diff --git a/src/hooks/use-document-folders.ts b/src/hooks/use-document-folders.ts
new file mode 100644
index 00000000..97d216ef
--- /dev/null
+++ b/src/hooks/use-document-folders.ts
@@ -0,0 +1,84 @@
+'use client';
+
+import { useMutation, useQuery, useQueryClient } from '@tanstack/react-query';
+
+import { apiFetch } from '@/lib/api/client';
+import type { DocumentFolder } from '@/lib/db/schema/documents';
+
+export interface FolderNode extends DocumentFolder {
+  children: FolderNode[];
+}
+
+const FOLDERS_KEY = ['document-folders'] as const;
+
+export function useDocumentFolders() {
+  return useQuery<FolderNode[]>({
+    queryKey: FOLDERS_KEY,
+    queryFn: () => apiFetch<{ data: FolderNode[] }>('/api/v1/document-folders').then((r) => r.data),
+    staleTime: 30_000,
+  });
+}
+
+export function useCreateFolder() {
+  const qc = useQueryClient();
+  return useMutation({
+    mutationFn: (input: { name: string; parentId: string | null }) =>
+      apiFetch('/api/v1/document-folders', { method: 'POST', body: input }),
+    onSuccess: () => qc.invalidateQueries({ queryKey: FOLDERS_KEY }),
+  });
+}
+
+export function useRenameFolder() {
+  const qc = useQueryClient();
+  return useMutation({
+    mutationFn: ({ id, name }: { id: string; name: string }) =>
+      apiFetch(`/api/v1/document-folders/${id}`, { method: 'PATCH', body: { name } }),
+    onSuccess: () => qc.invalidateQueries({ queryKey: FOLDERS_KEY }),
+  });
+}
+
+export function useMoveFolder() {
+  const qc = useQueryClient();
+  return useMutation({
+    mutationFn: ({ id, parentId }: { id: string; parentId: string | null }) =>
+      apiFetch(`/api/v1/document-folders/${id}`, { method: 'PATCH', body: { parentId } }),
+    onSuccess: () => qc.invalidateQueries({ queryKey: FOLDERS_KEY }),
+  });
+}
+
+export function useDeleteFolder() {
+  const qc = useQueryClient();
+  return useMutation({
+    mutationFn: (id: string) => apiFetch(`/api/v1/document-folders/${id}`, { method: 'DELETE' }),
+    onSuccess: () => {
+      qc.invalidateQueries({ queryKey: FOLDERS_KEY });
+      qc.invalidateQueries({ queryKey: ['documents'] });
+    },
+  });
+}
+
+export function useMoveDocument() {
+  const qc = useQueryClient();
+  return useMutation({
+    mutationFn: ({ docId, folderId }: { docId: string; folderId: string | null }) =>
+      apiFetch(`/api/v1/documents/${docId}/folder`, {
+        method: 'PATCH',
+        body: { folderId },
+      }),
+    onSuccess: () => qc.invalidateQueries({ queryKey: ['documents'] }),
+  });
+}
+
+/** Walk the tree → produce flat path strings like "Deals 2026 / Q1". */
+export function buildFolderPaths(tree: FolderNode[]): Array<{ id: string; path: string }> {
+  const out: Array<{ id: string; path: string }> = [];
+  function walk(nodes: FolderNode[], prefix: string) {
+    for (const n of nodes) {
+      const path = prefix ? `${prefix} / ${n.name}` : n.name;
+      out.push({ id: n.id, path });
+      walk(n.children, path);
+    }
+  }
+  walk(tree, '');
+  return out;
+}