diff --git a/cmd/config_validation_test.go b/cmd/config_validation_test.go
index ff38625ca9..cbf4f721ea 100644
--- a/cmd/config_validation_test.go
+++ b/cmd/config_validation_test.go
@@ -496,3 +496,37 @@ func TestValidateConfigFile_FileSystemConfigSuccessful(t *testing.T) {
 		})
 	}
 }
+
+func TestValidateConfigFile_ListConfigSuccessful(t *testing.T) {
+	testCases := []struct {
+		name           string
+		configFile     string
+		expectedConfig *cfg.Config
+	}{
+		{
+			// Test default values.
+			name:       "empty_config_file",
+			configFile: "testdata/empty_file.yaml",
+			expectedConfig: &cfg.Config{
+				List: cfg.ListConfig{EnableEmptyManagedFolders: false},
+			},
+		},
+		{
+			name:       "valid_config_file",
+			configFile: "testdata/valid_config.yaml",
+			expectedConfig: &cfg.Config{
+				List: cfg.ListConfig{EnableEmptyManagedFolders: true},
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			gotConfig, err := getConfigObjectWithConfigFile(t, tc.configFile)
+
+			if assert.NoError(t, err) {
+				assert.EqualValues(t, tc.expectedConfig.List, gotConfig.List)
+			}
+		})
+	}
+}
diff --git a/cmd/root_test.go b/cmd/root_test.go
index 49d14aabcc..e6b1f50fe3 100644
--- a/cmd/root_test.go
+++ b/cmd/root_test.go
@@ -645,6 +645,7 @@ func TestArgsParsing_FileSystemFlags(t *testing.T) {
 		})
 	}
 }
+
 func TestArgsParsing_FileSystemFlagsThrowsError(t *testing.T) {
 	tests := []struct {
 		name string
@@ -684,3 +685,44 @@ func TestArgsParsing_FileSystemFlagsThrowsError(t *testing.T) {
 		})
 	}
 }
+
+func TestArgsParsing_ListFlags(t *testing.T) {
+	tests := []struct {
+		name           string
+		args           []string
+		expectedConfig *cfg.Config
+	}{
+		{
+			name: "normal",
+			args: []string{"gcsfuse", "--enable-empty-managed-folders", "abc", "pqr"},
+			expectedConfig: &cfg.Config{
+				List: cfg.ListConfig{EnableEmptyManagedFolders: true},
+			},
+		},
+		{
+			name: "default",
+			args: []string{"gcsfuse", "abc", "pqr"},
+			expectedConfig: &cfg.Config{
+				List: cfg.ListConfig{EnableEmptyManagedFolders: false},
+			},
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			var gotConfig *cfg.Config
+			cmd, err := NewRootCmd(func(cfg *cfg.Config, _, _ string) error {
+				gotConfig = cfg
+				return nil
+			})
+			require.Nil(t, err)
+			cmd.SetArgs(tc.args)
+
+			err = cmd.Execute()
+
+			if assert.NoError(t, err) {
+				assert.Equal(t, tc.expectedConfig.List, gotConfig.List)
+			}
+		})
+	}
+}
diff --git a/cmd/testdata/valid_config.yaml b/cmd/testdata/valid_config.yaml
index a3e5893fc4..cd5ca004da 100644
--- a/cmd/testdata/valid_config.yaml
+++ b/cmd/testdata/valid_config.yaml
@@ -38,3 +38,5 @@ file-system:
   kernel-list-cache-ttl-secs: 300
   rename-dir-limit: 10
   temp-dir: ~/temp
+list:
+  enable-empty-managed-folders: true
diff --git a/internal/fs/fs.go b/internal/fs/fs.go
index aa09de77f2..c960aa2e49 100644
--- a/internal/fs/fs.go
+++ b/internal/fs/fs.go
@@ -268,7 +268,7 @@ func makeRootForBucket(
 			Mtime: fs.mtimeClock.Now(),
 		},
 		fs.implicitDirs,
-		fs.mountConfig.ListConfig.EnableEmptyManagedFolders,
+		fs.newConfig.List.EnableEmptyManagedFolders,
 		fs.enableNonexistentTypeCache,
 		fs.dirTypeCacheTTL,
 		&syncerBucket,
@@ -724,7 +724,7 @@ func (fs *fileSystem) createExplicitDirInode(inodeID fuseops.InodeID, ic inode.C
 			Mtime: fs.mtimeClock.Now(),
 		},
 		fs.implicitDirs,
-		fs.mountConfig.ListConfig.EnableEmptyManagedFolders,
+		fs.newConfig.List.EnableEmptyManagedFolders,
 		fs.enableNonexistentTypeCache,
 		fs.dirTypeCacheTTL,
 		ic.Bucket,
@@ -767,7 +767,7 @@ func (fs *fileSystem) mintInode(ic inode.Core) (in inode.Inode) {
 				Mtime: fs.mtimeClock.Now(),
 			},
 			fs.implicitDirs,
-			fs.mountConfig.ListConfig.EnableEmptyManagedFolders,
+			fs.newConfig.List.EnableEmptyManagedFolders,
 			fs.enableNonexistentTypeCache,
 			fs.dirTypeCacheTTL,
 			ic.Bucket,