diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index b3e70d703..e947e1cdc 100644
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -780,7 +780,7 @@ Found in Advanced->Rendering->Info Displays</string>
       <key>Type</key>
       <string>Boolean</string>
       <key>Value</key>
-      <integer>0</integer>
+      <integer>1</integer>
     </map>
     <key>MarketImporterUpdateFreq</key>
     <map>
diff --git a/indra/newview/llpanelavatar.cpp b/indra/newview/llpanelavatar.cpp
index 904a809c9..ef3bb65f4 100644
--- a/indra/newview/llpanelavatar.cpp
+++ b/indra/newview/llpanelavatar.cpp
@@ -385,7 +385,7 @@ void LLPanelAvatarFirstLife::onClickImage(void* data)
 			S32 left, top;
 			gFloaterView->getNewFloaterPosition(&left, &top);
 			LLRect rect = gSavedSettings.getRect("PreviewTextureRect");
-			rect.translate( left - rect.mLeft, top - rect.mTop );
+			rect.translate( left - rect.mLeft, rect.mTop - top ); // Changed to avoid textures being sunken below the window border.
 			LLPreviewTexture* preview = new LLPreviewTexture("preview task texture",
 													 rect,
 													 std::string("Profile First Life Picture"),
@@ -433,7 +433,7 @@ void LLPanelAvatarSecondLife::onClickImage(void* data)
 				S32 left, top;
 				gFloaterView->getNewFloaterPosition(&left, &top);
 				LLRect rect = gSavedSettings.getRect("PreviewTextureRect");
-				rect.translate( left - rect.mLeft, top - rect.mTop );
+				rect.translate( left - rect.mLeft, rect.mTop - top ); // Changed to avoid textures being sunken below the window border.
 				LLPreviewTexture* preview = new LLPreviewTexture("preview task texture",
 														 rect,
 														 std::string("Profile Picture: ") +	name_text,
diff --git a/indra/newview/lltexturectrl.cpp b/indra/newview/lltexturectrl.cpp
index 12fcfc77d..d13ec619a 100644
--- a/indra/newview/lltexturectrl.cpp
+++ b/indra/newview/lltexturectrl.cpp
@@ -217,6 +217,7 @@ protected:
 	BOOL				mNoCopyTextureSelected;
 	F32					mContextConeOpacity;
 	LLSaveFolderState	mSavedFolderState;
+	BOOL				mSelectedItemPinned;
 	LLScrollListCtrl*   mLocalScrollCtrl; // tag: vaa emerald local_asset_browser
 };
 
@@ -249,7 +250,8 @@ LLFloaterTexturePicker::LLFloaterTexturePicker(
 	mSearchEdit(NULL),
 	mImmediateFilterPermMask(immediate_filter_perm_mask),
 	mNonImmediateFilterPermMask(non_immediate_filter_perm_mask),
-	mContextConeOpacity(0.f)
+	mContextConeOpacity(0.f),
+	mSelectedItemPinned(FALSE)
 {
 	mCanApplyImmediately = can_apply_immediately;
 	LLUICtrlFactory::getInstance()->buildFloater(this,"floater_texture_ctrl.xml");
@@ -506,8 +508,13 @@ BOOL LLFloaterTexturePicker::postBuild()
 		mInventoryPanel->setShowFolderState(LLInventoryFilter::SHOW_NON_EMPTY_FOLDERS);
 		mInventoryPanel->setAllowMultiSelect(FALSE);
 
-		// store this filter as the default one
-		mInventoryPanel->getRootFolder()->getFilter()->markDefault();
+		// Disable auto selecting first filtered item because it takes away
+		// selection from the item set by LLTextureCtrl owning this floater.
+		mInventoryPanel->getRootFolder()->setAutoSelectOverride(TRUE);
+
+		// Commented out to scroll to currently selected texture. See EXT-5403.
+		// // store this filter as the default one
+		// mInventoryPanel->getRootFolder()->getFilter()->markDefault();
 
 		// Commented out to stop opening all folders with textures
 		// mInventoryPanel->openDefaultFolderForType(LLAssetType::AT_TEXTURE);
@@ -675,6 +682,31 @@ void LLFloaterTexturePicker::draw()
 			// Draw X
 			gl_draw_x(interior, LLColor4::black );
 		}
+
+		if (mSelectedItemPinned) return;
+
+		LLFolderView* folder_view = mInventoryPanel->getRootFolder();
+		if (!folder_view) return;
+
+		LLInventoryFilter* filter = folder_view->getFilter();
+		if (!filter) return;
+
+		bool is_filter_active = folder_view->getCompletedFilterGeneration() < filter->getCurrentGeneration() &&
+				filter->isNotDefault();
+
+		// After inventory panel filter is applied we have to update
+		// constraint rect for the selected item because of folder view
+		// AutoSelectOverride set to TRUE. We force PinningSelectedItem
+		// flag to FALSE state and setting filter "dirty" to update
+		// scroll container to show selected item (see LLFolderView::doIdle()).
+		if (!is_filter_active && !mSelectedItemPinned)
+		{
+			folder_view->setPinningSelectedItem(mSelectedItemPinned);
+			folder_view->dirtyFilter();
+			folder_view->arrangeFromRoot();
+
+			mSelectedItemPinned = TRUE;
+		}
 	}
 }