diff --git a/app/__init__.py b/app/__init__.py
index f39d4eaae..cac27c73d 100644
--- a/app/__init__.py
+++ b/app/__init__.py
@@ -67,6 +67,7 @@ from app.notify_client.inbound_number_client import inbound_number_client
 from app.notify_client.billing_api_client import billing_api_client
 from app.notify_client.complaint_api_client import complaint_api_client
 from app.notify_client.platform_stats_api_client import platform_stats_api_client
+from app.notify_client.template_folder_api_client import template_folder_api_client
 from app.commands import setup_commands
 from app.utils import get_cdn_domain, gmt_timezones, id_safe
 
@@ -128,6 +129,7 @@ def create_app(application):
     billing_api_client.init_app(application)
     complaint_api_client.init_app(application)
     platform_stats_api_client.init_app(application)
+    template_folder_api_client.init_app(application)
 
     login_manager.init_app(application)
     login_manager.login_view = 'main.sign_in'
diff --git a/app/main/forms.py b/app/main/forms.py
index 5b1313c0e..eec7a5daf 100644
--- a/app/main/forms.py
+++ b/app/main/forms.py
@@ -857,21 +857,22 @@ class DateFilterForm(StripWhitespaceForm):
 class ChooseTemplateType(StripWhitespaceForm):
 
     template_type = RadioField(
-        'What kind of template do you want to add?',
+        '',
         validators=[
             DataRequired()
         ]
     )
 
-    def __init__(self, include_letters=False, include_copy=False, *args, **kwargs):
+    def __init__(self, include_letters=False, include_copy=False, include_folder=False, *args, **kwargs):
 
         super().__init__(*args, **kwargs)
 
         self.template_type.choices = filter(None, [
-            ('email', 'Email'),
-            ('sms', 'Text message'),
-            ('letter', 'Letter') if include_letters else None,
+            ('email', 'Email template'),
+            ('sms', 'Text message template'),
+            ('letter', 'Letter template') if include_letters else None,
             ('copy-existing', 'Copy of an existing template') if include_copy else None,
+            ('folder', 'Folder') if include_folder else None,
         ])
 
 
@@ -1106,3 +1107,7 @@ class ReturnedLettersForm(StripWhitespaceForm):
             DataRequired(message="Can’t be empty"),
         ]
     )
+
+
+class TemplateFolderForm(StripWhitespaceForm):
+    name = StringField('Folder name', validators=[DataRequired(message='Can’t be empty')])
diff --git a/app/main/views/conversation.py b/app/main/views/conversation.py
index 540945afb..abe71fc3a 100644
--- a/app/main/views/conversation.py
+++ b/app/main/views/conversation.py
@@ -44,7 +44,7 @@ def conversation_reply(
     service_id,
     notification_id,
 ):
-    templates = current_service.templates_by_type('sms')
+    templates = current_service.get_templates('sms')
     return render_template(
         'views/templates/choose-reply.html',
         templates=templates,
diff --git a/app/main/views/templates.py b/app/main/views/templates.py
index 849cb2e5e..b5b261a97 100644
--- a/app/main/views/templates.py
+++ b/app/main/views/templates.py
@@ -12,6 +12,7 @@ from notifications_utils.recipients import first_column_headings
 from app import (
     current_service,
     service_api_client,
+    template_folder_api_client,
     template_statistics_client,
     user_api_client,
 )
@@ -23,6 +24,7 @@ from app.main.forms import (
     SearchTemplatesForm,
     SetTemplateSenderForm,
     SMSTemplateForm,
+    TemplateFolderForm,
 )
 from app.main.views.send import get_example_csv_rows, get_sender_details
 from app.models.service import Service
@@ -98,13 +100,23 @@ def start_tour(service_id, template_id):
 
 
 @main.route("/services/<service_id>/templates")
+@main.route("/services/<service_id>/templates/folders/<template_folder_id>")
 @main.route("/services/<service_id>/templates/<template_type>")
+@main.route("/services/<service_id>/templates/<template_type>/folders/<template_folder_id>")
 @login_required
 @user_has_permissions()
-def choose_template(service_id, template_type='all'):
+def choose_template(service_id, template_type='all', template_folder_id=None):
 
     template_nav_items = [
-        (label, key, url_for('.choose_template', service_id=current_service.id, template_type=key), '')
+        (
+            label,
+            key,
+            url_for(
+                '.choose_template', service_id=current_service.id,
+                template_type=key, template_folder_id=template_folder_id
+            ),
+            ''
+        )
         for label, key in filter(None, [
             ('All', 'all'),
             ('Text message', 'sms'),
@@ -115,11 +127,14 @@ def choose_template(service_id, template_type='all'):
 
     return render_template(
         'views/templates/choose.html',
-        templates=current_service.templates_by_type(template_type),
-        show_search_box=(len(current_service.templates_by_type(template_type)) > 7),
+        current_template_folder_id=template_folder_id,
+        template_folder_path=current_service.get_template_folder_path(template_folder_id),
+        template_folders=current_service.get_template_folders(template_folder_id),
+        templates=current_service.get_templates(template_type, template_folder_id),
+        show_search_box=(len(current_service.get_templates(template_type)) > 7),
         show_template_nav=(
             current_service.has_multiple_template_types
-            and (len(current_service.templates) > 2)
+            and (len(current_service.all_templates) > 2)
         ),
         template_nav_items=template_nav_items,
         template_type=template_type,
@@ -173,9 +188,10 @@ def view_template_version_preview(service_id, template_id, version, filetype):
 
 
 @main.route("/services/<service_id>/templates/add", methods=['GET', 'POST'])
+@main.route("/services/<service_id>/templates/folders/<template_folder_id>/add", methods=['GET', 'POST'])
 @login_required
 @user_has_permissions('manage_templates')
-def add_template_by_type(service_id):
+def add_template_by_type(service_id, template_folder_id=None):
 
     form = ChooseTemplateType(
         include_letters=current_service.has_permission('letter'),
@@ -183,6 +199,7 @@ def add_template_by_type(service_id):
             service_api_client.count_service_templates(service_id) > 0,
             len(user_api_client.get_service_ids_for_user(current_user)) > 1,
         )),
+        include_folder=current_service.has_permission('edit_folders')
     )
 
     if form.validate_on_submit():
@@ -221,6 +238,7 @@ def add_template_by_type(service_id):
                 '.add_service_template',
                 service_id=service_id,
                 template_type=form.template_type.data,
+                template_folder_id=template_folder_id,
             ))
 
     return render_template('views/templates/add.html', form=form)
@@ -288,10 +306,34 @@ def action_blocked(service_id, notification_type, return_to, template_id):
     )
 
 
+@main.route("/services/<service_id>/templates/add-folder", methods=['GET', 'POST'])
+@main.route("/services/<service_id>/templates/folders/<template_folder_id>/add-folder", methods=['GET', 'POST'])
+def add_template_folder(service_id, template_folder_id=None):
+    if not current_service.has_permission('edit_folders'):
+        abort(403)
+
+    form = TemplateFolderForm()
+
+    if form.validate_on_submit():
+        template_folder_api_client.create_template_folder(
+            current_service.id, name=form.name.data, parent_id=template_folder_id
+        )
+        return redirect(
+            url_for('.choose_template', service_id=service_id, template_folder_id=template_folder_id)
+        )
+
+    return render_template(
+        'views/templates/add-template-folder.html',
+        form=form
+    )
+
+
 @main.route("/services/<service_id>/templates/add-<template_type>", methods=['GET', 'POST'])
+@main.route("/services/<service_id>/templates/folders/<template_folder_id>/add-<template_type>",
+            methods=['GET', 'POST'])
 @login_required
 @user_has_permissions('manage_templates')
-def add_service_template(service_id, template_type):
+def add_service_template(service_id, template_type, template_folder_id=None):
 
     if template_type not in ['sms', 'email', 'letter']:
         abort(404)
diff --git a/app/models/service.py b/app/models/service.py
index 6e3bb9794..097e25579 100644
--- a/app/models/service.py
+++ b/app/models/service.py
@@ -7,6 +7,9 @@ from app.notify_client.inbound_number_client import inbound_number_client
 from app.notify_client.job_api_client import job_api_client
 from app.notify_client.organisations_api_client import organisations_client
 from app.notify_client.service_api_client import service_api_client
+from app.notify_client.template_folder_api_client import (
+    template_folder_api_client,
+)
 from app.notify_client.user_api_client import user_api_client
 from app.utils import get_default_sms_sender
 
@@ -88,7 +91,7 @@ class Service():
         ) > 1
 
     @cached_property
-    def templates(self):
+    def all_templates(self):
 
         templates = service_api_client.get_service_templates(self.id)['data']
 
@@ -97,12 +100,14 @@ class Service():
             if template['template_type'] in self.available_template_types
         ]
 
-    def templates_by_type(self, template_type):
+    def get_templates(self, template_type='all', template_folder_id=None):
         if isinstance(template_type, str):
             template_type = [template_type]
+
         return [
-            template for template in self.templates
-            if set(template_type) & {'all', template['template_type']}
+            template for template in self.all_templates
+            if (set(template_type) & {'all', template['template_type']})
+            and template.get('folder_id') == template_folder_id
         ]
 
     @property
@@ -114,21 +119,21 @@ class Service():
 
     @property
     def has_templates(self):
-        return len(self.templates) > 0
+        return len(self.all_templates) > 0
 
     @property
     def has_multiple_template_types(self):
         return len({
-            template['template_type'] for template in self.templates
+            template['template_type'] for template in self.all_templates
         }) > 1
 
     @property
     def has_email_templates(self):
-        return len(self.templates_by_type('email')) > 0
+        return len(self.get_templates('email')) > 0
 
     @property
     def has_sms_templates(self):
-        return len(self.templates_by_type('sms')) > 0
+        return len(self.get_templates('sms')) > 0
 
     @cached_property
     def email_reply_to_addresses(self):
@@ -275,3 +280,28 @@ class Service():
     @property
     def has_inbound_number(self):
         return bool(self.inbound_number)
+
+    @cached_property
+    def all_template_folders(self):
+        return template_folder_api_client.get_template_folders(self.id)
+
+    def get_template_folders(self, parent_folder_id=None):
+        return [
+            folder for folder in self.all_template_folders
+            if folder['parent_id'] == parent_folder_id
+        ]
+
+    def get_template_folder_path(self, template_folder_id):
+        if template_folder_id is None:
+            return []
+
+        id_to_folder = {folder['id']: folder for folder in self.all_template_folders}
+
+        folder = id_to_folder[template_folder_id]
+        path = [folder]
+
+        while folder['parent_id']:
+            folder = id_to_folder[folder['parent_id']]
+            path.append(folder)
+
+        return list(reversed(path))
diff --git a/app/navigation.py b/app/navigation.py
index cf893c5ca..af45c74ba 100644
--- a/app/navigation.py
+++ b/app/navigation.py
@@ -109,6 +109,7 @@ class HeaderNavigation(Navigation):
         'add_service',
         'add_service_template',
         'add_template_by_type',
+        'add_template_folder',
         'agreement',
         'api_callbacks',
         'api_documentation',
@@ -299,6 +300,7 @@ class MainNavigation(Navigation):
             'action_blocked',
             'add_service_template',
             'add_template_by_type',
+            'add_template_folder',
             'check_messages',
             'check_notification',
             'choose_template',
@@ -552,6 +554,7 @@ class CaseworkNavigation(Navigation):
         'add_service',
         'add_service_template',
         'add_template_by_type',
+        'add_template_folder',
         'agreement',
         'api_callbacks',
         'api_documentation',
@@ -787,6 +790,7 @@ class OrgNavigation(Navigation):
         'add_service',
         'add_service_template',
         'add_template_by_type',
+        'add_template_folder',
         'agreement',
         'api_callbacks',
         'api_documentation',
diff --git a/app/notify_client/service_api_client.py b/app/notify_client/service_api_client.py
index 539fbbb73..78d03a563 100644
--- a/app/notify_client/service_api_client.py
+++ b/app/notify_client/service_api_client.py
@@ -1,4 +1,3 @@
-from __future__ import unicode_literals
 
 from app.notify_client import NotifyAdminAPIClient, _attach_current_user, cache
 
diff --git a/app/notify_client/template_folder_api_client.py b/app/notify_client/template_folder_api_client.py
new file mode 100644
index 000000000..c04a7bada
--- /dev/null
+++ b/app/notify_client/template_folder_api_client.py
@@ -0,0 +1,28 @@
+from app.notify_client import NotifyAdminAPIClient, cache
+
+
+class TemplateFolderAPIClient(NotifyAdminAPIClient):
+    # Fudge assert in the super __init__ so
+    # we can set those variables later.
+    def __init__(self):
+        super().__init__('a' * 73, 'b')
+
+    @cache.delete('service-{service_id}-template-folders')
+    def create_template_folder(
+        self,
+        service_id,
+        name,
+        parent_id=None
+    ):
+        data = {
+            'name': name,
+            'parent_id': parent_id
+        }
+        return self.post('/service/{}/template-folder'.format(service_id), data)['data']['id']
+
+    @cache.set('service-{service_id}-template-folders')
+    def get_template_folders(self, service_id):
+        return self.get('/service/{}/template-folder'.format(service_id))['template_folders']
+
+
+template_folder_api_client = TemplateFolderAPIClient()
diff --git a/app/templates/views/dashboard/dashboard.html b/app/templates/views/dashboard/dashboard.html
index 3ddcc0f39..e480efe95 100644
--- a/app/templates/views/dashboard/dashboard.html
+++ b/app/templates/views/dashboard/dashboard.html
@@ -15,7 +15,7 @@
   <div class="dashboard">
 
     <h1 class="visuallyhidden">Dashboard</h1>
-    {% if current_user.has_permissions('manage_templates') and not current_service.templates %}
+    {% if current_user.has_permissions('manage_templates') and not current_service.all_templates %}
       {% include 'views/dashboard/write-first-messages.html' %}
     {% endif %}
 
diff --git a/app/templates/views/service-settings/name.html b/app/templates/views/service-settings/name.html
index 33694395d..182af6fc8 100644
--- a/app/templates/views/service-settings/name.html
+++ b/app/templates/views/service-settings/name.html
@@ -1,3 +1,4 @@
+
 {% extends "withnav_template.html" %}
 {% from "components/textbox.html" import textbox %}
 {% from "components/page-footer.html" import page_footer %}
diff --git a/app/templates/views/templates/add-template-folder.html b/app/templates/views/templates/add-template-folder.html
new file mode 100644
index 000000000..81a816918
--- /dev/null
+++ b/app/templates/views/templates/add-template-folder.html
@@ -0,0 +1,20 @@
+
+{% extends "withnav_template.html" %}
+{% from "components/textbox.html" import textbox %}
+{% from "components/page-footer.html" import page_footer %}
+{% from "components/form.html" import form_wrapper %}
+
+{% block service_page_title %}
+  Add a folder
+{% endblock %}
+
+{% block maincolumn_content %}
+
+  <h1 class="heading-large">Add a folder</h1>
+
+  {% call form_wrapper() %}
+    {{ textbox(form.name) }}
+    {{ page_footer('Save') }}
+  {% endcall %}
+
+{% endblock %}
diff --git a/app/templates/views/templates/add.html b/app/templates/views/templates/add.html
index c46f73da4..923acfb63 100644
--- a/app/templates/views/templates/add.html
+++ b/app/templates/views/templates/add.html
@@ -5,12 +5,12 @@
 {% extends "withnav_template.html" %}
 
 {% block service_page_title %}
-  Add new template
+  Add new template or folder
 {% endblock %}
 
 {% block maincolumn_content %}
 
-    <h1 class="heading-large">Add new template</h1>
+    <h1 class="heading-large">What do you want to add?</h1>
 
     {% call form_wrapper() %}
       {{ radios(form.template_type) }}
diff --git a/app/templates/views/templates/choose.html b/app/templates/views/templates/choose.html
index e69ac226a..dfff6b425 100644
--- a/app/templates/views/templates/choose.html
+++ b/app/templates/views/templates/choose.html
@@ -9,13 +9,18 @@
 
 {% block service_page_title %}
   {{ page_title }}
+  {% for folder in template_folder_path %}
+    / {{ folder.name }}
+  {% endfor %}
 {% endblock %}
 
 {% block maincolumn_content %}
 
-  {% if not templates %}
+  {% if (not templates) and (not template_folder_path) %}
 
-    <h1 class="heading-large">{{ page_title }}</h1>
+    <h1 class="heading-large">
+      {{ page_title }}
+    </h1>
     {% if current_user.has_permissions('manage_templates') %}
        <p class="bottom-gutter">
          You need a template before you can send
@@ -41,11 +46,25 @@
 
     <div class="grid-row bottom-gutter-2-3">
       <div class="column-two-thirds">
-        <h1 class="heading-large">{{ page_title }}</h1>
+        <h1 class="heading-large">
+          {% if template_folder_path %}
+            <a href="{{ url_for('.choose_template', service_id=current_service.id, template_type=template_type) }}">{{ page_title }}</a>
+          {% else %}
+            {{ page_title }}
+          {% endif %}
+          {% for folder in template_folder_path %}
+            /
+            {% if loop.last %}
+              {{ folder.name }}
+            {% else %}
+              <a href="{{ url_for('.choose_template', service_id=current_service.id, template_type=template_type, template_folder_id=folder.id) }}">{{ folder.name }}</a>
+            {% endif %}
+          {% endfor %}
+        </h1>
       </div>
       {% if current_user.has_permissions('manage_templates') %}
         <div class="column-one-third">
-          <a href="{{ url_for('.add_template_by_type', service_id=current_service.id) }}" class="button align-with-heading">Add new template</a>
+          <a href="{{ url_for('.add_template_by_type', service_id=current_service.id, template_folder_id=current_template_folder_id) }}" class="button align-with-heading">Add new template</a>
         </div>
       {% endif %}
     </div>
@@ -59,6 +78,16 @@
     {{ live_search(target_selector='#template-list .column-whole', show=show_search_box, form=search_form) }}
 
     <nav class="grid-row" id=template-list>
+      {% for template_folder in template_folders %}
+        <div class="column-whole">
+          <h2 class="message-name">
+            <a href="{{ url_for('.choose_template', service_id=current_service.id, template_type=template_type, template_folder_id=template_folder.id) }}">
+              {{ template_folder.name }}
+            </a>
+          </h2>
+          <p class="message-type">Folder containing {{ template_count }} template{% if template_count != 1 %}s{% endif %}</p>
+        </div>
+      {% endfor %}
       {% for template in templates %}
         <div class="column-whole">
           <h2 class="message-name">
diff --git a/app/templates/views/templates/copy.html b/app/templates/views/templates/copy.html
index 94d765f05..404e93db4 100644
--- a/app/templates/views/templates/copy.html
+++ b/app/templates/views/templates/copy.html
@@ -13,7 +13,7 @@
     </div>
     <nav>
       {% for service in services %}
-        {% set templates = service.templates_by_type(current_service.permissions) %}
+        {% set templates = service.get_templates(current_service.permissions) %}
         {% if templates and services|length > 1 %}
           <h2 class="">
             {{ service.name }}
diff --git a/tests/app/main/views/test_accept_invite.py b/tests/app/main/views/test_accept_invite.py
index 6f22eabdb..3a4725f0d 100644
--- a/tests/app/main/views/test_accept_invite.py
+++ b/tests/app/main/views/test_accept_invite.py
@@ -139,6 +139,7 @@ def test_accepting_invite_removes_invite_from_session(
     mock_get_template_statistics,
     mock_get_jobs,
     mock_get_service_statistics,
+    mock_get_template_folders,
     mock_get_usage,
     mock_get_inbound_sms_summary,
     fake_uuid,
@@ -157,7 +158,7 @@ def test_accepting_invite_removes_invite_from_session(
         token='thisisnotarealtoken',
         _follow_redirects=True,
     )
-    assert page.h1.string == landing_page_title
+    assert normalize_spaces(page.h1.string) == landing_page_title
 
     with client_request.session_transaction() as session:
         assert 'invited_user' not in session
diff --git a/tests/app/main/views/test_letters.py b/tests/app/main/views/test_letters.py
index 09597c427..8c861eea2 100644
--- a/tests/app/main/views/test_letters.py
+++ b/tests/app/main/views/test_letters.py
@@ -56,11 +56,11 @@ def test_letters_lets_in_without_permission(
 @pytest.mark.parametrize('permissions, choices', [
     (
         ['email', 'sms', 'letter'],
-        ['Email', 'Text message', 'Letter', 'Copy of an existing template']
+        ['Email template', 'Text message template', 'Letter template', 'Copy of an existing template']
     ),
     (
         ['email', 'sms'],
-        ['Email', 'Text message', 'Copy of an existing template']
+        ['Email template', 'Text message template', 'Copy of an existing template']
     ),
 ])
 def test_given_option_to_add_letters_if_allowed(
diff --git a/tests/app/main/views/test_send.py b/tests/app/main/views/test_send.py
index 7a6e2f502..be9fef204 100644
--- a/tests/app/main/views/test_send.py
+++ b/tests/app/main/views/test_send.py
@@ -2186,7 +2186,6 @@ def test_dont_show_preview_letter_templates_for_bad_filetype(
 
 
 @pytest.mark.parametrize('route, response_code', [
-    ('main.choose_template', 200),
     ('main.send_messages', 200),
     ('main.get_example_csv', 200),
     ('main.send_test', 302)
@@ -2259,7 +2258,6 @@ def test_route_permissions_send_check_notifications(
 
 
 @pytest.mark.parametrize('route, expected_status', [
-    ('main.choose_template', 200),
     ('main.send_messages', 403),
     ('main.get_example_csv', 403),
     ('main.send_test', 403),
diff --git a/tests/app/main/views/test_service_settings.py b/tests/app/main/views/test_service_settings.py
index 259eb0a70..61a1239a0 100644
--- a/tests/app/main/views/test_service_settings.py
+++ b/tests/app/main/views/test_service_settings.py
@@ -563,13 +563,13 @@ def test_should_show_request_to_go_live_checklist(
     )
 
     mock_templates = mocker.patch(
-        'app.models.service.Service.templates',
+        'app.models.service.Service.all_templates',
         new_callable=PropertyMock,
         return_value=list(range(0, count_of_templates)),
     )
 
-    mock_templates_by_type = mocker.patch(
-        'app.models.service.Service.templates_by_type',
+    mock_get_templates = mocker.patch(
+        'app.models.service.Service.get_templates',
         side_effect=_templates_by_type,
     )
 
@@ -598,7 +598,7 @@ def test_should_show_request_to_go_live_checklist(
     assert mock_templates.call_args_list == [
         call(),
     ]
-    assert mock_templates_by_type.call_args_list == [
+    assert mock_get_templates.call_args_list == [
         call('email'),
         call('sms'),
     ]
@@ -683,12 +683,12 @@ def test_should_check_for_sms_sender_on_go_live(
         return_value=99,
     )
     mock_templates = mocker.patch(
-        'app.models.service.Service.templates',
+        'app.models.service.Service.all_templates',
         new_callable=PropertyMock,
         side_effect=partial(_templates_by_type, 'all'),
     )
-    mock_templates_by_type = mocker.patch(
-        'app.models.service.Service.templates_by_type',
+    mock_get_templates = mocker.patch(
+        'app.models.service.Service.get_templates',
         side_effect=_templates_by_type,
     )
 
@@ -712,7 +712,7 @@ def test_should_check_for_sms_sender_on_go_live(
     assert mock_templates.call_args_list == [
         call(),
     ]
-    assert mock_templates_by_type.call_args_list == [
+    assert mock_get_templates.call_args_list == [
         call('email'),
         call('sms'),
     ]
@@ -747,7 +747,7 @@ def test_should_check_for_mou_on_request_to_go_live(
         return_value=0,
     )
     mocker.patch(
-        'app.models.service.Service.templates',
+        'app.models.service.Service.all_templates',
         new_callable=PropertyMock,
         return_value=[],
     )
diff --git a/tests/app/main/views/test_template_folders.py b/tests/app/main/views/test_template_folders.py
new file mode 100644
index 000000000..2e6479d0d
--- /dev/null
+++ b/tests/app/main/views/test_template_folders.py
@@ -0,0 +1,166 @@
+import uuid
+
+import pytest
+from flask import url_for
+
+from tests.conftest import SERVICE_ONE_ID, normalize_spaces
+
+PARENT_FOLDER_ID = '7e979e79-d970-43a5-ac69-b625a8d147b0'
+CHILD_FOLDER_ID = '92ee1ee0-e4ee-4dcc-b1a7-a5da9ebcfa2b'
+
+
+@pytest.mark.parametrize('parent_folder_id', [None, PARENT_FOLDER_ID])
+def test_add_page_shows_option_for_folder(
+    client_request,
+    service_one,
+    parent_folder_id,
+    mocker,
+    mock_get_service_templates,
+    mock_get_organisations_and_services_for_user,
+):
+    service_one['permissions'] += ['edit_folders']
+    mocker.patch('app.service_api_client.get_service', return_value={"data": service_one})
+
+    page = client_request.get(
+        'main.add_template_by_type',
+        service_id=service_one['id'],
+        template_folder_id=parent_folder_id,
+        _test_page_title=False
+    )
+
+    radios = page.select('input[type=radio]')
+    labels = page.select('label')
+
+    assert [x['value'] for x in radios] == ['email', 'sms', 'copy-existing', 'folder']
+    assert [x.text.strip() for x in labels] == [
+        'Email template',
+        'Text message template',
+        'Copy of an existing template',
+        'Folder'
+    ]
+
+
+@pytest.mark.parametrize('parent_folder_id', [None, PARENT_FOLDER_ID])
+def test_get_add_template_folder_page(client_request, service_one, parent_folder_id):
+    service_one['permissions'] += ['edit_folders']
+
+    page = client_request.get(
+        'main.add_template_folder',
+        service_id=service_one['id'],
+        template_folder_id=parent_folder_id
+    )
+
+    assert page.select_one('input[name=name]') is not None
+
+
+def test_add_template_folder_page_rejects_if_service_doesnt_have_permission(client_request, service_one):
+    client_request.get('main.add_template_folder', service_id=service_one['id'], _expected_status=403)
+    client_request.post('main.add_template_folder', service_id=service_one['id'], _expected_status=403)
+
+
+@pytest.mark.parametrize('parent_folder_id', [None, PARENT_FOLDER_ID])
+def test_post_add_template_folder_page(client_request, service_one, mocker, parent_folder_id):
+    mock_create = mocker.patch('app.template_folder_api_client.create_template_folder')
+
+    service_one['permissions'] += ['edit_folders']
+
+    client_request.post(
+        'main.add_template_folder',
+        service_id=service_one['id'],
+        template_folder_id=parent_folder_id,
+        _data={'name': 'foo'},
+        _expected_redirect=url_for(
+            'main.choose_template',
+            service_id=service_one['id'],
+            template_folder_id=parent_folder_id,
+            _external=True,
+        )
+    )
+
+    mock_create.assert_called_once_with(service_one['id'], name='foo', parent_id=parent_folder_id)
+
+
+@pytest.mark.parametrize(
+    'expected_page_title, extra_args, expected_nav_links, expected_links',
+    [
+        (
+            'Templates',
+            {},
+            ['Text message', 'Email', 'Letter'],
+            [
+                'folder_one',
+                'folder_two',
+                'sms_template_one',
+                'sms_template_two',
+                'email_template_one',
+                'email_template_two',
+                'letter_template_one',
+                'letter_template_two',
+            ]
+        ),
+        (
+            'Templates',
+            {'template_type': 'sms'},
+            ['All', 'Email', 'Letter'],
+            ['folder_one', 'folder_two', 'sms_template_one', 'sms_template_two'],
+        ),
+        (
+            'Templates / folder_one',
+            {'template_type': 'sms', 'template_folder_id': PARENT_FOLDER_ID},
+            ['All', 'Email', 'Letter'],
+            ['folder_one_one', 'folder_one_two'],
+        ),
+        (
+            'Templates / folder_one / folder_one_one',
+            {'template_folder_id': CHILD_FOLDER_ID},
+            ['Text message', 'Email', 'Letter'],
+            [],
+        ),
+    ]
+)
+def test_should_show_templates_folder_page(
+    client_request,
+    mock_get_service_templates,
+    mock_get_template_folders,
+    mock_has_no_jobs,
+    service_one,
+    mocker,
+    fake_uuid,
+    expected_page_title,
+    extra_args,
+    expected_nav_links,
+    expected_links,
+):
+
+    mock_get_template_folders.return_value = [
+        {'id': PARENT_FOLDER_ID, 'name': 'folder_one', 'parent_id': None},
+        {'id': str(uuid.uuid4()), 'name': 'folder_two', 'parent_id': None},
+        {'id': CHILD_FOLDER_ID, 'name': 'folder_one_one', 'parent_id': PARENT_FOLDER_ID},
+        {'id': str(uuid.uuid4()), 'name': 'folder_one_two', 'parent_id': PARENT_FOLDER_ID},
+    ]
+
+    service_one['permissions'] += ['letter', 'edit_folders']
+
+    page = client_request.get(
+        'main.choose_template',
+        service_id=SERVICE_ONE_ID,
+        **extra_args
+    )
+
+    assert normalize_spaces(page.select_one('h1').text) == expected_page_title
+
+    links_in_page = page.select('.pill a')
+
+    assert len(links_in_page) == len(expected_nav_links)
+
+    for index, expected_link in enumerate(expected_nav_links):
+        assert links_in_page[index].text.strip() == expected_link
+
+    page_links = page.select('.message-name a')
+
+    assert len(page_links) == len(expected_links)
+
+    for index, expected_link in enumerate(expected_links):
+        assert page_links[index].text.strip() == expected_link
+
+    mock_get_service_templates.assert_called_once_with(SERVICE_ONE_ID)
diff --git a/tests/app/main/views/test_templates.py b/tests/app/main/views/test_templates.py
index 6aaebb32b..33bcb3cac 100644
--- a/tests/app/main/views/test_templates.py
+++ b/tests/app/main/views/test_templates.py
@@ -96,6 +96,7 @@ from tests.conftest import single_letter_contact_block
 def test_should_show_page_for_choosing_a_template(
     client_request,
     mock_get_service_templates,
+    mock_get_template_folders,
     mock_has_no_jobs,
     extra_args,
     expected_nav_links,
@@ -136,6 +137,7 @@ def test_should_show_page_for_choosing_a_template(
 
 def test_should_not_show_template_nav_if_only_one_type_of_template(
     client_request,
+    mock_get_template_folders,
     mock_get_service_templates_with_only_one_template,
 ):
 
@@ -149,6 +151,7 @@ def test_should_not_show_template_nav_if_only_one_type_of_template(
 
 def test_should_not_show_live_search_if_list_of_templates_fits_onscreen(
     client_request,
+    mock_get_template_folders,
     mock_get_service_templates
 ):
 
@@ -162,6 +165,7 @@ def test_should_not_show_live_search_if_list_of_templates_fits_onscreen(
 
 def test_should_show_live_search_if_list_of_templates_taller_than_screen(
     client_request,
+    mock_get_template_folders,
     mock_get_more_service_templates_than_can_fit_onscreen
 ):
 
@@ -1213,6 +1217,7 @@ def test_route_permissions_for_choose_template(
     app_,
     client,
     api_user_active,
+    mock_get_template_folders,
     service_one,
     mock_get_service_templates,
 ):
diff --git a/tests/app/notify_client/test_template_folder_client.py b/tests/app/notify_client/test_template_folder_client.py
new file mode 100644
index 000000000..58b7cd60e
--- /dev/null
+++ b/tests/app/notify_client/test_template_folder_client.py
@@ -0,0 +1,46 @@
+import uuid
+
+import pytest
+
+from app.notify_client.template_folder_api_client import TemplateFolderAPIClient
+
+
+@pytest.mark.parametrize('parent_id', [uuid.uuid4(), None])
+def test_create_template_folder_calls_correct_api_endpoint(mocker, api_user_active, parent_id):
+    mock_redis_delete = mocker.patch('app.notify_client.RedisClient.delete')
+
+    some_service_id = uuid.uuid4()
+    expected_url = '/service/{}/template-folder'.format(some_service_id)
+    data = {'name': 'foo', 'parent_id': parent_id}
+
+    client = TemplateFolderAPIClient()
+
+    mock_post = mocker.patch('app.notify_client.template_folder_api_client.TemplateFolderAPIClient.post')
+
+    client.create_template_folder(some_service_id, name='foo', parent_id=parent_id)
+
+    mock_post.assert_called_once_with(expected_url, data)
+    mock_redis_delete.assert_called_once_with('service-{}-template-folders'.format(some_service_id))
+
+
+def test_get_template_folders_calls_correct_api_endpoint(mocker, api_user_active):
+    mock_redis_get = mocker.patch('app.notify_client.RedisClient.get', return_value=None)
+    mock_redis_set = mocker.patch('app.notify_client.RedisClient.set')
+    mock_api_get = mocker.patch(
+        'app.notify_client.NotifyAdminAPIClient.get',
+        return_value={'template_folders': {'a': 'b'}}
+    )
+
+    some_service_id = uuid.uuid4()
+    expected_url = '/service/{}/template-folder'.format(some_service_id)
+    redis_key = 'service-{}-template-folders'.format(some_service_id)
+
+    client = TemplateFolderAPIClient()
+
+    ret = client.get_template_folders(some_service_id)
+
+    assert ret == {'a': 'b'}
+
+    mock_redis_get.assert_called_once_with(redis_key)
+    mock_api_get.assert_called_once_with(expected_url)
+    mock_redis_set.assert_called_once_with(redis_key, '{"a": "b"}', ex=604800)
diff --git a/tests/app/test_navigation.py b/tests/app/test_navigation.py
index 2187f4f2c..fb2cd82cd 100644
--- a/tests/app/test_navigation.py
+++ b/tests/app/test_navigation.py
@@ -104,6 +104,7 @@ def test_a_page_should_nave_selected_navigation_item(
     mock_get_service_templates,
     mock_get_users_by_service,
     mock_get_invites_for_service,
+    mock_get_template_folders,
     endpoint,
     selected_nav_item,
 ):
@@ -151,6 +152,7 @@ def test_caseworkers_get_caseworking_navigation(
     client_request,
     mocker,
     fake_uuid,
+    mock_get_template_folders,
     mock_get_service_templates,
     mock_has_no_jobs,
 ):
@@ -169,6 +171,7 @@ def test_caseworkers_see_jobs_nav_if_jobs_exist(
     mocker,
     fake_uuid,
     mock_get_service_templates,
+    mock_get_template_folders,
     mock_has_jobs,
 ):
     mocker.patch(
diff --git a/tests/conftest.py b/tests/conftest.py
index 4517203f9..3574c50f1 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -3237,3 +3237,8 @@ def mock_create_event(mocker):
 def url_for_endpoint_with_token(endpoint, token):
     token = token.replace('%2E', '.')
     return url_for(endpoint, token=token)
+
+
+@pytest.fixture
+def mock_get_template_folders(mocker):
+    return mocker.patch('app.template_folder_api_client.get_template_folders', return_value=[])