diff --git a/database/factories/FolderFactory.php b/database/factories/FolderFactory.php
index bd634b99..41e849b8 100644
--- a/database/factories/FolderFactory.php
+++ b/database/factories/FolderFactory.php
@@ -1,4 +1,5 @@
 <?php
+
 namespace Database\Factories;
 
 use Domain\Folders\Models\Folder;
@@ -21,13 +22,14 @@ class FolderFactory extends Factory
     public function definition()
     {
         return [
-            'id'         => $this->faker->uuid,
-            'user_id'    => $this->faker->uuid,
-            'name'       => $this->faker->word,
-            'author'     => $this->faker->randomElement(
+            'id'          => $this->faker->uuid,
+            'user_id'     => $this->faker->uuid,
+            'name'        => $this->faker->word,
+            'team_folder' => $this->faker->boolean(),
+            'author'      => $this->faker->randomElement(
                 ['user', 'member', 'visitor']
             ),
-            'created_at' => $this->faker->dateTimeBetween(
+            'created_at'  => $this->faker->dateTimeBetween(
                 $startDate = '-36 months',
                 $endDate = 'now',
                 $timezone = null
diff --git a/routes/teams.php b/routes/teams.php
index 78f0b87f..1d98b7f7 100644
--- a/routes/teams.php
+++ b/routes/teams.php
@@ -8,5 +8,5 @@ use Domain\Teams\Controllers\TeamFoldersController;
 Route::apiResource('/invitations', InvitationsController::class)
     ->only('destroy', 'update');
 
-Route::post('/team-folders/convert/{folder}', ConvertFolderIntoTeamFolderController::class);
-Route::apiResource('/team-folders', TeamFoldersController::class);
+Route::post('/folders/convert/{folder}', ConvertFolderIntoTeamFolderController::class);
+Route::apiResource('/folders', TeamFoldersController::class);
diff --git a/src/Domain/Teams/Controllers/TeamFoldersController.php b/src/Domain/Teams/Controllers/TeamFoldersController.php
index 77721eae..4514a1c4 100644
--- a/src/Domain/Teams/Controllers/TeamFoldersController.php
+++ b/src/Domain/Teams/Controllers/TeamFoldersController.php
@@ -2,6 +2,7 @@
 
 namespace Domain\Teams\Controllers;
 
+use DB;
 use Domain\Teams\Actions\InviteMembersIntoTeamFolderAction;
 use Illuminate\Http\Request;
 use Illuminate\Http\Response;
@@ -31,4 +32,17 @@ class TeamFoldersController extends Controller
 
         return response($folder, 201);
     }
+
+    public function destroy(Folder $folder): Response
+    {
+        $folder->update([
+            'team_folder' => 0,
+        ]);
+
+        DB::table('team_folder_members')
+            ->where('folder_id', $folder->id)
+            ->delete();
+
+        return response('Done.', 204);
+    }
 }
diff --git a/tests/Domain/Teams/TeamsTest.php b/tests/Domain/Teams/TeamsTest.php
index 105259d1..72c9dfeb 100644
--- a/tests/Domain/Teams/TeamsTest.php
+++ b/tests/Domain/Teams/TeamsTest.php
@@ -4,6 +4,7 @@ namespace Tests\Domain\Teams;
 
 use Domain\Folders\Models\Folder;
 use Domain\Teams\Models\TeamFoldersInvitation;
+use Illuminate\Support\Facades\DB;
 use Notification;
 use Tests\TestCase;
 use App\Users\Models\User;
@@ -26,7 +27,7 @@ class TeamsTest extends TestCase
 
         $this
             ->actingAs($user)
-            ->post('/api/teams/team-folders', [
+            ->post('/api/teams/folders', [
                 'name'    => 'Company Project',
                 'members' => [
                     [
@@ -74,7 +75,7 @@ class TeamsTest extends TestCase
 
         $this
             ->actingAs($user)
-            ->post("/api/teams/team-folders/convert/{$folder->id}", [
+            ->post("/api/teams/folders/convert/{$folder->id}", [
                 'members' => [
                     [
                         'email'      => 'john@internal.com',
@@ -189,10 +190,43 @@ class TeamsTest extends TestCase
     }
 
     /**
-     *
+     * @test
      */
     public function it_dissolve_team_folder()
     {
+        $user = User::factory(User::class)
+            ->create();
+
+        $members = User::factory(User::class)
+            ->count(2)
+            ->create();
+
+        $folder = Folder::factory()
+            ->create([
+                'user_id'     => $user->id,
+                'team_folder' => 1,
+            ]);
+
+        DB::table('team_folder_members')
+            ->insert([
+                [
+                    'folder_id'  => $folder->id,
+                    'member_id'  => $members[0]->id,
+                    'permission' => 'can-edit',
+                ],
+                [
+                    'folder_id'  => $folder->id,
+                    'member_id'  => $members[1]->id,
+                    'permission' => 'can-edit',
+                ],
+            ]);
+
+        $this
+            ->actingAs($user)
+            ->deleteJson("/api/teams/folders/{$folder->id}")
+            ->assertNoContent();
+
+        $this->assertDatabaseCount('team_folder_members', 0);
     }
 
     /**