diff --git a/backend/e2e-test/routes/v2/secret-folder.spec.ts b/backend/e2e-test/routes/v2/secret-folder.spec.ts
index 9cdad32fe..babc08385 100644
--- a/backend/e2e-test/routes/v2/secret-folder.spec.ts
+++ b/backend/e2e-test/routes/v2/secret-folder.spec.ts
@@ -41,7 +41,7 @@ describe("Secret Folder Router", async () => {
     { name: "folder1", path: "/" }, // one in root
     { name: "folder1", path: "/level1/level2" }, // then create a deep one creating intermediate ones
     { name: "folder2", path: "/" },
-    { name: "folder1", path: "/level1/level2" } // this should not create folder return same thing
+    { name: "folder3", path: "/level1/level2" }
   ])("Create folder $name in $path", async ({ name, path }) => {
     const createdFolder = await createFolder({ path, name });
     // check for default environments
@@ -58,7 +58,7 @@ describe("Secret Folder Router", async () => {
     {
       path: "/",
       expected: {
-        folders: [{ name: "folder1" }, { name: "level1" }, { name: "folder2" }],
+        folders: [{ name: "folder4" }, { name: "level2" }, { name: "folder5" }],
         length: 3
       }
     },
@@ -163,4 +163,25 @@ describe("Secret Folder Router", async () => {
     expect(updatedFolderList).toHaveProperty("folders");
     expect(updatedFolderList.folders.length).toEqual(0);
   });
+
+  test("Creating a duplicate folder should return a 400 error", async () => {
+    await createFolder({ name: "folder-duplicate", path: "/level1/level2" });
+
+    const res = await testServer.inject({
+      method: "POST",
+      url: `/api/v2/folders`,
+      headers: {
+        authorization: `Bearer ${jwtAuthToken}`
+      },
+      body: {
+        projectId: seedData1.project.id,
+        environment: seedData1.environment.slug,
+        name: "folder-duplicate",
+        path: "/level1/level2"
+      }
+    });
+    expect(res.statusCode).toBe(400);
+    const payload = JSON.parse(res.payload);
+    expect(payload).toHaveProperty("error");
+  });
 });