canListDirectory) return null;
+  const dirEntries = await readDir(directory);
+  // Visible entries, one level deep: a subdirectory lists when the user enters it.
+  const visible = dirEntries.filter((entry) => !entry.name.startsWith("."));
+  const directories: DiskDirEntry[] = visible
+    .filter((entry) => entry.isDirectory)
+    .map((entry) => ({
+      path: joinPath(directory, entry.name),
+      name: entry.name,
+    }))
+    .sort((a, b) =>
+      a.name.localeCompare(b.name, undefined, { sensitivity: "base" }),
+    );
+  const candidates = visible.filter((entry) => entry.isFile);
+  const files: DiskFileEntry[] = [];
+  for (let i = 0; i < candidates.length; i += STAT_BATCH) {
+    const batch = candidates.slice(i, i + STAT_BATCH);
+    const stats = await Promise.all(
+      batch.map(async (entry) => {
+        const path = joinPath(directory, entry.name);
+        try {
+          const info = await stat(path);
+          return {
+            path,
+            name: entry.name,
+            sizeBytes: info.size,
+            lastModified: info.mtime ? new Date(info.mtime).getTime() : 0,
+          };
+        } catch {
+          // Vanished or unreadable mid-listing; the next look tells the truth.
+          return null;
+        }
+      }),
+    );
+    for (const entry of stats) {
+      if (entry) files.push(entry);
+    }
+  }
+  files.sort((a, b) => b.lastModified - a.lastModified);
+  return { files: files.slice(0, LIST_CAP), directories };
+}
+
+export async function makeDiskDirectory(
+  parent: string,
+  name: string,
+): Promise<string | null> {
+  if (!canListDirectory) return null;
+  if (!(await isWithinMount(parent))) return null;
+  const path = joinPath(parent, safeBaseName(name));
+  await mkdir(path);
+  return path;
+}
+
+/**
+ * The filesystem returns bytes and a name, never a MIME type, and everything downstream
+ * branches on File.type - an untyped File silently takes every "unknown format" path.
+ */
+const MIME_BY_EXTENSION: Record<string, string> = {
+  pdf: "application/pdf",
+  png: "image/png",
+  jpg: "image/jpeg",
+  jpeg: "image/jpeg",
+  gif: "image/gif",
+  webp: "image/webp",
+  bmp: "image/bmp",
+  svg: "image/svg+xml",
+};
+
+function mimeForName(name: string): string {
+  const ext = name.includes(".") ? name.split(".").pop()!.toLowerCase() : "";
+  return MIME_BY_EXTENSION[ext] ?? "";
+}
+
+export async function readDiskFile(entry: DiskFileEntry): Promise<File | null> {
+  if (!canListDirectory) return null;
+  if (!(await isWithinMount(entry.path))) return null;
+  const bytes = await readFile(entry.path);
+  return new File([new Uint8Array(bytes)], entry.name, {
+    type: mimeForName(entry.name),
+    lastModified: entry.lastModified || undefined,
+  });
+}
+
+/** How many "(n)" suffixes to try before conceding the directory is hostile. */
+const UNIQUE_NAME_ATTEMPTS = 1000;
+
+/**
+ * Names arrive from outside the app - zip entries, Content-Disposition - and this holds
+ * a filesystem-wide write scope.
+ */
+function safeBaseName(name: string): string {
+  const base = name.split(/[\\/]/).pop() ?? "";
+  const trimmed = base.trim();
+  if (trimmed === "" || trimmed === "." || trimmed === "..") return "file";
+  return trimmed;
+}
+
+export async function writeDiskFile(
+  directory: string,
+  name: string,
+  bytes: Blob,
+): Promise<string | null> {
+  if (!canListDirectory) return null;
+  if (!(await isWithinMount(directory))) return null;
+  name = safeBaseName(name);
+  const dot = name.lastIndexOf(".");
+  const base = dot > 0 ? name.slice(0, dot) : name;
+  const ext = dot > 0 ? name.slice(dot) : "";
+  const data = new Uint8Array(await bytes.arrayBuffer());
+  // An existing name keeps its file and the incomer takes " (n)", as the OS does.
+  for (let n = 0; n < UNIQUE_NAME_ATTEMPTS; n++) {
+    const candidate = n === 0 ? name : `${base} (${n})${ext}`;
+    const path = joinPath(directory, candidate);
+    try {
+      await writeFile(path, data, { createNew: true });
+      return candidate;
+    } catch (err) {
+      if (!isAlreadyExists(err)) throw err;
+    }
+  }
+  throw new Error(`No free name for ${name} in ${directory}`);
+}
+
+/** The plugin surfaces OS errors as text: EEXIST is 17, Windows 80 or 183. */
+function isAlreadyExists(err: unknown): boolean {
+  const text = err instanceof Error ? err.message : String(err);
+  return /already exists|file exists|os error (17|80|183)\b/i.test(text);
+}