diff --git a/controllers/alertrulegroup_controller.go b/controllers/alertrulegroup_controller.go
index 07589b545..e6d434513 100644
--- a/controllers/alertrulegroup_controller.go
+++ b/controllers/alertrulegroup_controller.go
@@ -114,8 +114,12 @@ func (r *GrafanaAlertRuleGroupReconciler) Reconcile(ctx context.Context, req ctr
 	log.Info("found matching Grafana instances for group", "count", len(instances))
 
 	folderUID, err := getFolderUID(ctx, r.Client, group)
-	if err != nil || folderUID == "" {
-		return ctrl.Result{}, fmt.Errorf("folder uid not found: %w", err)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf(ErrFetchingFolder, err)
+	}
+
+	if folderUID == "" {
+		return ctrl.Result{}, fmt.Errorf("folder uid not found, alert rule must reference a folder")
 	}
 
 	editable := "true" //nolint:goconst
diff --git a/controllers/controller_shared.go b/controllers/controller_shared.go
index fe877d179..03e7b79b1 100644
--- a/controllers/controller_shared.go
+++ b/controllers/controller_shared.go
@@ -51,7 +51,10 @@ const (
 	grafanaFinalizer = "operator.grafana.com/finalizer"
 )
 
-var ErrNoMatchingInstances = fmt.Errorf("no matching instances")
+var (
+	ErrNoMatchingInstances = fmt.Errorf("no matching instances")
+	ErrFetchingFolder      = "fetching folder to resolve uid: %w"
+)
 
 type GrafanaCommonReconciler interface {
 	Get(ctx context.Context, key client.ObjectKey, obj client.Object, opts ...client.GetOption) error
@@ -131,7 +134,7 @@ func GetScopedMatchingInstances(ctx context.Context, k8sClient client.Client, cr
 	return selectedList, nil
 }
 
-// getFolderUID fetches the folderUID from an existing GrafanaFolder CR declared in the specified namespace
+// getFolderUID returns the folderUID from an existing GrafanaFolder CR within the same namespace
 func getFolderUID(ctx context.Context, k8sClient client.Client, ref operatorapi.FolderReferencer) (string, error) {
 	if ref.FolderUID() != "" {
 		return ref.FolderUID(), nil
diff --git a/controllers/dashboard_controller.go b/controllers/dashboard_controller.go
index 6970c031c..93d613aef 100644
--- a/controllers/dashboard_controller.go
+++ b/controllers/dashboard_controller.go
@@ -157,6 +157,11 @@ func (r *GrafanaDashboardReconciler) Reconcile(ctx context.Context, req ctrl.Req
 		return ctrl.Result{Requeue: true}, nil
 	}
 
+	folderUID, err := getFolderUID(ctx, r.Client, cr)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf(ErrFetchingFolder, err)
+	}
+
 	applyHomeErrors := make(map[string]string)
 	pluginErrors := make(map[string]string)
 	applyErrors := make(map[string]string)
@@ -174,7 +179,7 @@ func (r *GrafanaDashboardReconciler) Reconcile(ctx context.Context, req ctrl.Req
 		}
 
 		// then import the dashboard into the matching grafana instances
-		err = r.onDashboardCreated(ctx, &grafana, cr, dashboardModel, hash)
+		err = r.onDashboardCreated(ctx, &grafana, cr, dashboardModel, hash, folderUID)
 		if err != nil {
 			applyErrors[fmt.Sprintf("%s/%s", grafana.Namespace, grafana.Name)] = err.Error()
 		}
@@ -292,7 +297,7 @@ func (r *GrafanaDashboardReconciler) finalize(ctx context.Context, cr *v1beta1.G
 	return nil
 }
 
-func (r *GrafanaDashboardReconciler) onDashboardCreated(ctx context.Context, grafana *v1beta1.Grafana, cr *v1beta1.GrafanaDashboard, dashboardModel map[string]any, hash string) error {
+func (r *GrafanaDashboardReconciler) onDashboardCreated(ctx context.Context, grafana *v1beta1.Grafana, cr *v1beta1.GrafanaDashboard, dashboardModel map[string]any, hash, folderUID string) error {
 	log := logf.FromContext(ctx)
 
 	if grafana.IsExternal() && cr.Spec.Plugins != nil {
@@ -304,11 +309,6 @@ func (r *GrafanaDashboardReconciler) onDashboardCreated(ctx context.Context, gra
 		return fmt.Errorf("creating grafana http client: %w", err)
 	}
 
-	folderUID, err := getFolderUID(ctx, r.Client, cr)
-	if err != nil {
-		return err
-	}
-
 	if folderUID == "" {
 		folderUID, err = r.GetOrCreateFolder(grafanaClient, cr)
 		if err != nil {
diff --git a/controllers/folder_controller.go b/controllers/folder_controller.go
index c9d57aaec..372a7471c 100644
--- a/controllers/folder_controller.go
+++ b/controllers/folder_controller.go
@@ -122,12 +122,17 @@ func (r *GrafanaFolderReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 	removeNoMatchingInstance(&folder.Status.Conditions)
 	folder.Status.NoMatchingInstances = false
 
+	parentFolderUID, err := getFolderUID(ctx, r.Client, folder)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf(ErrFetchingFolder, err)
+	}
+
 	log.Info("found matching Grafana instances for folder", "count", len(instances))
 
 	applyErrors := make(map[string]string)
 
 	for _, grafana := range instances {
-		err = r.onFolderCreated(ctx, &grafana, folder)
+		err = r.onFolderCreated(ctx, &grafana, folder, parentFolderUID)
 		if err != nil {
 			applyErrors[fmt.Sprintf("%s/%s", grafana.Namespace, grafana.Name)] = err.Error()
 		}
@@ -183,7 +188,7 @@ func (r *GrafanaFolderReconciler) finalize(ctx context.Context, folder *grafanav
 	return nil
 }
 
-func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *grafanav1beta1.Grafana, cr *grafanav1beta1.GrafanaFolder) error {
+func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *grafanav1beta1.Grafana, cr *grafanav1beta1.GrafanaFolder, parentFolderUID string) error {
 	log := logf.FromContext(ctx)
 
 	title := cr.GetTitle()
@@ -194,11 +199,6 @@ func (r *GrafanaFolderReconciler) onFolderCreated(ctx context.Context, grafana *
 		return err
 	}
 
-	parentFolderUID, err := getFolderUID(ctx, r.Client, cr)
-	if err != nil {
-		return err
-	}
-
 	exists, remoteUID, remoteParent, err := r.Exists(grafanaClient, cr)
 	if err != nil {
 		return err
diff --git a/controllers/librarypanel_controller.go b/controllers/librarypanel_controller.go
index e838374d8..cc7786b80 100644
--- a/controllers/librarypanel_controller.go
+++ b/controllers/librarypanel_controller.go
@@ -151,10 +151,15 @@ func (r *GrafanaLibraryPanelReconciler) Reconcile(ctx context.Context, req ctrl.
 	removeNoMatchingInstance(&libraryPanel.Status.Conditions)
 	log.Info("found matching Grafana instances for library panel", "count", len(instances))
 
+	folderUID, err := getFolderUID(ctx, r.Client, libraryPanel)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf(ErrFetchingFolder, err)
+	}
+
 	applyErrors := make(map[string]string)
 
 	for _, grafana := range instances {
-		err := r.reconcileWithInstance(ctx, &grafana, libraryPanel, contentModel, hash)
+		err := r.reconcileWithInstance(ctx, &grafana, libraryPanel, contentModel, hash, folderUID)
 		if err != nil {
 			applyErrors[fmt.Sprintf("%s/%s", grafana.Namespace, grafana.Name)] = err.Error()
 		}
@@ -170,7 +175,7 @@ func (r *GrafanaLibraryPanelReconciler) Reconcile(ctx context.Context, req ctrl.
 	return ctrl.Result{RequeueAfter: libraryPanel.Spec.ResyncPeriod.Duration}, nil
 }
 
-func (r *GrafanaLibraryPanelReconciler) reconcileWithInstance(ctx context.Context, instance *v1beta1.Grafana, cr *v1beta1.GrafanaLibraryPanel, model map[string]any, hash string) error {
+func (r *GrafanaLibraryPanelReconciler) reconcileWithInstance(ctx context.Context, instance *v1beta1.Grafana, cr *v1beta1.GrafanaLibraryPanel, model map[string]any, hash, folderUID string) error {
 	if instance.IsInternal() {
 		err := ReconcilePlugins(ctx, r.Client, r.Scheme, instance, cr.Spec.Plugins, fmt.Sprintf("%v-librarypanel", cr.Name))
 		if err != nil {
@@ -185,11 +190,6 @@ func (r *GrafanaLibraryPanelReconciler) reconcileWithInstance(ctx context.Contex
 		return err
 	}
 
-	folderUID, err := getFolderUID(ctx, r.Client, cr)
-	if err != nil {
-		return err
-	}
-
 	uid := content.CustomUIDOrUID(cr, fmt.Sprintf("%s", model["uid"]))
 	name := fmt.Sprintf("%s", model["name"])