diff --git a/api/v1beta1/grafanafolder_types.go b/api/v1beta1/grafanafolder_types.go
index ebc1c943e..87e5de164 100644
--- a/api/v1beta1/grafanafolder_types.go
+++ b/api/v1beta1/grafanafolder_types.go
@@ -66,6 +66,9 @@ type GrafanaFolderStatus struct {
 	NoMatchingInstances bool `json:"NoMatchingInstances,omitempty"`
 	// Last time the folder was resynced
 	LastResync metav1.Time `json:"lastResync,omitempty"`
+	// UID of the parent folder where the folder is created.
+	// Will be empty if the folder is deployed at the root level
+	ParentFolderUID string `json:"parentFolderUID,omitempty"`
 }
 
 //+kubebuilder:object:root=true
@@ -115,6 +118,10 @@ func (in *GrafanaFolder) Unchanged() bool {
 	return in.Hash() == in.Status.Hash
 }
 
+func (in *GrafanaFolder) Moved() bool {
+	return in.Spec.ParentFolderUID != in.Status.ParentFolderUID
+}
+
 func (in *GrafanaFolder) IsAllowCrossNamespaceImport() bool {
 	if in.Spec.AllowCrossNamespaceImport != nil {
 		return *in.Spec.AllowCrossNamespaceImport
diff --git a/config/crd/bases/grafana.integreatly.org_grafanafolders.yaml b/config/crd/bases/grafana.integreatly.org_grafanafolders.yaml
index 6e882b6a1..db63e0320 100644
--- a/config/crd/bases/grafana.integreatly.org_grafanafolders.yaml
+++ b/config/crd/bases/grafana.integreatly.org_grafanafolders.yaml
@@ -134,6 +134,11 @@ spec:
                 description: Last time the folder was resynced
                 format: date-time
                 type: string
+              parentFolderUID:
+                description: |-
+                  UID of the parent folder where the folder is created.
+                  Will be empty if the folder is deployed at the root level
+                type: string
             type: object
         type: object
     served: true
diff --git a/controllers/grafanafolder_controller.go b/controllers/grafanafolder_controller.go
index 53e789e42..9b4eca188 100644
--- a/controllers/grafanafolder_controller.go
+++ b/controllers/grafanafolder_controller.go
@@ -301,7 +301,7 @@ func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *
 	}
 
 	// always update after resync period has elapsed even if cr is unchanged.
-	if exists && cr.Unchanged() && !cr.ResyncPeriodHasElapsed() {
+	if exists && cr.Unchanged() && !cr.ResyncPeriodHasElapsed() && !cr.Moved() {
 		return nil
 	}
 
@@ -327,6 +327,15 @@ func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *
 				return err
 			}
 		}
+
+		if cr.Moved() {
+			_, err = grafanaClient.Folders.MoveFolder(remoteUID, &models.MoveFolderCommand{ //nolint
+				ParentUID: cr.Spec.ParentFolderUID,
+			})
+			if err != nil {
+				return err
+			}
+		}
 	} else {
 		body := &models.CreateFolderCommand{
 			Title:     title,
@@ -365,6 +374,7 @@ func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *
 
 func (r *GrafanaFolderReconciler) UpdateStatus(ctx context.Context, cr *grafanav1beta1.GrafanaFolder) error {
 	cr.Status.Hash = cr.Hash()
+	cr.Status.ParentFolderUID = cr.Spec.ParentFolderUID
 	return r.Client.Status().Update(ctx, cr)
 }
 
@@ -375,7 +385,7 @@ func (r *GrafanaFolderReconciler) Exists(client *genapi.GrafanaHTTPAPI, cr *graf
 	page := int64(1)
 	limit := int64(10000)
 	for {
-		params := folders.NewGetFoldersParams().WithPage(&page).WithLimit(&limit).WithParentUID(&cr.Spec.ParentFolderUID)
+		params := folders.NewGetFoldersParams().WithPage(&page).WithLimit(&limit).WithParentUID(&cr.Status.ParentFolderUID)
 
 		foldersResp, err := client.Folders.GetFolders(params)
 		if err != nil {
diff --git a/deploy/helm/grafana-operator/crds/grafana.integreatly.org_grafanafolders.yaml b/deploy/helm/grafana-operator/crds/grafana.integreatly.org_grafanafolders.yaml
index 6e882b6a1..db63e0320 100644
--- a/deploy/helm/grafana-operator/crds/grafana.integreatly.org_grafanafolders.yaml
+++ b/deploy/helm/grafana-operator/crds/grafana.integreatly.org_grafanafolders.yaml
@@ -134,6 +134,11 @@ spec:
                 description: Last time the folder was resynced
                 format: date-time
                 type: string
+              parentFolderUID:
+                description: |-
+                  UID of the parent folder where the folder is created.
+                  Will be empty if the folder is deployed at the root level
+                type: string
             type: object
         type: object
     served: true
diff --git a/deploy/kustomize/base/crds.yaml b/deploy/kustomize/base/crds.yaml
index bd98ee835..2f28a10b5 100644
--- a/deploy/kustomize/base/crds.yaml
+++ b/deploy/kustomize/base/crds.yaml
@@ -1279,6 +1279,11 @@ spec:
                 description: Last time the folder was resynced
                 format: date-time
                 type: string
+              parentFolderUID:
+                description: |-
+                  UID of the parent folder where the folder is created.
+                  Will be empty if the folder is deployed at the root level
+                type: string
             type: object
         type: object
     served: true
diff --git a/docs/docs/api.md b/docs/docs/api.md
index b60b1c8a5..3fce0dd94 100644
--- a/docs/docs/api.md
+++ b/docs/docs/api.md
@@ -2629,6 +2629,14 @@ Important: Run "make" to regenerate code after modifying this file<br/>
             <i>Format</i>: date-time<br/>
         </td>
         <td>false</td>
+      </tr><tr>
+        <td><b>parentFolderUID</b></td>
+        <td>string</td>
+        <td>
+          UID of the parent folder where the folder is created.
+Will be empty if the folder is deployed at the root level<br/>
+        </td>
+        <td>false</td>
       </tr></tbody>
 </table>