diff --git a/packages/cli/src/workflows/workflow.service.ts b/packages/cli/src/workflows/workflow.service.ts
index 55d02621df..bf71261278 100644
--- a/packages/cli/src/workflows/workflow.service.ts
+++ b/packages/cli/src/workflows/workflow.service.ts
@@ -5,6 +5,7 @@ import type { Scope } from '@n8n/permissions';
 import type { EntityManager } from '@n8n/typeorm';
 // eslint-disable-next-line n8n-local-rules/misplaced-n8n-typeorm-import
 import { In } from '@n8n/typeorm';
+import type { QueryDeepPartialEntity } from '@n8n/typeorm/query-builder/QueryPartialEntity';
 import omit from 'lodash/omit';
 import pick from 'lodash/pick';
 import { BinaryDataService, Logger } from 'n8n-core';
@@ -27,6 +28,7 @@ import { EventService } from '@/events/event.service';
 import { ExternalHooks } from '@/external-hooks';
 import { validateEntity } from '@/generic-helpers';
 import { hasSharing, type ListQuery } from '@/requests';
+import { FolderService } from '@/services/folder.service';
 import { OrchestrationService } from '@/services/orchestration.service';
 import { OwnershipService } from '@/services/ownership.service';
 import { ProjectService } from '@/services/project.service.ee';
@@ -57,6 +59,7 @@ export class WorkflowService {
 		private readonly executionRepository: ExecutionRepository,
 		private readonly eventService: EventService,
 		private readonly globalConfig: GlobalConfig,
+		private readonly folderService: FolderService,
 	) {}
 
 	async getMany(
@@ -179,6 +182,7 @@ export class WorkflowService {
 		workflowUpdateData: WorkflowEntity,
 		workflowId: string,
 		tagIds?: string[],
+		parentFolderId?: string,
 		forceSave?: boolean,
 	): Promise<WorkflowEntity> {
 		const workflow = await this.sharedWorkflowRepository.findWorkflowForUser(workflowId, user, [
@@ -263,20 +267,25 @@ export class WorkflowService {
 			await validateEntity(workflowUpdateData);
 		}
 
-		await this.workflowRepository.update(
-			workflowId,
-			pick(workflowUpdateData, [
-				'name',
-				'active',
-				'nodes',
-				'connections',
-				'meta',
-				'settings',
-				'staticData',
-				'pinData',
-				'versionId',
-			]),
-		);
+		const updatePayload: QueryDeepPartialEntity<WorkflowEntity> = pick(workflowUpdateData, [
+			'name',
+			'active',
+			'nodes',
+			'connections',
+			'meta',
+			'settings',
+			'staticData',
+			'pinData',
+			'versionId',
+		]);
+
+		if (parentFolderId) {
+			const project = await this.sharedWorkflowRepository.getWorkflowOwningProject(workflow.id);
+			await this.folderService.findFolderInProjectOrFail(parentFolderId, project?.id ?? '');
+			updatePayload.parentFolder = { id: parentFolderId };
+		}
+
+		await this.workflowRepository.update(workflowId, updatePayload);
 
 		const tagsDisabled = this.globalConfig.tags.disabled;
 
diff --git a/packages/cli/src/workflows/workflows.controller.ts b/packages/cli/src/workflows/workflows.controller.ts
index 0744f3c5c4..538a6c253a 100644
--- a/packages/cli/src/workflows/workflows.controller.ts
+++ b/packages/cli/src/workflows/workflows.controller.ts
@@ -349,7 +349,7 @@ export class WorkflowsController {
 		const forceSave = req.query.forceSave === 'true';
 
 		let updateData = new WorkflowEntity();
-		const { tags, ...rest } = req.body;
+		const { tags, parentFolderId, ...rest } = req.body;
 		Object.assign(updateData, rest);
 
 		const isSharingEnabled = this.license.isSharingEnabled();
@@ -366,6 +366,7 @@ export class WorkflowsController {
 			updateData,
 			workflowId,
 			tags,
+			parentFolderId,
 			isSharingEnabled ? forceSave : true,
 		);
 
diff --git a/packages/cli/test/integration/workflows/workflow.service.test.ts b/packages/cli/test/integration/workflows/workflow.service.test.ts
index b7d9c033b4..6fb7422937 100644
--- a/packages/cli/test/integration/workflows/workflow.service.test.ts
+++ b/packages/cli/test/integration/workflows/workflow.service.test.ts
@@ -41,6 +41,7 @@ beforeAll(async () => {
 		mock(),
 		mock(),
 		mock(),
+		mock(),
 	);
 });
 
diff --git a/packages/cli/test/integration/workflows/workflows.controller.test.ts b/packages/cli/test/integration/workflows/workflows.controller.test.ts
index 84c33415e0..f26c4c728d 100644
--- a/packages/cli/test/integration/workflows/workflows.controller.test.ts
+++ b/packages/cli/test/integration/workflows/workflows.controller.test.ts
@@ -2044,6 +2044,48 @@ describe('PATCH /workflows/:workflowId', () => {
 		expect(updatedWorkflow.id).toBe(workflow.id);
 		expect(updatedWorkflow.meta).toEqual(payload.meta);
 	});
+
+	test('should update workflow parent folder', async () => {
+		const ownerPersonalProject = await projectRepository.getPersonalProjectForUserOrFail(owner.id);
+		const folder1 = await createFolder(ownerPersonalProject, { name: 'folder1' });
+
+		const workflow = await createWorkflow({}, owner);
+		const payload = {
+			versionId: workflow.versionId,
+			parentFolderId: folder1.id,
+		};
+
+		const response = await authOwnerAgent.patch(`/workflows/${workflow.id}`).send(payload);
+
+		expect(response.statusCode).toBe(200);
+
+		const updatedWorkflow = await Container.get(WorkflowRepository).findOneOrFail({
+			where: { id: workflow.id },
+			relations: ['parentFolder'],
+		});
+
+		expect(updatedWorkflow.parentFolder?.id).toBe(folder1.id);
+	});
+
+	test('should fail if trying update workflow parent folder with a folder that does not belong to project', async () => {
+		const ownerPersonalProject = await projectRepository.getPersonalProjectForUserOrFail(owner.id);
+		const memberPersonalProject = await projectRepository.getPersonalProjectForUserOrFail(
+			member.id,
+		);
+
+		await createFolder(ownerPersonalProject, { name: 'folder1' });
+		const folder2 = await createFolder(memberPersonalProject, { name: 'folder2' });
+
+		const workflow = await createWorkflow({}, owner);
+		const payload = {
+			versionId: workflow.versionId,
+			parentFolderId: folder2.id,
+		};
+
+		const response = await authOwnerAgent.patch(`/workflows/${workflow.id}`).send(payload);
+
+		expect(response.statusCode).toBe(500);
+	});
 });
 
 describe('POST /workflows/:workflowId/run', () => {