diff --git a/docs/folders/overview.mdx b/docs/folders/overview.mdx
index f44266f1ad..8d1307ee9e 100644
--- a/docs/folders/overview.mdx
+++ b/docs/folders/overview.mdx
@@ -1,6 +1,6 @@
 ---
 title: Folders
-label: Folders
+label: Overview
 order: 10
 desc: Folders allow you to group documents across collections, and are a great way to organize your content.
 keywords: folders, folder, content organization
@@ -95,9 +95,7 @@ const config = buildConfig({
     {
       slug: 'pages',
       // highlight-start
-      admin: {
-        folders: true, // defaults to false
-      },
+      folders: true, // defaults to false
       // highlight-end
     },
   ],
diff --git a/packages/next/src/elements/Nav/index.client.tsx b/packages/next/src/elements/Nav/index.client.tsx
index 02488e7208..aff575704b 100644
--- a/packages/next/src/elements/Nav/index.client.tsx
+++ b/packages/next/src/elements/Nav/index.client.tsx
@@ -30,7 +30,7 @@ export const DefaultNavClient: React.FC<{
 
   const [folderCollectionSlugs] = React.useState<string[]>(() => {
     return collections.reduce<string[]>((acc, collection) => {
-      if (collection.admin.folders) {
+      if (collection.folders) {
         acc.push(collection.slug)
       }
       return acc
diff --git a/packages/next/src/views/Root/getRouteData.ts b/packages/next/src/views/Root/getRouteData.ts
index 2cd387acf1..01ab6e3f60 100644
--- a/packages/next/src/views/Root/getRouteData.ts
+++ b/packages/next/src/views/Root/getRouteData.ts
@@ -113,8 +113,8 @@ export const getRouteData = ({
   let matchedCollection: SanitizedConfig['collections'][number] = undefined
   let matchedGlobal: SanitizedConfig['globals'][number] = undefined
 
-  const folderCollectionSlugs = config.collections.reduce((acc, { slug, admin }) => {
-    if (admin?.folders) {
+  const folderCollectionSlugs = config.collections.reduce((acc, { slug, folders }) => {
+    if (folders) {
       return [...acc, slug]
     }
     return acc
diff --git a/packages/next/src/views/Root/metadata.ts b/packages/next/src/views/Root/metadata.ts
index 58b6548374..d08560b32b 100644
--- a/packages/next/src/views/Root/metadata.ts
+++ b/packages/next/src/views/Root/metadata.ts
@@ -45,8 +45,8 @@ export const generatePageMetadata = async ({
   const config = await configPromise
   const params = await paramsPromise
 
-  const folderCollectionSlugs = config.collections.reduce((acc, { slug, admin }) => {
-    if (admin?.folders) {
+  const folderCollectionSlugs = config.collections.reduce((acc, { slug, folders }) => {
+    if (folders) {
       return [...acc, slug]
     }
     return acc
diff --git a/packages/payload/src/collections/config/defaults.ts b/packages/payload/src/collections/config/defaults.ts
index c91a51a4da..324737322e 100644
--- a/packages/payload/src/collections/config/defaults.ts
+++ b/packages/payload/src/collections/config/defaults.ts
@@ -69,7 +69,6 @@ export const addDefaultsToCollectionConfig = (collection: CollectionConfig): Col
     custom: {},
     enableRichTextLink: true,
     enableRichTextRelationship: true,
-    folders: false,
     useAsTitle: 'id',
     ...(collection.admin || {}),
     pagination: {
@@ -83,6 +82,7 @@ export const addDefaultsToCollectionConfig = (collection: CollectionConfig): Col
   collection.custom = collection.custom ?? {}
   collection.endpoints = collection.endpoints ?? []
   collection.fields = collection.fields ?? []
+  collection.folders = collection.folders ?? false
 
   collection.hooks = {
     afterChange: [],
diff --git a/packages/payload/src/collections/config/types.ts b/packages/payload/src/collections/config/types.ts
index f4689baaed..0d02188329 100644
--- a/packages/payload/src/collections/config/types.ts
+++ b/packages/payload/src/collections/config/types.ts
@@ -345,11 +345,6 @@ export type CollectionAdminOptions = {
   disableCopyToLocale?: boolean
   enableRichTextLink?: boolean
   enableRichTextRelationship?: boolean
-  /**
-   * Enables folders for this collection
-   * @deprecated this property will move out of `admin` in the next patch
-   */
-  folders?: CollectionFoldersConfiguration
   /**
    * Specify a navigational group for collections in the admin sidebar.
    * - Provide a string to place the entity in a custom group.
@@ -445,6 +440,10 @@ export type CollectionConfig<TSlug extends CollectionSlug = any> = {
    */
   endpoints?: false | Omit<Endpoint, 'root'>[]
   fields: Field[]
+  /**
+   * Enables folders for this collection
+   */
+  folders?: CollectionFoldersConfiguration
   /**
    * Specify which fields should be selected always, regardless of the `select` query which can be useful that the field exists for access control / hooks
    */
diff --git a/packages/payload/src/folders/addFolderCollections.ts b/packages/payload/src/folders/addFolderCollections.ts
index 7a0dc8b6d3..f232e845e9 100644
--- a/packages/payload/src/folders/addFolderCollections.ts
+++ b/packages/payload/src/folders/addFolderCollections.ts
@@ -15,25 +15,23 @@ export async function addFolderCollections(config: NonNullable<Config>): Promise
 
   for (let i = 0; i < config.collections.length; i++) {
     const collection = config.collections[i]
-    if (collection?.admin?.folders) {
-      if (collection) {
-        collection.fields.push({
-          name: folderFieldName,
-          type: 'relationship',
-          admin: {
-            allowCreate: false,
-            allowEdit: false,
-            components: {
-              Cell: '@payloadcms/ui/rsc#FolderTableCell',
-              Field: '@payloadcms/ui/rsc#FolderEditField',
-            },
+    if (collection && collection?.folders) {
+      collection.fields.push({
+        name: folderFieldName,
+        type: 'relationship',
+        admin: {
+          allowCreate: false,
+          allowEdit: false,
+          components: {
+            Cell: '@payloadcms/ui/rsc#FolderTableCell',
+            Field: '@payloadcms/ui/rsc#FolderEditField',
           },
-          index: true,
-          label: 'Folder',
-          relationTo: folderSlug,
-        })
-        enabledCollectionSlugs.push(collection.slug)
-      }
+        },
+        index: true,
+        label: 'Folder',
+        relationTo: folderSlug,
+      })
+      enabledCollectionSlugs.push(collection.slug)
     }
   }
 
diff --git a/packages/payload/src/folders/utils/getFoldersAndDocumentsFromJoin.ts b/packages/payload/src/folders/utils/getFoldersAndDocumentsFromJoin.ts
index 43d1c65b9e..1a56af1f36 100644
--- a/packages/payload/src/folders/utils/getFoldersAndDocumentsFromJoin.ts
+++ b/packages/payload/src/folders/utils/getFoldersAndDocumentsFromJoin.ts
@@ -24,7 +24,7 @@ export async function queryDocumentsAndFoldersFromJoin({
 }: QueryDocumentsAndFoldersArgs): Promise<QueryDocumentsAndFoldersResults> {
   const folderCollectionSlugs: string[] = payload.config.collections.reduce<string[]>(
     (acc, collection) => {
-      if (collection?.admin?.folders) {
+      if (collection?.folders) {
         acc.push(collection.slug)
       }
       return acc
diff --git a/packages/ui/src/elements/BulkUpload/EditForm/index.tsx b/packages/ui/src/elements/BulkUpload/EditForm/index.tsx
index 29aa48585c..bb830a707d 100644
--- a/packages/ui/src/elements/BulkUpload/EditForm/index.tsx
+++ b/packages/ui/src/elements/BulkUpload/EditForm/index.tsx
@@ -169,7 +169,7 @@ export function EditForm({
                   <Upload_v4
                     collectionSlug={collectionConfig.slug}
                     customActions={[
-                      collectionConfig.admin.folders && (
+                      collectionConfig.folders && (
                         <MoveDocToFolder
                           buttonProps={{
                             buttonStyle: 'pill',
diff --git a/packages/ui/src/elements/DocumentControls/index.tsx b/packages/ui/src/elements/DocumentControls/index.tsx
index 49ed5c86aa..db076ec6dd 100644
--- a/packages/ui/src/elements/DocumentControls/index.tsx
+++ b/packages/ui/src/elements/DocumentControls/index.tsx
@@ -157,7 +157,7 @@ export const DocumentControls: React.FC<{
 
   const showCopyToLocale = localization && !collectionConfig?.admin?.disableCopyToLocale
 
-  const showFolderMetaIcon = collectionConfig && collectionConfig.admin.folders
+  const showFolderMetaIcon = collectionConfig && collectionConfig.folders
   const showLockedMetaIcon = user && readOnlyForIncomingUser
 
   return (
diff --git a/packages/ui/src/elements/FolderView/CollectionTypePill/index.tsx b/packages/ui/src/elements/FolderView/CollectionTypePill/index.tsx
index 4d69b63978..ef461b025f 100644
--- a/packages/ui/src/elements/FolderView/CollectionTypePill/index.tsx
+++ b/packages/ui/src/elements/FolderView/CollectionTypePill/index.tsx
@@ -20,7 +20,7 @@ export function CollectionTypePill() {
   const [allCollectionOptions] = React.useState(() => {
     return config.collections.reduce(
       (acc, collection) => {
-        if (collection.admin.folders) {
+        if (collection.folders) {
           acc.push({
             label: getTranslation(collection.labels?.plural, i18n),
             value: collection.slug,
diff --git a/packages/ui/src/views/List/ListHeader/index.tsx b/packages/ui/src/views/List/ListHeader/index.tsx
index 01a4553666..a4b94769f3 100644
--- a/packages/ui/src/views/List/ListHeader/index.tsx
+++ b/packages/ui/src/views/List/ListHeader/index.tsx
@@ -107,7 +107,7 @@ export const CollectionListHeader: React.FC<ListHeaderProps> = ({
             label={getTranslation(collectionConfig?.labels?.plural, i18n)}
           />
         ),
-        collectionConfig.admin.folders && (
+        collectionConfig.folders && (
           <ListFolderPills
             collectionConfig={collectionConfig}
             key="list-header-buttons"
diff --git a/test/folders/collections/Autosave/index.ts b/test/folders/collections/Autosave/index.ts
index 11e67e1870..5d02cc9987 100644
--- a/test/folders/collections/Autosave/index.ts
+++ b/test/folders/collections/Autosave/index.ts
@@ -4,8 +4,8 @@ export const Autosave: CollectionConfig = {
   slug: 'autosave',
   admin: {
     useAsTitle: 'title',
-    folders: true,
   },
+  folders: true,
   fields: [
     {
       name: 'title',
diff --git a/test/folders/collections/Drafts/index.ts b/test/folders/collections/Drafts/index.ts
index 72d94e032c..580a084306 100644
--- a/test/folders/collections/Drafts/index.ts
+++ b/test/folders/collections/Drafts/index.ts
@@ -4,8 +4,8 @@ export const Drafts: CollectionConfig = {
   slug: 'drafts',
   admin: {
     useAsTitle: 'title',
-    folders: true,
   },
+  folders: true,
   fields: [
     {
       name: 'title',
diff --git a/test/folders/collections/Media/index.ts b/test/folders/collections/Media/index.ts
index ba0351e18e..83a0b78065 100644
--- a/test/folders/collections/Media/index.ts
+++ b/test/folders/collections/Media/index.ts
@@ -3,8 +3,6 @@ import type { CollectionConfig } from 'payload'
 export const Media: CollectionConfig = {
   slug: 'media',
   upload: true,
-  admin: {
-    folders: true,
-  },
+  folders: true,
   fields: [],
 }
diff --git a/test/folders/collections/Posts/index.ts b/test/folders/collections/Posts/index.ts
index d0fdf62c86..84940adf78 100644
--- a/test/folders/collections/Posts/index.ts
+++ b/test/folders/collections/Posts/index.ts
@@ -6,8 +6,8 @@ export const Posts: CollectionConfig = {
   slug: postSlug,
   admin: {
     useAsTitle: 'title',
-    folders: true,
   },
+  folders: true,
   fields: [
     {
       name: 'title',
diff --git a/test/folders/eslint.config.js b/test/folders/eslint.config.js
deleted file mode 100644
index 327c58a8e0..0000000000
--- a/test/folders/eslint.config.js
+++ /dev/null
@@ -1,19 +0,0 @@
-import { rootParserOptions } from '../../eslint.config.js'
-import testEslintConfig from '../eslint.config.js'
-
-/** @typedef {import('eslint').Linter.Config} Config */
-
-/** @type {Config[]} */
-export const index = [
-  ...testEslintConfig,
-  {
-    languageOptions: {
-      parserOptions: {
-        ...rootParserOptions,
-        tsconfigRootDir: import.meta.dirname,
-      },
-    },
-  },
-]
-
-export default index