diff --git a/dashboards/resource_dashboard.go b/dashboards/resource_dashboard.go
index b9bdc5e15e..3cfcbb2ec1 100644
--- a/dashboards/resource_dashboard.go
+++ b/dashboards/resource_dashboard.go
@@ -2,6 +2,8 @@ package dashboards
 
 import (
 	"context"
+	"log"
+	"strings"
 
 	"github.com/databricks/databricks-sdk-go/service/dashboards"
 	"github.com/databricks/terraform-provider-databricks/common"
@@ -76,7 +78,17 @@ func ResourceDashboard() common.Resource {
 			newDashboardRequest.SerializedDashboard = content
 			createdDashboard, err := w.Lakeview.Create(ctx, newDashboardRequest)
 			if err != nil {
-				return err
+				if isParentDoesntExistError(err) {
+					log.Printf("[DEBUG] Parent folder '%s' doesn't exist, creating...", newDashboardRequest.ParentPath)
+					err = w.Workspace.MkdirsByPath(ctx, newDashboardRequest.ParentPath)
+					if err != nil {
+						return err
+					}
+					createdDashboard, err = w.Lakeview.Create(ctx, newDashboardRequest)
+				}
+				if err != nil {
+					return err
+				}
 			}
 
 			d.Set("etag", createdDashboard.Etag)
@@ -168,3 +180,8 @@ func ResourceDashboard() common.Resource {
 		},
 	}
 }
+
+func isParentDoesntExistError(err error) bool {
+	errStr := err.Error()
+	return strings.HasPrefix(errStr, "Path (") && strings.HasSuffix(errStr, ") doesn't exist.")
+}
diff --git a/docs/resources/dashboard.md b/docs/resources/dashboard.md
index b18ce755d3..e1215bd515 100644
--- a/docs/resources/dashboard.md
+++ b/docs/resources/dashboard.md
@@ -49,7 +49,7 @@ The following arguments are supported:
 * `serialized_dashboard` - (Optional) The contents of the dashboard in serialized string form. Conflicts with `file_path`.
 * `file_path` - (Optional) The path to the dashboard JSON file. Conflicts with `serialized_dashboard`.
 * `embed_credentials` - (Optional) Whether to embed credentials in the dashboard. Default is `true`.
-* `parent_path` - (Required) The workspace path of the folder containing the dashboard. Includes leading slash and no trailing slash.
+* `parent_path` - (Required) The workspace path of the folder containing the dashboard. Includes leading slash and no trailing slash.  If folder doesn't exist, it will be created.
 
 ## Attribute Reference