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: