diff --git a/backend/open_webui/utils/middleware.py b/backend/open_webui/utils/middleware.py
index 6557ccf8bb..003e97e84c 100644
--- a/backend/open_webui/utils/middleware.py
+++ b/backend/open_webui/utils/middleware.py
@@ -23,6 +23,7 @@ from starlette.responses import Response, StreamingResponse
 
 
 from open_webui.models.chats import Chats
+from open_webui.models.folders import Folders
 from open_webui.models.users import Users
 from open_webui.socket.main import (
     get_event_call,
@@ -755,6 +756,26 @@ async def process_chat_payload(request, form_data, user, metadata, model):
     events = []
     sources = []
 
+    # Folder "Project" handling
+    # Check if the request has chat_id and is inside of a folder
+    chat_id = metadata.get("chat_id", None)
+    if chat_id and user:
+        chat = Chats.get_chat_by_id_and_user_id(chat_id, user.id)
+        if chat and chat.folder_id:
+            folder = Folders.get_folder_by_id_and_user_id(chat.folder_id, user.id)
+
+            if folder and folder.data:
+                if "system_prompt" in folder.data:
+                    form_data["messages"] = add_or_update_system_message(
+                        folder.data["system_prompt"], form_data["messages"]
+                    )
+                if "files" in folder.data:
+                    form_data["files"] = [
+                        *folder.data["files"],
+                        *form_data.get("files", []),
+                    ]
+
+    # Model "Knowledge" handling
     user_message = get_last_user_message(form_data["messages"])
     model_knowledge = model.get("info", {}).get("meta", {}).get("knowledge", False)