diff --git a/indra/newview/llfolderview.cpp b/indra/newview/llfolderview.cpp
index 068a6407f747a7b6f2e9d454b021a716017cb379..70899014cb43e0abf613a88a6f2912e91af37c0f 100644
--- a/indra/newview/llfolderview.cpp
+++ b/indra/newview/llfolderview.cpp
@@ -797,7 +797,7 @@ void LLFolderView::sanitizeSelection()
 	// if nothing selected after prior constraints...
 	if (mSelectedItems.empty())
 	{
-		// ...select first available parent of original selection, or "My Inventory" otherwise
+		// ...select first available parent of original selection
 		LLFolderViewItem* new_selection = NULL;
 		if (original_selected_item)
 		{
@@ -2023,19 +2023,13 @@ void LLFolderView::deleteAllChildren()
 
 void LLFolderView::scrollToShowSelection()
 {
-	// If items are filtered while background fetch is in progress
-	// scrollbar resets to the first filtered item. See EXT-3981.
-	// However we allow scrolling for folder views with mAutoSelectOverride
-	// (used in Places SP) as an exception because the selection in them
-	// is not reset during items filtering. See STORM-133.
-	if ( (!LLInventoryModelBackgroundFetch::instance().folderFetchActive() || mAutoSelectOverride)
-			&& mSelectedItems.size() )
+	if ( mSelectedItems.size() )
 	{
 		mNeedsScroll = TRUE;
 	}
 }
 
-// If the parent is scroll containter, scroll it to make the selection
+// If the parent is scroll container, scroll it to make the selection
 // is maximally visible.
 void LLFolderView::scrollToShowItem(LLFolderViewItem* item, const LLRect& constraint_rect)
 {
@@ -2254,46 +2248,50 @@ void LLFolderView::doIdle()
 		arrangeAll();
 	}
 
+	if (mFilter->isModified() && mFilter->isNotDefault())
+	{
+		mNeedsAutoSelect = TRUE;
+	}
 	mFilter->clearModified();
-	BOOL filter_modified_and_active = mCompletedFilterGeneration < mFilter->getCurrentGeneration() && 
-										mFilter->isNotDefault();
-	mNeedsAutoSelect = filter_modified_and_active &&
-							!(gFocusMgr.childHasKeyboardFocus(this) || gFocusMgr.getMouseCapture());
 
-	// filter to determine visiblity before arranging
+	// filter to determine visibility before arranging
 	filterFromRoot();
 
 	// automatically show matching items, and select first one if we had a selection
-	// do this every frame until user puts keyboard focus into the inventory window
-	// signaling the end of the automatic update
-	// only do this when mNeedsFilter is set, meaning filtered items have
-	// potentially changed
 	if (mNeedsAutoSelect)
 	{
 		LLFastTimer t3(FTM_AUTO_SELECT);
 		// select new item only if a filtered item not currently selected
 		LLFolderViewItem* selected_itemp = mSelectedItems.empty() ? NULL : mSelectedItems.back();
-		if ((selected_itemp && !selected_itemp->getFiltered()) && !mAutoSelectOverride)
+		if (!mAutoSelectOverride && (!selected_itemp || !selected_itemp->potentiallyFiltered()))
 		{
-			// select first filtered item
-			LLSelectFirstFilteredItem filter;
-			applyFunctorRecursively(filter);
+			applyFunctorRecursively(LLSelectFirstFilteredItem());
 		}
 
 		// Open filtered folders for folder views with mAutoSelectOverride=TRUE.
 		// Used by LLPlacesFolderView.
 		if (mAutoSelectOverride && !mFilter->getFilterSubString().empty())
 		{
-			LLOpenFilteredFolders filter;
-			applyFunctorRecursively(filter);
+			applyFunctorRecursively(LLOpenFilteredFolders());
 		}
 
 		scrollToShowSelection();
 	}
 
+	BOOL filter_finished = mCompletedFilterGeneration >= mFilter->getCurrentGeneration() 
+						&& !LLInventoryModelBackgroundFetch::instance().folderFetchActive();
+	if (filter_finished 
+		|| gFocusMgr.childHasKeyboardFocus(inventory_panel) 
+		|| gFocusMgr.childHasMouseCapture(inventory_panel))
+	{
+		// finishing the filter process, giving focus to the folder view, or dragging the scrollbar all stop the auto select process
+		mNeedsAutoSelect = FALSE;
+	}
+
+
 	// during filtering process, try to pin selected item's location on screen
 	// this will happen when searching your inventory and when new items arrive
-	if (filter_modified_and_active)
+	if (!filter_finished)
 	{
 		// calculate rectangle to pin item to at start of animated rearrange
 		if (!mPinningSelectedItem && !mSelectedItems.empty())
@@ -2359,7 +2357,7 @@ void LLFolderView::doIdle()
 	{
 		scrollToShowItem(mSelectedItems.back(), constraint_rect);
 		// continue scrolling until animated layout change is done
-		if (!filter_modified_and_active 
+		if (filter_finished
 			&& (!needsArrange() || !is_visible))
 		{
 			mNeedsScroll = FALSE;
diff --git a/indra/newview/llfolderviewitem.cpp b/indra/newview/llfolderviewitem.cpp
index 712d3e4583e3a9fc6fc06aed834c795292a0db7d..dce0981a3e7358713c1b34761cb9e344aee8794f 100644
--- a/indra/newview/llfolderviewitem.cpp
+++ b/indra/newview/llfolderviewitem.cpp
@@ -221,6 +221,11 @@ BOOL LLFolderViewItem::potentiallyVisible()
 {
 	// we haven't been checked against min required filter
 	// or we have and we passed
+	return potentiallyFiltered();
+}
+
+BOOL LLFolderViewItem::potentiallyFiltered()
+{
 	return getLastFilterGeneration() < getRoot()->getFilter()->getMinRequiredGeneration() || getFiltered();
 }
 
@@ -1375,7 +1380,8 @@ void LLFolderViewFolder::filter( LLInventoryFilter& filter)
 			&& !mPassedFilter)									// and did not pass the filter
 		{
 			// go ahead and flag this folder as done
-			mLastFilterGeneration = filter_generation;			
+			mLastFilterGeneration = filter_generation;
+			mStringMatchOffset = std::string::npos;
 		}
 		else // filter self only on first pass through
 		{
diff --git a/indra/newview/llfolderviewitem.h b/indra/newview/llfolderviewitem.h
index 4e8dc2da167caa822e21c6f14129f85b12043f3d..3c7592046a15dc0d589f586af2e573363503e38f 100644
--- a/indra/newview/llfolderviewitem.h
+++ b/indra/newview/llfolderviewitem.h
@@ -304,7 +304,8 @@ class LLFolderViewItem : public LLView
 	BOOL			isDescendantOf( const LLFolderViewFolder* potential_ancestor );
 	S32				getIndentation() { return mIndentation; }
 
-	virtual BOOL	potentiallyVisible(); // do we know for a fact that this item has been filtered out?
+	virtual BOOL	potentiallyVisible(); // do we know for a fact that this item won't be displayed?
+	virtual BOOL	potentiallyFiltered(); // do we know for a fact that this item has been filtered out?
 
 	virtual BOOL	getFiltered();
 	virtual BOOL	getFiltered(S32 filter_generation);
diff --git a/indra/newview/llinventoryfilter.cpp b/indra/newview/llinventoryfilter.cpp
index e859535d18d7cb63a726cd1f8c63990914954b28..4d0af94f9f62b70b6b37f71ccc973d4444f59970 100644
--- a/indra/newview/llinventoryfilter.cpp
+++ b/indra/newview/llinventoryfilter.cpp
@@ -402,6 +402,11 @@ std::string::size_type LLInventoryFilter::getStringMatchOffset() const
 	return mSubStringMatchOffset;
 }
 
+BOOL LLInventoryFilter::isDefault() const
+{
+	return !isNotDefault();
+}
+
 // has user modified default filter params?
 BOOL LLInventoryFilter::isNotDefault() const
 {
diff --git a/indra/newview/llinventoryfilter.h b/indra/newview/llinventoryfilter.h
index 1804637a040a0f742e85665e3ac15ff965cef3a2..9e600c036f0e8679846b564bacbc478fb7db1d1c 100644
--- a/indra/newview/llinventoryfilter.h
+++ b/indra/newview/llinventoryfilter.h
@@ -163,6 +163,7 @@ class LLInventoryFilter
 	// +-------------------------------------------------------------------+
 	// + Default
 	// +-------------------------------------------------------------------+
+	BOOL 				isDefault() const;
 	BOOL 				isNotDefault() const;
 	void 				markDefault();
 	void 				resetDefault();
diff --git a/indra/newview/llinventoryfunctions.cpp b/indra/newview/llinventoryfunctions.cpp
index 236c997ef618d477e6e98ebd3deebb1555fb0ab6..f74a239fd330ff6899800dcc12c551b22a466161 100644
--- a/indra/newview/llinventoryfunctions.cpp
+++ b/indra/newview/llinventoryfunctions.cpp
@@ -1059,20 +1059,24 @@ void LLSaveFolderState::setApply(BOOL apply)
 void LLSaveFolderState::doFolder(LLFolderViewFolder* folder)
 {
 	LLMemType mt(LLMemType::MTYPE_INVENTORY_DO_FOLDER);
+	LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
+	if(!bridge) return;
+	
 	if(mApply)
 	{
 		// we're applying the open state
-		LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
-		if(!bridge) return;
 		LLUUID id(bridge->getUUID());
 		if(mOpenFolders.find(id) != mOpenFolders.end())
 		{
-			folder->setOpen(TRUE);
+			if (!folder->isOpen())
+			{
+				folder->setOpen(TRUE);
+			}
 		}
 		else
 		{
 			// keep selected filter in its current state, this is less jarring to user
-			if (!folder->isSelected())
+			if (!folder->isSelected() && folder->isOpen())
 			{
 				folder->setOpen(FALSE);
 			}
@@ -1083,8 +1087,6 @@ void LLSaveFolderState::doFolder(LLFolderViewFolder* folder)
 		// we're recording state at this point
 		if(folder->isOpen())
 		{
-			LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
-			if(!bridge) return;
 			mOpenFolders.insert(bridge->getUUID());
 		}
 	}
@@ -1120,7 +1122,6 @@ void LLSelectFirstFilteredItem::doItem(LLFolderViewItem *item)
 		{
 			item->getParentFolder()->setOpenArrangeRecursively(TRUE, LLFolderViewFolder::RECURSE_UP);
 		}
-		item->getRoot()->scrollToShowSelection();
 		mItemSelected = TRUE;
 	}
 }
@@ -1134,7 +1135,6 @@ void LLSelectFirstFilteredItem::doFolder(LLFolderViewFolder* folder)
 		{
 			folder->getParentFolder()->setOpenArrangeRecursively(TRUE, LLFolderViewFolder::RECURSE_UP);
 		}
-		folder->getRoot()->scrollToShowSelection();
 		mItemSelected = TRUE;
 	}
 }