diff --git a/core/services/v2_document_service.py b/core/services/v2_document_service.py
index a6f13deb..43c4594c 100644
--- a/core/services/v2_document_service.py
+++ b/core/services/v2_document_service.py
@@ -20,11 +20,12 @@
 from core.models.auth import AuthContext
 from core.models.chunk import Chunk
 from core.models.documents import Document
+from core.models.folders import Folder
 from core.parser.docling_v2 import DoclingV2Parser
 from core.parser.morphik_parser import MorphikParser
 from core.storage.base_storage import BaseStorage
 from core.storage.utils_file_extensions import detect_content_type
-from core.utils.folder_utils import normalize_ingest_folder_inputs
+from core.utils.folder_utils import normalize_folder_path, normalize_ingest_folder_inputs
 from core.utils.typed_metadata import MetadataBundle, normalize_metadata
 from core.vector_store.chunk_v2_store import ChunkV2Store
 
@@ -223,6 +224,81 @@ def _reset_processing_metadata(system_metadata: Optional[Dict[str, Any]]) -> Dic
         cleaned_metadata["updated_at"] = datetime.now(UTC)
         return cleaned_metadata
 
+    @staticmethod
+    def _folder_update_fields(folder_obj: Folder) -> Dict[str, Any]:
+        """Build a consistent update payload for folder metadata columns."""
+        try:
+            path_value = folder_obj.full_path or (normalize_folder_path(folder_obj.name) if folder_obj.name else None)
+        except ValueError:
+            path_value = folder_obj.name
+
+        return {
+            "folder_id": folder_obj.id,
+            "folder_path": path_value,
+            "folder_name": folder_obj.name,
+        }
+
+    async def _ensure_folder_exists(self, folder_path: str, document_id: str, auth: AuthContext) -> Optional[Folder]:
+        """
+        Ensure a folder path exists (creating ancestors as needed) and add the document to the leaf.
+        """
+        try:
+            canonical_path = normalize_folder_path(folder_path)
+            segments = canonical_path.strip("/").split("/") if canonical_path and canonical_path != "/" else []
+
+            if canonical_path == "/":
+                logger.error("Cannot ingest into root folder '/'")
+                raise ValueError("Cannot ingest into root folder '/'")
+
+            parent_id: Optional[str] = None
+            current_path_parts: List[str] = []
+            target_folder: Optional[Folder] = None
+
+            for idx, segment in enumerate(segments):
+                current_path_parts.append(segment)
+                current_path = "/" + "/".join(current_path_parts)
+                existing = await self.db.get_folder_by_full_path(current_path, auth)
+                if existing:
+                    parent_id = existing.id
+                    if idx == len(segments) - 1:
+                        target_folder = existing
+                    continue
+
+                folder_depth = idx + 1
+                folder = Folder(
+                    name=segment,
+                    full_path=current_path,
+                    parent_id=parent_id,
+                    depth=folder_depth,
+                    document_ids=[document_id] if idx == len(segments) - 1 else [],
+                    app_id=auth.app_id,
+                )
+                await self.db.create_folder(folder, auth)
+                parent_id = folder.id
+                if idx == len(segments) - 1:
+                    target_folder = folder
+
+            if target_folder is None:
+                logger.error("Failed to ensure target folder for path %s", canonical_path)
+                return None
+
+            if document_id not in (target_folder.document_ids or []):
+                success = await self.db.add_document_to_folder(target_folder.id, document_id, auth)
+                if not success:
+                    logger.warning(
+                        "Failed to add document %s to folder %s. This may be due to a race condition.",
+                        document_id,
+                        target_folder.name,
+                    )
+                else:
+                    logger.info("Successfully added document %s to folder %s", document_id, target_folder.name)
+
+            return target_folder
+
+        except Exception as exc:  # noqa: BLE001
+            logger.error("Error ensuring folder exists: %s", exc)
+            return None
+
     @classmethod
     def _build_ingestion_job_payload(
         cls,
@@ -589,6 +665,22 @@ async def ingest_document(
             await self._mark_document_failed(doc, auth, f"Storage upload failed: {exc}")
             raise HTTPException(status_code=500, detail=f"Failed to upload file to storage: {exc}") from exc
 
+        if folder_path_value:
+            try:
+                folder_obj = await self._ensure_folder_exists(folder_path_value, doc.external_id, auth)
+                if folder_obj and folder_obj.id:
+                    doc.folder_id = folder_obj.id
+                    folder_updates = self._folder_update_fields(folder_obj)
+                    await self.db.update_document(doc.external_id, folder_updates, auth=auth)
+                logger.debug("Ensured folder '%s' exists and contains document %s", folder_path_value, doc.external_id)
+            except Exception as exc:  # noqa: BLE001
+                logger.error(
+                    "Error ensuring folder exists for doc %s (path=%s): %s",
+                    doc.external_id,
+                    folder_path_value,
+                    exc,
+                )
+
         if queue is None:
             queue = redis is not None