diff --git a/eng/tools/typespec-validation/src/rules/folder-structure.ts b/eng/tools/typespec-validation/src/rules/folder-structure.ts
index f6feb3327407..9e010e12d664 100644
--- a/eng/tools/typespec-validation/src/rules/folder-structure.ts
+++ b/eng/tools/typespec-validation/src/rules/folder-structure.ts
@@ -1,4 +1,5 @@
 import path from "path";
+import { parse as yamlParse } from "yaml";
 import { Rule } from "../rule.js";
 import { RuleResult } from "../rule-result.js";
 import { TsvHost } from "../tsv-host.js";
@@ -10,8 +11,8 @@ export class FolderStructureRule implements Rule {
     let success = true;
     let stdOutput = "";
     let errorOutput = "";
-    let gitRoot = host.normalizePath(await host.gitOperation(folder).revparse("--show-toplevel"));
-    let relativePath = path.relative(gitRoot, folder).split(path.sep).join("/");
+    const gitRoot = host.normalizePath(await host.gitOperation(folder).revparse("--show-toplevel"));
+    const relativePath = path.relative(gitRoot, folder).split(path.sep).join("/");
 
     stdOutput += `folder: ${folder}\n`;
     if (!(await host.checkFileExists(folder))) {
@@ -32,13 +33,13 @@ export class FolderStructureRule implements Rule {
     });
 
     // Verify top level folder is lower case and remove empty entries when splitting by slash
-    let folderStruct = relativePath.split("/").filter(Boolean);
+    const folderStruct = relativePath.split("/").filter(Boolean);
     if (folderStruct[1].match(/[A-Z]/g)) {
       success = false;
       errorOutput += `Invalid folder name. Folders under specification/ must be lower case.\n`;
     }
 
-    let packageFolder = folderStruct[folderStruct.length - 1];
+    const packageFolder = folderStruct[folderStruct.length - 1];
 
     // Verify package folder is at most 3 levels deep
     if (folderStruct.length > 4) {
@@ -61,8 +62,9 @@ export class FolderStructureRule implements Rule {
     }
 
     // Verify tspconfig, main.tsp, examples/
-    let mainExists = await host.checkFileExists(path.join(folder, "main.tsp"));
-    let clientExists = await host.checkFileExists(path.join(folder, "client.tsp"));
+    const mainExists = await host.checkFileExists(path.join(folder, "main.tsp"));
+    const clientExists = await host.checkFileExists(path.join(folder, "client.tsp"));
+    const tspConfigExists = await host.checkFileExists(path.join(folder, "tspconfig.yaml"));
 
     if (!mainExists && !clientExists) {
       errorOutput += `Invalid folder structure: Spec folder must contain main.tsp or client.tsp.`;
@@ -74,14 +76,33 @@ export class FolderStructureRule implements Rule {
       success = false;
     }
 
-    if (
-      !packageFolder.includes("Shared") &&
-      !(await host.checkFileExists(path.join(folder, "tspconfig.yaml")))
-    ) {
+    if (!packageFolder.includes("Shared") && !tspConfigExists) {
       errorOutput += `Invalid folder structure: Spec folder must contain tspconfig.yaml.`;
       success = false;
     }
 
+    if (tspConfigExists) {
+      const configText = await host.readTspConfig(folder);
+      const config = yamlParse(configText);
+      const rpFolder =
+        config?.options?.["@azure-tools/typespec-autorest"]?.["azure-resource-provider-folder"];
+      stdOutput += `azure-resource-provider-folder: ${JSON.stringify(rpFolder)}\n`;
+
+      if (
+        rpFolder?.trim()?.endsWith("resource-manager") &&
+        !packageFolder.endsWith(".Management")
+      ) {
+        errorOutput += `Invalid folder structure: TypeSpec for resource-manager specs must be in a folder ending with '.Management'`;
+        success = false;
+      } else if (
+        !rpFolder?.trim()?.endsWith("resource-manager") &&
+        packageFolder.endsWith(".Management")
+      ) {
+        errorOutput += `Invalid folder structure: TypeSpec for data-plane specs or shared code must be in a folder NOT ending with '.Management'`;
+        success = false;
+      }
+    }
+
     return {
       success: success,
       stdOutput: stdOutput,
diff --git a/eng/tools/typespec-validation/test/folder-structure.test.ts b/eng/tools/typespec-validation/test/folder-structure.test.ts
index e1879ead200e..300788ad5f75 100644
--- a/eng/tools/typespec-validation/test/folder-structure.test.ts
+++ b/eng/tools/typespec-validation/test/folder-structure.test.ts
@@ -205,4 +205,94 @@ describe("folder-structure", function () {
     assert(result.errorOutput);
     assert(result.errorOutput.includes("must contain"));
   });
+
+  it("should succeed with resource-manager/Management", async function() {
+    let host = new TsvTestHost();
+    host.globby = async () => {
+      return ["/foo/Foo.Management/tspconfig.yaml"];
+    };
+    host.normalizePath = () => {
+      return "/gitroot";
+    };
+    host.readTspConfig = async (_folder: string) => `
+options:
+  "@azure-tools/typespec-autorest":
+    azure-resource-provider-folder: "resource-manager"
+`;
+
+    const result = await new FolderStructureRule().execute(
+      host,
+      "/gitroot/specification/foo/Foo.Management",
+    );
+
+    assert(result.success);
+  });
+
+  it("should succeed with data-plane/NoManagement", async function() {
+    let host = new TsvTestHost();
+    host.globby = async () => {
+      return ["/foo/Foo/tspconfig.yaml"];
+    };
+    host.normalizePath = () => {
+      return "/gitroot";
+    };
+    host.readTspConfig = async (_folder: string) => `
+options:
+  "@azure-tools/typespec-autorest":
+    azure-resource-provider-folder: "data-plane"
+`;
+
+    const result = await new FolderStructureRule().execute(
+      host,
+      "/gitroot/specification/foo/Foo",
+    );
+
+    assert(result.success);
+  });
+
+  it("should fail with resource-manager/NoManagement", async function() {
+    let host = new TsvTestHost();
+    host.globby = async () => {
+      return ["/foo/Foo/tspconfig.yaml"];
+    };
+    host.normalizePath = () => {
+      return "/gitroot";
+    };
+    host.readTspConfig = async (_folder: string) => `
+options:
+  "@azure-tools/typespec-autorest":
+    azure-resource-provider-folder: "resource-manager"
+`;
+
+    const result = await new FolderStructureRule().execute(
+      host,
+      "/gitroot/specification/foo/Foo",
+    );
+
+    assert(result.errorOutput);
+    assert(result.errorOutput.includes(".Management"));
+  });
+
+  it("should fail with data-plane/Management", async function() {
+    let host = new TsvTestHost();
+    host.globby = async () => {
+      return ["/foo/Foo.Management/tspconfig.yaml"];
+    };
+    host.normalizePath = () => {
+      return "/gitroot";
+    };
+    host.readTspConfig = async (_folder: string) => `
+options:
+  "@azure-tools/typespec-autorest":
+    azure-resource-provider-folder: "data-plane"
+`;
+
+    const result = await new FolderStructureRule().execute(
+      host,
+      "/gitroot/specification/foo/Foo.Management",
+    );
+
+    assert(result.errorOutput);
+    assert(result.errorOutput.includes(".Management"));
+  });
 });