diff --git a/docs/sources/setup/install/helm/reference.md b/docs/sources/setup/install/helm/reference.md
index f61cba39da..999c4ff83d 100644
--- a/docs/sources/setup/install/helm/reference.md
+++ b/docs/sources/setup/install/helm/reference.md
@@ -11142,6 +11142,15 @@ true
 			<td><pre lang="json">
 "/rules"
 </pre>
+</td>
+		</tr>
+		<tr>
+			<td>sidecar.rules.folderAnnotation</td>
+			<td>string</td>
+			<td>The annotation overwriting the folder value. The annotation value can be either an absolute or a relative path. Relative paths will be relative to FOLDER. Useful for multi-tenancy setups.</td>
+			<td><pre lang="json">
+null
+</pre>
 </td>
 		</tr>
 		<tr>
diff --git a/production/helm/loki/CHANGELOG.md b/production/helm/loki/CHANGELOG.md
index 4074a85be7..e19413ba9d 100644
--- a/production/helm/loki/CHANGELOG.md
+++ b/production/helm/loki/CHANGELOG.md
@@ -14,6 +14,7 @@ Entries should include a reference to the pull request that introduced the chang
 [//]: # (<AUTOMATED_UPDATES_LOCATOR> : do not remove this line. This locator is used by the CI pipeline to automatically create a changelog entry for each new Loki release. Add other chart versions and respective changelog entries bellow this line.)
 - [BUGFIX] Move loki-sc-rules container from first location in `containers` to second to avoid it being selected as the default for `kubectl logs` or `kubectl exec`
 
+- [ENHANCEMENT] Add FOLDER_ANNOTATATION logic for sidecar container. [#13289](https://github.com/grafana/loki/pull/13289)
 
 ## 6.32.0
 
diff --git a/production/helm/loki/templates/backend/statefulset-backend.yaml b/production/helm/loki/templates/backend/statefulset-backend.yaml
index 40decdb149..6b5e5c943e 100644
--- a/production/helm/loki/templates/backend/statefulset-backend.yaml
+++ b/production/helm/loki/templates/backend/statefulset-backend.yaml
@@ -149,6 +149,10 @@ spec:
             {{- end }}
             - name: FOLDER
               value: "{{ .Values.sidecar.rules.folder }}"
+            {{- if .Values.sidecar.rules.folderAnnotation }}
+            - name: FOLDER_ANNOTATION
+              value: "{{ .Values.sidecar.rules.folderAnnotation }}"
+            {{- end }}
             - name: RESOURCE
               value: {{ quote .Values.sidecar.rules.resource }}
             {{- if .Values.sidecar.enableUniqueFilenames }}
diff --git a/production/helm/loki/values.yaml b/production/helm/loki/values.yaml
index 327b63ea6f..b735b5e48e 100644
--- a/production/helm/loki/values.yaml
+++ b/production/helm/loki/values.yaml
@@ -3622,6 +3622,10 @@ sidecar:
     labelValue: ""
     # -- Folder into which the rules will be placed.
     folder: /rules
+    # -- The annotation overwriting the folder value.
+    # The annotation value can be either an absolute or a relative path. Relative paths will be relative to FOLDER.
+    # Useful for multi-tenancy setups.
+    folderAnnotation: null
     # -- Comma separated list of namespaces. If specified, the sidecar will search for config-maps/secrets inside these namespaces.
     # Otherwise the namespace in which the sidecar is running will be used.
     # It's also possible to specify 'ALL' to search in all namespaces.