diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3de8e4fd..731337b4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -34,6 +34,12 @@ All notable changes to this project will be documented in this file.
   YOLOv10. Existing models remain available for inference, and YOLO dataset
   formats remain supported ([#572](https://github.com/roboflow/roboflow-python/pull/572)).
 
+### Fixed
+
+- Directory uploads with `upload_dataset` now include `.webp` images and their
+  labels. They used to be skipped without a message
+  ([#577](https://github.com/roboflow/roboflow-python/pull/577)).
+
 ## 1.7.3
 
 ### Added
diff --git a/roboflow/util/folderparser.py b/roboflow/util/folderparser.py
index 047cdaee..7e9981ad 100644
--- a/roboflow/util/folderparser.py
+++ b/roboflow/util/folderparser.py
@@ -7,7 +7,7 @@
 
 from .image_utils import load_labelmap
 
-IMAGE_EXTENSIONS = {".jpg", ".jpeg", ".png", ".bmp", ".tiff", ".tif", ".avif", ".heic"}
+IMAGE_EXTENSIONS = {".jpg", ".jpeg", ".png", ".bmp", ".tiff", ".tif", ".webp", ".avif", ".heic"}
 ANNOTATION_EXTENSIONS = {".txt", ".json", ".xml", ".csv", ".jsonl"}
 LABELMAPS_EXTENSIONS = {".labels", ".yaml", ".yml"}
 
diff --git a/tests/util/test_folderparser.py b/tests/util/test_folderparser.py
index 4f9ddb5b..61f2b65d 100644
--- a/tests/util/test_folderparser.py
+++ b/tests/util/test_folderparser.py
@@ -205,6 +205,16 @@ def test_coco_root_annotation_matches_images_in_subdirs(self):
             self.assertEqual(len(ann_data["annotations"]), 1, "Should have one annotation")
             self.assertEqual(ann_data["annotations"][0]["bbox"], [10, 20, 100, 200])
 
+    def test_lists_webp_images_with_their_labels(self):
+        with tempfile.TemporaryDirectory() as tmpdir:
+            os.makedirs(os.path.join(tmpdir, "train"))
+            for name in ("a.webp", "a.txt", "b.jpg", "b.txt"):
+                with open(os.path.join(tmpdir, "train", name), "w") as f:
+                    f.write("0 0.5 0.5 0.5 0.5\n")
+            parsed = folderparser.parsefolder(tmpdir)
+        labels = {image["file"]: image["annotationfile"]["file"] for image in parsed["images"]}
+        self.assertEqual(labels, {"/train/a.webp": "/train/a.txt", "/train/b.jpg": "/train/b.txt"})
+
 
 def _assertJsonMatchesFile(actual, filename):
     with open(filename) as file: