diff --git a/lib/galaxy_test/api/test_folders.py b/lib/galaxy_test/api/test_folders.py
new file mode 100644
index 00000000000..0e7b21c1ef1
--- /dev/null
+++ b/lib/galaxy_test/api/test_folders.py
@@ -0,0 +1,134 @@
+from galaxy_test.base.populators import (
+    DatasetCollectionPopulator,
+    DatasetPopulator,
+    LibraryPopulator,
+)
+from ._framework import ApiTestCase
+
+
+class FoldersApiTestCase(ApiTestCase):
+
+    def setUp(self):
+        super().setUp()
+        self.dataset_populator = DatasetPopulator(self.galaxy_interactor)
+        self.dataset_collection_populator = DatasetCollectionPopulator(self.galaxy_interactor)
+        self.library_populator = LibraryPopulator(self.galaxy_interactor)
+
+        self.library = self.library_populator.new_library("FolderTestsLibrary")
+
+    def test_create(self):
+        folder = self._create_folder("Test Create Folder")
+        self._assert_valid_folder(folder)
+
+    def test_permissions(self):
+        folder = self._create_folder("Test Permissions Folder")
+        folder_id = folder["id"]
+
+        empty_permissions = self._get_permissions(folder_id)
+        self._assert_permissions_empty(empty_permissions)
+
+        role_id = self.library_populator.user_private_role_id()
+        action = "set_permissions"
+        data = {
+            "add_ids[]": [role_id],
+            "manage_ids[]": role_id,  # string-lists also supported
+            "modify_ids[]": [role_id]
+        }
+        response = self._post(f"folders/{folder_id}/permissions?action={action}", data=data, admin=True)
+        self._assert_status_code_is(response, 200)
+        new_permissions = response.json()
+
+        permissions = self._get_permissions(folder_id)
+        assert permissions == new_permissions
+        self._assert_permissions_contains_role(permissions, role_id)
+
+    def test_update(self):
+        folder = self._create_folder("Test Update Folder")
+        folder_id = folder["id"]
+        updated_name = "UPDATED"
+        updated_desc = "UPDATED DESCRIPTION"
+        data = {
+            "name": updated_name,
+            "description": updated_desc,
+        }
+        patch_response = self._patch(f"folders/{folder_id}", data=data, admin=True)
+        self._assert_status_code_is(patch_response, 200)
+        updated_folder = patch_response.json()
+        self._assert_valid_folder(updated_folder)
+        assert updated_folder["name"] == updated_name
+        assert updated_folder["description"] == updated_desc
+
+    def test_delete(self):
+        folder = self._create_folder("Test Delete Folder")
+        folder_id = folder["id"]
+
+        delete_response = self._delete(f"folders/{folder_id}", admin=True)
+        self._assert_status_code_is(delete_response, 200)
+        deleted_folder = delete_response.json()
+        assert deleted_folder["deleted"] is True
+
+    def test_undelete(self):
+        folder = self._create_folder("Test Undelete Folder")
+        folder_id = folder["id"]
+
+        delete_response = self._delete(f"folders/{folder_id}", admin=True)
+        self._assert_status_code_is(delete_response, 200)
+        deleted_folder = delete_response.json()
+        assert deleted_folder["deleted"] is True
+
+        undelete = True
+        undelete_response = self._delete(f"folders/{folder_id}?undelete={undelete}", admin=True)
+        self._assert_status_code_is(undelete_response, 200)
+        undeleted_folder = undelete_response.json()
+        assert undeleted_folder["deleted"] is False
+
+    def _create_folder(self, name: str):
+        root_folder_id = self.library["root_folder_id"]
+        data = {
+            "name": name,
+            "description": f"The description of {name}",
+        }
+        create_response = self._post(f"folders/{root_folder_id}", data=data, admin=True)
+        self._assert_status_code_is(create_response, 200)
+        folder = create_response.json()
+        return folder
+
+    def _get_permissions(self, folder_id):
+        response = self._get(f"folders/{folder_id}/permissions", admin=True)
+        self._assert_status_code_is(response, 200)
+        permissions = response.json()
+        self._assert_valid_permissions(permissions)
+        return permissions
+
+    def _assert_valid_folder(self, folder):
+        self._assert_has_keys(
+            folder,
+            "id",
+            "name",
+            "model_class",
+            "parent_id",
+            "item_count",
+            "genome_build",
+            "update_time",
+            "deleted",
+            "library_path",
+            "parent_library_id"
+        )
+
+    def _assert_valid_permissions(self, permissions):
+        self._assert_has_keys(
+            permissions,
+            "modify_folder_role_list",
+            "manage_folder_role_list",
+            "add_library_item_role_list",
+        )
+
+    def _assert_permissions_empty(self, permissions):
+        assert permissions["modify_folder_role_list"] == []
+        assert permissions["manage_folder_role_list"] == []
+        assert permissions["add_library_item_role_list"] == []
+
+    def _assert_permissions_contains_role(self, permissions, role_id):
+        assert role_id in permissions["modify_folder_role_list"][0]
+        assert role_id in permissions["manage_folder_role_list"][0]
+        assert role_id in permissions["add_library_item_role_list"][0]