The folder visualization feature adds visual boxes around nodes that belong to the same folder, helping you understand the organizational structure of your vault within the graph view.

• Boxes automatically resize and move to encompass all nodes from their corresponding folder
• Nodes can freely move regardless of folder boundaries
• Multiple nodes can occupy the same space in the graph, regardless of their folder structure
• Folder visualization is purely visual and does not affect node placement or filtering

Please see the Tags settings as they are mostly very similar.

If you don't want the full path to be displayed, you can enable this feature that will show only the basename (last folder).

⌛ In Beta, the CSS bridge feature gives you some control over the appearance of the folder areas.