diff --git a/indra/newview/llfolderviewitem.cpp b/indra/newview/llfolderviewitem.cpp
index 7b5179df2..c083a8b87 100644
--- a/indra/newview/llfolderviewitem.cpp
+++ b/indra/newview/llfolderviewitem.cpp
@@ -1191,6 +1191,36 @@ S32 LLFolderViewFolder::arrange( S32* width, S32* height, S32 filter_generation)
 	}
 
 	mHasVisibleChildren = hasFilteredDescendants(filter_generation);
+	if (mHasVisibleChildren)
+	{
+		// We have to verify that there's at least one child that's not filtered out
+		bool found = false;
+		// Try the items first
+		for (items_t::iterator iit = mItems.begin(); iit != mItems.end(); ++iit)
+		{
+			LLFolderViewItem* itemp = (*iit);
+			found = itemp->getFiltered(filter_generation);
+			if (found)
+				break;
+		}
+		if (!found)
+		{
+			// If no item found, try the folders
+			for (folders_t::iterator fit = mFolders.begin(); fit != mFolders.end(); ++fit)
+			{
+				LLFolderViewFolder* folderp = (*fit);
+				found = folderp->getListener()
+					&& (folderp->getFiltered(filter_generation)
+						|| (folderp->getFilteredFolder(filter_generation)
+							&& folderp->hasFilteredDescendants(filter_generation)));
+				if (found)
+					break;
+			}
+		}
+
+		mHasVisibleChildren = found;
+	}
+
 
 	// calculate height as a single item (without any children), and reshapes rectangle to match
 	LLFolderViewItem::arrange( width, height, filter_generation );