diff --git a/plugins/adr/package.json b/plugins/adr/package.json
index 453ff62792..55bcc21d62 100644
--- a/plugins/adr/package.json
+++ b/plugins/adr/package.json
@@ -34,6 +34,7 @@
     "@material-ui/core": "^4.12.2",
     "@material-ui/icons": "^4.9.1",
     "@material-ui/lab": "4.0.0-alpha.61",
+    "lodash": "^4.17.21",
     "react-markdown": "^8.0.0",
     "react-use": "^17.2.4",
     "remark-gfm": "^3.0.1"
diff --git a/plugins/adr/src/components/EntityAdrContent/EntityAdrContent.tsx b/plugins/adr/src/components/EntityAdrContent/EntityAdrContent.tsx
index 58183b5230..846678f718 100644
--- a/plugins/adr/src/components/EntityAdrContent/EntityAdrContent.tsx
+++ b/plugins/adr/src/components/EntityAdrContent/EntityAdrContent.tsx
@@ -16,9 +16,14 @@
 
 import React, { useEffect, useState } from 'react';
 import { Link, useSearchParams } from 'react-router-dom';
+import useAsync from 'react-use/lib/useAsync';
+
+import groupBy from 'lodash/groupBy';
+
 import {
   Content,
   ContentHeader,
+  InfoCard,
   MissingAnnotationEmptyState,
   Progress,
   SupportButton,
@@ -35,27 +40,118 @@ import {
 } from '@backstage/plugin-adr-common';
 import { useEntity } from '@backstage/plugin-catalog-react';
 import {
+  Box,
   Chip,
+  Collapse,
   Grid,
   List,
   ListItem,
+  ListItemIcon,
   ListItemText,
   makeStyles,
   Theme,
   Typography,
 } from '@material-ui/core';
+import ExpandLess from '@material-ui/icons/ExpandLess';
+import ExpandMore from '@material-ui/icons/ExpandMore';
+import FolderIcon from '@material-ui/icons/Folder';
 
+import { adrApiRef, AdrFileInfo } from '../../api';
 import { rootRouteRef } from '../../routes';
 import { AdrContentDecorator, AdrReader } from '../AdrReader';
-import { adrApiRef, AdrFileInfo } from '../../api';
-import useAsync from 'react-use/lib/useAsync';
 
 const useStyles = makeStyles((theme: Theme) => ({
   adrMenu: {
     backgroundColor: theme.palette.background.paper,
   },
+  adrContainerTitle: {
+    color: theme.palette.grey[700],
+    marginBottom: theme.spacing(1),
+  },
+  adrChip: {
+    position: 'absolute',
+    right: 0,
+  },
 }));
 
+const AdrListContainer = (props: {
+  adrs: AdrFileInfo[];
+  selectedAdr: string;
+  title: string;
+}) => {
+  const { adrs, selectedAdr, title } = props;
+  const classes = useStyles();
+  const rootLink = useRouteRef(rootRouteRef);
+  const [open, setOpen] = React.useState(true);
+
+  const getChipColor = (status: string) => {
+    switch (status) {
+      case 'accepted':
+        return 'primary';
+      case 'rejected' || 'deprecated':
+        return 'secondary';
+      default:
+        return 'default';
+    }
+  };
+
+  const handleClick = () => {
+    setOpen(!open);
+  };
+
+  return (
+    <>
+      {title && (
+        <ListItem
+          button
+          className={classes.adrContainerTitle}
+          onClick={handleClick}
+        >
+          <ListItemIcon>
+            <FolderIcon />
+          </ListItemIcon>
+          <ListItemText primary={title} />
+          {open ? <ExpandLess /> : <ExpandMore />}
+        </ListItem>
+      )}
+      <Collapse in={open} timeout="auto" unmountOnExit>
+        <List dense>
+          {adrs.map((adr, idx) => (
+            <ListItem
+              button
+              component={Link}
+              key={idx}
+              selected={selectedAdr === adr.path}
+              to={`${rootLink()}?record=${adr.name}`}
+            >
+              <ListItemText
+                primary={adr.title ?? adr?.name.replace(/\.md$/, '')}
+                primaryTypographyProps={{
+                  style: { whiteSpace: 'normal' },
+                }}
+                secondary={
+                  <Box>
+                    {adr.date}
+                    {adr.status && (
+                      <Chip
+                        color={getChipColor(adr.status)}
+                        label={adr.status}
+                        size="small"
+                        variant="outlined"
+                        className={classes.adrChip}
+                      />
+                    )}
+                  </Box>
+                }
+              />
+            </ListItem>
+          ))}
+        </List>
+      </Collapse>
+    </>
+  );
+};
+
 /**
  * Component for browsing ADRs on an entity page.
  * @public
@@ -67,7 +163,6 @@ export const EntityAdrContent = (props: {
   const { contentDecorators, filePathFilterFn } = props;
   const classes = useStyles();
   const { entity } = useEntity();
-  const rootLink = useRouteRef(rootRouteRef);
   const [adrList, setAdrList] = useState<AdrFileInfo[]>([]);
   const [searchParams, setSearchParams] = useSearchParams();
   const scmIntegrations = useApi(scmIntegrationsApiRef);
@@ -82,6 +177,10 @@ export const EntityAdrContent = (props: {
   const selectedAdr =
     adrList.find(adr => adr.name === searchParams.get('record'))?.path ?? '';
 
+  const adrSubDirectoryFunc = (adr: AdrFileInfo) => {
+    return adr.path.split('/').slice(0, -1).join('/');
+  };
+
   useEffect(() => {
     if (adrList.length && !selectedAdr) {
       searchParams.set('record', adrList[0].name);
@@ -105,16 +204,9 @@ export const EntityAdrContent = (props: {
     setAdrList(adrs);
   }, [filePathFilterFn, value]);
 
-  const getChipColor = (status: string) => {
-    switch (status) {
-      case 'accepted':
-        return 'primary';
-      case 'rejected' || 'deprecated':
-        return 'secondary';
-      default:
-        return 'default';
-    }
-  };
+  const adrListGrouped = Object.entries(
+    groupBy(adrList, adrSubDirectoryFunc),
+  ).sort();
 
   return (
     <Content>
@@ -138,33 +230,18 @@ export const EntityAdrContent = (props: {
         (adrList.length ? (
           <Grid container direction="row">
             <Grid item xs={3}>
-              <List className={classes.adrMenu} dense>
-                {adrList.map((adr, idx) => (
-                  <ListItem
-                    key={idx}
-                    button
-                    component={Link}
-                    to={`${rootLink()}?record=${adr.name}`}
-                    selected={selectedAdr === adr.path}
-                  >
-                    <ListItemText
-                      primaryTypographyProps={{
-                        style: { whiteSpace: 'normal' },
-                      }}
-                      primary={adr.title ?? adr?.name.replace(/\.md$/, '')}
-                      secondary={adr.date}
+              <InfoCard>
+                <List className={classes.adrMenu} dense>
+                  {adrListGrouped.map(([title, adrs], idx) => (
+                    <AdrListContainer
+                      adrs={adrs}
+                      key={idx}
+                      selectedAdr={selectedAdr}
+                      title={title}
                     />
-                    {adr.status && (
-                      <Chip
-                        label={adr.status}
-                        size="small"
-                        variant="outlined"
-                        color={getChipColor(adr.status)}
-                      />
-                    )}
-                  </ListItem>
-                ))}
-              </List>
+                  ))}
+                </List>
+              </InfoCard>
             </Grid>
             <Grid item xs={9}>
               <AdrReader adr={selectedAdr} decorators={contentDecorators} />
diff --git a/yarn.lock b/yarn.lock
index 3f5fbf684b..0c16c829a6 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -4316,6 +4316,7 @@ __metadata:
     "@types/git-url-parse": ^9.0.0
     "@types/node": "*"
     cross-fetch: ^3.1.5
+    lodash: ^4.17.21
     msw: ^1.0.0
     react-markdown: ^8.0.0
     react-use: ^17.2.4