diff --git a/package-lock.json b/package-lock.json
index ab82119..0308b11 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
 	"name": "note-locker",
-	"version": "1.0.0",
+	"version": "1.2.1",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "note-locker",
-			"version": "1.0.0",
+			"version": "1.2.1",
 			"license": "MIT",
 			"devDependencies": {
 				"@types/node": "^16.11.6",
diff --git a/src/main.ts b/src/main.ts
index 0ab3848..394f754 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -71,7 +71,7 @@ export default class NoteLockerPlugin extends Plugin {
 		);
 
 		this.registerEvent(
-			this.app.workspace.on("editor-menu",(menu, _, view) =>
+			this.app.workspace.on("editor-menu", (menu, _, view) =>
 				view.file && this.addLockMenuItem(menu, view.file.path)
 			)
 		);
@@ -85,12 +85,25 @@ export default class NoteLockerPlugin extends Plugin {
 
 		this.registerEvent(
 			this.app.vault.on("rename", async (file, oldPath) => {
+				let settingsChanged = false;
+
+				// Handle locked notes
 				if (this.settings.lockedNotes.delete(oldPath)) {
 					if (!this.settings.lockedNotes.has(file.path)) {
 						this.settings.lockedNotes.add(file.path);
-					} else {
-						new Notice(`⚠️ Lock skipped: "${file.name}" was already locked`);
+						settingsChanged = true;
 					}
+				}
+
+				// Handle locked folders
+				if (this.settings.lockedFolders.delete(oldPath)) {
+					if (!this.settings.lockedFolders.has(file.path)) {
+						this.settings.lockedFolders.add(file.path);
+						settingsChanged = true;
+					}
+				}
+
+				if (settingsChanged) {
 					await this.saveSettings();
 					this.fileExplorerUI.updateFileExplorerIcons();
 				}
@@ -117,17 +130,69 @@ export default class NoteLockerPlugin extends Plugin {
 			.forEach((leaf) => this.updateLeafMode(leaf));
 	}
 
-	private addLockMenuItem(menu: Menu, filePath: string) {
-		const isNote = filePath.endsWith('.md');
-		if (!isNote) return;
+	private addLockMenuItem(menu: Menu, path: string) {
+		if (this.isParentFolderLocked(path)) {
+			return;
+		}
 
-		const isLocked = this.settings.lockedNotes.has(filePath);
-		menu.addItem((item) =>
-			item
-				.setTitle(isLocked ? "Unlock" : "Lock")
-				.setIcon(isLocked ? "unlock" : "lock")
-				.onClick(() => this.toggleNoteLock(filePath))
-		);
+		const file = this.app.vault.getAbstractFileByPath(path);
+
+		if (file instanceof TFile && file.extension === 'md') {
+			const isLocked = this.settings.lockedNotes.has(path);
+			menu.addItem((item) =>
+				item
+					.setTitle(isLocked ? "Unlock" : "Lock")
+					.setIcon(isLocked ? "unlock" : "lock")
+					.onClick(() => this.toggleNoteLock(path))
+			);
+		} else if (file && !(file instanceof TFile)) {
+			const isLocked = this.settings.lockedFolders.has(path);
+			menu.addItem((item) =>
+				item
+					.setTitle(isLocked ? "Unlock all notes in folder" : "Lock all notes in folder")
+					.setIcon(isLocked ? "unlock" : "lock")
+					.onClick(() => this.toggleFolderLock(path))
+			);
+		}
+	}
+
+	private isParentFolderLocked(path: string): boolean {
+		let currentPath = path;
+		while (currentPath.includes("/")) {
+			currentPath = currentPath.substring(0, currentPath.lastIndexOf("/"));
+			if (this.settings.lockedFolders.has(currentPath)) {
+				return true;
+			}
+		}
+		return false;
+	}
+
+	async toggleFolderLock(folderPath: string) {
+		const isLocked = this.settings.lockedFolders.has(folderPath);
+
+		isLocked
+			? this.settings.lockedFolders.delete(folderPath)
+			: this.settings.lockedFolders.add(folderPath);
+
+		await this.saveSettings();
+
+		new Notice(`${isLocked ? '🔓 Unlocked' : '🔒 Locked'} folder: ${folderPath}`);
+
+		this.updateAllNotesInFolder(folderPath);
+		this.statusBarUI.updateStatusBarButton();
+		this.fileExplorerUI.updateFileExplorerIcons();
+	}
+
+	private updateAllNotesInFolder(folderPath: string) {
+		this.app.workspace
+			.getLeavesOfType("markdown")
+			.forEach((leaf) => {
+				if (leaf.view instanceof MarkdownView && leaf.view.file) {
+					if (leaf.view.file.path.startsWith(folderPath + "/")) {
+						this.updateLeafMode(leaf);
+					}
+				}
+			});
 	}
 
 	async toggleNoteLock(notePath: string) {
@@ -180,12 +245,25 @@ export default class NoteLockerPlugin extends Plugin {
 		return view instanceof MarkdownView && view.file?.path === notePath;
 	}
 
+	public isPathLocked(path: string): boolean {
+		if (this.settings.lockedNotes.has(path)) return true;
+
+		let currentPath = path;
+		while (currentPath.includes("/")) {
+			currentPath = currentPath.substring(0, currentPath.lastIndexOf("/"));
+			if (this.settings.lockedFolders.has(currentPath)) {
+				return true;
+			}
+		}
+		return false;
+	}
+
 	private updateLeafMode(leaf: WorkspaceLeaf | null) {
 		if (!leaf || !(leaf.view instanceof MarkdownView)) return;
 
 		const { view } = leaf;
 		const targetMode =
-			view.file && this.settings.lockedNotes.has(view.file.path)
+			view.file && this.isPathLocked(view.file.path)
 				? "preview"
 				: "source";
 
@@ -203,7 +281,8 @@ export default class NoteLockerPlugin extends Plugin {
 			this.settings = {
 				...DEFAULT_SETTINGS,
 				...loaded,
-				lockedNotes: new Set(loaded.lockedNotes || [])
+				lockedNotes: new Set(loaded.lockedNotes || []),
+				lockedFolders: new Set(loaded.lockedFolders || [])
 			};
 		}
 	}
@@ -212,6 +291,7 @@ export default class NoteLockerPlugin extends Plugin {
 		await this.saveData({
 			...this.settings,
 			lockedNotes: Array.from(this.settings.lockedNotes),
+			lockedFolders: Array.from(this.settings.lockedFolders),
 		});
 	}
 
diff --git a/src/models/types.ts b/src/models/types.ts
index ff5cd88..0c512e8 100644
--- a/src/models/types.ts
+++ b/src/models/types.ts
@@ -1,5 +1,6 @@
 export interface NoteLockerSettings {
 	lockedNotes: Set<string>;
+	lockedFolders: Set<string>;
 	mobileNotificationMaxLength: number;
 	desktopNotificationMaxLength: number;
 	showFileExplorerIcons: boolean;
@@ -9,6 +10,7 @@ export interface NoteLockerSettings {
 
 export const DEFAULT_SETTINGS: NoteLockerSettings = {
 	lockedNotes: new Set(),
+	lockedFolders: new Set(),
 	mobileNotificationMaxLength: 18,
 	desktopNotificationMaxLength: 22,
 	showFileExplorerIcons: true,
diff --git a/src/settings.ts b/src/settings.ts
index d9f20df..8391842 100644
--- a/src/settings.ts
+++ b/src/settings.ts
@@ -1,4 +1,4 @@
-import {App, Platform, PluginSettingTab, Setting} from "obsidian";
+import { App, Platform, PluginSettingTab, Setting } from "obsidian";
 import type NoteLockerPlugin from "./main";
 
 export class NoteLockerSettingTab extends PluginSettingTab {
@@ -80,10 +80,10 @@ export class NoteLockerSettingTab extends PluginSettingTab {
 		});
 		hotkeyInfo.style.fontStyle = 'italic';
 
-		containerEl.createEl('h3', { text: 'Locked Notes' });
+		containerEl.createEl('h3', { text: 'Locked Notes & Folders' });
 		const lockedNotesCount = this.plugin.settings.lockedNotes.size;
 		containerEl.createEl('p', {
-			text: `You currently have ${lockedNotesCount} locked note${lockedNotesCount !== 1 ? 's' : ''}.`
+			text: `You currently have ${lockedNotesCount} locked note${lockedNotesCount !== 1 ? 's' : ''} and ${this.plugin.settings.lockedFolders.size} locked folder${this.plugin.settings.lockedFolders.size !== 1 ? 's' : ''}.`
 		});
 	}
 }
diff --git a/src/ui/fileExplorer.ts b/src/ui/fileExplorer.ts
index c471a4c..86ac808 100644
--- a/src/ui/fileExplorer.ts
+++ b/src/ui/fileExplorer.ts
@@ -15,21 +15,20 @@ export class FileExplorerUI {
 		styleEl.id = 'note-locker-styles';
 		styleEl.textContent = `
             .note-locker-icon {
-                display: inline-flex;
+                display: flex;
                 justify-content: center;
                 align-items: center;
-                margin-left: 4px;
-                width: 12px;
-                height: 12px;
-                font-size: 0.85em;
+                margin-left: 6px;
+                width: 14px;
+                height: 14px;
                 color: var(--text-accent);
-                vertical-align: middle;
+                opacity: 0.8;
             }
-            .nav-file-title {
+            .nav-file-title, .nav-folder-title {
                 display: flex;
                 align-items: center;
             }
-            .nav-file-title-content {
+            .nav-file-title-content, .nav-folder-title-content {
                 flex: 1;
                 min-width: 0;
                 overflow: hidden;
@@ -38,43 +37,12 @@ export class FileExplorerUI {
         `;
 		document.head.appendChild(styleEl);
 
-		// Initial update
 		this.plugin.app.workspace.onLayoutReady(() => {
 			this.updateFileExplorerIcons();
 			this.setupFolderObserver();
-
-			// Register handlers for folder expansion/collapse
-			this.registerFolderClickHandlers();
 		});
 	}
 
-	private registerFolderClickHandlers(): void {
-		const fileExplorer = document.querySelector('.workspace-split.mod-left-split .nav-files-container');
-		if (!fileExplorer) return;
-
-		fileExplorer.addEventListener('click', (e) => {
-			const target = e.target as HTMLElement;
-			const folderCollapseIndicator = target.closest('.nav-folder-collapse-indicator') ||
-				target.closest('.nav-folder-title');
-
-			if (folderCollapseIndicator) {
-				// A folder was clicked, so schedule an update after DOM changes
-				this.debouncedUpdateIcons(250);
-			}
-		});
-	}
-
-	private debouncedUpdateIcons(delay: number = 100): void {
-		if (this.updateDebounceTimeout !== null) {
-			window.clearTimeout(this.updateDebounceTimeout);
-		}
-
-		this.updateDebounceTimeout = window.setTimeout(() => {
-			this.updateFileExplorerIcons();
-			this.updateDebounceTimeout = null;
-		}, delay);
-	}
-
 	private setupFolderObserver(): void {
 		if (this.folderObserver) {
 			this.folderObserver.disconnect();
@@ -88,59 +56,150 @@ export class FileExplorerUI {
 			let shouldUpdate = false;
 
 			for (const mutation of mutations) {
-				if (mutation.addedNodes.length > 0 || mutation.removedNodes.length > 0) {
-					shouldUpdate = true;
-					break;
+				if (mutation.target instanceof HTMLElement &&
+					(mutation.target.classList.contains('note-locker-icon') ||
+						mutation.target.closest('.note-locker-icon'))) {
+					continue;
 				}
 
-				if (mutation.type === 'attributes' &&
-					mutation.target instanceof HTMLElement &&
-					(mutation.target.classList.contains('nav-folder') ||
-						mutation.target.classList.contains('is-collapsed'))) {
-					shouldUpdate = true;
-					break;
-				}
-			}
+				if (mutation.type === 'childList') {
+					const target = mutation.target as HTMLElement;
+					const isTitle = target.classList.contains('nav-file-title') || target.classList.contains('nav-folder-title');
 
-			if (shouldUpdate) {
-				this.debouncedUpdateIcons(150);
+					let shouldProcess = false;
+
+					for (let i = 0; i < mutation.addedNodes.length; i++) {
+						const node = mutation.addedNodes[i];
+						if (!(node instanceof HTMLElement && node.classList.contains('note-locker-icon'))) {
+							shouldProcess = true;
+							break;
+						}
+					}
+
+					if (!shouldProcess) {
+						for (let i = 0; i < mutation.removedNodes.length; i++) {
+							shouldProcess = true;
+							break;
+						}
+					}
+
+					if (shouldProcess) {
+						if (isTitle) {
+							const container = target.parentElement;
+							if (container) this.processItem(container);
+						} else {
+							this.handleAddedNodes(mutation.addedNodes);
+						}
+					}
+
+				} else if (mutation.type === 'attributes') {
+					if (mutation.target instanceof HTMLElement) {
+						if (mutation.target.classList.contains('nav-file') || mutation.target.classList.contains('nav-folder')) {
+							this.processItem(mutation.target);
+						}
+					}
+				}
 			}
 		});
 
 		this.folderObserver.observe(fileExplorer, {
 			childList: true,
 			attributes: true,
-			attributeFilter: ['class'],
+			attributeFilter: ['class', 'data-path', 'is-collapsed'],
 			subtree: true
 		});
 	}
 
+	private handleAddedNodes(nodeList: NodeList): void {
+		nodeList.forEach((node) => {
+			if (node instanceof HTMLElement) {
+				if (node.classList.contains('nav-file') || node.classList.contains('nav-folder')) {
+					this.processItem(node);
+				}
+
+				if (node.classList.contains('nav-file-title') || node.classList.contains('nav-folder-title')) {
+					const container = node.parentElement;
+					if (container) this.processItem(container);
+				}
+
+				const items = node.querySelectorAll('.nav-file, .nav-folder');
+				items.forEach(item => this.processItem(item as HTMLElement));
+
+				const titles = node.querySelectorAll('.nav-file-title, .nav-folder-title');
+				titles.forEach(title => {
+					const container = title.parentElement;
+					if (container) this.processItem(container);
+				});
+			}
+		});
+	}
+
+	private processItem(item: HTMLElement): void {
+		const titleEl = item.querySelector('.nav-file-title, .nav-folder-title');
+		if (!titleEl) return;
+
+		const path = titleEl.getAttribute('data-path');
+		if (!path) return;
+
+		let shouldHaveIcon = false;
+		if (item.classList.contains('nav-file')) {
+			shouldHaveIcon = this.plugin.settings.lockedNotes.has(path);
+		} else if (item.classList.contains('nav-folder')) {
+			shouldHaveIcon = this.plugin.settings.lockedFolders.has(path);
+		}
+
+		this.updateIconState(titleEl, shouldHaveIcon);
+	}
+
 	public updateFileExplorerIcons(): void {
 		if (!this.plugin.settings.showFileExplorerIcons) {
 			this.removeFileExplorerIcons();
 			return;
 		}
 
-		// First, remove existing icons to avoid duplicates
-		this.removeFileExplorerIcons();
-
-		// Get all file elements in the file explorer
+		// Handle files
 		const fileItems = document.querySelectorAll('.nav-file');
-
 		fileItems.forEach((fileItem) => {
 			const titleEl = fileItem.querySelector('.nav-file-title');
 			if (!titleEl) return;
 
 			const filePath = titleEl.getAttribute('data-path');
-			if (!filePath || !this.plugin.settings.lockedNotes.has(filePath)) return;
+			if (!filePath) return;
 
-			// Create lock icon element
-			const iconEl = document.createElement('div');
-			iconEl.addClass('note-locker-icon');
-			setIcon(iconEl, 'lock');
-
-			titleEl.appendChild(iconEl);
+			// Only show icon if file is explicitly locked
+			const shouldHaveIcon = this.plugin.settings.lockedNotes.has(filePath);
+			this.updateIconState(titleEl, shouldHaveIcon);
 		});
+
+		// Handle folders
+		const folderItems = document.querySelectorAll('.nav-folder');
+		folderItems.forEach((folderItem) => {
+			const titleEl = folderItem.querySelector('.nav-folder-title');
+			if (!titleEl) return;
+
+			const folderPath = titleEl.getAttribute('data-path');
+			if (!folderPath) return;
+
+			const shouldHaveIcon = this.plugin.settings.lockedFolders.has(folderPath);
+			this.updateIconState(titleEl, shouldHaveIcon);
+		});
+	}
+
+	private updateIconState(targetEl: Element, shouldHaveIcon: boolean): void {
+		const existingIcon = targetEl.querySelector('.note-locker-icon');
+
+		if (shouldHaveIcon) {
+			if (!existingIcon) {
+				const iconEl = document.createElement('div');
+				iconEl.addClass('note-locker-icon');
+				setIcon(iconEl, 'lock');
+				targetEl.appendChild(iconEl);
+			}
+		} else {
+			if (existingIcon) {
+				existingIcon.remove();
+			}
+		}
 	}
 
 	public removeFileExplorerIcons(): void {