diff --git a/lib/livebook/hubs/personal.ex b/lib/livebook/hubs/personal.ex
index a708def02..205bc10a4 100644
--- a/lib/livebook/hubs/personal.ex
+++ b/lib/livebook/hubs/personal.ex
@@ -281,4 +281,6 @@ defimpl Livebook.Hubs.Provider, for: Livebook.Hubs.Personal do
   def deployment_groups(_personal), do: nil
 
   def get_app_specs(_personal), do: []
+
+  def get_app_folders(_personal), do: []
 end
diff --git a/lib/livebook/hubs/provider.ex b/lib/livebook/hubs/provider.ex
index a1ac56259..4c067ddb0 100644
--- a/lib/livebook/hubs/provider.ex
+++ b/lib/livebook/hubs/provider.ex
@@ -155,4 +155,10 @@ defprotocol Livebook.Hubs.Provider do
   """
   @spec get_app_specs(t()) :: list(Livebook.Apps.AppSpec.t())
   def get_app_specs(hub)
+
+  @doc """
+  Gets the app folders from the given hub.
+  """
+  @spec get_app_folders(t()) :: list(%{id: String.t(), name: String.t()})
+  def get_app_folders(hub)
 end
diff --git a/lib/livebook/hubs/team.ex b/lib/livebook/hubs/team.ex
index 2e86e38bb..b7bc8c566 100644
--- a/lib/livebook/hubs/team.ex
+++ b/lib/livebook/hubs/team.ex
@@ -259,6 +259,12 @@ defimpl Livebook.Hubs.Provider, for: Livebook.Hubs.Team do
     end
   end
 
+  def get_app_folders(team) do
+    team.id
+    |> TeamClient.get_app_folders()
+    |> Enum.sort_by(& &1.name)
+  end
+
   defp parse_secret_errors(errors_map) do
     Teams.Requests.to_error_list(Secret, errors_map)
   end
diff --git a/lib/livebook/hubs/team_client.ex b/lib/livebook/hubs/team_client.ex
index eac71bfca..9e67335b8 100644
--- a/lib/livebook/hubs/team_client.ex
+++ b/lib/livebook/hubs/team_client.ex
@@ -24,6 +24,7 @@ defmodule Livebook.Hubs.TeamClient do
     deployment_groups: [],
     app_deployments: [],
     agents: [],
+    app_folders: [],
     app_deployment_statuses: nil
   ]
 
@@ -172,6 +173,14 @@ defmodule Livebook.Hubs.TeamClient do
     GenServer.call(registry_name(id), {:user_can_deploy?, user_id, deployment_group_id})
   end
 
+  @doc """
+  Returns a list of cached app folders.
+  """
+  @spec get_app_folders(String.t()) :: list(Teams.AppFolder.t())
+  def get_app_folders(id) do
+    GenServer.call(registry_name(id), :get_app_folders)
+  end
+
   @doc """
   Returns if the Team client is connected.
   """
@@ -370,6 +379,10 @@ defmodule Livebook.Hubs.TeamClient do
     end
   end
 
+  def handle_call(:get_app_folders, _caller, state) do
+    {:reply, state.app_folders, state}
+  end
+
   @impl true
   def handle_info(:connected, state) do
     Hubs.Broadcasts.hub_connected(state.hub.id)
@@ -611,7 +624,8 @@ defmodule Livebook.Hubs.TeamClient do
       file: nil,
       deployed_by: app_deployment.deployed_by,
       deployed_at: DateTime.from_gregorian_seconds(app_deployment.deployed_at),
-      authorization_groups: authorization_groups
+      authorization_groups: authorization_groups,
+      app_folder_id: nullify(app_deployment.app_folder_id)
     }
   end
 
@@ -630,7 +644,8 @@ defmodule Livebook.Hubs.TeamClient do
     for authorization_group <- authorization_groups do
       %Teams.AuthorizationGroup{
         provider_id: authorization_group.provider_id,
-        group_name: authorization_group.group_name
+        group_name: authorization_group.group_name,
+        app_folder_id: nullify(authorization_group.app_folder_id)
       }
     end
   end
@@ -664,6 +679,24 @@ defmodule Livebook.Hubs.TeamClient do
     }
   end
 
+  defp put_app_folder(state, app_folder) do
+    state = remove_app_folder(state, app_folder)
+
+    %{state | app_folders: [app_folder | state.app_folders]}
+  end
+
+  defp remove_app_folder(state, app_folder) do
+    %{state | app_folders: Enum.reject(state.app_folders, &(&1.id == app_folder.id))}
+  end
+
+  defp build_app_folder(state, %LivebookProto.AppFolder{} = app_folder) do
+    %Teams.AppFolder{
+      id: app_folder.id,
+      name: app_folder.name,
+      hub_id: state.hub.id
+    }
+  end
+
   defp handle_event(:secret_created, %Secrets.Secret{} = secret, state) do
     Hubs.Broadcasts.secret_created(secret)
 
@@ -787,6 +820,7 @@ defmodule Livebook.Hubs.TeamClient do
     |> dispatch_deployment_groups(user_connected)
     |> dispatch_app_deployments(user_connected)
     |> dispatch_agents(user_connected)
+    |> dispatch_app_folders(user_connected)
     |> dispatch_connection()
   end
 
@@ -798,6 +832,7 @@ defmodule Livebook.Hubs.TeamClient do
     |> dispatch_deployment_groups(agent_connected)
     |> dispatch_app_deployments(agent_connected)
     |> dispatch_agents(agent_connected)
+    |> dispatch_app_folders(agent_connected)
     |> dispatch_connection()
   end
 
@@ -873,6 +908,43 @@ defmodule Livebook.Hubs.TeamClient do
     update_hub(state, org_updated)
   end
 
+  defp handle_event(:app_folder_created, %Teams.AppFolder{} = app_folder, state) do
+    Teams.Broadcasts.app_folder_created(app_folder)
+    put_app_folder(state, app_folder)
+  end
+
+  defp handle_event(:app_folder_created, app_folder_created, state) do
+    handle_event(
+      :app_folder_created,
+      build_app_folder(state, app_folder_created.app_folder),
+      state
+    )
+  end
+
+  defp handle_event(:app_folder_updated, %Teams.AppFolder{} = app_folder, state) do
+    Teams.Broadcasts.app_folder_updated(app_folder)
+    put_app_folder(state, app_folder)
+  end
+
+  defp handle_event(:app_folder_updated, app_folder_updated, state) do
+    handle_event(
+      :app_folder_updated,
+      build_app_folder(state, app_folder_updated.app_folder),
+      state
+    )
+  end
+
+  defp handle_event(:app_folder_deleted, %Teams.AppFolder{} = app_folder, state) do
+    Teams.Broadcasts.app_folder_deleted(app_folder)
+    remove_app_folder(state, app_folder)
+  end
+
+  defp handle_event(:app_folder_deleted, %{id: id}, state) do
+    with {:ok, app_folder} <- fetch_app_folder(id, state) do
+      handle_event(:app_folder_deleted, app_folder, state)
+    end
+  end
+
   defp dispatch_secrets(state, %{secrets: secrets}) do
     decrypted_secrets = Enum.map(secrets, &build_secret(state, &1))
 
@@ -936,6 +1008,19 @@ defmodule Livebook.Hubs.TeamClient do
     dispatch_events(state, agent_joined: joined, agent_left: left)
   end
 
+  defp dispatch_app_folders(state, %{app_folders: app_folders}) do
+    app_folders = Enum.map(app_folders, &build_app_folder(state, &1))
+
+    {created, deleted, updated} =
+      diff(state.app_folders, app_folders, &(&1.id == &2.id))
+
+    dispatch_events(state,
+      app_folder_deleted: deleted,
+      app_folder_created: created,
+      app_folder_updated: updated
+    )
+  end
+
   defp dispatch_connection(%{hub: %{id: id}} = state) do
     Teams.Broadcasts.client_connected(id)
     state
@@ -1064,6 +1149,8 @@ defmodule Livebook.Hubs.TeamClient do
   defp fetch_app_deployment_from_slug(slug, state),
     do: fetch_entry(state.app_deployments, &(&1.slug == slug), state)
 
+  defp fetch_app_folder(id, state), do: fetch_entry(state.app_folders, &(&1.id == id), state)
+
   defp fetch_entry(entries, fun, state) do
     if entry = Enum.find(entries, fun) do
       {:ok, entry}
diff --git a/lib/livebook/live_markdown/export.ex b/lib/livebook/live_markdown/export.ex
index 0ffa19f44..1baca768b 100644
--- a/lib/livebook/live_markdown/export.ex
+++ b/lib/livebook/live_markdown/export.ex
@@ -113,7 +113,8 @@ defmodule Livebook.LiveMarkdown.Export do
       :auto_shutdown_ms,
       :access_type,
       :show_source,
-      :output_type
+      :output_type,
+      :app_folder_id
     ]
 
     put_unless_default(
diff --git a/lib/livebook/live_markdown/import.ex b/lib/livebook/live_markdown/import.ex
index c0ab4782c..09473c727 100644
--- a/lib/livebook/live_markdown/import.ex
+++ b/lib/livebook/live_markdown/import.ex
@@ -495,6 +495,9 @@ defmodule Livebook.LiveMarkdown.Import do
       {"show_source", show_source}, attrs ->
         Map.put(attrs, :show_source, show_source)
 
+      {"app_folder_id", app_folder_id}, attrs ->
+        Map.put(attrs, :app_folder_id, app_folder_id)
+
       {"output_type", output_type}, attrs when output_type in ["all", "rich"] ->
         Map.put(attrs, :output_type, String.to_atom(output_type))
 
@@ -664,7 +667,25 @@ defmodule Livebook.LiveMarkdown.Import do
     # validate it against the public key).
     teams_enabled = is_struct(hub, Livebook.Hubs.Team) and (hub.offline == nil or stamp_verified?)
 
-    {%{notebook | teams_enabled: teams_enabled}, stamp_verified?, messages}
+    {app_settings, messages} =
+      if app_folder_id = notebook.app_settings.app_folder_id do
+        app_folders = Hubs.Provider.get_app_folders(hub)
+
+        if Enum.any?(app_folders, &(&1.id == app_folder_id)) do
+          {notebook.app_settings, messages}
+        else
+          {Map.replace!(notebook.app_settings, :app_folder_id, nil),
+           messages ++
+             [
+               "notebook is assigned to a non-existent app folder, defaulting to ungrouped app folder"
+             ]}
+        end
+      else
+        {notebook.app_settings, messages}
+      end
+
+    {%{notebook | app_settings: app_settings, teams_enabled: teams_enabled}, stamp_verified?,
+     messages}
   end
 
   defp safe_binary_split(binary, offset)
diff --git a/lib/livebook/notebook/app_settings.ex b/lib/livebook/notebook/app_settings.ex
index a68ea7a43..ec922bbd1 100644
--- a/lib/livebook/notebook/app_settings.ex
+++ b/lib/livebook/notebook/app_settings.ex
@@ -14,7 +14,8 @@ defmodule Livebook.Notebook.AppSettings do
           access_type: access_type(),
           password: String.t() | nil,
           show_source: boolean(),
-          output_type: output_type()
+          output_type: output_type(),
+          app_folder_id: String.t() | nil
         }
 
   @type access_type :: :public | :protected
@@ -33,6 +34,7 @@ defmodule Livebook.Notebook.AppSettings do
     field :password, :string
     field :show_source, :boolean
     field :output_type, Ecto.Enum, values: [:all, :rich]
+    field :app_folder_id, :string
   end
 
   @doc """
@@ -49,7 +51,8 @@ defmodule Livebook.Notebook.AppSettings do
       access_type: :protected,
       password: generate_password(),
       show_source: false,
-      output_type: :all
+      output_type: :all,
+      app_folder_id: nil
     }
   end
 
@@ -82,7 +85,8 @@ defmodule Livebook.Notebook.AppSettings do
       :auto_shutdown_ms,
       :access_type,
       :show_source,
-      :output_type
+      :output_type,
+      :app_folder_id
     ])
     |> validate_required([
       :slug,
diff --git a/lib/livebook/session.ex b/lib/livebook/session.ex
index 40ba9235f..9318ea4d8 100644
--- a/lib/livebook/session.ex
+++ b/lib/livebook/session.ex
@@ -904,6 +904,7 @@ defmodule Livebook.Session do
   def init({caller_pid, opts}) do
     Livebook.Settings.subscribe()
     Livebook.Hubs.Broadcasts.subscribe([:crud, :secrets, :file_systems])
+    Livebook.Teams.Broadcasts.subscribe(:app_folders)
 
     id = Keyword.fetch!(opts, :id)
 
@@ -2028,6 +2029,13 @@ defmodule Livebook.Session do
     {:noreply, handle_operation(state, operation)}
   end
 
+  def handle_info({event, app_folder}, state)
+      when event in [:app_folder_created, :app_folder_updated, :app_folder_deleted] and
+             app_folder.hub_id == state.data.notebook.hub_id do
+    operation = {:sync_hub_app_folders, @client_id}
+    {:noreply, handle_operation(state, operation)}
+  end
+
   def handle_info({:hub_deleted, id}, %{data: %{notebook: %{hub_id: id}}} = state) do
     # Since the hub got deleted, we close all sessions using that hub.
     # This way we clean up all secrets and other in-memory state that
diff --git a/lib/livebook/session/data.ex b/lib/livebook/session/data.ex
index af07583ed..e56d1561d 100644
--- a/lib/livebook/session/data.ex
+++ b/lib/livebook/session/data.ex
@@ -37,6 +37,7 @@ defmodule Livebook.Session.Data do
     :secrets,
     :hub_secrets,
     :hub_file_systems,
+    :hub_app_folders,
     :mode,
     :deployed_app_slug,
     :app_data
@@ -247,6 +248,7 @@ defmodule Livebook.Session.Data do
           | {:set_notebook_hub, client_id(), String.t()}
           | {:sync_hub_secrets, client_id()}
           | {:sync_hub_file_systems, client_id()}
+          | {:sync_hub_app_folders, client_id()}
           | {:add_file_entries, client_id(), list(Notebook.file_entry())}
           | {:rename_file_entry, client_id(), name :: String.t(), new_name :: String.t()}
           | {:delete_file_entry, client_id(), String.t()}
@@ -305,6 +307,7 @@ defmodule Livebook.Session.Data do
     hub = Livebook.Hubs.fetch_hub!(notebook.hub_id)
     hub_secrets = Livebook.Hubs.get_secrets(hub)
     hub_file_systems = Livebook.Hubs.get_file_systems(hub)
+    hub_app_folders = Livebook.Hubs.Provider.get_app_folders(hub)
 
     startup_secrets =
       for secret <- Livebook.Secrets.get_startup_secrets(),
@@ -338,6 +341,7 @@ defmodule Livebook.Session.Data do
       secrets: secrets,
       hub_secrets: hub_secrets,
       hub_file_systems: hub_file_systems,
+      hub_app_folders: hub_app_folders,
       mode: opts[:mode],
       deployed_app_slug: nil,
       app_data: app_data
@@ -1074,6 +1078,14 @@ defmodule Livebook.Session.Data do
     |> wrap_ok()
   end
 
+  def apply_operation(data, {:sync_hub_app_folders, _client_id}) do
+    data
+    |> with_actions()
+    |> sync_hub_app_folders()
+    |> set_dirty()
+    |> wrap_ok()
+  end
+
   def apply_operation(data, {:add_file_entries, _client_id, file_entries}) do
     data
     |> with_actions()
@@ -1965,7 +1977,8 @@ defmodule Livebook.Session.Data do
           teams_enabled: is_struct(hub, Livebook.Hubs.Team)
       },
       hub_secrets: Livebook.Hubs.get_secrets(hub),
-      hub_file_systems: Livebook.Hubs.get_file_systems(hub)
+      hub_file_systems: Livebook.Hubs.get_file_systems(hub),
+      hub_app_folders: Livebook.Hubs.Provider.get_app_folders(hub)
     )
   end
 
@@ -1985,6 +1998,12 @@ defmodule Livebook.Session.Data do
     set!(data_actions, hub_file_systems: file_systems)
   end
 
+  defp sync_hub_app_folders({data, _} = data_actions) do
+    hub = Livebook.Hubs.fetch_hub!(data.notebook.hub_id)
+    app_folders = Livebook.Hubs.Provider.get_app_folders(hub)
+    set!(data_actions, hub_app_folders: app_folders)
+  end
+
   defp update_notebook_hub_secret_names({data, _} = data_actions) do
     hub_secret_names =
       for {_name, secret} <- data.secrets, secret.hub_id == data.notebook.hub_id, do: secret.name
diff --git a/lib/livebook/teams.ex b/lib/livebook/teams.ex
index 717903dd3..7121f172b 100644
--- a/lib/livebook/teams.ex
+++ b/lib/livebook/teams.ex
@@ -305,4 +305,12 @@ defmodule Livebook.Teams do
   def user_can_deploy?(%Team{} = team, %Teams.DeploymentGroup{} = deployment_group) do
     TeamClient.user_can_deploy?(team.id, team.user_id, deployment_group.id)
   end
+
+  @doc """
+  Gets a list of app folders for a given Hub.
+  """
+  @spec get_app_folders(Team.t()) :: list(Teams.AppFolder.t())
+  def get_app_folders(team) do
+    Hubs.Provider.get_app_folders(team)
+  end
 end
diff --git a/lib/livebook/teams/app_deployment.ex b/lib/livebook/teams/app_deployment.ex
index 4314cf771..92d724db2 100644
--- a/lib/livebook/teams/app_deployment.ex
+++ b/lib/livebook/teams/app_deployment.ex
@@ -14,6 +14,7 @@ defmodule Livebook.Teams.AppDeployment do
           access_type: Livebook.Notebook.AppSettings.access_type(),
           hub_id: String.t() | nil,
           deployment_group_id: String.t() | nil,
+          app_folder_id: String.t() | nil,
           file: binary() | nil,
           deployed_by: String.t() | nil,
           deployed_at: DateTime.t() | nil,
@@ -32,6 +33,7 @@ defmodule Livebook.Teams.AppDeployment do
     field :access_type, Ecto.Enum, values: @access_types
     field :hub_id, :string
     field :deployment_group_id, :string
+    field :app_folder_id, :string
     field :file, :string
     field :deployed_by, :string
     field :deployed_at, :utc_datetime
@@ -75,6 +77,7 @@ defmodule Livebook.Teams.AppDeployment do
          title: notebook.name,
          multi_session: notebook.app_settings.multi_session,
          access_type: notebook.app_settings.access_type,
+         app_folder_id: notebook.app_settings.app_folder_id,
          hub_id: notebook.hub_id,
          deployment_group_id: notebook.deployment_group_id,
          file: zip_content
diff --git a/lib/livebook/teams/app_folder.ex b/lib/livebook/teams/app_folder.ex
new file mode 100644
index 000000000..fdd29681f
--- /dev/null
+++ b/lib/livebook/teams/app_folder.ex
@@ -0,0 +1,15 @@
+defmodule Livebook.Teams.AppFolder do
+  use Ecto.Schema
+
+  @type t :: %__MODULE__{
+          id: String.t() | nil,
+          name: String.t() | nil,
+          hub_id: String.t() | nil
+        }
+
+  @primary_key {:id, :string, autogenerate: false}
+  embedded_schema do
+    field :name, :string
+    field :hub_id, :string
+  end
+end
diff --git a/lib/livebook/teams/authorization_group.ex b/lib/livebook/teams/authorization_group.ex
index 4b22c4d22..ee452e822 100644
--- a/lib/livebook/teams/authorization_group.ex
+++ b/lib/livebook/teams/authorization_group.ex
@@ -3,12 +3,14 @@ defmodule Livebook.Teams.AuthorizationGroup do
 
   @type t :: %__MODULE__{
           provider_id: String.t() | nil,
-          group_name: String.t() | nil
+          group_name: String.t() | nil,
+          app_folder_id: String.t() | nil
         }
 
   @primary_key false
   embedded_schema do
     field :provider_id, :string
     field :group_name, :string
+    field :app_folder_id, :string
   end
 end
diff --git a/lib/livebook/teams/broadcasts.ex b/lib/livebook/teams/broadcasts.ex
index d94d17eb1..f7db7a010 100644
--- a/lib/livebook/teams/broadcasts.ex
+++ b/lib/livebook/teams/broadcasts.ex
@@ -7,6 +7,7 @@ defmodule Livebook.Teams.Broadcasts do
   @app_deployments_topic "teams:app_deployments"
   @clients_topic "teams:clients"
   @deployment_groups_topic "teams:deployment_groups"
+  @app_folders_topic "teams:app_folders"
   @app_server_topic "teams:app_server"
 
   @doc """
@@ -40,6 +41,12 @@ defmodule Livebook.Teams.Broadcasts do
 
     * `{:server_authorization_updated, DeploymentGroup.t()}`
 
+  Topic `#{@app_folders_topic}`:
+
+    * `{:app_folder_created, AppFolder.t()}`
+    * `{:app_folder_updated, AppFolder.t()}`
+    * `{:app_folder_deleted, AppFolder.t()}`
+
   """
   @spec subscribe(atom() | list(atom())) :: :ok | {:error, term()}
   def subscribe(topics) when is_list(topics) do
@@ -154,6 +161,30 @@ defmodule Livebook.Teams.Broadcasts do
     broadcast(@app_server_topic, {:server_authorization_updated, deployment_group})
   end
 
+  @doc """
+  Broadcasts under `#{@app_folders_topic}` topic when hub received a new app folder.
+  """
+  @spec app_folder_created(Teams.AppFolder.t()) :: broadcast()
+  def app_folder_created(%Teams.AppFolder{} = app_folder) do
+    broadcast(@app_folders_topic, {:app_folder_created, app_folder})
+  end
+
+  @doc """
+  Broadcasts under `#{@app_folders_topic}` topic when hub received an updated app folder.
+  """
+  @spec app_folder_updated(Teams.AppFolder.t()) :: broadcast()
+  def app_folder_updated(%Teams.AppFolder{} = app_folder) do
+    broadcast(@app_folders_topic, {:app_folder_updated, app_folder})
+  end
+
+  @doc """
+  Broadcasts under `#{@app_folders_topic}` topic when hub received a deleted app folder.
+  """
+  @spec app_folder_deleted(Teams.AppFolder.t()) :: broadcast()
+  def app_folder_deleted(%Teams.AppFolder{} = app_folder) do
+    broadcast(@app_folders_topic, {:app_folder_deleted, app_folder})
+  end
+
   defp broadcast(topic, message) do
     Phoenix.PubSub.broadcast(Livebook.PubSub, topic, message)
   end
diff --git a/lib/livebook/teams/requests.ex b/lib/livebook/teams/requests.ex
index b2ceb9031..0ffe623f0 100644
--- a/lib/livebook/teams/requests.ex
+++ b/lib/livebook/teams/requests.ex
@@ -188,6 +188,7 @@ defmodule Livebook.Teams.Requests do
       slug: app_deployment.slug,
       multi_session: app_deployment.multi_session,
       access_type: app_deployment.access_type,
+      app_folder_id: app_deployment.app_folder_id,
       deployment_group_id: app_deployment.deployment_group_id,
       sha: app_deployment.sha
     }
@@ -249,6 +250,7 @@ defmodule Livebook.Teams.Requests do
       slug: app_deployment.slug,
       multi_session: app_deployment.multi_session,
       access_type: app_deployment.access_type,
+      app_folder_id: app_deployment.app_folder_id,
       deployment_group_id: deployment_group_id,
       sha: app_deployment.sha
     }
diff --git a/lib/livebook_web/live/session_live.ex b/lib/livebook_web/live/session_live.ex
index dbe6899bb..33b5b9315 100644
--- a/lib/livebook_web/live/session_live.ex
+++ b/lib/livebook_web/live/session_live.ex
@@ -1865,6 +1865,7 @@ defmodule LivebookWeb.SessionLive do
       hub: Livebook.Hubs.fetch_hub!(data.notebook.hub_id),
       hub_secrets: data.hub_secrets,
       hub_file_systems: data.hub_file_systems,
+      hub_app_folders: data.hub_app_folders,
       any_session_secrets?:
         Session.Data.session_secrets(data.secrets, data.notebook.hub_id) != [],
       file_entries: Enum.sort_by(data.notebook.file_entries, & &1.name),
diff --git a/lib/livebook_web/live/session_live/app_settings_component.ex b/lib/livebook_web/live/session_live/app_settings_component.ex
index 1ce0b820a..037e567f4 100644
--- a/lib/livebook_web/live/session_live/app_settings_component.ex
+++ b/lib/livebook_web/live/session_live/app_settings_component.ex
@@ -12,10 +12,15 @@ defmodule LivebookWeb.SessionLive.AppSettingsComponent do
         _ -> AppSettings.change(assigns.settings)
       end
 
+    app_folder_options =
+      for app_folder <- assigns.app_folders do
+        {app_folder.name, app_folder.id}
+      end
+
     {:ok,
      socket
      |> assign(assigns)
-     |> assign(changeset: changeset)}
+     |> assign(app_folder_options: app_folder_options, changeset: changeset)}
   end
 
   @impl true
@@ -42,6 +47,17 @@ defmodule LivebookWeb.SessionLive.AppSettingsComponent do
       >
         <div class="flex flex-col space-y-4">
           <.text_field field={f[:slug]} label="Slug" spellcheck="false" phx-debounce />
+          <.select_field
+            field={f[:app_folder_id]}
+            label="Folder"
+            prompt="Select a folder..."
+            options={@app_folder_options}
+            help={
+              ~S'''
+              You can create folders inside Teams to organize how apps are displayed.
+              '''
+            }
+          />
           <div class="flex flex-col space-y-1">
             <.checkbox_field
               field={f[:access_type]}
diff --git a/lib/livebook_web/live/session_live/app_teams_live.ex b/lib/livebook_web/live/session_live/app_teams_live.ex
index 9e4933d9e..816167c1e 100644
--- a/lib/livebook_web/live/session_live/app_teams_live.ex
+++ b/lib/livebook_web/live/session_live/app_teams_live.ex
@@ -212,7 +212,11 @@ defmodule LivebookWeb.SessionLive.AppTeamsLive do
 
         <div :if={@app_deployment} class="space-y-3">
           <p class="text-gray-700">Current version:</p>
-          <.app_deployment_card app_deployment={@app_deployment} deployment_group={@deployment_group} />
+          <.app_deployment_card
+            app_deployment={@app_deployment}
+            deployment_group={@deployment_group}
+            hub={@hub}
+          />
         </div>
 
         <.message_box :if={@num_agents[@deployment_group.id] == nil} kind="warning">
@@ -293,6 +297,7 @@ defmodule LivebookWeb.SessionLive.AppTeamsLive do
         :if={@app_deployment}
         app_deployment={@app_deployment}
         deployment_group={@deployment_group}
+        hub={@hub}
       />
       <div>
         <.button color="gray" outlined phx-click="go_deployment_groups">
@@ -392,6 +397,9 @@ defmodule LivebookWeb.SessionLive.AppTeamsLive do
       <.labeled_text label="Title">
         {@app_deployment.title}
       </.labeled_text>
+      <.labeled_text label="Folder">
+        {app_folder_name(@hub, @app_deployment.app_folder_id)}
+      </.labeled_text>
       <.labeled_text label="Deployed by">
         {@app_deployment.deployed_by}
       </.labeled_text>
@@ -593,4 +601,12 @@ defmodule LivebookWeb.SessionLive.AppTeamsLive do
       String.replace(acc, "%{#{key}}", to_string(value))
     end)
   end
+
+  defp app_folder_name(_hub, id) when id in [nil, ""], do: "Ungrouped apps"
+
+  defp app_folder_name(hub, id) do
+    hub
+    |> Teams.get_app_folders()
+    |> Enum.find_value(&(&1.id == id && &1.name))
+  end
 end
diff --git a/lib/livebook_web/live/session_live/render.ex b/lib/livebook_web/live/session_live/render.ex
index 62e7ec9b3..b11f11f14 100644
--- a/lib/livebook_web/live/session_live/render.ex
+++ b/lib/livebook_web/live/session_live/render.ex
@@ -103,6 +103,7 @@ defmodule LivebookWeb.SessionLive.Render do
         settings={@data_view.app_settings}
         context={@action_assigns.context}
         deployed_app_slug={@data_view.deployed_app_slug}
+        app_folders={@data_view.hub_app_folders}
       />
     </.modal>
 
diff --git a/proto/lib/livebook_proto/authorization_group.pb.ex b/proto/lib/livebook_proto/authorization_group.pb.ex
index 3d689c4ca..e84f69ed2 100644
--- a/proto/lib/livebook_proto/authorization_group.pb.ex
+++ b/proto/lib/livebook_proto/authorization_group.pb.ex
@@ -3,5 +3,5 @@ defmodule LivebookProto.AuthorizationGroup do
 
   field :provider_id, 1, type: :string, json_name: "providerId"
   field :group_name, 2, type: :string, json_name: "groupName"
-  field :app_folder_ids, 3, repeated: true, type: :string, json_name: "appFolderIds"
+  field :app_folder_id, 3, type: :string, json_name: "appFolderId"
 end
diff --git a/proto/messages.proto b/proto/messages.proto
index 8d41e28f5..e2888c820 100644
--- a/proto/messages.proto
+++ b/proto/messages.proto
@@ -218,7 +218,7 @@ message EnvironmentVariable {
 message AuthorizationGroup {
   string provider_id = 1;
   string group_name = 2;
-  repeated string app_folder_ids = 3;
+  string app_folder_id = 3;
 }
 
 message DeploymentUser {
diff --git a/test/livebook/live_markdown/export_test.exs b/test/livebook/live_markdown/export_test.exs
index b81a9c0f3..3b3b2a059 100644
--- a/test/livebook/live_markdown/export_test.exs
+++ b/test/livebook/live_markdown/export_test.exs
@@ -1152,12 +1152,13 @@ defmodule Livebook.LiveMarkdown.ExportTest do
               auto_shutdown_ms: 5_000,
               access_type: :public,
               show_source: true,
-              output_type: :rich
+              output_type: :rich,
+              app_folder_id: "123"
           }
       }
 
       expected_document = """
-      <!-- livebook:{"app_settings":{"access_type":"public","auto_shutdown_ms":5000,"multi_session":true,"output_type":"rich","show_existing_sessions":true,"show_source":true,"slug":"app"}} -->
+      <!-- livebook:{"app_settings":{"access_type":"public","app_folder_id":"123","auto_shutdown_ms":5000,"multi_session":true,"output_type":"rich","show_existing_sessions":true,"show_source":true,"slug":"app"}} -->
 
       # My Notebook
       """
diff --git a/test/livebook/live_markdown/import_test.exs b/test/livebook/live_markdown/import_test.exs
index ec04e40c3..780d078ae 100644
--- a/test/livebook/live_markdown/import_test.exs
+++ b/test/livebook/live_markdown/import_test.exs
@@ -785,7 +785,7 @@ defmodule Livebook.LiveMarkdown.ImportTest do
   describe "app settings" do
     test "imports settings" do
       markdown = """
-      <!-- livebook:{"app_settings":{"access_type":"public","auto_shutdown_ms":5000,"multi_session":true,"output_type":"rich","show_existing_sessions":false,"show_source":true,"slug":"app"}} -->
+      <!-- livebook:{"app_settings":{"access_type":"public","app_folder_id":"123","auto_shutdown_ms":5000,"multi_session":true,"output_type":"rich","show_existing_sessions":false,"show_source":true,"slug":"app"}} -->
 
       # My Notebook
       """
@@ -802,7 +802,8 @@ defmodule Livebook.LiveMarkdown.ImportTest do
                  auto_shutdown_ms: 5_000,
                  access_type: :public,
                  show_source: true,
-                 output_type: :rich
+                 output_type: :rich,
+                 app_folder_id: "123"
                }
              } = notebook
     end
diff --git a/test/livebook_teams/cli/deploy_test.exs b/test/livebook_teams/cli/deploy_test.exs
index b645d4abe..c5a955547 100644
--- a/test/livebook_teams/cli/deploy_test.exs
+++ b/test/livebook_teams/cli/deploy_test.exs
@@ -23,11 +23,14 @@ defmodule LivebookCLI.Integration.DeployTest do
       app_path = Path.join(tmp_dir, "#{slug}.livemd")
       {key, _} = TeamsRPC.create_org_token(node, org: org)
       deployment_group = TeamsRPC.create_deployment_group(node, org: org, url: @url)
+      app_folder = TeamsRPC.create_app_folder(node, org: org)
+
       hub_id = team.id
       deployment_group_id = to_string(deployment_group.id)
+      app_folder_id = to_string(app_folder.id)
 
       stamp_notebook(app_path, """
-      <!-- livebook:{"app_settings":{"access_type":"public","slug":"#{slug}"},"hub_id":"#{hub_id}"} -->
+      <!-- livebook:{"app_settings":{"access_type":"public","app_folder_id":"#{app_folder_id}","slug":"#{slug}"},"hub_id":"#{hub_id}"} -->
 
       # #{title}
 
@@ -56,6 +59,7 @@ defmodule LivebookCLI.Integration.DeployTest do
                         title: ^title,
                         slug: ^slug,
                         deployment_group_id: ^deployment_group_id,
+                        app_folder_id: ^app_folder_id,
                         hub_id: ^hub_id,
                         deployed_by: "CLI"
                       }}
@@ -106,6 +110,7 @@ defmodule LivebookCLI.Integration.DeployTest do
                           title: ^title,
                           slug: ^slug,
                           deployment_group_id: ^deployment_group_id,
+                          app_folder_id: nil,
                           hub_id: ^hub_id,
                           deployed_by: "CLI"
                         }}
@@ -168,6 +173,7 @@ defmodule LivebookCLI.Integration.DeployTest do
                         title: ^title,
                         slug: ^slug,
                         deployment_group_id: ^deployment_group_id,
+                        app_folder_id: nil,
                         hub_id: ^hub_id,
                         deployed_by: "CLI"
                       }}
diff --git a/test/livebook_teams/hubs/team_client_test.exs b/test/livebook_teams/hubs/team_client_test.exs
index 197ebf164..4d0c823f1 100644
--- a/test/livebook_teams/hubs/team_client_test.exs
+++ b/test/livebook_teams/hubs/team_client_test.exs
@@ -6,7 +6,13 @@ defmodule Livebook.Hubs.TeamClientTest do
   setup :teams
 
   @moduletag subscribe_to_hubs_topics: [:crud, :connection, :file_systems, :secrets]
-  @moduletag subscribe_to_teams_topics: [:clients, :deployment_groups, :app_deployments, :agents]
+  @moduletag subscribe_to_teams_topics: [
+               :clients,
+               :deployment_groups,
+               :app_deployments,
+               :agents,
+               :app_folders
+             ]
 
   describe "connect" do
     @describetag teams_for: :user
@@ -303,6 +309,44 @@ defmodule Livebook.Hubs.TeamClientTest do
       assert_receive {:agent_left, ^agent}
       refute agent in TeamClient.get_agents(team.id)
     end
+
+    test "dispatches the app folders list",
+         %{team: team, pid: pid, user_connected: user_connected} do
+      app_folder = build(:app_folder, hub_id: team.id)
+
+      livebook_proto_app_folder =
+        %LivebookProto.AppFolder{
+          id: app_folder.id,
+          name: app_folder.name
+        }
+
+      # creates the app folder
+      user_connected = %{user_connected | app_folders: [livebook_proto_app_folder]}
+      refute_received {:app_folder_created, ^app_folder}
+      send(pid, {:event, :user_connected, user_connected})
+      assert_receive {:app_folder_created, ^app_folder}
+      assert app_folder in TeamClient.get_app_folders(team.id)
+
+      # updates the app folder
+      updated_app_folder = %{app_folder | name: "ChonkiestCat"}
+
+      updated_livebook_proto_app_folder = %{
+        livebook_proto_app_folder
+        | name: updated_app_folder.name
+      }
+
+      user_connected = %{user_connected | app_folders: [updated_livebook_proto_app_folder]}
+      send(pid, {:event, :user_connected, user_connected})
+      assert_receive {:app_folder_updated, ^updated_app_folder}
+      refute app_folder in TeamClient.get_app_folders(team.id)
+      assert updated_app_folder in TeamClient.get_app_folders(team.id)
+
+      # deletes the app folder
+      user_connected = %{user_connected | app_folders: []}
+      send(pid, {:event, :user_connected, user_connected})
+      assert_receive {:app_folder_deleted, ^updated_app_folder}
+      refute updated_app_folder in TeamClient.get_app_folders(team.id)
+    end
   end
 
   describe "handle agent_connected event" do
@@ -809,5 +853,43 @@ defmodule Livebook.Hubs.TeamClientTest do
       assert_receive {:agent_left, ^agent}
       refute agent in TeamClient.get_agents(team.id)
     end
+
+    test "dispatches the app folders list",
+         %{team: team, pid: pid, agent_connected: agent_connected} do
+      app_folder = build(:app_folder, hub_id: team.id)
+
+      livebook_proto_app_folder =
+        %LivebookProto.AppFolder{
+          id: app_folder.id,
+          name: app_folder.name
+        }
+
+      # creates the app folder
+      agent_connected = %{agent_connected | app_folders: [livebook_proto_app_folder]}
+      refute_received {:app_folder_created, ^app_folder}
+      send(pid, {:event, :agent_connected, agent_connected})
+      assert_receive {:app_folder_created, ^app_folder}
+      assert app_folder in TeamClient.get_app_folders(team.id)
+
+      # updates the app folder
+      updated_app_folder = %{app_folder | name: "ChonkiestCat"}
+
+      updated_livebook_proto_app_folder = %{
+        livebook_proto_app_folder
+        | name: updated_app_folder.name
+      }
+
+      agent_connected = %{agent_connected | app_folders: [updated_livebook_proto_app_folder]}
+      send(pid, {:event, :agent_connected, agent_connected})
+      assert_receive {:app_folder_updated, ^updated_app_folder}
+      refute app_folder in TeamClient.get_app_folders(team.id)
+      assert updated_app_folder in TeamClient.get_app_folders(team.id)
+
+      # deletes the app folder
+      agent_connected = %{agent_connected | app_folders: []}
+      send(pid, {:event, :agent_connected, agent_connected})
+      assert_receive {:app_folder_deleted, ^updated_app_folder}
+      refute updated_app_folder in TeamClient.get_app_folders(team.id)
+    end
   end
 end
diff --git a/test/livebook_teams/live_markdown/import_test.exs b/test/livebook_teams/live_markdown/import_test.exs
new file mode 100644
index 000000000..d14c443d3
--- /dev/null
+++ b/test/livebook_teams/live_markdown/import_test.exs
@@ -0,0 +1,48 @@
+defmodule Livebook.Integration.LiveMarkdown.ImportTest do
+  use Livebook.TeamsIntegrationCase, async: true
+
+  alias Livebook.Notebook
+  alias Livebook.LiveMarkdown
+
+  @moduletag teams_for: :user
+  setup :teams
+
+  @moduletag subscribe_to_hubs_topics: [:connection]
+  @moduletag subscribe_to_teams_topics: [:clients, :app_folders]
+
+  describe "app settings" do
+    test "don't import app folder if does not exists anymore",
+         %{node: node, team: team, org: org} do
+      app_folder = TeamsRPC.create_app_folder(node, name: "delete me", org: org)
+
+      app_folder_id = to_string(app_folder.id)
+      hub_id = team.id
+
+      assert_receive {:app_folder_created, %{id: ^app_folder_id, hub_id: ^hub_id}}
+
+      notebook = %{
+        Notebook.new()
+        | name: "Deleted from folder",
+          hub_id: hub_id,
+          app_settings: %{Notebook.AppSettings.new() | app_folder_id: app_folder_id},
+          sections: [
+            %{
+              Notebook.Section.new()
+              | name: "Section 1",
+                cells: []
+            }
+          ]
+      }
+
+      {markdown, []} = LiveMarkdown.Export.notebook_to_livemd(notebook)
+
+      TeamsRPC.delete_app_folder(node, app_folder)
+      assert_receive {:app_folder_deleted, %{id: ^app_folder_id, hub_id: ^hub_id}}
+
+      assert {%Notebook{name: "Deleted from folder", app_settings: %{app_folder_id: nil}},
+              %{warnings: warnings}} = LiveMarkdown.Import.notebook_from_livemd(markdown)
+
+      assert "notebook is assigned to a non-existent app folder, defaulting to ungrouped app folder" in warnings
+    end
+  end
+end
diff --git a/test/livebook_teams/web/session_live_test.exs b/test/livebook_teams/web/session_live_test.exs
index 3951e31a6..8f8cecfca 100644
--- a/test/livebook_teams/web/session_live_test.exs
+++ b/test/livebook_teams/web/session_live_test.exs
@@ -440,7 +440,8 @@ defmodule LivebookWeb.Integration.SessionLiveTest do
                    :agents,
                    :app_deployments,
                    :deployment_groups,
-                   :app_server
+                   :app_server,
+                   :app_folders
                  ]
 
     test "shows a message when non-teams hub is selected", %{conn: conn, session: session} do
@@ -491,7 +492,6 @@ defmodule LivebookWeb.Integration.SessionLiveTest do
 
       assert render(view) =~ "Step: add app server"
       assert render(view) =~ "You must set up an app server for the app to run on."
-
       assert render(view) =~ "Awaiting an app server to be set up."
 
       [deployment_group] = Livebook.Hubs.TeamClient.get_deployment_groups(team.id)
@@ -505,9 +505,8 @@ defmodule LivebookWeb.Integration.SessionLiveTest do
       |> element("button", "Deploy")
       |> render_click()
 
-      assert render(view) =~
-               "App deployment created successfully"
-
+      assert render(view) =~ "App deployment created successfully"
+      assert render(view) =~ "Ungrouped apps"
       assert render(view) =~ "#{Livebook.Config.teams_url()}/orgs/#{team.org_id}"
     end
 
@@ -567,8 +566,71 @@ defmodule LivebookWeb.Integration.SessionLiveTest do
       |> element("button", "Deploy")
       |> render_click()
 
-      assert render(view) =~
-               "App deployment created successfully"
+      assert render(view) =~ "App deployment created successfully"
+      assert render(view) =~ "Ungrouped apps"
+    end
+
+    test "deployment flow with existing app folders in the hub",
+         %{team: team, conn: conn, node: node, session: session, org: org} do
+      Session.set_notebook_hub(session.pid, team.id)
+
+      id = insert_deployment_group(mode: :online, hub_id: team.id).id
+      assert_receive {:deployment_group_created, %{id: ^id} = deployment_group}
+
+      app_folder_id = to_string(TeamsRPC.create_app_folder(node, org: org).id)
+      assert_receive {:app_folder_created, %{id: ^app_folder_id} = app_folder}
+
+      {:ok, view, _} = live(conn, ~p"/sessions/#{session.id}")
+
+      view
+      |> element("a", "Deploy with Livebook Teams")
+      |> render_click()
+
+      # Step: configuring valid app settings
+
+      assert render(view) =~ "You must configure your app before deploying it."
+
+      slug = Livebook.Utils.random_short_id()
+
+      view
+      |> element(~s/#app-settings-modal form/)
+      |> render_submit(%{"app_settings" => %{"slug" => slug, "app_folder_id" => app_folder_id}})
+
+      # From this point forward we are in a child LV
+      view = find_live_child(view, "app-teams")
+      assert render(view) =~ "App deployment with Livebook Teams"
+
+      # Step: selecting deployment group
+
+      view
+      |> element(~s/[phx-click="select_deployment_group"][phx-value-id="#{deployment_group.id}"]/)
+      |> render_click()
+
+      assert_receive {:operation, {:set_notebook_deployment_group, _, ^id}}
+      assert render(view) =~ "The selected deployment group has no app servers."
+
+      view
+      |> element(~s/button/, "Add app server")
+      |> render_click()
+
+      # Step: agent instance setup
+
+      assert render(view) =~ "Step: add app server"
+      assert render(view) =~ "Awaiting an app server to be set up."
+
+      [deployment_group] = Livebook.Hubs.TeamClient.get_deployment_groups(team.id)
+      simulate_agent_join(team, deployment_group)
+
+      assert render(view) =~ "An app server is running"
+
+      # Step: deploy
+
+      view
+      |> element("button", "Deploy")
+      |> render_click()
+
+      assert render(view) =~ "App deployment created successfully"
+      assert render(view) =~ app_folder.name
     end
 
     test "shows tooltip message if user is unauthorized to deploy apps",
@@ -740,4 +802,43 @@ defmodule LivebookWeb.Integration.SessionLiveTest do
       refute has_element?(view, ~s{button[id*="file-system-#{file_system.id}"]})
     end
   end
+
+  describe "app settings" do
+    @describetag subscribe_to_teams_topics: [:clients, :app_folders]
+
+    test "updates the list of app folders",
+         %{team: team, conn: conn, node: node, session: session, org: org} do
+      Session.set_notebook_hub(session.pid, team.id)
+      {:ok, view, _} = live(conn, ~p"/sessions/#{session.id}")
+
+      assert view
+             |> element(~s/[data-el-app-info] a/, "Configure")
+             |> render_click() =~ ~s(name="app_settings[app_folder_id]")
+
+      assert render(view) =~ ~s(<option value="">Select a folder...</option></select>)
+
+      app_folder = TeamsRPC.create_app_folder(node, name: "Tidewave", org: org)
+      id = to_string(app_folder.id)
+
+      assert_receive {:app_folder_created, %{id: ^id, name: "Tidewave"}}
+      assert_receive {:operation, {:sync_hub_app_folders, _}}
+
+      assert render(view) =~
+               ~s(<option value="">Select a folder...</option><option value="#{id}">Tidewave</option></select>)
+
+      {:ok, %{name: "Wavetide"}} = TeamsRPC.update_app_folder(node, app_folder, name: "Wavetide")
+
+      assert_receive {:app_folder_updated, %{id: ^id, name: "Wavetide"}}
+      assert_receive {:operation, {:sync_hub_app_folders, _}}
+      refute render(view) =~ ~s(<option value="#{id}">Tidewave</option>)
+      assert render(view) =~ ~s(<option value="#{id}">Wavetide</option>)
+
+      TeamsRPC.delete_app_folder(node, app_folder)
+
+      assert_receive {:app_folder_deleted, %{id: ^id, name: "Wavetide"}}
+      assert_receive {:operation, {:sync_hub_app_folders, _}}
+      refute render(view) =~ ~s(<option value="#{id}">Tidewave</option>)
+      refute render(view) =~ ~s(<option value="#{id}">Wavetide</option>)
+    end
+  end
 end
diff --git a/test/support/factory.ex b/test/support/factory.ex
index 5a4d0b81f..004349449 100644
--- a/test/support/factory.ex
+++ b/test/support/factory.ex
@@ -162,6 +162,13 @@ defmodule Livebook.Factory do
     }
   end
 
+  def build(:app_folder) do
+    %Livebook.Teams.AppFolder{
+      id: "#{unique_integer()}",
+      name: unique_value("app_folder")
+    }
+  end
+
   def build(factory_name, attrs) do
     factory_name |> build() |> struct!(attrs)
   end
diff --git a/test/support/integration/teams_rpc.ex b/test/support/integration/teams_rpc.ex
index 6c02941ff..4e292e713 100644
--- a/test/support/integration/teams_rpc.ex
+++ b/test/support/integration/teams_rpc.ex
@@ -163,6 +163,10 @@ defmodule Livebook.TeamsRPC do
     {key, :erpc.call(node, TeamsRPC, :create_org_token, [key, attrs])}
   end
 
+  def create_app_folder(node, attrs \\ []) do
+    :erpc.call(node, TeamsRPC, :create_app_folder, [attrs])
+  end
+
   # Update resource
 
   def update_authorization_group(node, authorization_group, attrs) do
@@ -191,6 +195,10 @@ defmodule Livebook.TeamsRPC do
     :erpc.call(node, TeamsRPC, :update_file_system, [file_system.external_id, org_key, attrs])
   end
 
+  def update_app_folder(node, app_folder, attrs \\ []) do
+    :erpc.call(node, TeamsRPC, :update_app_folder, [app_folder, attrs])
+  end
+
   # Delete resource
 
   def delete_user_org(node, user_id, org_id) do
@@ -206,6 +214,10 @@ defmodule Livebook.TeamsRPC do
     :erpc.call(node, TeamsRPC, :delete_file_system, [id, org_key, livebook_version])
   end
 
+  def delete_app_folder(node, app_folder) do
+    :erpc.call(node, TeamsRPC, :delete_app_folder, [app_folder])
+  end
+
   # Actions
 
   def upload_app_deployment(