diff --git a/docs/features/template-variables.md b/docs/features/template-variables.md
index d2e80ae27..2bd7f1224 100644
--- a/docs/features/template-variables.md
+++ b/docs/features/template-variables.md
@@ -35,6 +35,8 @@ Variables for task-specific data.
 | `{{projects}}` | All projects joined by `/` | No | Yes | `ProjectA/ProjectB` |
 | `{{projectFilePath}}` | Full path of the first project, without `.md` | No | Yes | `Work/Projects/ProjectA` |
 | `{{projectFilePaths}}` | Full paths of all projects, joined by `/` | No | Yes | `Work/Alpha/Personal/Beta` |
+| `{{projectFolder}}` | Folder containing the first project note (its file path without the note's own name) | No | Yes | `Work/Projects` |
+| `{{projectFolders}}` | Folders of all projects, joined by `/` | No | Yes | `Work/Personal` |
 | `{{dueDate}}` | Task due date | Yes | Yes | `2025-01-15` |
 | `{{scheduledDate}}` | Task scheduled date | Yes | Yes | `2025-01-10` |
 
diff --git a/docs/settings/task-defaults.md b/docs/settings/task-defaults.md
index 89ea0ebe9..767bc02d1 100644
--- a/docs/settings/task-defaults.md
+++ b/docs/settings/task-defaults.md
@@ -26,6 +26,8 @@ The **Default Tasks Folder** setting supports dynamic folder creation using temp
 - `{{projects}}` - All projects from the task's projects array, joined by `/`
 - `{{projectFilePath}}` - Full path of the first project, without `.md`
 - `{{projectFilePaths}}` - Full paths of all projects, without `.md`, joined by `/`
+- `{{projectFolder}}` - Folder containing the first project note (the project file path without the note's own name); empty when the project note is at the top level. Use this to store tasks beside their project note, e.g. `{{projectFolder}}` stores a task for `[[Areas/EFC/EFC]]` in `Areas/EFC/`
+- `{{projectFolders}}` - Folders of all projects, joined by `/`
 - `{{priority}}` - Task priority (e.g., "high", "medium", "low")
 - `{{status}}` - Task status (e.g., "todo", "in-progress", "done")
 - `{{title}}` - Task title (sanitized for folder names)
diff --git a/src/utils/folderTemplateProcessor.ts b/src/utils/folderTemplateProcessor.ts
index bacb9cf21..bb3089b8f 100644
--- a/src/utils/folderTemplateProcessor.ts
+++ b/src/utils/folderTemplateProcessor.ts
@@ -164,6 +164,22 @@ function getProjectFilePath(
 	return sanitizeProjectFilePath(rawPath);
 }
 
+/**
+ * Get the folder that contains a project note, i.e. the project file path with
+ * its final (basename) segment removed. Returns an empty string when the
+ * project note lives at the top level with no containing folder.
+ */
+function getProjectFolder(
+	project: string,
+	extractProjectFilePath?: (project: string) => string
+): string {
+	const filePath = getProjectFilePath(project, extractProjectFilePath);
+	if (!filePath) {
+		return "";
+	}
+	return filePath.split("/").slice(0, -1).join("/");
+}
+
 /**
  * Process a folder path template by replacing template variables with actual values
  *
@@ -188,6 +204,7 @@ function getProjectFilePath(
  * - {{context}}, {{contexts}} - First context or all contexts joined with /
  * - {{project}}, {{projects}} - First project or all projects joined with /
  * - {{projectFilePath}}, {{projectFilePaths}} - First project path or all project paths joined with /
+ * - {{projectFolder}}, {{projectFolders}} - Folder containing the first project note or all project folders joined with /
  * - {{priority}}, {{priorityShort}}
  * - {{status}}, {{statusShort}}
  * - {{title}}, {{titleLower}}, {{titleUpper}}, {{titleSnake}}, {{titleKebab}}, {{titleCamel}}, {{titlePascal}}
@@ -288,6 +305,22 @@ export function processFolderTemplate(
 				: "";
 		processedPath = processedPath.replace(/\{\{projectFilePaths\}\}/g, projectFilePaths);
 
+		// Handle project folder (folder containing the first project note)
+		const projectFolder =
+			Array.isArray(taskData.projects) && taskData.projects.length > 0
+				? getProjectFolder(taskData.projects[0], extractProjectFilePath)
+				: "";
+		processedPath = processedPath.replace(/\{\{projectFolder\}\}/g, projectFolder);
+
+		const projectFolders =
+			Array.isArray(taskData.projects) && taskData.projects.length > 0
+				? taskData.projects
+						.map((proj) => getProjectFolder(proj, extractProjectFilePath))
+						.filter((folder) => folder.length > 0)
+						.join("/")
+				: "";
+		processedPath = processedPath.replace(/\{\{projectFolders\}\}/g, projectFolders);
+
 		// Handle multiple contexts
 		const contexts =
 			Array.isArray(taskData.contexts) && taskData.contexts.length > 0
diff --git a/tests/unit/utils/folderTemplateProcessor.test.ts b/tests/unit/utils/folderTemplateProcessor.test.ts
index acc756964..8ac2e0f5d 100644
--- a/tests/unit/utils/folderTemplateProcessor.test.ts
+++ b/tests/unit/utils/folderTemplateProcessor.test.ts
@@ -143,6 +143,55 @@ describe('processFolderTemplate', () => {
 			expect(result).toBe('MyProject/OtherProject');
 		});
 
+		describe('{{projectFolder}} and {{projectFolders}}', () => {
+			// Resolve a wikilink to its full file path, mirroring how the plugin
+			// wires extractProjectFilePath in production.
+			const extractFilePath = (project: string) => {
+				const match = project.match(/^\[\[([^\]]+)\]\]$/);
+				return match ? match[1] : project;
+			};
+
+			it('should return the folder containing a nested project note', () => {
+				const result = processFolderTemplate('{{projectFolder}}', {
+					taskData: { projects: ['[[Areas/EFC/EFC]]'] },
+					extractProjectFilePath: extractFilePath,
+				});
+				expect(result).toBe('Areas/EFC');
+			});
+
+			it('should return an empty string for a top-level project note', () => {
+				const result = processFolderTemplate('{{projectFolder}}', {
+					taskData: { projects: ['[[EFC]]'] },
+					extractProjectFilePath: extractFilePath,
+				});
+				expect(result).toBe('');
+			});
+
+			it('should place a task beside its project note', () => {
+				const result = processFolderTemplate('{{projectFolder}}/{{title}}', {
+					taskData: { title: 'Practice plan', projects: ['[[EFC/EFC]]'] },
+					extractProjectFilePath: extractFilePath,
+				});
+				expect(result).toBe('EFC/Practice plan');
+			});
+
+			it('should join folders and drop empties for {{projectFolders}}', () => {
+				const result = processFolderTemplate('{{projectFolders}}', {
+					taskData: { projects: ['[[EFC/EFC]]', '[[TopLevel]]', '[[a/b/c]]'] },
+					extractProjectFilePath: extractFilePath,
+				});
+				expect(result).toBe('EFC/a/b');
+			});
+
+			it('should return an empty string when no projects are set', () => {
+				const result = processFolderTemplate('{{projectFolder}}', {
+					taskData: { projects: [] },
+					extractProjectFilePath: extractFilePath,
+				});
+				expect(result).toBe('');
+			});
+		});
+
 		it('should handle empty task arrays gracefully', () => {
 			const emptyTaskData: TaskTemplateData = {
 				contexts: [],