diff --git a/extension.ts b/extension.ts
index e9e2344..8e15bca 100644
--- a/extension.ts
+++ b/extension.ts
@@ -31,8 +31,42 @@ export interface BookmarkFolder {
   createdAt: number;
   order?: number;
   parentId?: string | null;
+  /** A codicon id (e.g. `server`), shown instead of the default folder icon. */
+  icon?: string;
+  /** A theme color id (e.g. `charts.red`) tinting the folder's icon. */
+  color?: string;
 }
 
+/** Codicons offered when customizing a folder's icon. */
+export const FOLDER_ICON_CHOICES: ReadonlyArray<{ id: string; label: string }> = [
+  { id: 'folder', label: 'Folder' },
+  { id: 'server', label: 'Server' },
+  { id: 'database', label: 'Database' },
+  { id: 'beaker', label: 'Beaker' },
+  { id: 'bug', label: 'Bug' },
+  { id: 'checklist', label: 'Checklist' },
+  { id: 'eye', label: 'In Review' },
+  { id: 'flame', label: 'Flame' },
+  { id: 'gear', label: 'Gear' },
+  { id: 'globe', label: 'Globe' },
+  { id: 'heart', label: 'Heart' },
+  { id: 'lock', label: 'Lock' },
+  { id: 'rocket', label: 'Rocket' },
+  { id: 'star-full', label: 'Star' },
+  { id: 'tag', label: 'Tag' },
+  { id: 'tools', label: 'Tools' },
+];
+
+/** Theme colors offered when customizing a folder's icon color. */
+export const FOLDER_COLOR_CHOICES: ReadonlyArray<{ id: string; label: string }> = [
+  { id: 'charts.red', label: 'Red' },
+  { id: 'charts.orange', label: 'Orange' },
+  { id: 'charts.yellow', label: 'Yellow' },
+  { id: 'charts.green', label: 'Green' },
+  { id: 'charts.blue', label: 'Blue' },
+  { id: 'charts.purple', label: 'Purple' },
+];
+
 /** Folders may nest up to this many levels deep (root-level folders are depth 1). */
 export const MAX_FOLDER_DEPTH = 3;
 
@@ -287,6 +321,10 @@ export function activate(context: vscode.ExtensionContext): ExtensionApi {
       'workspace-file-bookmarks.renameFolder',
       (item: FolderGroupItem) => renameFolder(store, item),
     ),
+    vscode.commands.registerCommand(
+      'workspace-file-bookmarks.setFolderAppearance',
+      (item: FolderGroupItem) => setFolderAppearance(store, item),
+    ),
     vscode.commands.registerCommand(
       'workspace-file-bookmarks.deleteFolder',
       (item: FolderGroupItem) => deleteFolder(store, item),
@@ -476,6 +514,27 @@ export class BookmarkStore {
     this.setFolders(this.getAllFolders().map((f) => (f.id === id ? { ...f, name } : f)));
   }
 
+  /** Sets a folder's icon and/or color; `undefined` for either clears it back to the default. */
+  setFolderAppearance(id: string, appearance: { icon?: string; color?: string }) {
+    this.setFolders(
+      this.getAllFolders().map((f) => {
+        if (f.id !== id) {
+          return f;
+        }
+        const updated: BookmarkFolder = { ...f };
+        delete updated.icon;
+        delete updated.color;
+        if (appearance.icon) {
+          updated.icon = appearance.icon;
+        }
+        if (appearance.color) {
+          updated.color = appearance.color;
+        }
+        return updated;
+      }),
+    );
+  }
+
   moveFolderToParent(id: string, parentId: string | null) {
     this.setFolders(this.getAllFolders().map((f) => (f.id === id ? { ...f, parentId } : f)));
   }
@@ -554,7 +613,10 @@ export class FolderGroupItem extends vscode.TreeItem {
   ) {
     super(folder.name, vscode.TreeItemCollapsibleState.Expanded);
     this.contextValue = 'bookmarkFolder';
-    this.iconPath = new vscode.ThemeIcon('folder');
+    this.iconPath = new vscode.ThemeIcon(
+      folder.icon ?? 'folder',
+      folder.color ? new vscode.ThemeColor(folder.color) : undefined,
+    );
     this.description =
       childFolders.length > 0
         ? `${bookmarks.length} • ${childFolders.length} subfolder${childFolders.length === 1 ? '' : 's'}`
@@ -1005,6 +1067,38 @@ export async function renameFolder(store: BookmarkStore, item: FolderGroupItem)
   }
 }
 
+const DEFAULT_APPEARANCE_PICK = '$(discard) Default';
+
+/** Two-step quick-pick (icon, then color) that stores the chosen look on the folder. Cancelling either step leaves the folder unchanged. */
+export async function setFolderAppearance(store: BookmarkStore, item: FolderGroupItem) {
+  const iconItems = [
+    { label: DEFAULT_APPEARANCE_PICK, iconId: undefined as string | undefined },
+    ...FOLDER_ICON_CHOICES.map((c) => ({ label: `$(${c.id}) ${c.label}`, iconId: c.id })),
+  ];
+  const pickedIcon = await vscode.window.showQuickPick(iconItems, {
+    placeHolder: `Icon for "${item.folder.name}"`,
+  });
+  if (!pickedIcon) {
+    return;
+  }
+
+  const colorItems = [
+    { label: DEFAULT_APPEARANCE_PICK, colorId: undefined as string | undefined },
+    ...FOLDER_COLOR_CHOICES.map((c) => ({ label: c.label, colorId: c.id })),
+  ];
+  const pickedColor = await vscode.window.showQuickPick(colorItems, {
+    placeHolder: `Color for "${item.folder.name}"`,
+  });
+  if (!pickedColor) {
+    return;
+  }
+
+  store.setFolderAppearance(item.folder.id, {
+    icon: pickedIcon.iconId,
+    color: pickedColor.colorId,
+  });
+}
+
 export async function renameBookmark(store: BookmarkStore, item: BookmarkTreeItem) {
   const label = await vscode.window.showInputBox({
     prompt: 'Rename bookmark',
diff --git a/package.json b/package.json
index fa402bc..b8be975 100644
--- a/package.json
+++ b/package.json
@@ -148,6 +148,11 @@
         "title": "Rename Folder",
         "category": "Workspace File Bookmarks"
       },
+      {
+        "command": "workspace-file-bookmarks.setFolderAppearance",
+        "title": "Set Folder Icon and Color...",
+        "category": "Workspace File Bookmarks"
+      },
       {
         "command": "workspace-file-bookmarks.deleteFolder",
         "title": "Delete Folder",
@@ -350,6 +355,11 @@
           "command": "workspace-file-bookmarks.moveFolderToParent",
           "when": "view == workspace-file-bookmarks-view && viewItem == bookmarkFolder",
           "group": "1_modification"
+        },
+        {
+          "command": "workspace-file-bookmarks.setFolderAppearance",
+          "when": "view == workspace-file-bookmarks-view && viewItem == bookmarkFolder",
+          "group": "1_modification"
         }
       ],
       "editor/title": [
diff --git a/test/activate.test.ts b/test/activate.test.ts
index 142b970..473758a 100644
--- a/test/activate.test.ts
+++ b/test/activate.test.ts
@@ -15,8 +15,8 @@ describe('activate', () => {
       'workspace-file-bookmarks-view',
       expect.objectContaining({ canSelectMany: true }),
     );
-    expect(commands.registerCommand).toHaveBeenCalledTimes(29);
-    expect((context as any).subscriptions).toHaveLength(30); // tree view + 29 commands
+    expect(commands.registerCommand).toHaveBeenCalledTimes(30);
+    expect((context as any).subscriptions).toHaveLength(31); // tree view + 30 commands
   });
 
   it('exercises every registered command handler at least once', async () => {
@@ -61,6 +61,8 @@ describe('activate', () => {
     await handlers.get('workspace-file-bookmarks.createSubfolder')?.({ folder });
     await handlers.get('workspace-file-bookmarks.moveFolderToParent')?.({ folder });
     await handlers.get('workspace-file-bookmarks.renameFolder')?.({ folder });
+    window.showQuickPick.mockResolvedValue(undefined);
+    await handlers.get('workspace-file-bookmarks.setFolderAppearance')?.({ folder });
     await handlers.get('workspace-file-bookmarks.deleteFolder')?.({
       folder,
       bookmarks: [],
@@ -83,8 +85,8 @@ describe('activate', () => {
     await handlers.get('workspace-file-bookmarks.revealBookmarkInExplorer')?.({ bookmark });
     await handlers.get('workspace-file-bookmarks.revealBookmarkInFileManager')?.({ bookmark });
 
-    expect(commands.registerCommand).toHaveBeenCalledTimes(29);
-    expect((context as any).subscriptions).toHaveLength(30); // tree view + 29 commands
+    expect(commands.registerCommand).toHaveBeenCalledTimes(30);
+    expect((context as any).subscriptions).toHaveLength(31); // tree view + 30 commands
   });
 });
 
diff --git a/test/bookmarkStore.test.ts b/test/bookmarkStore.test.ts
index 4ea2bfc..6cf73ff 100644
--- a/test/bookmarkStore.test.ts
+++ b/test/bookmarkStore.test.ts
@@ -544,3 +544,45 @@ describe('bulk bookmark operations', () => {
     expect(changes).toBe(1);
   });
 });
+
+describe('setFolderAppearance', () => {
+  it('sets icon and color on only the targeted folder', () => {
+    const store = newStore();
+    const a = store.createFolder('A');
+    const b = store.createFolder('B');
+
+    store.setFolderAppearance(a.id, { icon: 'bug', color: 'charts.green' });
+
+    const folders = store.getAllFolders();
+    expect(folders.find((f) => f.id === a.id)).toMatchObject({
+      icon: 'bug',
+      color: 'charts.green',
+    });
+    expect(folders.find((f) => f.id === b.id)).not.toHaveProperty('icon');
+  });
+
+  it('clears icon and color when called with no values', () => {
+    const store = newStore();
+    const a = store.createFolder('A');
+    store.setFolderAppearance(a.id, { icon: 'bug', color: 'charts.green' });
+
+    store.setFolderAppearance(a.id, {});
+
+    expect(store.getAllFolders()[0]).toEqual(
+      expect.not.objectContaining({ icon: expect.anything(), color: expect.anything() }),
+    );
+    expect(store.getAllFolders()[0]).not.toHaveProperty('icon');
+    expect(store.getAllFolders()[0]).not.toHaveProperty('color');
+  });
+
+  it('preserves icon and color through mergeImport', () => {
+    const store = newStore();
+
+    store.mergeImport(
+      [],
+      [{ id: 'x', name: 'Imported', createdAt: 0, icon: 'rocket', color: 'charts.blue' }],
+    );
+
+    expect(store.getAllFolders()[0]).toMatchObject({ icon: 'rocket', color: 'charts.blue' });
+  });
+});
diff --git a/test/commands.test.ts b/test/commands.test.ts
index 99065d4..0cdef40 100644
--- a/test/commands.test.ts
+++ b/test/commands.test.ts
@@ -28,6 +28,8 @@ import {
   resolveBookmarkTargets,
   revealBookmarkInExplorer,
   revealBookmarkInFileManager,
+  setFolderAppearance,
+  FolderGroupItem,
   type Bookmark,
   type BookmarkFolder,
 } from '../extension';
@@ -1133,3 +1135,55 @@ describe('copy path / reveal actions', () => {
     );
   });
 });
+
+describe('setFolderAppearance', () => {
+  it('stores the chosen icon and color on the folder', async () => {
+    const store = newStore();
+    const folder = store.createFolder('Backend');
+    window.showQuickPick
+      .mockResolvedValueOnce({ label: '$(server) Server', iconId: 'server' })
+      .mockResolvedValueOnce({ label: 'Red', colorId: 'charts.red' });
+
+    await setFolderAppearance(store, new FolderGroupItem(folder, []));
+
+    expect(store.getAllFolders()[0]).toMatchObject({ icon: 'server', color: 'charts.red' });
+  });
+
+  it('clears the appearance when Default is chosen for both steps', async () => {
+    const store = newStore();
+    const folder = store.createFolder('Backend');
+    store.setFolderAppearance(folder.id, { icon: 'server', color: 'charts.red' });
+    window.showQuickPick
+      .mockResolvedValueOnce({ label: 'Default', iconId: undefined })
+      .mockResolvedValueOnce({ label: 'Default', colorId: undefined });
+
+    await setFolderAppearance(store, new FolderGroupItem(store.getAllFolders()[0], []));
+
+    const stored = store.getAllFolders()[0];
+    expect(stored).not.toHaveProperty('icon');
+    expect(stored).not.toHaveProperty('color');
+  });
+
+  it('leaves the folder untouched when the icon pick is cancelled', async () => {
+    const store = newStore();
+    const folder = store.createFolder('Backend');
+    window.showQuickPick.mockResolvedValueOnce(undefined);
+
+    await setFolderAppearance(store, new FolderGroupItem(folder, []));
+
+    expect(window.showQuickPick).toHaveBeenCalledOnce();
+    expect(store.getAllFolders()[0]).not.toHaveProperty('icon');
+  });
+
+  it('leaves the folder untouched when the color pick is cancelled', async () => {
+    const store = newStore();
+    const folder = store.createFolder('Backend');
+    window.showQuickPick
+      .mockResolvedValueOnce({ label: '$(server) Server', iconId: 'server' })
+      .mockResolvedValueOnce(undefined);
+
+    await setFolderAppearance(store, new FolderGroupItem(folder, []));
+
+    expect(store.getAllFolders()[0]).not.toHaveProperty('icon');
+  });
+});
diff --git a/test/e2e/extension.e2e.test.ts b/test/e2e/extension.e2e.test.ts
index dcab61d..ec101ba 100644
--- a/test/e2e/extension.e2e.test.ts
+++ b/test/e2e/extension.e2e.test.ts
@@ -60,6 +60,7 @@ describe('Workspace File Bookmarks (e2e)', () => {
       'workspace-file-bookmarks.createSubfolder',
       'workspace-file-bookmarks.moveFolderToParent',
       'workspace-file-bookmarks.renameFolder',
+      'workspace-file-bookmarks.setFolderAppearance',
       'workspace-file-bookmarks.deleteFolder',
       'workspace-file-bookmarks.moveToFolder',
       'workspace-file-bookmarks.openAllInFolder',
@@ -401,4 +402,33 @@ describe('Workspace File Bookmarks (e2e)', () => {
 
     await vscode.commands.executeCommand('workspace-file-bookmarks.revealBookmarkInExplorer', item);
   });
+
+  it('applies a custom icon and color to a folder via setFolderAppearance and the real tree', async () => {
+    const { store, provider } = await getApi();
+    const folder = store.createFolder('Backend');
+    const [node] = provider.getChildren() as FolderGroupItem[];
+
+    const originalShowQuickPick = vscode.window.showQuickPick;
+    try {
+      let call = 0;
+      (vscode.window as any).showQuickPick = async (items: any[]) =>
+        call++ === 0
+          ? items.find((i) => i.iconId === 'server')
+          : items.find((i) => i.colorId === 'charts.red');
+
+      await vscode.commands.executeCommand('workspace-file-bookmarks.setFolderAppearance', node);
+    } finally {
+      vscode.window.showQuickPick = originalShowQuickPick;
+    }
+
+    assert.deepEqual(
+      { icon: store.getAllFolders()[0].icon, color: store.getAllFolders()[0].color },
+      { icon: 'server', color: 'charts.red' },
+    );
+    const [updated] = provider.getChildren() as FolderGroupItem[];
+    const icon = updated.iconPath as vscode.ThemeIcon;
+    assert.equal(icon.id, 'server');
+    assert.equal((icon.color as vscode.ThemeColor).id, 'charts.red');
+    assert.equal(updated.folder.id, folder.id);
+  });
 });
diff --git a/test/treeProvider.test.ts b/test/treeProvider.test.ts
index 7a2a5f7..cd18e9a 100644
--- a/test/treeProvider.test.ts
+++ b/test/treeProvider.test.ts
@@ -333,6 +333,21 @@ describe('BookmarksTreeProvider', () => {
         }
       });
 
+      it('uses the default folder icon when no icon or color is set', () => {
+        const node = new FolderGroupItem({ id: 'f', name: 'Backend', createdAt: 0 }, []);
+
+        expect(node.iconPath).toMatchObject({ id: 'folder', color: undefined });
+      });
+
+      it('applies a custom icon and theme color to the folder', () => {
+        const node = new FolderGroupItem(
+          { id: 'f', name: 'Backend', createdAt: 0, icon: 'server', color: 'charts.red' },
+          [],
+        );
+
+        expect(node.iconPath).toMatchObject({ id: 'server', color: { id: 'charts.red' } });
+      });
+
       it('uses the plural "subfolders" when there is more than one', () => {
         const parent = { id: 'p', name: 'Backend', createdAt: 0, parentId: null };
         const node = new FolderGroupItem(