diff --git a/apps/client/src/entities/fnote.ts b/apps/client/src/entities/fnote.ts
index bcb6c408e..6d0a15506 100644
--- a/apps/client/src/entities/fnote.ts
+++ b/apps/client/src/entities/fnote.ts
@@ -417,7 +417,7 @@ export default class FNote {
         return notePaths;
     }
 
-    getSortedNotePathRecords(hoistedNoteId = "root"): NotePathRecord[] {
+    getSortedNotePathRecords(hoistedNoteId = "root", activeNotePath: string | null = null): NotePathRecord[] {
         const isHoistedRoot = hoistedNoteId === "root";
 
         const notePaths: NotePathRecord[] = this.getAllNotePaths().map((path) => ({
@@ -428,7 +428,23 @@ export default class FNote {
             isHidden: path.includes("_hidden")
         }));
 
+        // Calculate the length of the prefix match between two arrays
+        const prefixMatchLength = (path: string[], target: string[]) => {
+            const diffIndex = path.findIndex((seg, i) => seg !== target[i]);
+            return diffIndex === -1 ? Math.min(path.length, target.length) : diffIndex;
+        };
+
         notePaths.sort((a, b) => {
+            if (activeNotePath) {
+                const activeSegments = activeNotePath.split('/');
+                const aOverlap = prefixMatchLength(a.notePath, activeSegments);
+                const bOverlap = prefixMatchLength(b.notePath, activeSegments);
+                // Paths with more matching prefix segments are prioritized
+                // when the match count is equal, other criteria are used for sorting
+                if (bOverlap !== aOverlap) {
+                    return bOverlap - aOverlap;
+                }
+            }
             if (a.isInHoistedSubTree !== b.isInHoistedSubTree) {
                 return a.isInHoistedSubTree ? -1 : 1;
             } else if (a.isArchived !== b.isArchived) {
@@ -449,10 +465,11 @@ export default class FNote {
      * Returns the note path considered to be the "best"
      *
      * @param {string} [hoistedNoteId='root']
+     * @param {string|null} [activeNotePath=null]
      * @return {string[]} array of noteIds constituting the particular note path
      */
-    getBestNotePath(hoistedNoteId = "root") {
-        return this.getSortedNotePathRecords(hoistedNoteId)[0]?.notePath;
+    getBestNotePath(hoistedNoteId = "root", activeNotePath: string | null = null) {
+        return this.getSortedNotePathRecords(hoistedNoteId, activeNotePath)[0]?.notePath;
     }
 
     /**
diff --git a/apps/client/src/services/tree.ts b/apps/client/src/services/tree.ts
index fc54c3c75..ec5bc0191 100644
--- a/apps/client/src/services/tree.ts
+++ b/apps/client/src/services/tree.ts
@@ -26,21 +26,12 @@ async function resolveNotePathToSegments(notePath: string, hoistedNoteId = "root
     }
 
     const path = notePath.split("/").reverse();
-
-    if (!path.includes("root")) {
-        path.push("root");
-    }
-
     const effectivePathSegments: string[] = [];
     let childNoteId: string | null = null;
     let i = 0;
 
-    while (true) {
-        if (i >= path.length) {
-            break;
-        }
-
-        const parentNoteId = path[i++];
+    for (let i = 0; i < path.length; i++) {
+        const parentNoteId = path[i];
 
         if (childNoteId !== null) {
             const child = await froca.getNote(childNoteId, !logErrors);
@@ -65,7 +56,7 @@ async function resolveNotePathToSegments(notePath: string, hoistedNoteId = "root
                 return null;
             }
 
-            if (!parents.some((p) => p.noteId === parentNoteId)) {
+            if (!parents.some(p => p.noteId === parentNoteId) || (i === path.length - 1 && parentNoteId !== 'root')) {
                 if (logErrors) {
                     const parent = froca.getNoteFromCache(parentNoteId);
 
@@ -77,7 +68,8 @@ async function resolveNotePathToSegments(notePath: string, hoistedNoteId = "root
                     );
                 }
 
-                const bestNotePath = child.getBestNotePath(hoistedNoteId);
+                const activeNotePath = appContext.tabManager.getActiveContextNotePath();
+                const bestNotePath = child.getBestNotePath(hoistedNoteId, activeNotePath);
 
                 if (bestNotePath) {
                     const pathToRoot = bestNotePath.reverse().slice(1);
@@ -108,7 +100,9 @@ async function resolveNotePathToSegments(notePath: string, hoistedNoteId = "root
         if (!note) {
             throw new Error(`Unable to find note: ${notePath}.`);
         }
-        const bestNotePath = note.getBestNotePath(hoistedNoteId);
+
+        const activeNotePath = appContext.tabManager.getActiveContextNotePath();
+        const bestNotePath = note.getBestNotePath(hoistedNoteId, activeNotePath);
 
         if (!bestNotePath) {
             throw new Error(`Did not find any path segments for '${note.toString()}', hoisted note '${hoistedNoteId}'`);