diff --git a/storage/grpc_client.go b/storage/grpc_client.go
index a51cf9c086b1..e9e95993011b 100644
--- a/storage/grpc_client.go
+++ b/storage/grpc_client.go
@@ -420,6 +420,11 @@ func (c *grpcStorageClient) ListObjects(ctx context.Context, bucket string, q *Q
 		ctx = setUserProjectMetadata(ctx, s.userProject)
 	}
 	fetch := func(pageSize int, pageToken string) (token string, err error) {
+		// IncludeFoldersAsPrefixes is not supported for gRPC
+		// TODO: remove this when support is added in the proto.
+		if it.query.IncludeFoldersAsPrefixes {
+			return "", status.Errorf(codes.Unimplemented, "storage: IncludeFoldersAsPrefixes is not supported in gRPC")
+		}
 		var objects []*storagepb.Object
 		var gitr *gapic.ObjectIterator
 		err = run(it.ctx, func(ctx context.Context) error {
diff --git a/storage/http_client.go b/storage/http_client.go
index 0e157e4ba994..fe081b60b0ac 100644
--- a/storage/http_client.go
+++ b/storage/http_client.go
@@ -348,6 +348,7 @@ func (c *httpStorageClient) ListObjects(ctx context.Context, bucket string, q *Q
 		req.Versions(it.query.Versions)
 		req.IncludeTrailingDelimiter(it.query.IncludeTrailingDelimiter)
 		req.MatchGlob(it.query.MatchGlob)
+		req.IncludeFoldersAsPrefixes(it.query.IncludeFoldersAsPrefixes)
 		if selection := it.query.toFieldSelection(); selection != "" {
 			req.Fields("nextPageToken", googleapi.Field(selection))
 		}
diff --git a/storage/integration_test.go b/storage/integration_test.go
index 2caf19a47c54..afcbb822b4f3 100644
--- a/storage/integration_test.go
+++ b/storage/integration_test.go
@@ -57,6 +57,7 @@ import (
 	"google.golang.org/api/iterator"
 	itesting "google.golang.org/api/iterator/testing"
 	"google.golang.org/api/option"
+	raw "google.golang.org/api/storage/v1"
 	"google.golang.org/api/transport"
 	"google.golang.org/grpc"
 	"google.golang.org/grpc/codes"
@@ -1317,8 +1318,6 @@ func TestIntegration_ObjectIteration(t *testing.T) {
 }
 
 func TestIntegration_ObjectIterationMatchGlob(t *testing.T) {
-	// This is a separate test from the Object Iteration test above because
-	// MatchGlob is not yet implemented for gRPC.
 	multiTransportTest(skipJSONReads(context.Background(), "no reads in test"), t, func(t *testing.T, ctx context.Context, _ string, prefix string, client *Client) {
 		// Reset testTime, 'cause object last modification time should be within 5 min
 		// from test (test iteration if -count passed) start time.
@@ -1377,6 +1376,113 @@ func TestIntegration_ObjectIterationMatchGlob(t *testing.T) {
 	})
 }
 
+func TestIntegration_ObjectIterationManagedFolder(t *testing.T) {
+	ctx := skipGRPC("not yet implemented in gRPC")
+	multiTransportTest(skipJSONReads(ctx, "no reads in test"), t, func(t *testing.T, ctx context.Context, _ string, prefix string, client *Client) {
+		newBucketName := prefix + uidSpace.New()
+		h := testHelper{t}
+		bkt := client.Bucket(newBucketName).Retryer(WithPolicy(RetryAlways))
+
+		// Create bucket with UBLA enabled as this is necessary for managed folders.
+		h.mustCreate(bkt, testutil.ProjID(), &BucketAttrs{
+			UniformBucketLevelAccess: UniformBucketLevelAccess{
+				Enabled: true,
+			},
+		})
+
+		t.Cleanup(func() {
+			if err := killBucket(ctx, client, newBucketName); err != nil {
+				log.Printf("deleting %q: %v", newBucketName, err)
+			}
+		})
+		const defaultType = "text/plain"
+
+		// Populate object names and make a map for their contents.
+		objects := []string{
+			"obj1",
+			"obj2",
+			"obj/with/slashes",
+			"obj/",
+			"other/obj1",
+		}
+		contents := make(map[string][]byte)
+
+		// Test Writer.
+		for _, obj := range objects {
+			c := randomContents()
+			if err := writeObject(ctx, bkt.Object(obj), defaultType, c); err != nil {
+				t.Errorf("Write for %v failed with %v", obj, err)
+			}
+			contents[obj] = c
+		}
+
+		// Create a managed folder. This requires using the Apiary client as this is not available
+		// in the veneer layer.
+		// TODO: change to use storage control client once available.
+		call := client.raw.ManagedFolders.Insert(newBucketName, &raw.ManagedFolder{Name: "mf"})
+		mf, err := call.Context(ctx).Do()
+		if err != nil {
+			t.Fatalf("creating managed folder: %v", err)
+		}
+
+		t.Cleanup(func() {
+			// TODO: add this cleanup logic to killBucket as well once gRPC support is available.
+			call := client.raw.ManagedFolders.Delete(newBucketName, mf.Name)
+			call.Context(ctx).Do()
+		})
+
+		// Test that managed folders are only included when IncludeFoldersAsPrefixes is set.
+		cases := []struct {
+			name  string
+			query *Query
+			want  []string
+		}{
+			{
+				name:  "include folders",
+				query: &Query{Delimiter: "/", IncludeFoldersAsPrefixes: true},
+				want:  []string{"mf/", "obj/", "other/"},
+			},
+			{
+				name:  "no folders",
+				query: &Query{Delimiter: "/"},
+				want:  []string{"obj/", "other/"},
+			},
+		}
+
+		for _, c := range cases {
+			t.Run(c.name, func(t *testing.T) {
+				var gotNames []string
+				var gotPrefixes []string
+				it := bkt.Objects(context.Background(), c.query)
+				for {
+					attrs, err := it.Next()
+					if err == iterator.Done {
+						break
+					}
+					if err != nil {
+						t.Fatalf("iterator.Next: %v", err)
+					}
+					if attrs.Name != "" {
+						gotNames = append(gotNames, attrs.Name)
+					}
+					if attrs.Prefix != "" {
+						gotPrefixes = append(gotPrefixes, attrs.Prefix)
+					}
+				}
+
+				sortedNames := []string{"obj1", "obj2"}
+				if !cmp.Equal(sortedNames, gotNames) {
+					t.Errorf("names = %v, want %v", gotNames, sortedNames)
+				}
+
+				if !cmp.Equal(c.want, gotPrefixes) {
+					t.Errorf("prefixes = %v, want %v", gotPrefixes, c.want)
+				}
+			})
+		}
+	})
+}
+
 func TestIntegration_ObjectUpdate(t *testing.T) {
 	ctx := skipJSONReads(context.Background(), "no reads in test")
 	multiTransportTest(ctx, t, func(t *testing.T, ctx context.Context, bucket string, _ string, client *Client) {
diff --git a/storage/storage.go b/storage/storage.go
index 7af32ac6fcd0..f047ef9cd4aa 100644
--- a/storage/storage.go
+++ b/storage/storage.go
@@ -1620,6 +1620,11 @@ type Query struct {
 	// for syntax details. When Delimiter is set in conjunction with MatchGlob,
 	// it must be set to /.
 	MatchGlob string
+
+	// IncludeFoldersAsPrefixes includes Folders and Managed Folders in the set of
+	// prefixes returned by the query. Only applicable if Delimiter is set to /.
+	// IncludeFoldersAsPrefixes is not yet implemented in the gRPC API.
+	IncludeFoldersAsPrefixes bool
 }
 
 // attrToFieldMap maps the field names of ObjectAttrs to the underlying field