diff --git a/pkg/services/folder/folderimpl/folder.go b/pkg/services/folder/folderimpl/folder.go
index 586d0d3d3bc..b66f4e28d31 100644
--- a/pkg/services/folder/folderimpl/folder.go
+++ b/pkg/services/folder/folderimpl/folder.go
@@ -675,6 +675,7 @@ func (s *Service) Create(ctx context.Context, cmd *folder.CreateFolderCommand) (
 
 	var nestedFolder *folder.Folder
 	var dash *dashboards.Dashboard
+	var f *folder.Folder
 	err = s.db.InTransaction(ctx, func(ctx context.Context) error {
 		if dash, err = s.dashboardStore.SaveDashboard(ctx, *saveDashboardCmd); err != nil {
 			return toFolderError(err)
@@ -696,17 +697,18 @@ func (s *Service) Create(ctx context.Context, cmd *folder.CreateFolderCommand) (
 			return err
 		}
 
+		f = dashboards.FromDashboard(dash)
+		if nestedFolder != nil && nestedFolder.ParentUID != "" {
+			f.ParentUID = nestedFolder.ParentUID
+		}
+		if err = s.setDefaultFolderPermissions(ctx, cmd.OrgID, user, f); err != nil {
+			return err
+		}
+
 		return nil
 	})
-	if err != nil {
-		return nil, err
-	}
 
-	f := dashboards.FromDashboard(dash)
-	if nestedFolder != nil && nestedFolder.ParentUID != "" {
-		f.ParentUID = nestedFolder.ParentUID
-	}
-	if err = s.setDefaultFolderPermissions(ctx, cmd.OrgID, user, f); err != nil {
+	if err != nil {
 		return nil, err
 	}