diff --git a/apps/server/AliasVault.Client/Main/Pages/Items/AddEdit.razor b/apps/server/AliasVault.Client/Main/Pages/Items/AddEdit.razor
index 59881c3a0..443627fc2 100644
--- a/apps/server/AliasVault.Client/Main/Pages/Items/AddEdit.razor
+++ b/apps/server/AliasVault.Client/Main/Pages/Items/AddEdit.razor
@@ -468,12 +468,9 @@ else
     {
         await base.OnInitializedAsync();
 
-        if (EditMode)
-        {
-            BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["ViewItemBreadcrumb"], Url = $"/items/{Id}" });
-            BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["EditItemBreadcrumb"] });
-        }
-        else
+        // In edit mode, we'll build breadcrumbs after loading the item in LoadExistingCredential
+        // so we can include folder breadcrumbs
+        if (!EditMode)
         {
             BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["AddNewItemBreadcrumb"] });
         }
@@ -903,6 +900,15 @@ else
 
         Obj = ItemEdit.FromEntity(item);
 
+        // Build breadcrumbs with folder hierarchy
+        if (Obj.FolderId.HasValue)
+        {
+            await BuildFolderBreadcrumbsAsync(Obj.FolderId.Value);
+        }
+
+        BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["ViewItemBreadcrumb"], Url = $"/items/{Id}" });
+        BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["EditItemBreadcrumb"] });
+
         // Track initially visible fields
         foreach (var fieldDef in SystemFieldRegistry.GetFieldsForItemType(Obj.ItemType))
         {
diff --git a/apps/server/AliasVault.Client/Main/Pages/Items/Delete.razor b/apps/server/AliasVault.Client/Main/Pages/Items/Delete.razor
index 412af1364..4ff4bfca6 100644
--- a/apps/server/AliasVault.Client/Main/Pages/Items/Delete.razor
+++ b/apps/server/AliasVault.Client/Main/Pages/Items/Delete.razor
@@ -54,8 +54,7 @@ else
     protected override async Task OnInitializedAsync()
     {
         await base.OnInitializedAsync();
-        BreadcrumbItems.Add(new BreadcrumbItem { Url = "items/" + Id, DisplayName = Localizer["ViewItemBreadcrumb"] });
-        BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["DeleteItemBreadcrumb"] });
+        // Breadcrumb items will be added after loading the item in OnAfterRenderAsync
     }
 
     /// <inheritdoc />
@@ -68,6 +67,15 @@ else
             // Load existing Obj, retrieve from service
             Obj = await ItemService.LoadEntryAsync(Id);
 
+            // Build breadcrumbs with folder hierarchy
+            if (Obj?.FolderId.HasValue == true)
+            {
+                await BuildFolderBreadcrumbsAsync(Obj.FolderId.Value);
+            }
+
+            BreadcrumbItems.Add(new BreadcrumbItem { Url = "items/" + Id, DisplayName = Localizer["ViewItemBreadcrumb"] });
+            BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["DeleteItemBreadcrumb"] });
+
             // Hide loading spinner
             IsLoading = false;
 
diff --git a/apps/server/AliasVault.Client/Main/Pages/Items/Home.razor b/apps/server/AliasVault.Client/Main/Pages/Items/Home.razor
index ada9931fb..92c9f0993 100644
--- a/apps/server/AliasVault.Client/Main/Pages/Items/Home.razor
+++ b/apps/server/AliasVault.Client/Main/Pages/Items/Home.razor
@@ -2,12 +2,14 @@
 @page "/items/folder/{FolderId:guid}"
 @inherits MainBase
 @inject ItemService ItemService
-@inject FolderService FolderService
 @using AliasVault.RazorComponents.Tables
+@using AliasVault.RazorComponents.Models
 @using AliasVault.Client.Main.Models
 @using AliasVault.Client.Main.Components.Items
 @using AliasClientDb.Models
 @using AliasVault.Client.Main.Components.Folders
+@using AliasVault.Client.Main.Utilities
+@using AliasClientDb
 @using Microsoft.Extensions.Localization
 @implements IAsyncDisposable
 
@@ -183,27 +185,30 @@ else
             </div>
         }
 
-        @* Folders section - only show at root level when ShowFolders is enabled *@
-        @if (!IsInFolder && !IsSearching && ShowFolders)
+        @* Folders section - show at root OR inside folders to display subfolders *@
+        @if (!IsSearching && ShowFolders)
         {
             <div class="flex flex-wrap items-center gap-2 mb-4">
-                @foreach (var folder in Folders)
+                @foreach (var folder in CurrentLevelFolders)
                 {
                     <FolderPill Folder="@folder" OnClick="() => NavigateToFolder(folder.Id)" />
                 }
-                <button @onclick="ShowCreateFolderModal" class="@GetAddFolderButtonClass()">
-                    <svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2">
-                        <path stroke-linecap="round" stroke-linejoin="round" d="M3 7v10a2 2 0 002 2h14a2 2 0 002-2V9a2 2 0 00-2-2h-6l-2-2H5a2 2 0 00-2 2z" />
-                    </svg>
-                    <svg class="w-3.5 h-3.5 -ml-0.5" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2.5">
-                        <line x1="12" y1="5" x2="12" y2="19" />
-                        <line x1="5" y1="12" x2="19" y2="12" />
-                    </svg>
-                    @if (Folders.Count == 0)
-                    {
-                        <span>@Localizer["NewFolder"]</span>
-                    }
-                </button>
+                @if (CanCreateSubfolder)
+                {
+                    <button @onclick="ShowCreateFolderModal" class="@GetAddFolderButtonClass()">
+                        <svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2">
+                            <path stroke-linecap="round" stroke-linejoin="round" d="M3 7v10a2 2 0 002 2h14a2 2 0 002-2V9a2 2 0 00-2-2h-6l-2-2H5a2 2 0 00-2 2z" />
+                        </svg>
+                        <svg class="w-3.5 h-3.5 -ml-0.5" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2.5">
+                            <line x1="12" y1="5" x2="12" y2="19" />
+                            <line x1="5" y1="12" x2="19" y2="12" />
+                        </svg>
+                        @if (CurrentLevelFolders.Count == 0)
+                        {
+                            <span>@Localizer["NewFolder"]</span>
+                        }
+                    </button>
+                }
             </div>
         }
 
@@ -339,10 +344,49 @@ else
     private List<ItemListEntry> Items { get; set; } = new();
 
     /// <summary>
-    /// Gets or sets the folders.
+    /// Gets or sets all folders in the system.
     /// </summary>
     private List<FolderWithCount> Folders { get; set; } = new();
 
+    /// <summary>
+    /// Gets all folders as Folder entities (for breadcrumb path computation).
+    /// </summary>
+    private List<Folder> AllFolders => Folders.Select(f => new Folder
+    {
+        Id = f.Id,
+        Name = f.Name,
+        ParentFolderId = f.ParentFolderId,
+        Weight = f.Weight
+    }).ToList();
+
+    /// <summary>
+    /// Gets the folders to display at the current level (root folders if not in folder, subfolders if in folder).
+    /// </summary>
+    private List<FolderWithCount> CurrentLevelFolders =>
+        Folders.Where(f => f.ParentFolderId == FolderId).ToList();
+
+    /// <summary>
+    /// Gets whether we can create a subfolder at the current level.
+    /// Returns true if at root, or if current folder is not at max depth.
+    /// </summary>
+    private bool CanCreateSubfolder
+    {
+        get
+        {
+            if (!IsInFolder)
+            {
+                return true; // Can always create folders at root
+            }
+
+            if (!FolderId.HasValue || AllFolders.Count == 0)
+            {
+                return false;
+            }
+
+            return FolderTreeUtilities.CanHaveSubfolders(FolderId.Value, AllFolders);
+        }
+    }
+
     /// <summary>
     /// Gets or sets the current folder name (when in folder view).
     /// </summary>
@@ -765,11 +809,13 @@ else
     }
 
     /// <summary>
-    /// Create a new folder.
+    /// Create a new folder. If inside a folder, creates as subfolder.
     /// </summary>
     private async Task CreateFolderAsync(string folderName)
     {
-        var folderId = await FolderService.CreateAsync(folderName);
+        // Use current folder as parent if we're inside a folder, otherwise null for root
+        var parentFolderId = IsInFolder ? FolderId : null;
+        var folderId = await FolderService.CreateAsync(folderName, parentFolderId);
         if (folderId != Guid.Empty)
         {
             // Reload folders
@@ -892,15 +938,21 @@ else
         var storedShowFolders = await LocalStorage.GetItemAsync<bool?>(ShowFoldersStorageKey);
         ShowFolders = storedShowFolders ?? true;
 
-        // Load folder name if in folder view
+        // Load folder name and build breadcrumbs if in folder view
         if (FolderId.HasValue)
         {
             var folder = await FolderService.GetByIdAsync(FolderId.Value);
             CurrentFolderName = folder?.Name ?? string.Empty;
+
+            // Build breadcrumbs for folder hierarchy using shared helper
+            BreadcrumbItems.RemoveAll(b => !b.ShowHomeIcon);
+            AddFolderBreadcrumbs(FolderId, AllFolders, Localizer["Items"], includeCurrentFolder: true);
         }
         else
         {
             CurrentFolderName = string.Empty;
+            // Clear breadcrumbs at root level (only show Home from base class)
+            BreadcrumbItems.RemoveAll(b => !b.ShowHomeIcon);
         }
 
         await LoadItemsAsync();
diff --git a/apps/server/AliasVault.Client/Main/Pages/Items/View.razor b/apps/server/AliasVault.Client/Main/Pages/Items/View.razor
index 8ed636b6f..34e268003 100644
--- a/apps/server/AliasVault.Client/Main/Pages/Items/View.razor
+++ b/apps/server/AliasVault.Client/Main/Pages/Items/View.razor
@@ -1,7 +1,6 @@
 @page "/items/{id:guid}"
 @inherits MainBase
 @inject ItemService ItemService
-@inject FolderService FolderService
 @implements IAsyncDisposable
 @using Microsoft.Extensions.Localization
 @using AliasClientDb
@@ -312,10 +311,10 @@ else
             Folder = await FolderService.GetByIdAsync(Item.FolderId.Value);
         }
 
-        // Add breadcrumb items - Home is already added by MainBase, add folder if present
-        if (Folder != null)
+        // Add breadcrumb items - Home is already added by MainBase, add folder hierarchy if present
+        if (Item.FolderId.HasValue)
         {
-            BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Folder.Name, Url = $"/items/folder/{Folder.Id}" });
+            await BuildFolderBreadcrumbsAsync(Item.FolderId.Value);
         }
 
         BreadcrumbItems.Add(new BreadcrumbItem { DisplayName = Localizer["ViewItemBreadcrumb"] });
diff --git a/apps/server/AliasVault.Client/Main/Pages/MainBase.cs b/apps/server/AliasVault.Client/Main/Pages/MainBase.cs
index 9957720a9..8f28c101d 100644
--- a/apps/server/AliasVault.Client/Main/Pages/MainBase.cs
+++ b/apps/server/AliasVault.Client/Main/Pages/MainBase.cs
@@ -7,6 +7,9 @@
 
 namespace AliasVault.Client.Main.Pages;
 
+using System.Collections.Generic;
+using AliasClientDb;
+using AliasVault.Client.Main.Utilities;
 using AliasVault.Client.Services;
 using AliasVault.Client.Services.Auth;
 using AliasVault.RazorComponents.Models;
@@ -96,6 +99,12 @@ public abstract class MainBase : OwningComponentBase
     [Inject]
     public ILocalStorageService LocalStorage { get; set; } = null!;
 
+    /// <summary>
+    /// Gets or sets the FolderService.
+    /// </summary>
+    [Inject]
+    public FolderService FolderService { get; set; } = null!;
+
     /// <summary>
     /// Gets the SharedLocalizer. This is used to access shared resource translations like buttons, etc.
     /// </summary>
@@ -195,6 +204,104 @@ public abstract class MainBase : OwningComponentBase
         }
     }
 
+    /// <summary>
+    /// Builds breadcrumb navigation for folder hierarchy using async folder loading.
+    /// This helper method recursively builds folder breadcrumbs from the given folder up to the root.
+    /// </summary>
+    /// <param name="folderId">The folder ID to build breadcrumbs for.</param>
+    /// <returns>A <see cref="Task"/> representing the asynchronous operation.</returns>
+    protected async Task BuildFolderBreadcrumbsAsync(Guid folderId)
+    {
+        // Load all folders to build the path
+        var foldersWithCounts = await FolderService.GetAllWithCountsAsync();
+
+        // Convert FolderWithCount to Folder for use with FolderTreeUtilities
+        var allFolders = foldersWithCounts.Select(f => new Folder
+        {
+            Id = f.Id,
+            Name = f.Name,
+            ParentFolderId = f.ParentFolderId,
+            Weight = f.Weight,
+        }).ToList();
+
+        // Get the folder ID path from root to current folder
+        var folderIdPath = FolderTreeUtilities.GetFolderIdPath(folderId, allFolders);
+
+        if (folderIdPath.Count == 0)
+        {
+            return;
+        }
+
+        // Get localized "Folder" text
+        var folderLabel = SharedLocalizer["Folder"];
+
+        // Add breadcrumb for each folder in the path (from root to current)
+        foreach (var currentFolderId in folderIdPath)
+        {
+            var folder = allFolders.FirstOrDefault(f => f.Id == currentFolderId);
+            if (folder != null)
+            {
+                BreadcrumbItems.Add(new BreadcrumbItem
+                {
+                    DisplayName = $"{folderLabel}: {folder.Name}",
+                    Url = $"/items/folder/{folder.Id}",
+                });
+            }
+        }
+    }
+
+    /// <summary>
+    /// Builds breadcrumb navigation for folder hierarchy and adds it to BreadcrumbItems.
+    /// This helper method can be called from any page to add folder breadcrumbs.
+    /// </summary>
+    /// <param name="folderId">The folder ID to build breadcrumbs for.</param>
+    /// <param name="allFolders">List of all folders (for path computation).</param>
+    /// <param name="itemsLabel">Label for the "Items" breadcrumb (default: "Items" from localization).</param>
+    /// <param name="includeCurrentFolder">Whether to include the current folder as the last breadcrumb (default: true).</param>
+    protected void AddFolderBreadcrumbs(Guid? folderId, List<Folder> allFolders, string? itemsLabel = null, bool includeCurrentFolder = true)
+    {
+        if (!folderId.HasValue || allFolders.Count == 0)
+        {
+            return;
+        }
+
+        // Get the folder path (list of folder names from root to current)
+        var folderPath = FolderTreeUtilities.GetFolderPath(folderId, allFolders);
+        var folderIdPath = FolderTreeUtilities.GetFolderIdPath(folderId, allFolders);
+
+        if (folderPath.Count == 0)
+        {
+            return;
+        }
+
+        // Add breadcrumb for "Items" (vault home)
+        var itemsLabelText = itemsLabel ?? SharedLocalizer["Items"];
+        BreadcrumbItems.Add(new BreadcrumbItem
+        {
+            DisplayName = itemsLabelText,
+            Url = "/items",
+        });
+
+        // Determine how many folders to add as breadcrumbs
+        int endIndex = includeCurrentFolder ? folderPath.Count : folderPath.Count - 1;
+
+        // Add breadcrumb for each folder in the path
+        for (int i = 0; i < endIndex; i++)
+        {
+            var currentFolderId = folderIdPath[i];
+            var folderName = folderPath[i];
+
+            // Last item should not have a URL if includeCurrentFolder is true
+            bool isLastItem = includeCurrentFolder && i == folderPath.Count - 1;
+
+            BreadcrumbItems.Add(new BreadcrumbItem
+            {
+                DisplayName = folderName,
+                Url = isLastItem ? null : $"/items/folder/{currentFolderId}",
+            });
+        }
+    }
+
     /// <summary>
     /// Checks if the encryption key is set. If not, redirect to the unlock screen
     /// where the user can re-enter the master password so the encryption key gets refreshed.
diff --git a/apps/server/AliasVault.Client/Resources/Pages/Main/Items/Home.en.resx b/apps/server/AliasVault.Client/Resources/Pages/Main/Items/Home.en.resx
index 886e65570..d4126444f 100644
--- a/apps/server/AliasVault.Client/Resources/Pages/Main/Items/Home.en.resx
+++ b/apps/server/AliasVault.Client/Resources/Pages/Main/Items/Home.en.resx
@@ -68,6 +68,10 @@
     <value>Find all of your items below.</value>
     <comment>Page description text</comment>
   </data>
+  <data name="Items" xml:space="preserve">
+    <value>Items</value>
+    <comment>Items label used in breadcrumb navigation</comment>
+  </data>
 
   <!-- Settings Dropdown -->
   <data name="ViewModeLabel" xml:space="preserve">
diff --git a/apps/server/AliasVault.Client/wwwroot/css/tailwind.css b/apps/server/AliasVault.Client/wwwroot/css/tailwind.css
index ec623fe51..b25b4e5fd 100644
--- a/apps/server/AliasVault.Client/wwwroot/css/tailwind.css
+++ b/apps/server/AliasVault.Client/wwwroot/css/tailwind.css
@@ -1317,6 +1317,11 @@ video {
   transform: translate(var(--tw-translate-x), var(--tw-translate-y)) rotate(var(--tw-rotate)) skewX(var(--tw-skew-x)) skewY(var(--tw-skew-y)) scaleX(var(--tw-scale-x)) scaleY(var(--tw-scale-y));
 }
 
+.rotate-90 {
+  --tw-rotate: 90deg;
+  transform: translate(var(--tw-translate-x), var(--tw-translate-y)) rotate(var(--tw-rotate)) skewX(var(--tw-skew-x)) skewY(var(--tw-skew-y)) scaleX(var(--tw-scale-x)) scaleY(var(--tw-scale-y));
+}
+
 .transform {
   transform: translate(var(--tw-translate-x), var(--tw-translate-y)) rotate(var(--tw-rotate)) skewX(var(--tw-skew-x)) skewY(var(--tw-skew-y)) scaleX(var(--tw-scale-x)) scaleY(var(--tw-scale-y));
 }
@@ -1439,6 +1444,10 @@ video {
   align-items: baseline;
 }
 
+.items-stretch {
+  align-items: stretch;
+}
+
 .justify-start {
   justify-content: flex-start;
 }
@@ -3676,6 +3685,11 @@ video {
   color: rgb(147 197 253 / var(--tw-text-opacity));
 }
 
+.dark\:text-gray-700:is(.dark *) {
+  --tw-text-opacity: 1;
+  color: rgb(55 65 81 / var(--tw-text-opacity));
+}
+
 .dark\:placeholder-gray-400:is(.dark *)::-moz-placeholder {
   --tw-placeholder-opacity: 1;
   color: rgb(156 163 175 / var(--tw-placeholder-opacity));