diff --git a/pkg/services/sqlstore/migrations/ualert/migration_test.go b/pkg/services/sqlstore/migrations/ualert/migration_test.go
index 2b441c510b2..c8536c91d83 100644
--- a/pkg/services/sqlstore/migrations/ualert/migration_test.go
+++ b/pkg/services/sqlstore/migrations/ualert/migration_test.go
@@ -14,6 +14,7 @@ import (
 
 	"github.com/grafana/grafana/pkg/components/simplejson"
 	"github.com/grafana/grafana/pkg/models"
+	ngModels "github.com/grafana/grafana/pkg/services/ngalert/models"
 	"github.com/grafana/grafana/pkg/services/sqlstore/migrations"
 	"github.com/grafana/grafana/pkg/services/sqlstore/migrations/ualert"
 	"github.com/grafana/grafana/pkg/services/sqlstore/migrator"
@@ -459,6 +460,49 @@ func TestDashAlertMigration(t *testing.T) {
 	}
 }
 
+// TestDashAlertMigration tests the execution of the main DashAlertMigration specifically for migrations of models.
+func TestDashAlertMigrationFolders(t *testing.T) {
+	// Run initial migration to have a working DB.
+	x := setupTestDB(t)
+
+	t.Run("when folder is missing put alert in General folder", func(t *testing.T) {
+		o := createOrg(t, 1)
+		folder1 := createDashboard(t, 1, o.Id, "folder-1")
+		folder1.IsFolder = true
+		dash1 := createDashboard(t, 3, o.Id, "dash1")
+		dash1.FolderId = folder1.Id
+		dash2 := createDashboard(t, 4, o.Id, "dash2")
+		dash2.FolderId = 22 // missing folder
+
+		a1 := createAlert(t, o.Id, dash1.Id, int64(1), "alert-1", []string{})
+		a2 := createAlert(t, o.Id, dash2.Id, int64(1), "alert-2", []string{})
+
+		_, err := x.Insert(o, folder1, dash1, dash2, a1, a2)
+		require.NoError(t, err)
+
+		runDashAlertMigrationTestRun(t, x)
+
+		rules := getAlertRules(t, x, o.Id)
+		require.Len(t, rules, 2)
+
+		var generalFolder models.Dashboard
+		_, err = x.Table(&models.Dashboard{}).Where("title = ? AND org_id = ?", ualert.GENERAL_FOLDER, o.Id).Get(&generalFolder)
+		require.NoError(t, err)
+
+		require.NotNil(t, generalFolder)
+
+		for _, rule := range rules {
+			var expectedFolder models.Dashboard
+			if rule.Title == a1.Name {
+				expectedFolder = *folder1
+			} else {
+				expectedFolder = generalFolder
+			}
+			require.Equal(t, expectedFolder.Uid, rule.NamespaceUID)
+		}
+	})
+}
+
 // setupTestDB prepares the sqlite database and runs OSS migrations to initialize the schemas.
 func setupTestDB(t *testing.T) *xorm.Engine {
 	t.Helper()
@@ -593,6 +637,18 @@ func teardown(t *testing.T, x *xorm.Engine) {
 	require.NoError(t, err)
 }
 
+func runDashAlertMigrationTestRun(t *testing.T, x *xorm.Engine) {
+	_, errDeleteMig := x.Exec("DELETE FROM migration_log WHERE migration_id = ?", ualert.MigTitle)
+	require.NoError(t, errDeleteMig)
+
+	alertMigrator := migrator.NewMigrator(x, &setting.Cfg{})
+	alertMigrator.AddMigration(ualert.RmMigTitle, &ualert.RmMigration{})
+	ualert.AddDashAlertMigration(alertMigrator)
+
+	errRunningMig := alertMigrator.Start(false, 0)
+	require.NoError(t, errRunningMig)
+}
+
 // setupLegacyAlertsTables inserts data into the legacy alerting tables that is needed for testing the migration.
 func setupLegacyAlertsTables(t *testing.T, x *xorm.Engine, legacyChannels []*models.AlertNotification, alerts []*models.Alert) {
 	t.Helper()
@@ -637,6 +693,14 @@ func setupLegacyAlertsTables(t *testing.T, x *xorm.Engine, legacyChannels []*mod
 	}
 }
 
+func getAlertRules(t *testing.T, x *xorm.Engine, orgId int64) []*ngModels.AlertRule {
+	rules := make([]*ngModels.AlertRule, 0)
+	err := x.Table("alert_rule").Where("org_id = ?", orgId).Find(&rules)
+	require.NoError(t, err)
+
+	return rules
+}
+
 // getAlertmanagerConfig retreives the Alertmanager Config from the database for a given orgId.
 func getAlertmanagerConfig(t *testing.T, x *xorm.Engine, orgId int64) *ualert.PostableUserConfig {
 	amConfig := ""
diff --git a/pkg/services/sqlstore/migrations/ualert/ualert.go b/pkg/services/sqlstore/migrations/ualert/ualert.go
index affd5aee479..53024bf96ff 100644
--- a/pkg/services/sqlstore/migrations/ualert/ualert.go
+++ b/pkg/services/sqlstore/migrations/ualert/ualert.go
@@ -248,11 +248,31 @@ func (m *migration) Exec(sess *xorm.Session, mg *migrator.Migrator) error {
 
 	// cache for folders created for dashboards that have custom permissions
 	folderCache := make(map[string]*dashboard)
+	
+	gf := func(dash dashboard, da dashAlert) (*dashboard, error) {
+		f, ok := folderCache[GENERAL_FOLDER]
+		if !ok {
+			// get or create general folder
+			f, err = m.getOrCreateGeneralFolder(dash.OrgId)
+			if err != nil {
+				return nil, MigrationError{
+					Err:     fmt.Errorf("failed to get or create general folder under organisation %d: %w", dash.OrgId, err),
+					AlertId: da.Id,
+				}
+			}
+			folderCache[GENERAL_FOLDER] = f
+		}
+		// No need to assign default permissions to general folder
+		// because they are included to the query result if it's a folder with no permissions
+		// https://github.com/grafana/grafana/blob/076e2ce06a6ecf15804423fcc8dca1b620a321e5/pkg/services/sqlstore/dashboard_acl.go#L109
+		return f, nil
+	}
 
 	// Store of newly created rules to later create routes
 	rulesPerOrg := make(map[int64]map[string]dashAlert)
 
 	for _, da := range dashAlerts {
+		l := mg.Logger.New("ruleID", da.Id, "ruleName", da.Name, "dashboardUID", da.DashboardUID, "orgID", da.OrgId)
 		newCond, err := transConditions(*da.ParsedSettings, da.OrgId, dsIDMap)
 		if err != nil {
 			return err
@@ -282,7 +302,7 @@ func (m *migration) Exec(sess *xorm.Session, mg *migrator.Migrator) error {
 			folderName := getAlertFolderNameFromDashboard(&dash)
 			f, ok := folderCache[folderName]
 			if !ok {
-				mg.Logger.Info("create a new folder for alerts that belongs to dashboard because it has custom permissions", "org", dash.OrgId, "dashboard_uid", dash.Uid, "folder", folderName)
+				l.Info("create a new folder for alerts that belongs to dashboard because it has custom permissions", "folder", folderName)
 				// create folder and assign the permissions of the dashboard (included default and inherited)
 				f, err = m.createFolder(dash.OrgId, folderName)
 				if err != nil {
@@ -312,29 +332,20 @@ func (m *migration) Exec(sess *xorm.Session, mg *migrator.Migrator) error {
 			// get folder if exists
 			f, err := m.getFolder(dash, da)
 			if err != nil {
-				return MigrationError{
-					Err:     err,
-					AlertId: da.Id,
-				}
-			}
-			folder = &f
-		default:
-			f, ok := folderCache[GENERAL_FOLDER]
-			if !ok {
-				// get or create general folder
-				f, err = m.getOrCreateGeneralFolder(dash.OrgId)
+				// If folder does not exist then the dashboard is an orphan and we migrate the alert to the general folder.
+				l.Warn("Failed to find folder for dashboard. Migrate rule to the default folder", "rule_name", da.Name, "dashboard_uid", da.DashboardUID, "missing_folder_id", dash.FolderId)
+				folder, err = gf(dash, da)
 				if err != nil {
-					return MigrationError{
-						Err:     fmt.Errorf("failed to get or create general folder under organisation %d: %w", dash.OrgId, err),
-						AlertId: da.Id,
-					}
+					return err
 				}
-				folderCache[GENERAL_FOLDER] = f
+			} else {
+				folder = &f
+			}
+		default:
+			folder, err = gf(dash, da)
+			if err != nil {
+				return err
 			}
-			// No need to assign default permissions to general folder
-			// because they are included to the query result if it's a folder with no permissions
-			// https://github.com/grafana/grafana/blob/076e2ce06a6ecf15804423fcc8dca1b620a321e5/pkg/services/sqlstore/dashboard_acl.go#L109
-			folder = f
 		}
 
 		if folder.Uid == "" {