Figma projects become nested folders, ten levels deep

Teams can finally organise files the way they think, and admins get per-person limits on AI credits.

Illustration of colourful folders nested inside each other, many layers deepNews5 Aug 2026
Reading time
2 minutes
Published
5 Aug 2026
Disciplines
UI/UXWeb

Two quality-of-life changes landed in Figma in early August, and both matter more for big teams than the flashier launches do.

Projects are now folders

Every team file now lives in a folder, and folders can nest up to ten levels deep. You can colour-code them, and nested folders inherit access permissions from their parent, with the option to restrict a folder to specific people. If your team has been faking hierarchy with naming conventions like ‘2026 / Client / Web / v3’, you can finally stop.

Limits on AI credits

Admins can now set a custom AI credit limit for individual people. When someone hits their limit, they can request more from an admin rather than being stuck. It's a sensible control as AI features use up more of each plan's credits.

Quick tip

Before restructuring, agree a folder template with your team, for example Client → Project → Phase, so everyone files work the same way from day one.

Sources

This story is our summary of reporting by Figma release notes. Read the original for full detail.