diff --git a/src/renderer/src/app.css b/src/renderer/src/app.css
index cca5d4e..05aac9e 100644
--- a/src/renderer/src/app.css
+++ b/src/renderer/src/app.css
@@ -2338,6 +2338,25 @@ video.lightbox-media {
 
 /* --- rail folders ------------------------------------------------------ */
 
+/* An expanded folder and its servers share one panel: a hairline border and
+   a ground a shade lighter than the rail, which is what marks where the
+   folder ends now that its contents are not indented. Collapsed, the
+   container is invisible and the folder is just another tile. */
+.rail-folder-group {
+  display: flex;
+  flex-direction: column;
+  align-items: center;
+  gap: var(--spacing-xs);
+  width: 100%;
+}
+
+.rail-folder-group.open {
+  padding: var(--spacing-xxs) 0;
+  background: var(--surface-container-low);
+  border: 1px solid var(--outline-medium);
+  border-radius: var(--corner-radius);
+}
+
 /* Squarer than a server tile, so a folder is not mistaken for one. */
 .rail-folder .rail-face {
   border-radius: var(--corner-radius);
diff --git a/src/renderer/src/components/ServerRail.tsx b/src/renderer/src/components/ServerRail.tsx
index de2c61e..2898614 100644
--- a/src/renderer/src/components/ServerRail.tsx
+++ b/src/renderer/src/components/ServerRail.tsx
@@ -269,7 +269,38 @@ export function ServerRail(): JSX.Element | null {
     setNaming({ id, name: 'New folder' })
   }
 
-  const entries = railEntries(ordered, folders, isFolderOpen)
+  const entries = railEntries(ordered, folders)
+
+  const renderTile = (g: RailGroup): JSX.Element => {
+    const t = totals.get(g.id)
+    return (
+      <RailTile
+        key={g.id}
+        group={g}
+        customIcon={customIcons[g.id]}
+        muted={mutedGroups.includes(g.id)}
+        onToggleMute={() =>
+          setMutedGroups(
+            mutedGroups.includes(g.id)
+              ? mutedGroups.filter((x) => x !== g.id)
+              : [...mutedGroups, g.id]
+          )
+        }
+        active={g.id === activeGroupId}
+        unread={t?.unread ?? 0}
+        highlight={t?.highlight ?? false}
+        // Direct messages and pinned lead the rail by definition, so
+        // there is nowhere for them to be dragged to.
+        draggable={!isFixedEntry(g)}
+        dropTarget={over === g.id && dragging !== '' && dragging !== g.id}
+        onSelect={() => store.selectGroup(g.id)}
+        onDragStart={() => beginDrag(g.id)}
+        onDragOver={() => !isFixedEntry(g) && setOver(g.id)}
+        onDrop={() => onDrop(g.id)}
+        onDragEnd={endDrag}
+      />
+    )
+  }
 
   return (
     <nav className="server-rail" aria-label="Servers">
@@ -294,7 +325,12 @@ export function ServerRail(): JSX.Element | null {
       >
       {entries.map((entry) => {
         if (entry.kind === 'folder') {
+          const open = isFolderOpen(entry.id)
           return (
+            /* Expanded, the folder and its servers sit in one panel - the
+               border and lighter ground are what say where the folder ends,
+               now that its contents are no longer indented. */
+            <div key={entry.id} className={classes('rail-folder-group', open && 'open')}>
             <FolderTile
               key={entry.id}
               folder={entry.folder}
@@ -310,37 +346,11 @@ export function ServerRail(): JSX.Element | null {
               onDrop={() => onDropInFolder(entry.id)}
               onDragEnd={endDrag}
             />
+            {open && entry.members.map((m) => renderTile(m))}
+            </div>
           )
         }
-        const g = entry.group
-        const t = totals.get(g.id)
-        return (
-          <RailTile
-            key={g.id}
-            group={g}
-            customIcon={customIcons[g.id]}
-            muted={mutedGroups.includes(g.id)}
-            onToggleMute={() =>
-              setMutedGroups(
-                mutedGroups.includes(g.id)
-                  ? mutedGroups.filter((x) => x !== g.id)
-                  : [...mutedGroups, g.id]
-              )
-            }
-            active={g.id === activeGroupId}
-            unread={t?.unread ?? 0}
-            highlight={t?.highlight ?? false}
-            // Direct messages and pinned lead the rail by definition, so
-            // there is nowhere for them to be dragged to.
-            draggable={!isFixedEntry(g)}
-            dropTarget={over === g.id && dragging !== '' && dragging !== g.id}
-            onSelect={() => store.selectGroup(g.id)}
-            onDragStart={() => beginDrag(g.id)}
-            onDragOver={() => !isFixedEntry(g) && setOver(g.id)}
-            onDrop={() => onDrop(g.id)}
-            onDragEnd={endDrag}
-          />
-        )
+        return renderTile(entry.group)
       })}
       </div>
 
diff --git a/src/renderer/src/lib/groups.ts b/src/renderer/src/lib/groups.ts
index c2a8604..9c85b07 100644
--- a/src/renderer/src/lib/groups.ts
+++ b/src/renderer/src/lib/groups.ts
@@ -227,13 +227,11 @@ export type RailEntry =
  *
  * A folder takes the position of its first member, so putting servers into one
  * does not also reshuffle the column - the folder appears where the topmost of
- * them already was. Members are drawn under it only while it is open.
+ * them already was. Its members come back attached to it rather than spliced
+ * into the list, because the rail draws an expanded folder and its servers
+ * inside one container.
  */
-export function railEntries(
-  ordered: RailGroup[],
-  folders: RailFolder[],
-  open: (folderId: string) => boolean
-): RailEntry[] {
+export function railEntries(ordered: RailGroup[], folders: RailFolder[]): RailEntry[] {
   const owner = new Map<string, RailFolder>()
   for (const f of folders) {
     for (const id of f.members) owner.set(id, f)
@@ -255,9 +253,6 @@ export function railEntries(
       .map((id) => ordered.find((x) => x.id === id))
       .filter((x): x is RailGroup => !!x)
     out.push({ kind: 'folder', id: folder.id, folder, members })
-    if (open(folder.id)) {
-      for (const m of members) out.push({ kind: 'group', id: m.id, group: m })
-    }
   }
 
   // A folder with nothing in it still draws, at the foot of the column. A