Figma Blog: Code, craft, and the making of nested folders

Figma launched nested folders on August 3, 2026, replacing the Projects model that had structured file organization since the product’s early days. Teams can now create folders inside folders, up to 10 levels deep, and apply color coding to distinguish them visually. Permissions are inherited from the parent folder by default, or can be restricted to specific collaborators.

The rollout happens gradually over several weeks and applies to all paid plans. Starter plan accounts retain a single-folder structure.

The accompanying blog post describes how the feature was built as much as what it does. Figma’s cross-functional team used an unusual working model: engineers submitted pull requests as working prototypes rather than relying on specification documents, and roles blurred throughout development — engineers made design decisions, designers wrote code. The team ran an early-access program with communities worldwide to pressure-test organization structures against real-world complexity before the general launch.

The blog frames the process through two ideas: treating code as a proposal and turning handoffs into conversations. Both signal something broader about how Figma’s internal teams are working as AI tools lower the cost of moving between design and implementation.

For design teams, nested folders matter most when managing large design systems, multiple products, or complex client hierarchies. The old flat Projects structure forced workarounds — naming conventions, tagging systems, split workspaces — that added overhead without adding clarity. Nested folders remove those workarounds.

The feature is worth tracking not just for the organizational gain but because of what the build process reveals about how Figma is structuring its own design-to-engineering workflows in 2026.