diff --git a/CHANGELOG.md b/CHANGELOG.md
index df9c6477..0e9fce71 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Support for `trackingOptions` property in Message responses when using `fields=include_tracking_options`
 - Support for `rawMime` property in Message responses when using `fields=raw_mime`
 - `MessageTrackingOptions` interface for tracking message opens, thread replies, link clicks, and custom labels
+- Support for `singleLevel` query parameter in `ListFolderQueryParams` for Microsoft accounts to control folder hierarchy traversal
 
 ### Fixed
 - Fixed 3MB payload size limit to consider total request size (message body + attachments) instead of just attachment size when determining whether to use multipart/form-data encoding
diff --git a/examples/README.md b/examples/README.md
index 1517f82c..18e0e954 100644
--- a/examples/README.md
+++ b/examples/README.md
@@ -6,6 +6,7 @@ This directory contains examples of how to use the Nylas Node.js SDK to interact
 
 - [Notetakers](./notetakers/README.md) - Examples of how to use the Nylas Notetakers API to invite a Notetaker bot to meetings, get recordings and transcripts, and more.
 - [Messages](./messages/README.md) - Examples of how to use the Nylas Messages API to list, find, send, update messages, and work with new features like tracking options and raw MIME data.
+- [Folders](./folders/README.md) - Examples of how to use the Nylas Folders API, including the new `singleLevel` parameter for Microsoft accounts.
 
 ## Running the Examples
 
diff --git a/examples/folders/README.md b/examples/folders/README.md
new file mode 100644
index 00000000..6a45c8cb
--- /dev/null
+++ b/examples/folders/README.md
@@ -0,0 +1,114 @@
+# Nylas Folders API Examples
+
+This directory contains examples of how to use the Nylas Folders API with the Nylas Node.js SDK, including the new `singleLevel` query parameter.
+
+## What is the singleLevel Parameter?
+
+The `singleLevel` parameter is a new query parameter for the "list all folders" endpoint that controls folder hierarchy traversal:
+
+- **`singleLevel: true`** - Retrieves folders from a single-level hierarchy only (direct children)
+- **`singleLevel: false`** - Retrieves folders across a multi-level hierarchy (all descendants, default behavior)
+- **Microsoft accounts only** - This parameter is ignored for other providers
+
+## Examples
+
+- [folders.ts](./folders.ts) - A comprehensive example showing how to use the `singleLevel` parameter in various scenarios
+
+## Running the Examples
+
+To run these examples, you'll need to:
+
+1. Install dependencies from the examples directory:
+   ```bash
+   cd examples
+   npm install
+   ```
+
+2. Copy the `.env.example` file to `.env` if you haven't already and add your credentials:
+   ```bash
+   cp .env.example .env
+   # Edit .env with your editor
+   ```
+
+3. Edit the `.env` file to include:
+   - `NYLAS_API_KEY` - Your Nylas API key
+   - `NYLAS_API_URI` (optional) - The Nylas API server URI (defaults to "https://api.us.nylas.com")
+   - `NYLAS_GRANT_ID` - The Grant ID for a Microsoft account to see the `singleLevel` parameter in action
+
+4. Run the example:
+   ```bash
+   # From the examples directory
+   npx ts-node folders/folders.ts
+   
+   # Or if you add it to package.json scripts
+   npm run folders
+   ```
+
+## Understanding the Example
+
+This example demonstrates:
+
+1. **Default Behavior**: Listing all folders with multi-level hierarchy (default)
+2. **Single-Level Listing**: Using `singleLevel: true` to get only direct children
+3. **Combined Parameters**: Using `singleLevel` with `parentId` to control the starting point
+4. **Comparison**: Side-by-side comparison of single-level vs multi-level results
+5. **Parameter Variations**: All possible combinations of the `singleLevel` parameter
+
+## Use Cases
+
+The `singleLevel` parameter is particularly useful when:
+
+- **Building UI Navigation**: You want to show only immediate child folders in a tree view
+- **Performance Optimization**: Reducing the amount of data returned when you only need direct children
+- **Hierarchical Processing**: Processing folder structures level by level rather than all at once
+- **Microsoft-Specific Features**: Taking advantage of Microsoft's folder hierarchy capabilities
+
+## API Reference
+
+### ListFolderQueryParams Interface
+
+```typescript
+interface ListFolderQueryParams extends ListQueryParams {
+  /**
+   * (Microsoft and EWS only.) Use the ID of a folder to find all child folders it contains.
+   */
+  parentId?: string;
+
+  /**
+   * (Microsoft only) If true, retrieves folders from a single-level hierarchy only. 
+   * If false, retrieves folders across a multi-level hierarchy.
+   * @default false
+   */
+  singleLevel?: boolean;
+}
+```
+
+### Example Usage
+
+```typescript
+import Nylas from 'nylas';
+
+const nylas = new Nylas({ apiKey: 'your-api-key' });
+
+// Get only direct children of a specific folder
+const singleLevelFolders = await nylas.folders.list({
+  identifier: 'grant-id',
+  queryParams: {
+    parentId: 'parent-folder-id',
+    singleLevel: true
+  }
+});
+
+// Get all descendants (default behavior)
+const allFolders = await nylas.folders.list({
+  identifier: 'grant-id',
+  queryParams: {
+    parentId: 'parent-folder-id',
+    singleLevel: false // or omit this parameter
+  }
+});
+```
+
+## Documentation
+
+For more information, see the [Nylas API Documentation](https://developer.nylas.com/). 
\ No newline at end of file
diff --git a/examples/folders/folders.ts b/examples/folders/folders.ts
new file mode 100644
index 00000000..7085b366
--- /dev/null
+++ b/examples/folders/folders.ts
@@ -0,0 +1,218 @@
+import dotenv from 'dotenv';
+import path from 'path';
+import * as process from 'process';
+import Nylas, {
+  Folder,
+  NylasResponse,
+  NylasListResponse,
+  NylasApiError,
+  ListFolderQueryParams
+} from 'nylas';
+
+// Load environment variables from .env file
+dotenv.config({ path: path.resolve(__dirname, '../.env') });
+
+const NYLAS_API_KEY = process.env.NYLAS_API_KEY;
+const NYLAS_GRANT_ID = process.env.NYLAS_GRANT_ID;
+
+if (!NYLAS_API_KEY) {
+  console.error('NYLAS_API_KEY is required. Please add it to your .env file.');
+  process.exit(1);
+}
+
+if (!NYLAS_GRANT_ID) {
+  console.error('NYLAS_GRANT_ID is required. Please add it to your .env file.');
+  process.exit(1);
+}
+
+async function listFoldersExample() {
+  try {
+    // Initialize Nylas client
+    const nylas = new Nylas({
+      apiKey: NYLAS_API_KEY!,
+      apiUri: process.env.NYLAS_API_URI || 'https://api.us.nylas.com',
+    });
+
+    console.log('=== Nylas Folders API Demo ===\n');
+
+    // 1. List all folders (default behavior - multi-level hierarchy)
+    console.log('1. Listing all folders (multi-level hierarchy):');
+    const allFolders: NylasListResponse<Folder> = await nylas.folders.list({
+      identifier: NYLAS_GRANT_ID!,
+      queryParams: {}
+    });
+
+    console.log(`Found ${allFolders.data.length} folders total:`);
+    allFolders.data.forEach((folder, index) => {
+      console.log(`  ${index + 1}. ${folder.name} (ID: ${folder.id})`);
+      if (folder.parentId) {
+        console.log(`     └─ Parent ID: ${folder.parentId}`);
+      }
+      if (folder.childCount !== undefined) {
+        console.log(`     └─ Child Count: ${folder.childCount}`);
+      }
+    });
+    console.log();
+
+    // 2. List folders with single-level hierarchy (Microsoft only)
+    console.log('2. Listing folders with single-level hierarchy (Microsoft only):');
+    const singleLevelFolders: NylasListResponse<Folder> = await nylas.folders.list({
+      identifier: NYLAS_GRANT_ID!,
+      queryParams: {
+        singleLevel: true
+      } as any
+    });
+
+    console.log(`Found ${singleLevelFolders.data.length} folders at single level:`);
+    singleLevelFolders.data.forEach((folder, index) => {
+      console.log(`  ${index + 1}. ${folder.name} (ID: ${folder.id})`);
+      if (folder.parentId) {
+        console.log(`     └─ Parent ID: ${folder.parentId}`);
+      }
+    });
+    console.log();
+
+    // 3. List folders with both singleLevel and parentId parameters
+    const rootFolders = allFolders.data.filter(folder => !folder.parentId);
+    if (rootFolders.length > 0) {
+      const rootFolder = rootFolders[0];
+      console.log(`3. Listing child folders of "${rootFolder.name}" with single-level hierarchy:`);
+      
+      const childFolders: NylasListResponse<Folder> = await nylas.folders.list({
+        identifier: NYLAS_GRANT_ID!,
+        queryParams: {
+          parentId: rootFolder.id,
+          singleLevel: true
+        } as any
+      });
+
+      console.log(`Found ${childFolders.data.length} direct child folders:`);
+      childFolders.data.forEach((folder, index) => {
+        console.log(`  ${index + 1}. ${folder.name} (ID: ${folder.id})`);
+      });
+    } else {
+      console.log('3. No root folders found to demonstrate parentId + singleLevel combination.');
+    }
+    console.log();
+
+    // 4. Compare single-level vs multi-level for the same parent
+    if (rootFolders.length > 0) {
+      const rootFolder = rootFolders[0];
+      console.log('4. Comparing single-level vs multi-level hierarchy:');
+      
+      // Multi-level (default)
+      const multiLevelChildren: NylasListResponse<Folder> = await nylas.folders.list({
+        identifier: NYLAS_GRANT_ID!,
+        queryParams: {
+          parentId: rootFolder.id,
+          singleLevel: false // explicit false
+        } as any
+      });
+
+      // Single-level
+      const singleLevelChildren: NylasListResponse<Folder> = await nylas.folders.list({
+        identifier: NYLAS_GRANT_ID!,
+        queryParams: {
+          parentId: rootFolder.id,
+          singleLevel: true
+        } as any
+      });
+
+      console.log(`Multi-level hierarchy: ${multiLevelChildren.data.length} folders`);
+      console.log(`Single-level hierarchy: ${singleLevelChildren.data.length} folders`);
+      
+      if (multiLevelChildren.data.length !== singleLevelChildren.data.length) {
+        console.log('📝 Note: Different folder counts indicate the singleLevel parameter is working correctly.');
+        console.log('   Multi-level includes nested folders, single-level shows only direct children.');
+      }
+    }
+
+  } catch (error) {
+    if (error instanceof NylasApiError) {
+      console.error('Nylas API Error:', error.message);
+      console.error('Status Code:', error.statusCode);
+      console.error('Error Type:', error.type);
+    } else {
+      console.error('Unexpected error:', error);
+    }
+  }
+}
+
+// Enhanced demonstration with detailed explanations
+async function detailedFoldersDemo() {
+  try {
+    const nylas = new Nylas({
+      apiKey: NYLAS_API_KEY!,
+      apiUri: process.env.NYLAS_API_URI || 'https://api.us.nylas.com',
+    });
+
+    console.log('\n=== Detailed singleLevel Parameter Demo ===\n');
+
+    console.log('The singleLevel parameter controls folder hierarchy traversal:');
+    console.log('• singleLevel: true  → Returns only direct children (single level)');
+    console.log('• singleLevel: false → Returns all descendants (multi-level, default)');
+    console.log('• Microsoft accounts only - ignored for other providers\n');
+
+    // Show all query parameter combinations
+    const queryVariations: Array<{name: string, params: any}> = [
+      {
+        name: 'Default (multi-level)',
+        params: {}
+      },
+      {
+        name: 'Explicit multi-level',
+        params: { singleLevel: false }
+      },
+      {
+        name: 'Single-level only',
+        params: { singleLevel: true }
+      }
+    ];
+
+    for (const variation of queryVariations) {
+      console.log(`--- ${variation.name} ---`);
+      console.log(`Query params: ${JSON.stringify(variation.params)}`);
+      
+      try {
+        const folders: NylasListResponse<Folder> = await nylas.folders.list({
+          identifier: NYLAS_GRANT_ID!,
+          queryParams: variation.params
+        });
+
+        console.log(`Result: ${folders.data.length} folders found`);
+        
+        // Show folder hierarchy structure
+        const rootFolders = folders.data.filter(f => !f.parentId);
+        const childFolders = folders.data.filter(f => f.parentId);
+        
+        console.log(`├─ Root folders: ${rootFolders.length}`);
+        console.log(`└─ Child folders: ${childFolders.length}`);
+      } catch (error) {
+        console.log(`Error: ${error instanceof NylasApiError ? error.message : 'Unknown error'}`);
+      }
+      console.log();
+    }
+
+  } catch (error) {
+    console.error('Demo error:', error);
+  }
+}
+
+// Run the examples
+async function main() {
+  await listFoldersExample();
+  await detailedFoldersDemo();
+  
+  console.log('=== Folders API Demo Complete ===');
+  console.log('\nKey takeaways:');
+  console.log('1. The singleLevel parameter is Microsoft-specific');
+  console.log('2. Use singleLevel: true to get only direct children');
+  console.log('3. Use singleLevel: false (or omit) for full hierarchy');
+  console.log('4. Combine with parentId to control which folder to start from');
+}
+
+if (require.main === module) {
+  main().catch(console.error);
+}
+
+export default main; 
\ No newline at end of file
diff --git a/examples/package.json b/examples/package.json
index 5d8a147b..64ade60f 100644
--- a/examples/package.json
+++ b/examples/package.json
@@ -8,7 +8,8 @@
     "build": "tsc",
     "notetakers": "ts-node notetakers/notetaker.ts",
     "calendars": "ts-node calendars/event_with_notetaker.ts",
-    "messages": "ts-node messages/messages.ts"
+    "messages": "ts-node messages/messages.ts",
+    "folders": "ts-node folders/folders.ts"
   },
   "dependencies": {
     "dotenv": "^16.0.0",
diff --git a/src/models/folders.ts b/src/models/folders.ts
index 87ccfe92..c3e33ffb 100644
--- a/src/models/folders.ts
+++ b/src/models/folders.ts
@@ -101,6 +101,13 @@ export interface ListFolderQueryParams extends ListQueryParams {
    * (Microsoft and EWS only.) Use the ID of a folder to find all child folders it contains.
    */
   parentId?: string;
+
+  /**
+   * (Microsoft only) If true, retrieves folders from a single-level hierarchy only.
+   * If false, retrieves folders across a multi-level hierarchy.
+   * @default false
+   */
+  singleLevel?: boolean;
 }
 
 export type UpdateFolderRequest = Partial<CreateFolderRequest>;
diff --git a/tests/resources/folders.spec.ts b/tests/resources/folders.spec.ts
index ae84a390..57a36dc0 100644
--- a/tests/resources/folders.spec.ts
+++ b/tests/resources/folders.spec.ts
@@ -73,6 +73,50 @@ describe('Folders', () => {
         },
       });
     });
+
+    it('should call apiClient.request with query params including single_level', async () => {
+      await folders.list({
+        identifier: 'id123',
+        queryParams: {
+          singleLevel: true,
+          parentId: 'parent123',
+        },
+        overrides: {
+          apiUri: 'https://test.api.nylas.com',
+          headers: { override: 'bar' },
+        },
+      });
+
+      expect(apiClient.request).toHaveBeenCalledWith({
+        method: 'GET',
+        path: '/v3/grants/id123/folders',
+        queryParams: {
+          singleLevel: true,
+          parentId: 'parent123',
+        },
+        overrides: {
+          apiUri: 'https://test.api.nylas.com',
+          headers: { override: 'bar' },
+        },
+      });
+    });
+
+    it('should call apiClient.request with single_level set to false', async () => {
+      await folders.list({
+        identifier: 'id123',
+        queryParams: {
+          singleLevel: false,
+        },
+      });
+
+      expect(apiClient.request).toHaveBeenCalledWith({
+        method: 'GET',
+        path: '/v3/grants/id123/folders',
+        queryParams: {
+          singleLevel: false,
+        },
+      });
+    });
   });
 
   describe('find', () => {