diff --git a/backend/open_webui/migrations/versions/c69f45358db4_add_folder_table.py b/backend/open_webui/migrations/versions/c69f45358db4_add_folder_table.py
new file mode 100644
index 000000000..016b0d419
--- /dev/null
+++ b/backend/open_webui/migrations/versions/c69f45358db4_add_folder_table.py
@@ -0,0 +1,41 @@
+"""Add folder table
+
+Revision ID: c69f45358db4
+Revises: 3ab32c4b8f59
+Create Date: 2024-10-16 02:02:35.241684
+
+"""
+
+from alembic import op
+import sqlalchemy as sa
+
+revision = "c69f45358db4"
+down_revision = "3ab32c4b8f59"
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    op.create_table(
+        "folder",
+        sa.Column("id", sa.Text(), primary_key=True, nullable=False),
+        sa.Column("parent_id", sa.Text(), nullable=True),
+        sa.Column("user_id", sa.Text(), nullable=True),
+        sa.Column("name", sa.Text(), nullable=False),
+        sa.Column("items", sa.JSON(), nullable=True),
+        sa.Column("meta", sa.JSON(), nullable=True),
+        sa.Column(
+            "created_at", sa.DateTime(), server_default=sa.func.now(), nullable=False
+        ),
+        sa.Column(
+            "updated_at",
+            sa.DateTime(),
+            nullable=False,
+            server_default=sa.func.now(),
+            onupdate=sa.func.now(),
+        ),
+    )
+
+
+def downgrade():
+    op.drop_table("folder")
diff --git a/src/lib/components/layout/Sidebar.svelte b/src/lib/components/layout/Sidebar.svelte
index 1376539f5..ec54e0bc1 100644
--- a/src/lib/components/layout/Sidebar.svelte
+++ b/src/lib/components/layout/Sidebar.svelte
@@ -38,15 +38,11 @@
 	import DeleteConfirmDialog from '$lib/components/common/ConfirmDialog.svelte';
 	import Spinner from '../common/Spinner.svelte';
 	import Loader from '../common/Loader.svelte';
-	import FilesOverlay from '../chat/MessageInput/FilesOverlay.svelte';
 	import AddFilesPlaceholder from '../AddFilesPlaceholder.svelte';
-	import { select } from 'd3-selection';
 	import SearchInput from './Sidebar/SearchInput.svelte';
-	import ChevronDown from '../icons/ChevronDown.svelte';
-	import ChevronUp from '../icons/ChevronUp.svelte';
-	import ChevronRight from '../icons/ChevronRight.svelte';
-	import Collapsible from '../common/Collapsible.svelte';
 	import Folder from '../common/Folder.svelte';
+	import Plus from '../icons/Plus.svelte';
+	import Tooltip from '../common/Tooltip.svelte';
 
 	const BREAKPOINT = 768;
 
@@ -381,7 +377,7 @@
 		<div class="px-2.5 flex justify-between space-x-1 text-gray-600 dark:text-gray-400">
 			<a
 				id="sidebar-new-chat-button"
-				class="flex flex-1 justify-between rounded-xl px-2 h-full hover:bg-gray-100 dark:hover:bg-gray-900 transition"
+				class="flex flex-1 justify-between rounded-lg px-2 h-full hover:bg-gray-100 dark:hover:bg-gray-900 transition"
 				href="/"
 				draggable="false"
 				on:click={async () => {
@@ -425,7 +421,7 @@
 			</a>
 
 			<button
-				class=" cursor-pointer px-2 py-2 flex rounded-xl hover:bg-gray-100 dark:hover:bg-gray-900 transition"
+				class=" cursor-pointer px-2 py-2 flex rounded-lg hover:bg-gray-100 dark:hover:bg-gray-900 transition"
 				on:click={() => {
 					showSidebar.set(!$showSidebar);
 				}}
@@ -452,7 +448,7 @@
 		{#if $user?.role === 'admin'}
 			<div class="px-2.5 flex justify-center text-gray-800 dark:text-gray-200">
 				<a
-					class="flex-grow flex space-x-3 rounded-xl px-2.5 py-2 hover:bg-gray-100 dark:hover:bg-gray-900 transition"
+					class="flex-grow flex space-x-3 rounded-lg px-2.5 py-2 hover:bg-gray-100 dark:hover:bg-gray-900 transition"
 					href="/workspace"
 					on:click={() => {
 						selectedChatId = null;
@@ -493,6 +489,14 @@
 				<div class="absolute z-40 w-full h-full flex justify-center"></div>
 			{/if}
 
+			<div class="absolute z-40 right-4 top-1">
+				<Tooltip content={$i18n.t('New folder')}>
+					<button class="p-1 rounded-lg hover:bg-white/5 transition">
+						<Plus />
+					</button>
+				</Tooltip>
+			</div>
+
 			<SearchInput
 				bind:value={search}
 				on:input={searchDebounceHandler}