diff --git a/pkg/registry/apis/folders/parents.go b/pkg/registry/apis/folders/parents.go
index 61d694b3e36..ef765e94aa5 100644
--- a/pkg/registry/apis/folders/parents.go
+++ b/pkg/registry/apis/folders/parents.go
@@ -72,11 +72,6 @@ func newParentsGetter(getter rest.Getter, maxDepth int) parentsGetter {
 				break
 			}
 
-			if len(info.Items) >= maxDepth {
-				err = folderLegacy.ErrMaximumDepthReached
-				break
-			}
-
 			found[parentFolder.Name] = true
 			folder = parentFolder
 		}
diff --git a/pkg/registry/apis/folders/parents_test.go b/pkg/registry/apis/folders/parents_test.go
index ee1326ae99b..34bbbef9a0f 100644
--- a/pkg/registry/apis/folders/parents_test.go
+++ b/pkg/registry/apis/folders/parents_test.go
@@ -111,21 +111,6 @@ func TestParents(t *testing.T) {
 			},
 			expectedErr: "cyclic folder references found",
 		},
-		{
-			name: "too deep",
-			request: input{
-				name:   "test",
-				folder: "p1",
-			},
-			maxDepth:    3,
-			expectedErr: "[folder.maximum-depth-reached]",
-			expected: &folders.FolderInfoList{Items: []folders.FolderInfo{
-				{Name: "test", Parent: "p1"},
-				{Name: "p1", Parent: "p2"},
-				{Name: "p2", Parent: "p3"},
-				{Name: "p3", Parent: "p4"}, // should not try calling p4
-			}},
-		},
 	}
 
 	for _, tt := range tests {
diff --git a/pkg/registry/apis/folders/register_test.go b/pkg/registry/apis/folders/register_test.go
index 762fb309278..6f9cd177fbe 100644
--- a/pkg/registry/apis/folders/register_test.go
+++ b/pkg/registry/apis/folders/register_test.go
@@ -2,6 +2,7 @@ package folders
 
 import (
 	"context"
+	"fmt"
 	"testing"
 
 	"github.com/stretchr/testify/mock"
@@ -57,35 +58,6 @@ func TestFolderAPIBuilder_Validate_Create(t *testing.T) {
 				name: "valid-name",
 			},
 		},
-		{
-			name: "should not allow creating a folder in a tree that is too deep",
-			input: input{
-				obj: &folders.Folder{
-					Spec: folders.FolderSpec{
-						Title: "foo",
-					},
-				},
-				annotations: map[string]string{"grafana.app/folder": "p1"}, // already max depth
-				name:        "valid-name",
-			},
-			setupFn: func(m *grafanarest.MockStorage) {
-				m.On("Get", mock.Anything, "p1", mock.Anything).Return(
-					&folders.Folder{
-						ObjectMeta: metav1.ObjectMeta{
-							Name:        "p1",
-							Annotations: map[string]string{"grafana.app/folder": "p2"},
-						},
-					}, nil).Maybe()
-				m.On("Get", mock.Anything, "p2", mock.Anything).Return(
-					&folders.Folder{
-						ObjectMeta: metav1.ObjectMeta{
-							Name:        "p2",
-							Annotations: map[string]string{"grafana.app/folder": "p3"},
-						},
-					}, nil).Maybe()
-			},
-			err: folder.ErrMaximumDepthReached,
-		},
 		{
 			name: "should return error when title is empty",
 			input: input{
@@ -111,6 +83,59 @@ func TestFolderAPIBuilder_Validate_Create(t *testing.T) {
 			},
 			err: folder.ErrFolderCannotBeParentOfItself,
 		},
+		{
+			name: "should not allow creating a folder that will become too deep",
+			input: input{
+				annotations: map[string]string{utils.AnnoKeyFolder: "p1"},
+				obj: &folders.Folder{
+					Spec: folders.FolderSpec{
+						Title: "title",
+					},
+					ObjectMeta: metav1.ObjectMeta{
+						Name:        "p0",
+						Annotations: map[string]string{"grafana.app/folder": "p1"},
+					},
+				},
+				name: "p0",
+			},
+			setupFn: func(m *grafanarest.MockStorage) {
+				m.On("Get", mock.Anything, "p1", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name:        "p1",
+							Annotations: map[string]string{"grafana.app/folder": "p2"},
+						},
+					}, nil)
+				m.On("Get", mock.Anything, "p2", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name:        "p2",
+							Annotations: map[string]string{"grafana.app/folder": "p3"},
+						},
+					}, nil)
+				m.On("Get", mock.Anything, "p3", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name:        "p3",
+							Annotations: map[string]string{"grafana.app/folder": "p4"},
+						},
+					}, nil)
+				m.On("Get", mock.Anything, "p4", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name:        "p4",
+							Annotations: map[string]string{"grafana.app/folder": "p5"},
+						},
+					}, nil)
+				m.On("Get", mock.Anything, "p5", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name: "p5",
+						},
+					}, nil)
+			},
+			err: fmt.Errorf("folder max depth exceeded, max depth is 4"),
+		},
 	}
 
 	for _, tt := range tests {
@@ -148,7 +173,7 @@ func TestFolderAPIBuilder_Validate_Create(t *testing.T) {
 			if tt.err == nil {
 				require.NoError(t, err)
 			} else {
-				require.ErrorIs(t, err, tt.err)
+				require.Contains(t, err.Error(), tt.err.Error())
 				return
 			}
 		})
@@ -336,6 +361,12 @@ func TestFolderAPIBuilder_Validate_Update(t *testing.T) {
 							Annotations: map[string]string{"grafana.app/folder": "p4"},
 						},
 					}, nil)
+				m.On("Get", mock.Anything, "p4", mock.Anything).Return(
+					&folders.Folder{
+						ObjectMeta: metav1.ObjectMeta{
+							Name: "p4",
+						},
+					}, nil)
 			},
 			wantErr: true,
 		},