diff --git a/CHANGELOG.md b/CHANGELOG.md
index b9399acfdf..d3f4ef229c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@ This project adheres to [Semantic Versioning](https://semver.org/).
 ## [UNRELEASED]
 
 ## Added
+- [#3464](https://github.com/plotly/dash/issues/3464) Add `useFsAccessApi` prop to `dcc.Upload` component to enable folder upload functionality. When set to `True`, users can select and upload entire folders in addition to individual files, utilizing the File System Access API. This allows for recursive folder uploads when supported by the browser. The uploaded files use the same output API as multiple file uploads.
 - [#3395](https://github.com/plotly/dash/pull/3396) Add position argument to hooks.devtool
 - [#3403](https://github.com/plotly/dash/pull/3403) Add app_context to get_app, allowing to get the current app in routes.
 - [#3407](https://github.com/plotly/dash/pull/3407) Add `hidden` to callback arguments, hiding the callback from appearing in the devtool callback graph.
diff --git a/components/dash-core-components/src/components/Upload.react.js b/components/dash-core-components/src/components/Upload.react.js
index 916181ef3c..8616aeb7b5 100644
--- a/components/dash-core-components/src/components/Upload.react.js
+++ b/components/dash-core-components/src/components/Upload.react.js
@@ -154,6 +154,14 @@ Upload.propTypes = {
      */
     style_disabled: PropTypes.object,
 
+    /**
+     * Set to true to use the File System Access API for folder selection.
+     * When enabled, users can select folders in addition to files.
+     * This allows for recursive folder uploads. Note: browser support varies.
+     * See: https://developer.mozilla.org/en-US/docs/Web/API/File_System_Access_API
+     */
+    useFsAccessApi: PropTypes.bool,
+
     /**
      * Dash-supplied function for updating props
      */
@@ -166,6 +174,7 @@ Upload.defaultProps = {
     max_size: -1,
     min_size: 0,
     multiple: false,
+    useFsAccessApi: false,
     style: {},
     style_active: {
         borderStyle: 'solid',
diff --git a/components/dash-core-components/src/fragments/Upload.react.js b/components/dash-core-components/src/fragments/Upload.react.js
index 7bd910c190..c7db4a97e8 100644
--- a/components/dash-core-components/src/fragments/Upload.react.js
+++ b/components/dash-core-components/src/fragments/Upload.react.js
@@ -8,6 +8,98 @@ export default class Upload extends Component {
     constructor() {
         super();
         this.onDrop = this.onDrop.bind(this);
+        this.getDataTransferItems = this.getDataTransferItems.bind(this);
+    }
+
+    // Recursively traverse folder structure and extract all files
+    async traverseFileTree(item, path = '') {
+        const files = [];
+        if (item.isFile) {
+            return new Promise((resolve) => {
+                item.file((file) => {
+                    // Preserve folder structure in file name
+                    const relativePath = path + file.name;
+                    Object.defineProperty(file, 'name', {
+                        writable: true,
+                        value: relativePath
+                    });
+                    resolve([file]);
+                });
+            });
+        } else if (item.isDirectory) {
+            const dirReader = item.createReader();
+            return new Promise((resolve) => {
+                const readEntries = () => {
+                    dirReader.readEntries(async (entries) => {
+                        if (entries.length === 0) {
+                            resolve(files);
+                        } else {
+                            for (const entry of entries) {
+                                const entryFiles = await this.traverseFileTree(
+                                    entry,
+                                    path + item.name + '/'
+                                );
+                                files.push(...entryFiles);
+                            }
+                            // Continue reading (directories may have more than 100 entries)
+                            readEntries();
+                        }
+                    });
+                };
+                readEntries();
+            });
+        }
+        return files;
+    }
+
+    // Custom data transfer handler that supports folders
+    async getDataTransferItems(event) {
+        const {useFsAccessApi} = this.props;
+        
+        // If folder support is not enabled, use default behavior
+        if (!useFsAccessApi) {
+            if (event.dataTransfer) {
+                return Array.from(event.dataTransfer.files);
+            } else if (event.target && event.target.files) {
+                return Array.from(event.target.files);
+            }
+            return [];
+        }
+
+        // Handle drag-and-drop with folder support
+        if (event.dataTransfer && event.dataTransfer.items) {
+            const items = Array.from(event.dataTransfer.items);
+            const files = [];
+            
+            for (const item of items) {
+                if (item.kind === 'file') {
+                    const entry = item.webkitGetAsEntry ? item.webkitGetAsEntry() : null;
+                    if (entry) {
+                        const entryFiles = await this.traverseFileTree(entry);
+                        files.push(...entryFiles);
+                    } else {
+                        // Fallback for browsers without webkitGetAsEntry
+                        const file = item.getAsFile();
+                        if (file) {
+                            files.push(file);
+                        }
+                    }
+                }
+            }
+            return files;
+        }
+        
+        // Handle file picker (already works with webkitdirectory attribute)
+        if (event.target && event.target.files) {
+            return Array.from(event.target.files);
+        }
+        
+        // Fallback
+        if (event.dataTransfer && event.dataTransfer.files) {
+            return Array.from(event.dataTransfer.files);
+        }
+        
+        return [];
     }
 
     onDrop(files) {
@@ -55,6 +147,7 @@ export default class Upload extends Component {
             max_size,
             min_size,
             multiple,
+            useFsAccessApi,
             className,
             className_active,
             className_reject,
@@ -69,6 +162,14 @@ export default class Upload extends Component {
         const disabledStyle = className_disabled ? undefined : style_disabled;
         const rejectStyle = className_reject ? undefined : style_reject;
 
+        // For react-dropzone v4.1.2, we need to add webkitdirectory attribute manually
+        // when useFsAccessApi is enabled to support folder selection
+        const inputProps = useFsAccessApi ? {
+            webkitdirectory: 'true',
+            directory: 'true',
+            mozdirectory: 'true'
+        } : {};
+
         return (
             <LoadingElement id={id}>
                 <Dropzone
@@ -79,6 +180,8 @@ export default class Upload extends Component {
                     maxSize={max_size === -1 ? Infinity : max_size}
                     minSize={min_size}
                     multiple={multiple}
+                    inputProps={inputProps}
+                    getDataTransferItems={this.getDataTransferItems}
                     className={className}
                     activeClassName={className_active}
                     rejectClassName={className_reject}
diff --git a/components/dash-core-components/tests/integration/upload/test_folder_upload.py b/components/dash-core-components/tests/integration/upload/test_folder_upload.py
new file mode 100644
index 0000000000..9a68410a3b
--- /dev/null
+++ b/components/dash-core-components/tests/integration/upload/test_folder_upload.py
@@ -0,0 +1,167 @@
+import os
+from dash import Dash, Input, Output, dcc, html
+
+
+def test_upfd001_folder_upload_prop_exists(dash_dcc):
+    """
+    Test that useFsAccessApi prop is available on dcc.Upload component.
+
+    Note: Full end-to-end testing of folder upload functionality is limited
+    because the File System Access API requires user interaction and browser
+    permissions that cannot be fully automated with Selenium. This test verifies
+    that the prop is correctly passed to the component.
+    """
+    app = Dash(__name__)
+
+    app.layout = html.Div(
+        [
+            html.Div("Folder Upload Test", id="title"),
+            dcc.Upload(
+                id="upload-folder",
+                children=html.Div(
+                    ["Drag and Drop or ", html.A("Select Files or Folders")]
+                ),
+                style={
+                    "width": "100%",
+                    "height": "60px",
+                    "lineHeight": "60px",
+                    "borderWidth": "1px",
+                    "borderStyle": "dashed",
+                    "borderRadius": "5px",
+                    "textAlign": "center",
+                },
+                multiple=True,
+                useFsAccessApi=True,  # Enable folder upload
+            ),
+            html.Div(id="output"),
+        ]
+    )
+
+    @app.callback(
+        Output("output", "children"),
+        [Input("upload-folder", "contents")],
+    )
+    def update_output(contents_list):
+        if contents_list is not None:
+            return html.Div(
+                [
+                    html.Div(f"Number of files uploaded: {len(contents_list)}"),
+                ]
+            )
+        return html.Div("No files uploaded yet")
+
+    dash_dcc.start_server(app)
+
+    # Wait for the component to render
+    dash_dcc.wait_for_element("#upload-folder")
+
+    # Verify the title renders correctly
+    dash_dcc.wait_for_text_to_equal("#title", "Folder Upload Test")
+
+    # Verify initial state
+    dash_dcc.wait_for_text_to_equal("#output", "No files uploaded yet")
+
+    assert dash_dcc.get_logs() == []
+
+
+def test_upfd002_folder_upload_with_multiple_files(dash_dcc):
+    """
+    Test uploading multiple files with useFsAccessApi enabled.
+
+    This test simulates multiple file upload to verify the API remains
+    compatible when useFsAccessApi is enabled.
+    """
+    # Create test files
+    test_dir = os.path.join(os.path.dirname(__file__), "upload-assets")
+    test_file1 = os.path.join(test_dir, "upft001.csv")
+    test_file2 = os.path.join(test_dir, "upft001.png")
+
+    app = Dash(__name__)
+
+    app.layout = html.Div(
+        [
+            html.Div("Multiple Files Test", id="title"),
+            dcc.Upload(
+                id="upload-multiple",
+                children=html.Div(["Drag and Drop or ", html.A("Select Files")]),
+                style={
+                    "width": "100%",
+                    "height": "60px",
+                    "lineHeight": "60px",
+                    "borderWidth": "1px",
+                    "borderStyle": "dashed",
+                    "borderRadius": "5px",
+                    "textAlign": "center",
+                },
+                multiple=True,
+                useFsAccessApi=True,
+            ),
+            html.Div(id="output"),
+        ]
+    )
+
+    @app.callback(
+        Output("output", "children"),
+        [Input("upload-multiple", "contents")],
+    )
+    def update_output(contents_list):
+        if contents_list is not None:
+            return html.Div(
+                [
+                    html.Div(f"Uploaded {len(contents_list)} file(s)", id="file-count"),
+                ]
+            )
+        return html.Div("No files uploaded")
+
+    dash_dcc.start_server(app)
+
+    # Find the file input and upload multiple files
+    upload_input = dash_dcc.wait_for_element("#upload-multiple input[type=file]")
+
+    # Upload multiple files - Selenium requires absolute paths joined with newline
+    # Note: This simulates multiple file selection, not folder selection
+    files_to_upload = "\n".join(
+        [os.path.abspath(test_file1), os.path.abspath(test_file2)]
+    )
+    upload_input.send_keys(files_to_upload)
+
+    # Wait for the callback to complete
+    dash_dcc.wait_for_text_to_equal("#file-count", "Uploaded 2 file(s)", timeout=5)
+
+    assert dash_dcc.get_logs() == []
+
+
+def test_upfd003_folder_upload_disabled_by_default(dash_dcc):
+    """
+    Test that useFsAccessApi is disabled by default (False).
+    """
+    app = Dash(__name__)
+
+    app.layout = html.Div(
+        [
+            html.Div("Default Behavior Test", id="title"),
+            dcc.Upload(
+                id="upload-default",
+                children=html.Div(["Drag and Drop or ", html.A("Select Files")]),
+                style={
+                    "width": "100%",
+                    "height": "60px",
+                    "lineHeight": "60px",
+                    "borderWidth": "1px",
+                    "borderStyle": "dashed",
+                    "borderRadius": "5px",
+                    "textAlign": "center",
+                },
+                # useFsAccessApi not specified, should default to False
+            ),
+            html.Div(id="output", children="Upload ready"),
+        ]
+    )
+
+    dash_dcc.start_server(app)
+
+    # Wait for the component to render
+    dash_dcc.wait_for_element("#upload-default")
+    dash_dcc.wait_for_text_to_equal("#output", "Upload ready")
+
+    assert dash_dcc.get_logs() == []