diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
index 5bb23dfdf..a20de70ea 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
@@ -30,6 +30,7 @@ import { scrollToTheActiveTab } from 'utils/tabs';
 import { isTabForItemActive as isTabForItemActiveSelector, isTabForItemPresent as isTabForItemPresentSelector } from 'src/selectors/tab';
 import { isEqual } from 'lodash';
 import { calculateDraggedItemNewPathname } from 'utils/collections/index';
+import { sortByNameThenSequence } from 'utils/common/index';
 
 const CollectionItem = ({ item, collectionUid, collectionPathname, searchText }) => {
   const _isTabForItemActiveSelector = isTabForItemActiveSelector({ itemUid: item.uid });
@@ -250,7 +251,7 @@ const CollectionItem = ({ item, collectionUid, collectionPathname, searchText })
     dispatch(makeTabPermanent({ uid: item.uid }));
   };
 
-  // Sort items by their "seq" property.
+    // Sort items by their "seq" property.
   const sortItemsBySequence = (items = []) => {
     return items.sort((a, b) => a.seq - b.seq);
   };
@@ -262,9 +263,9 @@ const CollectionItem = ({ item, collectionUid, collectionPathname, searchText })
     });
   };
 
-  const folderItems = sortItemsBySequence(filter(item.items, (i) => isItemAFolder(i))); 
+  const folderItems = sortByNameThenSequence(filter(item.items, (i) => isItemAFolder(i))); 
   const requestItems = sortItemsBySequence(filter(item.items, (i) => isItemARequest(i)));
-
+ 
   const handleGenerateCode = (e) => {
     e.stopPropagation();
     dropdownTippyRef.current.hide();
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
index b2e20f236..404258d8d 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
@@ -25,6 +25,7 @@ import { areItemsLoading } from 'utils/collections';
 import { scrollToTheActiveTab } from 'utils/tabs';
 import ShareCollection from 'components/ShareCollection/index';
 import { CollectionItemDragPreview } from './CollectionItem/CollectionItemDragPreview/index';
+import { sortByNameThenSequence } from 'utils/common/index';
 
 const Collection = ({ collection, searchText }) => {
   const [showNewFolderModal, setShowNewFolderModal] = useState(false);
@@ -185,7 +186,7 @@ const Collection = ({ collection, searchText }) => {
   };
 
   const requestItems = sortItemsBySequence(filter(collection.items, (i) => isItemARequest(i)));
-  const folderItems = sortItemsBySequence(filter(collection.items, (i) => isItemAFolder(i)));
+  const folderItems = sortByNameThenSequence(filter(collection.items, (i) => isItemAFolder(i)));
 
   return (
     <StyledWrapper className="flex flex-col">
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
index bbbc9a61e..6c880096e 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
@@ -383,33 +383,26 @@ export const newFolder = (folderName, directoryName, collectionUid, itemUid) =>
       if (!folderWithSameNameExists) {
         const fullName = path.join(collection.pathname, directoryName);
         const { ipcRenderer } = window;
+
+        const folderBruJsonData = {
+          meta: {
+            name: folderName,
+            seq: items?.length + 1 
+          },
+          request: {
+            auth: {
+              mode: 'inherit'
+            }
+          }
+        };
+
         ipcRenderer
-          .invoke('renderer:new-folder', fullName)
-          .then(async () => {
-            const folderData = {
-              name: folderName,
-              pathname: fullName,
-              root: { 
-                meta: {
-                  name: folderName,
-                  seq: items?.length + 1 
-                },
-                request: {
-                  auth: {
-                    mode: 'inherit'
-                  }
-                }
-              }
-            };
-            ipcRenderer
-              .invoke('renderer:save-folder-root', folderData)
-              .then(resolve)
-              .catch((err) => {
-                toast.error('Failed to save folder settings!');
-                reject(err);
-              });
-          })
-          .catch((error) => reject(error));
+          .invoke('renderer:new-folder', { pathname: fullName, folderBruJsonData })
+          .then(resolve)
+          .catch((error) => {
+            toast.error('Failed to create a new folder!');
+            reject(error)
+          });
       } else {
         return reject(new Error('Duplicate folder names under same parent folder are not allowed'));
       }
@@ -424,33 +417,25 @@ export const newFolder = (folderName, directoryName, collectionUid, itemUid) =>
           const fullName = path.join(currentItem.pathname, directoryName);
           const { ipcRenderer } = window;
 
+          const folderBruJsonData = {
+            meta: {
+              name: folderName,
+              seq: items?.length + 1 
+            },
+            request: {
+              auth: {
+                mode: 'inherit'
+              }
+            }
+          };
+
           ipcRenderer
-            .invoke('renderer:new-folder', fullName)
-            .then(async () => {
-              const folderData = {
-                name: folderName,
-                pathname: fullName,
-                root: { 
-                  meta: {
-                    name: folderName,
-                    seq: items?.length + 1 
-                  },
-                  request: {
-                    auth: {
-                      mode: 'inherit'
-                    }
-                  }
-                }
-              };
-              ipcRenderer
-                .invoke('renderer:save-folder-root', folderData)
-                .then(resolve)
-                .catch((err) => {
-                  toast.error('Failed to save folder settings!');
-                  reject(err);
-                });
-            })
-            .catch((error) => reject(error));
+            .invoke('renderer:new-folder', { pathname: fullName, folderBruJsonData })
+            .then(resolve)
+            .catch((error) => {
+              toast.error('Failed to create a new folder!');
+              reject(error)
+            });
         } else {
           return reject(new Error('Duplicate folder names under same parent folder are not allowed'));
         }
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
index 47a46a287..b904f64b8 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
@@ -1890,7 +1890,7 @@ export const collectionsSlice = createSlice({
               uid: dir?.meta?.uid || uuid(),
               pathname: currentPath,
               name: dir?.meta?.name || directoryName,
-              seq: dir?.meta?.seq || 1,
+              seq: dir?.meta?.seq,
               filename: directoryName,
               collapsed: true,
               type: 'folder',
diff --git a/packages/bruno-app/src/utils/collections/index.js b/packages/bruno-app/src/utils/collections/index.js
index 9085a5b53..69f15fd46 100644
--- a/packages/bruno-app/src/utils/collections/index.js
+++ b/packages/bruno-app/src/utils/collections/index.js
@@ -1,5 +1,6 @@
 import {cloneDeep, isEqual, sortBy, filter, map, isString, findIndex, find, each, get } from 'lodash';
 import { uuid } from 'utils/common';
+import { sortByNameThenSequence } from 'utils/common/index';
 import path from 'utils/common/path';
 
 const replaceTabsWithSpaces = (str, numSpaces = 2) => {
@@ -1036,7 +1037,7 @@ export const getFormattedCollectionOauth2Credentials = ({ oauth2Credentials = []
 
 export const resetSequencesInFolder = (folderItems) => {
   const items = folderItems;
-  const sortedItems = items.sort((a, b) => a.seq - b.seq);
+  const sortedItems = sortByNameThenSequence(items);
   return sortedItems.map((item, index) => {
     item.seq = index + 1;
     return item;
diff --git a/packages/bruno-app/src/utils/common/folders-requests-sorting.spec.js b/packages/bruno-app/src/utils/common/folders-requests-sorting.spec.js
new file mode 100644
index 000000000..fbcf71379
--- /dev/null
+++ b/packages/bruno-app/src/utils/common/folders-requests-sorting.spec.js
@@ -0,0 +1,374 @@
+const { describe, it, expect } = require('@jest/globals');
+const { sortByNameThenSequence } = require('./index');
+
+describe('sortByNameThenSequence', () => {
+  describe('Basic functionality', () => {
+    it('should return an empty array when given an empty array', () => {
+      const items = [];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([]);
+    });
+
+    it('should not mutate the original array', () => {
+      const items = [
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_1', seq: 1 }
+      ];
+      const originalItems = JSON.parse(JSON.stringify(items));
+      sortByNameThenSequence(items);
+      expect(items).toEqual(originalItems);
+    });
+
+    it('should return a new array instance', () => {
+      const items = [{ name: 'folder_1' }];
+      const result = sortByNameThenSequence(items);
+      expect(result).not.toBe(items);
+    });
+  });
+
+  describe('Alphabetical sorting (no sequence numbers)', () => {
+    it('should sort items alphabetically by name when no sequence numbers are present', () => {
+      const items = [
+        { name: 'folder_3' },
+        { name: 'folder_1' },
+        { name: 'folder_2' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1' },
+        { name: 'folder_2' },
+        { name: 'folder_3' }
+      ]);
+    });
+
+    it('should handle case-sensitive sorting correctly', () => {
+      const items = [
+        { name: 'Folder_2' },
+        { name: 'folder_1' },
+        { name: 'FOLDER_3' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1' },
+        { name: 'Folder_2' },
+        { name: 'FOLDER_3' }
+      ]);
+    });
+
+    it('should handle special characters in names', () => {
+      const items = [
+        { name: 'folder-2' },
+        { name: 'folder_1' },
+        { name: 'folder 3' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder 3' },
+        { name: 'folder_1' },
+        { name: 'folder-2' }
+      ]);
+    });
+  });
+
+  describe('Sequence-based sorting (valid sequence numbers)', () => {
+    it('should sort items by sequence when all items have valid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: 3 },
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2', seq: 2 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_3', seq: 3 }
+      ]);
+    });
+
+    it('should handle duplicate sequence numbers by inserting them in alphabetical order', () => {
+      const items = [
+        { name: 'folder_3', seq: 1 },
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2', seq: 2 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_3', seq: 1 },
+        { name: 'folder_2', seq: 2 },
+      ]);
+    });
+
+    it('should handle large sequence numbers correctly', () => {
+      const items = [
+        { name: 'folder_1', seq: 100 },
+        { name: 'folder_2', seq: 1 },
+        { name: 'folder_3', seq: 50 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_2', seq: 1 },
+        { name: 'folder_3', seq: 50 },
+        { name: 'folder_1', seq: 100 }
+      ]);
+    });
+  });
+
+  describe('Invalid sequence numbers', () => {
+    it('should treat undefined sequence as invalid and sort alphabetically', () => {
+      const items = [
+        { name: 'folder_3', seq: undefined },
+        { name: 'folder_1', seq: undefined },
+        { name: 'folder_2', seq: undefined }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: undefined },
+        { name: 'folder_2', seq: undefined },
+        { name: 'folder_3', seq: undefined }
+      ]);
+    });
+
+    it('should treat null sequence as invalid and sort alphabetically', () => {
+      const items = [
+        { name: 'folder_3', seq: null },
+        { name: 'folder_1', seq: null },
+        { name: 'folder_2', seq: null }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: null },
+        { name: 'folder_2', seq: null },
+        { name: 'folder_3', seq: null }
+      ]);
+    });
+
+    it('should treat boolean values as invalid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: true },
+        { name: 'folder_1', seq: false },
+        { name: 'folder_2', seq: true }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: false },
+        { name: 'folder_2', seq: true },
+        { name: 'folder_3', seq: true }
+      ]);
+    });
+
+    it('should treat string values as invalid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: '3' },
+        { name: 'folder_1', seq: '1' },
+        { name: 'folder_2', seq: 'invalid' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: '1' },
+        { name: 'folder_2', seq: 'invalid' },
+        { name: 'folder_3', seq: '3' }
+      ]);
+    });
+
+    it('should treat non-integer numbers as invalid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: 3.5 },
+        { name: 'folder_1', seq: 1.2 },
+        { name: 'folder_2', seq: 2.0 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: 1.2 },
+        { name: 'folder_2', seq: 2.0 },
+        { name: 'folder_3', seq: 3.5 }
+      ]);
+    });
+
+    it('should treat zero and negative numbers as invalid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: 0 },
+        { name: 'folder_1', seq: -1 },
+        { name: 'folder_2', seq: -5 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: -1 },
+        { name: 'folder_2', seq: -5 },
+        { name: 'folder_3', seq: 0 }
+      ]);
+    });
+
+    it('should treat NaN and Infinity as invalid sequence numbers', () => {
+      const items = [
+        { name: 'folder_3', seq: NaN },
+        { name: 'folder_1', seq: Infinity },
+        { name: 'folder_2', seq: -Infinity }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: Infinity },
+        { name: 'folder_2', seq: -Infinity },
+        { name: 'folder_3', seq: NaN }
+      ]);
+    });
+
+    it('should handle invalid sequence numbers correctly', () => {
+      const items = [
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_1', seq: false },
+        { name: 'folder_5', seq: 'invalid' },
+        { name: 'folder_2', seq: true },
+        { name: 'folder_3', seq: null }
+      ];
+      const sorted = sortByNameThenSequence(items);
+      expect(sorted).toEqual([
+        { name: 'folder_1', seq: false },
+        { name: 'folder_2', seq: true },
+        { name: 'folder_3', seq: null },
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_5', seq: 'invalid' }
+      ]);
+    });
+  });
+
+  describe('Mixed valid and invalid sequence numbers', () => {
+    it('should handle mixed valid and invalid sequence numbers correctly', () => {
+      const items = [
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_1', seq: false },
+        { name: 'folder_5', seq: 3 },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_3', seq: null },
+        { name: 'folder_6', seq: 9 },
+        { name: 'folder_8', seq: 'invalid' },
+        { name: 'folder_7', seq: 4 }
+      ];
+      const sorted = sortByNameThenSequence(items);
+      expect(sorted).toEqual([
+        { name: 'folder_1', seq: false },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_5', seq: 3 },
+        { name: 'folder_7', seq: 4 },
+        { name: 'folder_3', seq: null },
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_8', seq: 'invalid' },
+        { name: 'folder_6', seq: 9 }
+      ]);
+    });
+
+    it('should insert sequenced items at their positions among non-sequenced items', () => {
+      const items = [
+        { name: 'folder_6' },
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_5' },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_4' },
+        { name: 'folder_3', seq: 4 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_4' },
+        { name: 'folder_3', seq: 4 },
+        { name: 'folder_5' },
+        { name: 'folder_6' }
+      ]);
+    });
+
+    it('should handle sequence numbers beyond the array length', () => {
+      const items = [
+        { name: 'folder_1', seq: 10 },
+        { name: 'folder_2' },
+        { name: 'folder_3', seq: 20 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_2' },
+        { name: 'folder_1', seq: 10 },
+        { name: 'folder_3', seq: 20 }
+      ]);
+    });
+  });
+
+  describe('Edge cases and boundary conditions', () => {
+    it('should handle items with missing name property without throwing errors', () => {
+      const items = [
+        { seq: 1 },
+        { name: 'folder_1' },
+        { name: 'folder_2', seq: 2 }
+      ];
+      // Note: This might cause issues in production, but we test the current behavior
+      expect(() => sortByNameThenSequence(items)).not.toThrow();
+    });
+
+    it('should handle items with no seq property (equivalent to undefined)', () => {
+      const items = [
+        { name: 'folder_3' },
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_1', seq: 1 },
+        { name: 'folder_2' },
+        { name: 'folder_3' }
+      ]);
+    });
+
+    it('should handle single item arrays', () => {
+      const items = [{ name: 'folder_1', seq: 1 }];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([{ name: 'folder_1', seq: 1 }]);
+    });
+
+    it('should handle items with identical names but different sequences', () => {
+      const items = [
+        { name: 'folder', seq: 2 },
+        { name: 'folder', seq: 1 },
+        { name: 'folder' }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder', seq: 1 },
+        { name: 'folder', seq: 2 },
+        { name: 'folder' }
+      ]);
+    });
+  });
+
+  describe('Complex scenarios', () => {
+    it('should handle a comprehensive mix of all scenarios', () => {
+      const items = [
+        { name: 'folder_10', seq: 'invalid' },
+        { name: 'folder_1', seq: false },
+        { name: 'folder_11', seq: 3 },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_3', seq: null },
+        { name: 'folder_12', seq: 9 },
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_5' },
+        { name: 'folder_6', seq: 0 },
+        { name: 'folder_7', seq: 4 },
+        { name: 'folder_8', seq: 1 },
+        { name: 'folder_9', seq: -1 }
+      ];
+      const result = sortByNameThenSequence(items);
+      expect(result).toEqual([
+        { name: 'folder_8', seq: 1 },
+        { name: 'folder_2', seq: 2 },
+        { name: 'folder_11', seq: 3 },
+        { name: 'folder_7', seq: 4 },
+        { name: 'folder_1', seq: false },
+        { name: 'folder_10', seq: 'invalid' },
+        { name: 'folder_3', seq: null },
+        { name: 'folder_4', seq: undefined },
+        { name: 'folder_12', seq: 9 },
+        { name: 'folder_5' },
+        { name: 'folder_6', seq: 0 },
+        { name: 'folder_9', seq: -1 }
+      ]);
+    });
+  });
+});
\ No newline at end of file
diff --git a/packages/bruno-app/src/utils/common/index.js b/packages/bruno-app/src/utils/common/index.js
index f6621621f..6402d5a1e 100644
--- a/packages/bruno-app/src/utils/common/index.js
+++ b/packages/bruno-app/src/utils/common/index.js
@@ -219,4 +219,45 @@ export const formatSize = (bytes) => {
   }
 
   return (bytes / (1024 * 1024 * 1024)).toFixed(1) + 'GB';
-}
\ No newline at end of file
+}
+
+export const sortByNameThenSequence = items => {
+  const isSeqValid = seq => Number.isFinite(seq) && Number.isInteger(seq) && seq > 0;
+
+  // Sort folders alphabetically by name
+  const alphabeticallySorted = [...items].sort((a, b) => a.name && b.name && a.name.localeCompare(b.name));
+
+  // Extract folders without 'seq'
+  const withoutSeq = alphabeticallySorted.filter(f => !isSeqValid(f['seq']));
+
+  // Extract folders with 'seq' and sort them by 'seq'
+  const withSeq = alphabeticallySorted.filter(f => isSeqValid(f['seq'])).sort((a, b) => a.seq - b.seq);
+
+  const sortedItems = withoutSeq;
+
+  // Insert folders with 'seq' at their specified positions
+  withSeq.forEach((item) => {
+    const position = item.seq - 1;
+    const existingItem = withoutSeq[position];
+
+    // Check if there's already an item with the same sequence number
+    const hasItemWithSameSeq = Array.isArray(existingItem)
+      ? existingItem[0].seq === item.seq
+      : existingItem?.seq === item.seq;
+
+    if (hasItemWithSameSeq) {
+      // If there's a conflict, group items with same sequence together
+      const newGroup = Array.isArray(existingItem)
+        ? [...existingItem, item]
+        : [existingItem, item];
+      
+      withoutSeq.splice(position, 1, newGroup);
+    } else {
+      // Insert item at the specified position
+      withoutSeq.splice(position, 0, item);
+    }
+  });
+
+  // return flattened sortedItems
+  return sortedItems.flat();
+};
\ No newline at end of file
diff --git a/packages/bruno-cli/src/utils/bru.js b/packages/bruno-cli/src/utils/bru.js
index 07844a455..193354f50 100644
--- a/packages/bruno-cli/src/utils/bru.js
+++ b/packages/bruno-cli/src/utils/bru.js
@@ -22,8 +22,11 @@ const collectionBruToJson = (bru) => {
     if (json?.meta) {
       transformedJson.meta = {
         name: json.meta.name,
-        seq: !isNaN(sequence) ? Number(sequence) : 1
       };
+
+      if (sequence) {
+        transformedJson.meta.seq = Number(sequence);
+      }
     }
 
     return transformedJson;
@@ -59,7 +62,7 @@ const bruToJson = (bru) => {
     const transformedJson = {
       type: requestType,
       name: _.get(json, 'meta.name'),
-      seq: !isNaN(sequence) ? Number(sequence) : 1,
+      seq: !_.isNaN(sequence) ? Number(sequence) : 1,
       request: {
         method: _.upperCase(_.get(json, 'http.method')),
         url: _.get(json, 'http.url'),
diff --git a/packages/bruno-electron/src/app/collection-watcher.js b/packages/bruno-electron/src/app/collection-watcher.js
index 72b161292..d6b6cbfba 100644
--- a/packages/bruno-electron/src/app/collection-watcher.js
+++ b/packages/bruno-electron/src/app/collection-watcher.js
@@ -326,14 +326,14 @@ const addDirectory = async (win, pathname, collectionUid, collectionPath) => {
   }
 
   let name = path.basename(pathname);
-  let seq = 1;
+  let seq;
   const folderBruFilePath = path.join(pathname, `folder.bru`);
 
   if (fs.existsSync(folderBruFilePath)) {
     let folderBruFileContent = fs.readFileSync(folderBruFilePath, 'utf8');
     let folderBruData = await collectionBruToJson(folderBruFileContent);
     name = folderBruData?.meta?.name || name;
-    seq = folderBruData?.meta?.seq || seq;
+    seq = folderBruData?.meta?.seq;
   }
 
   const directory = {
diff --git a/packages/bruno-electron/src/bru/index.js b/packages/bruno-electron/src/bru/index.js
index 946d95519..cde4067ac 100644
--- a/packages/bruno-electron/src/bru/index.js
+++ b/packages/bruno-electron/src/bru/index.js
@@ -33,8 +33,11 @@ const collectionBruToJson = async (data, parsed = false) => {
     if (json?.meta) {
       transformedJson.meta = {
         name: json.meta.name,
-        seq: !isNaN(sequence) ? Number(sequence) : 1
       };
+
+      if (sequence) {
+        transformedJson.meta.seq = Number(sequence);
+      }
     }
 
     return transformedJson;
@@ -67,8 +70,11 @@ const jsonToCollectionBru = async (json, isFolder) => {
     if (json?.meta) {
       collectionBruJson.meta = {
         name: json.meta.name,
-        seq: !isNaN(sequence) ? Number(sequence) : 1
       };
+
+      if (sequence) {
+        collectionBruJson.meta.seq = Number(sequence);
+      }
     }
 
     return _jsonToCollectionBru(collectionBruJson);
@@ -129,7 +135,7 @@ const bruToJson = (data, parsed = false) => {
     const transformedJson = {
       type: requestType,
       name: _.get(json, 'meta.name'),
-      seq: !isNaN(sequence) ? Number(sequence) : 1,
+      seq: !_.isNaN(sequence) ? Number(sequence) : 1,
       request: {
         method: _.upperCase(_.get(json, 'http.method')),
         url: _.get(json, 'http.url'),
@@ -187,7 +193,7 @@ const jsonToBru = async (json) => {
     meta: {
       name: _.get(json, 'name'),
       type: type,
-      seq: !isNaN(sequence) ? Number(sequence) : 1
+      seq: !_.isNaN(sequence) ? Number(sequence) : 1
     },
     http: {
       method: _.lowerCase(_.get(json, 'request.method')),
@@ -228,7 +234,7 @@ const jsonToBruViaWorker = async (json) => {
     meta: {
       name: _.get(json, 'name'),
       type: type,
-      seq: !isNaN(sequence) ? Number(sequence) : 1
+      seq: !_.isNaN(sequence) ? Number(sequence) : 1
     },
     http: {
       method: _.lowerCase(_.get(json, 'request.method')),
diff --git a/packages/bruno-electron/src/ipc/collection.js b/packages/bruno-electron/src/ipc/collection.js
index 96322e4b4..9367b2aa7 100644
--- a/packages/bruno-electron/src/ipc/collection.js
+++ b/packages/bruno-electron/src/ipc/collection.js
@@ -213,8 +213,7 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
 
       if (!folderRoot.meta) {
         folderRoot.meta = {
-          name: folderName,
-          seq: 1
+          name: folderName
         };
       }
 
@@ -400,8 +399,7 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
         } else {
           folderBruFileJsonContent = {
             meta: {
-              name: newName,
-              seq: 1
+              name: newName
             }
           };
         }
@@ -451,8 +449,7 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
         } else {
           folderBruFileJsonContent = {
             meta: {
-              name: newName,
-              seq: 1
+              name: newName
             }
           };
         }
@@ -526,20 +523,14 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
   });
 
   // new folder
-  ipcMain.handle('renderer:new-folder', async (event, pathname, folderName) => {
+  ipcMain.handle('renderer:new-folder', async (event, { pathname, folderBruJsonData }) => {
     const resolvedFolderName = sanitizeName(path.basename(pathname));
     pathname = path.join(path.dirname(pathname), resolvedFolderName);
     try {
       if (!fs.existsSync(pathname)) {
         fs.mkdirSync(pathname);
         const folderBruFilePath = path.join(pathname, 'folder.bru');
-        let data = {
-          meta: {
-            name: folderName,
-            seq: 1
-          }
-        };
-        const content = await jsonToCollectionBru(data, true); // isFolder flag
+        const content = await jsonToCollectionBru(folderBruJsonData, true); // isFolder flag
         await writeFile(folderBruFilePath, content);
       } else {
         return Promise.reject(new Error('The directory already exists'));
@@ -762,8 +753,8 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
           const folderRootPath = path.join(item.pathname, 'folder.bru');
           let folderBruJsonData = {
             meta: {
-              name: path.basename(item?.pathname),
-              seq: item?.seq || 1
+              name: path.basename(item.pathname),
+              seq: item.seq
             }
           };
           if (fs.existsSync(folderRootPath)) {
@@ -771,8 +762,8 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
             folderBruJsonData = await collectionBruToJson(bru);
             if (!folderBruJsonData?.meta) {
               folderBruJsonData.meta = {
-                name: path.basename(item?.pathname),
-                seq: item?.seq || 1
+                name: path.basename(item.pathname),
+                seq: item.seq
               };
             }
             if (folderBruJsonData?.meta?.seq === item.seq) {
diff --git a/packages/bruno-electron/src/ipc/network/index.js b/packages/bruno-electron/src/ipc/network/index.js
index 4f17c06cf..c7a5ef2b1 100644
--- a/packages/bruno-electron/src/ipc/network/index.js
+++ b/packages/bruno-electron/src/ipc/network/index.js
@@ -24,9 +24,8 @@ const { uuid, safeStringifyJSON, safeParseJSON, parseDataFromResponse, parseData
 const { chooseFileToSave, writeBinaryFile, writeFile } = require('../../utils/filesystem');
 const { addCookieToJar, getDomainsWithCookies, getCookieStringForUrl } = require('../../utils/cookies');
 const { createFormData } = require('../../utils/form-data');
-const { findItemInCollectionByPathname, sortFolder, getAllRequestsInFolderRecursively, getEnvVars, getTreePathFromCollectionToItem, mergeVars } = require('../../utils/collection');
+const { findItemInCollectionByPathname, sortFolder, getAllRequestsInFolderRecursively, getEnvVars, getTreePathFromCollectionToItem, mergeVars, sortByNameThenSequence } = require('../../utils/collection');
 const { getOAuth2TokenUsingAuthorizationCode, getOAuth2TokenUsingClientCredentials, getOAuth2TokenUsingPasswordCredentials, getOAuth2TokenUsingImplicitGrant } = require('../../utils/oauth2');
-const { setupProxyAgents } = require('../../utils/proxy-util');
 const { preferencesUtil } = require('../../store/preferences');
 const { getProcessEnvVars } = require('../../store/process-env');
 const { getBrunoConfig } = require('../../store/bruno-config');
@@ -1003,10 +1002,9 @@ const registerNetworkIpc = (mainWindow) => {
             }
           });
 
+          
           // sort requests by seq property
-          folderRequests.sort((a, b) => {
-            return a.seq - b.seq;
-          });
+          folderRequests = sortByNameThenSequence(folderRequests)
         }
 
         let currentRequestIndex = 0;
diff --git a/packages/bruno-electron/src/utils/collection.js b/packages/bruno-electron/src/utils/collection.js
index 94fa30ec8..038e388fc 100644
--- a/packages/bruno-electron/src/utils/collection.js
+++ b/packages/bruno-electron/src/utils/collection.js
@@ -346,7 +346,7 @@ const sortCollection = (collection) => {
   let folderItems = filter(items, (item) => item.type === 'folder');
   let requestItems = filter(items, (item) => item.type !== 'folder');
 
-  folderItems = folderItems.sort((a, b) => a.seq - b.seq);
+  folderItems = sortByNameThenSequence(folderItems);
   requestItems = requestItems.sort((a, b) => a.seq - b.seq);
 
   collection.items = folderItems.concat(requestItems);
@@ -361,7 +361,7 @@ const sortFolder = (folder = {}) => {
   let folderItems = filter(items, (item) => item.type === 'folder');
   let requestItems = filter(items, (item) => item.type !== 'folder');
 
-  folderItems = folderItems.sort((a, b) => a.seq - b.seq);
+  folderItems = sortByNameThenSequence(folderItems);
   requestItems = requestItems.sort((a, b) => a.seq - b.seq);
 
   folder.items = folderItems.concat(requestItems);
@@ -467,6 +467,47 @@ const mergeAuth = (collection, request, requestTreePath) => {
   }
 };
 
+const sortByNameThenSequence = items => {
+  const isSeqValid = seq => Number.isFinite(seq) && Number.isInteger(seq) && seq > 0;
+
+  // Sort folders alphabetically by name
+  const alphabeticallySorted = [...items].sort((a, b) => a.name && b.name && a.name.localeCompare(b.name));
+
+  // Extract folders without 'seq'
+  const withoutSeq = alphabeticallySorted.filter(f => !isSeqValid(f['seq']));
+
+  // Extract folders with 'seq' and sort them by 'seq'
+  const withSeq = alphabeticallySorted.filter(f => isSeqValid(f['seq'])).sort((a, b) => a.seq - b.seq);
+
+  const sortedItems = withoutSeq;
+
+  // Insert folders with 'seq' at their specified positions
+  withSeq.forEach((item) => {
+    const position = item.seq - 1;
+    const existingItem = withoutSeq[position];
+
+    // Check if there's already an item with the same sequence number
+    const hasItemWithSameSeq = Array.isArray(existingItem)
+      ? existingItem[0].seq === item.seq
+      : existingItem?.seq === item.seq;
+
+    if (hasItemWithSameSeq) {
+      // If there's a conflict, group items with same sequence together
+      const newGroup = Array.isArray(existingItem)
+        ? [...existingItem, item]
+        : [existingItem, item];
+      
+      withoutSeq.splice(position, 1, newGroup);
+    } else {
+      // Insert item at the specified position
+      withoutSeq.splice(position, 0, item);
+    }
+  });
+
+  // return flattened sortedItems
+  return sortedItems.flat();
+};
+
 module.exports = {
   mergeHeaders,
   mergeVars,
@@ -487,5 +528,6 @@ module.exports = {
   sortFolder,
   getAllRequestsInFolderRecursively,
   getEnvVars,
-  getFormattedCollectionOauth2Credentials
+  getFormattedCollectionOauth2Credentials,
+  sortByNameThenSequence
 };
\ No newline at end of file