diff --git a/indra/newview/llfloatermarketplacelistings.cpp b/indra/newview/llfloatermarketplacelistings.cpp
index eb60d706e48379b52e7dde8a243298438f1268a6..0be79426c1574a864695cd8c1af345d5e7fabade 100755
--- a/indra/newview/llfloatermarketplacelistings.cpp
+++ b/indra/newview/llfloatermarketplacelistings.cpp
@@ -151,6 +151,12 @@ void LLPanelMarketplaceListings::onSelectionChange(LLInventoryPanel *panel, cons
 	panel->onSelectionChange(items, user_action);
 }
 
+bool LLPanelMarketplaceListings::allowDropOnRoot()
+{
+	LLInventoryPanel* panel = (LLInventoryPanel*)getChild<LLTabContainer>("marketplace_filter_tabs")->getCurrentPanel();
+    return (panel ? panel->getAllowDropOnRoot() : false);
+}
+
 void LLPanelMarketplaceListings::onTabChange()
 {
 	// Find active panel
@@ -163,6 +169,19 @@ void LLPanelMarketplaceListings::onTabChange()
         
         // Set filter string on active panel
         panel->setFilterSubString(mFilterSubString);
+        
+        // Show/hide the drop zone and resize the inventory tabs panel accordingly
+        LLPanel* drop_zone = (LLPanel*)getChild<LLPanel>("marketplace_drop_zone");
+        bool drop_zone_visible = drop_zone->getVisible();
+        if (drop_zone_visible != panel->getAllowDropOnRoot())
+        {
+            LLPanel* tabs = (LLPanel*)getChild<LLPanel>("tab_container_panel");
+            S32 delta_height = drop_zone->getRect().getHeight();
+            delta_height = (drop_zone_visible ? delta_height : -delta_height);
+            tabs->reshape(tabs->getRect().getWidth(),tabs->getRect().getHeight() + delta_height);
+            tabs->translate(0,-delta_height);
+        }
+        drop_zone->setVisible(panel->getAllowDropOnRoot());
 	}
 }
 
@@ -538,14 +557,17 @@ BOOL LLFloaterMarketplaceListings::handleDragAndDrop(S32 x, S32 y, MASK mask, BO
     // marketplace listings root folder
     if (!handled || !isAccepted(*accept))
     {
-        if (!mPanelListings->getVisible() && mRootFolderId.notNull())
+        if ((LLMarketplaceData::instance().getSLMStatus() >= MarketplaceStatusCodes::MARKET_PLACE_MERCHANT) && mRootFolderId.notNull())
         {
             if (!mPanelListingsSet)
             {
                 setPanels();
             }
-            LLFolderView* root_folder = mPanelListings->getRootFolder();
-            handled = root_folder->handleDragAndDropToThisFolder(mask, drop, cargo_type, cargo_data, accept, tooltip_msg);
+            if (mPanelListings->allowDropOnRoot())
+            {
+                LLFolderView* root_folder = mPanelListings->getRootFolder();
+                handled = root_folder->handleDragAndDropToThisFolder(mask, drop, cargo_type, cargo_data, accept, tooltip_msg);
+            }
         }
     }
 	
diff --git a/indra/newview/llfloatermarketplacelistings.h b/indra/newview/llfloatermarketplacelistings.h
index 8a9731dafcff7aa7faa4e4a1be920279c7a49c0f..a691872aaa4f719a4d4e1aca6a5a654ea3cc81ca 100755
--- a/indra/newview/llfloatermarketplacelistings.h
+++ b/indra/newview/llfloatermarketplacelistings.h
@@ -54,6 +54,7 @@ class LLPanelMarketplaceListings : public LLPanel
 	BOOL postBuild();
 	void draw();
 	LLFolderView* getRootFolder() { return mRootFolder; }
+    bool allowDropOnRoot();
     
     void buildAllPanels();
     
diff --git a/indra/newview/llmarketplacefunctions.h b/indra/newview/llmarketplacefunctions.h
index 4aca88cba1a600a67e87c966cdf2fb615c9bfad7..af274c18f2a3b7a6b6ef470ac90c224bad2a40b0 100755
--- a/indra/newview/llmarketplacefunctions.h
+++ b/indra/newview/llmarketplacefunctions.h
@@ -66,8 +66,8 @@ namespace MarketplaceStatusCodes
 		MARKET_PLACE_NOT_INITIALIZED = 0,
 		MARKET_PLACE_INITIALIZING = 1,
 		MARKET_PLACE_CONNECTION_FAILURE = 2,
-		MARKET_PLACE_MERCHANT = 3,
-		MARKET_PLACE_NOT_MERCHANT = 4,
+		MARKET_PLACE_NOT_MERCHANT = 3,
+		MARKET_PLACE_MERCHANT = 4,
         MARKET_PLACE_NOT_MIGRATED_MERCHANT = 5,
         MARKET_PLACE_MIGRATED_MERCHANT = 6
 	};
diff --git a/indra/newview/skins/default/xui/en/panel_marketplace_listings_inventory.xml b/indra/newview/skins/default/xui/en/panel_marketplace_listings_inventory.xml
index 567e5e2724ca833c92cf83fa7b142bdcd0660f16..8d5fa265e264770251765ab702cdbcdf92c3cf73 100755
--- a/indra/newview/skins/default/xui/en/panel_marketplace_listings_inventory.xml
+++ b/indra/newview/skins/default/xui/en/panel_marketplace_listings_inventory.xml
@@ -11,7 +11,7 @@
     left="0"
     start_folder.name="Marketplace listings"
     show_empty_message="true"
-    show_root_folder="true"
+    show_root_folder="false"
     use_marketplace_folders="true"
     start_folder.type="merchant"
     tool_tip="Drag and drop items here to list them"
diff --git a/indra/newview/skins/default/xui/en/panel_marketplace_listings_listed.xml b/indra/newview/skins/default/xui/en/panel_marketplace_listings_listed.xml
index 668be27bdc795b8ee8cd1ed8f3c9025569c8267b..44f507ad84f6bab3b6eee3a68226b416cbaa67ff 100755
--- a/indra/newview/skins/default/xui/en/panel_marketplace_listings_listed.xml
+++ b/indra/newview/skins/default/xui/en/panel_marketplace_listings_listed.xml
@@ -10,7 +10,7 @@
     left_delta="0"
     start_folder.name="Marketplace listings"
     show_empty_message="true"
-    show_root_folder="true"
+    show_root_folder="false"
     use_marketplace_folders="true"
     allow_drop_on_root="false"
     start_folder.type="merchant"
diff --git a/indra/newview/skins/default/xui/en/panel_marketplace_listings_unassociated.xml b/indra/newview/skins/default/xui/en/panel_marketplace_listings_unassociated.xml
index 0015c85aa208ac3c5fcf41785f045ba775a7c487..871e8773c46bb289f9a58d82398129fd9b130ddd 100755
--- a/indra/newview/skins/default/xui/en/panel_marketplace_listings_unassociated.xml
+++ b/indra/newview/skins/default/xui/en/panel_marketplace_listings_unassociated.xml
@@ -10,7 +10,7 @@
     left_delta="0"
     start_folder.name="Marketplace listings"
     show_empty_message="true"
-    show_root_folder="true"
+    show_root_folder="false"
     use_marketplace_folders="true"
     start_folder.type="merchant"
     bg_opaque_color="DkGray2"
diff --git a/indra/newview/skins/default/xui/en/panel_marketplace_listings_unlisted.xml b/indra/newview/skins/default/xui/en/panel_marketplace_listings_unlisted.xml
index ec9c17681193925f8a5ca794dc54e6227f4eaa0e..98bef04aa793b8b61eeb58939d5da5a255274cc0 100755
--- a/indra/newview/skins/default/xui/en/panel_marketplace_listings_unlisted.xml
+++ b/indra/newview/skins/default/xui/en/panel_marketplace_listings_unlisted.xml
@@ -10,7 +10,7 @@
     left_delta="0"
     start_folder.name="Marketplace listings"
     show_empty_message="true"
-    show_root_folder="true"
+    show_root_folder="false"
     use_marketplace_folders="true"
     allow_drop_on_root="false"
     start_folder.type="merchant"