diff --git a/quickstep/recents_ui_overrides/src/com/android/launcher3/hybridhotseat/HotseatPredictionController.java b/quickstep/recents_ui_overrides/src/com/android/launcher3/hybridhotseat/HotseatPredictionController.java
index 109439f..cc6ec69 100644
--- a/quickstep/recents_ui_overrides/src/com/android/launcher3/hybridhotseat/HotseatPredictionController.java
+++ b/quickstep/recents_ui_overrides/src/com/android/launcher3/hybridhotseat/HotseatPredictionController.java
@@ -39,6 +39,7 @@
 import com.android.launcher3.BubbleTextView;
 import com.android.launcher3.DragSource;
 import com.android.launcher3.DropTarget;
+import com.android.launcher3.FolderInfo;
 import com.android.launcher3.Hotseat;
 import com.android.launcher3.InvariantDeviceProfile;
 import com.android.launcher3.ItemInfo;
@@ -443,6 +444,20 @@
         mHotseat.invalidate();
     }
 
+    /**
+     * Unpins pinned app when it's converted into a folder
+     */
+    public void folderCreatedFromIcon(ItemInfo info, FolderInfo folderInfo) {
+        AppTarget target = getAppTargetFromItemInfo(info);
+        if (folderInfo.container == LauncherSettings.Favorites.CONTAINER_HOTSEAT && !isInHotseat(
+                info)) {
+            notifyItemAction(target, APP_LOCATION_HOTSEAT, APPTARGET_ACTION_UNPIN);
+        } else if (folderInfo.container == LauncherSettings.Favorites.CONTAINER_DESKTOP
+                && folderInfo.screenId == Workspace.FIRST_SCREEN_ID && !isInFirstPage(info)) {
+            notifyItemAction(target, APP_LOCATION_WORKSPACE, APPTARGET_ACTION_UNPIN);
+        }
+    }
+
     @Override
     public void onDragEnd() {
         if (mDragObject == null) {
diff --git a/quickstep/recents_ui_overrides/src/com/android/launcher3/uioverrides/QuickstepLauncher.java b/quickstep/recents_ui_overrides/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
index c359423..b87fcf2 100644
--- a/quickstep/recents_ui_overrides/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
+++ b/quickstep/recents_ui_overrides/src/com/android/launcher3/uioverrides/QuickstepLauncher.java
@@ -26,11 +26,14 @@
 import android.view.Gravity;
 
 import com.android.launcher3.BaseQuickstepLauncher;
+import com.android.launcher3.CellLayout;
 import com.android.launcher3.DeviceProfile;
 import com.android.launcher3.Launcher;
 import com.android.launcher3.LauncherState;
+import com.android.launcher3.WorkspaceItemInfo;
 import com.android.launcher3.anim.AnimatorPlaybackController;
 import com.android.launcher3.config.FeatureFlags;
+import com.android.launcher3.folder.FolderIcon;
 import com.android.launcher3.graphics.RotationMode;
 import com.android.launcher3.hybridhotseat.HotseatPredictionController;
 import com.android.launcher3.popup.SystemShortcut;
@@ -169,6 +172,16 @@
     }
 
     @Override
+    public FolderIcon addFolder(CellLayout layout, WorkspaceItemInfo info, int container,
+            int screenId, int cellX, int cellY) {
+        FolderIcon fi =  super.addFolder(layout, info, container, screenId, cellX, cellY);
+        if (mHotseatPredictionController != null) {
+            mHotseatPredictionController.folderCreatedFromIcon(info, fi.getFolder().getInfo());
+        }
+        return fi;
+    }
+
+    @Override
     public Stream<SystemShortcut.Factory> getSupportedShortcuts() {
         if (mHotseatPredictionController != null) {
             return Stream.concat(super.getSupportedShortcuts(),
diff --git a/src/com/android/launcher3/Launcher.java b/src/com/android/launcher3/Launcher.java
index 445ebc0..db2daee 100644
--- a/src/com/android/launcher3/Launcher.java
+++ b/src/com/android/launcher3/Launcher.java
@@ -1721,8 +1721,11 @@
         }
     }
 
-    FolderIcon addFolder(CellLayout layout, int container, final int screenId, int cellX,
-            int cellY) {
+    /**
+     * Creates and adds new folder to CellLayout
+     */
+    public FolderIcon addFolder(CellLayout layout, WorkspaceItemInfo info, int container,
+            final int screenId, int cellX, int cellY) {
         final FolderInfo folderInfo = new FolderInfo();
         folderInfo.title = "";
 
@@ -1730,7 +1733,8 @@
         getModelWriter().addItemToDatabase(folderInfo, container, screenId, cellX, cellY);
 
         // Create the view
-        FolderIcon newFolder = FolderIcon.inflateFolderAndIcon(R.layout.folder_icon, this, layout, folderInfo);
+        FolderIcon newFolder = FolderIcon.inflateFolderAndIcon(R.layout.folder_icon, this, layout,
+                folderInfo);
         mWorkspace.addInScreen(newFolder, folderInfo);
         // Force measure the new folder icon
         CellLayout parent = mWorkspace.getParentCellLayoutForView(newFolder);
diff --git a/src/com/android/launcher3/Workspace.java b/src/com/android/launcher3/Workspace.java
index beaafda..b53889a 100644
--- a/src/com/android/launcher3/Workspace.java
+++ b/src/com/android/launcher3/Workspace.java
@@ -1703,8 +1703,8 @@
             float scale = mLauncher.getDragLayer().getDescendantRectRelativeToSelf(v, folderLocation);
             target.removeView(v);
 
-            FolderIcon fi =
-                mLauncher.addFolder(target, container, screenId, targetCell[0], targetCell[1]);
+            FolderIcon fi = mLauncher.addFolder(target, sourceInfo, container, screenId,
+                    targetCell[0], targetCell[1]);
             destInfo.cellX = -1;
             destInfo.cellY = -1;
             sourceInfo.cellX = -1;