diff --git a/Cargo.lock b/Cargo.lock
index 52b61d5b..11adb533 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1750,7 +1750,7 @@ checksum = "42f5e15c9953c5e4ccceeb2e7382a716482c34515315f7b03532b8b4e8393d2d"
 
 [[package]]
 name = "oxicloud"
-version = "0.4.0"
+version = "0.4.1"
 dependencies = [
  "anyhow",
  "argon2",
diff --git a/src/interfaces/api/handlers/file_handler.rs b/src/interfaces/api/handlers/file_handler.rs
index 02e98bb3..50ca4884 100644
--- a/src/interfaces/api/handlers/file_handler.rs
+++ b/src/interfaces/api/handlers/file_handler.rs
@@ -64,7 +64,19 @@ impl FileHandler {
             }
 
             if name == "file" {
-                let filename = field.file_name().unwrap_or("unnamed").to_string();
+                let raw_filename = field.file_name().unwrap_or("unnamed").to_string();
+                // Browsers send the full relative path (e.g. "Screenshots/file.png")
+                // as the filename for folder uploads via webkitRelativePath.
+                // Strip path components to get the basename only.
+                // This also prevents path-traversal attacks.
+                let filename = raw_filename
+                    .rsplit('/')
+                    .next()
+                    .unwrap_or(&raw_filename)
+                    .rsplit('\\')
+                    .next()
+                    .unwrap_or(&raw_filename)
+                    .to_string();
                 let content_type = field
                     .content_type()
                     .unwrap_or("application/octet-stream")
diff --git a/static/js/fileOperations.js b/static/js/fileOperations.js
index 189c82b7..b2aa6aac 100644
--- a/static/js/fileOperations.js
+++ b/static/js/fileOperations.js
@@ -279,7 +279,9 @@ const fileOps = {
             
             const formData = new FormData();
             formData.append('folder_id', targetFolderId);
-            formData.append('file', file);
+            // Use file.name as the explicit filename to prevent the browser
+            // from sending the full webkitRelativePath as the filename
+            formData.append('file', file, file.name);
 
             const displayName = file.webkitRelativePath || file.name;
 
diff --git a/static/js/ui.js b/static/js/ui.js
index 487a53c7..0f1195d8 100644
--- a/static/js/ui.js
+++ b/static/js/ui.js
@@ -291,7 +291,15 @@ const ui = {
             e._oxiHandled = true;  // Mark as handled for document-level fallback
             dropzone.classList.remove('active');
             if (e.dataTransfer.files.length > 0) {
-                fileOps.uploadFiles(e.dataTransfer.files);
+                // Detect folder drops: files from folder drops have webkitRelativePath set
+                const hasRelativePaths = Array.from(e.dataTransfer.files).some(
+                    f => f.webkitRelativePath && f.webkitRelativePath.includes('/')
+                );
+                if (hasRelativePaths) {
+                    fileOps.uploadFolderFiles(e.dataTransfer.files);
+                } else {
+                    fileOps.uploadFiles(e.dataTransfer.files);
+                }
             }
             setTimeout(() => {
                 dropzone.style.display = 'none';
@@ -327,7 +335,15 @@ const ui = {
             if (e._oxiHandled) return;
 
             if (e.dataTransfer.files.length > 0) {
-                fileOps.uploadFiles(e.dataTransfer.files);
+                // Detect folder drops: files from folder drops have webkitRelativePath set
+                const hasRelativePaths = Array.from(e.dataTransfer.files).some(
+                    f => f.webkitRelativePath && f.webkitRelativePath.includes('/')
+                );
+                if (hasRelativePaths) {
+                    fileOps.uploadFolderFiles(e.dataTransfer.files);
+                } else {
+                    fileOps.uploadFiles(e.dataTransfer.files);
+                }
             }
 
             setTimeout(() => {