diff --git a/res/layout/user_folder.xml b/res/layout/user_folder.xml
index 50bd89699d..da2a861d8d 100644
--- a/res/layout/user_folder.xml
+++ b/res/layout/user_folder.xml
@@ -26,9 +26,9 @@
         android:id="@+id/folder_content"
         android:layout_width="match_parent"
         android:layout_height="match_parent"
-        android:paddingLeft="4dp"
-        android:paddingRight="4dp"
-        android:paddingTop="4dp"
+        android:paddingLeft="8dp"
+        android:paddingRight="8dp"
+        android:paddingTop="6dp"
         launcher:pageIndicator="@+id/folder_page_indicator" />
 
     <LinearLayout
@@ -51,8 +51,8 @@
             android:gravity="center_horizontal"
             android:hint="@string/folder_hint_text"
             android:imeOptions="flagNoExtractUi"
-            android:paddingBottom="@dimen/folder_label_padding"
-            android:paddingTop="@dimen/folder_label_padding"
+            android:paddingBottom="@dimen/folder_label_padding_bottom"
+            android:paddingTop="@dimen/folder_label_padding_top"
             android:singleLine="true"
             android:textColor="#ff777777"
             android:includeFontPadding="false"
diff --git a/res/layout/user_folder_icon_normalized.xml b/res/layout/user_folder_icon_normalized.xml
index 16e618a80f..a8af201490 100644
--- a/res/layout/user_folder_icon_normalized.xml
+++ b/res/layout/user_folder_icon_normalized.xml
@@ -26,9 +26,9 @@
         android:id="@+id/folder_content"
         android:layout_width="match_parent"
         android:layout_height="match_parent"
-        android:paddingLeft="4dp"
-        android:paddingRight="4dp"
-        android:paddingTop="4dp"
+        android:paddingLeft="8dp"
+        android:paddingRight="8dp"
+        android:paddingTop="6dp"
         launcher:pageIndicator="@+id/folder_page_indicator" />
 
     <LinearLayout
@@ -52,8 +52,8 @@
             android:gravity="center_horizontal"
             android:hint="@string/folder_hint_text"
             android:imeOptions="flagNoExtractUi"
-            android:paddingBottom="@dimen/folder_label_padding"
-            android:paddingTop="@dimen/folder_label_padding"
+            android:paddingBottom="@dimen/folder_label_padding_bottom"
+            android:paddingTop="@dimen/folder_label_padding_top"
             android:singleLine="true"
             android:textColor="#EE777777"
             android:textColorHighlight="#ffCCCCCC"
diff --git a/res/values/dimens.xml b/res/values/dimens.xml
index c112949ba2..eff9d21e6c 100644
--- a/res/values/dimens.xml
+++ b/res/values/dimens.xml
@@ -138,9 +138,10 @@
     <dimen name="page_indicator_dot_size">8dp</dimen>
 
     <dimen name="folder_cell_x_padding">9dp</dimen>
-    <dimen name="folder_cell_y_padding">8dp</dimen>
+    <dimen name="folder_cell_y_padding">6dp</dimen>
     <dimen name="folder_child_text_size">13sp</dimen>
-    <dimen name="folder_label_padding">12dp</dimen>
+    <dimen name="folder_label_padding_top">4dp</dimen>
+    <dimen name="folder_label_padding_bottom">12dp</dimen>
     <dimen name="folder_label_text_size">14sp</dimen>
 
 <!-- Sizes for managed profile badges -->
diff --git a/src/com/android/launcher3/DeviceProfile.java b/src/com/android/launcher3/DeviceProfile.java
index c4e6ed119b..f9f8e80ca6 100644
--- a/src/com/android/launcher3/DeviceProfile.java
+++ b/src/com/android/launcher3/DeviceProfile.java
@@ -284,7 +284,8 @@ public class DeviceProfile {
                 Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_child_text_size));
 
         final int folderBottomPanelSize =
-                2 * res.getDimensionPixelSize(R.dimen.folder_label_padding)
+                res.getDimensionPixelSize(R.dimen.folder_label_padding_top)
+                 + res.getDimensionPixelSize(R.dimen.folder_label_padding_bottom)
                 + Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_label_text_size));
 
         // Don't let the folder get too close to the edges of the screen.