diff --git a/charts/nextcloud-mcp-server/dashboards/README.md b/charts/nextcloud-mcp-server/dashboards/README.md
index af04709..314ad52 100644
--- a/charts/nextcloud-mcp-server/dashboards/README.md
+++ b/charts/nextcloud-mcp-server/dashboards/README.md
@@ -123,6 +123,10 @@ kubectl create configmap nextcloud-mcp-dashboard \
 # Add sidecar discovery label
 kubectl label configmap nextcloud-mcp-dashboard \
   grafana_dashboard=1 \
+  -n monitoring
+
+# Add folder annotation (annotations support spaces, unlike labels)
+kubectl annotate configmap nextcloud-mcp-dashboard \
   grafana_folder="Nextcloud MCP" \
   -n monitoring
 ```
diff --git a/charts/nextcloud-mcp-server/templates/dashboard-configmap.yaml b/charts/nextcloud-mcp-server/templates/dashboard-configmap.yaml
index b1d59dd..5f77657 100644
--- a/charts/nextcloud-mcp-server/templates/dashboard-configmap.yaml
+++ b/charts/nextcloud-mcp-server/templates/dashboard-configmap.yaml
@@ -9,15 +9,16 @@ metadata:
     {{- with .Values.dashboards.labels }}
     {{- toYaml . | nindent 4 }}
     {{- end }}
-    # Grafana sidecar discovery labels
+    # Grafana sidecar discovery label
     grafana_dashboard: "1"
-    {{- if .Values.dashboards.grafanaFolder }}
-    grafana_folder: {{ .Values.dashboards.grafanaFolder | quote }}
-    {{- end }}
   annotations:
     {{- with .Values.dashboards.annotations }}
     {{- toYaml . | nindent 4 }}
     {{- end }}
+    # Grafana folder name (annotations support spaces, unlike labels)
+    {{- if .Values.dashboards.grafanaFolder }}
+    grafana_folder: {{ .Values.dashboards.grafanaFolder | quote }}
+    {{- end }}
 data:
   nextcloud-mcp-server.json: |-
 {{ .Files.Get "dashboards/nextcloud-mcp-server.json" | indent 4 }}
diff --git a/charts/nextcloud-mcp-server/values.yaml b/charts/nextcloud-mcp-server/values.yaml
index 9330fa5..a14a65b 100644
--- a/charts/nextcloud-mcp-server/values.yaml
+++ b/charts/nextcloud-mcp-server/values.yaml
@@ -210,7 +210,8 @@ dashboards:
   # Enable automatic dashboard provisioning via ConfigMap
   enabled: false
   # Grafana folder name where dashboards will be imported
-  # The grafana-sidecar looks for ConfigMaps with label "grafana_folder"
+  # The grafana-sidecar looks for ConfigMaps with label "grafana_dashboard: 1"
+  # and reads the folder name from annotation "grafana_folder" (supports spaces)
   grafanaFolder: "Nextcloud MCP"
   # Additional labels for dashboard ConfigMap
   # These will be added alongside the required "grafana_dashboard: 1" label