diff --git a/frontend/src/app/shared/components/storages/file-picker-base-modal/file-picker-base-modal.component.ts b/frontend/src/app/shared/components/storages/file-picker-base-modal/file-picker-base-modal.component.ts
index da706ce475f1..a807e9da5064 100644
--- a/frontend/src/app/shared/components/storages/file-picker-base-modal/file-picker-base-modal.component.ts
+++ b/frontend/src/app/shared/components/storages/file-picker-base-modal/file-picker-base-modal.component.ts
@@ -65,7 +65,7 @@ import {
   v3ErrorIdentifierOutboundRequestForbidden,
 } from 'core-app/features/hal/resources/error-resource';
 
-type Alert = 'none'|'noAccess'|'managedFolderNoAccess'|'managedFolderNotFound';
+type Alert = 'none'|'noAccess'|'managedFolderNoAccess'|'managedFolderNotFound'|'cannotCreateFolder';
 
 @Directive()
 export abstract class FilePickerBaseModalComponent extends OpModalComponent implements OnInit, OnDestroy {
diff --git a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
index f6e263e38afd..9fb30308ad89 100644
--- a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
+++ b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
@@ -76,6 +76,7 @@
       <button
         type="button"
         class="button spot-action-bar--action"
+        [disabled]="!canCreateFolder"
         (click)="createAndNavigateToFolder()"
       >
         <span class="spot-icon spot-icon_folder-add op-files-tab--icon op-files-tab--icon_forums"></span>
diff --git a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
index 2e9ca084c8c3..94b658715cf9 100644
--- a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
+++ b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
@@ -63,6 +63,7 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
     alertNoAccess: this.i18n.t('js.storages.files.project_folder_no_access'),
     alertNoManagedProjectFolder: this.i18n.t('js.storages.files.managed_project_folder_not_available'),
     alertNoAccessToManagedProjectFolder: this.i18n.t('js.storages.files.managed_project_folder_no_access'),
+    alertCannotCreateFolder: this.i18n.t('js.storages.files.cannot_create_folder'),
     content: {
       empty: this.i18n.t('js.storages.files.empty_folder'),
       emptyHint: this.i18n.t('js.storages.files.empty_folder_location_hint'),
@@ -102,6 +103,14 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
     return this.currentDirectory.permissions.some((value) => value === 'writeable');
   }
 
+  public get canCreateFolder():boolean {
+    if (!this.currentDirectory) {
+      return false;
+    }
+
+    return this.currentDirectory.permissions.some((value) => value === 'writeable');
+  }
+
   public get alertText():Observable<string> {
     return this.showAlert
       .pipe(
@@ -113,6 +122,8 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
               return this.text.alertNoAccessToManagedProjectFolder;
             case 'managedFolderNotFound':
               return this.text.alertNoManagedProjectFolder;
+            case 'cannotCreateFolder':
+              return this.text.alertCannotCreateFolder;
             case 'none':
               return '';
             default:
@@ -183,8 +194,9 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
         name: value,
         parent_id: this.currentDirectory.id,
       },
-    ).subscribe((newlyCreatedDirectory) => {
-      this.changeLevel(newlyCreatedDirectory);
+    ).subscribe({
+      next: (newlyCreatedDirectory) => this.changeLevel(newlyCreatedDirectory),
+      error: (_) => this.showAlert.next('cannotCreateFolder'),
     });
   }
 }
diff --git a/modules/storages/config/locales/js-en.yml b/modules/storages/config/locales/js-en.yml
index ff5c94d3fc69..8d82b0ef9d33 100644
--- a/modules/storages/config/locales/js-en.yml
+++ b/modules/storages/config/locales/js-en.yml
@@ -50,6 +50,7 @@ en:
           newest data, and try again.
         managed_project_folder_no_access: >
           You have no access yet to the managed project folder. Please wait a bit and try again.
+        cannot_create_folder: Failed to create folder. Avoid using special characters and symbols.
         upload_keep_both: "Keep both"
         upload_replace: "Replace"