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 ec3b41296f..7ac9fca52c 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
@@ -19,8 +19,10 @@ 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";
 
@@ -43,6 +45,10 @@ 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: () => {
@@ -74,9 +80,19 @@ 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,
+        name: values.folderName.trim(),
         color: values.folderColor,
         icon: values.folderIcon,
       },
@@ -110,7 +126,7 @@ export default function LibraryFolderCreationDialog() {
         <Form
           form={form}
           onSubmit={(values) => onSubmit(values)}
-          className="flex flex-col justify-center gap-4 px-1"
+          className="flex flex-col justify-center px-1 gap-2"
         >
           <FormField
             control={form.control}
@@ -123,7 +139,8 @@ export default function LibraryFolderCreationDialog() {
                     id={field.name}
                     label="Folder name"
                     placeholder="Enter folder name"
-                    className="w-full"
+                    className="w-full !mb-0"
+                    wrapperClassName="!mb-0"
                   />
                 </FormControl>
                 <FormMessage />
@@ -153,6 +170,7 @@ export default function LibraryFolderCreationDialog() {
                         />
                       ),
                     }))}
+                    wrapperClassName="!mb-0"
                     renderItem={(option) => (
                       <div className="flex items-center gap-2">
                         {option.icon}
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 c846d94962..3cfb69ff3d 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
@@ -20,8 +20,10 @@ 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";
@@ -50,6 +52,10 @@ 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: {
@@ -107,12 +113,27 @@ export function LibraryFolderEditDialog({ folder, isOpen, setIsOpen }: Props) {
 
         return { previousData };
       },
-      onError: (_error, _variables, context) => {
+      onError: (
+        error: { detail?: string; response?: { detail?: string } },
+        _variables,
+        context,
+      ) => {
         if (context?.previousData) {
           for (const [queryKey, data] of context.previousData) {
             queryClient.setQueryData(queryKey, data);
           }
         }
+        const detail =
+          error.detail ?? error.response?.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.",
@@ -135,10 +156,22 @@ 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: values.folderName,
+        name: trimmedName,
         color: values.folderColor,
         icon: values.folderIcon,
       },