diff --git a/template/index.html b/template/index.html
index ef8a54f..62b76f0 100644
--- a/template/index.html
+++ b/template/index.html
@@ -244,8 +244,11 @@
                 <form action="" @submit.prevent="createFeed(event)" class="mt-4">
                     <label for="feed-url">URL</label>
                     <input id="feed-url" name="url" type="url" class="form-control" required autocomplete="off" :readonly="feedNewChoice.length > 0">
-                    <label for="feed-folder" class="mt-3">Folder</label>
-                    <select class="form-control" id="feed-folder" name="folder_id">
+                    <label for="feed-folder" class="mt-3 d-block">
+                        Folder
+                        <a href="#" class="float-right text-decoration-none" @click.prevent="createNewFeedFolder()">new folder</a>
+                    </label>
+                    <select class="form-control" id="feed-folder" name="folder_id" ref="newFeedFolder">
                         <option value=""></option>
                         <option :value="folder.id" v-for="folder in folders">{{ folder.title }}</option>
                     </select>
@@ -305,16 +308,20 @@
                                 <b-dropdown-item @click.prevent="renameFeed(feed)">Rename</b-dropdown-item>
                                 <b-dropdown-divider v-if="folders.length"></b-dropdown-divider>
                                 <b-dropdown-header v-if="folders.length">Move to...</b-dropdown-header>
-                                <b-dropdown-item
-                                   v-if="folder.id != feed.folder_id"
-                                   v-for="folder in folders"
-                                   @click.prevent="moveFeed(feed, folder)">
+                                <b-dropdown-item @click="moveFeed(feed, null)" v-if="feed.folder_id">
+                                    <span class="text-muted">---</span>
+                                </b-dropdown-item>
+                                <b-dropdown-item-button
+                                    v-if="folder.id != feed.folder_id"
+                                    v-for="folder in folders"
+                                    @click="moveFeed(feed, folder)">
+                                    <span class="icon mr-1">{% inline "folder.svg" %}</span>
                                     {{ folder.title }}
-                                </b-dropdown-item>
-                                <b-dropdown-item
-                                   @click.prevent="moveFeed(feed, null)" v-if="feed.folder_id">
-                                    <span class="text-muted">Uncategorized</span>
-                                </b-dropdown-item>
+                                </b-dropdown-item-button>
+                                <b-dropdown-item-button @click="moveFeedToNewFolder(feed)">
+                                    <span class="text-muted icon mr-1">{% inline "plus.svg" %}</span>
+                                    <span class="text-muted">New Folder</span>
+                                </b-dropdown-item-button>
                                 <b-dropdown-divider></b-dropdown-divider>
                                 <b-dropdown-item class="dropdown-danger"
                                    @click.prevent="deleteFeed(feed)">
diff --git a/template/static/javascripts/app.js b/template/static/javascripts/app.js
index 9d967c5..5921e5b 100644
--- a/template/static/javascripts/app.js
+++ b/template/static/javascripts/app.js
@@ -307,7 +307,7 @@ var vm = new Vue({
       return query
     },
     refreshFeeds: function() {
-      Promise
+      return Promise
         .all([api.folders.list(), api.feeds.list()])
         .then(function(values) {
           vm.folders = values[0]
@@ -362,13 +362,26 @@ var vm = new Vue({
         feed.folder_id = folder_id
       })
     },
-    createFolder: function(event) {
-      var form = event.target
-      var titleInput = form.querySelector('input[name=title]')
-      var data = {'title': titleInput.value}
-      api.folders.create(data).then(function(result) {
-        vm.folders.push(result)
-        titleInput.value = ''
+    moveFeedToNewFolder: function(feed) {
+      var title = prompt('Enter folder name:')
+      if (!title) return
+      api.folders.create({'title': title}).then(function(folder) {
+        api.feeds.update(feed.id, {folder_id: folder.id}).then(function() {
+          vm.refreshFeeds()
+        })
+      })
+    },
+    createNewFeedFolder: function() {
+      var title = prompt('Enter folder name:')
+      if (!title) return
+      api.folders.create({'title': title}).then(function(result) {
+        vm.refreshFeeds().then(function() {
+          vm.$nextTick(function() {
+            if (vm.$refs.newFeedFolder) {
+              vm.$refs.newFeedFolder.value = result.id
+            }
+          })
+        })
       })
     },
     renameFolder: function(folder) {