diff --git a/src/core/host_settings.h b/src/core/host_settings.h
index b35c9c385..13f845407 100644
--- a/src/core/host_settings.h
+++ b/src/core/host_settings.h
@@ -66,8 +66,5 @@ void SetGameSettingsLayer(SettingsInterface* sif);
 
 /// Sets the input profile settings layer. Called by VMManager when the game changes.
 void SetInputSettingsLayer(SettingsInterface* sif);
-
-/// Updates the variables in the EmuFolders namespace, reloading subsystems if needed. Must call with the lock held.
-void UpdateEmuFolders();
 } // namespace Internal
 } // namespace Host
\ No newline at end of file
diff --git a/src/core/settings.cpp b/src/core/settings.cpp
index 723667b91..1ae6af320 100644
--- a/src/core/settings.cpp
+++ b/src/core/settings.cpp
@@ -9,6 +9,8 @@
 #include "controller.h"
 #include "host.h"
 #include "host_display.h"
+#include "host_settings.h"
+#include "system.h"
 #include <algorithm>
 #include <array>
 #include <cctype>
@@ -1230,6 +1232,26 @@ void EmuFolders::Save(SettingsInterface& si)
   si.SetStringValue("Folders", "Textures", Path::MakeRelative(Textures, DataRoot).c_str());
 }
 
+void EmuFolders::Update()
+{
+  const std::string old_gamesettings(EmuFolders::GameSettings);
+  const std::string old_inputprofiles(EmuFolders::InputProfiles);
+  const std::string old_memorycards(EmuFolders::MemoryCards);
+
+  // have to manually grab the lock here, because of the ReloadGameSettings() below.
+  {
+    auto lock = Host::GetSettingsLock();
+    LoadConfig(*Host::Internal::GetBaseSettingsLayer());
+    EnsureFoldersExist();
+  }
+
+  if (old_gamesettings != EmuFolders::GameSettings || old_inputprofiles != EmuFolders::InputProfiles)
+    System::ReloadGameSettings(false);
+
+  if (System::IsValid() && old_memorycards != EmuFolders::MemoryCards)
+    System::UpdateMemoryCardTypes();
+}
+
 bool EmuFolders::EnsureFoldersExist()
 {
   bool result = FileSystem::EnsureDirectoryExists(Bios.c_str(), false);
diff --git a/src/core/settings.h b/src/core/settings.h
index 244a07d05..d6b11ec84 100644
--- a/src/core/settings.h
+++ b/src/core/settings.h
@@ -445,4 +445,7 @@ void SetDefaults();
 bool EnsureFoldersExist();
 void LoadConfig(SettingsInterface& si);
 void Save(SettingsInterface& si);
+
+/// Updates the variables in the EmuFolders namespace, reloading subsystems if needed.
+void Update();
 } // namespace EmuFolders
diff --git a/src/duckstation-qt/foldersettingswidget.cpp b/src/duckstation-qt/foldersettingswidget.cpp
index 2d6dab880..1ec285453 100644
--- a/src/duckstation-qt/foldersettingswidget.cpp
+++ b/src/duckstation-qt/foldersettingswidget.cpp
@@ -12,13 +12,15 @@ FolderSettingsWidget::FolderSettingsWidget(SettingsDialog* dialog, QWidget* pare
   m_ui.setupUi(this);
 
   SettingWidgetBinder::BindWidgetToFolderSetting(sif, m_ui.cache, m_ui.cacheBrowse, m_ui.cacheOpen, m_ui.cacheReset,
-                                                 "Folders", "Cache", "cache");
+                                                 "Folders", "Cache", Path::Combine(EmuFolders::DataRoot, "cache"));
   SettingWidgetBinder::BindWidgetToFolderSetting(sif, m_ui.covers, m_ui.coversBrowse, m_ui.coversOpen, m_ui.coversReset,
-                                                 "Folders", "Covers", "covers");
+                                                 "Folders", "Covers", Path::Combine(EmuFolders::DataRoot, "covers"));
   SettingWidgetBinder::BindWidgetToFolderSetting(sif, m_ui.screenshots, m_ui.screenshotsBrowse, m_ui.screenshotsOpen,
-                                                 m_ui.screenshotsReset, "Folders", "Screenshots", "screenshots");
+                                                 m_ui.screenshotsReset, "Folders", "Screenshots",
+                                                 Path::Combine(EmuFolders::DataRoot, "screenshots"));
   SettingWidgetBinder::BindWidgetToFolderSetting(sif, m_ui.saveStates, m_ui.saveStatesBrowse, m_ui.saveStatesOpen,
-                                                 m_ui.saveStatesReset, "Folders", "SaveStates", "savestates");
+                                                 m_ui.saveStatesReset, "Folders", "SaveStates",
+                                                 Path::Combine(EmuFolders::DataRoot, "savestates"));
 }
 
 FolderSettingsWidget::~FolderSettingsWidget() = default;
diff --git a/src/duckstation-qt/qthost.cpp b/src/duckstation-qt/qthost.cpp
index 208dd8182..294e9e52e 100644
--- a/src/duckstation-qt/qthost.cpp
+++ b/src/duckstation-qt/qthost.cpp
@@ -529,6 +529,17 @@ void EmuThread::reloadGameSettings(bool display_osd_messages /* = false */)
   System::ReloadGameSettings(display_osd_messages);
 }
 
+void EmuThread::updateEmuFolders()
+{
+  if (!isOnThread())
+  {
+    QMetaObject::invokeMethod(this, &EmuThread::updateEmuFolders, Qt::QueuedConnection);
+    return;
+  }
+
+  EmuFolders::Update();
+}
+
 void EmuThread::startFullscreenUI()
 {
   if (!isOnThread())
diff --git a/src/duckstation-qt/qthost.h b/src/duckstation-qt/qthost.h
index 2913afece..772012ed2 100644
--- a/src/duckstation-qt/qthost.h
+++ b/src/duckstation-qt/qthost.h
@@ -145,6 +145,7 @@ public Q_SLOTS:
   void setDefaultSettings(bool system = true, bool controller = true);
   void applySettings(bool display_osd_messages = false);
   void reloadGameSettings(bool display_osd_messages = false);
+  void updateEmuFolders();
   void reloadInputSources();
   void reloadInputBindings();
   void enumerateInputDevices();
diff --git a/src/duckstation-qt/settingwidgetbinder.h b/src/duckstation-qt/settingwidgetbinder.h
index 23ffde718..5babc2481 100644
--- a/src/duckstation-qt/settingwidgetbinder.h
+++ b/src/duckstation-qt/settingwidgetbinder.h
@@ -880,10 +880,7 @@ static void BindWidgetToFolderSetting(SettingsInterface* sif, WidgetType* widget
       Host::DeleteBaseSettingValue(section.c_str(), key.c_str());
     }
 
-    Panic("Fixme");
-#if 0
     g_emu_thread->updateEmuFolders();
-#endif
   });
 
   if (browse_button)
@@ -910,7 +907,7 @@ static void BindWidgetToFolderSetting(SettingsInterface* sif, WidgetType* widget
   {
     QObject::connect(
       reset_button, &QAbstractButton::clicked, reset_button, [widget, default_value = std::move(default_value)]() {
-        Accessor::setStringValue(widget, QString::fromStdString(Path::Combine(EmuFolders::AppRoot, default_value)));
+        Accessor::setStringValue(widget, QString::fromStdString(default_value));
       });
   }
 }
diff --git a/src/frontend-common/fullscreen_ui.cpp b/src/frontend-common/fullscreen_ui.cpp
index 66fdb9921..03268c603 100644
--- a/src/frontend-common/fullscreen_ui.cpp
+++ b/src/frontend-common/fullscreen_ui.cpp
@@ -1644,7 +1644,7 @@ void FullscreenUI::DrawFolderSetting(const char* title, const char* section, con
       GetEditingSettingsInterface()->SetStringValue(section.c_str(), key.c_str(), relative_path.c_str());
       SetSettingsChanged();
 
-      Host::RunOnCPUThread(&Host::Internal::UpdateEmuFolders);
+      Host::RunOnCPUThread(EmuFolders::Update);
 
       CloseFileSelector();
     });
diff --git a/src/frontend-common/host_settings.cpp b/src/frontend-common/host_settings.cpp
index a4d01a8e5..4e3c967a3 100644
--- a/src/frontend-common/host_settings.cpp
+++ b/src/frontend-common/host_settings.cpp
@@ -138,7 +138,3 @@ void Host::Internal::SetInputSettingsLayer(SettingsInterface* sif)
 	std::unique_lock lock(s_settings_mutex);
 	s_layered_settings_interface.SetLayer(LayeredSettingsInterface::LAYER_INPUT, sif);
 }
-
-void Host::Internal::UpdateEmuFolders()
-{
-}