diff --git a/pkg/registry/apis/folders/legacy_storage.go b/pkg/registry/apis/folders/legacy_storage.go
index e168da572c0..e1e644fd9e3 100644
--- a/pkg/registry/apis/folders/legacy_storage.go
+++ b/pkg/registry/apis/folders/legacy_storage.go
@@ -66,7 +66,6 @@ func (s *legacyStorage) List(ctx context.Context, options *internalversion.ListO
 		return nil, err
 	}
 
-	parentUID := ""
 	// // translate grafana.app/* label selectors into field requirements
 	// requirements, newSelector, err := entity.ReadLabelSelectors(options.LabelSelector)
 	// if err != nil {
@@ -88,13 +87,13 @@ func (s *legacyStorage) List(ctx context.Context, options *internalversion.ListO
 		return nil, err
 	}
 
-	// When nested folders are not enabled, all folders are root folders
-	hits, err := s.service.GetChildren(ctx, &folder.GetChildrenQuery{
-		UID:          parentUID, // NOTE!  we should do a different query when nested folders are enabled!
+	// List must return all folders
+	hits, err := s.service.GetFolders(ctx, folder.GetFoldersQuery{
 		SignedInUser: user,
-		Limit:        paging.page,
 		OrgID:        orgId,
-		Page:         paging.limit,
+		// TODO: enable pagination
+		// Limit:        paging.page,
+		// Page:         paging.limit,
 	})
 	if err != nil {
 		return nil, err
diff --git a/pkg/registry/apis/folders/legacy_storage_test.go b/pkg/registry/apis/folders/legacy_storage_test.go
new file mode 100644
index 00000000000..76489ca8781
--- /dev/null
+++ b/pkg/registry/apis/folders/legacy_storage_test.go
@@ -0,0 +1,59 @@
+package folders
+
+import (
+	"context"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+	"k8s.io/apimachinery/pkg/api/meta"
+	metainternalversion "k8s.io/apimachinery/pkg/apis/meta/internalversion"
+
+	"github.com/grafana/grafana/pkg/apimachinery/identity"
+	"github.com/grafana/grafana/pkg/apis/folder/v0alpha1"
+	"github.com/grafana/grafana/pkg/services/folder"
+	"github.com/grafana/grafana/pkg/services/folder/foldertest"
+	"github.com/grafana/grafana/pkg/services/user"
+)
+
+func TestLegacyStorageList(t *testing.T) {
+	// Ensure List returns all folders existing in service folder, regardless of
+	// whether they are at root level or not
+
+	folderService := &foldertest.FakeService{}
+	folderService.ExpectedFolders = []*folder.Folder{
+		&folder.Folder{UID: "parent", Title: "Folder Parent", ParentUID: ""},
+		&folder.Folder{UID: "child", Title: "Folder Child", ParentUID: "parent"},
+		&folder.Folder{UID: "anotherparent1", Title: "Folder Another Parent 1", ParentUID: ""},
+		&folder.Folder{UID: "anotherparent1", Title: "Folder Another Parent 2", ParentUID: ""},
+	}
+
+	usr := &user.SignedInUser{UserID: 1}
+	ctx := identity.WithRequester(context.Background(), usr)
+
+	ls := legacyStorage{
+		service:    folderService,
+		namespacer: func(_ int64) string { return "1" },
+	}
+
+	ll, err := ls.List(ctx, &metainternalversion.ListOptions{})
+	require.Nil(t, err)
+	require.NotNil(t, ll)
+
+	list, err := meta.ExtractList(ll)
+	require.Nil(t, err)
+	require.NotNil(t, list)
+	require.Equal(t, len(list), 4)
+
+	uidsFromServiceFolder := []string{}
+	for _, f := range folderService.ExpectedFolders {
+		uidsFromServiceFolder = append(uidsFromServiceFolder, f.UID)
+	}
+
+	uidsReturnedByList := []string{}
+	for _, obj := range list {
+		f, ok := obj.(*v0alpha1.Folder)
+		require.Equal(t, true, ok)
+		uidsReturnedByList = append(uidsReturnedByList, f.ObjectMeta.Name)
+	}
+	require.ElementsMatch(t, uidsFromServiceFolder, uidsReturnedByList)
+}