WordPress keeps every upload in one long list. Media Library Folders adds the folder panel it never had, right on the Media Library screen.

Works the way you expect

Create folders and folders inside folders. Drag one file, or select several and drag them together, onto a folder. Drag a folder onto another to nest it. Click a folder first and whatever you upload lands in it.

Find it when you need it

The "Add media" window, where you pick an image for a post or a product, gets a folder dropdown beside the type and date filters. "Not in a folder" shows what is still unsorted.

Nothing can break

Folders are labels in the database. Files are never moved on disk and their addresses never change, so no image on your site can go missing. Delete a folder and its files stay; remove the plugin and every file stays.