diff --git a/locales/en-US/browser/browser/zen-folders.ftl b/locales/en-US/browser/browser/zen-folders.ftl
index b4c15e8b..77463894 100644
--- a/locales/en-US/browser/browser/zen-folders.ftl
+++ b/locales/en-US/browser/browser/zen-folders.ftl
@@ -8,6 +8,9 @@ zen-folders-panel-rename-folder =
 zen-folders-panel-unpack-folder =
     .label = Unpack Folder
 
+zen-folders-new-subfolder =
+    .label = New Subfolder
+
 zen-folders-panel-delete-folder =
     .label = Delete Folder
 
diff --git a/package.json b/package.json
index 737a39e6..2ae45962 100644
--- a/package.json
+++ b/package.json
@@ -8,7 +8,7 @@
   "scripts": {
     "build": "surfer build",
     "build:ui": "surfer build --ui",
-    "start": "cd engine && python3 ./mach run --noprofile",
+    "start": "cd engine && python ./mach run --noprofile",
     "import": "npm run ffprefs && surfer import",
     "export": "surfer export",
     "init": "npm run download && npm run import && npm run bootstrap",
diff --git a/src/browser/base/content/zen-panels/popups.inc b/src/browser/base/content/zen-panels/popups.inc
index e90c30b3..5352eabd 100644
--- a/src/browser/base/content/zen-panels/popups.inc
+++ b/src/browser/base/content/zen-panels/popups.inc
@@ -35,6 +35,8 @@
 <menupopup id="zenFolderActions">
   <menuitem id="context_zenFolderRename" data-l10n-id="zen-folders-panel-rename-folder"/>
   <menuitem id="context_zenFolderChangeIcon" data-l10n-id="zen-folders-panel-change-icon-folder"/>
+  <menuseparator />
+  <menuitem id="context_zenFolderNewSubfolder" data-l10n-id="zen-folders-new-subfolder"/>
   <menuitem id="context_zenFolderExpand" data-l10n-id="zen-folders-panel-unpack-folder"/>
   <menuseparator />
   <menu id="context_zenChangeFolderSpace"
diff --git a/src/browser/components/tabbrowser/content/tabs-js.patch b/src/browser/components/tabbrowser/content/tabs-js.patch
index 46ab0c9c..e98af99f 100644
--- a/src/browser/components/tabbrowser/content/tabs-js.patch
+++ b/src/browser/components/tabbrowser/content/tabs-js.patch
@@ -1,5 +1,5 @@
 diff --git a/browser/components/tabbrowser/content/tabs.js b/browser/components/tabbrowser/content/tabs.js
-index e47f735e4e4563c9b7537944628418d1478c068d..858f6aa20bc06701facf75ee673f618464a406ab 100644
+index e47f735e4e4563c9b7537944628418d1478c068d..6c26b1ff42c386db52d743cdf0b53ef622eef930 100644
 --- a/browser/components/tabbrowser/content/tabs.js
 +++ b/browser/components/tabbrowser/content/tabs.js
 @@ -332,7 +332,7 @@
@@ -358,6 +358,17 @@ index e47f735e4e4563c9b7537944628418d1478c068d..858f6aa20bc06701facf75ee673f6184
        let shiftSizeX = tabWidth * movingTabs.length;
        let shiftSizeY = tabHeight;
        dragData.tabWidth = tabWidth;
+@@ -2430,8 +2490,8 @@
+       let lastBoundX =
+         lastTabInRow.screenX +
+         lastTabInRow.getBoundingClientRect().width -
+-        (lastMovingTabScreenX + tabWidth);
+-      let lastBoundY = periphery.screenY - (lastMovingTabScreenY + tabHeight);
++        (lastMovingTabScreenX + tabWidth) + 4;
++      let lastBoundY = 0;
+       translateX = Math.min(Math.max(translateX, firstBoundX), lastBoundX);
+       translateY = Math.min(Math.max(translateY, firstBoundY), lastBoundY);
+ 
 @@ -2547,7 +2607,7 @@
        }
  
diff --git a/src/zen/folders/ZenFolder.mjs b/src/zen/folders/ZenFolder.mjs
index acd48697..e40f2d9f 100644
--- a/src/zen/folders/ZenFolder.mjs
+++ b/src/zen/folders/ZenFolder.mjs
@@ -143,6 +143,14 @@
       });
     }
 
+    createSubfolder() {
+      gZenFolders.createFolder([], {
+        renameFolder: true,
+        label: 'Subfolder',
+        insertAfter: this.querySelector('.tab-group-container').lastElementChild,
+      });
+    }
+
     async expandGroupTabs() {
       for (let tab of this.allItems.reverse()) {
         tab = tab.group.hasAttribute('split-view-group') ? tab.group : tab;
diff --git a/src/zen/folders/ZenFolders.mjs b/src/zen/folders/ZenFolders.mjs
index d68ec91c..54c3cdcf 100644
--- a/src/zen/folders/ZenFolders.mjs
+++ b/src/zen/folders/ZenFolders.mjs
@@ -127,6 +127,9 @@
           case 'context_zenFolderExpand':
             this.#lastFolderContextMenu.expandGroupTabs();
             break;
+          case 'context_zenFolderNewSubfolder':
+            this.#lastFolderContextMenu.createSubfolder();
+            break;
           case 'context_zenFolderDelete':
             this.#lastFolderContextMenu.delete();
             break;