diff --git a/server/bundles/io.cloudbeaver.model/src/io/cloudbeaver/utils/WebConnectionFolderUtils.java b/server/bundles/io.cloudbeaver.model/src/io/cloudbeaver/utils/WebConnectionFolderUtils.java
index c95ebd05d3..0ddb8dda88 100644
--- a/server/bundles/io.cloudbeaver.model/src/io/cloudbeaver/utils/WebConnectionFolderUtils.java
+++ b/server/bundles/io.cloudbeaver.model/src/io/cloudbeaver/utils/WebConnectionFolderUtils.java
@@ -21,6 +21,10 @@ import io.cloudbeaver.model.WebConnectionFolderInfo;
 import io.cloudbeaver.model.session.WebSession;
 import org.jkiss.code.Nullable;
 import org.jkiss.dbeaver.model.DBPDataSourceFolder;
+import org.jkiss.dbeaver.model.navigator.DBNLocalFolder;
+import org.jkiss.dbeaver.model.navigator.DBNNode;
+import org.jkiss.dbeaver.model.navigator.DBNProject;
+import org.jkiss.dbeaver.model.navigator.DBNRoot;
 import org.jkiss.utils.CommonUtils;
 
 public class WebConnectionFolderUtils {
@@ -44,4 +48,14 @@ public class WebConnectionFolderUtils {
             throw new DBWebException("Folder name '" + folderName + "' contains illegal characters: /");
         }
     }
+
+    public static DBPDataSourceFolder getParentFolder(DBNNode folderNode) throws DBWebException {
+        if (folderNode instanceof DBNRoot || folderNode instanceof DBNProject) {
+            return null;
+        } else if (folderNode instanceof DBNLocalFolder) {
+            return ((DBNLocalFolder) folderNode).getFolder();
+        } else {
+            throw new DBWebException("Navigator node '" + folderNode.getNodeItemPath() + "' is not a folder node");
+        }
+    }
 }
diff --git a/server/bundles/io.cloudbeaver.server/src/io/cloudbeaver/service/navigator/impl/WebServiceNavigator.java b/server/bundles/io.cloudbeaver.server/src/io/cloudbeaver/service/navigator/impl/WebServiceNavigator.java
index 38d127ed38..2617fcc3ba 100644
--- a/server/bundles/io.cloudbeaver.server/src/io/cloudbeaver/service/navigator/impl/WebServiceNavigator.java
+++ b/server/bundles/io.cloudbeaver.server/src/io/cloudbeaver/service/navigator/impl/WebServiceNavigator.java
@@ -466,17 +466,14 @@ public class WebServiceNavigator implements DBWServiceNavigator {
                 }
                 checkProjectEditAccess(node, session);
                 if (node instanceof DBNDataSource) {
-                    DBPDataSourceFolder folder;
-                    if (folderNode instanceof DBNRoot || folderNode instanceof DBNProject) {
-                        folder = null;
-                    } else if (folderNode instanceof DBNLocalFolder) {
-                        folder = ((DBNLocalFolder) folderNode).getFolder();
-                    } else {
-                        throw new DBWebException("Navigator node '" + folderNodePath + "' is not a folder node");
-                    }
+                    DBPDataSourceFolder folder = WebConnectionFolderUtils.getParentFolder(folderNode);
                     ((DBNDataSource) node).moveToFolder(folderNode.getOwnerProject(), folder);
                     node.getOwnerProject().getDataSourceRegistry().updateDataSource(
                         ((DBNDataSource) node).getDataSourceContainer());
+                } else if (node instanceof DBNLocalFolder) {
+                    DBPDataSourceFolder folder = WebConnectionFolderUtils.getParentFolder(folderNode);
+                    ((DBNLocalFolder) node).getFolder().setParent(folder);
+                    WebServiceUtils.updateConfigAndRefreshDatabases(session, node.getOwnerProject().getId());
                 } else if (node instanceof DBNResourceManagerResource) {
                     boolean rmNewNode = folderNode instanceof DBNAbstractResourceManagerNode;
                     DBNResourceManagerResource rmOldNode = (DBNResourceManagerResource) node;