diff --git a/MODEL_SPEC_FOLDERS.md b/MODEL_SPEC_FOLDERS.md
new file mode 100644
index 0000000000..ef1a909899
--- /dev/null
+++ b/MODEL_SPEC_FOLDERS.md
@@ -0,0 +1,147 @@
+# Model Spec Subfolder Support
+
+This enhancement adds the ability to organize model specs into subfolders/categories for better organization and user experience.
+
+## Feature Overview
+
+Model specs can now be grouped into folders by adding an optional `folder` field to each spec. This helps organize related models together, making it easier for users to find and select the appropriate model for their needs.
+
+## Configuration
+
+### Basic Usage
+
+Add a `folder` field to any model spec in your `librechat.yaml`:
+
+```yaml
+modelSpecs:
+ list:
+ - name: "gpt4_turbo"
+ label: "GPT-4 Turbo"
+ folder: "OpenAI Models" # This spec will appear under "OpenAI Models" folder
+ preset:
+ endpoint: "openAI"
+ model: "gpt-4-turbo-preview"
+```
+
+### Folder Structure
+
+- **With Folder**: Model specs with the `folder` field will be grouped under that folder name
+- **Without Folder**: Model specs without the `folder` field appear at the root level
+- **Multiple Folders**: You can create as many folders as needed to organize your models
+- **Alphabetical Sorting**: Folders are sorted alphabetically, and specs within folders are sorted by their `order` field or label
+
+### Example Configuration
+
+```yaml
+modelSpecs:
+ list:
+ # OpenAI Models Category
+ - name: "gpt4_turbo"
+ label: "GPT-4 Turbo"
+ folder: "OpenAI Models"
+ preset:
+ endpoint: "openAI"
+ model: "gpt-4-turbo-preview"
+
+ - name: "gpt35_turbo"
+ label: "GPT-3.5 Turbo"
+ folder: "OpenAI Models"
+ preset:
+ endpoint: "openAI"
+ model: "gpt-3.5-turbo"
+
+ # Anthropic Models Category
+ - name: "claude3_opus"
+ label: "Claude 3 Opus"
+ folder: "Anthropic Models"
+ preset:
+ endpoint: "anthropic"
+ model: "claude-3-opus-20240229"
+
+ # Root level model (no folder)
+ - name: "quick_chat"
+ label: "Quick Chat"
+ preset:
+ endpoint: "openAI"
+ model: "gpt-3.5-turbo"
+```
+
+## UI Features
+
+### Folder Display
+- Folders are displayed with expand/collapse functionality
+- Folder icons change between open/closed states
+- Indentation shows the hierarchy clearly
+
+### Search Integration
+- When searching for models, the folder path is shown for context
+- Search works across all models regardless of folder structure
+
+### User Experience
+- Folders start expanded by default for easy access
+- Click on folder header to expand/collapse
+- Selected model is highlighted with a checkmark
+- Folder state is preserved during the session
+
+## Benefits
+
+1. **Better Organization**: Group related models together (e.g., by provider, capability, or use case)
+2. **Improved Navigation**: Users can quickly find models in organized categories
+3. **Scalability**: Handles large numbers of model specs without overwhelming the UI
+4. **Backward Compatible**: Existing configurations without folders continue to work
+5. **Flexible Structure**: Mix foldered and non-foldered specs as needed
+
+## Use Cases
+
+### By Provider
+```yaml
+folder: "OpenAI Models"
+folder: "Anthropic Models"
+folder: "Google Models"
+```
+
+### By Capability
+```yaml
+folder: "Vision Models"
+folder: "Code Models"
+folder: "Creative Writing"
+```
+
+### By Performance Tier
+```yaml
+folder: "Premium Models"
+folder: "Standard Models"
+folder: "Budget Models"
+```
+
+### By Department/Team
+```yaml
+folder: "Engineering Team"
+folder: "Marketing Team"
+folder: "Research Team"
+```
+
+## Implementation Details
+
+### Type Changes
+- Added optional `folder?: string` field to `TModelSpec` type
+- Updated `tModelSpecSchema` to include the folder field validation
+
+### Components
+- Created `ModelSpecFolder` component for rendering folder structure
+- Updated `ModelSelector` to use folder-aware rendering
+- Enhanced search results to show folder context
+
+### Behavior
+- Folders are collapsible with state management
+- Models are sorted within folders by order/label
+- Root-level models appear after all folders
+
+## Migration
+
+No migration needed - the feature is fully backward compatible. Existing model specs without the `folder` field will continue to work and appear at the root level.
+
+## See Also
+
+- `librechat.example.subfolder.yaml` - Complete example configuration
+- GitHub Issue #9165 - Original feature request
\ No newline at end of file
diff --git a/client/src/components/Chat/Menus/Endpoints/ModelSelector.tsx b/client/src/components/Chat/Menus/Endpoints/ModelSelector.tsx
index 01d96432a7..234194bf23 100644
--- a/client/src/components/Chat/Menus/Endpoints/ModelSelector.tsx
+++ b/client/src/components/Chat/Menus/Endpoints/ModelSelector.tsx
@@ -2,7 +2,7 @@ import React, { useMemo } from 'react';
import type { ModelSelectorProps } from '~/common';
import { ModelSelectorProvider, useModelSelectorContext } from './ModelSelectorContext';
import { ModelSelectorChatProvider } from './ModelSelectorChatContext';
-import { renderModelSpecs, renderEndpoints, renderSearchResults } from './components';
+import { renderModelSpecsWithFolders, renderEndpoints, renderSearchResults } from './components';
import { getSelectedIcon, getDisplayValue } from './utils';
import { CustomMenu as Menu } from './CustomMenu';
import DialogManager from './DialogManager';
@@ -86,7 +86,7 @@ function ModelSelectorContent() {
renderSearchResults(searchResults, localize, searchValue)
) : (
<>
- {renderModelSpecs(modelSpecs, selectedValues.modelSpec || '')}
+ {renderModelSpecsWithFolders(modelSpecs, selectedValues.modelSpec || '')}
{renderEndpoints(mappedEndpoints ?? [])}
)}
diff --git a/client/src/components/Chat/Menus/Endpoints/components/ModelSpecFolder.tsx b/client/src/components/Chat/Menus/Endpoints/components/ModelSpecFolder.tsx
new file mode 100644
index 0000000000..7b49ad6524
--- /dev/null
+++ b/client/src/components/Chat/Menus/Endpoints/components/ModelSpecFolder.tsx
@@ -0,0 +1,132 @@
+import React, { useState } from 'react';
+import { ChevronDown, ChevronRight, Folder, FolderOpen } from 'lucide-react';
+import type { TModelSpec } from 'librechat-data-provider';
+import { ModelSpecItem } from './ModelSpecItem';
+import { cn } from '~/utils';
+
+interface ModelSpecFolderProps {
+ folderName: string;
+ specs: TModelSpec[];
+ selectedSpec: string;
+ level?: number;
+}
+
+export function ModelSpecFolder({
+ folderName,
+ specs,
+ selectedSpec,
+ level = 0
+}: ModelSpecFolderProps) {
+ const [isExpanded, setIsExpanded] = useState(true);
+
+ const handleToggle = (e: React.MouseEvent) => {
+ e.stopPropagation();
+ setIsExpanded(!isExpanded);
+ };
+
+ const indent = level * 16;
+
+ return (
+