diff --git a/src/com/android/launcher3/Workspace.java b/src/com/android/launcher3/Workspace.java
index c80d4a8..cd74ed9 100644
--- a/src/com/android/launcher3/Workspace.java
+++ b/src/com/android/launcher3/Workspace.java
@@ -61,6 +61,7 @@
 import com.android.launcher3.accessibility.OverviewScreenAccessibilityDelegate;
 import com.android.launcher3.accessibility.WorkspaceAccessibilityHelper;
 import com.android.launcher3.anim.AnimationLayerSet;
+import com.android.launcher3.badge.FolderBadgeInfo;
 import com.android.launcher3.compat.AppWidgetManagerCompat;
 import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.config.ProviderConfig;
@@ -3985,6 +3986,7 @@
 
     public void updateIconBadges(final Set<PackageUserKey> updatedBadges) {
         final PackageUserKey packageUserKey = new PackageUserKey(null, null);
+        final HashSet<Long> folderIds = new HashSet<>();
         mapOverItems(MAP_RECURSE, new ItemOperator() {
             @Override
             public boolean evaluate(ItemInfo info, View v) {
@@ -3992,12 +3994,31 @@
                         && packageUserKey.updateFromItemInfo(info)) {
                     if (updatedBadges.contains(packageUserKey)) {
                         ((BubbleTextView) v).applyBadgeState(info);
+                        folderIds.add(info.container);
                     }
                 }
                 // process all the shortcuts
                 return false;
             }
         });
+
+        // Update folder icons
+        mapOverItems(MAP_NO_RECURSE, new ItemOperator() {
+            @Override
+            public boolean evaluate(ItemInfo info, View v) {
+                if (info instanceof FolderInfo && folderIds.contains(info.id)
+                        && v instanceof FolderIcon) {
+                    FolderBadgeInfo folderBadgeInfo = new FolderBadgeInfo();
+                    for (ShortcutInfo si : ((FolderInfo) info).contents) {
+                        folderBadgeInfo.addBadgeInfo(mLauncher.getPopupDataProvider()
+                                .getBadgeInfoForItem(si));
+                    }
+                    ((FolderIcon) v).setBadgeInfo(folderBadgeInfo);
+                }
+                // process all the shortcuts
+                return false;
+            }
+        });
     }
 
     public void removeAbandonedPromise(String packageName, UserHandle user) {
diff --git a/src/com/android/launcher3/badge/FolderBadgeInfo.java b/src/com/android/launcher3/badge/FolderBadgeInfo.java
new file mode 100644
index 0000000..4d1e5c2
--- /dev/null
+++ b/src/com/android/launcher3/badge/FolderBadgeInfo.java
@@ -0,0 +1,60 @@
+/*
+ * Copyright (C) 2017 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.android.launcher3.badge;
+
+import com.android.launcher3.Utilities;
+
+import static com.android.launcher3.Utilities.boundToRange;
+
+/**
+ * Subclass of BadgeInfo that only contains the badge count,
+ * which is the sum of all the Folder's items' counts.
+ */
+public class FolderBadgeInfo extends BadgeInfo {
+
+    private static final int MIN_COUNT = 0;
+    private static final int MAX_COUNT = 999;
+
+    private int mTotalNotificationCount;
+
+    public FolderBadgeInfo() {
+        super(null);
+    }
+
+    public void addBadgeInfo(BadgeInfo badgeToAdd) {
+        if (badgeToAdd == null) {
+            return;
+        }
+        mTotalNotificationCount += badgeToAdd.getNotificationCount();
+        mTotalNotificationCount = Utilities.boundToRange(
+                mTotalNotificationCount, MIN_COUNT, MAX_COUNT);
+    }
+
+    public void subtractBadgeInfo(BadgeInfo badgeToSubtract) {
+        if (badgeToSubtract == null) {
+            return;
+        }
+        mTotalNotificationCount -= badgeToSubtract.getNotificationCount();
+        mTotalNotificationCount = Utilities.boundToRange(
+                mTotalNotificationCount, MIN_COUNT, MAX_COUNT);
+    }
+
+    @Override
+    public int getNotificationCount() {
+        return mTotalNotificationCount;
+    }
+}
diff --git a/src/com/android/launcher3/folder/FolderIcon.java b/src/com/android/launcher3/folder/FolderIcon.java
index 7f5569c..74dc48c 100644
--- a/src/com/android/launcher3/folder/FolderIcon.java
+++ b/src/com/android/launcher3/folder/FolderIcon.java
@@ -64,9 +64,12 @@
 import com.android.launcher3.StylusEventHelper;
 import com.android.launcher3.Utilities;
 import com.android.launcher3.Workspace;
+import com.android.launcher3.badge.BadgeRenderer;
+import com.android.launcher3.badge.FolderBadgeInfo;
 import com.android.launcher3.config.FeatureFlags;
 import com.android.launcher3.dragndrop.DragLayer;
 import com.android.launcher3.dragndrop.DragView;
+import com.android.launcher3.graphics.IconPalette;
 import com.android.launcher3.util.Thunk;
 
 import java.util.ArrayList;
@@ -124,6 +127,9 @@
 
     private Alarm mOpenAlarm = new Alarm();
 
+    private FolderBadgeInfo mBadgeInfo = new FolderBadgeInfo();
+    private BadgeRenderer mBadgeRenderer;
+
     public FolderIcon(Context context, AttributeSet attrs) {
         super(context, attrs);
         init();
@@ -172,6 +178,7 @@
         icon.setOnClickListener(launcher);
         icon.mInfo = folderInfo;
         icon.mLauncher = launcher;
+        icon.mBadgeRenderer = launcher.getDeviceProfile().mBadgeRenderer;
         icon.setContentDescription(launcher.getString(R.string.folder_name_format, folderInfo.title));
         Folder folder = Folder.fromXml(launcher);
         folder.setDragController(launcher.getDragController());
@@ -379,6 +386,11 @@
         computePreviewDrawingParams(d.getIntrinsicWidth(), getMeasuredWidth());
     }
 
+    public void setBadgeInfo(FolderBadgeInfo badgeInfo) {
+        mBadgeInfo = badgeInfo;
+        invalidate();
+    }
+
     static class PreviewItemDrawingParams {
         PreviewItemDrawingParams(float transX, float transY, float scale, float overlayAlpha) {
             this.transX = transX;
@@ -767,6 +779,14 @@
         if (mPreviewLayoutRule.clipToBackground() && !mBackground.drawingDelegated()) {
             mBackground.drawBackgroundStroke(canvas, mBgPaint);
         }
+
+        int offsetX = mBackground.getOffsetX();
+        int offsetY = mBackground.getOffsetY();
+        int previewSize = (int) (mBackground.previewSize * mBackground.mScale);
+        Rect bounds = new Rect(offsetX, offsetY, offsetX + previewSize, offsetY + previewSize);
+        if (mBadgeInfo != null && mBadgeInfo.getNotificationCount() > 0) {
+            mBadgeRenderer.draw(canvas, IconPalette.FOLDER_ICON_PALETTE, mBadgeInfo, bounds);
+        }
     }
 
     class FolderPreviewItemAnim {
@@ -916,16 +936,21 @@
         requestLayout();
     }
 
+    @Override
     public void onAdd(ShortcutInfo item) {
+        mBadgeInfo.addBadgeInfo(mLauncher.getPopupDataProvider().getBadgeInfoForItem(item));
         invalidate();
         requestLayout();
     }
 
+    @Override
     public void onRemove(ShortcutInfo item) {
+        mBadgeInfo.subtractBadgeInfo(mLauncher.getPopupDataProvider().getBadgeInfoForItem(item));
         invalidate();
         requestLayout();
     }
 
+    @Override
     public void onTitleChanged(CharSequence title) {
         mFolderName.setText(title);
         setContentDescription(getContext().getString(R.string.folder_name_format, title));
diff --git a/src/com/android/launcher3/graphics/IconPalette.java b/src/com/android/launcher3/graphics/IconPalette.java
index 991038c..7cb69b3 100644
--- a/src/com/android/launcher3/graphics/IconPalette.java
+++ b/src/com/android/launcher3/graphics/IconPalette.java
@@ -32,6 +32,8 @@
     private static final boolean DEBUG = false;
     private static final String TAG = "IconPalette";
 
+    public static final IconPalette FOLDER_ICON_PALETTE = new IconPalette(Color.WHITE);
+
     private static final float MIN_PRELOAD_COLOR_SATURATION = 0.2f;
     private static final float MIN_PRELOAD_COLOR_LIGHTNESS = 0.6f;
     private static final int DEFAULT_PRELOAD_COLOR = 0xFF009688;