diff --git a/backend/internal/db/files.sql.go b/backend/internal/db/files.sql.go
index e13472f..e84965a 100644
--- a/backend/internal/db/files.sql.go
+++ b/backend/internal/db/files.sql.go
@@ -14,7 +14,7 @@ import (
 const createFile = `-- name: CreateFile :one
 INSERT INTO files (id, name, mime_type, size, storage_key, checksum, created_at, updated_at)
 VALUES ($1, $2, $3, $4, $5, $6, CURRENT_TIMESTAMP, CURRENT_TIMESTAMP)
-RETURNING id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at
+RETURNING id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at, is_folder
 `
 
 type CreateFileParams struct {
@@ -46,6 +46,36 @@ func (q *Queries) CreateFile(ctx context.Context, arg CreateFileParams) (File, e
 		&i.OcrText,
 		&i.CreatedAt,
 		&i.UpdatedAt,
+		&i.IsFolder,
+	)
+	return i, err
+}
+
+const createFolder = `-- name: CreateFolder :one
+INSERT INTO files (id, name, created_at, updated_at)
+VALUES ($1, $2, CURRENT_TIMESTAMP, CURRENT_TIMESTAMP)
+RETURNING id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at, is_folder
+`
+
+type CreateFolderParams struct {
+	ID   string `json:"id"`
+	Name string `json:"name"`
+}
+
+func (q *Queries) CreateFolder(ctx context.Context, arg CreateFolderParams) (File, error) {
+	row := q.db.QueryRowContext(ctx, createFolder, arg.ID, arg.Name)
+	var i File
+	err := row.Scan(
+		&i.ID,
+		&i.Name,
+		&i.MimeType,
+		&i.Size,
+		&i.StorageKey,
+		&i.Checksum,
+		&i.OcrText,
+		&i.CreatedAt,
+		&i.UpdatedAt,
+		&i.IsFolder,
 	)
 	return i, err
 }
@@ -61,7 +91,7 @@ func (q *Queries) DeleteFile(ctx context.Context, id string) error {
 }
 
 const getFile = `-- name: GetFile :one
-SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at FROM files
+SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at, is_folder FROM files
 WHERE id = $1 LIMIT 1
 `
 
@@ -78,12 +108,13 @@ func (q *Queries) GetFile(ctx context.Context, id string) (File, error) {
 		&i.OcrText,
 		&i.CreatedAt,
 		&i.UpdatedAt,
+		&i.IsFolder,
 	)
 	return i, err
 }
 
 const listFiles = `-- name: ListFiles :many
-SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at FROM files
+SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at, is_folder FROM files
 ORDER BY created_at DESC
 `
 
@@ -106,6 +137,7 @@ func (q *Queries) ListFiles(ctx context.Context) ([]File, error) {
 			&i.OcrText,
 			&i.CreatedAt,
 			&i.UpdatedAt,
+			&i.IsFolder,
 		); err != nil {
 			return nil, err
 		}
@@ -121,7 +153,7 @@ func (q *Queries) ListFiles(ctx context.Context) ([]File, error) {
 }
 
 const listFilesByID = `-- name: ListFilesByID :many
-SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at FROM files
+SELECT id, name, mime_type, size, storage_key, checksum, ocr_text, created_at, updated_at, is_folder FROM files
 WHERE id = ANY($1::text[])
 ORDER BY created_at DESC
 `
@@ -145,6 +177,7 @@ func (q *Queries) ListFilesByID(ctx context.Context, dollar_1 []string) ([]File,
 			&i.OcrText,
 			&i.CreatedAt,
 			&i.UpdatedAt,
+			&i.IsFolder,
 		); err != nil {
 			return nil, err
 		}
diff --git a/backend/internal/db/migrations/004_folders.down.sql b/backend/internal/db/migrations/004_folders.down.sql
new file mode 100644
index 0000000..6de30ce
--- /dev/null
+++ b/backend/internal/db/migrations/004_folders.down.sql
@@ -0,0 +1,2 @@
+-- VaultDrop 003: tags table
+ALTER TABLE files DROP COLUMN IF EXISTS is_folder;
\ No newline at end of file
diff --git a/backend/internal/db/migrations/004_folders.up.sql b/backend/internal/db/migrations/004_folders.up.sql
new file mode 100644
index 0000000..6628717
--- /dev/null
+++ b/backend/internal/db/migrations/004_folders.up.sql
@@ -0,0 +1 @@
+ALTER TABLE files ADD COLUMN is_folder BOOLEAN NOT NULL DEFAULT false;
\ No newline at end of file
diff --git a/backend/internal/db/models.go b/backend/internal/db/models.go
index a8520c4..dc15ec5 100644
--- a/backend/internal/db/models.go
+++ b/backend/internal/db/models.go
@@ -19,6 +19,7 @@ type File struct {
 	OcrText    string    `json:"ocr_text"`
 	CreatedAt  time.Time `json:"created_at"`
 	UpdatedAt  time.Time `json:"updated_at"`
+	IsFolder   bool      `json:"is_folder"`
 }
 
 type FileTag struct {
diff --git a/backend/internal/db/queries/files.sql b/backend/internal/db/queries/files.sql
index 4a6949f..338823e 100644
--- a/backend/internal/db/queries/files.sql
+++ b/backend/internal/db/queries/files.sql
@@ -16,6 +16,11 @@ INSERT INTO files (id, name, mime_type, size, storage_key, checksum, created_at,
 VALUES ($1, $2, $3, $4, $5, $6, CURRENT_TIMESTAMP, CURRENT_TIMESTAMP)
 RETURNING *;
 
+-- name: CreateFolder :one
+INSERT INTO files (id, name, created_at, updated_at)
+VALUES ($1, $2, CURRENT_TIMESTAMP, CURRENT_TIMESTAMP)
+RETURNING *;
+
 -- name: UpdateFile :exec
 UPDATE files
 SET name = $1, mime_type = $2, ocr_text = $3, updated_at = CURRENT_TIMESTAMP
diff --git a/backend/internal/db/tags.sql.go b/backend/internal/db/tags.sql.go
index 2bb0b86..fd7a4d8 100644
--- a/backend/internal/db/tags.sql.go
+++ b/backend/internal/db/tags.sql.go
@@ -64,7 +64,7 @@ func (q *Queries) DeleteTag(ctx context.Context, id string) error {
 }
 
 const getFilesByTagID = `-- name: GetFilesByTagID :many
-SELECT f.id, f.name, f.mime_type, f.size, f.storage_key, f.checksum, f.ocr_text, f.created_at, f.updated_at FROM files f
+SELECT f.id, f.name, f.mime_type, f.size, f.storage_key, f.checksum, f.ocr_text, f.created_at, f.updated_at, f.is_folder FROM files f
 JOIN file_tags ft ON f.id = ft.file_id
 WHERE ft.tag_id = $1
 ORDER BY f.created_at DESC
@@ -89,6 +89,7 @@ func (q *Queries) GetFilesByTagID(ctx context.Context, tagID sql.NullString) ([]
 			&i.OcrText,
 			&i.CreatedAt,
 			&i.UpdatedAt,
+			&i.IsFolder,
 		); err != nil {
 			return nil, err
 		}