diff --git a/.changeset/feat-collpase-folder-setting.md b/.changeset/feat-collpase-folder-setting.md
new file mode 100644
index 000000000..b49339c45
--- /dev/null
+++ b/.changeset/feat-collpase-folder-setting.md
@@ -0,0 +1,5 @@
+---
+default: minor
+---
+
+Add a setting to collapse sidebar folders by default.
diff --git a/src/app/features/settings/cosmetics/Themes.tsx b/src/app/features/settings/cosmetics/Themes.tsx
index 77e692265..3e5c8cac1 100644
--- a/src/app/features/settings/cosmetics/Themes.tsx
+++ b/src/app/features/settings/cosmetics/Themes.tsx
@@ -482,6 +482,10 @@ function PageZoomInput() {
 export function Appearance() {
   const [twitterEmoji, setTwitterEmoji] = useSetting(settingsAtom, 'twitterEmoji');
   const [showEasterEggs, setShowEasterEggs] = useSetting(settingsAtom, 'showEasterEggs');
+  const [closeFoldersByDefault, setCloseFoldersByDefault] = useSetting(
+    settingsAtom,
+    'closeFoldersByDefault'
+  );
 
   return (
     <Box direction="Column" gap="700">
@@ -500,6 +504,21 @@ export function Appearance() {
           />
         </SequenceCard>
 
+        <SequenceCard className={SequenceCardStyle} variant="SurfaceVariant" direction="Column">
+          <SettingTile
+            title="Close Space Folders by Default"
+            focusId="collapse-folders-by-default"
+            description="Collapse sidebar folders upon loading."
+            after={
+              <Switch
+                variant="Primary"
+                value={closeFoldersByDefault}
+                onChange={setCloseFoldersByDefault}
+              />
+            }
+          />
+        </SequenceCard>
+
         <SequenceCard className={SequenceCardStyle} variant="SurfaceVariant" direction="Column">
           <SettingTile
             title="Show Easter Eggs"
diff --git a/src/app/state/openedSidebarFolder.ts b/src/app/state/openedSidebarFolder.ts
index 743160d4b..79461db8d 100644
--- a/src/app/state/openedSidebarFolder.ts
+++ b/src/app/state/openedSidebarFolder.ts
@@ -5,6 +5,7 @@ import {
   getLocalStorageItem,
   setLocalStorageItem,
 } from './utils/atomWithLocalStorage';
+import { getSettings } from './settings';
 
 const OPENED_SIDEBAR_FOLDER = 'openedSidebarFolder';
 
@@ -30,6 +31,10 @@ export const makeOpenedSidebarFolderAtom = (userId: string): OpenedSidebarFolder
   const baseOpenedSidebarFolderAtom = atomWithLocalStorage<Set<string>>(
     storeKey,
     (key) => {
+      const settings = getSettings();
+      if (settings.closeFoldersByDefault) {
+        return new Set<string>();
+      }
       const arrayValue = getLocalStorageItem<string[]>(key, []);
       return new Set(arrayValue);
     },
diff --git a/src/app/state/settings.ts b/src/app/state/settings.ts
index 8a4956394..3dcf1b1fb 100644
--- a/src/app/state/settings.ts
+++ b/src/app/state/settings.ts
@@ -111,13 +111,11 @@ export interface Settings {
   alwaysShowCallButton: boolean;
   faviconForMentionsOnly: boolean;
   highlightMentions: boolean;
-  /**
-   * whether to enable pk compat
-   */
   pkCompat: boolean;
   pmpProxying: boolean;
   mentionInReplies: boolean;
   showPersonaSetting: boolean;
+  closeFoldersByDefault: boolean;
 
   // furry stuff
   renderAnimals: boolean;
@@ -216,6 +214,7 @@ const defaultSettings: Settings = {
   pmpProxying: false,
   mentionInReplies: true,
   showPersonaSetting: false,
+  closeFoldersByDefault: false,
 
   // furry stuff
   renderAnimals: true,