diff --git a/frontend/src/lib/components/FolderPicker.svelte b/frontend/src/lib/components/FolderPicker.svelte
index f0ea70fd4a..341b2c741a 100644
--- a/frontend/src/lib/components/FolderPicker.svelte
+++ b/frontend/src/lib/components/FolderPicker.svelte
@@ -1,12 +1,18 @@
 <script lang="ts">
 	import { FolderService } from '$lib/gen'
 	import { workspaceStore, userStore } from '$lib/stores'
-	import { Eye } from 'lucide-svelte'
+	import { Eye, PlusIcon } from 'lucide-svelte'
 	import { Button, Drawer, DrawerContent } from './common'
 	import FolderEditor from './FolderEditor.svelte'
 	import Select from './select/Select.svelte'
+	import TextInput from './text_input/TextInput.svelte'
+	import Label from './Label.svelte'
+	import { tick } from 'svelte'
 
 	let folders: { name: string; write: boolean }[] = $state([])
+	let filterText: string = $state('')
+	let selectOpen: boolean = $state(false)
+	let nameInput: TextInput | undefined = $state()
 	let newFolder: Drawer | null = $state(null)
 	let viewFolder: Drawer | null = $state(null)
 	let newFolderName: string = $state('')
@@ -57,10 +63,12 @@
 		)
 	}
 
-	async function openCreateFolder(name: string) {
-		newFolderName = name
-		await addFolder()
+	async function openCreateFolder() {
+		newFolderName = filterText
+		folderCreated = undefined
 		newFolder?.openDrawer()
+		await tick()
+		nameInput?.focus()
 	}
 
 	async function addFolder() {
@@ -82,12 +90,25 @@
 		}))
 	)
 
+	let noMatchingItems = $derived(
+		filterText &&
+			!selectItems.some((item) => item.label.toLowerCase().includes(filterText.toLowerCase()))
+	)
+
+	function handleSelectKeydown(e: KeyboardEvent) {
+		if (e.key === 'Enter' && selectOpen && noMatchingItems) {
+			e.preventDefault()
+			selectOpen = false
+			openCreateFolder()
+		}
+	}
+
 	loadFolders()
 </script>
 
 <Drawer bind:this={newFolder} name="newFolder" offset={drawerOffset}>
 	<DrawerContent
-		title="Folder {folderCreated ?? ''}"
+		title={folderCreated ? `Folder ${folderCreated}` : 'Create folder'}
 		on:close={() => {
 			newFolder?.closeDrawer()
 			folderCreated = undefined
@@ -95,6 +116,25 @@
 	>
 		{#if folderCreated}
 			<FolderEditor name={folderCreated} />
+		{:else}
+			<div class="flex flex-col gap-4">
+				<Label label="Folder name">
+					<TextInput
+					bind:this={nameInput}
+					bind:value={newFolderName}
+					inputProps={{
+						placeholder: 'folder_name',
+						onkeydown: (e: KeyboardEvent) => {
+							if (e.key === 'Enter' && newFolderName) {
+								e.preventDefault()
+								addFolder()
+							}
+						}
+					}}
+				/>
+				</Label>
+				<Button variant="accent" disabled={!newFolderName} on:click={addFolder}>Create</Button>
+			</div>
 		{/if}
 	</DrawerContent>
 </Drawer>
@@ -105,16 +145,30 @@
 	</DrawerContent>
 </Drawer>
 
-<div class="flex flex-row items-center gap-1 w-full">
+<!-- svelte-ignore a11y_no_static_element_interactions -->
+<div class="flex flex-row items-center gap-1 w-full" onkeydown={handleSelectKeydown}>
 	<Select
 		bind:value={folderName}
+		bind:filterText
+		bind:open={selectOpen}
 		items={selectItems}
 		disabled={disabled || disableEditing}
 		{size}
 		placeholder="Select folder"
-		createText="Create folder"
-		onCreateItem={openCreateFolder}
-	/>
+	>
+		{#snippet bottomSnippet({ close })}
+			<button
+				class="sticky py-2 px-4 w-full text-left text-xs font-semibold text-medium hover:bg-surface-hover flex items-center justify-center gap-2 border-t border-border-light {noMatchingItems ? 'bg-surface-hover' : ''}"
+				onclick={() => {
+					close()
+					openCreateFolder()
+				}}
+			>
+				<PlusIcon class="inline" size={16} />
+				Create folder
+			</button>
+		{/snippet}
+	</Select>
 	<Button
 		title="View folder"
 		variant="subtle"
diff --git a/frontend/src/lib/components/Path.svelte b/frontend/src/lib/components/Path.svelte
index c0eda53c71..85ca9c4271 100644
--- a/frontend/src/lib/components/Path.svelte
+++ b/frontend/src/lib/components/Path.svelte
@@ -406,7 +406,6 @@
 			{#if !hideUser}
 				<div class="block">
 					<ToggleButtonGroup
-						class="mt-0.5"
 						bind:selected={meta.ownerKind}
 						on:selected={(e) => {
 							setDirty()