diff --git a/extensions/webmail/imap_listing.py b/extensions/webmail/imap_listing.py
index a6cfa86a2..4f16e3ea0 100644
--- a/extensions/webmail/imap_listing.py
+++ b/extensions/webmail/imap_listing.py
@@ -183,11 +183,12 @@ class IMAPconnector(object):
         self.messages = data[0].split()
         return len(self.messages)
 
-    def _parse_folder_name(self, dict, parts):
+    def _parse_folder_name(self, dict, prefix, delimiter, parts):
         if not len(parts):
             return
-        dict[parts[0]] = {}
-        self._parse_folder_name(dict[parts[0]], parts[1:])
+        path = "%s%s%s" % (prefix, delimiter, parts[0])
+        dict[parts[0]] = {"path" : path, "sub" : {}}
+        self._parse_folder_name(dict[parts[0]]["sub"], path, delimiter, parts[1:])
 
     def listfolders(self, topfolder='INBOX', md_folders=[]):
         list_response_pattern = re.compile(r'\((?P<flags>.*?)\) "(?P<delimiter>.*)" (?P<name>.*)')
@@ -198,8 +199,8 @@ class IMAPconnector(object):
             name = name.strip('"').decode("imap4-utf-7")
             if re.search("\%s" % delimiter, name):
                 parts = name.split(".")
-                dict = {}
-                self._parse_folder_name(dict, parts[1:])
+                dict = {"path" : parts[0], "sub" : {}}
+                self._parse_folder_name(dict["sub"], parts[0], delimiter, parts[1:])
                 result[parts[0]] = dict
                 continue
             present = False
@@ -280,6 +281,18 @@ class ImapListing(EmailListing):
             self.mbc.criterions = []
         EmailListing.__init__(self, **kwargs)  
 
+    def __parse_folders(self, folders):
+        result = []
+        for fd in sorted(folders.keys()):
+            descr = {"name" : fd}
+            if folders[fd] is not None:
+                descr["path"] = folders[fd]["path"]
+                if folders[fd]["sub"] != {}:
+                    descr["icon"] = "subfolders.png"
+                    descr["sub"] = self.__parse_folders(folders[fd]["sub"])
+            result += [descr]
+        return result
+
     def getfolders(self):
         md_folders = [{"name" : "INBOX", "icon" : "overview.png"},
                       {"name" : 'Drafts'},
@@ -287,11 +300,7 @@ class ImapListing(EmailListing):
                       {"name" : 'Sent'},
                       {"name" : 'Trash', "icon" : "trash.png"}]
         folders = self.mbc.listfolders(md_folders=md_folders)
-        for fd in sorted(folders.keys()):
-            descr = {"name" : fd}
-            if folders[fd] != None:
-                descr["icon"] = "subfolders.png"
-            md_folders += [descr]
+        md_folders += self.__parse_folders(folders)
         return md_folders
 
     def parse_search_parameters(self, criterion, pattern):
diff --git a/extensions/webmail/templates/index.html b/extensions/webmail/templates/index.html
index 1ca47b349..29bc90f4e 100644
--- a/extensions/webmail/templates/index.html
+++ b/extensions/webmail/templates/index.html
@@ -1,5 +1,6 @@
 {% extends "common/email_listing.html" %}
 {% load i18n %}
+{% load webextras %}
 {% block css %}
 #listing {
   position: absolute;
@@ -63,6 +64,7 @@ table#emails > tbody {
 
 .box li.selected {
   background: #ffffcc;
+  position: relative;
 }
 
 .box a:link, .box a:visited {
@@ -109,6 +111,17 @@ tr.selected {
   background: #ffffcc;
 }
 
+ul.hidden {
+  display: none;
+}
+
+ul.visible {
+  background: white;
+  display: block;
+  padding-bottom: 0;
+  padding-left: 10px;
+}
+
 {% endblock %}
 {% block js %}
   wm_updatelisting = function(resp) {
@@ -116,9 +129,6 @@ tr.selected {
 
     $$("a[name=compose]").addEvent("click", loadCompose);
     $$("a[name=empty]").addEvent("click", empty);
-    if (!checkSelection()) {
-      select($$("a[href=INBOX]"));
-    }
   }
 
   empty = function(event) {
@@ -128,17 +138,6 @@ tr.selected {
     }}).get();
   }
 
-  checkSelection = function() {
-    var selection = false;
-
-    $$("a[name=loadfolder]").each(function(item) {
-      if (!selection) {
-        selection = item.getParent().hasClass("selected");
-      }
-    });
-    return selection;
-  }
-
   select = function(obj) {
     $$("a[name=loadfolder]").each(function(item) {
       item.getParent().removeClass("selected");
@@ -146,6 +145,14 @@ tr.selected {
     });
     obj.getParent().removeClass("droppable");
     obj.getParent().addClass("selected");
+
+    $$(obj.getParents("ul[class*=hidden]")).each(function(item) {
+      item.removeClass("hidden");
+      item.addClass("visible");
+      $$("img[name=" + item.get("name") + "]").each(function(item) {
+        item.set("src", "/static/pics/folder-open.png");
+      });
+    });
   }
 
   register_callback("viewmail", function(resp) {
@@ -221,6 +228,18 @@ tr.selected {
   }
   register_callback("folder", function(resp) {
     wm_updatelisting(resp);
+    select($$("a[href=" + current_anchor.getbaseurl() + "]"));
+    $$("img[class=clickable]").addEvent("click", function(evt) {
+      $$("ul[name=" + evt.target.get("name") + "]").each(function(item) {
+        if (item.hasClass("hidden")) {
+          evt.target.set("src", "/static/pics/folder-open.png");
+          item.removeClass("hidden").addClass("visible");
+        } else {
+          evt.target.set("src", "/static/pics/subfolders.png");
+          item.removeClass("visible").addClass("hidden");
+        }
+      });
+    });
     searchbox_init();
     if (navparams.has("order")) {
       src = navparams.get("order").charAt(0) == "-" ? "down_arrow.png" : "up_arrow.png";
@@ -346,20 +365,7 @@ tr.selected {
 <div id="leftcol" class="box">
   <h3>{% trans "Folders" %}</h3>
   <ul>
-  {% for fd in folders %}
-  {% url extensions.webmail.main.folder fd.name as fdurl %}
-  <li class="droppable">
-    <a href="{{ fd.name }}" name="loadfolder">
-      {% if fd.icon %}<img src="/static/pics/{{ fd.icon }}" />
-      {% else %}<img src="/static/pics/folder.png" />
-      {% endif %}
-    {{ fd.name }}
-    </a>
-  </li>
-  {% endfor %}
+    {% print_folders folders %}
   </ul>
 </div>
 {% endblock %}
-{% block menu %}
-
-{% endblock %}
diff --git a/extensions/webmail/templatetags/webextras.py b/extensions/webmail/templatetags/webextras.py
index 3e2660ddc..4ee9340df 100644
--- a/extensions/webmail/templatetags/webextras.py
+++ b/extensions/webmail/templatetags/webextras.py
@@ -7,22 +7,6 @@ from mailng.extensions.webmail.imap_listing import IMAPheader
 
 register = template.Library()
 
-def backurl(session, **kwargs):
-    res = session["folder"]
-    params = ""
-    for key in ["page"]:
-        if key in session.keys():
-            if params != "":
-                params += "&"
-            params += "%s=%s" % (key, session[key])
-    for k, v in kwargs.iteritems():
-        if params != "":
-            params += "&"
-        params += "%s=%s" % (k, v)
-    if params != "":
-        res += "?%s" % params
-    return res
-
 @register.simple_tag
 def viewm_menu(selection, backurl, folder, mail_id, perms):   
     entries = [
@@ -99,3 +83,23 @@ def listing_menu(selection, folder, perms):
                              "perms" : perms})
     searchbar = render_to_string("common/email_searchbar.html", {})
     return menu + searchbar
+
+@register.simple_tag
+def print_folders(folders):
+    result = ""
+    for fd in folders:
+        if fd.has_key("icon"):
+            icon = fd["icon"]
+        else:
+            icon = "folder.png"
+        result += "<li class='droppable'>\n"
+        result += "<a href='%s' name='loadfolder'>%s</a>\n" \
+            % (fd.has_key("path") and fd["path"] or fd["name"], fd["name"])
+        if fd.has_key("sub"):
+            result += "<img name='%s' class='clickable' src='/static/pics/%s' />\n" \
+                % (fd["path"], icon)
+            result += "<ul name='%s' class='hidden'>" % (fd["path"]) + print_folders(fd["sub"]) + "</ul>\n"
+        else:
+            result += "<img src='/static/pics/%s' />\n" % icon
+        result += "</li>\n"
+    return result
diff --git a/static/js/common.js b/static/js/common.js
index e117c264b..53260efb5 100644
--- a/static/js/common.js
+++ b/static/js/common.js
@@ -155,6 +155,10 @@ function HashWrapper(deflocation) {
         return this;
     };
 
+    this.getbaseurl = function() {
+        return this.base.substr(0, this.base.length - 1);
+    };
+
     this.delparam = function(name) {
         if (!this.params.has(name)) {
             return false;