diff --git a/backend/src/controllers/v1/secretsFolderController.ts b/backend/src/controllers/v1/secretsFolderController.ts
new file mode 100644
index 000000000..2e856c2a4
--- /dev/null
+++ b/backend/src/controllers/v1/secretsFolderController.ts
@@ -0,0 +1,89 @@
+import { Request, Response } from 'express';
+import { Secret } from '../../models';
+import Folder from '../../models/folder';
+import { BadRequestError } from '../../utils/errors';
+import { ROOT_FOLDER_PATH, getFolderPath, getParentPath, normalizePath, validateFolderName } from '../../utils/folder';
+import { ADMIN, MEMBER } from '../../variables';
+import { validateMembership } from '../../helpers/membership';
+
+// TODO
+// verify workspace id/environment
+export const createFolder = async (req: Request, res: Response) => {
+  const { workspaceId, environment, folderName, parentFolderId } = req.body
+  if (!validateFolderName(folderName)) {
+    throw BadRequestError({ message: "Folder name cannot contain spaces. Only underscore and dashes" })
+  }
+
+  if (parentFolderId) {
+    const parentFolder = await Folder.find({ environment: environment, workspace: workspaceId, id: parentFolderId });
+    if (!parentFolder) {
+      throw BadRequestError({ message: "The parent folder doesn't exist" })
+    }
+  }
+
+  let completePath = await getFolderPath(parentFolderId)
+  if (completePath == ROOT_FOLDER_PATH) {
+    completePath = ""
+  }
+
+  const currentFolderPath = completePath + "/" + folderName // construct new path with current folder to be created
+  const normalizedCurrentPath = normalizePath(currentFolderPath)
+  const normalizedParentPath = getParentPath(normalizedCurrentPath)
+
+  const existingFolder = await Folder.findOne({
+    name: folderName,
+    workspace: workspaceId,
+    environment: environment,
+    parent: parentFolderId,
+    path: normalizedCurrentPath
+  });
+
+  if (existingFolder) {
+    return res.json(existingFolder)
+  }
+
+  const newFolder = new Folder({
+    name: folderName,
+    workspace: workspaceId,
+    environment: environment,
+    parent: parentFolderId,
+    path: normalizedCurrentPath,
+    parentPath: normalizedParentPath
+  });
+
+  await newFolder.save();
+
+  return res.json(newFolder)
+}
+
+export const deleteFolder = async (req: Request, res: Response) => {
+  const { folderId } = req.params
+  const queue: any[] = [folderId];
+
+  const folder = await Folder.findById(folderId);
+  if (!folder) {
+    throw BadRequestError({ message: "The folder doesn't exist" })
+  }
+
+  // check that user is a member of the workspace
+  await validateMembership({
+    userId: req.user._id.toString(),
+    workspaceId: folder.workspace as any,
+    acceptedRoles: [ADMIN, MEMBER]
+  });
+
+  while (queue.length > 0) {
+    const currentFolderId = queue.shift();
+
+    const childFolders = await Folder.find({ parent: currentFolderId });
+    for (const childFolder of childFolders) {
+      queue.push(childFolder._id);
+    }
+
+    await Secret.deleteMany({ folder: currentFolderId });
+
+    await Folder.deleteOne({ _id: currentFolderId });
+  }
+
+  res.send()
+}
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diff --git a/backend/src/models/folder.ts b/backend/src/models/folder.ts
new file mode 100644
index 000000000..885e320a8
--- /dev/null
+++ b/backend/src/models/folder.ts
@@ -0,0 +1,36 @@
+import { Schema, Types, model } from 'mongoose';
+
+const folderSchema = new Schema({
+  name: {
+    type: String,
+    required: true,
+  },
+  workspace: {
+    type: Schema.Types.ObjectId,
+    ref: 'Workspace',
+    required: true,
+  },
+  environment: {
+    type: String,
+    required: true,
+  },
+  parent: {
+    type: Schema.Types.ObjectId,
+    ref: 'Folder',
+    required: false, // optional for root folders
+  },
+  path: {
+    type: String,
+    required: true
+  },
+  parentPath: {
+    type: String,
+    required: true,
+  },
+}, {
+  timestamps: true
+});
+
+const Folder = model('Folder', folderSchema);
+
+export default Folder;
\ No newline at end of file
diff --git a/backend/src/utils/folder.ts b/backend/src/utils/folder.ts
new file mode 100644
index 000000000..f12845339
--- /dev/null
+++ b/backend/src/utils/folder.ts
@@ -0,0 +1,87 @@
+import Folder from "../models/folder";
+
+export const ROOT_FOLDER_PATH = "/"
+
+export const getFolderPath = async (folderId: string) => {
+  let currentFolder = await Folder.findById(folderId);
+  const pathSegments = [];
+
+  while (currentFolder) {
+    pathSegments.unshift(currentFolder.name);
+    currentFolder = currentFolder.parent ? await Folder.findById(currentFolder.parent) : null;
+  }
+
+  return '/' + pathSegments.join('/');
+};
+
+/**
+  Returns the folder ID associated with the specified secret path in the given workspace and environment.
+  @param workspaceId - The ID of the workspace to search in.
+  @param environment - The environment to search in.
+  @param secretPath - The secret path to search for.
+  @returns The folder ID associated with the specified secret path, or undefined if the path is at the root folder level.
+  @throws Error if the specified secret path is not found.
+*/
+export const getFolderIdFromPath = async (workspaceId: string, environment: string, secretPath: string) => {
+  const secretPathParts = secretPath.split("/").filter(path => path != "")
+  if (secretPathParts.length <= 1) {
+    return undefined // root folder, so no folder id 
+  }
+
+  const folderId = await Folder.find({ path: secretPath, workspace: workspaceId, environment: environment })
+  if (!folderId) {
+    throw Error("Secret path not found")
+  }
+
+  return folderId
+}
+
+/**
+ * Cleans up a path by removing empty parts, duplicate slashes,
+ * and ensuring it starts with ROOT_FOLDER_PATH.
+ * @param path - The input path to clean up.
+ * @returns The cleaned-up path string.
+ */
+export const normalizePath = (path: string) => {
+  if (path == undefined || path == "" || path == ROOT_FOLDER_PATH) {
+    return ROOT_FOLDER_PATH
+  }
+
+  const pathParts = path.split("/").filter(part => part != "")
+  const cleanPathString = ROOT_FOLDER_PATH + pathParts.join("/")
+
+  return cleanPathString
+}
+
+export const getFoldersInDirectory = async (workspaceId: string, environment: string, pathString: string) => {
+  const normalizedPath = normalizePath(pathString)
+  const foldersInDirectory = await Folder.find({
+    workspace: workspaceId,
+    environment: environment,
+    parentPath: normalizedPath,
+  });
+
+  return foldersInDirectory;
+}
+
+/**
+ * Returns the parent path of the given path.
+ * @param path - The input path.
+ * @returns The parent path string.
+ */
+export const getParentPath = (path: string) => {
+  const normalizedPath = normalizePath(path);
+  const folderParts = normalizedPath.split('/').filter(part => part !== '');
+
+  let folderParent = ROOT_FOLDER_PATH;
+  if (folderParts.length > 1) {
+    folderParent = ROOT_FOLDER_PATH + folderParts.slice(0, folderParts.length - 1).join('/');
+  }
+
+  return folderParent;
+}
+
+export const validateFolderName = (folderName: string) => {
+  const validNameRegex = /^[a-zA-Z0-9-_]+$/;
+  return validNameRegex.test(folderName);
+}
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