diff --git a/lib/next_ls.ex b/lib/next_ls.ex
index 4a5cc898..8ad85548 100644
--- a/lib/next_ls.ex
+++ b/lib/next_ls.ex
@@ -21,6 +21,7 @@ defmodule NextLS do
   alias GenLSP.Requests.TextDocumentCompletion
   alias GenLSP.Requests.TextDocumentDefinition
   alias GenLSP.Requests.TextDocumentDocumentSymbol
+  alias GenLSP.Requests.TextDocumentFoldingRange
   alias GenLSP.Requests.TextDocumentFormatting
   alias GenLSP.Requests.TextDocumentHover
   alias GenLSP.Requests.TextDocumentReferences
@@ -157,6 +158,7 @@ defmodule NextLS do
              "alias-refactor"
            ]
          },
+         folding_range_provider: true,
          hover_provider: true,
          workspace_symbol_provider: true,
          document_symbol_provider: true,
@@ -523,6 +525,24 @@ defmodule NextLS do
     {:reply, symbols, lsp}
   end
 
+  def handle_request(%TextDocumentFoldingRange{params: %{text_document: %{uri: uri}}}, lsp) do
+    document = lsp.assigns.documents[uri]
+
+    resp =
+      if is_list(document) do
+        {:reply, NextLS.FoldingRange.new(document), lsp}
+      else
+        GenLSP.warning(
+          lsp,
+          "[Next LS] The file #{uri} was not found in the server's process state. Something must have gone wrong when opening, changing, or saving the file."
+        )
+
+        {:reply, nil, lsp}
+      end
+
+    resp
+  end
+
   def handle_request(%TextDocumentFormatting{params: %{text_document: %{uri: uri}}}, lsp) do
     document = lsp.assigns.documents[uri]
 
diff --git a/lib/next_ls/folding_range.ex b/lib/next_ls/folding_range.ex
new file mode 100644
index 00000000..86baf160
--- /dev/null
+++ b/lib/next_ls/folding_range.ex
@@ -0,0 +1,68 @@
+defmodule NextLS.FoldingRange do
+  @moduledoc "Traverses the AST and creates folding ranges"
+
+  alias GenLSP.Structures.FoldingRange
+  alias GenLSP.Structures.Position
+  alias GenLSP.Structures.Range
+  alias Sourceror.Zipper, as: Z
+
+  @spec new(text :: String.t()) :: [FoldingRange.t()]
+  def new(text) do
+    with {:ok, ast} <- parse(text) do
+      {_ast, foldings} =
+        ast
+        |> Z.zip()
+        |> Z.traverse([], fn tree, acc ->
+          node = Z.node(tree)
+
+          if is_foldable?(node) do
+            {tree, [node | acc]}
+          else
+            {tree, acc}
+          end
+        end)
+
+      create_folding = fn node ->
+        range = make_range(node)
+
+        %FoldingRange{
+          kind: "region",
+          start_line: range.start.line,
+          start_character: range.start.character,
+          end_line: range.end.line,
+          end_character: range.end.character,
+          collapsed_text: Enum.at(text, range.start.line) <> " ..."
+        }
+      end
+
+      foldings
+      |> Enum.map(create_folding)
+      |> Enum.reverse()
+    end
+  end
+
+  defp parse(lines) do
+    lines
+    |> Enum.join("\n")
+    |> Spitfire.parse(literal_encoder: &{:ok, {:__block__, &2, [&1]}})
+    |> case do
+      {:error, ast, _errors} ->
+        {:ok, ast}
+
+      other ->
+        other
+    end
+  end
+
+  defp is_foldable?({_, _, [_name, [{{:__block__, _, [:do]}, _}]]}), do: true
+  defp is_foldable?(_), do: false
+
+  defp make_range({_, ctx, _}) do
+    eoe = ctx[:end_of_expression]
+
+    %Range{
+      start: %Position{line: ctx[:line] - 1, character: ctx[:column] - 1},
+      end: %Position{line: eoe[:line] - 1, character: eoe[:column] - 1}
+    }
+  end
+end
diff --git a/test/next_ls/folding_range_test.exs b/test/next_ls/folding_range_test.exs
new file mode 100644
index 00000000..846ca4be
--- /dev/null
+++ b/test/next_ls/folding_range_test.exs
@@ -0,0 +1,72 @@
+defmodule NextLS.AliasTest do
+  use ExUnit.Case, async: true
+
+  alias GenLSP.Structures.FoldingRange, as: FR
+  alias NextLS.FoldingRange
+
+  test "creates a folding range for modules" do
+    code = """
+    defmodule MyModule do
+      # Some text here
+    end
+    """
+
+    assert [
+             %FR{
+               start_line: 0,
+               start_character: 0,
+               end_line: 2,
+               end_character: 3,
+               kind: "region",
+               collapsed_text: "defmodule MyModule do ..."
+             }
+           ] = create_folding(code)
+  end
+
+  test "creates a folding range for functions" do
+    code = """
+    defmodule MyModule do
+      def foo(a, b) do
+        a + b
+      end
+
+      defp bar(a, b, c) do
+        a + b + c
+      end
+    end
+    """
+
+    assert [
+             %FR{
+               start_line: 0,
+               start_character: 0,
+               end_line: 8,
+               end_character: 3,
+               kind: "region",
+               collapsed_text: "defmodule MyModule do ..."
+             },
+             %FR{
+               start_line: 1,
+               start_character: 2,
+               end_line: 3,
+               end_character: 5,
+               kind: "region",
+               collapsed_text: "  def foo(a, b) do ..."
+             },
+             %FR{
+               start_line: 5,
+               start_character: 2,
+               end_line: 7,
+               end_character: 5,
+               kind: "region",
+               collapsed_text: "  defp bar(a, b, c) do ..."
+             }
+           ] = create_folding(code)
+  end
+
+  defp create_folding(code) do
+    code
+    |> String.split("\n")
+    |> FoldingRange.new()
+  end
+end