diff --git a/argocd/manifests/grafana/values.yaml b/argocd/manifests/grafana/values.yaml
index b07c74e..e9e2207 100644
--- a/argocd/manifests/grafana/values.yaml
+++ b/argocd/manifests/grafana/values.yaml
@@ -91,7 +91,7 @@ sidecar:
     labelValue: "1"
     folderAnnotation: grafana_folder
     provider:
-      foldersFromFilesStructure: false
+      foldersFromFilesStructure: true
 
 # Service configuration (Ingress will handle external access)
 service:
diff --git a/docs/changelog.d/fix-grafana-teslamate-folder.bugfix.md b/docs/changelog.d/fix-grafana-teslamate-folder.bugfix.md
new file mode 100644
index 0000000..4abebb6
--- /dev/null
+++ b/docs/changelog.d/fix-grafana-teslamate-folder.bugfix.md
@@ -0,0 +1 @@
+Fix Grafana TeslaMate dashboards not appearing in a folder — enabled `foldersFromFilesStructure` so the sidecar's `grafana_folder` annotation is respected.