diff --git a/packages/extension/src/testTree.ts b/packages/extension/src/testTree.ts
index d725f43..e067b5f 100644
--- a/packages/extension/src/testTree.ts
+++ b/packages/extension/src/testTree.ts
@@ -192,6 +192,20 @@ export class TestTree extends vscode.Disposable {
       return cached
     }
 
+    // Check if we've reached the workspace folder boundary
+    const workspaceFolderPath = normalize(api.workspaceFolder.uri.fsPath)
+    if (normalizedFolder === workspaceFolderPath) {
+      // Return the workspace folder item instead of creating a new one
+      const workspaceItem = this.folderItems.get(workspaceFolderPath)
+      if (workspaceItem) {
+        if (!workspaceItem.tags.includes(api.tag))
+          workspaceItem.tags = [...workspaceItem.tags, api.tag]
+        return workspaceItem
+      }
+      // If workspace folder item doesn't exist, throw an error
+      throw new Error(`Fatal Error: Workspace folder item not found for "${workspaceFolderPath}".`)
+    }
+
     const parent = dirname(normalizedFolder)
     // If the parent is the same as the folder, we are at the root
     if (parent === normalizedFolder) {
diff --git a/tsconfig.tsbuildinfo b/tsconfig.tsbuildinfo
index ceda590..74aeba3 100644
--- a/tsconfig.tsbuildinfo
+++ b/tsconfig.tsbuildinfo
@@ -1 +1 @@
-{"root":["./debug-shims.d.ts","./packages/extension/src/api.ts","./packages/extension/src/config.ts","./packages/extension/src/constants.ts","./packages/extension/src/coverage.ts","./packages/extension/src/debug.ts","./packages/extension/src/diagnostic.ts","./packages/extension/src/extension.ts","./packages/extension/src/log.ts","./packages/extension/src/polyfills.ts","./packages/extension/src/runner.ts","./packages/extension/src/tagsmanager.ts","./packages/extension/src/testtree.ts","./packages/extension/src/testtreedata.ts","./packages/extension/src/utils.ts","./packages/extension/src/watcher.ts","./packages/extension/src/api/child_process.ts","./packages/extension/src/api/pkg.ts","./packages/extension/src/api/resolve.ts","./packages/extension/src/api/rpc.ts","./packages/extension/src/api/terminal.ts","./packages/extension/src/api/types.ts","./packages/extension/src/api/ws.ts","./packages/extension/src/worker/index.ts","./packages/extension/src/worker/setupfile.ts","./packages/shared/src/emitter.ts","./packages/shared/src/index.ts","./packages/shared/src/rpc.ts","./packages/shared/src/utils.ts","./packages/worker/src/coverage.ts","./packages/worker/src/index.ts","./packages/worker/src/reporter.ts","./packages/worker/src/runner.ts","./packages/worker/src/watcher.ts","./packages/worker/src/worker.ts","./packages/worker-legacy/src/collect.ts","./packages/worker-legacy/src/coverage.ts","./packages/worker-legacy/src/index.ts","./packages/worker-legacy/src/reporter.ts","./packages/worker-legacy/src/types.ts","./packages/worker-legacy/src/watcher.ts","./packages/worker-legacy/src/worker.ts"],"version":"5.8.3"}
\ No newline at end of file
+{"root":["./debug-shims.d.ts","./packages/extension/src/api.ts","./packages/extension/src/config.ts","./packages/extension/src/constants.ts","./packages/extension/src/coverage.ts","./packages/extension/src/debug.ts","./packages/extension/src/diagnostic.ts","./packages/extension/src/extension.ts","./packages/extension/src/log.ts","./packages/extension/src/polyfills.ts","./packages/extension/src/runner.ts","./packages/extension/src/tagsManager.ts","./packages/extension/src/testTree.ts","./packages/extension/src/testTreeData.ts","./packages/extension/src/utils.ts","./packages/extension/src/watcher.ts","./packages/extension/src/api/child_process.ts","./packages/extension/src/api/pkg.ts","./packages/extension/src/api/resolve.ts","./packages/extension/src/api/rpc.ts","./packages/extension/src/api/terminal.ts","./packages/extension/src/api/types.ts","./packages/extension/src/api/ws.ts","./packages/extension/src/worker/browserSetupFile.ts","./packages/extension/src/worker/index.ts","./packages/shared/src/emitter.ts","./packages/shared/src/index.ts","./packages/shared/src/rpc.ts","./packages/shared/src/utils.ts","./packages/worker/src/coverage.ts","./packages/worker/src/index.ts","./packages/worker/src/reporter.ts","./packages/worker/src/runner.ts","./packages/worker/src/watcher.ts","./packages/worker/src/worker.ts","./packages/worker-legacy/src/collect.ts","./packages/worker-legacy/src/coverage.ts","./packages/worker-legacy/src/index.ts","./packages/worker-legacy/src/reporter.ts","./packages/worker-legacy/src/setupFile.ts","./packages/worker-legacy/src/types.ts","./packages/worker-legacy/src/watcher.ts","./packages/worker-legacy/src/worker.ts"],"version":"5.8.3"}
\ No newline at end of file