The Latin Grammy Award for Best Folk Album is an honor presented annually at the Latin Grammy Awards, a ceremony that recognizes excellence and creates a wider awareness of cultural diversity and contributions of Latin recording artists in the United States and internationally. The award goes to solo artists, duos, or groups for releasing vocal or instrumental albums containing at least 51% of new recordings.

The 1st Annual Latin Grammy Awards were held in Los Angeles at the Staples Center on Wednesday, September 13, 2000. The big winners were Luis Miguel, Santana and Maná with 3 awards; Juan Luis Guerra, Shakira, Fito Páez and Emilio Estefan Jr. received 2 awards each.