diff --git a/res/layout/user_folder.xml b/res/layout/user_folder.xml
index d95075058a..50bd89699d 100644
--- a/res/layout/user_folder.xml
+++ b/res/layout/user_folder.xml
@@ -28,7 +28,7 @@
         android:layout_height="match_parent"
         android:paddingLeft="4dp"
         android:paddingRight="4dp"
-        android:paddingTop="8dp"
+        android:paddingTop="4dp"
         launcher:pageIndicator="@+id/folder_page_indicator" />
 
     <LinearLayout
@@ -37,8 +37,8 @@
         android:layout_height="wrap_content"
         android:clipChildren="false"
         android:orientation="horizontal"
-        android:paddingLeft="8dp"
-        android:paddingRight="8dp" >
+        android:paddingLeft="12dp"
+        android:paddingRight="12dp" >
 
         <com.android.launcher3.ExtendedEditText
             android:id="@+id/folder_name"
@@ -51,13 +51,14 @@
             android:gravity="center_horizontal"
             android:hint="@string/folder_hint_text"
             android:imeOptions="flagNoExtractUi"
-            android:paddingBottom="8dp"
-            android:paddingTop="4dp"
+            android:paddingBottom="@dimen/folder_label_padding"
+            android:paddingTop="@dimen/folder_label_padding"
             android:singleLine="true"
             android:textColor="#ff777777"
+            android:includeFontPadding="false"
             android:textColorHighlight="#ffCCCCCC"
             android:textColorHint="#ff808080"
-            android:textSize="14sp" />
+            android:textSize="@dimen/folder_label_text_size" />
 
         <com.android.launcher3.pageindicators.PageIndicatorDots
             android:id="@+id/folder_page_indicator"
diff --git a/res/layout/user_folder_icon_normalized.xml b/res/layout/user_folder_icon_normalized.xml
index bb6bd765be..16e618a80f 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="8dp"
-        android:paddingRight="8dp"
-        android:paddingTop="8dp"
+        android:paddingLeft="4dp"
+        android:paddingRight="4dp"
+        android:paddingTop="4dp"
         launcher:pageIndicator="@+id/folder_page_indicator" />
 
     <LinearLayout
@@ -37,8 +37,8 @@
         android:layout_height="wrap_content"
         android:clipChildren="false"
         android:orientation="horizontal"
-        android:paddingLeft="8dp"
-        android:paddingRight="8dp" >
+        android:paddingLeft="12dp"
+        android:paddingRight="12dp" >
 
         <com.android.launcher3.ExtendedEditText
             android:id="@+id/folder_name"
@@ -52,13 +52,13 @@
             android:gravity="center_horizontal"
             android:hint="@string/folder_hint_text"
             android:imeOptions="flagNoExtractUi"
-            android:paddingBottom="12dp"
-            android:paddingTop="4dp"
+            android:paddingBottom="@dimen/folder_label_padding"
+            android:paddingTop="@dimen/folder_label_padding"
             android:singleLine="true"
             android:textColor="#EE777777"
             android:textColorHighlight="#ffCCCCCC"
             android:textColorHint="#ff808080"
-            android:textSize="14sp" />
+            android:textSize="@dimen/folder_label_text_size" />
 
         <com.android.launcher3.pageindicators.PageIndicatorDots
             android:id="@+id/folder_page_indicator"
diff --git a/res/values/attrs.xml b/res/values/attrs.xml
index 3cfaf02d08..3423835a95 100644
--- a/res/values/attrs.xml
+++ b/res/values/attrs.xml
@@ -25,7 +25,8 @@
         <attr name="iconDisplay" format="integer">
             <enum name="workspace" value="0" />
             <enum name="all_apps" value="1" />
-            <enum name="widget_section" value="2" />
+            <enum name="folder" value="2" />
+            <enum name="widget_section" value="3" />
         </attr>
         <attr name="deferShadowGeneration" format="boolean" />
         <attr name="customShadows" format="boolean" />
diff --git a/res/values/dimens.xml b/res/values/dimens.xml
index 1ae4685574..33466a813a 100644
--- a/res/values/dimens.xml
+++ b/res/values/dimens.xml
@@ -137,6 +137,12 @@
     <dimen name="folder_preview_padding">6dp</dimen>
     <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_child_text_size">13sp</dimen>
+    <dimen name="folder_label_padding">12dp</dimen>
+    <dimen name="folder_label_text_size">14sp</dimen>
+
 <!-- Sizes for managed profile badges -->
     <dimen name="profile_badge_size">24dp</dimen>
     <dimen name="profile_badge_margin">5dp</dimen>
diff --git a/res/values/styles.xml b/res/values/styles.xml
index f0297654b2..ecc11b0ee8 100644
--- a/res/values/styles.xml
+++ b/res/values/styles.xml
@@ -74,7 +74,11 @@
         <item name="android:background">@null</item>
         <item name="android:textColor">@color/quantum_panel_text_color</item>
         <item name="android:shadowRadius">0</item>
+        <item name="android:textSize">@dimen/folder_child_text_size</item>
+        <item name="android:gravity">center</item>
+        <item name="android:includeFontPadding">false</item>
         <item name="customShadows">false</item>
+        <item name="iconDisplay">folder</item>
     </style>
 
     <style name="Icon.DeepShortcut">
diff --git a/src/com/android/launcher3/BubbleTextView.java b/src/com/android/launcher3/BubbleTextView.java
index 33b3ad347a..a294fa5381 100644
--- a/src/com/android/launcher3/BubbleTextView.java
+++ b/src/com/android/launcher3/BubbleTextView.java
@@ -65,6 +65,7 @@ public class BubbleTextView extends TextView
 
     private static final int DISPLAY_WORKSPACE = 0;
     private static final int DISPLAY_ALL_APPS = 1;
+    private static final int DISPLAY_FOLDER = 2;
 
     private final Launcher mLauncher;
     private Drawable mIcon;
@@ -125,12 +126,13 @@ public class BubbleTextView extends TextView
             setTextSize(TypedValue.COMPLEX_UNIT_PX, grid.allAppsIconTextSizePx);
             setCompoundDrawablePadding(grid.allAppsIconDrawablePaddingPx);
             defaultIconSize = grid.allAppsIconSizePx;
+        } else if (display == DISPLAY_FOLDER) {
+            setCompoundDrawablePadding(grid.folderChildDrawablePaddingPx);
         }
         mCenterVertically = a.getBoolean(R.styleable.BubbleTextView_centerVertically, false);
 
         mIconSize = a.getDimensionPixelSize(R.styleable.BubbleTextView_iconSizeOverride,
                 defaultIconSize);
-
         a.recycle();
 
         if (mCustomShadowsEnabled) {
diff --git a/src/com/android/launcher3/DeviceProfile.java b/src/com/android/launcher3/DeviceProfile.java
index c9fd85a16d..c4e6ed119b 100644
--- a/src/com/android/launcher3/DeviceProfile.java
+++ b/src/com/android/launcher3/DeviceProfile.java
@@ -20,8 +20,6 @@ import android.appwidget.AppWidgetHostView;
 import android.content.ComponentName;
 import android.content.Context;
 import android.content.res.Resources;
-import android.graphics.Paint;
-import android.graphics.Paint.FontMetrics;
 import android.graphics.Point;
 import android.graphics.Rect;
 import android.util.DisplayMetrics;
@@ -100,6 +98,7 @@ public class DeviceProfile {
     public int folderIconPreviewPadding;
     public int folderCellWidthPx;
     public int folderCellHeightPx;
+    public int folderChildDrawablePaddingPx;
 
     // Hotseat
     public int hotseatCellWidthPx;
@@ -255,12 +254,9 @@ public class DeviceProfile {
         allAppsIconDrawablePaddingPx = iconDrawablePaddingPx;
         allAppsIconTextSizePx = iconTextSizePx;
 
-        // Calculate the actual text height
-        Paint textPaint = new Paint();
-        textPaint.setTextSize(iconTextSizePx);
-        FontMetrics fm = textPaint.getFontMetrics();
         cellWidthPx = iconSizePx;
-        cellHeightPx = iconSizePx + iconDrawablePaddingPx + (int) Math.ceil(fm.bottom - fm.top);
+        cellHeightPx = iconSizePx + iconDrawablePaddingPx
+                + Utilities.calculateTextHeight(iconTextSizePx);
         final float scaleDps = !FeatureFlags.LAUNCHER3_LEGACY_WORKSPACE_DND ? 0f
                 : res.getDimensionPixelSize(R.dimen.dragViewScale);
         dragViewScale = (iconSizePx + scaleDps) / iconSizePx;
@@ -281,12 +277,25 @@ public class DeviceProfile {
                     res.getInteger(R.integer.config_workspaceSpringLoadShrinkPercentage) / 100.0f;
         }
 
-        // Folder
-        int folderCellPadding = isTablet || isLandscape ? 6 * edgeMarginPx : 3 * edgeMarginPx;
+        // Folder cell
+        int cellPaddingX = res.getDimensionPixelSize(R.dimen.folder_cell_x_padding);
+        int cellPaddingY = res.getDimensionPixelSize(R.dimen.folder_cell_y_padding);
+        final int folderChildTextSize =
+                Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_child_text_size));
+
+        final int folderBottomPanelSize =
+                2 * res.getDimensionPixelSize(R.dimen.folder_label_padding)
+                + Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_label_text_size));
+
         // Don't let the folder get too close to the edges of the screen.
-        folderCellWidthPx = Math.min(cellWidthPx + folderCellPadding,
+        folderCellWidthPx = Math.min(iconSizePx + 2 * cellPaddingX,
                 (availableWidthPx - 4 * edgeMarginPx) / inv.numFolderColumns);
-        folderCellHeightPx = cellHeightPx + edgeMarginPx;
+        folderCellHeightPx = Math.min(iconSizePx + 3 * cellPaddingY + folderChildTextSize,
+                (availableHeightPx - 4 * edgeMarginPx - folderBottomPanelSize) / inv.numFolderRows);
+        folderChildDrawablePaddingPx = Math.max(0,
+                (folderCellHeightPx - iconSizePx - folderChildTextSize) / 3);
+
+        // Folder icon
         folderBackgroundOffset = -edgeMarginPx;
         folderIconSizePx = iconSizePx + 2 * -folderBackgroundOffset;
         folderIconPreviewPadding = res.getDimensionPixelSize(R.dimen.folder_preview_padding);
@@ -296,9 +305,6 @@ public class DeviceProfile {
         mInsets.set(insets);
     }
 
-    /**
-     * @param recyclerViewWidth the available width of the AllAppsRecyclerView
-     */
     public void updateAppsViewNumCols() {
         allAppsNumCols = allAppsNumPredictiveCols = inv.numColumns;
     }
diff --git a/src/com/android/launcher3/Utilities.java b/src/com/android/launcher3/Utilities.java
index e34f509da9..b0e096a2ea 100644
--- a/src/com/android/launcher3/Utilities.java
+++ b/src/com/android/launcher3/Utilities.java
@@ -686,11 +686,11 @@ public final class Utilities {
     /**
      * Calculates the height of a given string at a specific text size.
      */
-    public static float calculateTextHeight(float textSizePx) {
+    public static int calculateTextHeight(float textSizePx) {
         Paint p = new Paint();
         p.setTextSize(textSizePx);
         Paint.FontMetrics fm = p.getFontMetrics();
-        return -fm.top + fm.bottom;
+        return (int) Math.ceil(fm.bottom - fm.top);
     }
 
     /**