diff --git a/docs/parity.md b/docs/parity.md
index ca6d974e6..0d1c7d10d 100644
--- a/docs/parity.md
+++ b/docs/parity.md
@@ -150,8 +150,8 @@ under the UI command that wraps it (a no-op error); the UI command now wins.
 | LR-LIB-ALLPHOTOS | All photos | P0 | ✅ | `cmd:library.source`, `crates/ui-egui/src/panels/left.rs` | |
 | LR-LIB-RECENT-ADDED | Recently added | P1 | ✅ | `cmd:library.source` (`recentlyAdded`), `crates/engine/src/view.rs` (`RECENT_DAYS`) | photos imported in the 30 days up to the latest import, newest import first, grouped by import day |
 | LR-LIB-BYDATE | Browse by date | P1 | ✅ | `cmd:library.filter` (`date`), `crates/ui-egui/src/panels/left.rs` (`date_row`), `crates/catalog/src/query.rs` (`date_groups`) | year → month → day tree with library-wide counts; a row filters the current source by that date. Active filters show as removable chips under the grid header (`crates/ui-egui/src/panels/chips.rs`, with “+N more” and Clear all), the header counts “N of M photos” (matching of the source's total), a badge on the top-bar filter icon counts them, and an empty result says no photos match the active filters |
-| LR-LIB-ALBUM | Albums | P0 | ✅ | `cmd:album.create`, `cmd:album.rename`, `cmd:album.delete`, `cmd:album.addPhotos`, `cmd:album.removePhotos`, `cmd:dialog.newAlbum` | no drag photos onto album (LR-BEHAV-DRAGDROP), no album sort |
-| LR-LIB-FOLDER | Folders of albums | P0 | ✅ | `cmd:album.create` (`folder`, `parent`), `cmd:album.move`, `cmd:dialog.newAlbum` / `cmd:dialog.newFolder` / `cmd:dialog.smartAlbum` / `cmd:dialog.newSmartAlbum` (`parent`), `crates/ui-egui/src/panels/left.rs` (`albums_tree`, `folder_menu`, `disclosure_triangle`), `crates/ui-egui/src/tests_panels.rs` | folders nest and fold with the same disclosure triangle as Local / By Date / Folders / Keywords (`albumToggle:<id>`; the row folds them too; open by default); right-click a folder ▸ New ▸ Album… / Smart Album… / Smart Album from Filter… / Folder… creates inside it (the `dialog.new*` commands take `parent`), opening the folders down to the new row; creating is only allowed inside folders; moving: drag an album or folder row onto a folder (outlined when allowed; a closed folder opens after 0.6 s under the pointer; a "Top Level" zone under the tree appears while dragging something that sits in a folder), the Move to menu or `album.move` — one undo step each; not onto a plain album, itself or something inside it; no custom order (alphabetical, folders first) |
+| LR-LIB-ALBUM | Albums | P0 | ✅ | `cmd:album.create`, `cmd:album.rename`, `cmd:album.delete`, `cmd:album.addPhotos`, `cmd:album.removePhotos`, `cmd:dialog.newAlbum` | photos dragged from the grid onto an album row are added to it (LR-BEHAV-DRAGDROP) |
+| LR-LIB-FOLDER | Folders of albums | P0 | ✅ | `cmd:album.create` (`folder`, `parent`), `cmd:album.move`, `cmd:album.reorder`, `cmd:album.sort`, `cmd:dialog.newAlbum` / `cmd:dialog.newFolder` / `cmd:dialog.smartAlbum` / `cmd:dialog.newSmartAlbum` (`parent`), `crates/ui-egui/src/panels/left.rs` (`albums_tree`, `folder_menu`, `disclosure_triangle`), `crates/ui-egui/src/tests_panels.rs` | folders nest and fold with the same disclosure triangle as Local / By Date / Folders / Keywords (`albumToggle:<id>`; the row folds them too; open by default); right-click a folder ▸ New ▸ Create Album… / Create Smart Album… / Create Smart Album from Filter… / Create Folder… creates inside it (the `dialog.new*` commands take `parent`), opening the folders down to the new row; creating is only allowed inside folders; moving: drag an album or folder row onto a folder (outlined when allowed; a closed folder opens after 0.6 s under the pointer; a "Top Level" zone under the tree appears while dragging something that sits in a folder), the Move to menu or `album.move` — one undo step each; not onto a plain album, itself or something inside it; drop on the top / bottom half of an album or the edge of a folder to place it there by hand (`cmd:album.reorder`, a line shows the place; ordered per folder, folders stay first, new albums go after the ordered ones; right-click ▸ Sort Contents A–Z or ＋ ▸ Sort Albums A–Z = `cmd:album.sort`) |
 | LR-LIB-SMARTALBUM | Smart albums | P1 | ✅ | `cmd:album.createSmart`, `cmd:album.setRules`, `crates/catalog/src/query.rs`, `crates/ui-egui/src/panels/filterbar.rs`, `crates/ui-egui/src/lib.rs` (`album_counts`) | saved filters (rating/flag/label/kind/edited/keyword/camera/lens/date range/text/album), live; match-all only (no any/none rule groups, no rule editor dialog — rules come from the filter bar or `album.setRules`); sidebar counts are cached per catalog revision (and per minute while an “in the last…” rule is used), counted without building id lists |
 | LR-LIB-SHARED-ALBUM | Shared albums | P2 | ⬜ | | needs a sharing service |
 | LR-LIB-OFFLINE | Keep album offline | P2 | 🚫 | | not applicable: local-first library |
@@ -620,7 +620,7 @@ visible menu bar yet: the menu model is only exposed through the control channel
 | MENU-HELP-SYSINFO | System info | P2 | ✅ | `cmd:app.systemInfo`, `cmd:library.info` | Help ▸ System Info…: version, OS, CPU threads, GPU, memory budget, preview size, library, timings; Copy to Clipboard; JSON for agents (`open: false`) |
 | MENU-CTX-GRID | Photo context menu | P0 | ✅ | `crates/ui-egui/src/panels/grid.rs` (`context_menu`) | rate, flag, label, add to / remove from album, rename, virtual copy, version, stack, copy / paste / paste selected, reset, merge, rotate, show in Finder, export / export with preset, set as album cover (in an album), delete (restore / delete permanently in Recently Deleted) |
 | MENU-CTX-DETAIL | Loupe context menu | P1 | ✅ | `crates/ui-egui/src/panels/detail.rs` | Zoom submenu (fit, 100%, in, out), then the photo menu |
-| MENU-CTX-ALBUM | Album / folder row menu | P0 | ✅ | `crates/ui-egui/src/panels/left.rs` (`folder_menu`), `cmd:album.move`, `cmd:dialog.export` | add selected, export album (dialog / preset), New ▸ Album / Smart Album / Smart Album from Filter / Folder (on a folder: made inside it), move to a folder or the top level, rename, delete; smart albums: update rules |
+| MENU-CTX-ALBUM | Album / folder row menu | P0 | ✅ | `crates/ui-egui/src/panels/left.rs` (`folder_menu`), `cmd:album.move`, `cmd:dialog.export` | add selected, export album (dialog / preset), New ▸ Create Album / Smart Album / Smart Album from Filter / Folder (on a folder: made inside it), move to a folder or the top level, rename, delete; smart albums: update rules |
 | MENU-CTX-MASK | Mask / component menu | P0 | ✅ | `crates/ui-egui/src/panels/masking.rs` (`mask_menu`, `component_row_menu`), `cmd:mask.component` | mask rows: duplicate (and invert), invert, show/hide, move, rename, delete; component rows (right-click or "…"): invert, duplicate, mode (add / subtract / intersect), intersect with / subtract a new component, rename (also double-click), delete (the last one deletes the mask) |
 | MENU-CTX-PRESET | Preset menu | P1 | ✅ | `crates/ui-egui/src/panels/presets.rs` | favourite, update with current settings, rename, move to group, delete; group: export |
 | MENU-CTX-PROFILE | Profile favourites | P2 | ✅ | `cmd:profile.favorite`, `crates/ui-egui/src/panels/profiles.rs` | star in the profile browser; Favorites group first |
diff --git a/docs/whats-new.md b/docs/whats-new.md
index f503d56fd..5d9a173b0 100644
--- a/docs/whats-new.md
+++ b/docs/whats-new.md
@@ -2,6 +2,19 @@
 
 ## October 2026
 
+### Albums tree
+- Album folders fold with the same disclosure triangle as Local, By Date, Folders and Keywords.
+- Right-click a folder ▸ New ▸ Create Album… / Create Smart Album… / Create Smart Album from Filter… / Create Folder…
+  makes it inside that folder (`dialog.newAlbum`, `dialog.newFolder`, `dialog.smartAlbum`, `dialog.newSmartAlbum` take `parent`).
+- Drag an album or folder onto a folder to move it there (a closed folder opens after 0.6 s under the pointer; a
+  "Top Level" strip under the tree takes it back out; Esc cancels). Drop on the top or bottom half of another album,
+  or the edge of another folder, to place it before or after it: that folder is then ordered by hand. Right-click ▸
+  Sort Contents A–Z (or ＋ ▸ Sort Albums A–Z at the top level) goes back to by name. To put a folder after an open
+  folder, fold that folder first (the bottom of an open folder means "inside"). Agents use `album.reorder`
+  (`id`, `parent?`, `before?`) and `album.sort`.
+- The catalog format is now version 3 (`Album.order`, `Op::SetAlbumOrder`). Once this version has opened a library,
+  older versions refuse it, as with every format change.
+
 ### Library keyboard culling
 - Colour labels tint thumbnail surrounds in Square Grid and the Detail filmstrip, and a translucent footer along the bottom of the photo in Photo Grid. Label confirmations use a matching pale colour.
 - Setting or clearing a colour label shows a brief bottom confirmation, like rating a photo; custom label names appear in the message too.