diff --git a/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.mdx b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.mdx
new file mode 100644
index 00000000000..082fd662ccd
--- /dev/null
+++ b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.mdx
@@ -0,0 +1,47 @@
+import { Canvas, Meta, Title, Primary, Controls } from '@storybook/blocks'
+
+import { Heading } from 'storybook/components'
+
+import * as ExpandableNavItemStories from './ExpandableNavItem.stories'
+
+<Meta of={ExpandableNavItemStories} />
+
+<Title />
+
+- [Overview](#overview)
+- [Props](#props)
+- [Configuration Options](#configuration-options)
+- [Use cases and examples](#use-cases-and-examples)
+
+<Heading>
+  ## Overview The ExpandableNavItem component is a collapsible navigation item
+  that can contain other items or nested folders. It's commonly used in
+  navigation menus and sidebars to organize content hierarchically.
+</Heading>
+
+<Primary />
+
+## Props
+
+<Controls />
+
+## Configuration Options
+
+### With Icons
+
+<Canvas of={ExpandableNavItemStories.WithIcons} />
+
+### Nested Folders
+
+<Canvas of={ExpandableNavItemStories.NestedFolders} />
+
+### Disabled State
+
+<Canvas of={ExpandableNavItemStories.Disabled} />
+
+## Use cases and examples
+
+- Use for organizing navigation items hierarchically in sidebars or menus
+- Create nested folder structures for content organization
+- Group related navigation items together
+- Implement collapsible sections in a navigation interface
diff --git a/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.stories.tsx b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.stories.tsx
new file mode 100644
index 00000000000..bab0b740728
--- /dev/null
+++ b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.stories.tsx
@@ -0,0 +1,57 @@
+import type { Meta, StoryObj } from '@storybook/react'
+
+import { IconFolder, IconKebabHorizontal, IconPlaylists } from '../../icons'
+
+import { ExpandableNavItem } from './ExpandableNavItem'
+
+const meta: Meta<typeof ExpandableNavItem> = {
+  title: 'Navigation/ExpandableNavItem',
+  component: ExpandableNavItem,
+  parameters: {
+    layout: 'centered'
+  }
+}
+
+export default meta
+
+type Story = StoryObj<typeof ExpandableNavItem>
+
+export const Default: Story = {
+  args: {
+    label: 'Folder Name',
+    leftIcon: IconFolder,
+    rightIcon: <IconKebabHorizontal color='subdued' />
+  }
+}
+
+export const WithIcons: Story = {
+  args: {
+    label: 'Folder Name',
+    leftIcon: IconFolder,
+    rightIcon: <IconKebabHorizontal color='subdued' />
+  }
+}
+
+export const NestedFolders: Story = {
+  args: {
+    label: 'Parent Folder',
+    leftIcon: IconFolder,
+    rightIcon: <IconKebabHorizontal color='subdued' />,
+    defaultIsOpen: true,
+    nestedItems: (
+      <>
+        <ExpandableNavItem label='Nested Item 1' leftIcon={IconPlaylists} />
+        <ExpandableNavItem label='Nested Item 2' leftIcon={IconPlaylists} />
+      </>
+    )
+  }
+}
+
+export const Disabled: Story = {
+  args: {
+    label: 'Disabled Folder',
+    leftIcon: IconFolder,
+    rightIcon: <IconKebabHorizontal color='subdued' />,
+    css: { opacity: 0.5, pointerEvents: 'none' }
+  }
+}
diff --git a/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.tsx b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.tsx
new file mode 100644
index 00000000000..d06c99d5a0b
--- /dev/null
+++ b/packages/harmony/src/components/expandable-nav-item/ExpandableNavItem.tsx
@@ -0,0 +1,125 @@
+import { useMemo, useState } from 'react'
+
+import { useTheme, CSSObject } from '@emotion/react'
+
+import { HarmonyTheme } from '../../foundations/theme'
+import { IconCaretDown, IconCaretRight } from '../../icons'
+import { Flex } from '../layout/Flex'
+import { Text } from '../text'
+
+import type { ExpandableNavItemProps } from './types'
+
+const getStyles = (
+  theme: HarmonyTheme,
+  isOpen: boolean,
+  isHovered: boolean
+): CSSObject => {
+  const baseStyles: CSSObject = {
+    transition: `background-color ${theme.motion.hover}`,
+    cursor: 'pointer',
+    border: `1px solid ${isOpen ? theme.color.border.default : 'transparent'}`
+  }
+
+  const hoverStyles: CSSObject = {
+    backgroundColor: theme.color.background.surface2
+  }
+
+  return {
+    ...baseStyles,
+    ...(isHovered && hoverStyles)
+  }
+}
+
+export const ExpandableNavItem = ({
+  label,
+  leftIcon: LeftIcon,
+  rightIcon,
+  defaultIsOpen = false,
+  nestedItems,
+  shouldPersistRightIcon = false,
+  ...props
+}: ExpandableNavItemProps) => {
+  const [isOpen, setIsOpen] = useState(defaultIsOpen)
+  const [isHovered, setIsHovered] = useState(false)
+  const theme = useTheme()
+
+  const handleMouseEnter = () => setIsHovered(true)
+  const handleMouseLeave = () => setIsHovered(false)
+  const handleClick = () => setIsOpen(!isOpen)
+
+  const styles = useMemo(
+    () => getStyles(theme, isOpen, isHovered),
+    [theme, isOpen, isHovered]
+  )
+
+  const IconComponent = isHovered
+    ? isOpen
+      ? IconCaretDown
+      : IconCaretRight
+    : LeftIcon
+
+  return (
+    <Flex direction='column' role='navigation' {...props}>
+      <Flex
+        alignItems='center'
+        gap='s'
+        pl='s'
+        pr='s'
+        css={{
+          width: '240px',
+          cursor: 'pointer',
+          transition: `background-color ${theme.motion.hover}`
+        }}
+      >
+        <Flex
+          alignItems='center'
+          flex={1}
+          gap='m'
+          p='s'
+          borderRadius='m'
+          css={styles}
+          onMouseEnter={handleMouseEnter}
+          onMouseLeave={handleMouseLeave}
+          onClick={handleClick}
+          role='button'
+          aria-expanded={isOpen}
+          aria-controls={`${label}-content`}
+          aria-label={`${label} navigation section`}
+        >
+          <Flex
+            alignItems='center'
+            gap='m'
+            flex={1}
+            css={{
+              maxWidth: '240px'
+            }}
+          >
+            {IconComponent ? <IconComponent color='default' size='m' /> : null}
+            <Text
+              variant='title'
+              size='l'
+              strength='weak'
+              lineHeight='single'
+              color='default'
+              ellipses
+              maxLines={1}
+            >
+              {label}
+            </Text>
+          </Flex>
+          {isOpen || shouldPersistRightIcon ? rightIcon : null}
+        </Flex>
+      </Flex>
+      {isOpen && nestedItems ? (
+        <Flex
+          direction='column'
+          id={`${label}-content`}
+          role='region'
+          aria-label={`${label} content`}
+        >
+          {nestedItems}
+        </Flex>
+      ) : null}
+    </Flex>
+  )
+}
diff --git a/packages/harmony/src/components/expandable-nav-item/index.ts b/packages/harmony/src/components/expandable-nav-item/index.ts
new file mode 100644
index 00000000000..865bb5c40da
--- /dev/null
+++ b/packages/harmony/src/components/expandable-nav-item/index.ts
@@ -0,0 +1,2 @@
+export { ExpandableNavItem } from './ExpandableNavItem'
+export type { ExpandableNavItemProps } from './types'
diff --git a/packages/harmony/src/components/expandable-nav-item/types.ts b/packages/harmony/src/components/expandable-nav-item/types.ts
new file mode 100644
index 00000000000..93716a80fee
--- /dev/null
+++ b/packages/harmony/src/components/expandable-nav-item/types.ts
@@ -0,0 +1,19 @@
+import type { ReactNode } from 'react'
+
+import type { WithCSS } from '../../foundations/theme'
+import type { IconComponent } from '../icon'
+
+export type ExpandableNavItemProps = WithCSS<{
+  /** The label text of the navigation item. */
+  label: string
+  /** The icon component to display on the left side of the label. */
+  leftIcon?: IconComponent
+  /** Optional ReactNode to render on the right */
+  rightIcon?: ReactNode
+  /** Whether the folder is open by default. */
+  defaultIsOpen?: boolean
+  /** Nested items to render when the folder is open. */
+  nestedItems?: ReactNode
+  /** Whether the right icon should persist regardless of the open state. */
+  shouldPersistRightIcon?: boolean
+}>
diff --git a/packages/harmony/src/components/index.ts b/packages/harmony/src/components/index.ts
index 37d83367a8d..9698c438198 100644
--- a/packages/harmony/src/components/index.ts
+++ b/packages/harmony/src/components/index.ts
@@ -21,6 +21,8 @@ export * from './scrubber'
 export * from './skeleton'
 export * from './artwork'
 export * from './music-badge'
+export * from './expandable-nav-item'
+export * from './nav-item'
 export { default as LoadingSpinner } from './loading-spinner/LoadingSpinner'
 export * from './pill'
 export * from './common/HiddenInput'
diff --git a/packages/harmony/src/components/NavItem/NavItem.mdx b/packages/harmony/src/components/nav-item/NavItem.mdx
similarity index 100%
rename from packages/harmony/src/components/NavItem/NavItem.mdx
rename to packages/harmony/src/components/nav-item/NavItem.mdx
diff --git a/packages/harmony/src/components/NavItem/NavItem.stories.tsx b/packages/harmony/src/components/nav-item/NavItem.stories.tsx
similarity index 96%
rename from packages/harmony/src/components/NavItem/NavItem.stories.tsx
rename to packages/harmony/src/components/nav-item/NavItem.stories.tsx
index 382551f8999..fb06dfff836 100644
--- a/packages/harmony/src/components/NavItem/NavItem.stories.tsx
+++ b/packages/harmony/src/components/nav-item/NavItem.stories.tsx
@@ -5,7 +5,7 @@ import { IconFeed, IconVolumeLevel3 } from '../../icons'
 import { NavItem } from './NavItem'
 
 const meta: Meta<typeof NavItem> = {
-  title: 'Components/NavItem',
+  title: 'Navigation/NavItem',
   component: NavItem,
   parameters: {
     design: {
diff --git a/packages/harmony/src/components/NavItem/NavItem.tsx b/packages/harmony/src/components/nav-item/NavItem.tsx
similarity index 100%
rename from packages/harmony/src/components/NavItem/NavItem.tsx
rename to packages/harmony/src/components/nav-item/NavItem.tsx
diff --git a/packages/harmony/src/components/NavItem/index.ts b/packages/harmony/src/components/nav-item/index.ts
similarity index 100%
rename from packages/harmony/src/components/NavItem/index.ts
rename to packages/harmony/src/components/nav-item/index.ts
diff --git a/packages/harmony/src/components/NavItem/types.ts b/packages/harmony/src/components/nav-item/types.ts
similarity index 100%
rename from packages/harmony/src/components/NavItem/types.ts
rename to packages/harmony/src/components/nav-item/types.ts