diff --git a/app/models/project_folder.rb b/app/models/project_folder.rb
index 508a8a656..f529f7c0e 100644
--- a/app/models/project_folder.rb
+++ b/app/models/project_folder.rb
@@ -8,7 +8,7 @@ class ProjectFolder < ApplicationRecord
   validates :name,
             length: { minimum: Constants::NAME_MIN_LENGTH,
                       maximum: Constants::NAME_MAX_LENGTH },
-            uniqueness: { scope: %i(team_id parent_folder_id), case_sensitive: false }
+            uniqueness: { scope: %i(team_id parent_folder_id archived), case_sensitive: false }
   validate :parent_folder_team, if: -> { parent_folder.present? }
   validate :parent_folder_validation, if: -> { parent_folder.present? }
 
diff --git a/spec/models/project_folder_spec.rb b/spec/models/project_folder_spec.rb
index 81e733fa2..2f231bb5e 100644
--- a/spec/models/project_folder_spec.rb
+++ b/spec/models/project_folder_spec.rb
@@ -37,7 +37,8 @@ describe ProjectFolder, type: :model do
                          .is_at_most(Constants::NAME_MAX_LENGTH))
       end
       it do
-        expect(project_folder).to validate_uniqueness_of(:name).scoped_to(%i(team_id parent_folder_id)).case_insensitive
+        expect(project_folder)
+          .to validate_uniqueness_of(:name).scoped_to(%i(team_id parent_folder_id archived)).case_insensitive
       end
     end