ByFigma nested folders let teams organize design files in a hierarchy up to 10 levels deep instead of the flat, single-level Projects system Figma used before. The rollout started automatically on August 3, 2026, and every existing Project became a Folder with the same name, files, and members intact. If your team has outgrown a flat file list, this is the update that finally fixes it.
This guide covers exactly what changed, how to set up Figma nested folders on your own team, how deep you can actually nest them, how permissions and colors work, and what to do if your migration looks wrong.
It’s a small-sounding update with a real productivity payoff. Design teams have spent years working around Figma’s flat structure with naming conventions and emoji prefixes just to fake a hierarchy — nested folders finally make that workaround unnecessary.
What Are Figma Nested Folders?
Figma nested folders are a file-organization system that replaces the old flat Projects structure with folders that can contain other folders. Instead of every project sitting side by side in one list, you can now group related projects — say, a “Marketing” folder containing separate “Q3 Campaign” and “Website Redesign” folders inside it — the way you’d organize files in Google Drive or Dropbox.
Figma describes this as a long-requested feature, and the design reasoning behind it is documented directly on the Figma Blog: as teams scale past a handful of projects, a flat list stops being navigable, and nesting restores a structure that matches how organizations actually think about their work.
Every folder, at any depth, keeps the same core capabilities Figma teams already rely on: you can still share a folder link, set who can view or edit it, and drag files between folders freely. Nesting doesn’t introduce a separate, more limited folder type — a folder five levels deep behaves exactly like a top-level one, just positioned differently in the hierarchy.
When Did Figma Nested Folders Roll Out?
The migration began automatically on August 3, 2026, and Figma has said the full rollout takes a few weeks to reach every team. You don’t need to opt in or trigger anything yourself — if your team hasn’t seen the change yet, it’s still in the rollout window, not something you’re doing wrong.
During migration, every existing Project converts into a Folder automatically, keeping its original name, its files, and its member list untouched. Nothing is deleted or hidden in the process — the structure just gets a new name and a new capability to nest further.
How Do You Set Up Figma Nested Folders?
Setting up Figma nested folders takes four steps once your team’s migration has completed. The workflow mirrors folder systems you already know from cloud storage tools, so there’s no new mental model to learn.
- Open your team or organization space in Figma and locate the folder you want to organize further.
- Click “New folder” inside an existing folder to create a nested folder rather than a top-level one.
- Drag existing files or folders into the new folder to move them into the hierarchy.
- Right-click the folder and assign it a color to make it visually distinct in a crowded sidebar.
Because folders can be nested inside other folders, you can build a hierarchy that mirrors how your organization actually works — for example, a top-level folder per client, with sub-folders per project, and further sub-folders per deliverable type, all without leaving Figma’s native file browser.
How Many Levels Deep Can You Nest Folders?
Paid Figma plans can nest folders up to 10 levels deep. Starter (free) plans are limited to a single folder level, so if you’re on a free team and don’t see the option to create a folder inside a folder, that’s a plan limitation, not a bug.
| System | Structure | Max Depth | Color-Coding | Permission Model |
|---|---|---|---|---|
| Old Figma Projects | Flat list | 1 level | No | Set per project |
| Figma Nested Folders (Starter) | Single folder | 1 level | Yes | Set per folder |
| Figma Nested Folders (paid plans) | Folders within folders | Up to 10 levels | Yes | Inherited or custom per folder |
Ten levels is deep enough for almost any team structure — client, then account, then project, then deliverable, then version, with room to spare. In practice, Figma itself recommends keeping hierarchies shallow enough that teammates can still find a file in two or three clicks, even though the platform technically supports going deeper.
Depth limits like this exist for a reason beyond just database constraints — they’re a nudge toward usable information architecture. A folder tree that actually uses all 10 levels is almost always harder to navigate than a shallow one with clear names, because every additional click is a chance for a teammate to give up and use search instead. Treat 10 as a ceiling you’re unlikely to need, not a target to design toward.
How Do Permissions Work in Nested Folders?
Nested folders inherit access permissions from the folder above them by default. If you grant a teammate access to a top-level folder, they automatically get access to everything nested inside it, the same way a shared parent folder works in most cloud storage tools.
You can override that inheritance on any individual folder and restrict it to specific people, which is useful when a sensitive sub-project — an unreleased rebrand, for instance — needs to stay hidden from the broader team even though they can see everything else in the parent folder. Setting a custom permission on a nested folder doesn’t change permissions anywhere else in the hierarchy; it only scopes down that one branch.
This inheritance model mirrors how most cloud file systems handle shared folders, which is a deliberate choice — it means admins don’t have to re-grant access folder by folder every time they reorganize, and it means a new hire added to a top-level client folder immediately sees every sub-folder underneath it without a separate onboarding step for each project.
What Happened to My Old Projects After the Migration?
Every Project you had became a Folder with the same name, same files, and same members — nothing was deleted, hidden, or reorganized without your input. Figma’s own migration notes describe this as a like-for-like conversion: your team’s structure looks identical immediately after migration, and nesting is simply a new capability layered on top, not a mandatory reorganization.
If a project seems to be missing after migration, check your team’s archive or search by name before assuming data loss — Figma has not reported any cases of files disappearing during the rollout, and the most common cause of a “missing” folder is simply that it moved into a different team space than you expected.
It’s also worth noting that this migration is one-directional in spirit, even if Figma doesn’t frame it that way. There’s no supported path back to a flat Projects list once your team has been migrated, so if your workflow depended on the old flat structure for some automation or integration outside Figma, budget time to update that tooling rather than expecting the old view to remain available as an option.
Do Nested Folders Work the Same Way in FigJam, Sites, and Dev Mode?
Yes. Nested folders are a workspace-level feature, so they apply to how files are organized across Figma’s product surfaces, not just the Design file type. A FigJam board, a Figma Sites project, and a Dev Mode-ready file can all live inside the same folder hierarchy, which matters because modern product teams often move between all three in a single project.
That consistency is part of a broader shift Figma has been making: turning the platform into a single workspace that spans ideation (FigJam), design (Figma Design), handoff (Dev Mode), marketing assets (Buzz), and now full web pages (Sites), rather than a design-file tool with adjacent products bolted on. Nested folders give all of those surfaces a shared organizational backbone instead of each one needing its own separate structure.
What Are Good Naming Conventions for Nested Folders?
A folder hierarchy only helps if teammates can predict where something lives without asking. The most reliable convention is to name folders after stable, organization-wide categories — client names, product lines, team names — rather than project-specific details that change every quarter, like a campaign name or a sprint number.
Push volatile details down to the deepest level of the hierarchy instead of the top. A structure like Client → Product → Sprint keeps the top of the tree stable for years, while the bottom level absorbs the churn of week-to-week work. Renaming a folder three levels deep affects far fewer bookmarks, shared links, and muscle-memory habits than renaming one at the top.
Color-coding works best when it maps to something binary and easy to scan at a glance — active versus archived, or internal versus client-facing — rather than a rainbow of one-off meanings that only the person who set them up remembers.
Why Should You Actually Reorganize Instead of Leaving Folders As-Is?
Leaving every migrated Project as a flat top-level Folder technically works, but it wastes the entire point of the update. The value of Figma nested folders shows up once you group related work together, because a design system, a marketing site, and a mobile app redesign for the same client stop competing for space in one long sidebar list.
Teams already using Figma’s AI image editing tools alongside heavier design-system work tend to accumulate the most clutter, since every AI-generated variant and every export tends to spawn its own file. Nesting those into version-specific sub-folders under a single project folder keeps the AI experimentation from drowning out finished, shippable work.
How Should You Structure a Large Design System With Nested Folders?
A practical structure for a large design team is to nest by ownership first, then by artifact type. A top-level folder per product area, a second level per squad or pod, and a third level separating components, flows, and archived explorations keeps the hierarchy predictable without forcing anyone to memorize a rigid taxonomy.
- Level 1 — Product or client: the broadest grouping, rarely changes.
- Level 2 — Team or squad: matches how your organization is actually staffed.
- Level 3 — Artifact type: components, flows, marketing assets, archive.
- Level 4 (optional) — Version or sprint: only add this layer if your team ships on a predictable cadence.
Resist nesting all the way to 10 levels just because the platform allows it. Every extra level adds a click before a teammate finds a file, and Figma’s own guidance favors a shallow, color-coded hierarchy over a deep one. If you’re also cleaning up your team’s visual assets, our guide on scoring UI designs with a free analyzer pairs well with a folder cleanup, since both are about making existing work easier to evaluate at a glance.
How Does This Compare to Other Design Tools’ Folder Systems?
Figma nested folders bring the platform roughly in line with how Adobe Creative Cloud libraries and general cloud storage tools like Google Drive already handle nesting, rather than introducing anything conceptually new. What’s different is that Figma folders carry design-specific context — file thumbnails, component libraries, and Dev Mode status all live inside the same hierarchy, instead of folders being a generic wrapper around unrelated file types.
If your team also works across other design and AI tools day to day, our roundup of AI tools for graphic designers covers how several of them handle asset organization, which is useful context for deciding how much of your folder structure should live in Figma versus a shared asset library elsewhere.
What Should You Do If Your Migration Looks Wrong?
First, confirm the rollout has actually reached your team — Figma’s migration is staged over several weeks from the August 3, 2026 start date, so a team that still sees the old Projects view simply hasn’t been migrated yet. Refreshing or checking again in a few days resolves most cases people mistake for a bug.
If your team has been migrated and a file or folder genuinely looks missing, check Figma’s official help documentation on file management updates before assuming data loss, and contact Figma support directly if the discrepancy persists — that is the fastest path to a resolution, since account-specific migration issues aren’t something a general guide can diagnose.
Frequently Asked Questions
Do I need to do anything to get Figma nested folders?
No. The migration is automatic and rolled out starting August 3, 2026. Your existing Projects convert into Folders on their own, with the same name, files, and members, and you can start nesting new folders inside them as soon as your team’s migration completes.
How many levels deep can Figma nested folders go?
Up to 10 levels on paid Figma plans. Starter (free) plans are limited to a single folder level, so nesting a folder inside another folder requires a paid plan.
Will nested folders break my existing file links or permissions?
No. Migrated folders keep their original members and access settings. Nested folders inherit permissions from their parent folder by default, and you can override that inheritance on individual folders without affecting the rest of the hierarchy.
Can I still color-code folders after the update?
Yes. Color-coding is a core feature of the new folder system on every plan tier, including Starter. Right-click any folder to assign it a color, which makes deep hierarchies easier to scan visually.
Does the free Starter plan support nested folders at all?
Starter plans get one folder level rather than true nesting. You can organize files into a folder, but you can’t create a folder inside that folder — multi-level nesting is a paid-plan feature.
How long does the migration to nested folders take?
Figma has said the rollout takes a few weeks from its August 3, 2026 start to reach every team. If your team hasn’t seen the change yet, it’s likely still in that migration window.
Figma nested folders solve a problem that’s been building for years: teams outgrew the flat Projects list long before Figma gave them a real way to organize around it. The migration is automatic, the depth is generous without being unlimited, and permissions inherit sensibly by default. The only real work left is deciding on a hierarchy that your team will actually stick to — and resisting the urge to nest ten levels deep just because you can.
If you’re planning a folder cleanup, do it in one sitting rather than piecemeal. Gather your team’s admins, sketch the top two levels of the hierarchy together on a whiteboard or in FigJam, and only then start moving files. A hierarchy that one person builds alone tends to drift from how the rest of the team actually thinks about the work, which just recreates the original navigation problem one level deeper.
Sources: Figma Blog — Code, Craft, and the Making of Nested Folders, Figma Help Center — Updates to Figma’s file management.
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