diff --git a/CHANGELOG.md b/CHANGELOG.md
index 98fbee9..847b015 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,8 @@ Notable changes to Agentaps are recorded here.
 
 ### Fixed
 
+- Keep folders visible after their last session is archived and allow projects, including empty folders, to be archived and restored independently.
+
 - The website header shows the latest release and star count for `cachix/agentaps` in compact dark badges linking to the GitHub release and repository.
 
 ### Changed
diff --git a/src/app.rs b/src/app.rs
index a1ce9df..9f0af47 100644
--- a/src/app.rs
+++ b/src/app.rs
@@ -358,6 +358,7 @@ fn completed_file_text(
 }
 
 struct ProjectView {
+    archived: bool,
     path: PathBuf,
     ssh_host: Option<String>,
     branch: String,
@@ -982,6 +983,7 @@ impl Workspace {
             .projects
             .into_iter()
             .map(|project| ProjectView {
+                archived: project.archived,
                 branch: project
                     .ssh_host
                     .clone()
@@ -1228,11 +1230,9 @@ impl Workspace {
                 .composer
                 .update(cx, |input, cx| input.focus(window, cx));
         } else {
-            let view = if this
-                .projects
-                .iter()
-                .any(|project| project.agents.iter().any(|agent| agent.config.archived))
-            {
+            let view = if this.projects.iter().any(|project| {
+                project.archived || project.agents.iter().any(|agent| agent.config.archived)
+            }) {
                 WorkspaceView::Empty
             } else if !this.projects.is_empty() {
                 WorkspaceView::NewSession {
@@ -1308,6 +1308,7 @@ impl Workspace {
                 .map(|index| {
                     let project = &self.projects[index];
                     ProjectConfig {
+                        archived: project.archived,
                         path: project.path.clone(),
                         ssh_host: project.ssh_host.clone(),
                         agents: project.agents.iter().map(AgentView::snapshot).collect(),
@@ -1678,6 +1679,7 @@ impl Workspace {
             index
         } else {
             self.projects.push(ProjectView {
+                archived: false,
                 branch: ssh_host.clone().unwrap_or_else(|| branch(&path)),
                 sync_counts: None,
                 path: path.clone(),
@@ -1763,6 +1765,7 @@ impl Workspace {
         terminal: bool,
         cx: &mut Context<Self>,
     ) -> (u64, usize) {
+        self.projects[project_index].archived = false;
         let id = self.next_agent_id;
         let config = AgentConfig {
             id,
@@ -1824,6 +1827,7 @@ impl Workspace {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        self.projects[project_index].archived = true;
         // Archive the displayed session last so its replacement is outside this project.
         let current = self
             .view
@@ -1838,6 +1842,14 @@ impl Workspace {
         if let Some(session) = current {
             self.set_archived(project_index, session.agent_index, true, window, cx);
         }
+        self.persist();
+        cx.notify();
+    }
+
+    fn restore_project(&mut self, project_index: usize, cx: &mut Context<Self>) {
+        self.projects[project_index].archived = false;
+        self.persist();
+        cx.notify();
     }
 
     fn set_archived(
@@ -1848,6 +1860,9 @@ impl Workspace {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        if !archived {
+            self.projects[project_index].archived = false;
+        }
         let agent = &mut self.projects[project_index].agents[agent_index];
         if agent.config.archived == archived {
             return;
diff --git a/src/app/mobile.rs b/src/app/mobile.rs
index 77b905d..52d89f6 100644
--- a/src/app/mobile.rs
+++ b/src/app/mobile.rs
@@ -337,6 +337,7 @@ impl Workspace {
                         index
                     } else {
                         self.projects.push(ProjectView {
+                            archived: false,
                             sync_counts: None,
                             branch: ssh_host.clone().unwrap_or_else(|| branch(&path)),
                             path: path.clone(),
@@ -451,6 +452,7 @@ pub(super) fn verify_session_switching_and_mobile_routing(
             let mut second_agent = test_agent(ProtocolVersion::V2);
             second_agent.config.id = 102;
             this.projects = vec![ProjectView {
+                archived: false,
                 path: root.to_owned(),
                 ssh_host: None,
                 branch: String::new(),
diff --git a/src/app/render/sidebar.rs b/src/app/render/sidebar.rs
index ed155e8..ddb41dd 100644
--- a/src/app/render/sidebar.rs
+++ b/src/app/render/sidebar.rs
@@ -161,7 +161,12 @@ impl Workspace {
             .iter()
             .flat_map(|project| &project.agents)
             .filter(|agent| agent.config.archived)
-            .count();
+            .count()
+            + self
+                .projects
+                .iter()
+                .filter(|project| project.archived)
+                .count();
         for (index, location) in self.sidebar_results(&session_query).into_iter().enumerate() {
             let SessionLocation {
                 project_index,
@@ -425,7 +430,10 @@ impl Workspace {
                 continue;
             }
             let collapsed = self.collapsed_projects.contains(&project_index);
-            if !has_sessions && (archive_view || active_only || !project.agents.is_empty()) {
+            if (!archive_view && project.archived)
+                || (!has_sessions && archive_view && !project.archived)
+                || (active_only && !has_sessions)
+            {
                 continue;
             }
             let name = project
@@ -519,18 +527,36 @@ impl Workspace {
                         })
                         .child(name),
                 )
-                .when(!archive_view && has_sessions, |header| {
+                .when(!archive_view || project.archived, |header| {
                     header.child(
                         sidebar_action(palette, false)
                             .id(("project-archive", project_index))
                             .invisible()
                             .group_hover(row_group.clone(), |style| style.visible())
-                            .child(Icon::new(IconName::Inbox).size(px(14.)))
-                            .tooltip(|window, cx| Tooltip::new("Archive project").build(window, cx))
+                            .child(
+                                Icon::new(if archive_view {
+                                    IconName::Undo2
+                                } else {
+                                    IconName::Inbox
+                                })
+                                .size(px(14.)),
+                            )
+                            .tooltip(move |window, cx| {
+                                Tooltip::new(if archive_view {
+                                    "Restore project"
+                                } else {
+                                    "Archive project"
+                                })
+                                .build(window, cx)
+                            })
                             .on_mouse_down(MouseButton::Left, |_, _, cx| cx.stop_propagation())
                             .on_click(cx.listener(move |this, _, window, cx| {
                                 cx.stop_propagation();
-                                this.archive_project(project_index, window, cx);
+                                if archive_view {
+                                    this.restore_project(project_index, cx);
+                                } else {
+                                    this.archive_project(project_index, window, cx);
+                                }
                             })),
                     )
                 })
diff --git a/src/app/tests.rs b/src/app/tests.rs
index 212c9a6..148ed9a 100644
--- a/src/app/tests.rs
+++ b/src/app/tests.rs
@@ -604,13 +604,13 @@ fn zoom_shortcuts_and_menu_actions_change_the_font_scale(cx: &mut gpui_kit::Test
     verify_project_session_sidebar(&restored, cx);
     verify_project_agent_picker(&restored, cx);
     verify_inline_session_renaming(&restored, cx);
+    verify_project_archiving(&restored, cx);
     verify_workspace_shortcuts(&restored, cx);
     verify_settings_apply_and_persist(&restored, temp.path(), cx);
     verify_key_bindings(&restored, cx);
     verify_notifications_for_background_sessions(&restored, temp.path(), cx);
     verify_repository_cloning(&restored, temp.path(), cx);
     verify_split_panes(&restored, temp.path(), cx);
-    verify_project_archiving(&restored, cx);
     verify_pane_resize_grab_areas(&restored, cx);
     // SAFETY: restore the process environment modified for this test.
     unsafe {
@@ -672,6 +672,7 @@ fn verify_cli_new_session(
             );
             let connection_id = source.connection.as_ref().unwrap().id;
             this.projects = vec![ProjectView {
+                archived: false,
                 path: path.to_owned(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -765,6 +766,7 @@ fn verify_resets_and_folder_moves_preserve_harness_references(
             original.config.custom_title = Some("Keep my session name".into());
             original.log(Role::User, "Previous conversation");
             this.projects = vec![ProjectView {
+                archived: false,
                 path: path.to_owned(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -800,6 +802,7 @@ fn verify_resets_and_folder_moves_preserve_harness_references(
             this.projects[0].agents[0].controller.session_id = Some("reset-session".into());
             this.projects[0].agents[0].config.session_has_activity = true;
             this.projects.push(ProjectView {
+                archived: false,
                 path: path.join("other"),
                 ssh_host: None,
                 branch: "main".into(),
@@ -875,6 +878,7 @@ fn verify_workspace_shortcuts(workspace: &Entity<Workspace>, cx: &mut gpui_kit::
                 }
             });
             this.projects = vec![ProjectView {
+                archived: false,
                 path: PathBuf::from("."),
                 ssh_host: None,
                 branch: String::new(),
@@ -1006,6 +1010,7 @@ fn verify_inline_session_renaming(
             agent.config.id = agent_id;
             agent.config.command.clear();
             this.projects = vec![ProjectView {
+                archived: false,
                 path: PathBuf::from("."),
                 ssh_host: None,
                 branch: String::new(),
@@ -1234,6 +1239,7 @@ fn verify_settings_apply_and_persist(
             agent.config.command.clear();
             agent.status = Status::Connecting;
             this.projects = vec![ProjectView {
+                archived: false,
                 path: path.to_owned(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -1551,6 +1557,7 @@ fn verify_notifications_for_background_sessions(
                 }
             });
             this.projects = vec![ProjectView {
+                archived: false,
                 path: path.to_owned(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -1807,6 +1814,7 @@ fn verify_split_panes(
                 });
             }
             this.projects = vec![ProjectView {
+                archived: false,
                 path: path.to_owned(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -1991,6 +1999,7 @@ fn verify_split_panes(
             });
             let other_path = path.join("other-checkout");
             this.projects.push(ProjectView {
+                archived: false,
                 path: other_path.clone(),
                 ssh_host: None,
                 branch: "main".into(),
@@ -2205,6 +2214,7 @@ fn verify_project_archiving(workspace: &Entity<Workspace>, cx: &mut gpui_kit::Vi
             };
             this.projects = vec![
                 ProjectView {
+                    archived: false,
                     path: PathBuf::from("/projects/archive"),
                     ssh_host: None,
                     branch: "main".into(),
@@ -2212,6 +2222,7 @@ fn verify_project_archiving(workspace: &Entity<Workspace>, cx: &mut gpui_kit::Vi
                     agents: vec![agent(801, false), agent(802, false), agent(803, true)],
                 },
                 ProjectView {
+                    archived: false,
                     path: PathBuf::from("/projects/keep"),
                     ssh_host: None,
                     branch: "main".into(),
@@ -2229,7 +2240,21 @@ fn verify_project_archiving(workspace: &Entity<Workspace>, cx: &mut gpui_kit::Vi
                 agent_index: 0,
             };
             this.set_view(WorkspaceView::Conversation(first), window, cx);
+            this.set_archived(0, 0, true, window, cx);
+            assert!(!this.projects[0].archived);
+            this.set_archived(0, 1, true, window, cx);
+            assert!(
+                !this.projects[0].archived,
+                "archiving the last session keeps its folder active"
+            );
+            this.projects[0].agents[0].config.archived = false;
+            this.projects[0].agents[1].config.archived = false;
+            this.set_view(WorkspaceView::Conversation(first), window, cx);
             this.archive_project(0, window, cx);
+            assert!(
+                this.projects[0].archived,
+                "explicit project archiving hides its folder"
+            );
             assert!(
                 this.projects[0]
                     .agents
@@ -2242,6 +2267,7 @@ fn verify_project_archiving(workspace: &Entity<Workspace>, cx: &mut gpui_kit::Vi
             let saved: Config =
                 serde_json::from_slice(&serde_json::to_vec(&this.config()).unwrap()).unwrap();
             assert!(saved.projects[0].agents.iter().all(|agent| agent.archived));
+            assert!(saved.projects[0].archived);
             assert_eq!(saved.projects[0].agents.len(), 3);
 
             this.archive_project(0, window, cx);
@@ -2254,6 +2280,20 @@ fn verify_project_archiving(workspace: &Entity<Workspace>, cx: &mut gpui_kit::Vi
             this.set_view(this.view.toggle_archive(), window, cx);
             assert_eq!(this.view, WorkspaceView::Empty);
             assert!(this.sidebar_results("").is_empty());
+            this.restore_project(0, cx);
+            assert!(!this.projects[0].archived);
+            assert!(
+                this.projects[0]
+                    .agents
+                    .iter()
+                    .all(|agent| agent.config.archived)
+            );
+            this.projects[0].agents.clear();
+            this.archive_project(0, window, cx);
+            assert!(this.projects[0].archived, "empty folders can be archived");
+            assert!(this.config().projects[0].archived);
+            this.restore_project(0, cx);
+            assert!(!this.config().projects[0].archived);
         });
     });
 }
@@ -2277,6 +2317,7 @@ fn verify_project_session_sidebar(
             };
             this.projects = vec![
                 ProjectView {
+                    archived: false,
                     path: PathBuf::from("/projects/first"),
                     ssh_host: None,
                     branch: "main".into(),
@@ -2288,6 +2329,7 @@ fn verify_project_session_sidebar(
                     ],
                 },
                 ProjectView {
+                    archived: false,
                     path: PathBuf::from("/projects/second"),
                     ssh_host: Some("remote".into()),
                     branch: "topic".into(),
diff --git a/src/config.rs b/src/config.rs
index d9abd2c..cec4432 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -204,6 +204,8 @@ pub struct ForkSource {
 
 #[derive(Clone, Debug, Serialize, Deserialize)]
 pub struct ProjectConfig {
+    #[serde(default)]
+    pub archived: bool,
     pub path: PathBuf,
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub ssh_host: Option<String>,
@@ -497,6 +499,18 @@ pub(crate) fn save_to(path: &Path, config: &Config) -> Result<(), String> {
 
 #[cfg(test)]
 mod tests {
+    #[test]
+    fn project_archive_state_defaults_to_active_and_survives_saving() {
+        let mut project: super::ProjectConfig =
+            serde_json::from_str(r#"{"path":"/project","agents":[]}"#).unwrap();
+        assert!(!project.archived);
+        project.archived = true;
+        let saved = serde_json::to_string(&project).unwrap();
+        let restored: super::ProjectConfig = serde_json::from_str(&saved).unwrap();
+        assert!(restored.archived);
+        assert!(restored.agents.is_empty());
+    }
+
     use super::*;
 
     use std::time::{SystemTime, UNIX_EPOCH};
diff --git a/src/images.rs b/src/images.rs
index a3b4966..352177a 100644
--- a/src/images.rs
+++ b/src/images.rs
@@ -176,6 +176,7 @@ mod tests {
         });
         let config = Config {
             projects: vec![ProjectConfig {
+                archived: false,
                 path: "/project".into(),
                 ssh_host: None,
                 agents: vec![agent],
diff --git a/src/session/tests.rs b/src/session/tests.rs
index cb51f2f..463d2f3 100644
--- a/src/session/tests.rs
+++ b/src/session/tests.rs
@@ -1384,6 +1384,7 @@ fn harness_history_reloads_after_restart() {
     let session_id = session.session_id.clone().unwrap();
     let config = Config {
         projects: vec![ProjectConfig {
+            archived: false,
             path: temp.path().to_owned(),
             ssh_host: None,
             agents: vec![session.snapshot()],