Figma began rolling out nested folders on August 3, a long-requested file organization feature that replaces the flat, single-level "Projects" structure the product had used since its early days. Every existing project is automatically converted into a folder with the same name, files, and members, and teams can now nest folders up to ten levels deep and assign colors to build a visual hierarchy across large design systems. Access permissions cascade down the hierarchy by default, with nested folders inheriting whatever access the parent folder has, but teams can override that and restrict specific subfolders to specific people, which matters for organizations where design, brand, and product teams share a workspace but need different visibility into work in progress versus shipped assets. Plan-level limits still apply: unlimited folders are available on Professional, Organization, and Enterprise plans, while Starter-tier accounts are capped at a single folder, so the change is really targeted at teams that have outgrown Figma's original flat structure rather than solo users. For design teams, the practical impact is less about any single feature and more about what it signals: as design systems and cross-functional design orgs have scaled, a two-tier team-then-project structure increasingly forced awkward workarounds like naming conventions or duplicate projects to fake hierarchy. Nested folders remove that constraint directly. The rollout is staged over several weeks rather than instant for all accounts, so some teams will see the change before others.