diff --git a/app/src/api.js b/app/src/api.js
index 5665836f..261e7d59 100644
--- a/app/src/api.js
+++ b/app/src/api.js
@@ -331,6 +331,7 @@ export async function getSettings() {
             map_destination: content.map_destination,
             nav_color: content.nav_color,
             media_directory: content.media_directory,
+            playlists_destination: content.playlists_destination,
             require_cookies_unlocked: content.require_cookies_unlocked,
             require_media_mounted: content.require_media_mounted,
             save_ffprobe_json: content.save_ffprobe_json,
@@ -2286,9 +2287,10 @@ export async function getPlaylist(playlistId) {
     throw Error(message);
 }
 
-export async function createPlaylist(name, description) {
+export async function createPlaylist(name, description, tagName) {
     // Trailing slash avoids Sanic's 302 redirect on the root POST route (which would drop the body).
-    const response = await apiPost(`${COLLECTIONS_API}/`, {name, description, kind: 'playlist'});
+    const response = await apiPost(`${COLLECTIONS_API}/`,
+        {name, description, tag_name: tagName || null, kind: 'playlist'});
     if (response.ok) {
         return (await response.json())['collection'];
     }
diff --git a/app/src/components/Playlists.js b/app/src/components/Playlists.js
index dbb98022..096ff180 100644
--- a/app/src/components/Playlists.js
+++ b/app/src/components/Playlists.js
@@ -36,6 +36,7 @@ import {
     updatePlaylist,
 } from "../api";
 import {ThemeContext} from "../contexts/contexts";
+import {TagsSelector} from "../Tags";
 
 
 const PLAYLIST_COLUMNS = [
@@ -95,6 +96,7 @@ export function PlaylistsPage() {
     const [searchStr, setSearchStr] = useOneQuery('name');
     const [modalOpen, setModalOpen] = useState(false);
     const [name, setName] = useState('');
+    const [tagName, setTagName] = useState(null);
     const searchInputRef = React.useRef();
     const navigate = useNavigate();
 
@@ -102,9 +104,10 @@ export function PlaylistsPage() {
         const trimmed = name.trim();
         if (!trimmed) return;
         try {
-            const playlist = await createPlaylist(trimmed);
+            const playlist = await createPlaylist(trimmed, undefined, tagName);
             toast({type: 'success', title: 'Playlist created', description: trimmed, time: 3000});
             setName('');
+            setTagName(null);
             setModalOpen(false);
             if (playlist && playlist.id) {
                 navigate(`/playlists/${playlist.id}`);
@@ -147,6 +150,19 @@ export function PlaylistsPage() {
                     <Input autoFocus placeholder='Playlist name...' value={name}
                            onChange={(e, {value}) => setName(value)}/>
                 </Form.Field>
+                <Form.Field>
+                    <label>
+                        Tag
+                        <InfoPopup content='Optional. A tagged playlist lives under its tag in the
+                            Playlists Directory.'/>
+                    </label>
+                    <TagsSelector
+                        limit={1}
+                        selectedTagNames={tagName ? [tagName] : []}
+                        onAdd={setTagName}
+                        onRemove={() => setTagName(null)}
+                    />
+                </Form.Field>
             </Form>
         </Modal.Content>
         <Modal.Actions>
@@ -504,8 +520,9 @@ export function PlaylistEditPage() {
                     <Form.Field>
                         <label>
                             Directory
-                            <InfoPopup content='Optional custom directory. When empty, the playlist
-                                lives in the Playlists Directory (under its tag, if tagged).'/>
+                            <InfoPopup content='Where the playlist lives on disk. By default it is
+                                managed automatically in the Playlists Directory (under its tag, if
+                                tagged); choose a different directory to manage it manually.'/>
                         </label>
                         <DirectorySearch
                             value={directory}
diff --git a/wrolpi/collections/api.py b/wrolpi/collections/api.py
index 84666b55..ed9d7073 100644
--- a/wrolpi/collections/api.py
+++ b/wrolpi/collections/api.py
@@ -68,7 +68,8 @@ async def create_collection_endpoint(request: Request, body: schema.CollectionCr
     session = request.ctx.session
     try:
         collection = lib.create_collection(
-            session, name=body.name, description=body.description, kind=body.kind or 'playlist')
+            session, name=body.name, description=body.description, kind=body.kind or 'playlist',
+            tag_name=body.tag_name)
     except ValidationError as e:
         return json_response({'error': str(e)}, status=HTTPStatus.BAD_REQUEST)
 
diff --git a/wrolpi/collections/lib.py b/wrolpi/collections/lib.py
index 596dde1f..50fcd5c6 100644
--- a/wrolpi/collections/lib.py
+++ b/wrolpi/collections/lib.py
@@ -276,6 +276,14 @@ def update_collection(
     """
     collection = Collection.find_by_id(session, collection_id)
 
+    # The managed location before any rename/retag.  The API reports this location for a playlist
+    # whose stored directory is None, so the UI round-trips it back; recognize it below and keep
+    # storing None (auto-managed) instead of freezing the playlist at the pre-rename path.
+    old_default = None
+    if collection.kind == 'playlist':
+        from .sync import get_playlists_directory, _default_playlist_subdir
+        old_default = _default_playlist_subdir(get_playlists_directory(), collection)
+
     # Rename if provided.
     if name is not None:
         name = name.strip()
@@ -333,8 +341,10 @@ def update_collection(
                            _default_playlist_subdir, sync_playlists_directory)
         # A directory equal to the managed tag location is not "custom" -- store None so the sync
         # keeps auto-managing it (future tag changes keep moving the playlist automatically).
-        if collection.directory and \
-                pathlib.Path(collection.directory) == _default_playlist_subdir(get_playlists_directory(), collection):
+        # The location is compared both before (`old_default`) and after this update, so a managed
+        # playlist stays managed when the UI round-trips the displayed directory with a rename.
+        new_default = _default_playlist_subdir(get_playlists_directory(), collection)
+        if collection.directory and pathlib.Path(collection.directory) in (new_default, old_default):
             collection.directory = None
             session.flush()
         # Commit before the cleanup and switch activations so the background sync reads the NEW
@@ -354,8 +364,8 @@ def update_collection(
 
 
 def create_collection(session: Session, name: str, description: Optional[str] = None,
-                      kind: str = 'playlist') -> Collection:
-    """Create a new Collection (defaults to a 'playlist').
+                      kind: str = 'playlist', tag_name: Optional[str] = None) -> Collection:
+    """Create a new Collection (defaults to a 'playlist'), optionally with an initial tag.
 
     Raises:
         ValidationError: if the name is empty/invalid for the kind, or a duplicate exists.
@@ -368,12 +378,21 @@ def create_collection(session: Session, name: str, description: Optional[str] =
     if not collection_type_registry.validate(kind, name):
         description_msg = collection_type_registry.get_description(kind) or 'Invalid name format'
         raise ValidationError(f'Invalid {kind} name {name!r}. {description_msg}')
+    # Same rule as update_collection: only playlists can be tagged without a directory, and a new
+    # collection never has one yet.
+    if tag_name and kind != 'playlist':
+        raise ValidationError(f'A new {kind} cannot be created with a tag.  Set a directory first.')
 
     existing = session.query(Collection).filter_by(name=name, kind=kind).first()
     if existing:
         raise ValidationError(f'A {kind} named {name!r} already exists')
 
     collection = Collection(name=name, description=description, kind=kind)
+    if tag_name:
+        tag = Tag.get_or_create_tag(session, name=tag_name)
+        # Assign the relationship too so `collection.tag_name` is fresh for serialization.
+        collection.tag = tag
+        collection.tag_id = tag.id
     session.add(collection)
     session.flush([collection])
 
diff --git a/wrolpi/collections/models.py b/wrolpi/collections/models.py
index 848fbf74..cca3d7e8 100644
--- a/wrolpi/collections/models.py
+++ b/wrolpi/collections/models.py
@@ -956,6 +956,13 @@ class Collection(ModelHelper, Base):
             except ValueError:
                 # Directory is not relative to media directory, return as-is
                 directory_str = str(self.directory)
+        elif self.kind == 'playlist':
+            # A playlist without an explicit directory lives at the managed location
+            # (<playlists>/<tag>/<name>).  Report that location so the directory is known even
+            # before the sync creates it; the DB keeps None so the sync auto-manages it.
+            from wrolpi.collections.sync import get_playlists_directory, _default_playlist_subdir
+            directory_str = str(get_relative_to_media_directory(
+                _default_playlist_subdir(get_playlists_directory(), self)))
 
         return {
             'id': self.id,
diff --git a/wrolpi/collections/schema.py b/wrolpi/collections/schema.py
index 8e28c650..55fa35d3 100644
--- a/wrolpi/collections/schema.py
+++ b/wrolpi/collections/schema.py
@@ -13,6 +13,7 @@ class CollectionCreateRequest:
     name: str
     description: Optional[str] = None
     kind: str = 'playlist'
+    tag_name: Optional[str] = None
 
 
 @dataclass
diff --git a/wrolpi/collections/test/test_playlist_items.py b/wrolpi/collections/test/test_playlist_items.py
index b1344283..8a1bf0b7 100644
--- a/wrolpi/collections/test/test_playlist_items.py
+++ b/wrolpi/collections/test/test_playlist_items.py
@@ -20,6 +20,71 @@ async def test_create_playlist(async_client, test_session):
     assert test_session.query(Collection).filter_by(name='Fire Making', kind='playlist').one()
 
 
+@pytest.mark.asyncio
+async def test_new_playlist_reports_managed_directory(async_client, test_session):
+    """A new playlist's directory is reported immediately (the managed location), even though the
+    sync has not yet created it on disk and the DB stores None (auto-managed)."""
+    _, response = await async_client.post('/api/collections', json={'name': 'Fire Making'})
+    assert response.status_code == HTTPStatus.CREATED, response.json
+    assert response.json['collection']['directory'] == 'playlists/Fire Making'
+
+    # The DB keeps None so the sync auto-manages the location.
+    collection = test_session.query(Collection).filter_by(name='Fire Making').one()
+    assert collection.directory is None
+
+    # Tagging moves the reported managed location under the tag.
+    cid = response.json['collection']['id']
+    _, response = await async_client.put(f'/api/collections/{cid}', json={'tag_name': 'Survival'})
+    assert response.status_code == HTTPStatus.OK, response.json
+    assert response.json['collection']['directory'] == 'playlists/Survival/Fire Making'
+
+    # The playlist list reports the managed location too.
+    _, response = await async_client.get('/api/collections?kind=playlist')
+    assert response.json['collections'][0]['directory'] == 'playlists/Survival/Fire Making'
+
+
+@pytest.mark.asyncio
+async def test_rename_playlist_round_trips_managed_directory(async_client, test_session):
+    """Renaming while the UI round-trips the displayed (pre-rename) managed directory keeps the
+    playlist auto-managed at its new location, instead of pinning it to the old path."""
+    _, response = await async_client.post('/api/collections', json={'name': 'Old Name'})
+    cid = response.json['collection']['id']
+
+    # The edit form submits the directory it displayed (the old managed location) with the rename.
+    _, response = await async_client.put(f'/api/collections/{cid}', json={
+        'name': 'New Name', 'directory': 'playlists/Old Name'})
+    assert response.status_code == HTTPStatus.OK, response.json
+    assert response.json['collection']['name'] == 'New Name'
+    assert response.json['collection']['directory'] == 'playlists/New Name'
+
+    collection = test_session.query(Collection).filter_by(id=cid).one()
+    test_session.refresh(collection)
+    assert collection.directory is None, 'playlist must stay auto-managed'
+
+
+@pytest.mark.asyncio
+async def test_create_playlist_with_initial_tag(async_client, test_session):
+    """A playlist can be created with an initial tag; its managed directory is tag-namespaced."""
+    from wrolpi.tags import Tag
+
+    _, response = await async_client.post('/api/collections',
+                                          json={'name': 'Fire Making', 'tag_name': 'Survival'})
+    assert response.status_code == HTTPStatus.CREATED, response.json
+    assert response.json['collection']['tag_name'] == 'Survival'
+    assert response.json['collection']['directory'] == 'playlists/Survival/Fire Making'
+
+    # The tag was created, and the playlist remains auto-managed (no stored directory).
+    assert test_session.query(Tag).filter_by(name='Survival').one()
+    collection = test_session.query(Collection).filter_by(name='Fire Making').one()
+    assert collection.tag_name == 'Survival'
+    assert collection.directory is None
+
+    # Non-playlist kinds cannot be created with a tag (they need a directory first).
+    _, response = await async_client.post('/api/collections', json={
+        'name': 'example.com', 'kind': 'domain', 'tag_name': 'Survival'})
+    assert response.status_code == HTTPStatus.BAD_REQUEST
+
+
 @pytest.mark.asyncio
 async def test_create_playlist_rejects_blank_and_duplicate(async_client, test_session):
     _, response = await async_client.post('/api/collections', json={'name': '   '})