diff --git a/apps/studio/components/interfaces/Storage/StorageExplorer/MoveItemsFolderPicker.tsx b/apps/studio/components/interfaces/Storage/StorageExplorer/MoveItemsFolderPicker.tsx
index 2520ee8638d..55b89dfc2a7 100644
--- a/apps/studio/components/interfaces/Storage/StorageExplorer/MoveItemsFolderPicker.tsx
+++ b/apps/studio/components/interfaces/Storage/StorageExplorer/MoveItemsFolderPicker.tsx
@@ -147,7 +147,7 @@ export const MoveItemsFolderPicker = ({
         </p>
       </div>
 
-      <div className="min-h-0 flex-1 overflow-hidden">
+      <div className="min-h-0 flex-1 overflow-hidden" data-testid="folder-picker-list">
         {isSearching && isPendingFolders && (
           <div className="flex flex-col gap-y-2 p-2.5">
             <ShimmeringLoader />
diff --git a/e2e/studio/features/storage-move.spec.ts b/e2e/studio/features/storage-move.spec.ts
new file mode 100644
index 00000000000..de8da50f3e0
--- /dev/null
+++ b/e2e/studio/features/storage-move.spec.ts
@@ -0,0 +1,229 @@
+import { expect, type Page } from '@playwright/test'
+
+import {
+  confirmMove,
+  navigateToBucket,
+  navigateToStorageFiles,
+  openMoveDialog,
+} from '../utils/storage-helpers.js'
+import { deleteBucket as deleteBucketViaApi, seedBucket } from '../utils/storage/index.js'
+import { test } from '../utils/test.js'
+
+const bucketNamePrefix = 'pw_move'
+
+/**
+ * Seeds a bucket from scratch and lands the explorer inside it. Each test uses its own bucket so
+ * the file can run in parallel with the rest of the suite.
+ */
+const setUpBucket = async (page: Page, ref: string, bucketName: string, objectPaths: string[]) => {
+  await deleteBucketViaApi(bucketName)
+  await seedBucket(bucketName, objectPaths)
+  await navigateToStorageFiles(page, ref)
+  await navigateToBucket(page, ref, bucketName)
+}
+
+test.describe('Storage move file', () => {
+  test('moves a file into a folder picked from the explorer', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_basic`
+    const fileName = 'move-me.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'docs/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    // The destination starts at the bucket root, so the file is already there
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}`, { exact: true }),
+      'Destination should start at the bucket root'
+    ).toBeVisible()
+
+    await folderList.getByRole('button', { name: 'docs' }).click()
+
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/docs`, { exact: true }),
+      'Destination should follow the folder that was opened'
+    ).toBeVisible()
+
+    await confirmMove(page, ref, 'docs')
+
+    await expect(
+      page.getByText(/Successfully moved/),
+      'A success toast should confirm the move'
+    ).toBeVisible()
+    await expect(
+      page.getByTitle(fileName),
+      'File should no longer sit at the bucket root'
+    ).not.toBeVisible()
+
+    // Open the destination folder and confirm the file landed there
+    await page.getByTitle('docs').click()
+    await expect(
+      page.getByTitle(fileName),
+      'File should be inside the destination folder'
+    ).toBeVisible()
+  })
+
+  test('offers folders only, never files, as destinations', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_folders_only`
+    const fileName = 'picker-source.txt'
+    const siblingFileName = 'sibling.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, siblingFileName, 'docs/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    await expect(
+      folderList.getByRole('button', { name: 'docs' }),
+      'Folders should be listed as destinations'
+    ).toBeVisible()
+    await expect(
+      folderList.getByText(siblingFileName),
+      'Files should not be listed in the picker at all'
+    ).not.toBeVisible()
+    await expect(
+      folderList.getByText(fileName, { exact: true }),
+      'The file being moved should not be listed either'
+    ).not.toBeVisible()
+  })
+
+  test('blocks confirming a move into the folder the file already sits in', async ({
+    page,
+    ref,
+  }) => {
+    const bucketName = `${bucketNamePrefix}_same_folder`
+    const fileName = 'already-here.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'docs/seed.txt'])
+
+    await openMoveDialog(page, fileName)
+
+    // The picker opens at the bucket root, which is where the file already is
+    await expect(
+      page.getByRole('button', { name: `Move to ${bucketName}` }),
+      'Confirm button should be disabled while the destination matches the source'
+    ).toHaveAttribute('aria-disabled', 'true')
+  })
+
+  test('finds a nested folder by search and moves into it', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_search`
+    const fileName = 'needs-filing.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'reports/2024/q1/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    await dialog.getByPlaceholder(`Search folders in ${bucketName}...`).fill('q1')
+
+    // Search results name the folder and where it lives, since they span the whole bucket
+    const searchResult = folderList.getByRole('button', { name: 'q1 in reports/2024' })
+    await expect(searchResult, 'Search should surface the deeply nested folder').toBeVisible()
+    await searchResult.click()
+
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/reports/2024/q1`, { exact: true }),
+      'Picking a search result should set it as the destination'
+    ).toBeVisible()
+
+    await confirmMove(page, ref, 'q1')
+
+    await expect(
+      page.getByText(/Successfully moved/),
+      'A success toast should confirm the move'
+    ).toBeVisible()
+    await expect(
+      page.getByTitle(fileName),
+      'File should no longer sit at the bucket root'
+    ).not.toBeVisible()
+  })
+
+  test('reports when a search matches no folders', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_no_results`
+    const fileName = 'stays-put.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'docs/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    await dialog.getByPlaceholder(`Search folders in ${bucketName}...`).fill('nothing-matches-this')
+
+    await expect(
+      folderList.getByText('No folders match "nothing-matches-this"'),
+      'An empty search should say so rather than showing a blank list'
+    ).toBeVisible()
+  })
+
+  test('collapses the middle of a deep path into a breadcrumb dropdown', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_breadcrumb`
+    const fileName = 'deep-move.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'alpha/beta/gamma/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    await folderList.getByRole('button', { name: 'alpha' }).click()
+    await folderList.getByRole('button', { name: 'beta' }).click()
+    await folderList.getByRole('button', { name: 'gamma' }).click()
+
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/alpha/beta/gamma`, { exact: true }),
+      'Destination should track the folders that were opened'
+    ).toBeVisible()
+
+    // The bucket and the two deepest folders stay inline; "alpha" collapses
+    const breadcrumb = dialog.getByRole('navigation', { name: 'breadcrumb' })
+    await expect(
+      breadcrumb.getByText('beta', { exact: true }),
+      'The second-to-last folder should stay visible'
+    ).toBeVisible()
+    await expect(
+      breadcrumb.getByText('gamma', { exact: true }),
+      'The current folder should stay visible'
+    ).toBeVisible()
+    await expect(
+      breadcrumb.getByText('alpha', { exact: true }),
+      'The middle of the path should collapse out of the breadcrumb'
+    ).not.toBeVisible()
+
+    await breadcrumb.getByRole('button', { name: 'Show the folders in between' }).click()
+    await page.getByRole('menuitem', { name: 'alpha' }).click()
+
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/alpha`, { exact: true }),
+      'Choosing a collapsed folder should navigate to it'
+    ).toBeVisible()
+    await expect(
+      folderList.getByRole('button', { name: 'beta' }),
+      'Navigating back up should list the folder below it again'
+    ).toBeVisible()
+  })
+
+  test('walks back up the path with the up-one-level button', async ({ page, ref }) => {
+    const bucketName = `${bucketNamePrefix}_up_level`
+    const fileName = 'up-level.txt'
+
+    await setUpBucket(page, ref, bucketName, [fileName, 'outer/inner/seed.txt'])
+
+    const dialog = await openMoveDialog(page, fileName)
+    const folderList = dialog.getByTestId('folder-picker-list')
+
+    const upOneLevel = dialog.getByRole('button', { name: 'Go up one level' })
+    await expect(upOneLevel, 'Up-one-level should be disabled at the bucket root').toBeDisabled()
+
+    await folderList.getByRole('button', { name: 'outer' }).click()
+    await folderList.getByRole('button', { name: 'inner' }).click()
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/outer/inner`, { exact: true })
+    ).toBeVisible()
+
+    await upOneLevel.click()
+    await expect(
+      dialog.getByText(`Moving to ${bucketName}/outer`, { exact: true }),
+      'Going up one level should drop the deepest folder'
+    ).toBeVisible()
+  })
+})
diff --git a/e2e/studio/utils/storage-helpers.ts b/e2e/studio/utils/storage-helpers.ts
index 1ab31eef214..5da6e9b56c6 100644
--- a/e2e/studio/utils/storage-helpers.ts
+++ b/e2e/studio/utils/storage-helpers.ts
@@ -278,3 +278,48 @@ export const deleteAllBuckets = async (page: Page, ref: string) => {
     }
   }
 }
+
+/**
+ * Opens the move dialog for a file from its row actions menu.
+ *
+ * @param page - Playwright page instance
+ * @param fileName - Name of the file to move
+ * @returns The move dialog locator, to scope assertions to the picker
+ */
+export const openMoveDialog = async (page: Page, fileName: string) => {
+  // Opened from the row's context menu rather than its actions button: the actions button sits at
+  // the row's right edge, where a top-right toast can cover it, while a right-click targets the
+  // row's center. Both menus are built from the same options.
+  const row = page.getByTitle(fileName)
+  await expect(row, `Row for ${fileName} should be visible`).toBeVisible()
+  await row.click({ button: 'right' })
+  await page.getByRole('menuitem', { name: 'Move' }).click()
+
+  const dialog = page.getByRole('dialog')
+  await expect(dialog, 'Move dialog should be visible').toBeVisible()
+  await expect(dialog.getByText(`Move ${fileName}`), 'Dialog should name the file').toBeVisible()
+
+  return dialog
+}
+
+/**
+ * Confirms the move dialog, waiting for the move request so the assertion that follows runs
+ * against a settled explorer.
+ *
+ * @param page - Playwright page instance
+ * @param ref - Project reference
+ * @param destinationName - Folder name shown on the confirm button (the bucket name at the root)
+ */
+export const confirmMove = async (page: Page, ref: string, destinationName: string) => {
+  // The confirm button stays focusable when disabled, so it reports aria-disabled rather than
+  // the native disabled property
+  const moveButton = page.getByRole('button', { name: `Move to ${destinationName}` })
+  await expect(moveButton, `Move to ${destinationName} should be enabled`).not.toHaveAttribute(
+    'aria-disabled',
+    'true'
+  )
+
+  const movePromise = waitForApiResponse(page, 'storage', ref, 'objects/move', { method: 'POST' })
+  await moveButton.click()
+  await movePromise
+}
diff --git a/e2e/studio/utils/storage/client.ts b/e2e/studio/utils/storage/client.ts
index 208d6edfd0f..a5d4b0608c8 100644
--- a/e2e/studio/utils/storage/client.ts
+++ b/e2e/studio/utils/storage/client.ts
@@ -1,4 +1,4 @@
-import { env } from "../../env.config.js";
+import { env } from '../../env.config.js'
 
 /**
  * Make an HTTP request to the local Supabase Storage API.
@@ -10,23 +10,32 @@ import { env } from "../../env.config.js";
  */
 export async function storageRequest<T>(
   path: string,
-  options?: { method?: 'GET' | 'POST' | 'PUT' | 'DELETE'; body?: Record<string, unknown> }
+  options?: {
+    method?: 'GET' | 'POST' | 'PUT' | 'DELETE'
+    /** A JSON payload, or a string to send as a raw `text/plain` body (for object uploads) */
+    body?: Record<string, unknown> | string
+  }
 ): Promise<T> {
   const storageUrl = `${env.API_URL}/storage/v1`
-  
+
   const headers: Record<string, string> = {
     apikey: env.SERVICE_ROLE_KEY,
     Authorization: `Bearer ${env.SERVICE_ROLE_KEY}`,
   }
 
-  if (options?.body) {
-    headers['Content-Type'] = 'application/json'
+  const isRawBody = typeof options?.body === 'string'
+  if (options?.body !== undefined) {
+    headers['Content-Type'] = isRawBody ? 'text/plain' : 'application/json'
   }
 
   const response = await fetch(`${storageUrl}${path}`, {
     method: options?.method ?? 'GET',
     headers,
-    body: options?.body ? JSON.stringify(options.body) : undefined,
+    body: isRawBody
+      ? (options!.body as string)
+      : options?.body
+        ? JSON.stringify(options.body)
+        : undefined,
   })
 
   if (!response.ok) {
diff --git a/e2e/studio/utils/storage/index.ts b/e2e/studio/utils/storage/index.ts
index cffa68bfd69..8cfe7877a06 100644
--- a/e2e/studio/utils/storage/index.ts
+++ b/e2e/studio/utils/storage/index.ts
@@ -1,2 +1,9 @@
 export { storageRequest } from './client.js'
-export { createBucket, deleteBucket, deleteAllBuckets, listBuckets } from './queries.js'
+export {
+  createBucket,
+  deleteBucket,
+  deleteAllBuckets,
+  listBuckets,
+  seedBucket,
+  uploadObject,
+} from './queries.js'
diff --git a/e2e/studio/utils/storage/queries.ts b/e2e/studio/utils/storage/queries.ts
index e518b8a3381..38e6742c647 100644
--- a/e2e/studio/utils/storage/queries.ts
+++ b/e2e/studio/utils/storage/queries.ts
@@ -52,3 +52,33 @@ export async function deleteAllBuckets(): Promise<void> {
     await deleteBucket(bucket.id)
   }
 }
+
+/**
+ * Uploads an object to a bucket, creating every folder in its path along the way. Storage has no
+ * standalone folders — a folder exists because an object sits under that prefix — so this is how
+ * a folder tree gets seeded.
+ *
+ * @param bucket - Bucket name / id
+ * @param objectPath - Path within the bucket, e.g. `reports/2024/q1/seed.txt`
+ * @param content - File contents (default: a short placeholder)
+ */
+export async function uploadObject(
+  bucket: string,
+  objectPath: string,
+  content: string = 'e2e fixture'
+): Promise<void> {
+  await storageRequest(`/object/${bucket}/${objectPath}`, { method: 'POST', body: content })
+}
+
+/**
+ * Seeds a bucket with a set of object paths. Creates the bucket first when it does not exist.
+ *
+ * @param bucket - Bucket name / id
+ * @param objectPaths - Paths within the bucket to create
+ */
+export async function seedBucket(bucket: string, objectPaths: string[]): Promise<void> {
+  await createBucket(bucket, false)
+  for (const objectPath of objectPaths) {
+    await uploadObject(bucket, objectPath)
+  }
+}