Figma unveiled nested folders, a long‑requested feature that improves file organization for growing teams and integrates with its AI‑native capabilities.
Figma’s latest update introduces nested folders, a long‑awaited feature that streamlines file organization for design teams of all sizes.
Why nested folders matter
Design systems grow quickly, and flat structures can become chaotic. Nested folders let teams group related components, prototypes, and assets under logical hierarchies, reducing search time and preventing naming collisions.
Integration with AI‑native tools
The new folder system works hand‑in‑hand with Figma’s AI assistants. When generating components, the AI can suggest appropriate parent folders, and users can query the hierarchy using natural language prompts.
How the feature was built
Figma’s engineering team tackled three core challenges: preserving real‑time collaboration across nested layers, ensuring backward compatibility with existing files, and keeping performance snappy on both web and desktop clients.
- A lightweight metadata schema was added to track folder depth without bloating file size
- The collaboration engine was refactored to propagate folder changes instantly to all collaborators
- Extensive UI testing ensured drag‑and‑drop reordering feels natural across devices
Beta testers reported that the ability to collapse and expand folder trees mirrors familiar file‑system experiences, making onboarding new designers smoother.
Nested folders feel like a natural evolution of Figma’s workspace, turning a sprawling canvas into a tidy, searchable library.
While the feature is optional, Figma recommends enabling it for teams handling more than a few hundred components to maintain clarity and speed.