feat(library): implement folder organization system for agents (#12101)

### Changes 🏗️ This PR adds folder organization capabilities to the library, allowing users to organize their agents into folders: - Added new `LibraryFolder` model and database schema - Created folder management API endpoints for CRUD operations - Implemented folder tree structure with proper parent-child relationships - Added drag-and-drop functionality for moving agents between folders - Created folder creation dialog with emoji picker for folder icons - Added folder editing and deletion capabilities - Implemented folder navigation in the library UI - Added validation to prevent circular references and excessive nesting - Created animation for favoriting agents - Updated library agent list to show folder structure - Added folder filtering to agent list queries <img width="1512" height="950" alt="Screenshot 2026-02-13 at 9 08 45 PM" src="https://github.com/user-attachments/assets/78778e03-4349-4d50-ad71-d83028ca004a" /> ### Checklist 📋 #### For code changes: - [x] I have clearly listed my changes in the PR description - [x] I have made a test plan - [x] I have tested my changes according to the test plan: - [x] Create a new folder with custom name, icon, and color - [x] Move agents into folders via drag and drop - [x] Move agents into folders via context menu - [x] Navigate between folders - [x] Edit folder properties (name, icon, color) - [x] Delete folders and verify agents return to root - [x] Verify favorite animation works when adding to favorites - [x] Test folder navigation with search functionality - [x] Verify folder tree structure is maintained #### For configuration changes: - [x] `.env.default` is updated or already compatible with my changes - [x] `docker-compose.yml` is updated or already compatible with my changes - [x] I have included a list of my configuration changes in the PR description (under **Changes**)  <h2>Greptile Overview</h2> <details><summary><h3>Greptile Summary</h3></summary> This PR implements a comprehensive folder organization system for library agents, enabling hierarchical structure up to 5 levels deep. **Backend Changes:** - Added `LibraryFolder` model with self-referential hierarchy (`parentId` → `Parent`/`Children`) - Implemented CRUD operations with validation for circular references and depth limits (MAX_FOLDER_DEPTH=5) - Added `folderId` foreign key to `LibraryAgent` table - Created folder management endpoints: list, get, create, update, move, delete, and bulk agent moves - Proper soft-delete cascade handling for folders and their contained agents **Frontend Changes:** - Created folder creation/edit/delete dialogs with emoji picker integration - Implemented folder navigation UI with breadcrumbs and folder tree structure - Added drag-and-drop support for moving agents between folders - Created context menu for agent actions (move to folder, remove from folder) - Added favorite animation system with `FavoriteAnimationProvider` - Integrated folder filtering into agent list queries **Key Features:** - Folders support custom names, emoji icons, and hex colors - Unique constraint per parent folder per user prevents duplicate names - Validation prevents circular folder hierarchies and excessive nesting - Agents can be moved between folders via drag-drop or context menu - Deleting a folder soft-deletes all descendant folders and contained agents </details> <details><summary><h3>Confidence Score: 4/5</h3></summary> - This PR is safe to merge with minor considerations for performance optimization - The implementation is well-structured with proper validation, error handling, and database constraints. The folder hierarchy logic correctly prevents circular references and enforces depth limits. However, there are some performance concerns with N+1 queries in depth calculation and circular reference checking that could be optimized for deeply nested hierarchies. The foreign key constraint (ON DELETE RESTRICT) conflicts with the hard-delete code path but shouldn't cause issues since soft-deletes are the default. The client-side duplicate validation is redundant but not harmful. - Pay close attention to migration file (foreign key constraint) and db.py (performance of recursive queries) </details> <details><summary><h3>Sequence Diagram</h3></summary> ```mermaid sequenceDiagram participant User participant Frontend participant API participant DB User->>Frontend: Create folder with name/icon/color Frontend->>API: POST /v2/folders API->>DB: Validate parent exists & depth limit API->>DB: Check unique constraint (userId, parentId, name) DB-->>API: Folder created API-->>Frontend: LibraryFolder response Frontend-->>User: Show success toast User->>Frontend: Drag agent to folder Frontend->>API: POST /v2/folders/agents/bulk-move API->>DB: Verify folder exists API->>DB: Update LibraryAgent.folderId DB-->>API: Agents updated API-->>Frontend: Updated agents Frontend-->>User: Refresh agent list User->>Frontend: Navigate into folder Frontend->>API: GET /v2/library/agents?folder_id=X API->>DB: Query agents WHERE folderId=X DB-->>API: Filtered agents API-->>Frontend: Agent list Frontend-->>User: Display folder contents User->>Frontend: Delete folder Frontend->>API: DELETE /v2/folders/{id} API->>DB: Get descendant folders recursively API->>DB: Soft-delete folders + agents in transaction DB-->>API: Deletion complete API-->>Frontend: 204 No Content Frontend-->>User: Show success toast ``` </details> <sub>Last reviewed commit: a6c2f64</sub>
2026-04-08 03:00:28 -04:00 · 2026-02-24 20:34:56 +05:30
parent 6e61cb103c
commit 2136defea8
38 changed files with 4339 additions and 580 deletions
--- a/autogpt_platform/backend/backend/api/features/library/db.py
+++ b/autogpt_platform/backend/backend/api/features/library/db.py
--- a/autogpt_platform/backend/backend/api/features/library/db_test.py
+++ b/autogpt_platform/backend/backend/api/features/library/db_test.py
@@ -144,6 +144,7 @@ async def test_add_agent_to_library(mocker):
    )

    mock_library_agent = mocker.patch("prisma.models.LibraryAgent.prisma")
+    mock_library_agent.return_value.find_first = mocker.AsyncMock(return_value=None)
    mock_library_agent.return_value.find_unique = mocker.AsyncMock(return_value=None)
    mock_library_agent.return_value.create = mocker.AsyncMock(
        return_value=mock_library_agent_data
@@ -178,7 +179,6 @@ async def test_add_agent_to_library(mocker):
                "agentGraphVersion": 1,
            }
        },
-        include={"AgentGraph": True},
    )
    # Check that create was called with the expected data including settings
    create_call_args = mock_library_agent.return_value.create.call_args
--- a/autogpt_platform/backend/backend/api/features/library/exceptions.py
+++ b/autogpt_platform/backend/backend/api/features/library/exceptions.py
@@ -0,0 +1,10 @@
+class FolderValidationError(Exception):
+    """Raised when folder operations fail validation."""
+
+    pass
+
+
+class FolderAlreadyExistsError(FolderValidationError):
+    """Raised when a folder with the same name already exists in the location."""
+
+    pass
--- a/autogpt_platform/backend/backend/api/features/library/model.py
+++ b/autogpt_platform/backend/backend/api/features/library/model.py
@@ -26,6 +26,95 @@ class LibraryAgentStatus(str, Enum):
    ERROR = "ERROR"


+# === Folder Models ===
+
+
+class LibraryFolder(pydantic.BaseModel):
+    """Represents a folder for organizing library agents."""
+
+    id: str
+    user_id: str
+    name: str
+    icon: str | None = None
+    color: str | None = None
+    parent_id: str | None = None
+    created_at: datetime.datetime
+    updated_at: datetime.datetime
+    agent_count: int = 0  # Direct agents in folder
+    subfolder_count: int = 0  # Direct child folders
+
+    @staticmethod
+    def from_db(
+        folder: prisma.models.LibraryFolder,
+        agent_count: int = 0,
+        subfolder_count: int = 0,
+    ) -> "LibraryFolder":
+        """Factory method that constructs a LibraryFolder from a Prisma model."""
+        return LibraryFolder(
+            id=folder.id,
+            user_id=folder.userId,
+            name=folder.name,
+            icon=folder.icon,
+            color=folder.color,
+            parent_id=folder.parentId,
+            created_at=folder.createdAt,
+            updated_at=folder.updatedAt,
+            agent_count=agent_count,
+            subfolder_count=subfolder_count,
+        )
+
+
+class LibraryFolderTree(LibraryFolder):
+    """Folder with nested children for tree view."""
+
+    children: list["LibraryFolderTree"] = []
+
+
+class FolderCreateRequest(pydantic.BaseModel):
+    """Request model for creating a folder."""
+
+    name: str = pydantic.Field(..., min_length=1, max_length=100)
+    icon: str | None = None
+    color: str | None = pydantic.Field(
+        None, pattern=r"^#[0-9A-Fa-f]{6}$", description="Hex color code (#RRGGBB)"
+    )
+    parent_id: str | None = None
+
+
+class FolderUpdateRequest(pydantic.BaseModel):
+    """Request model for updating a folder."""
+
+    name: str | None = pydantic.Field(None, min_length=1, max_length=100)
+    icon: str | None = None
+    color: str | None = None
+
+
+class FolderMoveRequest(pydantic.BaseModel):
+    """Request model for moving a folder to a new parent."""
+
+    target_parent_id: str | None = None  # None = move to root
+
+
+class BulkMoveAgentsRequest(pydantic.BaseModel):
+    """Request model for moving multiple agents to a folder."""
+
+    agent_ids: list[str]
+    folder_id: str | None = None  # None = move to root
+
+
+class FolderListResponse(pydantic.BaseModel):
+    """Response schema for a list of folders."""
+
+    folders: list[LibraryFolder]
+    pagination: Pagination
+
+
+class FolderTreeResponse(pydantic.BaseModel):
+    """Response schema for folder tree structure."""
+
+    tree: list[LibraryFolderTree]
+
+
 class MarketplaceListingCreator(pydantic.BaseModel):
    """Creator information for a marketplace listing."""

@@ -120,6 +209,9 @@ class LibraryAgent(pydantic.BaseModel):
    can_access_graph: bool
    is_latest_version: bool
    is_favorite: bool
+    folder_id: str | None = None
+    folder_name: str | None = None  # Denormalized for display
+
    recommended_schedule_cron: str | None = None
    settings: GraphSettings = pydantic.Field(default_factory=GraphSettings)
    marketplace_listing: Optional["MarketplaceListing"] = None
@@ -259,6 +351,8 @@ class LibraryAgent(pydantic.BaseModel):
            can_access_graph=can_access_graph,
            is_latest_version=is_latest_version,
            is_favorite=agent.isFavorite,
+            folder_id=agent.folderId,
+            folder_name=agent.Folder.name if agent.Folder else None,
            recommended_schedule_cron=agent.AgentGraph.recommendedScheduleCron,
            settings=_parse_settings(agent.settings),
            marketplace_listing=marketplace_listing_data,
@@ -470,3 +564,7 @@ class LibraryAgentUpdateRequest(pydantic.BaseModel):
    settings: Optional[GraphSettings] = pydantic.Field(
        default=None, description="User-specific settings for this library agent"
    )
+    folder_id: Optional[str] = pydantic.Field(
+        default=None,
+        description="Folder ID to move agent to (None to move to root)",
+    )
--- a/autogpt_platform/backend/backend/api/features/library/routes/init.py
+++ b/autogpt_platform/backend/backend/api/features/library/routes/init.py
@@ -1,9 +1,11 @@
 import fastapi

 from .agents import router as agents_router
+from .folders import router as folders_router
 from .presets import router as presets_router

 router = fastapi.APIRouter()

 router.include_router(presets_router)
+router.include_router(folders_router)
 router.include_router(agents_router)
--- a/autogpt_platform/backend/backend/api/features/library/routes/agents.py
+++ b/autogpt_platform/backend/backend/api/features/library/routes/agents.py
@@ -41,6 +41,14 @@ async def list_library_agents(
        ge=1,
        description="Number of agents per page (must be >= 1)",
    ),
+    folder_id: Optional[str] = Query(
+        None,
+        description="Filter by folder ID",
+    ),
+    include_root_only: bool = Query(
+        False,
+        description="Only return agents without a folder (root-level agents)",
+    ),
 ) -> library_model.LibraryAgentResponse:
    """
    Get all agents in the user's library (both created and saved).
@@ -51,6 +59,8 @@ async def list_library_agents(
        sort_by=sort_by,
        page=page,
        page_size=page_size,
+        folder_id=folder_id,
+        include_root_only=include_root_only,
    )


@@ -168,6 +178,7 @@ async def update_library_agent(
        is_favorite=payload.is_favorite,
        is_archived=payload.is_archived,
        settings=payload.settings,
+        folder_id=payload.folder_id,
    )


--- a/autogpt_platform/backend/backend/api/features/library/routes/folders.py
+++ b/autogpt_platform/backend/backend/api/features/library/routes/folders.py
@@ -0,0 +1,287 @@
+from typing import Optional
+
+import autogpt_libs.auth as autogpt_auth_lib
+from fastapi import APIRouter, Query, Security, status
+from fastapi.responses import Response
+
+from .. import db as library_db
+from .. import model as library_model
+
+router = APIRouter(
+    prefix="/folders",
+    tags=["library", "folders", "private"],
+    dependencies=[Security(autogpt_auth_lib.requires_user)],
+)
+
+
+@router.get(
+    "",
+    summary="List Library Folders",
+    response_model=library_model.FolderListResponse,
+    responses={
+        200: {"description": "List of folders"},
+        500: {"description": "Server error"},
+    },
+)
+async def list_folders(
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+    parent_id: Optional[str] = Query(
+        None,
+        description="Filter by parent folder ID. If not provided, returns root-level folders.",
+    ),
+    include_relations: bool = Query(
+        True,
+        description="Include agent and subfolder relations (for counts)",
+    ),
+) -> library_model.FolderListResponse:
+    """
+    List folders for the authenticated user.
+
+    Args:
+        user_id: ID of the authenticated user.
+        parent_id: Optional parent folder ID to filter by.
+        include_relations: Whether to include agent and subfolder relations for counts.
+
+    Returns:
+        A FolderListResponse containing folders.
+    """
+    folders = await library_db.list_folders(
+        user_id=user_id,
+        parent_id=parent_id,
+        include_relations=include_relations,
+    )
+    return library_model.FolderListResponse(
+        folders=folders,
+        pagination=library_model.Pagination(
+            total_items=len(folders),
+            total_pages=1,
+            current_page=1,
+            page_size=len(folders),
+        ),
+    )
+
+
+@router.get(
+    "/tree",
+    summary="Get Folder Tree",
+    response_model=library_model.FolderTreeResponse,
+    responses={
+        200: {"description": "Folder tree structure"},
+        500: {"description": "Server error"},
+    },
+)
+async def get_folder_tree(
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> library_model.FolderTreeResponse:
+    """
+    Get the full folder tree for the authenticated user.
+
+    Args:
+        user_id: ID of the authenticated user.
+
+    Returns:
+        A FolderTreeResponse containing the nested folder structure.
+    """
+    tree = await library_db.get_folder_tree(user_id=user_id)
+    return library_model.FolderTreeResponse(tree=tree)
+
+
+@router.get(
+    "/{folder_id}",
+    summary="Get Folder",
+    response_model=library_model.LibraryFolder,
+    responses={
+        200: {"description": "Folder details"},
+        404: {"description": "Folder not found"},
+        500: {"description": "Server error"},
+    },
+)
+async def get_folder(
+    folder_id: str,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> library_model.LibraryFolder:
+    """
+    Get a specific folder.
+
+    Args:
+        folder_id: ID of the folder to retrieve.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        The requested LibraryFolder.
+    """
+    return await library_db.get_folder(folder_id=folder_id, user_id=user_id)
+
+
+@router.post(
+    "",
+    summary="Create Folder",
+    status_code=status.HTTP_201_CREATED,
+    response_model=library_model.LibraryFolder,
+    responses={
+        201: {"description": "Folder created successfully"},
+        400: {"description": "Validation error"},
+        404: {"description": "Parent folder not found"},
+        409: {"description": "Folder name conflict"},
+        500: {"description": "Server error"},
+    },
+)
+async def create_folder(
+    payload: library_model.FolderCreateRequest,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> library_model.LibraryFolder:
+    """
+    Create a new folder.
+
+    Args:
+        payload: The folder creation request.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        The created LibraryFolder.
+    """
+    return await library_db.create_folder(
+        user_id=user_id,
+        name=payload.name,
+        parent_id=payload.parent_id,
+        icon=payload.icon,
+        color=payload.color,
+    )
+
+
+@router.patch(
+    "/{folder_id}",
+    summary="Update Folder",
+    response_model=library_model.LibraryFolder,
+    responses={
+        200: {"description": "Folder updated successfully"},
+        400: {"description": "Validation error"},
+        404: {"description": "Folder not found"},
+        409: {"description": "Folder name conflict"},
+        500: {"description": "Server error"},
+    },
+)
+async def update_folder(
+    folder_id: str,
+    payload: library_model.FolderUpdateRequest,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> library_model.LibraryFolder:
+    """
+    Update a folder's properties.
+
+    Args:
+        folder_id: ID of the folder to update.
+        payload: The folder update request.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        The updated LibraryFolder.
+    """
+    return await library_db.update_folder(
+        folder_id=folder_id,
+        user_id=user_id,
+        name=payload.name,
+        icon=payload.icon,
+        color=payload.color,
+    )
+
+
+@router.post(
+    "/{folder_id}/move",
+    summary="Move Folder",
+    response_model=library_model.LibraryFolder,
+    responses={
+        200: {"description": "Folder moved successfully"},
+        400: {"description": "Validation error (circular reference)"},
+        404: {"description": "Folder or target parent not found"},
+        409: {"description": "Folder name conflict in target location"},
+        500: {"description": "Server error"},
+    },
+)
+async def move_folder(
+    folder_id: str,
+    payload: library_model.FolderMoveRequest,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> library_model.LibraryFolder:
+    """
+    Move a folder to a new parent.
+
+    Args:
+        folder_id: ID of the folder to move.
+        payload: The move request with target parent.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        The moved LibraryFolder.
+    """
+    return await library_db.move_folder(
+        folder_id=folder_id,
+        user_id=user_id,
+        target_parent_id=payload.target_parent_id,
+    )
+
+
+@router.delete(
+    "/{folder_id}",
+    summary="Delete Folder",
+    status_code=status.HTTP_204_NO_CONTENT,
+    responses={
+        204: {"description": "Folder deleted successfully"},
+        404: {"description": "Folder not found"},
+        500: {"description": "Server error"},
+    },
+)
+async def delete_folder(
+    folder_id: str,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> Response:
+    """
+    Soft-delete a folder and all its contents.
+
+    Args:
+        folder_id: ID of the folder to delete.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        204 No Content if successful.
+    """
+    await library_db.delete_folder(
+        folder_id=folder_id,
+        user_id=user_id,
+        soft_delete=True,
+    )
+    return Response(status_code=status.HTTP_204_NO_CONTENT)
+
+
+# === Bulk Agent Operations ===
+
+
+@router.post(
+    "/agents/bulk-move",
+    summary="Bulk Move Agents",
+    response_model=list[library_model.LibraryAgent],
+    responses={
+        200: {"description": "Agents moved successfully"},
+        404: {"description": "Folder not found"},
+        500: {"description": "Server error"},
+    },
+)
+async def bulk_move_agents(
+    payload: library_model.BulkMoveAgentsRequest,
+    user_id: str = Security(autogpt_auth_lib.get_user_id),
+) -> list[library_model.LibraryAgent]:
+    """
+    Move multiple agents to a folder.
+
+    Args:
+        payload: The bulk move request with agent IDs and target folder.
+        user_id: ID of the authenticated user.
+
+    Returns:
+        The updated LibraryAgents.
+    """
+    return await library_db.bulk_move_agents_to_folder(
+        agent_ids=payload.agent_ids,
+        folder_id=payload.folder_id,
+        user_id=user_id,
+    )
--- a/autogpt_platform/backend/backend/api/features/library/routes_test.py
+++ b/autogpt_platform/backend/backend/api/features/library/routes_test.py
@@ -115,6 +115,8 @@ async def test_get_library_agents_success(
        sort_by=library_model.LibraryAgentSort.UPDATED_AT,
        page=1,
        page_size=15,
+        folder_id=None,
+        include_root_only=False,
    )


--- a/autogpt_platform/backend/backend/api/rest_api.py
+++ b/autogpt_platform/backend/backend/api/rest_api.py
@@ -41,6 +41,10 @@ import backend.data.user
 import backend.integrations.webhooks.utils
 import backend.util.service
 import backend.util.settings
+from backend.api.features.library.exceptions import (
+    FolderAlreadyExistsError,
+    FolderValidationError,
+)
 from backend.blocks.llm import DEFAULT_LLM_MODEL
 from backend.data.model import Credentials
 from backend.integrations.providers import ProviderName
@@ -261,6 +265,10 @@ async def validation_error_handler(


 app.add_exception_handler(PrismaError, handle_internal_http_error(500))
+app.add_exception_handler(
+    FolderAlreadyExistsError, handle_internal_http_error(409, False)
+)
+app.add_exception_handler(FolderValidationError, handle_internal_http_error(400, False))
 app.add_exception_handler(NotFoundError, handle_internal_http_error(404, False))
 app.add_exception_handler(NotAuthorizedError, handle_internal_http_error(403, False))
 app.add_exception_handler(RequestValidationError, validation_error_handler)
--- a/autogpt_platform/backend/backend/data/includes.py
+++ b/autogpt_platform/backend/backend/data/includes.py
@@ -79,6 +79,12 @@ INTEGRATION_WEBHOOK_INCLUDE: prisma.types.IntegrationWebhookInclude = {
 }


+LIBRARY_FOLDER_INCLUDE: prisma.types.LibraryFolderInclude = {
+    "LibraryAgents": {"where": {"isDeleted": False}},
+    "Children": {"where": {"isDeleted": False}},
+}
+
+
 def library_agent_include(
    user_id: str,
    include_nodes: bool = True,
@@ -105,6 +111,7 @@ def library_agent_include(
    """
    result: prisma.types.LibraryAgentInclude = {
        "Creator": True,  # Always needed for creator info
+        "Folder": True,  # Always needed for folder info
    }

    # Build AgentGraph include based on requested options
--- a/autogpt_platform/backend/migrations/20260123110033_add_folders_in_library/migration.sql
+++ b/autogpt_platform/backend/migrations/20260123110033_add_folders_in_library/migration.sql
@@ -0,0 +1,33 @@
+-- AlterTable
+ALTER TABLE "LibraryAgent" ADD COLUMN     "folderId" TEXT;
+
+-- CreateTable
+CREATE TABLE "LibraryFolder" (
+    "id" TEXT NOT NULL,
+    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    "updatedAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    "userId" TEXT NOT NULL,
+    "name" TEXT NOT NULL,
+    "icon" TEXT,
+    "color" TEXT,
+    "parentId" TEXT,
+    "isDeleted" BOOLEAN NOT NULL DEFAULT false,
+
+    CONSTRAINT "LibraryFolder_pkey" PRIMARY KEY ("id")
+);
+
+
+-- CreateIndex
+CREATE UNIQUE INDEX "LibraryFolder_userId_parentId_name_key" ON "LibraryFolder"("userId", "parentId", "name");
+
+-- CreateIndex
+CREATE INDEX "LibraryAgent_folderId_idx" ON "LibraryAgent"("folderId");
+
+-- AddForeignKey
+ALTER TABLE "LibraryAgent" ADD CONSTRAINT "LibraryAgent_folderId_fkey" FOREIGN KEY ("folderId") REFERENCES "LibraryFolder"("id") ON DELETE RESTRICT ON UPDATE CASCADE;
+
+-- AddForeignKey
+ALTER TABLE "LibraryFolder" ADD CONSTRAINT "LibraryFolder_userId_fkey" FOREIGN KEY ("userId") REFERENCES "User"("id") ON DELETE CASCADE ON UPDATE CASCADE;
+
+-- AddForeignKey
+ALTER TABLE "LibraryFolder" ADD CONSTRAINT "LibraryFolder_parentId_fkey" FOREIGN KEY ("parentId") REFERENCES "LibraryFolder"("id") ON DELETE CASCADE ON UPDATE CASCADE;
--- a/autogpt_platform/backend/schema.prisma
+++ b/autogpt_platform/backend/schema.prisma
@@ -51,6 +51,7 @@ model User {
  ChatSessions         ChatSession[]
  AgentPresets         AgentPreset[]
  LibraryAgents        LibraryAgent[]
+  LibraryFolders       LibraryFolder[]

  Profile               Profile[]
  UserOnboarding        UserOnboarding?
@@ -395,6 +396,9 @@ model LibraryAgent {
  creatorId String?
  Creator   Profile? @relation(fields: [creatorId], references: [id])

+  folderId String?
+  Folder   LibraryFolder? @relation(fields: [folderId], references: [id], onDelete: Restrict)
+
  useGraphIsActiveVersion Boolean @default(false)

  isFavorite      Boolean @default(false)
@@ -407,6 +411,30 @@ model LibraryAgent {
  @@unique([userId, agentGraphId, agentGraphVersion])
  @@index([agentGraphId, agentGraphVersion])
  @@index([creatorId])
+  @@index([folderId])
+}
+
+model LibraryFolder {
+  id        String   @id @default(uuid())
+  createdAt DateTime @default(now())
+  updatedAt DateTime @default(now()) @updatedAt
+
+  userId String
+  User   User   @relation(fields: [userId], references: [id], onDelete: Cascade)
+
+  name  String
+  icon  String?
+  color String?
+
+  parentId String?
+  Parent   LibraryFolder?  @relation("FolderHierarchy", fields: [parentId], references: [id], onDelete: Cascade)
+  Children LibraryFolder[] @relation("FolderHierarchy")
+
+  isDeleted Boolean @default(false)
+
+  LibraryAgents LibraryAgent[]
+
+  @@unique([userId, parentId, name]) // Name unique per parent per user
 }

 ////////////////////////////////////////////////////////////
--- a/autogpt_platform/backend/snapshots/lib_agts_search
+++ b/autogpt_platform/backend/snapshots/lib_agts_search
@@ -38,6 +38,8 @@
      "can_access_graph": true,
      "is_latest_version": true,
      "is_favorite": false,
+      "folder_id": null,
+      "folder_name": null,
      "recommended_schedule_cron": null,
      "settings": {
        "human_in_the_loop_safe_mode": true,
@@ -83,6 +85,8 @@
      "can_access_graph": false,
      "is_latest_version": true,
      "is_favorite": false,
+      "folder_id": null,
+      "folder_name": null,
      "recommended_schedule_cron": null,
      "settings": {
        "human_in_the_loop_safe_mode": true,
--- a/autogpt_platform/frontend/package.json
+++ b/autogpt_platform/frontend/package.json
@@ -32,6 +32,7 @@
  "dependencies": {
    "@ai-sdk/react": "3.0.61",
    "@faker-js/faker": "10.0.0",
+    "@ferrucc-io/emoji-picker": "0.0.48",
    "@hookform/resolvers": "5.2.2",
    "@next/third-parties": "15.4.6",
    "@phosphor-icons/react": "2.1.10",
--- a/autogpt_platform/frontend/pnpm-lock.yaml
+++ b/autogpt_platform/frontend/pnpm-lock.yaml
@@ -18,6 +18,9 @@ importers:
      '@faker-js/faker':
        specifier: 10.0.0
        version: 10.0.0
+      '@ferrucc-io/emoji-picker':
+        specifier: 0.0.48
+        version: 0.0.48(@babel/core@7.28.5)(@babel/template@7.27.2)(@types/react@18.3.17)(react-dom@18.3.1(react@18.3.1))(react@18.3.1)(tailwindcss@3.4.17)
      '@hookform/resolvers':
        specifier: 5.2.2
        version: 5.2.2(react-hook-form@7.66.0(react@18.3.1))
@@ -1507,6 +1510,14 @@ packages:
    resolution: {integrity: sha512-UollFEUkVXutsaP+Vndjxar40Gs5JL2HeLcl8xO1QAjJgOdhc3OmBFWyEylS+RddWaaBiAzH+5/17PLQJwDiLw==}
    engines: {node: ^20.19.0 || ^22.13.0 || ^23.5.0 || >=24.0.0, npm: '>=10'}

+  '@ferrucc-io/emoji-picker@0.0.48':
+    resolution: {integrity: sha512-DJ5u+6VLF9OK7x+S/luwrVb5CHC6W16jL5b8vBUYNpxKWSuFgyliDHVtw1SGe6+dr5RUbf8WQwPJdKZmU3Ittg==}
+    engines: {node: '>=18'}
+    peerDependencies:
+      react: ^18.2.0 || ^19.0.0
+      react-dom: ^18.2.0 || ^19.0.0
+      tailwindcss: '>=3.0.0'
+
  '@floating-ui/core@1.7.3':
    resolution: {integrity: sha512-sGnvb5dmrJaKEZ+LDIpguvdX3bDlEllmv4/ClQ9awcmCZrlx5jQyyMWFM5kBI+EyNOCDDiKk8il0zeuX3Zlg/w==}

@@ -3114,6 +3125,10 @@ packages:
  '@shikijs/vscode-textmate@10.0.2':
    resolution: {integrity: sha512-83yeghZ2xxin3Nj8z1NMd/NCuca+gsYXswywDy5bHvwlWL8tpTQmzGeUuHd9FC3E/SBEMvzJRwWEOz5gGes9Qg==}

+  '@sindresorhus/is@4.6.0':
+    resolution: {integrity: sha512-t09vSN3MdfsyCHoFcTRCH/iUtG7OJ0CsjzB8cjAmKc/va/kIgeDI/TxsigdncE/4be734m0cvIYwNaV4i2XqAw==}
+    engines: {node: '>=10'}
+
  '@standard-schema/spec@1.0.0':
    resolution: {integrity: sha512-m2bOd0f2RT9k8QJx1JN85cZYyH1RqFBdlwtkSlf4tBDYLCiiZnv1fIIwacK6cqwXavOydf0NPToMQgpKq+dVlA==}

@@ -3376,10 +3391,19 @@ packages:
      react: '>=16.8'
      react-dom: '>=16.8'

+  '@tanstack/react-virtual@3.13.18':
+    resolution: {integrity: sha512-dZkhyfahpvlaV0rIKnvQiVoWPyURppl6w4m9IwMDpuIjcJ1sD9YGWrt0wISvgU7ewACXx2Ct46WPgI6qAD4v6A==}
+    peerDependencies:
+      react: ^16.8.0 || ^17.0.0 || ^18.0.0 || ^19.0.0
+      react-dom: ^16.8.0 || ^17.0.0 || ^18.0.0 || ^19.0.0
+
  '@tanstack/table-core@8.21.3':
    resolution: {integrity: sha512-ldZXEhOBb8Is7xLs01fR3YEc3DERiz5silj8tnGkFZytt1abEvl/GhUmCE0PMLaMPTa3Jk4HbKmRlHmu+gCftg==}
    engines: {node: '>=12'}

+  '@tanstack/virtual-core@3.13.18':
+    resolution: {integrity: sha512-Mx86Hqu1k39icq2Zusq+Ey2J6dDWTjDvEv43PJtRCoEYTLyfaPnxIQ6iy7YAOK0NV/qOEmZQ/uCufrppZxTgcg==}
+
  '@testing-library/dom@10.4.1':
    resolution: {integrity: sha512-o4PXJQidqJl82ckFaXUeoAW+XysPLauYI43Abki5hABd853iMhitooc6znOnczgbTYmEP6U6/y1ZyKAIsvMKGg==}
    engines: {node: '>=18'}
@@ -4373,6 +4397,10 @@ packages:
    resolution: {integrity: sha512-oKnbhFyRIXpUuez8iBMmyEa4nbj4IOQyuhc/wy9kY7/WVPcwIO9VA668Pu8RkO7+0G76SLROeyw9CpQ061i4mA==}
    engines: {node: '>=10'}

+  char-regex@1.0.2:
+    resolution: {integrity: sha512-kWWXztvZ5SBQV+eRgKFeh8q5sLuZY2+8WUIzlxWVTg+oGwY14qylx1KbKzHd8P6ZYkAg0xyIDU9JMHhyJMZ1jw==}
+    engines: {node: '>=10'}
+
  character-entities-html4@2.1.0:
    resolution: {integrity: sha512-1v7fgQRj6hnSwFpq1Eu0ynr/CDEw0rXo2B61qXrLNdHZmPKgb7fqS1a2JwF0rISo9q77jDI8VMEHoApn8qDoZA==}

@@ -4990,6 +5018,9 @@ packages:
  emoji-regex@9.2.2:
    resolution: {integrity: sha512-L18DaJsXSUk2+42pv8mLs5jJT2hqFkFE4j21wOmgbUqsZ2hL72NsUU785g9RXgo3s0ZNgVl42TiHp3ZtOv/Vyg==}

+  emojilib@2.4.0:
+    resolution: {integrity: sha512-5U0rVMU5Y2n2+ykNLQqMoqklN9ICBT/KsvC1Gz6vqHbz2AXXGkG+Pm5rMWk/8Vjrr/mY9985Hi8DYzn1F09Nyw==}
+
  emojis-list@3.0.0:
    resolution: {integrity: sha512-/kyM18EfinwXZbno9FyUGeFh87KC8HRQBQGildHZbEuRyWFOmv1U10o9BBp8XVZDVNNuQKyIGIu5ZYAAXJ0V2Q==}
    engines: {node: '>= 4'}
@@ -5970,6 +6001,24 @@ packages:
    resolution: {integrity: sha512-ekilCSN1jwRvIbgeg/57YFh8qQDNbwDb9xT/qu2DAHbFFZUicIl4ygVaAvzveMhMVr3LnpSKTNnwt8PoOfmKhQ==}
    hasBin: true

+  jotai@2.17.1:
+    resolution: {integrity: sha512-TFNZZDa/0ewCLQyRC/Sq9crtixNj/Xdf/wmj9631xxMuKToVJZDbqcHIYN0OboH+7kh6P6tpIK7uKWClj86PKw==}
+    engines: {node: '>=12.20.0'}
+    peerDependencies:
+      '@babel/core': '>=7.0.0'
+      '@babel/template': '>=7.0.0'
+      '@types/react': '>=17.0.0'
+      react: '>=17.0.0'
+    peerDependenciesMeta:
+      '@babel/core':
+        optional: true
+      '@babel/template':
+        optional: true
+      '@types/react':
+        optional: true
+      react:
+        optional: true
+
  js-tokens@4.0.0:
    resolution: {integrity: sha512-RdJUflcE3cUzKiMqQgsCu06FPu9UdIJO0beYbPhHN4k6apgJtifcoCtT9bcxOpYBtpD2kCM6Sbzg4CausW/PKQ==}

@@ -6588,6 +6637,10 @@ packages:
  node-abort-controller@3.1.1:
    resolution: {integrity: sha512-AGK2yQKIjRuqnc6VkX2Xj5d+QW8xZ87pa1UK6yA6ouUyuxfHuMP6umE5QK7UmTeOAymo+Zx1Fxiuw9rVx8taHQ==}

+  node-emoji@2.2.0:
+    resolution: {integrity: sha512-Z3lTE9pLaJF47NyMhd4ww1yFTAP8YhYI8SleJiHzM46Fgpm5cnNzSl9XfzFNqbaz+VlJrIj3fXQ4DeN1Rjm6cw==}
+    engines: {node: '>=18'}
+
  node-fetch-h2@2.3.0:
    resolution: {integrity: sha512-ofRW94Ab0T4AOh5Fk8t0h8OBWrmjb0SSB20xh1H8YnPV9EJ+f5AMoYSUQ2zgJ4Iq2HAK0I2l5/Nequ8YzFS3Hg==}
    engines: {node: 4.x || >=6.0.0}
@@ -7686,6 +7739,10 @@ packages:
    resolution: {integrity: sha512-LH7FpTAkeD+y5xQC4fzS+tFtaNlvt3Ib1zKzvhjv/Y+cioV4zIuw4IZr2yhRLu67CWL7FR9/6KXKnjRoZTvGGQ==}
    engines: {node: '>=12'}

+  skin-tone@2.0.0:
+    resolution: {integrity: sha512-kUMbT1oBJCpgrnKoSr0o6wPtvRWT9W9UKvGLwfJYO2WuahZRHOpEyL1ckyMGgMWh0UdpmaoFqKKD29WTomNEGA==}
+    engines: {node: '>=8'}
+
  slash@3.0.0:
    resolution: {integrity: sha512-g9Q1haeby36OSStwb4ntCGGGaKsaVSjQ68fBxoQcutl5fS1vuY18H3wSt3jFyFtrkx+Kz0V1G85A4MyAdDMi2Q==}
    engines: {node: '>=8'}
@@ -8163,6 +8220,13 @@ packages:
    resolution: {integrity: sha512-dA8WbNeb2a6oQzAQ55YlT5vQAWGV9WXOsi3SskE3bcCdM0P4SDd+24zS/OCacdRq5BkdsRj9q3Pg6YyQoxIGqg==}
    engines: {node: '>=4'}

+  unicode-emoji-json@0.8.0:
+    resolution: {integrity: sha512-3wDXXvp6YGoKGhS2O2H7+V+bYduOBydN1lnI0uVfr1cIdY02uFFiEH1i3kE5CCE4l6UqbLKVmEFW9USxTAMD1g==}
+
+  unicode-emoji-modifier-base@1.0.0:
+    resolution: {integrity: sha512-yLSH4py7oFH3oG/9K+XWrz1pSi3dfUrWEnInbxMfArOfc1+33BlGPQtLsOYwvdMy11AwUBetYuaRxSPqgkq+8g==}
+    engines: {node: '>=4'}
+
  unicode-match-property-ecmascript@2.0.0:
    resolution: {integrity: sha512-5kaZCrbp5mmbz5ulBkDkbY0SsPOjKqVS35VpL9ulMPfSl0J0Xsm+9Evphv9CoIZFwre7aJoa94AY6seMKGVN5Q==}
    engines: {node: '>=4'}
@@ -9772,6 +9836,22 @@ snapshots:

  '@faker-js/faker@10.0.0': {}

+  '@ferrucc-io/emoji-picker@0.0.48(@babel/core@7.28.5)(@babel/template@7.27.2)(@types/react@18.3.17)(react-dom@18.3.1(react@18.3.1))(react@18.3.1)(tailwindcss@3.4.17)':
+    dependencies:
+      '@tanstack/react-virtual': 3.13.18(react-dom@18.3.1(react@18.3.1))(react@18.3.1)
+      clsx: 2.1.1
+      jotai: 2.17.1(@babel/core@7.28.5)(@babel/template@7.27.2)(@types/react@18.3.17)(react@18.3.1)
+      node-emoji: 2.2.0
+      react: 18.3.1
+      react-dom: 18.3.1(react@18.3.1)
+      tailwind-merge: 2.6.0
+      tailwindcss: 3.4.17
+      unicode-emoji-json: 0.8.0
+    transitivePeerDependencies:
+      - '@babel/core'
+      - '@babel/template'
+      - '@types/react'
+
  '@floating-ui/core@1.7.3':
    dependencies:
      '@floating-ui/utils': 0.2.10
@@ -11533,6 +11613,8 @@ snapshots:

  '@shikijs/vscode-textmate@10.0.2': {}

+  '@sindresorhus/is@4.6.0': {}
+
  '@standard-schema/spec@1.0.0': {}

  '@standard-schema/spec@1.1.0': {}
@@ -12001,8 +12083,16 @@ snapshots:
      react: 18.3.1
      react-dom: 18.3.1(react@18.3.1)

+  '@tanstack/react-virtual@3.13.18(react-dom@18.3.1(react@18.3.1))(react@18.3.1)':
+    dependencies:
+      '@tanstack/virtual-core': 3.13.18
+      react: 18.3.1
+      react-dom: 18.3.1(react@18.3.1)
+
  '@tanstack/table-core@8.21.3': {}

+  '@tanstack/virtual-core@3.13.18': {}
+
  '@testing-library/dom@10.4.1':
    dependencies:
      '@babel/code-frame': 7.27.1
@@ -13094,6 +13184,8 @@ snapshots:
      ansi-styles: 4.3.0
      supports-color: 7.2.0

+  char-regex@1.0.2: {}
+
  character-entities-html4@2.1.0: {}

  character-entities-legacy@3.0.0: {}
@@ -13737,6 +13829,8 @@ snapshots:

  emoji-regex@9.2.2: {}

+  emojilib@2.4.0: {}
+
  emojis-list@3.0.0: {}

  endent@2.1.0:
@@ -15018,6 +15112,13 @@ snapshots:

  jiti@2.6.1: {}

+  jotai@2.17.1(@babel/core@7.28.5)(@babel/template@7.27.2)(@types/react@18.3.17)(react@18.3.1):
+    optionalDependencies:
+      '@babel/core': 7.28.5
+      '@babel/template': 7.27.2
+      '@types/react': 18.3.17
+      react: 18.3.1
+
  js-tokens@4.0.0: {}

  js-yaml@4.1.0:
@@ -15886,6 +15987,13 @@ snapshots:

  node-abort-controller@3.1.1: {}

+  node-emoji@2.2.0:
+    dependencies:
+      '@sindresorhus/is': 4.6.0
+      char-regex: 1.0.2
+      emojilib: 2.4.0
+      skin-tone: 2.0.0
+
  node-fetch-h2@2.3.0:
    dependencies:
      http2-client: 1.3.5
@@ -17186,6 +17294,10 @@ snapshots:
    dependencies:
      jsep: 1.4.0

+  skin-tone@2.0.0:
+    dependencies:
+      unicode-emoji-modifier-base: 1.0.0
+
  slash@3.0.0: {}

  sonner@2.0.7(react-dom@18.3.1(react@18.3.1))(react@18.3.1):
@@ -17701,6 +17813,10 @@ snapshots:

  unicode-canonical-property-names-ecmascript@2.0.1: {}

+  unicode-emoji-json@0.8.0: {}
+
+  unicode-emoji-modifier-base@1.0.0: {}
+
  unicode-match-property-ecmascript@2.0.0:
    dependencies:
      unicode-canonical-property-names-ecmascript: 2.0.1
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/FavoritesSection/FavoritesSection.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/FavoritesSection/FavoritesSection.tsx
@@ -1,17 +1,31 @@
 "use client";

 import { LibraryAgent } from "@/app/api/__generated__/models/libraryAgent";
+import { LibraryAgentSort } from "@/app/api/__generated__/models/libraryAgentSort";
 import { Text } from "@/components/atoms/Text/Text";
+import { LoadingSpinner } from "@/components/atoms/LoadingSpinner/LoadingSpinner";
 import { InfiniteScroll } from "@/components/contextual/InfiniteScroll/InfiniteScroll";
 import { HeartIcon } from "@phosphor-icons/react";
 import { useFavoriteAgents } from "../../hooks/useFavoriteAgents";
 import { LibraryAgentCard } from "../LibraryAgentCard/LibraryAgentCard";
+import { LibraryTabs, Tab } from "../LibraryTabs/LibraryTabs";
+import { LibraryActionSubHeader } from "../LibraryActionSubHeader/LibraryActionSubHeader";

 interface Props {
  searchTerm: string;
+  tabs: Tab[];
+  activeTab: string;
+  onTabChange: (tabId: string) => void;
+  setLibrarySort: (value: LibraryAgentSort) => void;
 }

-export function FavoritesSection({ searchTerm }: Props) {
+export function FavoritesSection({
+  searchTerm,
+  tabs,
+  activeTab,
+  onTabChange,
+  setLibrarySort,
+}: Props) {
  const {
    allAgents: favoriteAgents,
    agentLoading: isLoading,
@@ -21,38 +35,33 @@ export function FavoritesSection({ searchTerm }: Props) {
    isFetchingNextPage,
  } = useFavoriteAgents({ searchTerm });

-  if (isLoading || favoriteAgents.length === 0) {
-    return null;
-  }
-
  return (
-    <div className="!mb-8">
-      <div className="mb-3 flex items-center gap-2 p-2">
-        <HeartIcon className="h-5 w-5" weight="fill" />
-        <div className="flex items-baseline gap-2">
-          <Text variant="h4">Favorites</Text>
-          {!isLoading && (
-            <Text
-              variant="body"
-              data-testid="agents-count"
-              className="relative bottom-px text-zinc-500"
-            >
-              {agentCount}
-            </Text>
-          )}
-        </div>
-      </div>
+    <>
+      <LibraryActionSubHeader
+        agentCount={agentCount}
+        setLibrarySort={setLibrarySort}
+      />
+      <LibraryTabs
+        tabs={tabs}
+        activeTab={activeTab}
+        onTabChange={onTabChange}
+      />

-      <div className="relative">
+      {isLoading ? (
+        <div className="flex h-[200px] items-center justify-center">
+          <LoadingSpinner size="large" />
+        </div>
+      ) : favoriteAgents.length === 0 ? (
+        <div className="flex h-[200px] flex-col items-center justify-center gap-2 text-zinc-500">
+          <HeartIcon className="h-10 w-10" />
+          <Text variant="body">No favorite agents yet</Text>
+        </div>
+      ) : (
        <InfiniteScroll
          isFetchingNextPage={isFetchingNextPage}
          fetchNextPage={fetchNextPage}
          hasNextPage={hasNextPage}
-          loader={
-            <div className="flex h-8 w-full items-center justify-center">
-              <div className="h-6 w-6 animate-spin rounded-full border-b-2 border-t-2 border-neutral-800" />
-            </div>
-          }
+          loader={<LoadingSpinner size="medium" />}
        >
          <div className="grid grid-cols-1 gap-4 sm:grid-cols-2 lg:grid-cols-3 xl:grid-cols-4">
            {favoriteAgents.map((agent: LibraryAgent) => (
@@ -60,9 +69,7 @@ export function FavoritesSection({ searchTerm }: Props) {
            ))}
          </div>
        </InfiniteScroll>
-      </div>
-
-      {favoriteAgents.length > 0 && <div className="!mt-10 border-t" />}
-    </div>
+      )}
+    </>
  );
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/FlyingHeart/FlyingHeart.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/FlyingHeart/FlyingHeart.tsx
@@ -0,0 +1,71 @@
+"use client";
+
+import { motion, AnimatePresence, useReducedMotion } from "framer-motion";
+import { HeartIcon } from "@phosphor-icons/react";
+import { useEffect, useState } from "react";
+
+interface FlyingHeartProps {
+  startPosition: { x: number; y: number } | null;
+  targetPosition: { x: number; y: number } | null;
+  onAnimationComplete: () => void;
+}
+
+export function FlyingHeart({
+  startPosition,
+  targetPosition,
+  onAnimationComplete,
+}: FlyingHeartProps) {
+  const [isVisible, setIsVisible] = useState(false);
+  const shouldReduceMotion = useReducedMotion();
+
+  useEffect(() => {
+    if (startPosition && targetPosition) {
+      setIsVisible(true);
+    }
+  }, [startPosition, targetPosition]);
+
+  if (!startPosition || !targetPosition) return null;
+
+  return (
+    <AnimatePresence>
+      {isVisible && (
+        <motion.div
+          className="pointer-events-none fixed z-50"
+          initial={{
+            x: startPosition.x,
+            y: startPosition.y,
+            scale: 1,
+            opacity: 1,
+          }}
+          animate={{
+            x: shouldReduceMotion ? targetPosition.x : targetPosition.x,
+            y: shouldReduceMotion ? targetPosition.y : targetPosition.y,
+            scale: 0.5,
+            opacity: 0,
+          }}
+          exit={{ opacity: 0 }}
+          transition={
+            shouldReduceMotion
+              ? { duration: 0 }
+              : {
+                  type: "spring",
+                  damping: 20,
+                  stiffness: 200,
+                  duration: 0.5,
+                }
+          }
+          onAnimationComplete={() => {
+            setIsVisible(false);
+            onAnimationComplete();
+          }}
+        >
+          <HeartIcon
+            size={24}
+            weight="fill"
+            className="text-red-500 drop-shadow-md"
+          />
+        </motion.div>
+      )}
+    </AnimatePresence>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LazyEmojiPicker.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LazyEmojiPicker.tsx
@@ -0,0 +1,25 @@
+"use client";
+
+import { EmojiPicker } from "@ferrucc-io/emoji-picker";
+
+interface Props {
+  onEmojiSelect: (emoji: string) => void;
+  containerHeight?: number;
+}
+
+export function LazyEmojiPicker({
+  onEmojiSelect,
+  containerHeight = 295,
+}: Props) {
+  return (
+    <EmojiPicker
+      onEmojiSelect={onEmojiSelect}
+      emojiSize={32}
+      className="w-full rounded-2xl px-2"
+    >
+      <EmojiPicker.Group>
+        <EmojiPicker.List hideStickyHeader containerHeight={containerHeight} />
+      </EmojiPicker.Group>
+    </EmojiPicker>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryActionSubHeader/LibraryActionSubHeader.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryActionSubHeader/LibraryActionSubHeader.tsx
@@ -13,7 +13,7 @@ export function LibraryActionSubHeader({ agentCount, setLibrarySort }: Props) {
  return (
    <div className="flex items-baseline justify-between">
      <div className="flex items-baseline gap-4">
-        <Text variant="h4">My agents</Text>
+        <Text variant="h5">My agents</Text>
        <Text
          variant="body"
          data-testid="agents-count"
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/LibraryAgentCard.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/LibraryAgentCard.tsx
@@ -4,6 +4,7 @@ import { Text } from "@/components/atoms/Text/Text";
 import { CaretCircleRightIcon } from "@phosphor-icons/react";
 import Image from "next/image";
 import NextLink from "next/link";
+import { motion } from "framer-motion";

 import { LibraryAgent } from "@/app/api/__generated__/models/libraryAgent";
 import Avatar, {
@@ -14,13 +15,21 @@ import { Link } from "@/components/atoms/Link/Link";
 import { AgentCardMenu } from "./components/AgentCardMenu";
 import { FavoriteButton } from "./components/FavoriteButton";
 import { useLibraryAgentCard } from "./useLibraryAgentCard";
+import { useFavoriteAnimation } from "../../context/FavoriteAnimationContext";

 interface Props {
  agent: LibraryAgent;
+  draggable?: boolean;
 }

-export function LibraryAgentCard({ agent }: Props) {
+export function LibraryAgentCard({ agent, draggable = true }: Props) {
  const { id, name, graph_id, can_access_graph, image_url } = agent;
+  const { triggerFavoriteAnimation } = useFavoriteAnimation();
+
+  function handleDragStart(e: React.DragEvent<HTMLDivElement>) {
+    e.dataTransfer.setData("application/agent-id", id);
+    e.dataTransfer.effectAllowed = "move";
+  }

  const {
    isFromMarketplace,
@@ -28,103 +37,119 @@ export function LibraryAgentCard({ agent }: Props) {
    profile,
    creator_image_url,
    handleToggleFavorite,
-  } = useLibraryAgentCard({ agent });
+  } = useLibraryAgentCard({
+    agent,
+    onFavoriteAdd: triggerFavoriteAnimation,
+  });

  return (
    <div
-      data-testid="library-agent-card"
-      data-agent-id={id}
-      className="group relative inline-flex h-[10.625rem] w-full max-w-[25rem] flex-col items-start justify-start gap-2.5 rounded-medium border border-zinc-100 bg-white transition-all duration-300 hover:shadow-md"
+      draggable={draggable}
+      onDragStart={handleDragStart}
+      className="[@media(pointer:fine)]:cursor-grab [@media(pointer:fine)]:active:cursor-grabbing"
    >
-      <NextLink href={`/library/agents/${id}`} className="flex-shrink-0">
-        <div className="relative flex items-center gap-2 px-4 pt-3">
-          <Avatar className="h-4 w-4 rounded-full">
-            <AvatarImage
-              src={
-                isFromMarketplace
-                  ? creator_image_url || "/avatar-placeholder.png"
-                  : profile?.avatar_url || "/avatar-placeholder.png"
-              }
-              alt={`${name} creator avatar`}
-            />
-            <AvatarFallback size={48}>{name.charAt(0)}</AvatarFallback>
-          </Avatar>
-          <Text
-            variant="small-medium"
-            className="uppercase tracking-wide text-zinc-400"
-          >
-            {isFromMarketplace ? "FROM MARKETPLACE" : "Built by you"}
-          </Text>
-        </div>
-      </NextLink>
-      <FavoriteButton
-        isFavorite={isFavorite}
-        onClick={handleToggleFavorite}
-        className="absolute right-10 top-0"
-      />
-      <AgentCardMenu agent={agent} />
+      <motion.div
+        layoutId={`agent-card-${id}`}
+        data-testid="library-agent-card"
+        data-agent-id={id}
+        className="group relative inline-flex h-[10.625rem] w-full max-w-[25rem] flex-col items-start justify-start gap-2.5 rounded-medium border border-zinc-100 bg-white hover:shadow-md"
+        transition={{
+          type: "spring",
+          damping: 25,
+          stiffness: 300,
+        }}
+        style={{ willChange: "transform" }}
+      >
+        <NextLink href={`/library/agents/${id}`} className="flex-shrink-0">
+          <div className="relative flex items-center gap-2 px-4 pt-3">
+            <Avatar className="h-4 w-4 rounded-full">
+              <AvatarImage
+                src={
+                  isFromMarketplace
+                    ? creator_image_url || "/avatar-placeholder.png"
+                    : profile?.avatar_url || "/avatar-placeholder.png"
+                }
+                alt={`${name} creator avatar`}
+              />
+              <AvatarFallback size={48}>{name.charAt(0)}</AvatarFallback>
+            </Avatar>
+            <Text
+              variant="small-medium"
+              className="uppercase tracking-wide text-zinc-400"
+            >
+              {isFromMarketplace ? "FROM MARKETPLACE" : "Built by you"}
+            </Text>
+          </div>
+        </NextLink>
+        <FavoriteButton
+          isFavorite={isFavorite}
+          onClick={handleToggleFavorite}
+          className="absolute right-10 top-0"
+        />
+        <AgentCardMenu agent={agent} />

-      <div className="flex w-full flex-1 flex-col px-4 pb-2">
-        <Link
-          href={`/library/agents/${id}`}
-          className="flex w-full items-start justify-between gap-2 no-underline hover:no-underline"
-        >
-          <Text
-            variant="h5"
-            data-testid="library-agent-card-name"
-            className="line-clamp-3 hyphens-auto break-words no-underline hover:no-underline"
-          >
-            {name}
-          </Text>
-
-          {!image_url ? (
-            <div
-              className={`h-[3.64rem] w-[6.70rem] flex-shrink-0 rounded-small ${
-                [
-                  "bg-gradient-to-r from-green-200 to-blue-200",
-                  "bg-gradient-to-r from-pink-200 to-purple-200",
-                  "bg-gradient-to-r from-yellow-200 to-orange-200",
-                  "bg-gradient-to-r from-blue-200 to-cyan-200",
-                  "bg-gradient-to-r from-indigo-200 to-purple-200",
-                ][parseInt(id.slice(0, 8), 16) % 5]
-              }`}
-              style={{
-                backgroundSize: "200% 200%",
-                animation: "gradient 15s ease infinite",
-              }}
-            />
-          ) : (
-            <Image
-              src={image_url}
-              alt={`${name} preview image`}
-              width={107}
-              height={58}
-              className="flex-shrink-0 rounded-small object-cover"
-            />
-          )}
-        </Link>
-
-        <div className="mt-auto flex w-full justify-start gap-6 border-t border-zinc-100 pb-1 pt-3">
+        <div className="flex w-full flex-1 flex-col px-4 pb-2">
          <Link
            href={`/library/agents/${id}`}
-            data-testid="library-agent-card-see-runs-link"
-            className="flex items-center gap-1 text-[13px]"
+            className="flex w-full items-start justify-between gap-2 no-underline hover:no-underline focus:ring-0"
          >
-            See runs <CaretCircleRightIcon size={20} />
+            <Text
+              variant="h5"
+              data-testid="library-agent-card-name"
+              className="line-clamp-3 hyphens-auto break-words no-underline hover:no-underline"
+            >
+              {name}
+            </Text>
+
+            {!image_url ? (
+              <div
+                className={`h-[3.64rem] w-[6.70rem] flex-shrink-0 rounded-small ${
+                  [
+                    "bg-gradient-to-r from-green-200 to-blue-200",
+                    "bg-gradient-to-r from-pink-200 to-purple-200",
+                    "bg-gradient-to-r from-yellow-200 to-orange-200",
+                    "bg-gradient-to-r from-blue-200 to-cyan-200",
+                    "bg-gradient-to-r from-indigo-200 to-purple-200",
+                  ][parseInt(id.slice(0, 8), 16) % 5]
+                }`}
+                style={{
+                  backgroundSize: "200% 200%",
+                  animation: "gradient 15s ease infinite",
+                }}
+              />
+            ) : (
+              <Image
+                src={image_url}
+                alt={`${name} preview image`}
+                width={107}
+                height={58}
+                className="flex-shrink-0 rounded-small object-cover"
+              />
+            )}
          </Link>

-          {can_access_graph && (
+          <div className="mt-auto flex w-full justify-start gap-6 border-t border-zinc-100 pb-1 pt-3">
            <Link
-              href={`/build?flowID=${graph_id}`}
-              data-testid="library-agent-card-open-in-builder-link"
+              href={`/library/agents/${id}`}
+              data-testid="library-agent-card-see-runs-link"
              className="flex items-center gap-1 text-[13px]"
-              isExternal
            >
-              Open in builder <CaretCircleRightIcon size={20} />
+              See runs <CaretCircleRightIcon size={20} />
            </Link>
-          )}
+
+            {can_access_graph && (
+              <Link
+                href={`/build?flowID=${graph_id}`}
+                data-testid="library-agent-card-open-in-builder-link"
+                className="flex items-center gap-1 text-[13px]"
+                isExternal
+              >
+                Open in builder <CaretCircleRightIcon size={20} />
+              </Link>
+            )}
+          </div>
        </div>
-      </div>
+      </motion.div>
    </div>
  );
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/components/AgentCardMenu.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/components/AgentCardMenu.tsx
@@ -5,6 +5,10 @@ import {
  useDeleteV2DeleteLibraryAgent,
  usePostV2ForkLibraryAgent,
 } from "@/app/api/__generated__/endpoints/library/library";
+import {
+  usePostV2BulkMoveAgents,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
 import { LibraryAgent } from "@/app/api/__generated__/models/libraryAgent";
 import { Button } from "@/components/atoms/Button/Button";
 import { Text } from "@/components/atoms/Text/Text";
@@ -22,6 +26,7 @@ import { useQueryClient } from "@tanstack/react-query";
 import Link from "next/link";
 import { useRouter } from "next/navigation";
 import { useState } from "react";
+import { MoveToFolderDialog } from "../../MoveToFolderDialog/MoveToFolderDialog";

 interface AgentCardMenuProps {
  agent: LibraryAgent;
@@ -32,11 +37,25 @@ export function AgentCardMenu({ agent }: AgentCardMenuProps) {
  const queryClient = useQueryClient();
  const router = useRouter();
  const [showDeleteDialog, setShowDeleteDialog] = useState(false);
+  const [showMoveDialog, setShowMoveDialog] = useState(false);
  const [isDeletingAgent, setIsDeletingAgent] = useState(false);
  const [isDuplicatingAgent, setIsDuplicatingAgent] = useState(false);
+  const [isRemovingFromFolder, setIsRemovingFromFolder] = useState(false);

  const { mutateAsync: deleteAgent } = useDeleteV2DeleteLibraryAgent();
  const { mutateAsync: forkAgent } = usePostV2ForkLibraryAgent();
+  const { mutateAsync: bulkMoveAgents } = usePostV2BulkMoveAgents({
+    mutation: {
+      onSuccess: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryAgentsQueryKey(),
+        });
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+      },
+    },
+  });

  async function handleDuplicateAgent() {
    if (!agent.id) return;
@@ -70,6 +89,37 @@ export function AgentCardMenu({ agent }: AgentCardMenuProps) {
    }
  }

+  async function handleRemoveFromFolder() {
+    if (!agent.id) return;
+
+    setIsRemovingFromFolder(true);
+
+    try {
+      await bulkMoveAgents({
+        data: {
+          agent_ids: [agent.id],
+          folder_id: null,
+        },
+      });
+
+      toast({
+        title: "Removed from folder",
+        description: "Agent has been moved back to your library.",
+      });
+    } catch (error: unknown) {
+      toast({
+        title: "Failed to remove from folder",
+        description:
+          error instanceof Error
+            ? error.message
+            : "An unexpected error occurred.",
+        variant: "destructive",
+      });
+    } finally {
+      setIsRemovingFromFolder(false);
+    }
+  }
+
  async function handleDeleteAgent() {
    if (!agent.id) return;

@@ -138,6 +188,31 @@ export function AgentCardMenu({ agent }: AgentCardMenuProps) {
            Duplicate agent
          </DropdownMenuItem>
          <DropdownMenuSeparator />
+          <DropdownMenuItem
+            onClick={(e) => {
+              e.stopPropagation();
+              setShowMoveDialog(true);
+            }}
+            className="flex items-center gap-2"
+          >
+            Move to folder
+          </DropdownMenuItem>
+          {agent.folder_id && (
+            <>
+              <DropdownMenuSeparator />
+              <DropdownMenuItem
+                onClick={(e) => {
+                  e.stopPropagation();
+                  handleRemoveFromFolder();
+                }}
+                disabled={isRemovingFromFolder}
+                className="flex items-center gap-2"
+              >
+                Remove from folder
+              </DropdownMenuItem>
+            </>
+          )}
+          <DropdownMenuSeparator />
          <DropdownMenuItem
            onClick={(e) => {
              e.stopPropagation();
@@ -183,6 +258,14 @@ export function AgentCardMenu({ agent }: AgentCardMenuProps) {
          </div>
        </Dialog.Content>
      </Dialog>
+
+      <MoveToFolderDialog
+        agentId={agent.id}
+        agentName={agent.name}
+        currentFolderId={agent.folder_id}
+        isOpen={showMoveDialog}
+        setIsOpen={setShowMoveDialog}
+      />
    </>
  );
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/components/FavoriteButton.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/components/FavoriteButton.tsx
@@ -3,10 +3,15 @@
 import { cn } from "@/lib/utils";
 import { HeartIcon } from "@phosphor-icons/react";
 import type { MouseEvent } from "react";
+import { useRef } from "react";
+import { motion, AnimatePresence } from "framer-motion";

 interface FavoriteButtonProps {
  isFavorite: boolean;
-  onClick: (e: MouseEvent<HTMLButtonElement>) => void;
+  onClick: (
+    e: MouseEvent<HTMLButtonElement>,
+    position: { x: number; y: number },
+  ) => void;
  className?: string;
 }

@@ -15,25 +20,49 @@ export function FavoriteButton({
  onClick,
  className,
 }: FavoriteButtonProps) {
+  const buttonRef = useRef<HTMLButtonElement>(null);
+
+  function handleClick(e: MouseEvent<HTMLButtonElement>) {
+    const rect = buttonRef.current?.getBoundingClientRect();
+    const position = rect
+      ? {
+          x: rect.left + rect.width / 2 - 12,
+          y: rect.top + rect.height / 2 - 12,
+        }
+      : { x: 0, y: 0 };
+    onClick(e, position);
+  }
+
  return (
    <button
-      onClick={onClick}
+      ref={buttonRef}
+      onClick={handleClick}
      className={cn(
        "rounded-full p-2 transition-all duration-200",
-        "hover:scale-110",
+        "hover:scale-110 active:scale-95",
        !isFavorite && "opacity-0 group-hover:opacity-100",
        className,
      )}
      aria-label={isFavorite ? "Remove from favorites" : "Add to favorites"}
    >
-      <HeartIcon
-        size={20}
-        weight={isFavorite ? "fill" : "regular"}
-        className={cn(
-          "transition-colors duration-200",
-          isFavorite ? "text-red-500" : "text-gray-600 hover:text-red-500",
-        )}
-      />
+      <AnimatePresence mode="wait" initial={false}>
+        <motion.div
+          key={isFavorite ? "filled" : "empty"}
+          initial={{ scale: 0.5, opacity: 0 }}
+          animate={{ scale: 1, opacity: 1 }}
+          exit={{ scale: 0.5, opacity: 0 }}
+          transition={{ type: "spring", damping: 15, stiffness: 300 }}
+        >
+          <HeartIcon
+            size={20}
+            weight={isFavorite ? "fill" : "regular"}
+            className={cn(
+              "transition-colors duration-200",
+              isFavorite ? "text-red-500" : "text-gray-600 hover:text-red-500",
+            )}
+          />
+        </motion.div>
+      </AnimatePresence>
    </button>
  );
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/useLibraryAgentCard.ts
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentCard/useLibraryAgentCard.ts
@@ -14,11 +14,11 @@ import { updateFavoriteInQueries } from "./helpers";

 interface Props {
  agent: LibraryAgent;
+  onFavoriteAdd?: (position: { x: number; y: number }) => void;
 }

-export function useLibraryAgentCard({ agent }: Props) {
-  const { id, name, is_favorite, creator_image_url, marketplace_listing } =
-    agent;
+export function useLibraryAgentCard({ agent, onFavoriteAdd }: Props) {
+  const { id, is_favorite, creator_image_url, marketplace_listing } = agent;

  const isFromMarketplace = Boolean(marketplace_listing);
  const [isFavorite, setIsFavorite] = useState(is_favorite);
@@ -49,26 +49,31 @@ export function useLibraryAgentCard({ agent }: Props) {
    });
  }

-  async function handleToggleFavorite(e: React.MouseEvent) {
+  async function handleToggleFavorite(
+    e: React.MouseEvent,
+    position: { x: number; y: number },
+  ) {
    e.preventDefault();
    e.stopPropagation();

    const newIsFavorite = !isFavorite;

+    // Optimistic update - update UI immediately
    setIsFavorite(newIsFavorite);
    updateQueryData(newIsFavorite);

+    // Trigger animation immediately for adding to favorites
+    if (newIsFavorite && onFavoriteAdd) {
+      onFavoriteAdd(position);
+    }
+
    try {
      await updateLibraryAgent({
        libraryAgentId: id,
        data: { is_favorite: newIsFavorite },
      });
-
-      toast({
-        title: newIsFavorite ? "Added to favorites" : "Removed from favorites",
-        description: `${name} has been ${newIsFavorite ? "added to" : "removed from"} your favorites.`,
-      });
    } catch {
+      // Revert on failure
      setIsFavorite(!newIsFavorite);
      updateQueryData(!newIsFavorite);

--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx
@@ -1,30 +1,123 @@
 "use client";
+
 import { LibraryAgentSort } from "@/app/api/__generated__/models/libraryAgentSort";
 import { LoadingSpinner } from "@/components/atoms/LoadingSpinner/LoadingSpinner";
 import { InfiniteScroll } from "@/components/contextual/InfiniteScroll/InfiniteScroll";
 import { LibraryActionSubHeader } from "../LibraryActionSubHeader/LibraryActionSubHeader";
 import { LibraryAgentCard } from "../LibraryAgentCard/LibraryAgentCard";
+import { LibraryFolder } from "../LibraryFolder/LibraryFolder";
+import { LibrarySubSection } from "../LibrarySubSection/LibrarySubSection";
+import { Button } from "@/components/atoms/Button/Button";
+import { ArrowLeftIcon, HeartIcon } from "@phosphor-icons/react";
+import { Text } from "@/components/atoms/Text/Text";
+import { Tab } from "../LibraryTabs/LibraryTabs";
+import {
+  AnimatePresence,
+  LayoutGroup,
+  motion,
+  useReducedMotion,
+} from "framer-motion";
+import { LibraryFolderEditDialog } from "../LibraryFolderEditDialog/LibraryFolderEditDialog";
+import { LibraryFolderDeleteDialog } from "../LibraryFolderDeleteDialog/LibraryFolderDeleteDialog";
 import { useLibraryAgentList } from "./useLibraryAgentList";

+// cancels the current spring and starts a new one from current state.
+const containerVariants = {
+  hidden: {},
+  show: {},
+  exit: {
+    opacity: 0,
+    filter: "blur(4px)",
+    transition: { duration: 0.12 },
+  },
+};
+
+const reducedContainerVariants = {
+  hidden: {},
+  show: {},
+  exit: {
+    opacity: 0,
+    transition: { duration: 0.12 },
+  },
+};
+
+const itemInitial = {
+  opacity: 0,
+  filter: "blur(4px)",
+};
+
+const itemAnimate = {
+  opacity: 1,
+  filter: "blur(0px)",
+};
+
+const itemTransition = {
+  type: "spring" as const,
+  stiffness: 300,
+  damping: 25,
+  opacity: { duration: 0.2 },
+  filter: { duration: 0.15 },
+};
+
+const reducedItemInitial = { opacity: 0 };
+const reducedItemAnimate = { opacity: 1 };
+const reducedItemTransition = { duration: 0.15 };
+
 interface Props {
  searchTerm: string;
  librarySort: LibraryAgentSort;
  setLibrarySort: (value: LibraryAgentSort) => void;
+  selectedFolderId: string | null;
+  onFolderSelect: (folderId: string | null) => void;
+  tabs: Tab[];
+  activeTab: string;
+  onTabChange: (tabId: string) => void;
 }

 export function LibraryAgentList({
  searchTerm,
  librarySort,
  setLibrarySort,
+  selectedFolderId,
+  onFolderSelect,
+  tabs,
+  activeTab,
+  onTabChange,
 }: Props) {
+  const shouldReduceMotion = useReducedMotion();
+  const activeContainerVariants = shouldReduceMotion
+    ? reducedContainerVariants
+    : containerVariants;
+  const activeInitial = shouldReduceMotion ? reducedItemInitial : itemInitial;
+  const activeAnimate = shouldReduceMotion ? reducedItemAnimate : itemAnimate;
+  const activeTransition = shouldReduceMotion
+    ? reducedItemTransition
+    : itemTransition;
+
  const {
+    isFavoritesTab,
    agentLoading,
    agentCount,
-    allAgents: agents,
+    agents,
    hasNextPage,
    isFetchingNextPage,
    fetchNextPage,
-  } = useLibraryAgentList({ searchTerm, librarySort });
+    foldersData,
+    currentFolder,
+    showFolders,
+    editingFolder,
+    setEditingFolder,
+    deletingFolder,
+    setDeletingFolder,
+    handleAgentDrop,
+    handleFolderDeleted,
+  } = useLibraryAgentList({
+    searchTerm,
+    librarySort,
+    selectedFolderId,
+    onFolderSelect,
+    activeTab,
+  });

  return (
    <>
@@ -32,11 +125,47 @@ export function LibraryAgentList({
        agentCount={agentCount}
        setLibrarySort={setLibrarySort}
      />
-      <div className="px-2">
+      {!selectedFolderId && (
+        <LibrarySubSection
+          tabs={tabs}
+          activeTab={activeTab}
+          onTabChange={onTabChange}
+        />
+      )}
+
+      <div>
+        {selectedFolderId && (
+          <div className="mb-4 flex items-center gap-2">
+            <Button
+              variant="ghost"
+              size="small"
+              onClick={() => onFolderSelect(null)}
+              className="gap-1 text-zinc-500 hover:text-zinc-900"
+            >
+              <ArrowLeftIcon className="h-4 w-4" />
+              My Library
+            </Button>
+            {currentFolder && (
+              <>
+                <Text variant="small" className="text-zinc-400">
+                  /
+                </Text>
+                <Text variant="h4" className="text-zinc-700">
+                  {currentFolder.icon} {currentFolder.name}
+                </Text>
+              </>
+            )}
+          </div>
+        )}
        {agentLoading ? (
          <div className="flex h-[200px] items-center justify-center">
            <LoadingSpinner size="large" />
          </div>
+        ) : isFavoritesTab && agents.length === 0 ? (
+          <div className="flex h-[200px] flex-col items-center justify-center gap-2 text-zinc-500">
+            <HeartIcon className="h-10 w-10" />
+            <Text variant="body">No favorite agents yet</Text>
+          </div>
        ) : (
          <InfiniteScroll
            isFetchingNextPage={isFetchingNextPage}
@@ -44,14 +173,85 @@ export function LibraryAgentList({
            hasNextPage={hasNextPage}
            loader={<LoadingSpinner size="medium" />}
          >
-            <div className="grid grid-cols-1 gap-6 sm:grid-cols-2 md:grid-cols-2 lg:grid-cols-3 xl:grid-cols-4">
-              {agents.map((agent) => (
-                <LibraryAgentCard key={agent.id} agent={agent} />
-              ))}
-            </div>
+            <LayoutGroup>
+              <AnimatePresence mode="popLayout">
+                <motion.div
+                  key={`${activeTab}-${selectedFolderId || "all"}`}
+                  className="grid grid-cols-1 gap-6 sm:grid-cols-2 md:grid-cols-2 lg:grid-cols-3 xl:grid-cols-4"
+                  variants={activeContainerVariants}
+                  initial="hidden"
+                  animate="show"
+                  exit="exit"
+                >
+                  {showFolders &&
+                    foldersData?.folders.map((folder, i) => (
+                      <motion.div
+                        key={folder.id}
+                        initial={activeInitial}
+                        animate={activeAnimate}
+                        transition={{
+                          ...activeTransition,
+                          delay: i * 0.04,
+                        }}
+                      >
+                        <LibraryFolder
+                          id={folder.id}
+                          name={folder.name}
+                          agentCount={folder.agent_count ?? 0}
+                          color={folder.color ?? undefined}
+                          icon={folder.icon ?? "📁"}
+                          onAgentDrop={handleAgentDrop}
+                          onClick={() => onFolderSelect(folder.id)}
+                          onEdit={() => setEditingFolder(folder)}
+                          onDelete={() => setDeletingFolder(folder)}
+                        />
+                      </motion.div>
+                    ))}
+                  {agents.map((agent, i) => (
+                    <motion.div
+                      key={agent.id}
+                      initial={activeInitial}
+                      animate={activeAnimate}
+                      transition={{
+                        ...activeTransition,
+                        delay:
+                          ((showFolders
+                            ? (foldersData?.folders.length ?? 0)
+                            : 0) +
+                            i) *
+                          0.04,
+                      }}
+                    >
+                      <LibraryAgentCard agent={agent} />
+                    </motion.div>
+                  ))}
+                </motion.div>
+              </AnimatePresence>
+            </LayoutGroup>
          </InfiniteScroll>
        )}
      </div>
+
+      {editingFolder && (
+        <LibraryFolderEditDialog
+          folder={editingFolder}
+          isOpen={!!editingFolder}
+          setIsOpen={(open) => {
+            if (!open) setEditingFolder(null);
+          }}
+        />
+      )}
+
+      {deletingFolder && (
+        <LibraryFolderDeleteDialog
+          folder={deletingFolder}
+          isOpen={!!deletingFolder}
+          setIsOpen={(open) => {
+            if (!open) setDeletingFolder(null);
+          }}
+          onDeleted={handleFolderDeleted}
+        />
+      )}
    </>
  );
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts
@@ -1,36 +1,69 @@
 "use client";

 import { useGetV2ListLibraryAgentsInfinite } from "@/app/api/__generated__/endpoints/library/library";
+import { getGetV2ListLibraryAgentsQueryKey } from "@/app/api/__generated__/endpoints/library/library";
+import {
+  useGetV2ListLibraryFolders,
+  usePostV2BulkMoveAgents,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
+import type { getV2ListLibraryFoldersResponseSuccess } from "@/app/api/__generated__/endpoints/folders/folders";
+import type { LibraryFolder } from "@/app/api/__generated__/models/libraryFolder";
 import { LibraryAgentSort } from "@/app/api/__generated__/models/libraryAgentSort";
 import {
+  okData,
  getPaginatedTotalCount,
  getPaginationNextPageNumber,
  unpaginate,
 } from "@/app/api/helpers";
+import { useToast } from "@/components/molecules/Toast/use-toast";
+import { useFavoriteAgents } from "../../hooks/useFavoriteAgents";
 import { getQueryClient } from "@/lib/react-query/queryClient";
-import { useEffect, useRef } from "react";
+import { useQueryClient } from "@tanstack/react-query";
+import { useEffect, useRef, useState } from "react";

 interface Props {
  searchTerm: string;
  librarySort: LibraryAgentSort;
+  selectedFolderId: string | null;
+  onFolderSelect: (folderId: string | null) => void;
+  activeTab: string;
 }

-export function useLibraryAgentList({ searchTerm, librarySort }: Props) {
-  const queryClient = getQueryClient();
+export function useLibraryAgentList({
+  searchTerm,
+  librarySort,
+  selectedFolderId,
+  onFolderSelect,
+  activeTab,
+}: Props) {
+  const isFavoritesTab = activeTab === "favorites";
+  const { toast } = useToast();
+  const stableQueryClient = getQueryClient();
+  const queryClient = useQueryClient();
  const prevSortRef = useRef<LibraryAgentSort | null>(null);

+  const [editingFolder, setEditingFolder] = useState<LibraryFolder | null>(
+    null,
+  );
+  const [deletingFolder, setDeletingFolder] = useState<LibraryFolder | null>(
+    null,
+  );
+
  const {
    data: agentsQueryData,
    fetchNextPage,
    hasNextPage,
    isFetchingNextPage,
-    isLoading: agentLoading,
+    isLoading: allAgentsLoading,
  } = useGetV2ListLibraryAgentsInfinite(
    {
      page: 1,
      page_size: 20,
      search_term: searchTerm || undefined,
      sort_by: librarySort,
+      folder_id: selectedFolderId ?? undefined,
+      include_root_only: selectedFolderId === null ? true : undefined,
    },
    {
      query: {
@@ -39,28 +72,147 @@ export function useLibraryAgentList({ searchTerm, librarySort }: Props) {
    },
  );

-  // Reset queries when sort changes to ensure fresh data with correct sorting
  useEffect(() => {
    if (prevSortRef.current !== null && prevSortRef.current !== librarySort) {
-      // Reset all library agent queries to ensure fresh fetch with new sort
-      queryClient.resetQueries({
+      stableQueryClient.resetQueries({
        queryKey: ["/api/library/agents"],
      });
    }
    prevSortRef.current = librarySort;
-  }, [librarySort, queryClient]);
+  }, [librarySort, stableQueryClient]);

-  const allAgents = agentsQueryData
+  const allAgentsList = agentsQueryData
    ? unpaginate(agentsQueryData, "agents")
    : [];
-  const agentCount = getPaginatedTotalCount(agentsQueryData);
+  const allAgentsCount = getPaginatedTotalCount(agentsQueryData);
+
+  const favoriteAgentsData = useFavoriteAgents({ searchTerm });
+
+  const {
+    agentLoading,
+    agentCount,
+    allAgents: agents,
+    hasNextPage: agentsHasNextPage,
+    isFetchingNextPage: agentsIsFetchingNextPage,
+    fetchNextPage: agentsFetchNextPage,
+  } = isFavoritesTab
+    ? favoriteAgentsData
+    : {
+        agentLoading: allAgentsLoading,
+        agentCount: allAgentsCount,
+        allAgents: allAgentsList,
+        hasNextPage: hasNextPage,
+        isFetchingNextPage: isFetchingNextPage,
+        fetchNextPage: fetchNextPage,
+      };
+
+  const { data: rawFoldersData } = useGetV2ListLibraryFolders(undefined, {
+    query: { select: okData },
+  });
+
+  const foldersData = searchTerm ? undefined : rawFoldersData;
+
+  const { mutate: moveAgentToFolder } = usePostV2BulkMoveAgents({
+    mutation: {
+      onMutate: async ({ data }) => {
+        await queryClient.cancelQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+        await queryClient.cancelQueries({
+          queryKey: getGetV2ListLibraryAgentsQueryKey(),
+        });
+
+        const previousFolders =
+          queryClient.getQueriesData<getV2ListLibraryFoldersResponseSuccess>({
+            queryKey: getGetV2ListLibraryFoldersQueryKey(),
+          });
+
+        if (data.folder_id) {
+          queryClient.setQueriesData<getV2ListLibraryFoldersResponseSuccess>(
+            { queryKey: getGetV2ListLibraryFoldersQueryKey() },
+            (old) => {
+              if (!old?.data?.folders) return old;
+              return {
+                ...old,
+                data: {
+                  ...old.data,
+                  folders: old.data.folders.map((f) =>
+                    f.id === data.folder_id
+                      ? {
+                          ...f,
+                          agent_count:
+                            (f.agent_count ?? 0) + data.agent_ids.length,
+                        }
+                      : f,
+                  ),
+                },
+              };
+            },
+          );
+        }
+
+        return { previousFolders };
+      },
+      onError: (_error, _variables, context) => {
+        if (context?.previousFolders) {
+          for (const [queryKey, data] of context.previousFolders) {
+            queryClient.setQueryData(queryKey, data);
+          }
+        }
+        toast({
+          title: "Error",
+          description: "Failed to move agent. Please try again.",
+          variant: "destructive",
+        });
+      },
+      onSettled: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryAgentsQueryKey(),
+        });
+      },
+    },
+  });
+
+  function handleAgentDrop(agentId: string, folderId: string) {
+    moveAgentToFolder({
+      data: {
+        agent_ids: [agentId],
+        folder_id: folderId,
+      },
+    });
+  }
+
+  const currentFolder = selectedFolderId
+    ? foldersData?.folders.find((f) => f.id === selectedFolderId)
+    : null;
+
+  const showFolders = !isFavoritesTab && !selectedFolderId;
+
+  function handleFolderDeleted() {
+    if (selectedFolderId === deletingFolder?.id) {
+      onFolderSelect(null);
+    }
+  }

  return {
-    allAgents,
+    isFavoritesTab,
    agentLoading,
-    hasNextPage,
    agentCount,
-    isFetchingNextPage,
-    fetchNextPage,
+    agents,
+    hasNextPage: agentsHasNextPage,
+    isFetchingNextPage: agentsIsFetchingNextPage,
+    fetchNextPage: agentsFetchNextPage,
+    foldersData,
+    currentFolder,
+    showFolders,
+    editingFolder,
+    setEditingFolder,
+    deletingFolder,
+    setDeletingFolder,
+    handleAgentDrop,
+    handleFolderDeleted,
  };
 }
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolder/FolderIcon.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolder/FolderIcon.tsx
@@ -0,0 +1,255 @@
+import { motion } from "framer-motion";
+import { Text } from "@/components/atoms/Text/Text";
+
+type FolderSize = "xs" | "sm" | "md" | "lg" | "xl";
+export type FolderColorName = "blue" | "purple" | "emerald" | "orange" | "pink";
+
+export type FolderColor = FolderColorName | (string & {});
+
+const hexToColorName: Record<string, FolderColorName> = {
+  "#3B82F6": "blue",
+  "#3b82f6": "blue",
+  "#A855F7": "purple",
+  "#a855f7": "purple",
+  "#10B981": "emerald",
+  "#10b981": "emerald",
+  "#F97316": "orange",
+  "#f97316": "orange",
+  "#EC4899": "pink",
+  "#ec4899": "pink",
+};
+
+export function resolveColor(color: FolderColor | undefined): FolderColorName {
+  if (!color) return "blue";
+  if (color in hexToColorName) return hexToColorName[color];
+  if (color in colorMap) return color as FolderColorName;
+  return "blue";
+}
+
+interface Props {
+  className?: string;
+  size?: FolderSize | number;
+  color?: FolderColor;
+  icon?: string;
+  isOpen?: boolean;
+}
+
+const sizeMap: Record<FolderSize, number> = {
+  xs: 0.4,
+  sm: 0.75,
+  md: 1,
+  lg: 1.25,
+  xl: 1.5,
+};
+
+const colorMap: Record<
+  FolderColorName,
+  {
+    bg: string;
+    border: string;
+    borderLight: string;
+    fill: string;
+    stroke: string;
+  }
+> = {
+  blue: {
+    bg: "bg-blue-300",
+    border: "border-blue-300",
+    borderLight: "border-blue-200",
+    fill: "fill-blue-300",
+    stroke: "stroke-blue-400",
+  },
+  purple: {
+    bg: "bg-purple-200",
+    border: "border-purple-200",
+    borderLight: "border-purple-200",
+    fill: "fill-purple-200",
+    stroke: "stroke-purple-400",
+  },
+  emerald: {
+    bg: "bg-emerald-300",
+    border: "border-emerald-300",
+    borderLight: "border-emerald-200",
+    fill: "fill-emerald-300",
+    stroke: "stroke-emerald-400",
+  },
+  orange: {
+    bg: "bg-orange-200",
+    border: "border-orange-200",
+    borderLight: "border-orange-200",
+    fill: "fill-orange-200",
+    stroke: "stroke-orange-400",
+  },
+  pink: {
+    bg: "bg-pink-300",
+    border: "border-pink-300",
+    borderLight: "border-pink-200",
+    fill: "fill-pink-300",
+    stroke: "stroke-pink-400",
+  },
+};
+
+export const folderCardStyles: Record<
+  FolderColorName,
+  { bg: string; border: string; buttonBase: string; buttonHover: string }
+> = {
+  blue: {
+    bg: "bg-blue-50",
+    border: "border-blue-200",
+    buttonBase: "border-zinc-600 text-black",
+    buttonHover: "hover:bg-blue-200",
+  },
+  purple: {
+    bg: "bg-purple-50",
+    border: "border-purple-200",
+    buttonBase: "border-zinc-600 text-black ",
+    buttonHover: "hover:bg-purple-200",
+  },
+  emerald: {
+    bg: "bg-emerald-50",
+    border: "border-emerald-200",
+    buttonBase: "border-zinc-600 text-black",
+    buttonHover: "hover:bg-emerald-200",
+  },
+  orange: {
+    bg: "bg-orange-50",
+    border: "border-orange-200",
+    buttonBase: "border-zinc-600 text-black",
+    buttonHover: "hover:bg-orange-200",
+  },
+  pink: {
+    bg: "bg-pink-50",
+    border: "border-pink-200",
+    buttonBase: "border-zinc-600 text-black",
+    buttonHover: "hover:bg-pink-200",
+  },
+};
+
+export function FolderIcon({
+  className = "",
+  size = "xs",
+  color = "blue",
+  icon,
+  isOpen = false,
+}: Props) {
+  const scale = typeof size === "number" ? size : sizeMap[size];
+  const resolvedColor = resolveColor(color);
+  const colors = colorMap[resolvedColor];
+
+  return (
+    <div
+      className={`group relative cursor-pointer ${className}`}
+      style={{
+        width: 320 * scale,
+        height: 208 * scale,
+      }}
+    >
+      <div
+        className="h-52 w-80 origin-top-left"
+        style={{ transform: `scale(${scale})`, perspective: "500px" }}
+      >
+        <div
+          className={`folder-back relative mx-auto flex h-full w-[87.5%] justify-center overflow-visible rounded-3xl ${colors.bg} ${colors.border}`}
+        >
+          {[
+            {
+              initial: { rotate: -3, x: -38, y: 2 },
+              open: { rotate: -8, x: -70, y: -75 },
+              transition: {
+                type: "spring" as const,
+                bounce: 0.15,
+                stiffness: 160,
+                damping: 22,
+              },
+              className: "z-10",
+            },
+            {
+              initial: { rotate: 0, x: 0, y: 0 },
+              open: { rotate: 1, x: 2, y: -95 },
+              transition: {
+                type: "spring" as const,
+                duration: 0.55,
+                bounce: 0.12,
+                stiffness: 190,
+                damping: 24,
+              },
+              className: "z-20",
+            },
+            {
+              initial: { rotate: 3.5, x: 42, y: 1 },
+              open: { rotate: 9, x: 75, y: -80 },
+              transition: {
+                type: "spring" as const,
+                duration: 0.58,
+                bounce: 0.17,
+                stiffness: 170,
+                damping: 21,
+              },
+              className: "z-10",
+            },
+          ].map((page, i) => (
+            <motion.div
+              key={i}
+              initial={page.initial}
+              animate={isOpen ? page.open : page.initial}
+              transition={page.transition}
+              className={`absolute top-2 h-fit w-32 rounded-xl shadow-lg ${page.className}`}
+            >
+              <Page color={resolvedColor} />
+            </motion.div>
+          ))}
+        </div>
+
+        <motion.div
+          animate={{
+            rotateX: isOpen ? -15 : 0,
+          }}
+          transition={{ type: "spring", duration: 0.5, bounce: 0.25 }}
+          className="absolute inset-x-0 -bottom-px z-30 mx-auto flex h-44 w-[87.5%] origin-bottom items-end justify-center overflow-visible"
+          style={{ transformStyle: "preserve-3d" }}
+        >
+          <svg
+            className="h-auto w-full"
+            viewBox="0 0 173 109"
+            fill="none"
+            xmlns="http://www.w3.org/2000/svg"
+            preserveAspectRatio="none"
+          >
+            <path
+              className={`${colors.fill} ${colors.stroke}`}
+              d="M15.0423 0.500003C0.5 0.500009 0.5 14.2547 0.5 14.2547V92.5C0.5 101.337 7.66344 108.5 16.5 108.5H156.5C165.337 108.5 172.5 101.337 172.5 92.5V34.3302C172.5 25.4936 165.355 18.3302 156.519 18.3302H108.211C98.1341 18.3302 91.2921 5.57144 82.0156 1.63525C80.3338 0.921645 78.2634 0.500002 75.7187 0.500003H15.0423Z"
+            />
+          </svg>
+          <div className="absolute inset-0 flex items-center justify-center text-7xl">
+            {icon}
+          </div>
+        </motion.div>
+      </div>
+    </div>
+  );
+}
+
+interface PageProps {
+  color: FolderColorName;
+}
+
+function Page({ color = "blue" }: PageProps) {
+  const colors = colorMap[color];
+  return (
+    <div
+      className={`h-full w-full rounded-xl border bg-white p-4 ${colors.borderLight}`}
+    >
+      <div className="flex flex-col gap-2">
+        <Text variant="h5" className="text-black">
+          agent.json
+        </Text>
+        {Array.from({ length: 8 }).map((_, i) => (
+          <div key={i} className="flex gap-2">
+            <div className="h-1.5 flex-1 rounded-full bg-neutral-100" />
+            <div className="h-1.5 flex-1 rounded-full bg-neutral-100" />
+          </div>
+        ))}
+      </div>
+    </div>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolder/LibraryFolder.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolder/LibraryFolder.tsx
@@ -0,0 +1,136 @@
+"use client";
+
+import { Text } from "@/components/atoms/Text/Text";
+import { Button } from "@/components/atoms/Button/Button";
+import {
+  FolderIcon,
+  FolderColor,
+  folderCardStyles,
+  resolveColor,
+} from "./FolderIcon";
+import { useState } from "react";
+import { PencilSimpleIcon, TrashIcon } from "@phosphor-icons/react";
+
+interface Props {
+  id: string;
+  name: string;
+  agentCount: number;
+  color?: FolderColor;
+  icon: string;
+  onEdit?: () => void;
+  onDelete?: () => void;
+  onAgentDrop?: (agentId: string, folderId: string) => void;
+  onClick?: () => void;
+}
+
+export function LibraryFolder({
+  id,
+  name,
+  agentCount,
+  color,
+  icon,
+  onEdit,
+  onDelete,
+  onAgentDrop,
+  onClick,
+}: Props) {
+  const [isHovered, setIsHovered] = useState(false);
+  const [isDragOver, setIsDragOver] = useState(false);
+  const resolvedColor = resolveColor(color);
+  const cardStyle = folderCardStyles[resolvedColor];
+
+  function handleDragOver(e: React.DragEvent<HTMLDivElement>) {
+    if (e.dataTransfer.types.includes("application/agent-id")) {
+      e.preventDefault();
+      e.dataTransfer.dropEffect = "move";
+      setIsDragOver(true);
+    }
+  }
+
+  function handleDragLeave() {
+    setIsDragOver(false);
+  }
+
+  function handleDrop(e: React.DragEvent<HTMLDivElement>) {
+    e.preventDefault();
+    setIsDragOver(false);
+    const agentId = e.dataTransfer.getData("application/agent-id");
+    if (agentId && onAgentDrop) {
+      onAgentDrop(agentId, id);
+    }
+  }
+
+  return (
+    <div
+      data-testid="library-folder"
+      data-folder-id={id}
+      className={`group relative inline-flex h-[10.625rem] w-full max-w-[25rem] cursor-pointer flex-col items-start justify-between gap-2.5 rounded-medium border p-4 transition-all duration-200 hover:shadow-md ${
+        isDragOver
+          ? "border-blue-400 bg-blue-50 ring-2 ring-blue-200"
+          : `${cardStyle.border} ${cardStyle.bg}`
+      }`}
+      onMouseEnter={() => setIsHovered(true)}
+      onMouseLeave={() => setIsHovered(false)}
+      onDragOver={handleDragOver}
+      onDragLeave={handleDragLeave}
+      onDrop={handleDrop}
+      onClick={onClick}
+    >
+      <div className="flex w-full items-start justify-between gap-4">
+        {/* Left side - Folder name and agent count */}
+        <div className="flex flex-1 flex-col gap-2">
+          <Text
+            variant="h5"
+            data-testid="library-folder-name"
+            className="line-clamp-2 hyphens-auto break-words"
+          >
+            {name}
+          </Text>
+          <Text
+            variant="small"
+            className="text-zinc-500"
+            data-testid="library-folder-agent-count"
+          >
+            {agentCount} {agentCount === 1 ? "agent" : "agents"}
+          </Text>
+        </div>
+
+        {/* Right side - Custom folder icon */}
+        <div className="flex-shrink-0">
+          <FolderIcon isOpen={isHovered} color={color} icon={icon} />
+        </div>
+      </div>
+
+      {/* Action buttons - visible on hover */}
+      <div
+        className="flex items-center justify-end gap-2"
+        data-testid="library-folder-actions"
+      >
+        <Button
+          variant="icon"
+          size="icon"
+          aria-label="Edit folder"
+          onClick={(e) => {
+            e.stopPropagation();
+            onEdit?.();
+          }}
+          className={`h-8 w-8 border p-2 ${cardStyle.buttonBase} ${cardStyle.buttonHover}`}
+        >
+          <PencilSimpleIcon className="h-4 w-4" />
+        </Button>
+        <Button
+          variant="icon"
+          size="icon"
+          aria-label="Delete folder"
+          onClick={(e) => {
+            e.stopPropagation();
+            onDelete?.();
+          }}
+          className={`h-8 w-8 border p-2 ${cardStyle.buttonBase} ${cardStyle.buttonHover}`}
+        >
+          <TrashIcon className="h-4 w-4" />
+        </Button>
+      </div>
+    </div>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx
@@ -0,0 +1,224 @@
+"use client";
+import { Button } from "@/components/atoms/Button/Button";
+import { Input } from "@/components/atoms/Input/Input";
+import { Select } from "@/components/atoms/Select/Select";
+import { Text } from "@/components/atoms/Text/Text";
+import { Dialog } from "@/components/molecules/Dialog/Dialog";
+import {
+  Form,
+  FormControl,
+  FormField,
+  FormItem,
+  FormMessage,
+} from "@/components/molecules/Form/Form";
+import { zodResolver } from "@hookform/resolvers/zod";
+import { FolderSimpleIcon } from "@phosphor-icons/react";
+import { useState } from "react";
+import { useForm } from "react-hook-form";
+import { z } from "zod";
+import dynamic from "next/dynamic";
+import {
+  usePostV2CreateFolder,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
+import { useToast } from "@/components/molecules/Toast/use-toast";
+import { useQueryClient } from "@tanstack/react-query";
+import { FOLDER_COLORS } from "../folder-constants";
+
+const LazyEmojiPicker = dynamic(
+  () =>
+    import("../LazyEmojiPicker").then((mod) => ({
+      default: mod.LazyEmojiPicker,
+    })),
+  { ssr: false },
+);
+
+export const libraryFolderCreationFormSchema = z.object({
+  folderName: z
+    .string()
+    .min(1, "Folder name is required")
+    .max(100, "Folder name must be 100 characters or less"),
+  folderColor: z.string().min(1, "Folder color is required"),
+  folderIcon: z.string().min(1, "Folder icon is required"),
+});
+
+export default function LibraryFolderCreationDialog() {
+  const [isOpen, setIsOpen] = useState(false);
+  const queryClient = useQueryClient();
+  const { toast } = useToast();
+
+  const { mutate: createFolder, isPending } = usePostV2CreateFolder({
+    mutation: {
+      onSuccess: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+        setIsOpen(false);
+        form.reset();
+        toast({
+          title: "Folder created",
+          description: "Your folder has been created successfully.",
+        });
+      },
+      onError: () => {
+        toast({
+          title: "Error",
+          description: "Failed to create folder. Please try again.",
+          variant: "destructive",
+        });
+      },
+    },
+  });
+
+  const form = useForm<z.infer<typeof libraryFolderCreationFormSchema>>({
+    resolver: zodResolver(libraryFolderCreationFormSchema),
+    defaultValues: {
+      folderName: "",
+      folderColor: "",
+      folderIcon: "",
+    },
+  });
+
+  function onSubmit(values: z.infer<typeof libraryFolderCreationFormSchema>) {
+    createFolder({
+      data: {
+        name: values.folderName.trim(),
+        color: values.folderColor,
+        icon: values.folderIcon,
+      },
+    });
+  }
+
+  return (
+    <Dialog
+      title="Create Folder"
+      styling={{ maxWidth: "30rem" }}
+      controlled={{
+        isOpen,
+        set: setIsOpen,
+      }}
+      onClose={() => {
+        setIsOpen(false);
+      }}
+    >
+      <Dialog.Trigger>
+        <Button
+          data-testid="upload-agent-button"
+          variant="secondary"
+          className="h-fit w-fit"
+          size="small"
+        >
+          <FolderSimpleIcon width={18} height={18} />
+          <span className="create-folder">Create folder</span>
+        </Button>
+      </Dialog.Trigger>
+      <Dialog.Content>
+        <Form
+          form={form}
+          onSubmit={(values) => onSubmit(values)}
+          className="flex flex-col justify-center gap-2 px-1"
+        >
+          <FormField
+            control={form.control}
+            name="folderName"
+            render={({ field }) => (
+              <FormItem>
+                <FormControl>
+                  <Input
+                    {...field}
+                    id={field.name}
+                    label="Folder name"
+                    placeholder="Enter folder name"
+                    className="!mb-0 w-full"
+                    wrapperClassName="!mb-0"
+                  />
+                </FormControl>
+                <FormMessage />
+              </FormItem>
+            )}
+          />
+
+          <FormField
+            control={form.control}
+            name="folderColor"
+            render={({ field }) => (
+              <FormItem>
+                <FormControl>
+                  <Select
+                    id="folderColor"
+                    label="Folder color"
+                    placeholder="Select a color"
+                    value={field.value}
+                    onValueChange={field.onChange}
+                    options={FOLDER_COLORS.map((color) => ({
+                      value: color.value,
+                      label: color.label,
+                      icon: (
+                        <div
+                          className="h-4 w-4 rounded-full"
+                          style={{ backgroundColor: color.value }}
+                        />
+                      ),
+                    }))}
+                    wrapperClassName="!mb-0"
+                    renderItem={(option) => (
+                      <div className="flex items-center gap-2">
+                        {option.icon}
+                        <span>{option.label}</span>
+                      </div>
+                    )}
+                  />
+                </FormControl>
+                <FormMessage />
+              </FormItem>
+            )}
+          />
+
+          <FormField
+            control={form.control}
+            name="folderIcon"
+            render={({ field }) => (
+              <FormItem>
+                <div className="flex flex-col gap-2">
+                  <Text variant="large-medium" as="span" className="text-black">
+                    Folder icon
+                  </Text>
+                  <div className="flex flex-col gap-3">
+                    <div className="flex items-center gap-3">
+                      <Text variant="small" className="text-zinc-500">
+                        Selected:
+                      </Text>
+                      <div className="flex h-10 w-10 items-center justify-center rounded-lg border border-zinc-200 bg-zinc-50 text-2xl">
+                        {form.watch("folderIcon") || (
+                          <span className="text-sm text-zinc-400">—</span>
+                        )}
+                      </div>
+                    </div>
+                    <div className="h-[295px] w-full overflow-hidden">
+                      <LazyEmojiPicker
+                        onEmojiSelect={(emoji) => {
+                          field.onChange(emoji);
+                        }}
+                      />
+                    </div>
+                  </div>
+                  <FormMessage />
+                </div>
+              </FormItem>
+            )}
+          />
+
+          <Button
+            type="submit"
+            variant="primary"
+            className="mt-2 min-w-[18rem]"
+            disabled={!form.formState.isValid || isPending}
+            loading={isPending}
+          >
+            Create
+          </Button>
+        </Form>
+      </Dialog.Content>
+    </Dialog>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderDeleteDialog/LibraryFolderDeleteDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderDeleteDialog/LibraryFolderDeleteDialog.tsx
@@ -0,0 +1,96 @@
+"use client";
+
+import { Button } from "@/components/atoms/Button/Button";
+import { Text } from "@/components/atoms/Text/Text";
+import { Dialog } from "@/components/molecules/Dialog/Dialog";
+import { useToast } from "@/components/molecules/Toast/use-toast";
+import {
+  useDeleteV2DeleteFolder,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
+import { getGetV2ListLibraryAgentsQueryKey } from "@/app/api/__generated__/endpoints/library/library";
+import { useQueryClient } from "@tanstack/react-query";
+import type { LibraryFolder } from "@/app/api/__generated__/models/libraryFolder";
+
+interface Props {
+  folder: LibraryFolder;
+  isOpen: boolean;
+  setIsOpen: (open: boolean) => void;
+  onDeleted?: () => void;
+}
+
+export function LibraryFolderDeleteDialog({
+  folder,
+  isOpen,
+  setIsOpen,
+  onDeleted,
+}: Props) {
+  const queryClient = useQueryClient();
+  const { toast } = useToast();
+
+  const { mutate: deleteFolder, isPending } = useDeleteV2DeleteFolder({
+    mutation: {
+      onSuccess: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryAgentsQueryKey(),
+        });
+        toast({
+          title: "Folder deleted",
+          description: `"${folder.name}" has been deleted.`,
+        });
+        setIsOpen(false);
+        onDeleted?.();
+      },
+      onError: () => {
+        toast({
+          title: "Error",
+          description: "Failed to delete folder. Please try again.",
+          variant: "destructive",
+        });
+      },
+    },
+  });
+
+  function handleDelete() {
+    deleteFolder({ folderId: folder.id });
+  }
+
+  return (
+    <Dialog
+      controlled={{
+        isOpen,
+        set: setIsOpen,
+      }}
+      styling={{ maxWidth: "32rem" }}
+      title="Delete folder"
+    >
+      <Dialog.Content>
+        <div>
+          <Text variant="large">
+            Are you sure you want to delete &ldquo;{folder.name}&rdquo;? Agents
+            inside this folder will be moved back to your library.
+          </Text>
+          <Dialog.Footer>
+            <Button
+              variant="secondary"
+              disabled={isPending}
+              onClick={() => setIsOpen(false)}
+            >
+              Cancel
+            </Button>
+            <Button
+              variant="destructive"
+              onClick={handleDelete}
+              loading={isPending}
+            >
+              Delete Folder
+            </Button>
+          </Dialog.Footer>
+        </div>
+      </Dialog.Content>
+    </Dialog>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx
@@ -0,0 +1,282 @@
+"use client";
+
+import { Button } from "@/components/atoms/Button/Button";
+import { Input } from "@/components/atoms/Input/Input";
+import { Select } from "@/components/atoms/Select/Select";
+import { Text } from "@/components/atoms/Text/Text";
+import { Dialog } from "@/components/molecules/Dialog/Dialog";
+import {
+  Form,
+  FormControl,
+  FormField,
+  FormItem,
+  FormMessage,
+} from "@/components/molecules/Form/Form";
+import { useToast } from "@/components/molecules/Toast/use-toast";
+import { zodResolver } from "@hookform/resolvers/zod";
+import { useEffect } from "react";
+import { useForm } from "react-hook-form";
+import { z } from "zod";
+import dynamic from "next/dynamic";
+import {
+  usePatchV2UpdateFolder,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
+import { useQueryClient } from "@tanstack/react-query";
+import type { LibraryFolder } from "@/app/api/__generated__/models/libraryFolder";
+import type { getV2ListLibraryFoldersResponseSuccess } from "@/app/api/__generated__/endpoints/folders/folders";
+import { ApiError } from "@/lib/autogpt-server-api/helpers";
+import { FOLDER_COLORS } from "../folder-constants";
+
+const LazyEmojiPicker = dynamic(
+  () =>
+    import("../LazyEmojiPicker").then((mod) => ({
+      default: mod.LazyEmojiPicker,
+    })),
+  { ssr: false },
+);
+
+const editFolderSchema = z.object({
+  folderName: z
+    .string()
+    .min(1, "Folder name is required")
+    .max(100, "Folder name must be 100 characters or less"),
+  folderColor: z.string().min(1, "Folder color is required"),
+  folderIcon: z.string().min(1, "Folder icon is required"),
+});
+
+interface Props {
+  folder: LibraryFolder;
+  isOpen: boolean;
+  setIsOpen: (open: boolean) => void;
+}
+
+export function LibraryFolderEditDialog({ folder, isOpen, setIsOpen }: Props) {
+  const queryClient = useQueryClient();
+  const { toast } = useToast();
+
+  const form = useForm<z.infer<typeof editFolderSchema>>({
+    resolver: zodResolver(editFolderSchema),
+    defaultValues: {
+      folderName: folder.name,
+      folderColor: folder.color ?? "",
+      folderIcon: folder.icon ?? "",
+    },
+  });
+
+  useEffect(() => {
+    if (isOpen) {
+      form.reset({
+        folderName: folder.name,
+        folderColor: folder.color ?? "",
+        folderIcon: folder.icon ?? "",
+      });
+    }
+  }, [isOpen, folder, form]);
+
+  const { mutate: updateFolder, isPending } = usePatchV2UpdateFolder({
+    mutation: {
+      onMutate: async ({ folderId, data }) => {
+        await queryClient.cancelQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+
+        const previousData =
+          queryClient.getQueriesData<getV2ListLibraryFoldersResponseSuccess>({
+            queryKey: getGetV2ListLibraryFoldersQueryKey(),
+          });
+
+        queryClient.setQueriesData<getV2ListLibraryFoldersResponseSuccess>(
+          { queryKey: getGetV2ListLibraryFoldersQueryKey() },
+          (old) => {
+            if (!old?.data?.folders) return old;
+            return {
+              ...old,
+              data: {
+                ...old.data,
+                folders: old.data.folders.map((f) =>
+                  f.id === folderId
+                    ? {
+                        ...f,
+                        name: data.name ?? f.name,
+                        color: data.color ?? f.color,
+                        icon: data.icon ?? f.icon,
+                      }
+                    : f,
+                ),
+              },
+            };
+          },
+        );
+
+        return { previousData };
+      },
+      onError: (error: unknown, _variables, context) => {
+        if (context?.previousData) {
+          for (const [queryKey, data] of context.previousData) {
+            queryClient.setQueryData(queryKey, data);
+          }
+        }
+        if (error instanceof ApiError) {
+          const detail = (error.response as any)?.detail ?? "";
+          if (
+            typeof detail === "string" &&
+            detail.toLowerCase().includes("already exists")
+          ) {
+            form.setError("folderName", {
+              message: "A folder with this name already exists",
+            });
+            return;
+          }
+        }
+        toast({
+          title: "Error",
+          description: "Failed to update folder. Please try again.",
+          variant: "destructive",
+        });
+      },
+      onSuccess: () => {
+        setIsOpen(false);
+        toast({
+          title: "Folder updated",
+          description: "Your folder has been updated successfully.",
+        });
+      },
+      onSettled: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+      },
+    },
+  });
+
+  function onSubmit(values: z.infer<typeof editFolderSchema>) {
+    updateFolder({
+      folderId: folder.id,
+      data: {
+        name: values.folderName.trim(),
+        color: values.folderColor,
+        icon: values.folderIcon,
+      },
+    });
+  }
+
+  return (
+    <Dialog
+      title="Edit Folder"
+      styling={{ maxWidth: "30rem" }}
+      controlled={{
+        isOpen,
+        set: setIsOpen,
+      }}
+    >
+      <Dialog.Content>
+        <Form
+          form={form}
+          onSubmit={(values) => onSubmit(values)}
+          className="flex flex-col justify-center gap-2 px-1"
+        >
+          <FormField
+            control={form.control}
+            name="folderName"
+            render={({ field }) => (
+              <FormItem>
+                <FormControl>
+                  <Input
+                    {...field}
+                    id={field.name}
+                    label="Folder name"
+                    placeholder="Enter folder name"
+                    className="w-full"
+                    wrapperClassName="!mb-0"
+                  />
+                </FormControl>
+                <FormMessage />
+              </FormItem>
+            )}
+          />
+
+          <FormField
+            control={form.control}
+            name="folderColor"
+            render={({ field }) => (
+              <FormItem>
+                <FormControl>
+                  <Select
+                    id="folderColor"
+                    label="Folder color"
+                    placeholder="Select a color"
+                    value={field.value}
+                    onValueChange={field.onChange}
+                    wrapperClassName="!mb-0"
+                    options={FOLDER_COLORS.map((color) => ({
+                      value: color.value,
+                      label: color.label,
+                      icon: (
+                        <div
+                          className="h-4 w-4 rounded-full"
+                          style={{ backgroundColor: color.value }}
+                        />
+                      ),
+                    }))}
+                    renderItem={(option) => (
+                      <div className="flex items-center gap-2">
+                        {option.icon}
+                        <span>{option.label}</span>
+                      </div>
+                    )}
+                  />
+                </FormControl>
+                <FormMessage />
+              </FormItem>
+            )}
+          />
+
+          <FormField
+            control={form.control}
+            name="folderIcon"
+            render={({ field }) => (
+              <FormItem>
+                <div className="flex flex-col gap-2">
+                  <Text variant="large-medium" as="span" className="text-black">
+                    Folder icon
+                  </Text>
+                  <div className="flex flex-col gap-3">
+                    <div className="flex items-center gap-3">
+                      <Text variant="small" className="text-zinc-500">
+                        Selected:
+                      </Text>
+                      <div className="flex h-10 w-10 items-center justify-center rounded-lg border border-zinc-200 bg-zinc-50 text-2xl">
+                        {form.watch("folderIcon") || (
+                          <span className="text-sm text-zinc-400">—</span>
+                        )}
+                      </div>
+                    </div>
+                    <div className="h-[295px] w-full overflow-hidden">
+                      <LazyEmojiPicker
+                        onEmojiSelect={(emoji) => {
+                          field.onChange(emoji);
+                        }}
+                      />
+                    </div>
+                  </div>
+                  <FormMessage />
+                </div>
+              </FormItem>
+            )}
+          />
+
+          <Button
+            type="submit"
+            variant="primary"
+            className="mt-2 min-w-[18rem]"
+            disabled={!form.formState.isValid || isPending}
+            loading={isPending}
+          >
+            Save Changes
+          </Button>
+        </Form>
+      </Dialog.Content>
+    </Dialog>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibrarySubSection/LibrarySubSection.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibrarySubSection/LibrarySubSection.tsx
@@ -0,0 +1,21 @@
+import LibraryFolderCreationDialog from "../LibraryFolderCreationDialog/LibraryFolderCreationDialog";
+import { LibraryTabs, Tab } from "../LibraryTabs/LibraryTabs";
+
+interface Props {
+  tabs: Tab[];
+  activeTab: string;
+  onTabChange: (tabId: string) => void;
+}
+
+export function LibrarySubSection({ tabs, activeTab, onTabChange }: Props) {
+  return (
+    <div className="flex items-center justify-between gap-4">
+      <LibraryTabs
+        tabs={tabs}
+        activeTab={activeTab}
+        onTabChange={onTabChange}
+      />
+      <LibraryFolderCreationDialog />
+    </div>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryTabs/LibraryTabs.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryTabs/LibraryTabs.tsx
@@ -0,0 +1,147 @@
+"use client";
+
+import { useState, useEffect, useRef } from "react";
+import { motion } from "framer-motion";
+import { cn } from "@/lib/utils";
+import { Icon } from "@phosphor-icons/react";
+import { useFavoriteAnimation } from "../../context/FavoriteAnimationContext";
+
+export interface Tab {
+  id: string;
+  title: string;
+  icon: Icon;
+}
+
+interface Props {
+  tabs: Tab[];
+  activeTab: string;
+  onTabChange: (tabId: string) => void;
+  layoutId?: string;
+}
+
+export function LibraryTabs({
+  tabs,
+  activeTab,
+  onTabChange,
+  layoutId = "library-tabs",
+}: Props) {
+  const { registerFavoritesTabRef } = useFavoriteAnimation();
+
+  return (
+    <div className="flex items-center gap-2">
+      {tabs.map((tab) => (
+        <TabButton
+          key={tab.id}
+          tab={tab}
+          isActive={activeTab === tab.id}
+          onSelect={onTabChange}
+          layoutId={layoutId}
+          onRefReady={
+            tab.id === "favorites" ? registerFavoritesTabRef : undefined
+          }
+        />
+      ))}
+    </div>
+  );
+}
+
+interface TabButtonProps {
+  tab: Tab;
+  isActive: boolean;
+  onSelect: (tabId: string) => void;
+  layoutId: string;
+  onRefReady?: (element: HTMLElement | null) => void;
+}
+
+function TabButton({
+  tab,
+  isActive,
+  onSelect,
+  layoutId,
+  onRefReady,
+}: TabButtonProps) {
+  const [isLoaded, setIsLoaded] = useState(false);
+  const buttonRef = useRef<HTMLDivElement>(null);
+
+  useEffect(() => {
+    if (isActive && !isLoaded) {
+      setIsLoaded(true);
+    }
+  }, [isActive, isLoaded]);
+
+  useEffect(() => {
+    if (onRefReady) {
+      onRefReady(buttonRef.current);
+    }
+  }, [onRefReady]);
+
+  const ButtonIcon = tab.icon;
+  const activeColor = "text-primary";
+
+  return (
+    <motion.div
+      ref={buttonRef}
+      layoutId={`${layoutId}-button-${tab.id}`}
+      transition={{
+        layout: {
+          type: "spring",
+          damping: 20,
+          stiffness: 230,
+          mass: 1.2,
+          ease: [0.215, 0.61, 0.355, 1],
+        },
+      }}
+      onClick={() => {
+        onSelect(tab.id);
+        setIsLoaded(true);
+      }}
+      className="flex h-fit w-fit"
+      style={{ willChange: "transform" }}
+    >
+      <motion.div
+        layout
+        transition={{
+          layout: {
+            type: "spring",
+            damping: 20,
+            stiffness: 230,
+            mass: 1.2,
+          },
+        }}
+        className={cn(
+          "flex h-fit cursor-pointer items-center gap-1.5 overflow-hidden border border-zinc-200 px-3 py-2 text-black transition-colors duration-75 ease-out hover:border-zinc-300 hover:bg-zinc-300",
+          isActive && activeColor,
+          isActive ? "px-4" : "px-3",
+        )}
+        style={{
+          borderRadius: "25px",
+        }}
+      >
+        <motion.div
+          layoutId={`${layoutId}-icon-${tab.id}`}
+          className="shrink-0"
+        >
+          <ButtonIcon size={18} />
+        </motion.div>
+        {isActive && (
+          <motion.div
+            className="flex items-center"
+            initial={isLoaded ? { opacity: 0, filter: "blur(4px)" } : false}
+            animate={{ opacity: 1, filter: "blur(0px)" }}
+            transition={{
+              duration: isLoaded ? 0.2 : 0,
+              ease: [0.86, 0, 0.07, 1],
+            }}
+          >
+            <motion.span
+              layoutId={`${layoutId}-text-${tab.id}`}
+              className="font-sans text-sm font-medium text-black"
+            >
+              {tab.title}
+            </motion.span>
+          </motion.div>
+        )}
+      </motion.div>
+    </motion.div>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/MoveToFolderDialog/MoveToFolderDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/MoveToFolderDialog/MoveToFolderDialog.tsx
@@ -0,0 +1,170 @@
+"use client";
+
+import { Button } from "@/components/atoms/Button/Button";
+import { Input } from "@/components/atoms/Input/Input";
+import { Text } from "@/components/atoms/Text/Text";
+import { Dialog } from "@/components/molecules/Dialog/Dialog";
+import { useToast } from "@/components/molecules/Toast/use-toast";
+import {
+  useGetV2ListLibraryFolders,
+  usePostV2BulkMoveAgents,
+  getGetV2ListLibraryFoldersQueryKey,
+} from "@/app/api/__generated__/endpoints/folders/folders";
+import { getGetV2ListLibraryAgentsQueryKey } from "@/app/api/__generated__/endpoints/library/library";
+import { okData } from "@/app/api/helpers";
+import { useQueryClient } from "@tanstack/react-query";
+import { useMemo, useState } from "react";
+import type { LibraryFolder } from "@/app/api/__generated__/models/libraryFolder";
+
+interface Props {
+  agentId: string;
+  agentName: string;
+  currentFolderId?: string | null;
+  isOpen: boolean;
+  setIsOpen: (open: boolean) => void;
+}
+
+export function MoveToFolderDialog({
+  agentId,
+  agentName,
+  currentFolderId,
+  isOpen,
+  setIsOpen,
+}: Props) {
+  const queryClient = useQueryClient();
+  const { toast } = useToast();
+  const [search, setSearch] = useState("");
+
+  const { data: foldersData } = useGetV2ListLibraryFolders(undefined, {
+    query: { select: okData },
+  });
+
+  const { mutate: moveAgent, isPending } = usePostV2BulkMoveAgents({
+    mutation: {
+      onSuccess: () => {
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryAgentsQueryKey(),
+        });
+        queryClient.invalidateQueries({
+          queryKey: getGetV2ListLibraryFoldersQueryKey(),
+        });
+        setIsOpen(false);
+        setSearch("");
+        toast({
+          title: "Agent moved",
+          description: `"${agentName}" has been moved.`,
+        });
+      },
+      onError: () => {
+        toast({
+          title: "Error",
+          description: "Failed to move agent. Please try again.",
+          variant: "destructive",
+        });
+      },
+    },
+  });
+
+  const hierarchicalFolders = useMemo(() => {
+    const allFolders = foldersData?.folders ?? [];
+    const result: { folder: LibraryFolder; depth: number }[] = [];
+
+    function addChildren(parentId: string | null, depth: number) {
+      for (const f of allFolders) {
+        if ((f.parent_id ?? null) === parentId) {
+          result.push({ folder: f, depth });
+          addChildren(f.id, depth + 1);
+        }
+      }
+    }
+
+    addChildren(null, 0);
+    return result;
+  }, [foldersData]);
+
+  const folders = hierarchicalFolders.filter(
+    ({ folder: f }) =>
+      f.id !== currentFolderId &&
+      f.name.toLowerCase().includes(search.toLowerCase()),
+  );
+
+  function handleMoveToFolder(folderId: string | null) {
+    moveAgent({
+      data: {
+        agent_ids: [agentId],
+        folder_id: folderId,
+      },
+    });
+  }
+
+  return (
+    <Dialog
+      controlled={{ isOpen, set: setIsOpen }}
+      styling={{ maxWidth: "28rem" }}
+      title="Move to folder"
+      onClose={() => {
+        setSearch("");
+      }}
+    >
+      <Dialog.Content>
+        <div className="flex flex-col gap-3">
+          <Input
+            id="search-folders"
+            label="Search folders"
+            placeholder="Search folders..."
+            value={search}
+            onChange={(e) => setSearch(e.target.value)}
+            className="w-full"
+          />
+          <div className="max-h-[280px] overflow-y-auto">
+            {folders.length === 0 ? (
+              <div className="flex h-20 items-center justify-center">
+                <Text variant="small" className="text-zinc-400">
+                  No folders found
+                </Text>
+              </div>
+            ) : (
+              <div className="flex flex-col gap-1">
+                {currentFolderId && (
+                  <Button
+                    variant="ghost"
+                    className="w-full justify-start gap-3 px-3 py-2.5"
+                    disabled={isPending}
+                    onClick={() => handleMoveToFolder(null)}
+                  >
+                    <span className="text-lg">📂</span>
+                    <div className="flex flex-col items-start">
+                      <Text variant="small-medium">My Library (root)</Text>
+                      <Text variant="small" className="text-zinc-400">
+                        Remove from folder
+                      </Text>
+                    </div>
+                  </Button>
+                )}
+                {folders.map(({ folder, depth }) => (
+                  <Button
+                    key={folder.id}
+                    variant="ghost"
+                    className="w-full justify-start gap-3 py-2.5"
+                    style={{ paddingLeft: `${0.75 + depth * 1.25}rem` }}
+                    disabled={isPending}
+                    onClick={() => handleMoveToFolder(folder.id)}
+                  >
+                    <span className="text-lg">{folder.icon ?? "📁"}</span>
+                    <div className="flex flex-col items-start">
+                      <Text variant="small-medium">{folder.name}</Text>
+                      <Text variant="small" className="text-zinc-400">
+                        {folder.agent_count ?? 0}{" "}
+                        {(folder.agent_count ?? 0) === 1 ? "agent" : "agents"}
+                      </Text>
+                    </div>
+                  </Button>
+                ))}
+              </div>
+            )}
+          </div>
+        </div>
+      </Dialog.Content>
+    </Dialog>
+  );
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/folder-constants.ts
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/folder-constants.ts
@@ -0,0 +1,7 @@
+export const FOLDER_COLORS = [
+  { value: "#3B82F6", label: "Blue" },
+  { value: "#A855F7", label: "Purple" },
+  { value: "#10B981", label: "Green" },
+  { value: "#F97316", label: "Orange" },
+  { value: "#EC4899", label: "Pink" },
+];
--- a/autogpt_platform/frontend/src/app/(platform)/library/context/FavoriteAnimationContext.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/context/FavoriteAnimationContext.tsx
@@ -0,0 +1,84 @@
+"use client";
+
+import {
+  createContext,
+  useContext,
+  useState,
+  useCallback,
+  useRef,
+} from "react";
+import { FlyingHeart } from "../components/FlyingHeart/FlyingHeart";
+
+interface FavoriteAnimationContextType {
+  triggerFavoriteAnimation: (startPosition: { x: number; y: number }) => void;
+  registerFavoritesTabRef: (element: HTMLElement | null) => void;
+}
+
+const FavoriteAnimationContext =
+  createContext<FavoriteAnimationContextType | null>(null);
+
+interface FavoriteAnimationProviderProps {
+  children: React.ReactNode;
+  onAnimationComplete?: () => void;
+}
+
+export function FavoriteAnimationProvider({
+  children,
+  onAnimationComplete,
+}: FavoriteAnimationProviderProps) {
+  const [animationState, setAnimationState] = useState<{
+    startPosition: { x: number; y: number } | null;
+    targetPosition: { x: number; y: number } | null;
+  }>({
+    startPosition: null,
+    targetPosition: null,
+  });
+
+  const favoritesTabRef = useRef<HTMLElement | null>(null);
+
+  const registerFavoritesTabRef = useCallback((element: HTMLElement | null) => {
+    favoritesTabRef.current = element;
+  }, []);
+
+  const triggerFavoriteAnimation = useCallback(
+    (startPosition: { x: number; y: number }) => {
+      if (favoritesTabRef.current) {
+        const rect = favoritesTabRef.current.getBoundingClientRect();
+        const targetPosition = {
+          x: rect.left + rect.width / 2 - 12,
+          y: rect.top + rect.height / 2 - 12,
+        };
+        setAnimationState({ startPosition, targetPosition });
+      }
+    },
+    [],
+  );
+
+  function handleAnimationComplete() {
+    setAnimationState({ startPosition: null, targetPosition: null });
+    onAnimationComplete?.();
+  }
+
+  return (
+    <FavoriteAnimationContext.Provider
+      value={{ triggerFavoriteAnimation, registerFavoritesTabRef }}
+    >
+      {children}
+      <FlyingHeart
+        startPosition={animationState.startPosition}
+        targetPosition={animationState.targetPosition}
+        onAnimationComplete={handleAnimationComplete}
+      />
+    </FavoriteAnimationContext.Provider>
+  );
+}
+
+export function useFavoriteAnimation() {
+  const context = useContext(FavoriteAnimationContext);
+  if (!context) {
+    throw new Error(
+      "useFavoriteAnimation must be used within FavoriteAnimationProvider",
+    );
+  }
+  return context;
+}
--- a/autogpt_platform/frontend/src/app/(platform)/library/page.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/page.tsx
@@ -1,28 +1,55 @@
 "use client";

-import { useEffect } from "react";
-import { FavoritesSection } from "./components/FavoritesSection/FavoritesSection";
+import { useEffect, useState, useCallback } from "react";
+import { HeartIcon, ListIcon } from "@phosphor-icons/react";
 import { LibraryActionHeader } from "./components/LibraryActionHeader/LibraryActionHeader";
 import { LibraryAgentList } from "./components/LibraryAgentList/LibraryAgentList";
+import { Tab } from "./components/LibraryTabs/LibraryTabs";
 import { useLibraryListPage } from "./components/useLibraryListPage";
+import { FavoriteAnimationProvider } from "./context/FavoriteAnimationContext";
+
+const LIBRARY_TABS: Tab[] = [
+  { id: "all", title: "All", icon: ListIcon },
+  { id: "favorites", title: "Favorites", icon: HeartIcon },
+];

 export default function LibraryPage() {
  const { searchTerm, setSearchTerm, librarySort, setLibrarySort } =
    useLibraryListPage();
+  const [selectedFolderId, setSelectedFolderId] = useState<string | null>(null);
+  const [activeTab, setActiveTab] = useState(LIBRARY_TABS[0].id);

  useEffect(() => {
    document.title = "Library – AutoGPT Platform";
  }, []);

+  function handleTabChange(tabId: string) {
+    setActiveTab(tabId);
+    setSelectedFolderId(null);
+  }
+
+  const handleFavoriteAnimationComplete = useCallback(() => {
+    setActiveTab("favorites");
+    setSelectedFolderId(null);
+  }, []);
+
  return (
-    <main className="pt-160 container min-h-screen space-y-4 pb-20 pt-16 sm:px-8 md:px-12">
-      <LibraryActionHeader setSearchTerm={setSearchTerm} />
-      <FavoritesSection searchTerm={searchTerm} />
-      <LibraryAgentList
-        searchTerm={searchTerm}
-        librarySort={librarySort}
-        setLibrarySort={setLibrarySort}
-      />
-    </main>
+    <FavoriteAnimationProvider
+      onAnimationComplete={handleFavoriteAnimationComplete}
+    >
+      <main className="pt-160 container min-h-screen space-y-4 pb-20 pt-16 sm:px-8 md:px-12">
+        <LibraryActionHeader setSearchTerm={setSearchTerm} />
+        <LibraryAgentList
+          searchTerm={searchTerm}
+          librarySort={librarySort}
+          setLibrarySort={setLibrarySort}
+          selectedFolderId={selectedFolderId}
+          onFolderSelect={setSelectedFolderId}
+          tabs={LIBRARY_TABS}
+          activeTab={activeTab}
+          onTabChange={handleTabChange}
+        />
+      </main>
+    </FavoriteAnimationProvider>
  );
 }
--- a/autogpt_platform/frontend/src/app/api/openapi.json
+++ b/autogpt_platform/frontend/src/app/api/openapi.json
@@ -3510,6 +3510,29 @@
              "title": "Page Size"
            },
            "description": "Number of agents per page (must be >= 1)"
+          },
+          {
+            "name": "folder_id",
+            "in": "query",
+            "required": false,
+            "schema": {
+              "anyOf": [{ "type": "string" }, { "type": "null" }],
+              "description": "Filter by folder ID",
+              "title": "Folder Id"
+            },
+            "description": "Filter by folder ID"
+          },
+          {
+            "name": "include_root_only",
+            "in": "query",
+            "required": false,
+            "schema": {
+              "type": "boolean",
+              "description": "Only return agents without a folder (root-level agents)",
+              "default": false,
+              "title": "Include Root Only"
+            },
+            "description": "Only return agents without a folder (root-level agents)"
          }
        ],
        "responses": {
@@ -3877,6 +3900,338 @@
        }
      }
    },
+    "/api/library/folders": {
+      "get": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "List Library Folders",
+        "description": "List folders for the authenticated user.\n\nArgs:\n    user_id: ID of the authenticated user.\n    parent_id: Optional parent folder ID to filter by.\n    include_relations: Whether to include agent and subfolder relations for counts.\n\nReturns:\n    A FolderListResponse containing folders.",
+        "operationId": "getV2List library folders",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "parameters": [
+          {
+            "name": "parent_id",
+            "in": "query",
+            "required": false,
+            "schema": {
+              "anyOf": [{ "type": "string" }, { "type": "null" }],
+              "description": "Filter by parent folder ID. If not provided, returns root-level folders.",
+              "title": "Parent Id"
+            },
+            "description": "Filter by parent folder ID. If not provided, returns root-level folders."
+          },
+          {
+            "name": "include_relations",
+            "in": "query",
+            "required": false,
+            "schema": {
+              "type": "boolean",
+              "description": "Include agent and subfolder relations (for counts)",
+              "default": true,
+              "title": "Include Relations"
+            },
+            "description": "Include agent and subfolder relations (for counts)"
+          }
+        ],
+        "responses": {
+          "200": {
+            "description": "List of folders",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/FolderListResponse" }
+              }
+            }
+          },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      },
+      "post": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Create Folder",
+        "description": "Create a new folder.\n\nArgs:\n    payload: The folder creation request.\n    user_id: ID of the authenticated user.\n\nReturns:\n    The created LibraryFolder.",
+        "operationId": "postV2Create folder",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "requestBody": {
+          "required": true,
+          "content": {
+            "application/json": {
+              "schema": { "$ref": "#/components/schemas/FolderCreateRequest" }
+            }
+          }
+        },
+        "responses": {
+          "201": {
+            "description": "Folder created successfully",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/LibraryFolder" }
+              }
+            }
+          },
+          "400": { "description": "Validation error" },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Parent folder not found" },
+          "409": { "description": "Folder name conflict" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      }
+    },
+    "/api/library/folders/agents/bulk-move": {
+      "post": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Bulk Move Agents",
+        "description": "Move multiple agents to a folder.\n\nArgs:\n    payload: The bulk move request with agent IDs and target folder.\n    user_id: ID of the authenticated user.\n\nReturns:\n    The updated LibraryAgents.",
+        "operationId": "postV2Bulk move agents",
+        "requestBody": {
+          "content": {
+            "application/json": {
+              "schema": { "$ref": "#/components/schemas/BulkMoveAgentsRequest" }
+            }
+          },
+          "required": true
+        },
+        "responses": {
+          "200": {
+            "description": "Agents moved successfully",
+            "content": {
+              "application/json": {
+                "schema": {
+                  "items": { "$ref": "#/components/schemas/LibraryAgent" },
+                  "type": "array",
+                  "title": "Response Postv2Bulk Move Agents"
+                }
+              }
+            }
+          },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Folder not found" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        },
+        "security": [{ "HTTPBearerJWT": [] }]
+      }
+    },
+    "/api/library/folders/tree": {
+      "get": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Get Folder Tree",
+        "description": "Get the full folder tree for the authenticated user.\n\nArgs:\n    user_id: ID of the authenticated user.\n\nReturns:\n    A FolderTreeResponse containing the nested folder structure.",
+        "operationId": "getV2Get folder tree",
+        "responses": {
+          "200": {
+            "description": "Folder tree structure",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/FolderTreeResponse" }
+              }
+            }
+          },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "500": { "description": "Server error" }
+        },
+        "security": [{ "HTTPBearerJWT": [] }]
+      }
+    },
+    "/api/library/folders/{folder_id}": {
+      "delete": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Delete Folder",
+        "description": "Soft-delete a folder and all its contents.\n\nArgs:\n    folder_id: ID of the folder to delete.\n    user_id: ID of the authenticated user.\n\nReturns:\n    204 No Content if successful.",
+        "operationId": "deleteV2Delete folder",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "parameters": [
+          {
+            "name": "folder_id",
+            "in": "path",
+            "required": true,
+            "schema": { "type": "string", "title": "Folder Id" }
+          }
+        ],
+        "responses": {
+          "204": { "description": "Folder deleted successfully" },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Folder not found" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      },
+      "get": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Get Folder",
+        "description": "Get a specific folder.\n\nArgs:\n    folder_id: ID of the folder to retrieve.\n    user_id: ID of the authenticated user.\n\nReturns:\n    The requested LibraryFolder.",
+        "operationId": "getV2Get folder",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "parameters": [
+          {
+            "name": "folder_id",
+            "in": "path",
+            "required": true,
+            "schema": { "type": "string", "title": "Folder Id" }
+          }
+        ],
+        "responses": {
+          "200": {
+            "description": "Folder details",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/LibraryFolder" }
+              }
+            }
+          },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Folder not found" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      },
+      "patch": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Update Folder",
+        "description": "Update a folder's properties.\n\nArgs:\n    folder_id: ID of the folder to update.\n    payload: The folder update request.\n    user_id: ID of the authenticated user.\n\nReturns:\n    The updated LibraryFolder.",
+        "operationId": "patchV2Update folder",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "parameters": [
+          {
+            "name": "folder_id",
+            "in": "path",
+            "required": true,
+            "schema": { "type": "string", "title": "Folder Id" }
+          }
+        ],
+        "requestBody": {
+          "required": true,
+          "content": {
+            "application/json": {
+              "schema": { "$ref": "#/components/schemas/FolderUpdateRequest" }
+            }
+          }
+        },
+        "responses": {
+          "200": {
+            "description": "Folder updated successfully",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/LibraryFolder" }
+              }
+            }
+          },
+          "400": { "description": "Validation error" },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Folder not found" },
+          "409": { "description": "Folder name conflict" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      }
+    },
+    "/api/library/folders/{folder_id}/move": {
+      "post": {
+        "tags": ["v2", "library", "folders", "private"],
+        "summary": "Move Folder",
+        "description": "Move a folder to a new parent.\n\nArgs:\n    folder_id: ID of the folder to move.\n    payload: The move request with target parent.\n    user_id: ID of the authenticated user.\n\nReturns:\n    The moved LibraryFolder.",
+        "operationId": "postV2Move folder",
+        "security": [{ "HTTPBearerJWT": [] }],
+        "parameters": [
+          {
+            "name": "folder_id",
+            "in": "path",
+            "required": true,
+            "schema": { "type": "string", "title": "Folder Id" }
+          }
+        ],
+        "requestBody": {
+          "required": true,
+          "content": {
+            "application/json": {
+              "schema": { "$ref": "#/components/schemas/FolderMoveRequest" }
+            }
+          }
+        },
+        "responses": {
+          "200": {
+            "description": "Folder moved successfully",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/LibraryFolder" }
+              }
+            }
+          },
+          "400": { "description": "Validation error (circular reference)" },
+          "401": {
+            "$ref": "#/components/responses/HTTP401NotAuthenticatedError"
+          },
+          "404": { "description": "Folder or target parent not found" },
+          "409": { "description": "Folder name conflict in target location" },
+          "422": {
+            "description": "Validation Error",
+            "content": {
+              "application/json": {
+                "schema": { "$ref": "#/components/schemas/HTTPValidationError" }
+              }
+            }
+          },
+          "500": { "description": "Server error" }
+        }
+      }
+    },
    "/api/library/presets": {
      "get": {
        "tags": ["v2", "presets"],
@@ -7425,6 +7780,23 @@
        "required": ["file"],
        "title": "Body_postV2Upload submission media"
      },
+      "BulkMoveAgentsRequest": {
+        "properties": {
+          "agent_ids": {
+            "items": { "type": "string" },
+            "type": "array",
+            "title": "Agent Ids"
+          },
+          "folder_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Folder Id"
+          }
+        },
+        "type": "object",
+        "required": ["agent_ids"],
+        "title": "BulkMoveAgentsRequest",
+        "description": "Request model for moving multiple agents to a folder."
+      },
      "CancelSessionResponse": {
        "properties": {
          "cancelled": { "type": "boolean", "title": "Cancelled" },
@@ -8161,6 +8533,96 @@
        "title": "ExecutionStartedResponse",
        "description": "Response for run/schedule actions."
      },
+      "FolderCreateRequest": {
+        "properties": {
+          "name": {
+            "type": "string",
+            "maxLength": 100,
+            "minLength": 1,
+            "title": "Name"
+          },
+          "icon": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Icon"
+          },
+          "color": {
+            "anyOf": [
+              { "type": "string", "pattern": "^#[0-9A-Fa-f]{6}$" },
+              { "type": "null" }
+            ],
+            "title": "Color",
+            "description": "Hex color code (#RRGGBB)"
+          },
+          "parent_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Parent Id"
+          }
+        },
+        "type": "object",
+        "required": ["name"],
+        "title": "FolderCreateRequest",
+        "description": "Request model for creating a folder."
+      },
+      "FolderListResponse": {
+        "properties": {
+          "folders": {
+            "items": { "$ref": "#/components/schemas/LibraryFolder" },
+            "type": "array",
+            "title": "Folders"
+          },
+          "pagination": { "$ref": "#/components/schemas/Pagination" }
+        },
+        "type": "object",
+        "required": ["folders", "pagination"],
+        "title": "FolderListResponse",
+        "description": "Response schema for a list of folders."
+      },
+      "FolderMoveRequest": {
+        "properties": {
+          "target_parent_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Target Parent Id"
+          }
+        },
+        "type": "object",
+        "title": "FolderMoveRequest",
+        "description": "Request model for moving a folder to a new parent."
+      },
+      "FolderTreeResponse": {
+        "properties": {
+          "tree": {
+            "items": { "$ref": "#/components/schemas/LibraryFolderTree" },
+            "type": "array",
+            "title": "Tree"
+          }
+        },
+        "type": "object",
+        "required": ["tree"],
+        "title": "FolderTreeResponse",
+        "description": "Response schema for folder tree structure."
+      },
+      "FolderUpdateRequest": {
+        "properties": {
+          "name": {
+            "anyOf": [
+              { "type": "string", "maxLength": 100, "minLength": 1 },
+              { "type": "null" }
+            ],
+            "title": "Name"
+          },
+          "icon": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Icon"
+          },
+          "color": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Color"
+          }
+        },
+        "type": "object",
+        "title": "FolderUpdateRequest",
+        "description": "Request model for updating a folder."
+      },
      "Graph": {
        "properties": {
          "id": { "type": "string", "title": "Id" },
@@ -9049,6 +9511,14 @@
            "title": "Is Latest Version"
          },
          "is_favorite": { "type": "boolean", "title": "Is Favorite" },
+          "folder_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Folder Id"
+          },
+          "folder_name": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Folder Name"
+          },
          "recommended_schedule_cron": {
            "anyOf": [{ "type": "string" }, { "type": "null" }],
            "title": "Recommended Schedule Cron"
@@ -9316,12 +9786,109 @@
              { "type": "null" }
            ],
            "description": "User-specific settings for this library agent"
+          },
+          "folder_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Folder Id",
+            "description": "Folder ID to move agent to (None to move to root)"
          }
        },
        "type": "object",
        "title": "LibraryAgentUpdateRequest",
        "description": "Schema for updating a library agent via PUT.\n\nIncludes flags for auto-updating version, marking as favorite,\narchiving, or deleting."
      },
+      "LibraryFolder": {
+        "properties": {
+          "id": { "type": "string", "title": "Id" },
+          "user_id": { "type": "string", "title": "User Id" },
+          "name": { "type": "string", "title": "Name" },
+          "icon": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Icon"
+          },
+          "color": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Color"
+          },
+          "parent_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Parent Id"
+          },
+          "created_at": {
+            "type": "string",
+            "format": "date-time",
+            "title": "Created At"
+          },
+          "updated_at": {
+            "type": "string",
+            "format": "date-time",
+            "title": "Updated At"
+          },
+          "agent_count": {
+            "type": "integer",
+            "title": "Agent Count",
+            "default": 0
+          },
+          "subfolder_count": {
+            "type": "integer",
+            "title": "Subfolder Count",
+            "default": 0
+          }
+        },
+        "type": "object",
+        "required": ["id", "user_id", "name", "created_at", "updated_at"],
+        "title": "LibraryFolder",
+        "description": "Represents a folder for organizing library agents."
+      },
+      "LibraryFolderTree": {
+        "properties": {
+          "id": { "type": "string", "title": "Id" },
+          "user_id": { "type": "string", "title": "User Id" },
+          "name": { "type": "string", "title": "Name" },
+          "icon": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Icon"
+          },
+          "color": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Color"
+          },
+          "parent_id": {
+            "anyOf": [{ "type": "string" }, { "type": "null" }],
+            "title": "Parent Id"
+          },
+          "created_at": {
+            "type": "string",
+            "format": "date-time",
+            "title": "Created At"
+          },
+          "updated_at": {
+            "type": "string",
+            "format": "date-time",
+            "title": "Updated At"
+          },
+          "agent_count": {
+            "type": "integer",
+            "title": "Agent Count",
+            "default": 0
+          },
+          "subfolder_count": {
+            "type": "integer",
+            "title": "Subfolder Count",
+            "default": 0
+          },
+          "children": {
+            "items": { "$ref": "#/components/schemas/LibraryFolderTree" },
+            "type": "array",
+            "title": "Children",
+            "default": []
+          }
+        },
+        "type": "object",
+        "required": ["id", "user_id", "name", "created_at", "updated_at"],
+        "title": "LibraryFolderTree",
+        "description": "Folder with nested children for tree view."
+      },
      "Link": {
        "properties": {
          "id": { "type": "string", "title": "Id" },
--- a/autogpt_platform/frontend/src/tests/pages/library.page.ts
+++ b/autogpt_platform/frontend/src/tests/pages/library.page.ts
@@ -444,7 +444,10 @@ export async function navigateToAgentByName(
  // Wait for the agent card to be visible before clicking
  // This handles async loading of agents after page navigation
  await agentCard.waitFor({ state: "visible", timeout: 15000 });
-  await agentCard.click();
+  // Click the link inside the card to navigate reliably through
+  // the motion.div + draggable wrapper layers.
+  const link = agentCard.locator('a[href*="/library/agents/"]').first();
+  await link.click();
 }

 export async function clickRunButton(page: Page): Promise<void> {
@@ -481,19 +484,17 @@ export async function clickRunButton(page: Page): Promise<void> {
  // Check which button is visible and click it
  if (await setupTaskButton.isVisible()) {
    await setupTaskButton.click();
-    await page
-      .getByRole("button", { name: /Start Task/i })
-      .first()
-      .click({ timeout: 10000 });
+    const startBtn = page.getByRole("button", { name: /Start Task/i }).first();
+    await startBtn.waitFor({ state: "visible", timeout: 15000 });
+    await startBtn.click();
    return;
  }

  if (await newTaskButton.isVisible()) {
    await newTaskButton.click();
-    await page
-      .getByRole("button", { name: /Start Task/i })
-      .first()
-      .click({ timeout: 10000 });
+    const startBtn = page.getByRole("button", { name: /Start Task/i }).first();
+    await startBtn.waitFor({ state: "visible", timeout: 15000 });
+    await startBtn.click();
    return;
  }