diff --git a/.changelog/10569.txt b/.changelog/10569.txt
new file mode 100644
index 0000000000..d8aeab7ec5
--- /dev/null
+++ b/.changelog/10569.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+ui: Ensure in-folder KVs are created in the correct folder
+```
diff --git a/ui/packages/consul-ui/app/components/app-view/index.hbs b/ui/packages/consul-ui/app/components/app-view/index.hbs
index 6197f1b69b..a67a5561a6 100644
--- a/ui/packages/consul-ui/app/components/app-view/index.hbs
+++ b/ui/packages/consul-ui/app/components/app-view/index.hbs
@@ -54,7 +54,7 @@
{{#if authorized}}
-