diff --git a/src/renderer/src/components/right-sidebar/FileExplorer.test.tsx b/src/renderer/src/components/right-sidebar/FileExplorer.test.tsx
index df1557e5bbb..a935331905f 100644
--- a/src/renderer/src/components/right-sidebar/FileExplorer.test.tsx
+++ b/src/renderer/src/components/right-sidebar/FileExplorer.test.tsx
@@ -369,6 +369,8 @@ describe('FileExplorerRow collapse folder action', () => {
       onStartNew: vi.fn(),
       onStartRename: vi.fn(),
       onDuplicate: vi.fn(),
+      onAddFolderAsProject: vi.fn(),
+      canAddFolderAsProject: () => false,
       onRequestDelete: vi.fn(),
       onCollapseFolderSubtree,
       onFindInFolder: vi.fn(),
@@ -418,6 +420,8 @@ describe('FileExplorerRow collapse folder action', () => {
       onStartNew: vi.fn(),
       onStartRename: vi.fn(),
       onDuplicate: vi.fn(),
+      onAddFolderAsProject: vi.fn(),
+      canAddFolderAsProject: () => false,
       onRequestDelete: vi.fn(),
       onCollapseFolderSubtree: vi.fn(),
       onFindInFolder,
diff --git a/src/renderer/src/components/right-sidebar/FileExplorer.tsx b/src/renderer/src/components/right-sidebar/FileExplorer.tsx
index 6809f3cc642..fefd0f4cd6b 100644
--- a/src/renderer/src/components/right-sidebar/FileExplorer.tsx
+++ b/src/renderer/src/components/right-sidebar/FileExplorer.tsx
@@ -1,4 +1,4 @@
-/* eslint-disable max-lines -- File Explorer coordinates tree state, selection, drag/drop, and toolbar actions in one component. */
+/* eslint-disable max-lines -- Why: FileExplorer coordinates tree data, selection, drag/drop, and virtual rows; splitting it during this merge would obscure the interaction invariants. */
 import React, { useCallback, useEffect, useMemo, useRef, useState } from 'react'
 import { useVirtualizer } from '@tanstack/react-virtual'
 import { useAppStore } from '@/store'
@@ -28,9 +28,13 @@ import { useFileExplorerImport } from './useFileExplorerImport'
 import { useFileExplorerManualRefresh } from './useFileExplorerManualRefresh'
 import { useFileExplorerTree } from './useFileExplorerTree'
 import { useFileExplorerWatch } from './useFileExplorerWatch'
+import {
+  buildAddProjectFromFolderModalData,
+  canShowAddAsProjectAction
+} from './file-explorer-add-project-action'
+import type { TreeNode } from './file-explorer-types'
 import { useFileExplorerSelection } from './useFileExplorerSelection'
 import { useFileExplorerGitIgnoredRows } from './useFileExplorerGitIgnoredRows'
-import type { TreeNode } from './file-explorer-types'
 
 function FileExplorerInner(): React.JSX.Element {
   const activeWorktreeId = useAppStore((s) => s.activeWorktreeId)
@@ -49,6 +53,7 @@ function FileExplorerInner(): React.JSX.Element {
   const gitStatusByWorktree = useAppStore((s) => s.gitStatusByWorktree)
   const openFiles = useAppStore((s) => s.openFiles)
   const closeFile = useAppStore((s) => s.closeFile)
+  const openModal = useAppStore((s) => s.openModal)
   const rightSidebarOpen = useAppStore((s) => s.rightSidebarOpen)
 
   const worktreePath = activeWorktree?.path ?? null
@@ -376,6 +381,19 @@ function FileExplorerInner(): React.JSX.Element {
     [activeWorktreeId, seedFileSearchIncludePattern, setRightSidebarTab, setRightSidebarOpen]
   )
 
+  const handleAddFolderAsProject = useCallback(
+    (node: TreeNode) => {
+      if (!activeRepo || !canShowAddAsProjectAction(node, activeRepo)) {
+        return
+      }
+      openModal(
+        'confirm-add-project-from-folder',
+        buildAddProjectFromFolderModalData(node, activeRepo)
+      )
+    },
+    [activeRepo, openModal]
+  )
+
   if (!worktreePath) {
     return (
       <div className="flex h-full items-center justify-center text-[11px] text-muted-foreground px-4 text-center">
@@ -487,6 +505,8 @@ function FileExplorerInner(): React.JSX.Element {
               onStartNew={startNew}
               onStartRename={startRename}
               onDuplicate={handleDuplicate}
+              onAddFolderAsProject={handleAddFolderAsProject}
+              canAddFolderAsProject={(node) => canShowAddAsProjectAction(node, activeRepo)}
               onRequestDelete={handleContextMenuDelete}
               onCollapseFolderSubtree={handleCollapseFolderSubtree}
               onFindInFolder={handleFindInFolder}
diff --git a/src/renderer/src/components/right-sidebar/FileExplorerRow.tsx b/src/renderer/src/components/right-sidebar/FileExplorerRow.tsx
index a9bcd4d32dc..d26f85a4b25 100644
--- a/src/renderer/src/components/right-sidebar/FileExplorerRow.tsx
+++ b/src/renderer/src/components/right-sidebar/FileExplorerRow.tsx
@@ -1,4 +1,4 @@
-/* eslint-disable max-lines -- File Explorer rows own dense context-menu and drag/drop interactions. */
+/* eslint-disable max-lines -- Why: the row owns dense file-tree rendering plus its context menu, drag target, and inline-input sibling contract. */
 import React, { useCallback, useEffect, useRef } from 'react'
 import { basename } from '@/lib/path'
 import {
@@ -252,6 +252,8 @@ type FileExplorerRowProps = {
   onStartNew: (type: 'file' | 'folder', dir: string, depth: number) => void
   onStartRename: (node: TreeNode) => void
   onDuplicate: (node: TreeNode) => void
+  onAddFolderAsProject: () => void
+  canAddAsProject: boolean
   onRequestDelete: () => void
   onCollapseFolderSubtree: () => void
   onFindInFolder: () => void
@@ -292,6 +294,8 @@ export function FileExplorerRow({
   onStartNew,
   onStartRename,
   onDuplicate,
+  onAddFolderAsProject,
+  canAddAsProject,
   onRequestDelete,
   onCollapseFolderSubtree,
   onFindInFolder,
@@ -507,6 +511,12 @@ export function FileExplorerRow({
             Duplicate
           </ContextMenuItem>
         )}
+        {canAddAsProject && (
+          <ContextMenuItem onSelect={onAddFolderAsProject}>
+            <FolderPlus />
+            Add as Project...
+          </ContextMenuItem>
+        )}
         {!node.isDirectory && activeWorktreeId && (
           <ContextMenuItem onSelect={handleOpenInOrcaBrowser}>
             <Globe />
diff --git a/src/renderer/src/components/right-sidebar/FileExplorerVirtualRows.tsx b/src/renderer/src/components/right-sidebar/FileExplorerVirtualRows.tsx
index a7a4878f5b8..0d4cb030725 100644
--- a/src/renderer/src/components/right-sidebar/FileExplorerVirtualRows.tsx
+++ b/src/renderer/src/components/right-sidebar/FileExplorerVirtualRows.tsx
@@ -31,6 +31,8 @@ type FileExplorerVirtualRowsProps = {
   onStartNew: (type: 'file' | 'folder', parentPath: string, depth: number) => void
   onStartRename: (node: TreeNode) => void
   onDuplicate: (node: TreeNode) => void
+  onAddFolderAsProject: (node: TreeNode) => void
+  canAddFolderAsProject: (node: TreeNode) => boolean
   onRequestDelete: (node: TreeNode) => void
   onCollapseFolderSubtree: (node: TreeNode) => void
   onFindInFolder: (node: TreeNode) => void
@@ -69,6 +71,8 @@ export function FileExplorerVirtualRows(props: FileExplorerVirtualRowsProps): Re
     onStartNew,
     onStartRename,
     onDuplicate,
+    onAddFolderAsProject,
+    canAddFolderAsProject,
     onRequestDelete,
     onCollapseFolderSubtree,
     onFindInFolder,
@@ -169,6 +173,8 @@ export function FileExplorerVirtualRows(props: FileExplorerVirtualRowsProps): Re
               onStartNew={onStartNew}
               onStartRename={onStartRename}
               onDuplicate={onDuplicate}
+              onAddFolderAsProject={() => onAddFolderAsProject(n)}
+              canAddAsProject={canAddFolderAsProject(n)}
               onRequestDelete={() => onRequestDelete(n)}
               onCollapseFolderSubtree={() => onCollapseFolderSubtree(n)}
               onFindInFolder={() => onFindInFolder(n)}
diff --git a/src/renderer/src/components/right-sidebar/FileExplorerVirtualRowsAddProject.test.tsx b/src/renderer/src/components/right-sidebar/FileExplorerVirtualRowsAddProject.test.tsx
new file mode 100644
index 00000000000..fc09c441652
--- /dev/null
+++ b/src/renderer/src/components/right-sidebar/FileExplorerVirtualRowsAddProject.test.tsx
@@ -0,0 +1,99 @@
+import { describe, expect, it, vi } from 'vitest'
+import { FileExplorerRow } from './FileExplorerRow'
+import { FileExplorerVirtualRows } from './FileExplorerVirtualRows'
+import type { TreeNode } from './file-explorer-types'
+
+type ReactElementLike = {
+  type: unknown
+  props: Record<string, unknown>
+}
+
+function visit(node: unknown, cb: (node: ReactElementLike) => void): void {
+  if (node == null || typeof node === 'string' || typeof node === 'number') {
+    return
+  }
+  if (Array.isArray(node)) {
+    node.forEach((entry) => visit(entry, cb))
+    return
+  }
+  const element = node as ReactElementLike
+  cb(element)
+  if (element.props?.children) {
+    visit(element.props.children, cb)
+  }
+}
+
+function findFileExplorerRow(node: unknown): ReactElementLike {
+  let found: ReactElementLike | null = null
+  visit(node, (entry) => {
+    if (entry.type === FileExplorerRow) {
+      found = entry
+    }
+  })
+  if (!found) {
+    throw new Error('file explorer row not found')
+  }
+  return found
+}
+
+const directoryNode: TreeNode = {
+  name: 'src',
+  path: '/repo/src',
+  relativePath: 'src',
+  isDirectory: true,
+  depth: 0
+}
+
+describe('FileExplorerVirtualRows add-as-project action', () => {
+  it('passes visibility and the row node to the add-as-project handler', () => {
+    const onAddFolderAsProject = vi.fn()
+    const element = FileExplorerVirtualRows({
+      virtualizer: {
+        getTotalSize: () => 26,
+        getVirtualItems: () => [{ index: 0, key: 'src', start: 0 }],
+        measureElement: vi.fn()
+      } as never,
+      inlineInputIndex: -1,
+      flatRows: [directoryNode],
+      inlineInput: null,
+      handleInlineSubmit: vi.fn(),
+      dismissInlineInput: vi.fn(),
+      folderStatusByRelativePath: new Map(),
+      statusByRelativePath: new Map(),
+      ignoredByRelativePath: new Set(),
+      expanded: new Set([directoryNode.path]),
+      dirCache: {},
+      selectedPaths: new Set(),
+      activeFileId: null,
+      flashingPath: null,
+      deleteShortcutLabel: 'Del',
+      onClick: vi.fn(),
+      onDoubleClick: vi.fn(),
+      onContextMenuSelect: vi.fn(),
+      onCopyPaths: vi.fn(),
+      onStartNew: vi.fn(),
+      onStartRename: vi.fn(),
+      onDuplicate: vi.fn(),
+      onAddFolderAsProject,
+      canAddFolderAsProject: (node) => node.path === directoryNode.path,
+      onRequestDelete: vi.fn(),
+      onCollapseFolderSubtree: vi.fn(),
+      onFindInFolder: vi.fn(),
+      onMoveDrop: vi.fn(),
+      onDragTargetChange: vi.fn(),
+      onDragSourceChange: vi.fn(),
+      onDragExpandDir: vi.fn(),
+      onNativeDragTargetChange: vi.fn(),
+      onNativeDragExpandDir: vi.fn(),
+      dropTargetDir: null,
+      dragSourcePath: null,
+      nativeDropTargetDir: null
+    })
+
+    const row = findFileExplorerRow(element)
+    expect(row.props.canAddAsProject).toBe(true)
+    ;(row.props.onAddFolderAsProject as () => void)()
+
+    expect(onAddFolderAsProject).toHaveBeenCalledWith(directoryNode)
+  })
+})
diff --git a/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.test.ts b/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.test.ts
new file mode 100644
index 00000000000..95fcdeda8b6
--- /dev/null
+++ b/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.test.ts
@@ -0,0 +1,59 @@
+import { describe, expect, it } from 'vitest'
+import type { Repo } from '../../../../shared/types'
+import type { TreeNode } from './file-explorer-types'
+import {
+  buildAddProjectFromFolderModalData,
+  canShowAddAsProjectAction
+} from './file-explorer-add-project-action'
+
+const folderNode: TreeNode = {
+  name: 'child-project',
+  path: '/projects/child-project',
+  relativePath: 'child-project',
+  isDirectory: true,
+  depth: 0
+}
+
+const fileNode: TreeNode = {
+  ...folderNode,
+  name: 'README.md',
+  path: '/projects/README.md',
+  relativePath: 'README.md',
+  isDirectory: false
+}
+
+const folderRepo: Repo = {
+  id: 'folder-repo',
+  path: '/projects',
+  displayName: 'projects',
+  badgeColor: '#000',
+  addedAt: 1,
+  kind: 'folder'
+}
+
+const gitRepo: Repo = {
+  ...folderRepo,
+  id: 'git-repo',
+  kind: 'git'
+}
+
+describe('file explorer add project action', () => {
+  it('shows only for directories in folder-mode projects', () => {
+    expect(canShowAddAsProjectAction(folderNode, folderRepo)).toBe(true)
+    expect(canShowAddAsProjectAction(fileNode, folderRepo)).toBe(false)
+    expect(canShowAddAsProjectAction(folderNode, gitRepo)).toBe(false)
+    expect(canShowAddAsProjectAction(folderNode, null)).toBe(false)
+  })
+
+  it('preserves the selected folder path and active SSH connection', () => {
+    expect(
+      buildAddProjectFromFolderModalData(folderNode, {
+        ...folderRepo,
+        connectionId: 'ssh-target-1'
+      })
+    ).toEqual({
+      folderPath: '/projects/child-project',
+      connectionId: 'ssh-target-1'
+    })
+  })
+})
diff --git a/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.ts b/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.ts
new file mode 100644
index 00000000000..57d317abb6c
--- /dev/null
+++ b/src/renderer/src/components/right-sidebar/file-explorer-add-project-action.ts
@@ -0,0 +1,22 @@
+import { isFolderRepo } from '../../../../shared/repo-kind'
+import type { Repo } from '../../../../shared/types'
+import type { TreeNode } from './file-explorer-types'
+
+export type AddProjectFromFolderModalData = {
+  folderPath: string
+  connectionId?: string
+}
+
+export function canShowAddAsProjectAction(node: TreeNode, activeRepo: Repo | null): boolean {
+  return node.isDirectory && Boolean(activeRepo && isFolderRepo(activeRepo))
+}
+
+export function buildAddProjectFromFolderModalData(
+  node: TreeNode,
+  activeRepo: Repo
+): AddProjectFromFolderModalData {
+  return {
+    folderPath: node.path,
+    ...(activeRepo.connectionId ? { connectionId: activeRepo.connectionId } : {})
+  }
+}
diff --git a/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.test.tsx b/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.test.tsx
new file mode 100644
index 00000000000..0611283ce22
--- /dev/null
+++ b/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.test.tsx
@@ -0,0 +1,234 @@
+import { renderToStaticMarkup } from 'react-dom/server'
+import type * as ReactModule from 'react'
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+import type { Repo, Worktree } from '../../../../shared/types'
+
+type ButtonCapture = {
+  label: string
+  onClick?: () => unknown
+  disabled?: boolean
+}
+
+const mocks = vi.hoisted(() => ({
+  buttons: [] as ButtonCapture[],
+  state: {
+    activeModal: 'confirm-add-project-from-folder',
+    modalData: {} as Record<string, unknown>,
+    closeModal: vi.fn(),
+    openModal: vi.fn(),
+    addRepoPath: vi.fn(),
+    updateRepo: vi.fn(),
+    fetchWorktrees: vi.fn(),
+    openSettingsPage: vi.fn(),
+    openSettingsTarget: vi.fn(),
+    worktreesByRepo: {} as Record<string, Worktree[]>,
+    detectedWorktreesByRepo: {},
+    hideDefaultBranchWorkspace: false,
+    setHideDefaultBranchWorkspace: vi.fn(),
+    clearOrcaHookTrustForRepo: vi.fn(),
+    repos: [] as Repo[]
+  },
+  addRemote: vi.fn(),
+  toastSuccess: vi.fn(),
+  track: vi.fn()
+}))
+
+function textContent(node: ReactModule.ReactNode): string {
+  if (node == null || typeof node === 'boolean') {
+    return ''
+  }
+  if (typeof node === 'string' || typeof node === 'number') {
+    return String(node)
+  }
+  if (Array.isArray(node)) {
+    return node.map(textContent).join('')
+  }
+  if (typeof node === 'object' && 'props' in node) {
+    return textContent((node as { props?: { children?: ReactModule.ReactNode } }).props?.children)
+  }
+  return ''
+}
+
+vi.mock('@/store', () => {
+  const useAppStore = Object.assign(
+    (selector: (state: typeof mocks.state) => unknown) => selector(mocks.state),
+    {
+      getState: () => mocks.state,
+      setState: (next: Partial<typeof mocks.state>) => {
+        Object.assign(mocks.state, next)
+      }
+    }
+  )
+  return { useAppStore }
+})
+
+vi.mock('@/components/ui/dialog', () => ({
+  Dialog: ({ open, children }: { open: boolean; children: ReactModule.ReactNode }) =>
+    open ? <div>{children}</div> : null,
+  DialogContent: ({ children }: { children: ReactModule.ReactNode }) => <div>{children}</div>,
+  DialogDescription: ({ children }: { children: ReactModule.ReactNode }) => <p>{children}</p>,
+  DialogFooter: ({ children }: { children: ReactModule.ReactNode }) => <footer>{children}</footer>,
+  DialogHeader: ({ children }: { children: ReactModule.ReactNode }) => <header>{children}</header>,
+  DialogTitle: ({ children }: { children: ReactModule.ReactNode }) => <h1>{children}</h1>
+}))
+
+vi.mock('@/components/ui/button', () => ({
+  Button: ({
+    children,
+    onClick,
+    disabled
+  }: {
+    children: ReactModule.ReactNode
+    onClick?: () => unknown
+    disabled?: boolean
+  }) => {
+    mocks.buttons.push({ label: textContent(children), onClick, disabled })
+    return (
+      <button disabled={disabled} onClick={onClick}>
+        {children}
+      </button>
+    )
+  }
+}))
+
+vi.mock('@/lib/worktree-activation', () => ({
+  activateAndRevealWorktree: vi.fn()
+}))
+
+vi.mock('@/lib/telemetry', () => ({
+  track: mocks.track
+}))
+
+vi.mock('sonner', () => ({
+  toast: {
+    success: mocks.toastSuccess,
+    error: vi.fn(),
+    info: vi.fn()
+  }
+}))
+
+vi.mock('./AddRepoSetupStep', () => ({
+  SetupStep: ({ repoName }: { repoName: string }) => <div>setup:{repoName}</div>,
+  getProjectAddedPrimaryBranchName: () => 'main'
+}))
+
+function makeRepo(overrides: Partial<Repo> = {}): Repo {
+  return {
+    id: 'repo-1',
+    path: '/projects/child',
+    displayName: 'child',
+    badgeColor: '#999999',
+    addedAt: 1,
+    kind: 'git',
+    ...overrides
+  }
+}
+
+async function clickAddProject(): Promise<void> {
+  const button = mocks.buttons.find((entry) => entry.label.includes('Add Project'))
+  if (!button?.onClick) {
+    throw new Error('Add Project button not found')
+  }
+  await button.onClick()
+}
+
+describe('AddProjectFromFolderDialog', () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+    mocks.buttons = []
+    mocks.state.activeModal = 'confirm-add-project-from-folder'
+    mocks.state.modalData = { folderPath: '/projects/child' }
+    mocks.state.worktreesByRepo = {}
+    mocks.state.detectedWorktreesByRepo = {}
+    mocks.state.hideDefaultBranchWorkspace = false
+    mocks.state.repos = []
+    vi.stubGlobal('window', {
+      api: {
+        repos: {
+          addRemote: mocks.addRemote
+        }
+      }
+    })
+  })
+
+  it('adds a local Git folder and opens the reused setup step data path', async () => {
+    const repo = makeRepo()
+    mocks.state.addRepoPath.mockResolvedValue(repo)
+    const { default: AddProjectFromFolderDialog } = await import('./AddProjectFromFolderDialog')
+
+    renderToStaticMarkup(<AddProjectFromFolderDialog />)
+    await clickAddProject()
+
+    expect(mocks.state.addRepoPath).toHaveBeenCalledWith('/projects/child')
+    expect(mocks.state.fetchWorktrees).toHaveBeenCalledWith(repo.id)
+    expect(mocks.state.openModal).not.toHaveBeenCalledWith(
+      'confirm-non-git-folder',
+      expect.anything()
+    )
+  })
+
+  it('leaves local non-Git folders on the existing Open as Folder confirmation path', async () => {
+    mocks.state.addRepoPath.mockImplementation(async (folderPath: string) => {
+      mocks.state.openModal('confirm-non-git-folder', { folderPath })
+      return null
+    })
+    const { default: AddProjectFromFolderDialog } = await import('./AddProjectFromFolderDialog')
+
+    renderToStaticMarkup(<AddProjectFromFolderDialog />)
+    await clickAddProject()
+
+    expect(mocks.state.addRepoPath).toHaveBeenCalledWith('/projects/child')
+    expect(mocks.state.openModal).toHaveBeenCalledWith('confirm-non-git-folder', {
+      folderPath: '/projects/child'
+    })
+    expect(mocks.state.fetchWorktrees).not.toHaveBeenCalled()
+  })
+
+  it('adds an SSH Git folder through the remote repo import path', async () => {
+    const repo = makeRepo({ id: 'remote-repo', connectionId: 'ssh-target-1' })
+    mocks.state.modalData = {
+      folderPath: '/srv/projects/child',
+      connectionId: 'ssh-target-1'
+    }
+    mocks.addRemote.mockResolvedValue({ repo })
+    const { default: AddProjectFromFolderDialog } = await import('./AddProjectFromFolderDialog')
+
+    renderToStaticMarkup(<AddProjectFromFolderDialog />)
+    await clickAddProject()
+
+    expect(mocks.addRemote).toHaveBeenCalledWith({
+      connectionId: 'ssh-target-1',
+      remotePath: '/srv/projects/child'
+    })
+    expect(mocks.state.repos).toEqual([repo])
+    expect(mocks.state.fetchWorktrees).toHaveBeenCalledWith(repo.id)
+    expect(mocks.toastSuccess).toHaveBeenCalledWith('Remote project added', {
+      description: repo.displayName
+    })
+  })
+
+  it('sends SSH non-Git folders to the Open as Folder confirmation with the connection id', async () => {
+    mocks.state.modalData = {
+      folderPath: '/srv/projects/docs',
+      connectionId: 'ssh-target-1'
+    }
+    mocks.addRemote.mockResolvedValue({
+      error: 'Not a valid git repository: /srv/projects/docs'
+    })
+    const { default: AddProjectFromFolderDialog } = await import('./AddProjectFromFolderDialog')
+
+    renderToStaticMarkup(<AddProjectFromFolderDialog />)
+    await clickAddProject()
+
+    expect(mocks.addRemote).toHaveBeenCalledWith({
+      connectionId: 'ssh-target-1',
+      remotePath: '/srv/projects/docs'
+    })
+    expect(mocks.state.closeModal).toHaveBeenCalled()
+    expect(mocks.state.openModal).toHaveBeenCalledWith('confirm-non-git-folder', {
+      folderPath: '/srv/projects/docs',
+      connectionId: 'ssh-target-1'
+    })
+    expect(mocks.state.fetchWorktrees).not.toHaveBeenCalled()
+  })
+})
diff --git a/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.tsx b/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.tsx
new file mode 100644
index 00000000000..37894afa457
--- /dev/null
+++ b/src/renderer/src/components/sidebar/AddProjectFromFolderDialog.tsx
@@ -0,0 +1,277 @@
+import React, { useCallback, useEffect, useMemo, useState } from 'react'
+import { toast } from 'sonner'
+import { FolderPlus, Loader2 } from 'lucide-react'
+import {
+  Dialog,
+  DialogContent,
+  DialogDescription,
+  DialogFooter,
+  DialogHeader,
+  DialogTitle
+} from '@/components/ui/dialog'
+import { Button } from '@/components/ui/button'
+import { useAppStore } from '@/store'
+import { activateAndRevealWorktree } from '@/lib/worktree-activation'
+import { track } from '@/lib/telemetry'
+import type { Repo } from '../../../../shared/types'
+import { isGitRepoKind } from '../../../../shared/repo-kind'
+import { getProjectAddedPrimaryBranchName, SetupStep } from './AddRepoSetupStep'
+import { finalizeImportedRepoAfterSkip } from './add-repo-skip-finalization'
+import {
+  effectiveExternalWorktreeVisibility,
+  isLegacyRepoForExternalWorktreeVisibility
+} from '../../../../shared/worktree-ownership'
+
+const NON_GIT_REPO_ERROR = 'Not a valid git repository'
+
+const AddProjectFromFolderDialog = React.memo(function AddProjectFromFolderDialog() {
+  const activeModal = useAppStore((s) => s.activeModal)
+  const modalData = useAppStore((s) => s.modalData)
+  const closeModal = useAppStore((s) => s.closeModal)
+  const openModal = useAppStore((s) => s.openModal)
+  const addRepoPath = useAppStore((s) => s.addRepoPath)
+  const updateRepo = useAppStore((s) => s.updateRepo)
+  const fetchWorktrees = useAppStore((s) => s.fetchWorktrees)
+  const openSettingsPage = useAppStore((s) => s.openSettingsPage)
+  const openSettingsTarget = useAppStore((s) => s.openSettingsTarget)
+  const worktreesByRepo = useAppStore((s) => s.worktreesByRepo)
+  const detectedWorktreesByRepo = useAppStore((s) => s.detectedWorktreesByRepo)
+  const setHideDefaultBranchWorkspace = useAppStore((s) => s.setHideDefaultBranchWorkspace)
+
+  const [addedRepo, setAddedRepo] = useState<Repo | null>(null)
+  const [isAdding, setIsAdding] = useState(false)
+  const [error, setError] = useState<string | null>(null)
+
+  const isOpen = activeModal === 'confirm-add-project-from-folder'
+  const folderPath = typeof modalData.folderPath === 'string' ? modalData.folderPath : ''
+  const connectionId = typeof modalData.connectionId === 'string' ? modalData.connectionId : ''
+  const repoId = addedRepo?.id ?? ''
+
+  const worktrees = useMemo(() => {
+    return worktreesByRepo[repoId] ?? []
+  }, [repoId, worktreesByRepo])
+  const detectedResult = repoId ? detectedWorktreesByRepo[repoId] : undefined
+  const hiddenWorktreeCount =
+    detectedResult?.authoritative === true
+      ? detectedResult.worktrees.filter(
+          (worktree) => !worktree.selectedCheckout && worktree.ownership !== 'orca-managed'
+        ).length
+      : 0
+  const otherWorktreesVisible = addedRepo
+    ? effectiveExternalWorktreeVisibility(
+        addedRepo,
+        isLegacyRepoForExternalWorktreeVisibility(addedRepo)
+      ) === 'show'
+    : false
+  const sortedWorktrees = useMemo(() => {
+    return [...worktrees].sort((a, b) => {
+      if (a.lastActivityAt !== b.lastActivityAt) {
+        return b.lastActivityAt - a.lastActivityAt
+      }
+      return a.displayName.localeCompare(b.displayName)
+    })
+  }, [worktrees])
+  const primaryWorktree = useMemo(
+    () => sortedWorktrees.find((worktree) => worktree.isMainWorktree) ?? null,
+    [sortedWorktrees]
+  )
+  const primaryBranchName = getProjectAddedPrimaryBranchName(primaryWorktree)
+
+  useEffect(() => {
+    if (!isOpen) {
+      setAddedRepo(null)
+      setIsAdding(false)
+      setError(null)
+    }
+  }, [isOpen])
+
+  const openNonGitConfirmation = useCallback(() => {
+    closeModal()
+    openModal('confirm-non-git-folder', {
+      folderPath,
+      ...(connectionId ? { connectionId } : {})
+    })
+  }, [closeModal, connectionId, folderPath, openModal])
+
+  const handleConfirm = useCallback(async () => {
+    if (!folderPath || isAdding) {
+      return
+    }
+    setIsAdding(true)
+    setError(null)
+    try {
+      let repo: Repo | null
+      if (connectionId) {
+        const result = await window.api.repos.addRemote({
+          connectionId,
+          remotePath: folderPath
+        })
+        if ('error' in result) {
+          throw new Error(result.error)
+        }
+        repo = result.repo
+        const state = useAppStore.getState()
+        const existingIdx = state.repos.findIndex((r) => r.id === repo?.id)
+        if (existingIdx !== -1) {
+          state.clearOrcaHookTrustForRepo(repo.id)
+          const updated = [...state.repos]
+          updated[existingIdx] = repo
+          useAppStore.setState({ repos: updated })
+        } else {
+          useAppStore.setState({ repos: [...state.repos, repo] })
+        }
+        toast.success('Remote project added', { description: repo.displayName })
+      } else {
+        repo = await addRepoPath(folderPath)
+      }
+
+      if (!repo) {
+        return
+      }
+      if (!isGitRepoKind(repo)) {
+        openNonGitConfirmation()
+        return
+      }
+      setAddedRepo(repo)
+      await fetchWorktrees(repo.id)
+    } catch (err) {
+      const message = err instanceof Error ? err.message : String(err)
+      if (message.includes(NON_GIT_REPO_ERROR)) {
+        openNonGitConfirmation()
+        return
+      }
+      setError(message)
+    } finally {
+      setIsAdding(false)
+    }
+  }, [addRepoPath, connectionId, fetchWorktrees, folderPath, isAdding, openNonGitConfirmation])
+
+  const handleStartPrimaryWorktree = useCallback(() => {
+    if (!primaryWorktree) {
+      return
+    }
+    track('add_repo_setup_step_action', { action: 'open_primary' })
+    closeModal()
+    if (useAppStore.getState().hideDefaultBranchWorkspace) {
+      setHideDefaultBranchWorkspace(false)
+    }
+    activateAndRevealWorktree(primaryWorktree.id)
+  }, [closeModal, primaryWorktree, setHideDefaultBranchWorkspace])
+
+  const handleUseExistingWorktrees = useCallback(async () => {
+    if (!repoId) {
+      return
+    }
+    track('add_repo_setup_step_action', { action: 'open_existing' })
+    if (!otherWorktreesVisible) {
+      const updated = await updateRepo(repoId, { externalWorktreeVisibility: 'show' })
+      if (updated && addedRepo) {
+        setAddedRepo({ ...addedRepo, externalWorktreeVisibility: 'show' })
+      }
+    }
+    closeModal()
+    await fetchWorktrees(repoId)
+    finalizeImportedRepoAfterSkip(useAppStore.getState(), repoId)
+  }, [addedRepo, closeModal, fetchWorktrees, otherWorktreesVisible, repoId, updateRepo])
+
+  const handleCreateWorktree = useCallback(
+    (name?: string) => {
+      if (!repoId) {
+        return
+      }
+      track('add_repo_setup_step_action', { action: 'create_worktree' })
+      closeModal()
+      setTimeout(() => {
+        openModal('new-workspace-composer', {
+          initialRepoId: repoId,
+          ...(name ? { prefilledName: name } : {}),
+          telemetrySource: 'sidebar'
+        })
+      }, 150)
+    },
+    [closeModal, openModal, repoId]
+  )
+
+  const handleConfigureRepo = useCallback(() => {
+    if (!repoId) {
+      return
+    }
+    track('add_repo_setup_step_action', { action: 'configure' })
+    closeModal()
+    openSettingsTarget({ pane: 'repo', repoId })
+    openSettingsPage()
+  }, [closeModal, openSettingsPage, openSettingsTarget, repoId])
+
+  const handleSkip = useCallback(async () => {
+    if (!repoId) {
+      closeModal()
+      return
+    }
+    track('add_repo_setup_step_action', { action: 'skip' })
+    closeModal()
+    await fetchWorktrees(repoId)
+    finalizeImportedRepoAfterSkip(useAppStore.getState(), repoId)
+  }, [closeModal, fetchWorktrees, repoId])
+
+  const handleOpenChange = useCallback(
+    (open: boolean) => {
+      if (!open) {
+        if (addedRepo) {
+          void handleSkip()
+          return
+        }
+        closeModal()
+      }
+    },
+    [addedRepo, closeModal, handleSkip]
+  )
+
+  return (
+    <Dialog open={isOpen} onOpenChange={handleOpenChange}>
+      <DialogContent className="sm:max-w-lg">
+        {addedRepo ? (
+          <SetupStep
+            repoName={addedRepo.displayName}
+            hiddenWorktreeCount={hiddenWorktreeCount}
+            primaryBranchName={primaryBranchName}
+            onStartPrimaryWorktree={handleStartPrimaryWorktree}
+            onUseExistingWorktrees={() => void handleUseExistingWorktrees()}
+            onCreateWorktree={handleCreateWorktree}
+            onConfigureRepo={handleConfigureRepo}
+          />
+        ) : (
+          <>
+            <DialogHeader>
+              <DialogTitle>Add Project</DialogTitle>
+              <DialogDescription>Add this folder as a separate Orca project.</DialogDescription>
+            </DialogHeader>
+
+            {folderPath && (
+              <div className="rounded-md border border-border/70 bg-muted/35 px-3 py-2 text-xs">
+                <div className="break-all font-mono text-muted-foreground">{folderPath}</div>
+              </div>
+            )}
+
+            {error && <p className="text-xs text-destructive">{error}</p>}
+
+            <DialogFooter>
+              <Button variant="outline" onClick={() => handleOpenChange(false)} disabled={isAdding}>
+                Cancel
+              </Button>
+              <Button onClick={handleConfirm} disabled={!folderPath || isAdding}>
+                {isAdding ? (
+                  <Loader2 className="size-4 animate-spin" />
+                ) : (
+                  <FolderPlus className="size-4" />
+                )}
+                Add Project
+              </Button>
+            </DialogFooter>
+          </>
+        )}
+      </DialogContent>
+    </Dialog>
+  )
+})
+
+export default AddProjectFromFolderDialog
diff --git a/src/renderer/src/components/sidebar/index.tsx b/src/renderer/src/components/sidebar/index.tsx
index 0e8da6e6837..f712e820b7f 100644
--- a/src/renderer/src/components/sidebar/index.tsx
+++ b/src/renderer/src/components/sidebar/index.tsx
@@ -11,6 +11,7 @@ import WorktreeMetaDialog from './WorktreeMetaDialog'
 import NonGitFolderDialog from './NonGitFolderDialog'
 import RemoveFolderDialog from './RemoveFolderDialog'
 import AddRepoDialog from './AddRepoDialog'
+import AddProjectFromFolderDialog from './AddProjectFromFolderDialog'
 import ProjectAddedDialog from './ProjectAddedDialog'
 import WorktreeVisibilityDialog from './WorktreeVisibilityDialog'
 import OrcaYamlTrustDialog from './OrcaYamlTrustDialog'
@@ -98,6 +99,7 @@ function Sidebar({
       <NonGitFolderDialog />
       <RemoveFolderDialog />
       <AddRepoDialog />
+      <AddProjectFromFolderDialog />
       <ProjectAddedDialog />
       <WorktreeVisibilityDialog />
       <OrcaYamlTrustDialog />
diff --git a/src/renderer/src/store/slices/ui.ts b/src/renderer/src/store/slices/ui.ts
index 7b4ac2d0c8b..93a2f804ae2 100644
--- a/src/renderer/src/store/slices/ui.ts
+++ b/src/renderer/src/store/slices/ui.ts
@@ -481,6 +481,7 @@ export type UISlice = {
     | 'create-worktree'
     | 'edit-meta'
     | 'delete-worktree'
+    | 'confirm-add-project-from-folder'
     | 'confirm-non-git-folder'
     | 'confirm-remove-folder'
     | 'add-repo'