It was the Waratahs' highest total against an Australian Super Rugby outfit, the most points scored in any Australian derby and the Reds' highest losing total.
Saturday night's Suncorp Stadium win propelled the Waratahs back to the top of the Australian conference, after the Rebels had briefly assumed top spot with their upset of the Blues earlier in the day in New Zealand.
Wallabies coach Michael Cheika was in the stands as 15 Australian squad members pushed their case for a berth next Saturday against Ireland.
Teams traded tries in the first half but the Waratahs shot away early in the second stanza, Folau pouncing on a risky Reds chip and chase for a 40-19 lead with 30 minutes to play.
Tries to Alex Mafi and Wallabies hopeful Caleb Timu, who provided immediate impact off the bench for the Reds, provided hope for the 14,452-strong crowd.
But Hamish Stewart's wayward kicking (two from seven) didn't help and Jake Gordon's 63rd-minute try iced the Waratahs' win.
Earlier Folau had flown above the pack for a trademark try from a cross-field bomb to complete a manic seven-try first half.
"We knew we had an advantage with Israel and his aerial ability," NSW coach Daryl Gibson, who described the high-scoring game as bewildering, said.
"It's become a real weapon for us."
The action started with a Scott Higginbotham intercept, the No 8 denying NSW a likely try and creating one for his side when he popped a pass to winger Izaia Perese.
Reds big men Higginbotham and Taniela Tupou powered over from close range, while Waratahs winger Taqele Naiyaravoro skipped out of three tackles for a five-pointer of his own.
Queensland's scrum was again dominant and Wallaby Samu Kerevi did his best to set the tone defensively, coming out of the line to put two big hits on his opposite number.
But they were unable to stop the visitors' steady flow of points, Foley kicking truly (six from seven) and threatening every time he directed play to the Reds' right flank.
Promoted to the starting side, Reds halfback Moses Sorovi was enterprising and unlucky not to cling onto an offload as the Reds eyed a first-half lead.
Instead Folau's flying effort gave NSW a 28-19 edge they managed to maintain.
Reds coach Brad Thorn spoke positively of the side's young halves pairing in Sorovi and Stewart but conceded soft tries and Folau's brilliance was the difference.
"Sometimes you've got to tip your cap and say 'you are very good'," Thorn said.