diff --git a/app/api/storage/init/folder/route.ts b/app/api/storage/init/folder/route.ts
index d87283c..9f2ff75 100644
--- a/app/api/storage/init/folder/route.ts
+++ b/app/api/storage/init/folder/route.ts
@@ -1,8 +1,7 @@
 import { NextResponse } from 'next/server';
 import { getServerSession } from 'next-auth';
 import { authOptions } from "@/app/api/auth/options";
-import { putObject } from '@/lib/s3';
-import { S3_CONFIG } from '@/lib/s3';
+import { putObject, listUserObjects, getObjectContent } from '@/lib/s3';
 
 /**
  * API endpoint to create a specific folder for a user
@@ -37,24 +36,46 @@ export async function POST(request: Request) {
     console.log(`Creating folder ${folderLowercase} for user ${userId}`);
     
     try {
-      // In S3/MinIO, folders are just prefixes, so we don't need to create an empty object.
-      // We only create a placeholder file to mark the folder as initialized.
-      const placeholderKey = `user-${userId}/${folderLowercase}/.placeholder`;
-      const placeholderContent = `Folder initialized at ${new Date().toISOString()}`;
+      // Check if folder already exists by listing objects
+      const existingFiles = await listUserObjects(userId, folderLowercase);
       
+      // If folder already has files, it exists and we don't need to create anything
+      if (existingFiles.length > 0) {
+        console.log(`Folder ${folderLowercase} already exists with ${existingFiles.length} file(s)`);
+        return NextResponse.json({
+          success: true,
+          message: `Folder ${folderLowercase} already exists`,
+          existingFiles: existingFiles.length
+        });
+      }
+      
+      // Check if placeholder already exists
+      const placeholderKey = `user-${userId}/${folderLowercase}/.placeholder`;
+      const placeholderExists = await getObjectContent(placeholderKey);
+      
+      if (placeholderExists) {
+        console.log(`Folder ${folderLowercase} already initialized`);
+        return NextResponse.json({
+          success: true,
+          message: `Folder ${folderLowercase} already initialized`
+        });
+      }
+      
+      // Folder is empty and no placeholder exists, create one
+      const placeholderContent = `Folder initialized at ${new Date().toISOString()}`;
       await putObject(placeholderKey, placeholderContent, 'text/plain');
       
-      console.log(`Successfully created folder: user-${userId}/${folderLowercase}/`);
+      console.log(`Successfully initialized folder: user-${userId}/${folderLowercase}/`);
       
       // Return success
       return NextResponse.json({
         success: true,
-        message: `Folder ${folderLowercase} created successfully`
+        message: `Folder ${folderLowercase} initialized successfully`
       });
     } catch (error) {
-      console.error(`Error creating folder ${folderLowercase}:`, error);
+      console.error(`Error initializing folder ${folderLowercase}:`, error);
       return NextResponse.json({ 
-        error: 'Failed to create folder',
+        error: 'Failed to initialize folder',
         details: error instanceof Error ? error.message : String(error)
       }, { status: 500 });
     }
diff --git a/lib/s3.ts b/lib/s3.ts
index 80f3d0a..781f882 100644
--- a/lib/s3.ts
+++ b/lib/s3.ts
@@ -110,18 +110,34 @@ export async function deleteObject(key: string): Promise<void> {
  * List objects for a user in a specific folder
  */
 export async function listUserObjects(userId: string, folder: string): Promise<Array<{ key: string; name: string; size?: number; lastModified?: Date }>> {
-  const prefix = `user-${userId}/${folder}/`;
+  // Normalize folder name to lowercase for consistency
+  const normalizedFolder = folder.toLowerCase();
+  const prefix = `user-${userId}/${normalizedFolder}/`;
+  
   const command = new ListObjectsV2Command({
     Bucket: S3_CONFIG.bucket,
     Prefix: prefix,
-    Delimiter: '/'
+    // Don't use Delimiter to get all objects, not just "folders"
   });
 
   const response = await s3Client.send(command);
   const objects = response.Contents || [];
   
+  // Filter out:
+  // - Objects that are "folders" (end with /)
+  // - Placeholder files
+  // - Objects that don't match the exact prefix (shouldn't happen but safety check)
   return objects
-    .filter(obj => obj.Key && !obj.Key.endsWith('/') && !obj.Key.includes('.placeholder'))
+    .filter(obj => {
+      if (!obj.Key) return false;
+      // Exclude folder markers (end with /)
+      if (obj.Key.endsWith('/')) return false;
+      // Exclude placeholder files
+      if (obj.Key.includes('.placeholder')) return false;
+      // Ensure it matches our prefix
+      if (!obj.Key.startsWith(prefix)) return false;
+      return true;
+    })
     .map(obj => ({
       key: obj.Key!,
       name: obj.Key!.split('/').pop() || obj.Key!,
@@ -155,25 +171,38 @@ export function getPublicUrl(filePath: string, bucket?: string): string {
 /**
  * Create standard folder structure for a user
  * In S3/MinIO, folders don't need to be explicitly created - they exist as prefixes.
- * We only create a placeholder file to mark the folder as initialized.
+ * We only create a placeholder file if the folder doesn't exist or is empty.
  */
 export async function createUserFolderStructure(userId: string): Promise<void> {
   const folders = ['notes', 'diary', 'health', 'contacts'];
   
   for (const folder of folders) {
     try {
-      // In S3/MinIO, folders are just prefixes, so we don't need to create an empty object.
-      // We only create a placeholder file to mark the folder as initialized.
+      // Check if folder already exists by listing objects
+      const existingFiles = await listUserObjects(userId, folder);
+      
+      // If folder already has files, skip creating placeholder
+      if (existingFiles.length > 0) {
+        console.log(`Folder user-${userId}/${folder}/ already exists with ${existingFiles.length} file(s), skipping creation`);
+        continue;
+      }
+      
+      // Check if placeholder already exists
       const placeholderKey = `user-${userId}/${folder}/.placeholder`;
+      const placeholderExists = await getObjectContent(placeholderKey);
       
-      // Use a simple text content for the placeholder
+      if (placeholderExists) {
+        console.log(`Folder user-${userId}/${folder}/ already initialized, skipping`);
+        continue;
+      }
+      
+      // Folder is empty and no placeholder exists, create one
       const placeholderContent = `Folder initialized at ${new Date().toISOString()}`;
-      
       await putObject(placeholderKey, placeholderContent, 'text/plain');
       
-      console.log(`Created folder: user-${userId}/${folder}/`);
+      console.log(`Initialized folder: user-${userId}/${folder}/`);
     } catch (error) {
-      console.error(`Error creating folder ${folder} for user ${userId}:`, error);
+      console.error(`Error initializing folder ${folder} for user ${userId}:`, error);
       // Continue with other folders even if one fails
     }
   }