diff --git a/backend/open_webui/config.py b/backend/open_webui/config.py
index ec62c8ba01..54ca0218d7 100644
--- a/backend/open_webui/config.py
+++ b/backend/open_webui/config.py
@@ -1447,6 +1447,10 @@ USER_PERMISSIONS_FEATURES_CODE_INTERPRETER = (
     == "true"
 )
 
+USER_PERMISSIONS_FEATURES_FOLDERS = (
+    os.environ.get("USER_PERMISSIONS_FEATURES_FOLDERS", "True").lower() == "true"
+)
+
 USER_PERMISSIONS_FEATURES_NOTES = (
     os.environ.get("USER_PERMISSIONS_FEATURES_NOTES", "True").lower() == "true"
 )
@@ -1503,12 +1507,15 @@ DEFAULT_USER_PERMISSIONS = {
         "temporary_enforced": USER_PERMISSIONS_CHAT_TEMPORARY_ENFORCED,
     },
     "features": {
+        # General features
         "api_keys": USER_PERMISSIONS_FEATURES_API_KEYS,
+        "folders": USER_PERMISSIONS_FEATURES_FOLDERS,
+        "notes": USER_PERMISSIONS_FEATURES_NOTES,
         "direct_tool_servers": USER_PERMISSIONS_FEATURES_DIRECT_TOOL_SERVERS,
+        # Chat features
         "web_search": USER_PERMISSIONS_FEATURES_WEB_SEARCH,
         "image_generation": USER_PERMISSIONS_FEATURES_IMAGE_GENERATION,
         "code_interpreter": USER_PERMISSIONS_FEATURES_CODE_INTERPRETER,
-        "notes": USER_PERMISSIONS_FEATURES_NOTES,
     },
 }
 
@@ -1518,6 +1525,12 @@ USER_PERMISSIONS = PersistentConfig(
     DEFAULT_USER_PERMISSIONS,
 )
 
+ENABLE_FOLDERS = PersistentConfig(
+    "ENABLE_FOLDERS",
+    "folders.enable",
+    os.environ.get("ENABLE_FOLDERS", "True").lower() == "true",
+)
+
 ENABLE_CHANNELS = PersistentConfig(
     "ENABLE_CHANNELS",
     "channels.enable",
diff --git a/backend/open_webui/main.py b/backend/open_webui/main.py
index af8e670a53..899a3e08e1 100644
--- a/backend/open_webui/main.py
+++ b/backend/open_webui/main.py
@@ -352,6 +352,7 @@ from open_webui.config import (
     ENABLE_API_KEYS,
     ENABLE_API_KEYS_ENDPOINT_RESTRICTIONS,
     API_KEYS_ALLOWED_ENDPOINTS,
+    ENABLE_FOLDERS,
     ENABLE_CHANNELS,
     ENABLE_NOTES,
     ENABLE_COMMUNITY_SHARING,
@@ -767,6 +768,7 @@ app.state.config.WEBHOOK_URL = WEBHOOK_URL
 app.state.config.BANNERS = WEBUI_BANNERS
 
 
+app.state.config.ENABLE_FOLDERS = ENABLE_FOLDERS
 app.state.config.ENABLE_CHANNELS = ENABLE_CHANNELS
 app.state.config.ENABLE_NOTES = ENABLE_NOTES
 app.state.config.ENABLE_COMMUNITY_SHARING = ENABLE_COMMUNITY_SHARING
@@ -1842,6 +1844,7 @@ async def get_app_config(request: Request):
             **(
                 {
                     "enable_direct_connections": app.state.config.ENABLE_DIRECT_CONNECTIONS,
+                    "enable_folders": app.state.config.ENABLE_FOLDERS,
                     "enable_channels": app.state.config.ENABLE_CHANNELS,
                     "enable_notes": app.state.config.ENABLE_NOTES,
                     "enable_web_search": app.state.config.ENABLE_WEB_SEARCH,
diff --git a/backend/open_webui/routers/auths.py b/backend/open_webui/routers/auths.py
index 2a73496f3b..24cbd9a03f 100644
--- a/backend/open_webui/routers/auths.py
+++ b/backend/open_webui/routers/auths.py
@@ -900,6 +900,7 @@ async def get_admin_config(request: Request, user=Depends(get_admin_user)):
         "JWT_EXPIRES_IN": request.app.state.config.JWT_EXPIRES_IN,
         "ENABLE_COMMUNITY_SHARING": request.app.state.config.ENABLE_COMMUNITY_SHARING,
         "ENABLE_MESSAGE_RATING": request.app.state.config.ENABLE_MESSAGE_RATING,
+        "ENABLE_FOLDERS": request.app.state.config.ENABLE_FOLDERS,
         "ENABLE_CHANNELS": request.app.state.config.ENABLE_CHANNELS,
         "ENABLE_NOTES": request.app.state.config.ENABLE_NOTES,
         "ENABLE_USER_WEBHOOKS": request.app.state.config.ENABLE_USER_WEBHOOKS,
@@ -921,6 +922,7 @@ class AdminConfig(BaseModel):
     JWT_EXPIRES_IN: str
     ENABLE_COMMUNITY_SHARING: bool
     ENABLE_MESSAGE_RATING: bool
+    ENABLE_FOLDERS: bool
     ENABLE_CHANNELS: bool
     ENABLE_NOTES: bool
     ENABLE_USER_WEBHOOKS: bool
@@ -945,6 +947,7 @@ async def update_admin_config(
         form_data.API_KEYS_ALLOWED_ENDPOINTS
     )
 
+    request.app.state.config.ENABLE_FOLDERS = form_data.ENABLE_FOLDERS
     request.app.state.config.ENABLE_CHANNELS = form_data.ENABLE_CHANNELS
     request.app.state.config.ENABLE_NOTES = form_data.ENABLE_NOTES
 
@@ -987,6 +990,7 @@ async def update_admin_config(
         "JWT_EXPIRES_IN": request.app.state.config.JWT_EXPIRES_IN,
         "ENABLE_COMMUNITY_SHARING": request.app.state.config.ENABLE_COMMUNITY_SHARING,
         "ENABLE_MESSAGE_RATING": request.app.state.config.ENABLE_MESSAGE_RATING,
+        "ENABLE_FOLDERS": request.app.state.config.ENABLE_FOLDERS,
         "ENABLE_CHANNELS": request.app.state.config.ENABLE_CHANNELS,
         "ENABLE_NOTES": request.app.state.config.ENABLE_NOTES,
         "ENABLE_USER_WEBHOOKS": request.app.state.config.ENABLE_USER_WEBHOOKS,
diff --git a/backend/open_webui/routers/folders.py b/backend/open_webui/routers/folders.py
index 03212bdb7c..fe2bf367bf 100644
--- a/backend/open_webui/routers/folders.py
+++ b/backend/open_webui/routers/folders.py
@@ -46,7 +46,23 @@ router = APIRouter()
 
 
 @router.get("/", response_model=list[FolderNameIdResponse])
-async def get_folders(user=Depends(get_verified_user)):
+async def get_folders(request: Request, user=Depends(get_verified_user)):
+    if request.app.state.config.ENABLE_FOLDERS is False:
+        raise HTTPException(
+            status_code=status.HTTP_403_FORBIDDEN,
+            detail=ERROR_MESSAGES.ACCESS_PROHIBITED,
+        )
+
+    if user.role != "admin" and not has_permission(
+        user.id,
+        "features.folders",
+        request.app.state.config.USER_PERMISSIONS,
+    ):
+        raise HTTPException(
+            status_code=status.HTTP_403_FORBIDDEN,
+            detail=ERROR_MESSAGES.ACCESS_PROHIBITED,
+        )
+
     folders = Folders.get_folders_by_user_id(user.id)
 
     # Verify folder data integrity
diff --git a/backend/open_webui/routers/users.py b/backend/open_webui/routers/users.py
index eddc56d77a..9b30ba8f20 100644
--- a/backend/open_webui/routers/users.py
+++ b/backend/open_webui/routers/users.py
@@ -219,11 +219,13 @@ class ChatPermissions(BaseModel):
 
 class FeaturesPermissions(BaseModel):
     api_keys: bool = False
+    folders: bool = True
+    notes: bool = True
     direct_tool_servers: bool = False
+
     web_search: bool = True
     image_generation: bool = True
     code_interpreter: bool = True
-    notes: bool = True
 
 
 class UserPermissions(BaseModel):
diff --git a/src/lib/components/admin/Settings/General.svelte b/src/lib/components/admin/Settings/General.svelte
index a7b62857c0..d46f37a89f 100644
--- a/src/lib/components/admin/Settings/General.svelte
+++ b/src/lib/components/admin/Settings/General.svelte
@@ -676,6 +676,14 @@
 						<Switch bind:state={adminConfig.ENABLE_MESSAGE_RATING} />
 					</div>
 
+					<div class="mb-2.5 flex w-full items-center justify-between pr-2">
+						<div class=" self-center text-xs font-medium">
+							{$i18n.t('Folders')}
+						</div>
+
+						<Switch bind:state={adminConfig.ENABLE_FOLDERS} />
+					</div>
+
 					<div class="mb-2.5 flex w-full items-center justify-between pr-2">
 						<div class=" self-center text-xs font-medium">
 							{$i18n.t('Notes')} ({$i18n.t('Beta')})
diff --git a/src/lib/components/admin/Users/Groups/EditGroupModal.svelte b/src/lib/components/admin/Users/Groups/EditGroupModal.svelte
index ef97294c96..d105c75d50 100644
--- a/src/lib/components/admin/Users/Groups/EditGroupModal.svelte
+++ b/src/lib/components/admin/Users/Groups/EditGroupModal.svelte
@@ -84,11 +84,12 @@
 		},
 		features: {
 			api_keys: false,
+			folders: true,
+			notes: true,
 			direct_tool_servers: false,
 			web_search: true,
 			image_generation: true,
-			code_interpreter: true,
-			notes: true
+			code_interpreter: true
 		}
 	};
 
diff --git a/src/lib/components/admin/Users/Groups/Permissions.svelte b/src/lib/components/admin/Users/Groups/Permissions.svelte
index 9f0e4ef2e9..892fc6fb03 100644
--- a/src/lib/components/admin/Users/Groups/Permissions.svelte
+++ b/src/lib/components/admin/Users/Groups/Permissions.svelte
@@ -54,11 +54,12 @@
 		},
 		features: {
 			api_keys: false,
+			folders: true,
+			notes: true,
 			direct_tool_servers: false,
 			web_search: true,
 			image_generation: true,
-			code_interpreter: true,
-			notes: true
+			code_interpreter: true
 		}
 	};
 
diff --git a/src/lib/components/layout/Sidebar.svelte b/src/lib/components/layout/Sidebar.svelte
index ad534dab0d..42e2ad8ded 100644
--- a/src/lib/components/layout/Sidebar.svelte
+++ b/src/lib/components/layout/Sidebar.svelte
@@ -63,6 +63,7 @@
 	import Note from '../icons/Note.svelte';
 	import { slide } from 'svelte/transition';
 	import HotkeyHint from '../common/HotkeyHint.svelte';
+	import { key } from 'vega';
 
 	const BREAKPOINT = 768;
 
@@ -90,8 +91,11 @@
 	}
 
 	const initFolders = async () => {
+		if ($config?.features?.enable_folders === false) {
+			return;
+		}
+
 		const folderList = await getFolders(localStorage.token).catch((error) => {
-			toast.error(`${error}`);
 			return [];
 		});
 		_folders.set(folderList.sort((a, b) => b.updated_at - a.updated_at));
@@ -932,7 +936,7 @@
 					</Folder>
 				{/if}
 
-				{#if folders}
+				{#if $config?.features?.enable_folders && ($user?.role === 'admin' || ($user?.permissions?.features?.folders ?? true)) && Object.keys(folders).length > 0}
 					<Folder
 						id="sidebar-folders"
 						className="px-2 mt-0.5"