diff --git a/Source/Core/Core/BootManager.cpp b/Source/Core/Core/BootManager.cpp
index ec894b285c..217566be80 100644
--- a/Source/Core/Core/BootManager.cpp
+++ b/Source/Core/Core/BootManager.cpp
@@ -344,6 +344,8 @@ bool BootCore(const std::string& _rFilename)
                          StringFromFormat("Movie%s.raw", (i == 0) ? "A" : "B")))
           File::Delete(File::GetUserPath(D_GCUSER_IDX) +
                        StringFromFormat("Movie%s.raw", (i == 0) ? "A" : "B"));
+        if (File::Exists(File::GetUserPath(D_GCUSER_IDX) + "Movie"))
+          File::DeleteDirRecursively(File::GetUserPath(D_GCUSER_IDX) + "Movie");
       }
     }
   }
diff --git a/Source/Core/Core/HW/EXI/EXI.cpp b/Source/Core/Core/HW/EXI/EXI.cpp
index d47ffb478e..a983e98eba 100644
--- a/Source/Core/Core/HW/EXI/EXI.cpp
+++ b/Source/Core/Core/HW/EXI/EXI.cpp
@@ -33,6 +33,34 @@ static std::array<std::unique_ptr<CEXIChannel>, MAX_EXI_CHANNELS> g_Channels;
 static void ChangeDeviceCallback(u64 userdata, s64 cyclesLate);
 static void UpdateInterruptsCallback(u64 userdata, s64 cycles_late);
 
+namespace
+{
+void AddMemoryCards(int i)
+{
+  TEXIDevices memorycard_device;
+  if (Movie::IsPlayingInput() && Movie::IsConfigSaved())
+  {
+    if (Movie::IsUsingMemcard(i))
+    {
+      if (SConfig::GetInstance().m_EXIDevice[i] == EXIDEVICE_MEMORYCARDFOLDER)
+        memorycard_device = EXIDEVICE_MEMORYCARDFOLDER;
+      else
+        memorycard_device = EXIDEVICE_MEMORYCARD;
+    }
+    else
+    {
+      memorycard_device = EXIDEVICE_NONE;
+    }
+  }
+  else
+  {
+    memorycard_device = SConfig::GetInstance().m_EXIDevice[i];
+  }
+
+  g_Channels[i]->AddDevice(memorycard_device, 0);
+}
+}  // namespace
+
 void Init()
 {
   if (!g_SRAM_netplay_initialized)
@@ -44,18 +72,9 @@ void Init()
   for (u32 i = 0; i < MAX_EXI_CHANNELS; i++)
     g_Channels[i] = std::make_unique<CEXIChannel>(i);
 
-  if (Movie::IsPlayingInput() && Movie::IsConfigSaved())
-  {
-    g_Channels[0]->AddDevice(Movie::IsUsingMemcard(0) ? EXIDEVICE_MEMORYCARD : EXIDEVICE_NONE,
-                             0);  // SlotA
-    g_Channels[1]->AddDevice(Movie::IsUsingMemcard(1) ? EXIDEVICE_MEMORYCARD : EXIDEVICE_NONE,
-                             0);  // SlotB
-  }
-  else
-  {
-    g_Channels[0]->AddDevice(SConfig::GetInstance().m_EXIDevice[0], 0);  // SlotA
-    g_Channels[1]->AddDevice(SConfig::GetInstance().m_EXIDevice[1], 0);  // SlotB
-  }
+  for (int i = 0; i < MAX_MEMORYCARD_SLOTS; i++)
+    AddMemoryCards(i);
+
   g_Channels[0]->AddDevice(EXIDEVICE_MASKROM, 1);
   g_Channels[0]->AddDevice(SConfig::GetInstance().m_EXIDevice[2], 2);  // Serial Port 1
   g_Channels[2]->AddDevice(EXIDEVICE_AD16, 0);
diff --git a/Source/Core/Core/HW/EXI/EXI.h b/Source/Core/Core/HW/EXI/EXI.h
index f6c6395e18..9476e10c16 100644
--- a/Source/Core/Core/HW/EXI/EXI.h
+++ b/Source/Core/Core/HW/EXI/EXI.h
@@ -21,6 +21,7 @@ class Mapping;
 
 enum
 {
+  MAX_MEMORYCARD_SLOTS = 2,
   MAX_EXI_CHANNELS = 3
 };
 
diff --git a/Source/Core/Core/HW/EXI/EXI_DeviceMemoryCard.cpp b/Source/Core/Core/HW/EXI/EXI_DeviceMemoryCard.cpp
index 801d2b1580..86fa60db5a 100644
--- a/Source/Core/Core/HW/EXI/EXI_DeviceMemoryCard.cpp
+++ b/Source/Core/Core/HW/EXI/EXI_DeviceMemoryCard.cpp
@@ -163,9 +163,14 @@ void CEXIMemoryCard::SetupGciFolder(u16 sizeMb)
 
   const bool shift_jis = region == DiscIO::Region::NTSC_J;
 
-  std::string strDirectoryName = File::GetUserPath(D_GCUSER_IDX) +
-                                 SConfig::GetDirectoryForRegion(region) + DIR_SEP +
-                                 StringFromFormat("Card %c", 'A' + card_index);
+  std::string strDirectoryName = File::GetUserPath(D_GCUSER_IDX);
+
+  if (Movie::IsPlayingInput() && Movie::IsConfigSaved() && Movie::IsUsingMemcard(card_index) &&
+      Movie::IsStartingFromClearSave())
+    strDirectoryName += "Movie" DIR_SEP;
+
+  strDirectoryName = strDirectoryName + SConfig::GetDirectoryForRegion(region) + DIR_SEP +
+                     StringFromFormat("Card %c", 'A' + card_index);
 
   if (!File::Exists(strDirectoryName))  // first use of memcard folder, migrate automatically
   {
diff --git a/Source/Core/Core/Movie.cpp b/Source/Core/Core/Movie.cpp
index aa823dbd55..0f34fa0b31 100644
--- a/Source/Core/Core/Movie.cpp
+++ b/Source/Core/Core/Movie.cpp
@@ -465,6 +465,7 @@ bool IsUsingMemcard(int memcard)
 {
   return (s_memcards & (1 << memcard)) != 0;
 }
+
 bool IsSyncGPU()
 {
   return s_bSyncGPU;
@@ -1486,8 +1487,12 @@ void GetSettings()
     s_bClearSave = !File::Exists(SConfig::GetInstance().m_strMemoryCardA);
     s_language = SConfig::GetInstance().SelectedLanguage;
   }
-  s_memcards |= (SConfig::GetInstance().m_EXIDevice[0] == EXIDEVICE_MEMORYCARD) << 0;
-  s_memcards |= (SConfig::GetInstance().m_EXIDevice[1] == EXIDEVICE_MEMORYCARD) << 1;
+  s_memcards |= (SConfig::GetInstance().m_EXIDevice[0] == EXIDEVICE_MEMORYCARD ||
+                 SConfig::GetInstance().m_EXIDevice[0] == EXIDEVICE_MEMORYCARDFOLDER)
+                << 0;
+  s_memcards |= (SConfig::GetInstance().m_EXIDevice[1] == EXIDEVICE_MEMORYCARD ||
+                 SConfig::GetInstance().m_EXIDevice[1] == EXIDEVICE_MEMORYCARDFOLDER)
+                << 1;
 
   std::array<u8, 20> revision = ConvertGitRevisionToBytes(scm_rev_git_str);
   std::copy(std::begin(revision), std::end(revision), std::begin(s_revision));