diff --git a/autogpt_platform/backend/backend/api/features/library/db.py b/autogpt_platform/backend/backend/api/features/library/db.py
index 4e9ac5bd2b..1eb224521a 100644
--- a/autogpt_platform/backend/backend/api/features/library/db.py
+++ b/autogpt_platform/backend/backend/api/features/library/db.py
@@ -87,10 +87,10 @@ async def list_library_agents(
         "isArchived": False,
     }
 
-    # Apply folder filter
-    if folder_id is not None:
+    # Apply folder filter (skip when searching — search spans all folders)
+    if folder_id is not None and not search_term:
         where_clause["folderId"] = folder_id
-    elif include_root_only:
+    elif include_root_only and not search_term:
         where_clause["folderId"] = None
 
     # Build search filter if applicable
diff --git a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx
index fd5163d8e4..41ad465db0 100644
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/LibraryAgentList.tsx
@@ -21,62 +21,57 @@ import { LibraryFolderEditDialog } from "../LibraryFolderEditDialog/LibraryFolde
 import { LibraryFolderDeleteDialog } from "../LibraryFolderDeleteDialog/LibraryFolderDeleteDialog";
 import { useLibraryAgentList } from "./useLibraryAgentList";
 
+// Spring-based enter/exit animations (Emil Kowalski principles)
+// Springs are naturally interruptible — switching tabs mid-animation
+// cancels the current spring and starts a new one from current state.
 const containerVariants = {
   hidden: {},
-  show: {
-    transition: {
-      staggerChildren: 0.04,
-      delayChildren: 0.04,
-    },
-  },
+  show: {},
   exit: {
     opacity: 0,
     filter: "blur(4px)",
-    transition: {
-      duration: 0.15,
-      ease: [0.25, 0.1, 0.25, 1],
-    },
-  },
-};
-
-const itemVariants = {
-  hidden: {
-    opacity: 0,
-    y: 8,
-    scale: 0.96,
-    filter: "blur(4px)",
-  },
-  show: {
-    opacity: 1,
-    y: 0,
-    scale: 1,
-    filter: "blur(0px)",
-    transition: {
-      duration: 0.25,
-      ease: [0.25, 0.1, 0.25, 1],
-    },
+    transition: { duration: 0.12 },
   },
 };
 
+// Reduced motion fallback
 const reducedContainerVariants = {
   hidden: {},
-  show: {
-    transition: { staggerChildren: 0.02 },
-  },
+  show: {},
   exit: {
     opacity: 0,
-    transition: { duration: 0.15 },
+    transition: { duration: 0.12 },
   },
 };
 
-const reducedItemVariants = {
-  hidden: { opacity: 0 },
-  show: {
-    opacity: 1,
-    transition: { duration: 0.2 },
-  },
+// Per-item animation values (explicit initial/animate, not variant-based).
+// This ensures items animate in on mount regardless of parent state — fixes
+// the bug where dynamically added children (e.g. folders reappearing after
+// search is cleared) stayed invisible with variant inheritance.
+const itemInitial = {
+  opacity: 0,
+  y: 8,
+  filter: "blur(4px)",
 };
 
+const itemAnimate = {
+  opacity: 1,
+  y: 0,
+  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;
@@ -102,9 +97,11 @@ export function LibraryAgentList({
   const activeContainerVariants = shouldReduceMotion
     ? reducedContainerVariants
     : containerVariants;
-  const activeItemVariants = shouldReduceMotion
-    ? reducedItemVariants
-    : itemVariants;
+  const activeInitial = shouldReduceMotion ? reducedItemInitial : itemInitial;
+  const activeAnimate = shouldReduceMotion ? reducedItemAnimate : itemAnimate;
+  const activeTransition = shouldReduceMotion
+    ? reducedItemTransition
+    : itemTransition;
 
   const {
     isFavoritesTab,
@@ -181,7 +178,7 @@ export function LibraryAgentList({
             loader={<LoadingSpinner size="medium" />}
           >
             <LayoutGroup>
-              <AnimatePresence mode="wait">
+              <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"
@@ -191,8 +188,16 @@ export function LibraryAgentList({
                   exit="exit"
                 >
                   {showFolders &&
-                    foldersData?.folders.map((folder) => (
-                      <motion.div key={folder.id} variants={activeItemVariants}>
+                    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}
@@ -206,8 +211,19 @@ export function LibraryAgentList({
                         />
                       </motion.div>
                     ))}
-                  {agents.map((agent) => (
-                    <motion.div key={agent.id} variants={activeItemVariants}>
+                  {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>
                   ))}
diff --git a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts
index b9ef9ae594..65f22eef5c 100644
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryAgentList/useLibraryAgentList.ts
@@ -19,7 +19,7 @@ import {
 import { useToast } from "@/components/molecules/Toast/use-toast";
 import { useFavoriteAgents } from "../../hooks/useFavoriteAgents";
 import { getQueryClient } from "@/lib/react-query/queryClient";
-import { useQueryClient } from "@tanstack/react-query";
+import { keepPreviousData, useQueryClient } from "@tanstack/react-query";
 import { useEffect, useRef, useState } from "react";
 
 interface Props {
@@ -50,8 +50,6 @@ export function useLibraryAgentList({
     null,
   );
 
-  // --- Agent list fetching ---
-
   const {
     data: agentsQueryData,
     fetchNextPage,
@@ -112,10 +110,13 @@ export function useLibraryAgentList({
 
   // --- Folders ---
 
-  const { data: foldersData } = useGetV2ListLibraryFolders(undefined, {
+  const { data: rawFoldersData } = useGetV2ListLibraryFolders(undefined, {
     query: { select: okData },
   });
 
+  // When searching, suppress folder data so only agent results show
+  const foldersData = searchTerm ? undefined : rawFoldersData;
+
   const { mutate: moveAgentToFolder } = usePostV2BulkMoveAgents({
     mutation: {
       onMutate: async ({ data }) => {
@@ -126,9 +127,10 @@ export function useLibraryAgentList({
           queryKey: getGetV2ListLibraryAgentsQueryKey(),
         });
 
-        const previousFolders = queryClient.getQueriesData<
-          getV2ListLibraryFoldersResponseSuccess
-        >({ queryKey: getGetV2ListLibraryFoldersQueryKey() });
+        const previousFolders =
+          queryClient.getQueriesData<getV2ListLibraryFoldersResponseSuccess>({
+            queryKey: getGetV2ListLibraryFoldersQueryKey(),
+          });
 
         if (data.folder_id) {
           queryClient.setQueriesData<getV2ListLibraryFoldersResponseSuccess>(
diff --git a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx
index 7ac9fca52c..2fe0078896 100644
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderCreationDialog/LibraryFolderCreationDialog.tsx
@@ -19,10 +19,8 @@ import { z } from "zod";
 import { EmojiPicker } from "@ferrucc-io/emoji-picker";
 import {
   usePostV2CreateFolder,
-  useGetV2ListLibraryFolders,
   getGetV2ListLibraryFoldersQueryKey,
 } from "@/app/api/__generated__/endpoints/folders/folders";
-import { okData } from "@/app/api/helpers";
 import { useToast } from "@/components/molecules/Toast/use-toast";
 import { useQueryClient } from "@tanstack/react-query";
 
@@ -45,10 +43,6 @@ export default function LibraryFolderCreationDialog() {
   const queryClient = useQueryClient();
   const { toast } = useToast();
 
-  const { data: foldersData } = useGetV2ListLibraryFolders(undefined, {
-    query: { select: okData },
-  });
-
   const { mutate: createFolder, isPending } = usePostV2CreateFolder({
     mutation: {
       onSuccess: () => {
@@ -80,16 +74,6 @@ export default function LibraryFolderCreationDialog() {
   });
 
   function onSubmit(values: z.infer<typeof libraryFolderCreationFormSchema>) {
-    const existingNames = (foldersData?.folders ?? []).map((f) =>
-      f.name.toLowerCase(),
-    );
-    if (existingNames.includes(values.folderName.trim().toLowerCase())) {
-      form.setError("folderName", {
-        message: "A folder with this name already exists",
-      });
-      return;
-    }
-
     createFolder({
       data: {
         name: values.folderName.trim(),
diff --git a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx
index 1ff16652a7..a0c73b3aca 100644
--- a/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx
+++ b/autogpt_platform/frontend/src/app/(platform)/library/components/LibraryFolderEditDialog/LibraryFolderEditDialog.tsx
@@ -20,10 +20,8 @@ import { z } from "zod";
 import { EmojiPicker } from "@ferrucc-io/emoji-picker";
 import {
   usePatchV2UpdateFolder,
-  useGetV2ListLibraryFolders,
   getGetV2ListLibraryFoldersQueryKey,
 } from "@/app/api/__generated__/endpoints/folders/folders";
-import { okData } from "@/app/api/helpers";
 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";
@@ -52,10 +50,6 @@ export function LibraryFolderEditDialog({ folder, isOpen, setIsOpen }: Props) {
   const queryClient = useQueryClient();
   const { toast } = useToast();
 
-  const { data: foldersData } = useGetV2ListLibraryFolders(undefined, {
-    query: { select: okData },
-  });
-
   const form = useForm<z.infer<typeof editFolderSchema>>({
     resolver: zodResolver(editFolderSchema),
     defaultValues: {
@@ -154,22 +148,10 @@ export function LibraryFolderEditDialog({ folder, isOpen, setIsOpen }: Props) {
   });
 
   function onSubmit(values: z.infer<typeof editFolderSchema>) {
-    const trimmedName = values.folderName.trim();
-    const existingNames = (foldersData?.folders ?? [])
-      .filter((f) => f.id !== folder.id)
-      .map((f) => f.name.toLowerCase());
-
-    if (existingNames.includes(trimmedName.toLowerCase())) {
-      form.setError("folderName", {
-        message: "A folder with this name already exists",
-      });
-      return;
-    }
-
     updateFolder({
       folderId: folder.id,
       data: {
-        name: trimmedName,
+        name: values.folderName.trim(),
         color: values.folderColor,
         icon: values.folderIcon,
       },