diff --git a/plugins/by-name/nvim-ufo/default.nix b/plugins/by-name/nvim-ufo/default.nix
index 2edda413..8e840373 100644
--- a/plugins/by-name/nvim-ufo/default.nix
+++ b/plugins/by-name/nvim-ufo/default.nix
@@ -130,4 +130,20 @@ lib.nixvim.plugins.mkNeovimPlugin {
         end
       '';
   };
+
+  extraOptions = {
+    setupLspCapabilities = lib.nixvim.options.mkEnabledOption "setup LSP capabilities for nvim-ufo";
+  };
+
+  extraConfig = cfg: {
+    plugins.lsp.capabilities =
+      lib.mkIf cfg.setupLspCapabilities # lua
+        ''
+          -- Capabilities configuration for nvim-ufo
+          capabilities.textDocument.foldingRange = {
+            dynamicRegistration = false,
+            lineFoldingOnly = true
+          }
+        '';
+  };
 }
diff --git a/tests/test-sources/plugins/by-name/nvim-ufo/default.nix b/tests/test-sources/plugins/by-name/nvim-ufo/default.nix
index 7ba0f94a..87db4214 100644
--- a/tests/test-sources/plugins/by-name/nvim-ufo/default.nix
+++ b/tests/test-sources/plugins/by-name/nvim-ufo/default.nix
@@ -90,4 +90,12 @@
       };
     };
   };
+
+  lsp-compat = {
+    plugins.nvim-ufo = {
+      enable = true;
+      setupLspCapabilities = true;
+    };
+    plugins.lsp.enable = true;
+  };
 }