diff --git a/lib/core/providers/app_providers.dart b/lib/core/providers/app_providers.dart
index 70f710f..ba0f3b2 100644
--- a/lib/core/providers/app_providers.dart
+++ b/lib/core/providers/app_providers.dart
@@ -890,6 +890,10 @@ void refreshConversationsCache(dynamic ref, {bool includeFolders = false}) {
   ref.read(_conversationsCacheTimestampProvider.notifier).set(null);
   final notifier = ref.read(conversationsProvider.notifier);
   unawaited(notifier.refresh(includeFolders: includeFolders));
+  if (includeFolders) {
+    final foldersNotifier = ref.read(foldersProvider.notifier);
+    unawaited(foldersNotifier.refresh());
+  }
 }
 
 // Conversation providers - Now using correct OpenWebUI API with caching and
@@ -918,7 +922,7 @@ class Conversations extends _$Conversations {
       _updateCacheTimestamp(null);
       state = AsyncData<List<Conversation>>(<Conversation>[]);
       if (includeFolders) {
-        ref.invalidate(foldersProvider);
+        unawaited(ref.read(foldersProvider.notifier).refresh());
       }
       return;
     }
@@ -926,7 +930,7 @@ class Conversations extends _$Conversations {
     if (ref.read(reviewerModeProvider)) {
       state = AsyncData<List<Conversation>>(_demoConversations());
       if (includeFolders) {
-        ref.invalidate(foldersProvider);
+        unawaited(ref.read(foldersProvider.notifier).refresh());
       }
       return;
     }
@@ -935,7 +939,7 @@ class Conversations extends _$Conversations {
     if (!ref.mounted) return;
     state = result;
     if (includeFolders) {
-      ref.invalidate(foldersProvider);
+      unawaited(ref.read(foldersProvider.notifier).refresh());
     }
   }
 
@@ -1823,32 +1827,94 @@ final webSearchAvailableProvider = Provider<bool>((ref) {
 
 // Folders provider
 @Riverpod(keepAlive: true)
-Future<List<Folder>> folders(Ref ref) async {
-  // Protected: require authentication
-  if (!ref.read(isAuthenticatedProvider2)) {
-    DebugLogger.log('skip-unauthed', scope: 'folders');
-    return [];
-  }
-  final api = ref.watch(apiServiceProvider);
-  if (api == null) {
-    DebugLogger.warning('api-missing', scope: 'folders');
-    return [];
+class Folders extends _$Folders {
+  @override
+  Future<List<Folder>> build() async {
+    if (!ref.watch(isAuthenticatedProvider2)) {
+      DebugLogger.log('skip-unauthed', scope: 'folders');
+      return const [];
+    }
+    final api = ref.watch(apiServiceProvider);
+    if (api == null) {
+      DebugLogger.warning('api-missing', scope: 'folders');
+      return const [];
+    }
+    return _load(api);
   }
 
-  try {
-    final foldersData = await api.getFolders();
-    final folders = foldersData
-        .map((folderData) => Folder.fromJson(folderData))
-        .toList();
-    DebugLogger.log(
-      'fetch-ok',
-      scope: 'folders',
-      data: {'count': folders.length},
-    );
-    return folders;
-  } catch (e) {
-    DebugLogger.error('fetch-failed', scope: 'folders', error: e);
-    return [];
+  Future<void> refresh() async {
+    if (!ref.read(isAuthenticatedProvider2)) {
+      state = const AsyncData<List<Folder>>([]);
+      return;
+    }
+    final api = ref.read(apiServiceProvider);
+    if (api == null) {
+      state = const AsyncData<List<Folder>>([]);
+      return;
+    }
+    final result = await AsyncValue.guard(() => _load(api));
+    if (!ref.mounted) return;
+    state = result;
+  }
+
+  void upsertFolder(Folder folder) {
+    final current = state.asData?.value ?? const <Folder>[];
+    final updated = <Folder>[...current];
+    final index = updated.indexWhere((existing) => existing.id == folder.id);
+    if (index >= 0) {
+      updated[index] = folder;
+    } else {
+      updated.add(folder);
+    }
+    state = AsyncData<List<Folder>>(_sort(updated));
+  }
+
+  void updateFolder(String id, Folder Function(Folder folder) transform) {
+    final current = state.asData?.value;
+    if (current == null) return;
+    final index = current.indexWhere((folder) => folder.id == id);
+    if (index < 0) return;
+    final updated = <Folder>[...current];
+    updated[index] = transform(updated[index]);
+    state = AsyncData<List<Folder>>(_sort(updated));
+  }
+
+  void removeFolder(String id) {
+    final current = state.asData?.value;
+    if (current == null) return;
+    final updated = current
+        .where((folder) => folder.id != id)
+        .toList(growable: true);
+    state = AsyncData<List<Folder>>(_sort(updated));
+  }
+
+  Future<List<Folder>> _load(ApiService api) async {
+    try {
+      final foldersData = await api.getFolders();
+      final folders = foldersData
+          .map((folderData) => Folder.fromJson(folderData))
+          .toList();
+      DebugLogger.log(
+        'fetch-ok',
+        scope: 'folders',
+        data: {'count': folders.length},
+      );
+      return _sort(folders);
+    } catch (e, stackTrace) {
+      DebugLogger.error(
+        'fetch-failed',
+        scope: 'folders',
+        error: e,
+        stackTrace: stackTrace,
+      );
+      return const [];
+    }
+  }
+
+  List<Folder> _sort(List<Folder> input) {
+    final sorted = [...input];
+    sorted.sort((a, b) => a.name.toLowerCase().compareTo(b.name.toLowerCase()));
+    return List<Folder>.unmodifiable(sorted);
   }
 }
 
diff --git a/lib/core/services/api_service.dart b/lib/core/services/api_service.dart
index b8ab4c8..b588f7b 100644
--- a/lib/core/services/api_service.dart
+++ b/lib/core/services/api_service.dart
@@ -3003,23 +3003,23 @@ class ApiService {
     );
     final data = response.data;
     // The endpoint can return a List[ChatTitleIdResponse] or a map.
-    // Normalize to a List<Conversation> using our safe parser.
+    // Normalize to a List<Conversation> using our isolate parser.
     if (data is List) {
-      return data
-          .whereType<Map<String, dynamic>>()
-          .map((e) => Conversation.fromJson(parseConversationSummary(e)))
-          .toList();
+      return _parseConversationSummaryList(
+        data,
+        debugLabel: 'parse_search_direct',
+      );
     }
     if (data is Map<String, dynamic>) {
       final list = (data['conversations'] ?? data['items'] ?? data['results']);
       if (list is List) {
-        return list
-            .whereType<Map<String, dynamic>>()
-            .map((e) => Conversation.fromJson(parseConversationSummary(e)))
-            .toList();
+        return _parseConversationSummaryList(
+          list,
+          debugLabel: 'parse_search_wrapped',
+        );
       }
     }
-    return <Conversation>[];
+    return const <Conversation>[];
   }
 
   /// Search within messages content (capability-safe)
diff --git a/lib/core/services/optimized_storage_service.dart b/lib/core/services/optimized_storage_service.dart
index f15327c..9b44b5a 100644
--- a/lib/core/services/optimized_storage_service.dart
+++ b/lib/core/services/optimized_storage_service.dart
@@ -322,9 +322,13 @@ class OptimizedStorageService {
 
   Future<void> saveLocalConversations(List<Conversation> conversations) async {
     try {
-      final serialized = conversations
+      final jsonReady = conversations
           .map((conversation) => conversation.toJson())
           .toList();
+      final serialized = await _workerManager
+          .schedule<Map<String, dynamic>, String>(_encodeConversationsWorker, {
+            'conversations': jsonReady,
+          }, debugLabel: 'encode_local_conversations');
       await _cachesBox.put(_localConversationsKey, serialized);
       DebugLogger.log(
         'Saved ${conversations.length} local conversations',
@@ -478,3 +482,15 @@ List<Map<String, dynamic>> _decodeStoredConversationsWorker(
 
   return <Map<String, dynamic>>[];
 }
+
+String _encodeConversationsWorker(Map<String, dynamic> payload) {
+  final raw = payload['conversations'];
+  if (raw is List) {
+    return jsonEncode(raw);
+  }
+  if (raw is String) {
+    // Already encoded.
+    return raw;
+  }
+  return jsonEncode([]);
+}
diff --git a/lib/features/navigation/widgets/chats_drawer.dart b/lib/features/navigation/widgets/chats_drawer.dart
index 29ccfb9..b977de7 100644
--- a/lib/features/navigation/widgets/chats_drawer.dart
+++ b/lib/features/navigation/widgets/chats_drawer.dart
@@ -770,8 +770,10 @@ class _ChatsDrawerState extends ConsumerState<ChatsDrawer> {
     try {
       final api = ref.read(apiServiceProvider);
       if (api == null) throw Exception('No API service');
-      await api.createFolder(name: name);
+      final created = await api.createFolder(name: name);
+      final folder = Folder.fromJson(Map<String, dynamic>.from(created));
       HapticFeedback.lightImpact();
+      ref.read(foldersProvider.notifier).upsertFolder(folder);
       refreshConversationsCache(ref, includeFolders: true);
     } catch (e, stackTrace) {
       if (!mounted) return;
@@ -1094,6 +1096,13 @@ class _ChatsDrawerState extends ConsumerState<ChatsDrawer> {
       if (api == null) throw Exception('No API service');
       await api.updateFolder(folderId, name: newName);
       HapticFeedback.selectionClick();
+      ref
+          .read(foldersProvider.notifier)
+          .updateFolder(
+            folderId,
+            (folder) =>
+                folder.copyWith(name: newName, updatedAt: DateTime.now()),
+          );
       refreshConversationsCache(ref, includeFolders: true);
     } catch (e, stackTrace) {
       if (!mounted) return;
@@ -1129,6 +1138,7 @@ class _ChatsDrawerState extends ConsumerState<ChatsDrawer> {
       if (api == null) throw Exception('No API service');
       await api.deleteFolder(folderId);
       HapticFeedback.mediumImpact();
+      ref.read(foldersProvider.notifier).removeFolder(folderId);
       refreshConversationsCache(ref, includeFolders: true);
     } catch (e, stackTrace) {
       if (!mounted) return;