diff --git a/src/forms/components/FormFolderSelector.test.tsx b/src/forms/components/FormFolderSelector.test.tsx
new file mode 100644
index 00000000..d4888811
--- /dev/null
+++ b/src/forms/components/FormFolderSelector.test.tsx
@@ -0,0 +1,87 @@
+import React from "react"
+import { afterEach, beforeEach, describe, expect, test, vi } from "vitest"
+import { cleanup, fireEvent, render, screen, waitFor } from "@testing-library/react"
+
+const saveMeta = vi.fn()
+const createFolderFn = vi.fn()
+const toastError = vi.fn()
+let folders = [
+  { id: 1, name: "Surveys" },
+  { id: 2, name: "Experiments" },
+]
+const refetch = vi.fn(async () => undefined)
+
+vi.mock("@blitzjs/rpc", () => ({
+  useQuery: () => [folders, { refetch }],
+  // the first useMutation in the component is updateFormMeta, the second createFolder
+  useMutation: (mutation: { name?: string }) => [
+    (...args: unknown[]) =>
+      mutation.name === "createFolder" ? createFolderFn(...args) : saveMeta(...args),
+  ],
+}))
+vi.mock("src/folders/queries/getFolders", () => ({ default: {} }))
+vi.mock("src/folders/mutations/createFolder", () => ({ default: { name: "createFolder" } }))
+vi.mock("src/forms/mutations/updateFormMeta", () => ({ default: { name: "updateFormMeta" } }))
+vi.mock("react-hot-toast", () => ({ default: { error: (...a: unknown[]) => toastError(...a) } }))
+
+import FormFolderSelector from "./FormFolderSelector"
+
+const dropdown = () => screen.getByRole("combobox") as HTMLSelectElement
+
+describe("FormFolderSelector", () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+    saveMeta.mockResolvedValue({})
+  })
+  afterEach(cleanup)
+
+  test("shows the folder the form is in", () => {
+    render(<FormFolderSelector formId={5} currentFolderId={2} />)
+    expect(dropdown().value).toBe("2")
+  })
+
+  test("keeps showing the folder you chose, even though the page never passes the new one back", async () => {
+    render(<FormFolderSelector formId={5} currentFolderId={null} />)
+    fireEvent.change(dropdown(), { target: { value: "2" } })
+
+    await waitFor(() => expect(saveMeta).toHaveBeenCalledWith({ id: 5, folderId: 2 }))
+    expect(dropdown().value).toBe("2")
+  })
+
+  test("choosing No folder is shown and saved as no folder", async () => {
+    render(<FormFolderSelector formId={5} currentFolderId={1} />)
+    fireEvent.change(dropdown(), { target: { value: "" } })
+
+    await waitFor(() => expect(saveMeta).toHaveBeenCalledWith({ id: 5, folderId: null }))
+    expect(dropdown().value).toBe("")
+  })
+
+  test("goes back to the previous folder and says so if saving fails", async () => {
+    saveMeta.mockRejectedValue(new Error("offline"))
+    render(<FormFolderSelector formId={5} currentFolderId={1} />)
+    fireEvent.change(dropdown(), { target: { value: "2" } })
+
+    await waitFor(() => expect(toastError).toHaveBeenCalled())
+    expect(dropdown().value).toBe("1")
+  })
+
+  test("follows the page if it does pass a different folder later", () => {
+    const { rerender } = render(<FormFolderSelector formId={5} currentFolderId={1} />)
+    rerender(<FormFolderSelector formId={5} currentFolderId={2} />)
+    expect(dropdown().value).toBe("2")
+  })
+
+  test("a newly created folder is selected", async () => {
+    createFolderFn.mockImplementation(async () => {
+      folders = [...folders, { id: 3, name: "New one" }]
+      return { id: 3, name: "New one" }
+    })
+    render(<FormFolderSelector formId={5} currentFolderId={null} />)
+    fireEvent.click(screen.getByText("+ New folder"))
+    fireEvent.change(screen.getByPlaceholderText("Folder name"), { target: { value: "New one" } })
+    fireEvent.click(screen.getByText("Create"))
+
+    await waitFor(() => expect(saveMeta).toHaveBeenCalledWith({ id: 5, folderId: 3 }))
+    await waitFor(() => expect(dropdown().value).toBe("3"))
+  })
+})
diff --git a/src/forms/components/FormFolderSelector.tsx b/src/forms/components/FormFolderSelector.tsx
index 5fe86d28..1ad7a5a7 100644
--- a/src/forms/components/FormFolderSelector.tsx
+++ b/src/forms/components/FormFolderSelector.tsx
@@ -1,5 +1,6 @@
-import { useState } from "react"
+import { useEffect, useState } from "react"
 import { useQuery, useMutation } from "@blitzjs/rpc"
+import toast from "react-hot-toast"
 import getFolders from "src/folders/queries/getFolders"
 import createFolder from "src/folders/mutations/createFolder"
 import updateFormMeta from "src/forms/mutations/updateFormMeta"
@@ -16,18 +17,35 @@ export default function FormFolderSelector({ formId, currentFolderId, onUpdate }
   const [createFolderMutation] = useMutation(createFolder)
   const [newFolderName, setNewFolderName] = useState("")
   const [showNewFolder, setShowNewFolder] = useState(false)
+  // The dropdown shows its own selection. The page only tells us the folder the form had when it
+  // loaded and doesn't pass it back after a change, so reading the value from the prop alone
+  // snapped the dropdown back to the old folder even though the change had been saved.
+  const [selectedFolderId, setSelectedFolderId] = useState<number | null>(currentFolderId)
+
+  useEffect(() => {
+    setSelectedFolderId(currentFolderId)
+  }, [currentFolderId])
 
   const handleChange = async (e: React.ChangeEvent<HTMLSelectElement>) => {
     const val = e.target.value
     const folderId = val === "" ? null : parseInt(val, 10)
-    await updateMeta({ id: formId, folderId })
-    onUpdate?.(folderId)
+    const previous = selectedFolderId
+    setSelectedFolderId(folderId)
+    try {
+      await updateMeta({ id: formId, folderId })
+      onUpdate?.(folderId)
+    } catch (error) {
+      // not saved, so don't pretend it was
+      setSelectedFolderId(previous)
+      toast.error("The folder could not be saved. Please try again.")
+    }
   }
 
   const handleCreateFolder = async () => {
     if (!newFolderName.trim()) return
     const folder = await createFolderMutation({ name: newFolderName.trim() })
     await updateMeta({ id: formId, folderId: folder.id })
+    setSelectedFolderId(folder.id)
     setNewFolderName("")
     setShowNewFolder(false)
     await refetch()
@@ -38,7 +56,7 @@ export default function FormFolderSelector({ formId, currentFolderId, onUpdate }
     <div className="flex flex-col gap-2">
       <select
         className="select text-base text-primary select-primary select-bordered border-2 bg-base-300 w-1/2 focus:outline-secondary focus:outline-offset-0 focus:outline-width-3"
-        value={currentFolderId ?? ""}
+        value={selectedFolderId ?? ""}
         onChange={handleChange}
       >
         <option value="">No folder</option>