diff --git a/src/components/doclist/DocumentFolder.tsx b/src/components/doclist/DocumentFolder.tsx
index e90a55f..2411fe6 100644
--- a/src/components/doclist/DocumentFolder.tsx
+++ b/src/components/doclist/DocumentFolder.tsx
@@ -1,5 +1,5 @@
 import { useState, DragEvent } from 'react';
-import { Button } from '@headlessui/react';
+import { Button, Transition } from '@headlessui/react';
 import { DocumentListItem } from './DocumentListItem';
 import { Folder, DocumentListDocument } from '@/types/documents';
 
@@ -62,56 +62,77 @@ export function DocumentFolder({
         if (!draggedDoc || draggedDoc.folderId) return;
         onDrop(e, folder.id);
       }}
-      className={`rounded-lg p-2 transition-all bg-offbase shadow hover:shadow-md ${
-        isDropTarget ? 'ring-2 ring-accent bg-primary/10' : ''
-      }`}
+      className={`overflow-hidden rounded-lg transition-all bg-offbase shadow hover:shadow-md ${isDropTarget ? 'ring-2 ring-accent' : ''}`}
     >
-      <div className={`flex items-center justify-between ${isCollapsed ? 'mb-0' : 'mb-2'}`}>
-        <div className="flex items-center">
-          <h3 className="text-lg px-1 font-semibold">{folder.name}</h3>
-          <Button
-            onClick={onDelete}
-            className="p-1 text-muted hover:text-red-500 hover:bg-red-50 rounded-lg transition-colors"
-            aria-label="Delete folder"
-          >
-            <svg className="w-4 h-4" fill="none" stroke="currentColor" viewBox="0 0 24 24">
-              <path strokeLinecap="round" strokeLinejoin="round" strokeWidth="2" d="M6 18L18 6M6 6l12 12" />
-            </svg>
-          </Button>
+      <div className='flex flex-row justify-between p-2'>
+        <div className="w-full">
+          <div className={`flex items-center justify-between ${isCollapsed ? 'mb-0' : 'mb-2'} transition-all duration-200`}>
+            <div className="flex items-center">
+              <h3 className="text-lg px-1 font-semibold">{folder.name}</h3>
+                <Button
+                onClick={() => onToggleCollapse(folder.id)}
+                className="transform transition-transform duration-200 ease-in-out hover:scale-[1.09] hover:font-semibold hover:text-accent"
+                aria-label={isCollapsed ? "Expand folder" : "Collapse folder"}
+                >
+                <ChevronIcon
+                  className={`w-5 h-5 transform transition-transform duration-300 ease-in-out ${isCollapsed ? '-rotate-180' : ''}`}
+                />
+                </Button>
+            </div>
+            <Button
+              onClick={onDelete}
+              className="p-1 text-muted hover:text-red-500 hover:bg-red-50 rounded-lg transition-colors"
+              aria-label="Delete folder"
+            >
+              <svg className="w-4 h-4"
+                fill="none" stroke="currentColor" viewBox="0 0 24 24">
+                <path strokeLinecap="round" strokeLinejoin="round" strokeWidth="2" d="M6 18L18 6M6 6l12 12" />
+              </svg>
+            </Button>
+          </div>
+
+          <div className="relative">
+            <Transition
+              show={!isCollapsed}
+              enter="transition-all duration-300 ease-out"
+              enterFrom="transform scale-y-0 opacity-0 max-h-0"
+              enterTo="transform scale-y-100 opacity-100 max-h-[1000px]"
+              leave="transition-all duration-200 ease-in"
+              leaveFrom="transform scale-y-100 opacity-100 max-h-[1000px]"
+              leaveTo="transform scale-y-0 opacity-0 max-h-0"
+            >
+              <div className="space-y-2 origin-top">
+                {sortedDocuments.map(doc => (
+                  <DocumentListItem
+                    key={`${doc.type}-${doc.id}`}
+                    doc={doc}
+                    onDelete={onDocumentDelete}
+                    dragEnabled={false} // Documents in folders can't be dragged to other documents
+                    onDragStart={onDragStart}
+                    onDragEnd={onDragEnd}
+                    isDropTarget={false}
+                  />
+                ))}
+              </div>
+            </Transition>
+
+            <Transition
+              show={isCollapsed}
+              enter="transition-all duration-200"
+              enterFrom="max-h-0 opacity-0"
+              enterTo="max-h-[50px] opacity-100"
+              leave="transition-all duration-100"
+              leaveFrom="max-h-[50px] opacity-100"
+              leaveTo="max-h-0 opacity-0"
+            >
+              <p className="text-xs px-1 text-left text-muted">
+                {(calculateFolderSize(sortedDocuments) / 1024 / 1024).toFixed(2)} MB
+                {` • ${sortedDocuments.length} ${sortedDocuments.length === 1 ? 'file' : 'files'}`}
+              </p>
+            </Transition>
+          </div>
         </div>
-        <Button
-          onClick={() => onToggleCollapse(folder.id)}
-          className="p-1 hover:bg-offbase rounded-lg transition-colors"
-          aria-label={isCollapsed ? "Expand folder" : "Collapse folder"}
-        >
-          <ChevronIcon
-            className={`w-5 h-5 transform transition-transform ${isCollapsed ? 'rotate-180' : ''}`}
-          />
-        </Button>
       </div>
-      
-      {!isCollapsed && (
-        <div className="space-y-2">
-          {sortedDocuments.map(doc => (
-            <DocumentListItem
-              key={`${doc.type}-${doc.id}`}
-              doc={doc}
-              onDelete={onDocumentDelete}
-              dragEnabled={false} // Documents in folders can't be dragged to other documents
-              onDragStart={onDragStart}
-              onDragEnd={onDragEnd}
-              isDropTarget={false}
-            />
-          ))}
-        </div>
-      )}
-      
-      {isCollapsed && (
-        <p className="text-xs px-1 text-left text-muted">
-          {(calculateFolderSize(sortedDocuments) / 1024 / 1024).toFixed(2)} MB
-          {` • ${sortedDocuments.length} ${sortedDocuments.length === 1 ? 'file' : 'files'}`}
-        </p>
-      )}
     </div>
   );
 }
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