diff --git a/packages/@n8n/api-types/src/dto/workflows/transfer.dto.ts b/packages/@n8n/api-types/src/dto/workflows/transfer.dto.ts
index 27afab9de8..b97db930a4 100644
--- a/packages/@n8n/api-types/src/dto/workflows/transfer.dto.ts
+++ b/packages/@n8n/api-types/src/dto/workflows/transfer.dto.ts
@@ -4,4 +4,5 @@ import { Z } from 'zod-class';
 export class TransferWorkflowBodyDto extends Z.class({
 	destinationProjectId: z.string(),
 	shareCredentials: z.array(z.string()).optional(),
+	destinationParentFolderId: z.string().optional(),
 }) {}
diff --git a/packages/cli/src/workflows/workflow.service.ee.ts b/packages/cli/src/workflows/workflow.service.ee.ts
index 3cbacdf29c..20f476bdb6 100644
--- a/packages/cli/src/workflows/workflow.service.ee.ts
+++ b/packages/cli/src/workflows/workflow.service.ee.ts
@@ -20,6 +20,7 @@ import { WorkflowRepository } from '@/databases/repositories/workflow.repository
 import { BadRequestError } from '@/errors/response-errors/bad-request.error';
 import { NotFoundError } from '@/errors/response-errors/not-found.error';
 import { TransferWorkflowError } from '@/errors/response-errors/transfer-workflow.error';
+import { FolderService } from '@/services/folder.service';
 import { OwnershipService } from '@/services/ownership.service';
 import { ProjectService } from '@/services/project.service.ee';
 
@@ -43,6 +44,7 @@ export class EnterpriseWorkflowService {
 		private readonly credentialsFinderService: CredentialsFinderService,
 		private readonly enterpriseCredentialsService: EnterpriseCredentialsService,
 		private readonly workflowFinderService: WorkflowFinderService,
+		private readonly folderService: FolderService,
 	) {}
 
 	async shareWithProjects(
@@ -265,6 +267,7 @@ export class EnterpriseWorkflowService {
 		workflowId: string,
 		destinationProjectId: string,
 		shareCredentials: string[] = [],
+		destinationParentFolderId?: string,
 	) {
 		// 1. get workflow
 		const workflow = await this.workflowFinderService.findWorkflowForUser(workflowId, user, [
@@ -303,6 +306,21 @@ export class EnterpriseWorkflowService {
 			);
 		}
 
+		let parentFolder = null;
+
+		if (destinationParentFolderId) {
+			try {
+				parentFolder = await this.folderService.findFolderInProjectOrFail(
+					destinationParentFolderId,
+					destinationProjectId,
+				);
+			} catch {
+				throw new TransferWorkflowError(
+					`The destination folder with id "${destinationParentFolderId}" does not exist in the project "${destinationProject.name}".`,
+				);
+			}
+		}
+
 		// 6. deactivate workflow if necessary
 		const wasActive = workflow.active;
 		if (wasActive) {
@@ -345,10 +363,10 @@ export class EnterpriseWorkflowService {
 			}
 		});
 
-		// 9. detach workflow from parent folder in source project
-		await this.workflowRepository.update({ id: workflow.id }, { parentFolder: null });
+		// 9. Move workflow to the right folder if any
+		await this.workflowRepository.update({ id: workflow.id }, { parentFolder });
 
-		// 9. try to activate it again if it was active
+		// 10. try to activate it again if it was active
 		if (wasActive) {
 			try {
 				await this.activeWorkflowManager.add(workflowId, 'update');
diff --git a/packages/cli/src/workflows/workflows.controller.ts b/packages/cli/src/workflows/workflows.controller.ts
index 4bbe8bf1bb..8bbfabc5b4 100644
--- a/packages/cli/src/workflows/workflows.controller.ts
+++ b/packages/cli/src/workflows/workflows.controller.ts
@@ -510,6 +510,7 @@ export class WorkflowsController {
 			workflowId,
 			body.destinationProjectId,
 			body.shareCredentials,
+			body.destinationParentFolderId,
 		);
 	}
 }
diff --git a/packages/cli/test/integration/workflows/workflow.service.ee.test.ts b/packages/cli/test/integration/workflows/workflow.service.ee.test.ts
index 92f07feb92..70be3117da 100644
--- a/packages/cli/test/integration/workflows/workflow.service.ee.test.ts
+++ b/packages/cli/test/integration/workflows/workflow.service.ee.test.ts
@@ -36,6 +36,7 @@ describe('EnterpriseWorkflowService', () => {
 			mock(),
 			mock(),
 			mock(),
+			mock(),
 		);
 	});
 
diff --git a/packages/cli/test/integration/workflows/workflows.controller.ee.test.ts b/packages/cli/test/integration/workflows/workflows.controller.ee.test.ts
index 4cd3c51332..28a5168d35 100644
--- a/packages/cli/test/integration/workflows/workflows.controller.ee.test.ts
+++ b/packages/cli/test/integration/workflows/workflows.controller.ee.test.ts
@@ -1620,7 +1620,7 @@ describe('PUT /:workflowId/transfer', () => {
 		expect(activeWorkflowManager.add).toHaveBeenCalledWith(workflow.id, 'update');
 	});
 
-	test('should detach workflow from parent folder in source project', async () => {
+	test('should move workflow to project root if `destinationParentFolderId` is not provided', async () => {
 		//
 		// ARRANGE
 		//
@@ -1652,6 +1652,72 @@ describe('PUT /:workflowId/transfer', () => {
 		expect(workflowFromDB.parentFolder).toBeNull();
 	});
 
+	test('should move workflow to the parent folder in source project if `destinationParentFolderId` is provided', async () => {
+		//
+		// ARRANGE
+		//
+		const destinationProject = await createTeamProject('Team Project', member);
+
+		const folder = await createFolder(destinationProject, { name: 'Test Folder' });
+
+		const workflow = await createWorkflow({ active: true, parentFolder: folder }, member);
+
+		//
+		// ACT
+		//
+		const response = await testServer
+			.authAgentFor(member)
+			.put(`/workflows/${workflow.id}/transfer`)
+			.send({ destinationProjectId: destinationProject.id, destinationParentFolderId: folder.id })
+			.expect(200);
+
+		//
+		// ASSERT
+		//
+		expect(response.body).toEqual({});
+
+		const workflowFromDB = await workflowRepository.findOneOrFail({
+			where: { id: workflow.id },
+			relations: ['parentFolder'],
+		});
+
+		expect(workflowFromDB.parentFolder?.id).toBe(folder.id);
+	});
+
+	test('should fail destination parent folder does not exist in project', async () => {
+		//
+		// ARRANGE
+		//
+		const destinationProject = await createTeamProject('Team Project', member);
+
+		const anotherProject = await createTeamProject('Another Project', member);
+
+		const folderInDestinationProject = await createFolder(destinationProject, {
+			name: 'Test Folder',
+		});
+
+		const anotherFolder = await createFolder(destinationProject, {
+			name: 'Another Test Folder',
+		});
+
+		const workflow = await createWorkflow(
+			{ active: true, parentFolder: folderInDestinationProject },
+			member,
+		);
+
+		//
+		// ACT
+		//
+		await testServer
+			.authAgentFor(member)
+			.put(`/workflows/${workflow.id}/transfer`)
+			.send({
+				destinationProjectId: anotherProject.id,
+				destinationParentFolderId: anotherFolder.id,
+			})
+			.expect(400);
+	});
+
 	test('deactivates the workflow if it cannot be added to the active workflow manager again and returns the WorkflowActivationError as data', async () => {
 		//
 		// ARRANGE