diff --git a/src/tagstudio/qt/modals/folders_to_tags.py b/src/tagstudio/qt/modals/folders_to_tags.py
index 11fb3b335..1952f335f 100644
--- a/src/tagstudio/qt/modals/folders_to_tags.py
+++ b/src/tagstudio/qt/modals/folders_to_tags.py
@@ -44,14 +44,14 @@ class BranchData:
 
 def add_folders_to_tree(library: Library, tree: BranchData, items: tuple[str, ...]) -> BranchData:
     branch = tree
+    parent_tag = None
     for folder in items:
         if folder not in branch.dirs:
-            # TODO: Reimplement parent tags
-            new_tag = Tag(name=folder)
+            new_tag = Tag(name=folder, parent_tags=({parent_tag} if parent_tag else None))
             library.add_tag(new_tag)
             branch.dirs[folder] = BranchData(tag=new_tag)
-            branch.tag = new_tag
         branch = branch.dirs[folder]
+        parent_tag = branch.tag
     return branch
 
 
@@ -71,7 +71,7 @@ def add_tag_to_tree(items: list[Tag]):
         add_tag_to_tree(reversed_tag)
 
     for entry in library.get_entries():
-        folders = entry.path.parts[1:-1]
+        folders = entry.path.parts[0:-1]
         if not folders:
             continue
 
@@ -124,7 +124,7 @@ def _add_folders_to_tree(items: Sequence[str]) -> BranchData:
         add_tag_to_tree(reversed_tag)
 
     for entry in library.get_entries():
-        folders = entry.path.parts[1:-1]
+        folders = entry.path.parts[0:-1]
         if not folders:
             continue
 
diff --git a/tests/qt/__snapshots__/test_folders_to_tags.ambr b/tests/qt/__snapshots__/test_folders_to_tags.ambr
index b54f3fe97..12093055d 100644
--- a/tests/qt/__snapshots__/test_folders_to_tags.ambr
+++ b/tests/qt/__snapshots__/test_folders_to_tags.ambr
@@ -1,4 +1,4 @@
 # serializer version: 1
 # name: test_generate_preview_data
-  BranchData(dirs={'two': BranchData(dirs={}, files=['bar.md'], tag=<Tag ID: None Name: two>)}, files=[], tag=None)
+  BranchData(dirs={'one': BranchData(dirs={'two': BranchData(dirs={}, files=['bar.md'], tag=<Tag ID: None Name: two>)}, files=[], tag=<Tag ID: None Name: one>)}, files=[], tag=None)
 # ---