diff --git a/src/components/Sidebar.tsx b/src/components/Sidebar.tsx
index aa6e0f4..ebe3df6 100644
--- a/src/components/Sidebar.tsx
+++ b/src/components/Sidebar.tsx
@@ -66,6 +66,7 @@ export function Sidebar() {
     null,
   );
   const [editingFolderId, setEditingFolderId] = useState<string | null>(null);
+  const [creatingFolderId, setCreatingFolderId] = useState<string | null>(null);
   const [creatingFeedId, setCreatingFeedId] = useState<string | null>(null);
   const [editingFeedId, setEditingFeedId] = useState<string | null>(null);
   const [activeDragId, setActiveDragId] = useState<string | null>(null);
@@ -169,9 +170,28 @@ export function Sidebar() {
     void persistSidebarStructure();
   }
 
-  async function handleCreateFolder() {
+  async function handleCreateFolder(parentFolderId: string | null = null) {
     const folder = await createRootFolder();
+    setCreatingFolderId(folder.id);
+
+    if (!parentFolderId) {
+      setEditingFolderId(folder.id);
+      return;
+    }
+
+    const nextFolders = [
+      ...folders,
+      {
+        ...folder,
+        parentFolderId,
+        sortOrder: folders.filter((item) => item.parentFolderId === parentFolderId).length,
+      },
+    ];
+
+    setSidebarStructure(nextFolders, feeds);
+    setFolderExpanded(parentFolderId, true);
     setEditingFolderId(folder.id);
+    await persistSidebarStructure();
   }
 
   async function handleCreateFeed(folderId: string | null = null) {
@@ -246,12 +266,20 @@ export function Sidebar() {
   async function handleCommitFolderRename(folderId: string, name: string) {
     try {
       await renameFolder(folderId, name);
+      setCreatingFolderId(null);
       setEditingFolderId(null);
     } catch {
+      setCreatingFolderId(null);
       setEditingFolderId(null);
     }
   }
 
+  async function handleCancelCreateFolder(folderId: string) {
+    setCreatingFolderId(null);
+    setEditingFolderId(null);
+    await removeFolder(folderId);
+  }
+
   async function handleDeleteFolder(folderId: string) {
     const deletedFolderIds = [folderId, ...getDescendantFolderIds(folders, folderId)];
     const deletedFeedIds = feeds
@@ -406,13 +434,16 @@ export function Sidebar() {
                   }
                   onSelectFeed={(feedId) => setCurrentRoute(ROUTE.FEED, { feedId })}
                   onCreateFeed={handleCreateFeed}
+                  onCreateFolder={handleCreateFolder}
                   editingFolderId={editingFolderId}
+                  creatingFolderId={creatingFolderId}
                   creatingFeedId={creatingFeedId}
                   editingFeedId={editingFeedId}
                   pendingDeleteFolderId={pendingDeleteFolderId}
                   onCommitFolderRename={handleCommitFolderRename}
                   onCommitFeedRename={handleCommitFeedRename}
                   onCancelFolderRename={() => setEditingFolderId(null)}
+                  onCancelCreateFolder={handleCancelCreateFolder}
                   onCancelFeedRename={() => setEditingFeedId(null)}
                   onStartFolderRename={(folderId) => setEditingFolderId(folderId)}
                   onStartFeedRename={(feedId) => setEditingFeedId(feedId)}
@@ -468,13 +499,16 @@ function SidebarTreeContext({
   onSelectFolder,
   onSelectFeed,
   onCreateFeed,
+  onCreateFolder,
   editingFolderId,
+  creatingFolderId,
   creatingFeedId,
   editingFeedId,
   pendingDeleteFolderId,
   onCommitFolderRename,
   onCommitFeedRename,
   onCancelFolderRename,
+  onCancelCreateFolder,
   onCancelFeedRename,
   onStartFolderRename,
   onStartFeedRename,
@@ -499,7 +533,9 @@ function SidebarTreeContext({
   onSelectFolder: (folderId: string) => void;
   onSelectFeed: (feedId: string) => void;
   onCreateFeed: (folderId?: string | null) => void | Promise<void>;
+  onCreateFolder: (parentFolderId?: string | null) => void | Promise<void>;
   editingFolderId: string | null;
+  creatingFolderId: string | null;
   creatingFeedId: string | null;
   editingFeedId: string | null;
   pendingDeleteFolderId: string | null;
@@ -509,6 +545,7 @@ function SidebarTreeContext({
   ) => void | Promise<void>;
   onCommitFeedRename: (feedId: string, title: string) => void | Promise<void>;
   onCancelFolderRename: () => void;
+  onCancelCreateFolder: (folderId: string) => void | Promise<void>;
   onCancelFeedRename: () => void;
   onStartFolderRename: (folderId: string) => void;
   onStartFeedRename: (feedId: string) => void;
@@ -600,6 +637,7 @@ function SidebarTreeContext({
               isActive={isActive}
               isDropTarget={activeDropFolderId === node.id}
               dropInsideZoneId={buildFolderRowDropZoneId(node.id)}
+              isCreating={creatingFolderId === node.id}
               isEditing={editingFolderId === node.id}
               onToggle={() => onToggleFolder(node.id)}
               onClick={(event) => {
@@ -615,10 +653,12 @@ function SidebarTreeContext({
                 onSelectFolder(node.id);
               }}
               onContextMenuCreateFeed={() => void onCreateFeed(node.id)}
+              onContextMenuCreateFolder={() => void onCreateFolder(node.id)}
               onContextMenuRename={() => onStartFolderRename(node.id)}
               onContextMenuDelete={() => onRequestDeleteFolder(node.id)}
               onCommitRename={(name) => onCommitFolderRename(node.id, name)}
               onCancelRename={onCancelFolderRename}
+              onCancelCreate={() => onCancelCreateFolder(node.id)}
               deleteConfirmationMessage={deleteConfirmationMessage}
               onCancelDelete={onCancelDeleteFolder}
               onConfirmDelete={() => void onConfirmDeleteFolder(node.id)}
@@ -639,13 +679,16 @@ function SidebarTreeContext({
                 onSelectFolder={onSelectFolder}
                 onSelectFeed={onSelectFeed}
                 onCreateFeed={onCreateFeed}
+                onCreateFolder={onCreateFolder}
                 editingFolderId={editingFolderId}
+                creatingFolderId={creatingFolderId}
                 creatingFeedId={creatingFeedId}
                 editingFeedId={editingFeedId}
                 pendingDeleteFolderId={pendingDeleteFolderId}
                 onCommitFolderRename={onCommitFolderRename}
                 onCommitFeedRename={onCommitFeedRename}
                 onCancelFolderRename={onCancelFolderRename}
+                onCancelCreateFolder={onCancelCreateFolder}
                 onCancelFeedRename={onCancelFeedRename}
                 onStartFolderRename={onStartFolderRename}
                 onStartFeedRename={onStartFeedRename}
diff --git a/src/components/SidebarFolderItem.tsx b/src/components/SidebarFolderItem.tsx
index 5c4753f..48c5b7e 100644
--- a/src/components/SidebarFolderItem.tsx
+++ b/src/components/SidebarFolderItem.tsx
@@ -19,14 +19,17 @@ type SidebarFolderItemProps = {
   isActive?: boolean;
   isDropTarget?: boolean;
   dropInsideZoneId?: string;
+  isCreating?: boolean;
   isEditing?: boolean;
   onClick?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  onContextMenuCreateFolder?: () => void;
   onContextMenuCreateFeed?: () => void;
   onContextMenuRename?: () => void;
   onContextMenuDelete?: () => void;
   onToggle?: () => void;
   onCommitRename?: (name: string) => void | Promise<void>;
   onCancelRename?: () => void;
+  onCancelCreate?: () => void | Promise<void>;
   deleteConfirmationMessage?: string | null;
   onCancelDelete?: () => void;
   onConfirmDelete?: () => void;
@@ -40,14 +43,17 @@ export function SidebarFolderItem({
   isActive,
   isDropTarget,
   dropInsideZoneId,
+  isCreating,
   isEditing,
   onClick,
+  onContextMenuCreateFolder,
   onContextMenuCreateFeed,
   onContextMenuRename,
   onContextMenuDelete,
   onToggle,
   onCommitRename,
   onCancelRename,
+  onCancelCreate,
   deleteConfirmationMessage,
   onCancelDelete,
   onConfirmDelete,
@@ -65,19 +71,24 @@ export function SidebarFolderItem({
   }, [label]);
 
   useEffect(() => {
-    if (!isEditing) {
+    if (!isCreating && !isEditing) {
       return;
     }
 
     inputRef.current?.focus();
     inputRef.current?.select();
-  }, [isEditing]);
+  }, [isCreating, isEditing]);
 
   function handleCommit() {
     void onCommitRename?.(draftName);
   }
 
   const contextMenuItems = [
+    {
+      id: `${id}:new-folder`,
+      text: "New folder",
+      onSelect: onContextMenuCreateFolder,
+    },
     {
       id: `${id}:new-feed`,
       text: "New feed",
@@ -112,12 +123,12 @@ export function SidebarFolderItem({
             : "",
         )}
         style={{ paddingLeft: 10 + depth * 13 }}
-        {...(isEditing ? {} : attributes)}
-        {...(isEditing ? {} : listeners)}
+        {...(isCreating || isEditing ? {} : attributes)}
+        {...(isCreating || isEditing ? {} : listeners)}
         onClick={onClick}
         onDoubleClick={onToggle}
         onContextMenu={
-          isEditing
+          isCreating || isEditing
             ? undefined
             : (event) => {
                 void showNativeContextMenu(event, contextMenuItems);
@@ -148,7 +159,7 @@ export function SidebarFolderItem({
               <FolderIcon className="size-4" />
             )}
           </span>
-          {isEditing ? (
+          {isCreating || isEditing ? (
             <input
               ref={inputRef}
               value={draftName}
@@ -164,6 +175,11 @@ export function SidebarFolderItem({
                 if (event.key === "Escape") {
                   event.preventDefault();
                   setDraftName(label);
+                  if (isCreating) {
+                    void onCancelCreate?.();
+                    return;
+                  }
+
                   onCancelRename?.();
                 }
               }}