--- a/mobile/android/base/java/org/mozilla/gecko/CreateBookmarkFolderDialog.java
+++ b/mobile/android/base/java/org/mozilla/gecko/CreateBookmarkFolderDialog.java
@@ -4,34 +4,38 @@
  * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
 
 package org.mozilla.gecko;
 
 import org.mozilla.gecko.db.BrowserDB;
 import org.mozilla.gecko.util.ThreadUtils;
 import org.mozilla.gecko.util.UIAsyncTask;
 
+import android.app.Activity;
 import android.content.ContentResolver;
+import android.content.Intent;
 import android.os.Bundle;
 import android.support.annotation.Nullable;
 import android.support.annotation.StringRes;
 import android.support.design.widget.Snackbar;
 import android.support.design.widget.TextInputLayout;
+import android.support.v4.app.FragmentTransaction;
 import android.view.LayoutInflater;
 import android.view.View;
 import android.view.ViewGroup;
 import android.widget.EditText;
 
 public class CreateBookmarkFolderDialog extends BookmarkToolbarDialog {
     // The id and name of the folder in which the new folder will be created.
     private int parentFolderId;
     private String parentFolderName;
 
     private ViewGroup rootView;
     private EditText newFolderNameEdit;
+    private EditText selectParentFolderEdit;
 
     public static CreateBookmarkFolderDialog newInstance(int currentFolderId, String currentFolderName) {
         final CreateBookmarkFolderDialog dialog = new CreateBookmarkFolderDialog();
         dialog.setDialogFolderArguments(currentFolderId, currentFolderName);
         return dialog;
     }
 
     @Override
@@ -97,20 +101,48 @@ public class CreateBookmarkFolderDialog 
 
         setupToolbar(folderCreateView, R.menu.bookmarks_dialog_menu_save);
 
         final TextInputLayout newFolderNameLayout = (TextInputLayout) folderCreateView.findViewById(R.id.new_folder_name_layout);
         newFolderNameEdit = (EditText) folderCreateView.findViewById(R.id.new_folder_name);
         final String emptyFolderNameErrorText = getString(R.string.bookmark_add_folder_name_empty_error);
         newFolderNameEdit.addTextChangedListener(new EmptyTextWatcher(newFolderNameLayout, emptyFolderNameErrorText));
 
-        final EditText selectParentFolderEdit = (EditText) folderCreateView.findViewById(R.id.select_parent_folder);
-        selectParentFolderEdit.setText(parentFolderName);
+        selectParentFolderEdit = (EditText) folderCreateView.findViewById(R.id.select_parent_folder);
+        // The parent folder text is set in onResume (see the note there for explanation).
+
         selectParentFolderEdit.setOnClickListener(new View.OnClickListener() {
             @Override
             public void onClick(View v) {
-                // TODO: Create new fragment to select the parent folder of the new folder.
+                final SelectFolderForNewBookmarkFolderDialog dialog =
+                        SelectFolderForNewBookmarkFolderDialog.newInstance(parentFolderId);
+                dialog.setTargetFragment(CreateBookmarkFolderDialog.this, TARGET_FRAGMENT_CODE_UNUSED);
+                final FragmentTransaction transaction = getFragmentManager().beginTransaction();
+                transaction.replace(android.R.id.content, dialog)
+                        .setTransition(FragmentTransaction.TRANSIT_FRAGMENT_OPEN)
+                        .addToBackStack(null)
+                        .commit();
             }
         });
 
         return folderCreateView;
     }
+
+    @Override
+    public void onActivityResult(int requestCode, int resultCode, Intent data) {
+        if (resultCode != Activity.RESULT_OK || data == null) {
+            return;
+        }
+
+        parentFolderName = data.getStringExtra(ARG_FOLDER_NAME);
+        parentFolderId = data.getIntExtra(ARG_FOLDER_ID, INVALID_FOLDER_ID);
+        // The EditText displaying the parent folder is updated in onResume.
+    }
+
+    @Override
+    public void onResume() {
+        super.onResume();
+
+        // Updating the folder text after a new folder has been chosen doesn't work in
+        // onActivityResult or onCreateView, so we just always set it here.
+        selectParentFolderEdit.setText(parentFolderName);
+    }
 }

new file mode 100644
--- /dev/null
+++ b/mobile/android/base/java/org/mozilla/gecko/SelectFolderForNewBookmarkFolderDialog.java
@@ -0,0 +1,53 @@
+/* -*- Mode: Java; c-basic-offset: 4; tab-width: 20; indent-tabs-mode: nil; -*-
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+package org.mozilla.gecko;
+
+import android.os.Bundle;
+import android.support.annotation.Nullable;
+import android.support.annotation.StringRes;
+import android.view.LayoutInflater;
+import android.view.View;
+import android.view.ViewGroup;
+
+public class SelectFolderForNewBookmarkFolderDialog extends BookmarkFolderTreeDialog {
+    private int currentFolderId;
+
+    public static SelectFolderForNewBookmarkFolderDialog newInstance(int currentFolderId) {
+        final SelectFolderForNewBookmarkFolderDialog dialog = new SelectFolderForNewBookmarkFolderDialog();
+        final Bundle args = new Bundle();
+        args.putInt(ARG_FOLDER_ID, currentFolderId);
+        dialog.setArguments(args);
+        return dialog;
+    }
+
+    @Override
+    public void onCreate(@Nullable Bundle savedInstanceState) {
+        super.onCreate(savedInstanceState);
+
+        final Bundle args = getArguments();
+        currentFolderId = args.getInt(ARG_FOLDER_ID);
+    }
+
+    @Override
+    protected @StringRes int toolbarTitle() {
+        return R.string.bookmark_dialog_choose_folder;
+    }
+
+    @Override
+    protected int currentFolderId() {
+        return currentFolderId;
+    }
+
+    @Nullable
+    @Override
+    public View onCreateView(LayoutInflater inflater, final ViewGroup container, Bundle savedInstanceState) {
+        final View view = inflater.inflate(R.layout.choose_folder_for_new_folder, container, false);
+
+        setupToolbar(view, null);
+        setupFolderTree(view, false);
+        return view;
+    }
+}

--- a/mobile/android/base/moz.build
+++ b/mobile/android/base/moz.build
@@ -684,16 +684,17 @@ gbjar.sources += ['java/org/mozilla/geck
     'restrictions/RestrictedProfileConfiguration.java',
     'restrictions/RestrictionCache.java',
     'restrictions/RestrictionConfiguration.java',
     'restrictions/RestrictionProvider.java',
     'restrictions/Restrictions.java',
     'ScreenshotObserver.java',
     'search/SearchEngine.java',
     'search/SearchEngineManager.java',
+    'SelectFolderForNewBookmarkFolderDialog.java',
     'SessionParser.java',
     'SharedPreferencesHelper.java',
     'SiteIdentity.java',
     'SnackbarBuilder.java',
     'SuggestClient.java',
     'Tab.java',
     'tabqueue/TabQueueHelper.java',
     'tabqueue/TabQueuePrompt.java',

new file mode 100644
--- /dev/null
+++ b/mobile/android/base/resources/layout/choose_folder_for_new_folder.xml
@@ -0,0 +1,20 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- This Source Code Form is subject to the terms of the Mozilla Public
+   - License, v. 2.0. If a copy of the MPL was not distributed with this
+   - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
+
+<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
+              android:orientation="vertical"
+              android:layout_width="match_parent"
+              android:layout_height="match_parent"
+              android:background="@android:color/white"
+              android:theme="@style/GeckoAlertDialog">
+
+    <include layout="@layout/bookmark_dialog_toolbar"/>
+
+    <include layout="@layout/folder_tree_view"
+             android:layout_width="match_parent"
+             android:layout_height="match_parent"
+             android:layout_marginTop="18dp"/>
+
+</LinearLayout>