diff --git a/src/com/android/launcher3/BubbleTextView.java b/src/com/android/launcher3/BubbleTextView.java
index 33b3ad3..a294fa5 100644
--- a/src/com/android/launcher3/BubbleTextView.java
+++ b/src/com/android/launcher3/BubbleTextView.java
@@ -65,6 +65,7 @@
 
     private static final int DISPLAY_WORKSPACE = 0;
     private static final int DISPLAY_ALL_APPS = 1;
+    private static final int DISPLAY_FOLDER = 2;
 
     private final Launcher mLauncher;
     private Drawable mIcon;
@@ -125,12 +126,13 @@
             setTextSize(TypedValue.COMPLEX_UNIT_PX, grid.allAppsIconTextSizePx);
             setCompoundDrawablePadding(grid.allAppsIconDrawablePaddingPx);
             defaultIconSize = grid.allAppsIconSizePx;
+        } else if (display == DISPLAY_FOLDER) {
+            setCompoundDrawablePadding(grid.folderChildDrawablePaddingPx);
         }
         mCenterVertically = a.getBoolean(R.styleable.BubbleTextView_centerVertically, false);
 
         mIconSize = a.getDimensionPixelSize(R.styleable.BubbleTextView_iconSizeOverride,
                 defaultIconSize);
-
         a.recycle();
 
         if (mCustomShadowsEnabled) {
diff --git a/src/com/android/launcher3/DeviceProfile.java b/src/com/android/launcher3/DeviceProfile.java
index c9fd85a..c4e6ed1 100644
--- a/src/com/android/launcher3/DeviceProfile.java
+++ b/src/com/android/launcher3/DeviceProfile.java
@@ -20,8 +20,6 @@
 import android.content.ComponentName;
 import android.content.Context;
 import android.content.res.Resources;
-import android.graphics.Paint;
-import android.graphics.Paint.FontMetrics;
 import android.graphics.Point;
 import android.graphics.Rect;
 import android.util.DisplayMetrics;
@@ -100,6 +98,7 @@
     public int folderIconPreviewPadding;
     public int folderCellWidthPx;
     public int folderCellHeightPx;
+    public int folderChildDrawablePaddingPx;
 
     // Hotseat
     public int hotseatCellWidthPx;
@@ -255,12 +254,9 @@
         allAppsIconDrawablePaddingPx = iconDrawablePaddingPx;
         allAppsIconTextSizePx = iconTextSizePx;
 
-        // Calculate the actual text height
-        Paint textPaint = new Paint();
-        textPaint.setTextSize(iconTextSizePx);
-        FontMetrics fm = textPaint.getFontMetrics();
         cellWidthPx = iconSizePx;
-        cellHeightPx = iconSizePx + iconDrawablePaddingPx + (int) Math.ceil(fm.bottom - fm.top);
+        cellHeightPx = iconSizePx + iconDrawablePaddingPx
+                + Utilities.calculateTextHeight(iconTextSizePx);
         final float scaleDps = !FeatureFlags.LAUNCHER3_LEGACY_WORKSPACE_DND ? 0f
                 : res.getDimensionPixelSize(R.dimen.dragViewScale);
         dragViewScale = (iconSizePx + scaleDps) / iconSizePx;
@@ -281,12 +277,25 @@
                     res.getInteger(R.integer.config_workspaceSpringLoadShrinkPercentage) / 100.0f;
         }
 
-        // Folder
-        int folderCellPadding = isTablet || isLandscape ? 6 * edgeMarginPx : 3 * edgeMarginPx;
+        // Folder cell
+        int cellPaddingX = res.getDimensionPixelSize(R.dimen.folder_cell_x_padding);
+        int cellPaddingY = res.getDimensionPixelSize(R.dimen.folder_cell_y_padding);
+        final int folderChildTextSize =
+                Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_child_text_size));
+
+        final int folderBottomPanelSize =
+                2 * res.getDimensionPixelSize(R.dimen.folder_label_padding)
+                + Utilities.calculateTextHeight(res.getDimension(R.dimen.folder_label_text_size));
+
         // Don't let the folder get too close to the edges of the screen.
-        folderCellWidthPx = Math.min(cellWidthPx + folderCellPadding,
+        folderCellWidthPx = Math.min(iconSizePx + 2 * cellPaddingX,
                 (availableWidthPx - 4 * edgeMarginPx) / inv.numFolderColumns);
-        folderCellHeightPx = cellHeightPx + edgeMarginPx;
+        folderCellHeightPx = Math.min(iconSizePx + 3 * cellPaddingY + folderChildTextSize,
+                (availableHeightPx - 4 * edgeMarginPx - folderBottomPanelSize) / inv.numFolderRows);
+        folderChildDrawablePaddingPx = Math.max(0,
+                (folderCellHeightPx - iconSizePx - folderChildTextSize) / 3);
+
+        // Folder icon
         folderBackgroundOffset = -edgeMarginPx;
         folderIconSizePx = iconSizePx + 2 * -folderBackgroundOffset;
         folderIconPreviewPadding = res.getDimensionPixelSize(R.dimen.folder_preview_padding);
@@ -296,9 +305,6 @@
         mInsets.set(insets);
     }
 
-    /**
-     * @param recyclerViewWidth the available width of the AllAppsRecyclerView
-     */
     public void updateAppsViewNumCols() {
         allAppsNumCols = allAppsNumPredictiveCols = inv.numColumns;
     }
diff --git a/src/com/android/launcher3/Utilities.java b/src/com/android/launcher3/Utilities.java
index e34f509..b0e096a 100644
--- a/src/com/android/launcher3/Utilities.java
+++ b/src/com/android/launcher3/Utilities.java
@@ -686,11 +686,11 @@
     /**
      * Calculates the height of a given string at a specific text size.
      */
-    public static float calculateTextHeight(float textSizePx) {
+    public static int calculateTextHeight(float textSizePx) {
         Paint p = new Paint();
         p.setTextSize(textSizePx);
         Paint.FontMetrics fm = p.getFontMetrics();
-        return -fm.top + fm.bottom;
+        return (int) Math.ceil(fm.bottom - fm.top);
     }
 
     /**