diff --git a/src/SharpIDE.Application/Features/FileWatching/SharpIdeSolutionModificationService.cs b/src/SharpIDE.Application/Features/FileWatching/SharpIdeSolutionModificationService.cs
index f21ca2e..037327d 100644
--- a/src/SharpIDE.Application/Features/FileWatching/SharpIdeSolutionModificationService.cs
+++ b/src/SharpIDE.Application/Features/FileWatching/SharpIdeSolutionModificationService.cs
@@ -13,13 +13,24 @@ public class SharpIdeSolutionModificationService(FileChangedService fileChangedS
 	public SharpIdeSolutionModel SolutionModel { get; set; } = null!;
 
 	/// The directory must already exist on disk
-	public async Task<SharpIdeFolder> AddDirectory(IFolderOrProject parentFolder, string directoryName)
+	public async Task<SharpIdeFolder> AddDirectory(IFolderOrProject parentNode, string directoryName)
 	{
-		var addedDirectoryPath = Path.Combine(parentFolder.ChildNodeBasePath, directoryName);
+		var addedDirectoryPath = Path.Combine(parentNode.ChildNodeBasePath, directoryName);
 		var allFiles = new ConcurrentBag<SharpIdeFile>();
 		var allFolders = new ConcurrentBag<SharpIdeFolder>();
-		var sharpIdeFolder = new SharpIdeFolder(new DirectoryInfo(addedDirectoryPath), parentFolder, allFiles, allFolders);
-		parentFolder.Folders.Add(sharpIdeFolder);
+		var sharpIdeFolder = new SharpIdeFolder(new DirectoryInfo(addedDirectoryPath), parentNode, allFiles, allFolders);
+
+		var correctInsertionPosition = parentNode.Folders.list.BinarySearch(sharpIdeFolder, SharpIdeFolderComparer.Instance);
+		if (correctInsertionPosition < 0)
+		{
+			correctInsertionPosition = ~correctInsertionPosition;
+		}
+		else
+		{
+			throw new InvalidOperationException("Folder already exists in the containing folder or project");
+		}
+
+		parentNode.Folders.Insert(correctInsertionPosition, sharpIdeFolder);
 		SolutionModel.AllFolders.AddRange((IEnumerable<SharpIdeFolder>)[sharpIdeFolder, ..allFolders]);
 		SolutionModel.AllFiles.AddRange(allFiles);
 		foreach (var file in allFiles)
diff --git a/src/SharpIDE.Godot/Features/SolutionExplorer/SolutionExplorerPanel.cs b/src/SharpIDE.Godot/Features/SolutionExplorer/SolutionExplorerPanel.cs
index 1e71b62..2b2b08b 100644
--- a/src/SharpIDE.Godot/Features/SolutionExplorer/SolutionExplorerPanel.cs
+++ b/src/SharpIDE.Godot/Features/SolutionExplorer/SolutionExplorerPanel.cs
@@ -225,7 +225,7 @@ public partial class SolutionExplorerPanel : MarginContainer
 		foldersView.ObserveChanged()
 			.SubscribeAwait(async (innerEvent, ct) => await (innerEvent.Action switch
 			{
-				NotifyCollectionChangedAction.Add => this.InvokeAsync(() => innerEvent.NewItem.View.Value = CreateFolderTreeItem(_tree, projectItem, innerEvent.NewItem.Value)),
+				NotifyCollectionChangedAction.Add => this.InvokeAsync(() => innerEvent.NewItem.View.Value = CreateFolderTreeItem(_tree, projectItem, innerEvent.NewItem.Value, innerEvent.NewStartingIndex)),
 				NotifyCollectionChangedAction.Remove => FreeTreeItem(innerEvent.OldItem.View.Value),
 				_ => Task.CompletedTask
 			})).AddTo(this);
@@ -244,9 +244,9 @@ public partial class SolutionExplorerPanel : MarginContainer
 	}
 
 	[RequiresGodotUiThread]
-	private TreeItem CreateFolderTreeItem(Tree tree, TreeItem parent, SharpIdeFolder sharpIdeFolder)
+	private TreeItem CreateFolderTreeItem(Tree tree, TreeItem parent, SharpIdeFolder sharpIdeFolder, int newStartingIndex = -1)
 	{
-		var folderItem = tree.CreateItem(parent);
+		var folderItem = tree.CreateItem(parent, newStartingIndex);
 		folderItem.SetText(0, sharpIdeFolder.Name);
 		folderItem.SetIcon(0, FolderIcon);
 		folderItem.SetMetadata(0, new RefCountedContainer<SharpIdeFolder>(sharpIdeFolder));
@@ -264,7 +264,7 @@ public partial class SolutionExplorerPanel : MarginContainer
 		subFoldersView.ObserveChanged()
 			.SubscribeAwait(async (innerEvent, ct) => await (innerEvent.Action switch
 			{
-				NotifyCollectionChangedAction.Add => this.InvokeAsync(() => innerEvent.NewItem.View.Value = CreateFolderTreeItem(_tree, folderItem, innerEvent.NewItem.Value)),
+				NotifyCollectionChangedAction.Add => this.InvokeAsync(() => innerEvent.NewItem.View.Value = CreateFolderTreeItem(_tree, folderItem, innerEvent.NewItem.Value, innerEvent.NewStartingIndex)),
 				NotifyCollectionChangedAction.Remove => FreeTreeItem(innerEvent.OldItem.View.Value),
 				_ => Task.CompletedTask
 			})).AddTo(this);