diff --git a/components/settings/__tests__/folder-settings-role-order.test.tsx b/components/settings/__tests__/folder-settings-role-order.test.tsx
new file mode 100644
index 000000000..348c9b23e
--- /dev/null
+++ b/components/settings/__tests__/folder-settings-role-order.test.tsx
@@ -0,0 +1,72 @@
+import { render, screen, within } from '@testing-library/react';
+import { describe, it, expect, beforeEach, vi } from 'vitest';
+import { FolderSettings } from '../folder-settings';
+import { useEmailStore } from '@/stores/email-store';
+import { useAuthStore } from '@/stores/auth-store';
+import type { Mailbox } from '@/lib/jmap/types';
+
+// #984: the role assignment dropdowns listed folders in raw server order.
+// They must follow the sidebar order the folder tree produces.
+
+vi.mock('../settings-section', async (importOriginal) => ({
+  ...(await importOriginal<typeof import('../settings-section')>()),
+  SettingsSection: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
+}));
+
+function makeMailbox(overrides: Partial<Mailbox>): Mailbox {
+  return {
+    id: 'mb',
+    name: 'Folder',
+    sortOrder: 0,
+    totalEmails: 0,
+    unreadEmails: 0,
+    totalThreads: 0,
+    unreadThreads: 0,
+    myRights: {
+      mayReadItems: true,
+      mayAddItems: true,
+      mayRemoveItems: true,
+      maySetSeen: true,
+      maySetKeywords: true,
+      mayCreateChild: true,
+      mayRename: true,
+      mayDelete: true,
+      maySubmit: true,
+    },
+    isSubscribed: true,
+    isShared: false,
+    ...overrides,
+  } as Mailbox;
+}
+
+describe('FolderSettings role dropdown order (#984)', () => {
+  beforeEach(() => {
+    useAuthStore.setState({ client: null } as never);
+    useEmailStore.setState({
+      // Deliberately unsorted: a child before its parent, a plain folder
+      // before the Inbox, and names out of alphabetical order.
+      mailboxes: [
+        makeMailbox({ id: 'zeta', name: 'Zeta' }),
+        makeMailbox({ id: 'proj-b', name: 'Beta', parentId: 'projects' }),
+        makeMailbox({ id: 'inbox', name: 'Inbox', role: 'inbox' }),
+        makeMailbox({ id: 'projects', name: 'Projects' }),
+        makeMailbox({ id: 'proj-a', name: 'Alpha', parentId: 'projects' }),
+        makeMailbox({ id: 'alpha', name: 'Alpha' }),
+      ],
+      fetchMailboxes: vi.fn(),
+    } as never);
+  });
+
+  it('lists options in folder-tree order, children under their parent', () => {
+    render(<FolderSettings />);
+
+    const selects = screen.getAllByRole('combobox');
+    expect(selects.length).toBeGreaterThan(0);
+    const values = within(selects[0] as HTMLElement)
+      .getAllByRole('option')
+      .map((o) => (o as HTMLOptionElement).value)
+      .filter((v) => v !== '');
+
+    expect(values).toEqual(['inbox', 'alpha', 'projects', 'proj-a', 'proj-b', 'zeta']);
+  });
+});
diff --git a/components/settings/folder-settings.tsx b/components/settings/folder-settings.tsx
index 27c0cd679..7934cc777 100644
--- a/components/settings/folder-settings.tsx
+++ b/components/settings/folder-settings.tsx
@@ -16,7 +16,7 @@ import {
   AlertTriangle, NotebookPen, CalendarClock, BellOff,
   type LucideIcon,
 } from 'lucide-react';
-import { cn, buildMailboxTree, type MailboxNode } from '@/lib/utils';
+import { cn, buildMailboxTree, flattenMailboxTree, type MailboxNode } from '@/lib/utils';
 import {
   flattenVisibleTree, removeSubtree, getProjection, getDropPlan,
   type FlatFolder,
@@ -670,9 +670,13 @@ export function FolderSettings() {
       {/* Standard Folder Roles - advanced section */}
       <SettingsSection title={t('standard_roles')} description={t('standard_roles_description')}>
         {STANDARD_ROLES.map((role) => {
+          // Offer the folders in sidebar order (the built tree: role priority,
+          // then name, children under their parent) rather than raw server
+          // order, so the dropdown reads like the folder list. (#984)
+          const orderedMailboxes = flattenMailboxTree(folderTree);
           // Disambiguate duplicate folder names by appending parent path
           const nameCounts = new Map<string, number>();
-          ownMailboxes.forEach(mb => nameCounts.set(mb.name, (nameCounts.get(mb.name) || 0) + 1));
+          orderedMailboxes.forEach(mb => nameCounts.set(mb.name, (nameCounts.get(mb.name) || 0) + 1));
           const getParentPath = (mb: { parentId?: string; name: string }) => {
             if (!mb.parentId) return '';
             const parent = ownMailboxes.find(p => p.id === mb.parentId);
@@ -686,7 +690,7 @@ export function FolderSettings() {
                 onChange={(value) => handleRoleChange(role, value)}
                 options={[
                   { value: '', label: t('role_none') },
-                  ...ownMailboxes.map(mb => ({
+                  ...orderedMailboxes.map(mb => ({
                     value: mb.id,
                     label: (nameCounts.get(mb.name) || 0) > 1
                       ? `${getParentPath(mb)}${mb.name} (${mb.id.slice(-6)})`