diff --git a/CHANGELOG.md b/CHANGELOG.md
index 78c99f47..d29b9430 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,7 @@
 # Changelog
 
 ### [Unreleased]
+* Added support for `single_level` query parameter in Folders API for Microsoft accounts
 * Added support for `include_hidden_folders` query parameter in folders list endpoint for Microsoft accounts to control whether hidden folders are included in the response
 
 ### 6.5.0 / 2025-06-13
diff --git a/examples/folders/folders_example.rb b/examples/folders/folders_example.rb
new file mode 100755
index 00000000..f593ddd7
--- /dev/null
+++ b/examples/folders/folders_example.rb
@@ -0,0 +1,189 @@
+#!/usr/bin/env ruby
+# frozen_string_literal: true
+
+# Example demonstrating the single_level query parameter in the Nylas Ruby SDK Folders API
+#
+# This example shows how to:
+# 1. List folders with default multi-level hierarchy
+# 2. List folders with single-level hierarchy (Microsoft accounts only)
+# 3. Combine single_level with other query parameters
+#
+# Prerequisites:
+# - Ruby 3.0 or later
+# - A Nylas API key
+# - A grant ID (connected email account, preferably Microsoft for full functionality)
+#
+# Environment variables needed:
+# export NYLAS_API_KEY="your_api_key"
+# export NYLAS_GRANT_ID="your_grant_id"
+# export NYLAS_API_URI="https://api.us.nylas.com"  # Optional
+#
+# Alternatively, create a .env file in the examples directory with:
+# NYLAS_API_KEY=your_api_key
+# NYLAS_GRANT_ID=your_grant_id
+# NYLAS_API_URI=https://api.us.nylas.com
+
+$LOAD_PATH.unshift File.expand_path("../../lib", __dir__)
+require "nylas"
+require "json"
+
+# Simple .env file loader
+def load_env_file
+  env_file = File.expand_path("../.env", __dir__)
+  return unless File.exist?(env_file)
+
+  puts "Loading environment variables from .env file..."
+  File.readlines(env_file).each do |line|
+    line = line.strip
+    next if line.empty? || line.start_with?("#")
+
+    key, value = line.split("=", 2)
+    next unless key && value
+
+    # Remove quotes if present
+    value = value.gsub(/\A['"]|['"]\z/, "")
+    ENV[key] = value
+  end
+end
+
+def list_folders_multi_level(nylas, grant_id)
+  puts "\n=== Listing Folders with Multi-Level Hierarchy (Default) ==="
+
+  folders, request_id, next_cursor = nylas.folders.list(
+    identifier: grant_id
+  )
+
+  puts "Found #{folders.length} folders in multi-level hierarchy"
+  display_folders(folders)
+  puts "Request ID: #{request_id}"
+  puts "Next cursor: #{next_cursor || 'None'}"
+
+  folders
+end
+
+def list_folders_single_level(nylas, grant_id)
+  puts "\n=== Listing Folders with Single-Level Hierarchy (Microsoft Only) ==="
+
+  folders, request_id, next_cursor = nylas.folders.list(
+    identifier: grant_id,
+    query_params: { single_level: true }
+  )
+
+  puts "Found #{folders.length} folders in single-level hierarchy"
+  display_folders(folders)
+  puts "Request ID: #{request_id}"
+  puts "Next cursor: #{next_cursor || 'None'}"
+
+  folders
+end
+
+def list_folders_with_additional_params(nylas, grant_id)
+  puts "\n=== Listing Folders with Single-Level + Additional Parameters ==="
+
+  folders, request_id, next_cursor = nylas.folders.list(
+    identifier: grant_id,
+    query_params: {
+      single_level: true,
+      limit: 5
+    }
+  )
+
+  puts "Found #{folders.length} folders (limited to 5) in single-level hierarchy"
+  display_folders(folders)
+  puts "Request ID: #{request_id}"
+  puts "Next cursor: #{next_cursor || 'None'}"
+
+  folders
+end
+
+def display_folders(folders)
+  if folders.empty?
+    puts "  No folders found"
+    return
+  end
+
+  folders.each do |folder|
+    parent_info = folder[:parent_id] ? "Parent: #{folder[:parent_id]}" : "Root folder"
+    system_folder = folder[:system_folder] ? " (System)" : ""
+    puts "  - #{folder[:name]}#{system_folder}"
+    puts "    ID: #{folder[:id]}"
+    puts "    #{parent_info}"
+    puts "    Unread: #{folder[:unread_count] || 0}, Total: #{folder[:total_count] || 0}"
+    puts
+  end
+end
+
+def demonstrate_single_level_parameter
+  puts "\n=== Single-Level Parameter Documentation ==="
+  puts "The single_level parameter is designed for Microsoft accounts and controls folder hierarchy:"
+  puts "- single_level: true  -> Retrieves folders from a single-level hierarchy only"
+  puts "- single_level: false -> Retrieves folders across a multi-level hierarchy (default)"
+  puts "- This parameter is most effective with Microsoft Exchange/Outlook accounts"
+  puts "- Other providers may not show significant differences in behavior"
+end
+
+def main
+  # Load .env file if it exists
+  load_env_file
+
+  # Check for required environment variables
+  api_key = ENV["NYLAS_API_KEY"]
+  grant_id = ENV["NYLAS_GRANT_ID"]
+
+  raise "NYLAS_API_KEY environment variable is not set" unless api_key
+  raise "NYLAS_GRANT_ID environment variable is not set" unless grant_id
+
+  puts "Using API key: #{api_key[0..4]}..."
+  puts "Using grant ID: #{grant_id[0..8]}..."
+
+  # Initialize the Nylas client
+  nylas = Nylas::Client.new(
+    api_key: api_key,
+    api_uri: ENV["NYLAS_API_URI"] || "https://api.us.nylas.com"
+  )
+
+  puts "\n=== Nylas Folders Single-Level Parameter Example ==="
+
+  begin
+    # Demonstrate the parameter concept
+    demonstrate_single_level_parameter
+
+    # Example 1: List folders with default multi-level hierarchy
+    multi_level_folders = list_folders_multi_level(nylas, grant_id)
+
+    # Example 2: List folders with single-level hierarchy
+    single_level_folders = list_folders_single_level(nylas, grant_id)
+
+    # Example 3: List folders with single-level and additional parameters
+    list_folders_with_additional_params(nylas, grant_id)
+
+    # Compare results if both calls returned folders
+    if multi_level_folders.any? && single_level_folders.any?
+      puts "\n=== Comparison ==="
+      puts "Multi-level hierarchy returned: #{multi_level_folders.length} folders"
+      puts "Single-level hierarchy returned: #{single_level_folders.length} folders"
+
+      if multi_level_folders.length != single_level_folders.length
+        puts "Different folder counts suggest the single_level parameter is working as expected."
+      else
+        puts "Same folder count - this might indicate:"
+        puts "- The account doesn't have nested folders"
+        puts "- The provider doesn't support hierarchical folders"
+        puts "- The account is not a Microsoft account"
+      end
+    end
+  rescue StandardError => e
+    puts "\nError occurred: #{e.message}"
+    puts "This might happen if:"
+    puts "- The API key or grant ID is invalid"
+    puts "- The account doesn't have permission to access folders"
+    puts "- Network connectivity issues"
+    puts "\nFull error details:"
+    puts e.inspect
+  end
+
+  puts "\n=== Example completed ==="
+end
+
+# Run the example if this file is executed directly
+main if __FILE__ == $PROGRAM_NAME
diff --git a/lib/nylas/resources/folders.rb b/lib/nylas/resources/folders.rb
index 00c61170..be0f2d44 100644
--- a/lib/nylas/resources/folders.rb
+++ b/lib/nylas/resources/folders.rb
@@ -15,6 +15,10 @@ class Folders < Resource
     #
     # @param identifier [String] Grant ID or email account to query.
     # @param query_params [Hash, nil] Query params to pass to the request.
+    #   Supported parameters include:
+    #   - single_level: (Boolean) For Microsoft accounts only. If true, retrieves folders from
+    #     a single-level hierarchy only. If false (default), retrieves folders across a
+    #     multi-level hierarchy.
     #   - include_hidden_folders [Boolean] (Microsoft only) When true, includes hidden folders.
     # @return [Array(Array(Hash), String, String)] The list of folders, API Request ID, and next cursor.
     def list(identifier:, query_params: nil)
diff --git a/spec/nylas/resources/folders_spec.rb b/spec/nylas/resources/folders_spec.rb
index e226cb5e..ab078c39 100644
--- a/spec/nylas/resources/folders_spec.rb
+++ b/spec/nylas/resources/folders_spec.rb
@@ -35,9 +35,35 @@
       expect(folders_response).to eq(list_response)
     end
 
-    it "calls the get method with the correct query parameters including include_hidden_folders" do
+    it "calls the get method with query parameters including single_level" do
       identifier = "abc-123-grant-id"
-      query_params = { include_hidden_folders: true }
+      query_params = { single_level: true }
+      path = "#{api_uri}/v3/grants/#{identifier}/folders"
+      allow(folders).to receive(:get_list)
+        .with(path: path, query_params: query_params)
+        .and_return(list_response)
+
+      folders_response = folders.list(identifier: identifier, query_params: query_params)
+
+      expect(folders_response).to eq(list_response)
+    end
+
+    it "calls the get method with query parameters including single_level set to false" do
+      identifier = "abc-123-grant-id"
+      query_params = { single_level: false }
+      path = "#{api_uri}/v3/grants/#{identifier}/folders"
+      allow(folders).to receive(:get_list)
+        .with(path: path, query_params: query_params)
+        .and_return(list_response)
+
+      folders_response = folders.list(identifier: identifier, query_params: query_params)
+
+      expect(folders_response).to eq(list_response)
+    end
+
+    it "calls the get method with multiple query parameters including single_level" do
+      identifier = "abc-123-grant-id"
+      query_params = { single_level: true, limit: 10, include_hidden_folders: true }
       path = "#{api_uri}/v3/grants/#{identifier}/folders"
       allow(folders).to receive(:get_list)
         .with(path: path, query_params: query_params)