diff --git a/artifacts/tx-os/src/components/notes/folders-rail.tsx b/artifacts/tx-os/src/components/notes/folders-rail.tsx
index 97d41c5d..596d806b 100644
--- a/artifacts/tx-os/src/components/notes/folders-rail.tsx
+++ b/artifacts/tx-os/src/components/notes/folders-rail.tsx
@@ -6,6 +6,7 @@ import {
   FolderPlus,
   Inbox as InboxIcon,
   Layers,
+  MoreVertical,
   Pencil,
   Trash2,
   Check,
@@ -13,6 +14,12 @@ import {
 } from "lucide-react";
 import { Input } from "@/components/ui/input";
 import { Button } from "@/components/ui/button";
+import {
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuItem,
+  DropdownMenuTrigger,
+} from "@/components/ui/dropdown-menu";
 import {
   type NoteFolder,
   useCreateFolder,
@@ -334,51 +341,62 @@ export function FoldersRail({
                     {f.noteCount}
                   </span>
                 </button>
-                <div className="flex items-center md:opacity-0 md:group-hover:opacity-100 pe-1">
-                  <button
-                    type="button"
-                    onClick={(e) => {
-                      e.stopPropagation();
-                      setEditingId(f.id);
-                      setEditingName(f.name);
-                    }}
-                    className={`p-1 rounded hover:bg-black/10 ${
-                      isSel ? "text-background/80" : "text-muted-foreground"
-                    }`}
-                    aria-label={t("notes.folders.rename", "Rename folder")}
-                    data-testid={`folder-rename-${f.id}`}
-                  >
-                    <Pencil size={12} />
-                  </button>
-                  <button
-                    type="button"
-                    onClick={(e) => {
-                      e.stopPropagation();
-                      if (
-                        confirm(
-                          t(
-                            "notes.folders.deleteConfirm",
-                            "Delete this folder? Notes inside will move to Unfiled.",
-                          ),
-                        )
-                      ) {
-                        del.mutate(f.id, {
-                          onSuccess: () => {
-                            if (selected.kind === "folder" && selected.id === f.id) {
-                              onSelect({ kind: "all" });
-                            }
-                          },
-                        });
-                      }
-                    }}
-                    className={`p-1 rounded hover:bg-black/10 ${
-                      isSel ? "text-background/80" : "text-muted-foreground"
-                    }`}
-                    aria-label={t("notes.folders.delete", "Delete folder")}
-                    data-testid={`folder-delete-${f.id}`}
-                  >
-                    <Trash2 size={12} />
-                  </button>
+                <div className="flex items-center pe-1">
+                  <DropdownMenu>
+                    <DropdownMenuTrigger asChild>
+                      <button
+                        type="button"
+                        onClick={(e) => e.stopPropagation()}
+                        className={`p-1 rounded hover:bg-black/10 ${
+                          isSel ? "text-background/80" : "text-muted-foreground"
+                        }`}
+                        aria-label={t("notes.folders.actions", "Folder actions")}
+                        data-testid={`folder-menu-${f.id}`}
+                      >
+                        <MoreVertical size={14} />
+                      </button>
+                    </DropdownMenuTrigger>
+                    <DropdownMenuContent align="end" className="w-40">
+                      <DropdownMenuItem
+                        onSelect={() => {
+                          setEditingId(f.id);
+                          setEditingName(f.name);
+                        }}
+                        data-testid={`folder-rename-${f.id}`}
+                      >
+                        <Pencil size={14} className="me-2" />
+                        {t("notes.folders.rename", "Rename folder")}
+                      </DropdownMenuItem>
+                      <DropdownMenuItem
+                        onSelect={() => {
+                          if (
+                            confirm(
+                              t(
+                                "notes.folders.deleteConfirm",
+                                "Delete this folder? Notes inside will move to Unfiled.",
+                              ),
+                            )
+                          ) {
+                            del.mutate(f.id, {
+                              onSuccess: () => {
+                                if (
+                                  selected.kind === "folder" &&
+                                  selected.id === f.id
+                                ) {
+                                  onSelect({ kind: "all" });
+                                }
+                              },
+                            });
+                          }
+                        }}
+                        className="text-red-600 focus:text-red-600"
+                        data-testid={`folder-delete-${f.id}`}
+                      >
+                        <Trash2 size={14} className="me-2" />
+                        {t("notes.folders.delete", "Delete folder")}
+                      </DropdownMenuItem>
+                    </DropdownMenuContent>
+                  </DropdownMenu>
                 </div>
               </div>
             ),
diff --git a/artifacts/tx-os/tests/notes-folders.spec.mjs b/artifacts/tx-os/tests/notes-folders.spec.mjs
index 77e7e304..b8af2c56 100644
--- a/artifacts/tx-os/tests/notes-folders.spec.mjs
+++ b/artifacts/tx-os/tests/notes-folders.spec.mjs
@@ -253,7 +253,7 @@ test("create folder, drag note in, filter, move between folders, rename, delete"
   ).toHaveText(/^0$/);
 
   // ---- Rename Projects -> "Work" ----
-  await page.getByTestId(`folder-select-${projects.id}`).hover();
+  await page.getByTestId(`folder-menu-${projects.id}`).click();
   await page.getByTestId(`folder-rename-${projects.id}`).click();
   const renameInput = page.getByTestId(`folder-rename-input-${projects.id}`);
   await renameInput.fill("Work");
@@ -293,7 +293,7 @@ test("create folder, drag note in, filter, move between folders, rename, delete"
       r.status() >= 200 &&
       r.status() < 300,
   );
-  await page.getByTestId(`folder-select-${personal.id}`).hover();
+  await page.getByTestId(`folder-menu-${personal.id}`).click();
   await page.getByTestId(`folder-delete-${personal.id}`).click();
   await deletePromise;
   await expect(page.getByTestId(`folder-select-${personal.id}`)).toHaveCount(0);