diff --git a/frontend/src/lib/components/FolderPicker.svelte b/frontend/src/lib/components/FolderPicker.svelte
index da4a7f3b06..206e02f825 100644
--- a/frontend/src/lib/components/FolderPicker.svelte
+++ b/frontend/src/lib/components/FolderPicker.svelte
@@ -1,7 +1,7 @@
 <script lang="ts">
 	import { FolderService } from '$lib/gen'
 	import { workspaceStore, userStore } from '$lib/stores'
-	import { Eye, PlusIcon } from 'lucide-svelte'
+	import { Pen, PlusIcon } from 'lucide-svelte'
 	import { Button, Drawer, DrawerContent } from './common'
 	import FolderEditor from './FolderEditor.svelte'
 	import Select from './select/Select.svelte'
@@ -23,6 +23,7 @@
 	let folderCreated: string | undefined = $state(undefined)
 	let creating: boolean = $state(false)
 	let loadingFolders: boolean = $state(true)
+	let editingFolder: string = $state('')
 
 	type Props = {
 		folderName: string
@@ -42,6 +43,8 @@
 		drawerOffset = 0
 	}: Props = $props()
 
+	let hovering = $state(false)
+
 	async function loadFolders(): Promise<void> {
 		loadingFolders = true
 		try {
@@ -93,11 +96,16 @@
 				requestBody: { name: newFolderName }
 			})
 			folderCreated = newFolderName
-			if ($userStore) {
-				$userStore.folders = [...($userStore.folders ?? []), newFolderName]
-			}
 			await loadFolders()
 			folderName = newFolderName
+
+			// Writing $userStore.folders = [...] would call userStore.set(),
+			// which re-triggers Path.svelte's $effect.pre and calls initPath()/reset(),
+			// switching the owner toggle from "Folder" back to "User".
+			if ($userStore) {
+				if (!$userStore.folders) $userStore.folders = []
+				$userStore.folders.push(newFolderName)
+			}
 		} catch (e) {
 			sendUserToast(`Could not create folder: ${e}`, true)
 		} finally {
@@ -172,7 +180,7 @@
 					variant="accent"
 					disabled={!newFolderName || !!nameError || creating}
 					loading={creating}
-					on:click={addFolder}
+					onClick={addFolder}
 				>
 					Create
 				</Button>
@@ -182,13 +190,20 @@
 </Drawer>
 
 <Drawer bind:this={viewFolder} offset={drawerOffset}>
-	<DrawerContent title="Folder {folderName}" on:close={viewFolder.closeDrawer}>
-		<FolderEditor name={folderName ?? ''} />
+	<DrawerContent title="Folder {editingFolder}" on:close={viewFolder.closeDrawer}>
+		<FolderEditor name={editingFolder} />
 	</DrawerContent>
 </Drawer>
 
 <!-- svelte-ignore a11y_no_static_element_interactions -->
-<div class="flex flex-row items-center gap-1 w-full" onkeydown={handleSelectKeydown}>
+<!-- svelte-ignore a11y_no_noninteractive_element_interactions -->
+<div
+	class="flex flex-row w-full items-center relative"
+	role="group"
+	onkeydown={handleSelectKeydown}
+	onmouseenter={() => (hovering = true)}
+	onmouseleave={() => (hovering = false)}
+>
 	<Select
 		bind:value={folderName}
 		bind:filterText
@@ -198,7 +213,24 @@
 		loading={loadingFolders}
 		{size}
 		placeholder="Select folder"
+		class="grow min-w-0"
 	>
+		{#snippet endSnippet({ item, close })}
+			<Button
+				disabled={disabled || disableEditing}
+				variant="subtle"
+				unifiedSize="xs"
+				wrapperClasses="-mr-2 pl-1 -my-2"
+				btnClasses="hover:bg-surface-tertiary"
+				onClick={() => {
+					editingFolder = item.value ?? ''
+					viewFolder?.openDrawer()
+					close()
+				}}
+				startIcon={{ icon: Pen }}
+				iconOnly
+			/>
+		{/snippet}
 		{#snippet bottomSnippet({ close })}
 			<button
 				class="sticky py-2 px-4 w-full text-left text-xs font-medium hover:bg-surface-hover flex items-center justify-center gap-2 border-t border-border-light {noMatchingItems
@@ -214,13 +246,20 @@
 			</button>
 		{/snippet}
 	</Select>
-	<Button
-		title="View folder"
-		variant="subtle"
-		unifiedSize={size}
-		disabled={!folderName || folderName == ''}
-		on:click={viewFolder.openDrawer}
-		iconOnly
-		startIcon={{ icon: Eye }}
-	/>
+	{#if folderName && hovering && !loadingFolders && !disabled && !disableEditing}
+		<div class="absolute right-2 z-20">
+			<Button
+				variant="subtle"
+				unifiedSize="xs"
+				wrapperClasses="pl-1"
+				btnClasses="hover:bg-surface-tertiary"
+				onClick={() => {
+					editingFolder = folderName
+					viewFolder?.openDrawer()
+				}}
+				startIcon={{ icon: Pen }}
+				iconOnly
+			/>
+		</div>
+	{/if}
 </div>