diff --git a/indra/newview/llpanelmaininventory.cpp b/indra/newview/llpanelmaininventory.cpp
--- a/indra/newview/llpanelmaininventory.cpp
+++ b/indra/newview/llpanelmaininventory.cpp
@@ -348,26 +348,31 @@ void LLPanelMainInventory::setSortBy(con
 		gSavedSettings.setU32("InventorySortOrder", order);
 
 		gSavedSettings.setBOOL("Inventory.SortByName", FALSE );
 		gSavedSettings.setBOOL("Inventory.SortByDate", TRUE );
 	}
-	else if (sort_field == "foldersalwaysbyname")
+	else if (sort_field == "foldersbyname")
 	{
 		U32 order = getActivePanel()->getSortOrder();
-		if ( order & LLInventoryFilter::SO_FOLDERS_BY_NAME )
-		{
-			order &= ~LLInventoryFilter::SO_FOLDERS_BY_NAME;
+		order |= LLInventoryFilter::SO_FOLDERS_BY_NAME;
 
-			gSavedSettings.setBOOL("Inventory.FoldersAlwaysByName", FALSE );
-		}
-		else
-		{
-			order |= LLInventoryFilter::SO_FOLDERS_BY_NAME;
+		getActivePanel()->setSortOrder( order );
 
-			gSavedSettings.setBOOL("Inventory.FoldersAlwaysByName", TRUE );
-		}
+		gSavedSettings.setU32("InventorySortOrder", order);
+
+		gSavedSettings.setBOOL("Inventory.FoldersAlwaysByName", TRUE );
+	}
+	else if (sort_field == "foldersbydate")
+	{
+		U32 order = getActivePanel()->getSortOrder();
+		order &= ~LLInventoryFilter::SO_FOLDERS_BY_NAME;
+
 		getActivePanel()->setSortOrder( order );
+
+		gSavedSettings.setU32("InventorySortOrder", order);
+
+		gSavedSettings.setBOOL("Inventory.FoldersAlwaysByName", FALSE );
 	}
 	else if (sort_field == "systemfolderstotop")
 	{
 		U32 order = getActivePanel()->getSortOrder();
 		if ( order & LLInventoryFilter::SO_SYSTEM_FOLDERS_TO_TOP )
@@ -1009,10 +1014,20 @@ void LLPanelMainInventory::onCustomActio
 	if (command_name == "sort_by_recent")
 	{
 		const LLSD arg = "date";
 		setSortBy(arg);
 	}
+	if (command_name == "sort_folders_by_name")
+	{
+		const LLSD arg = "foldersbyname";
+		setSortBy(arg);
+	}
+	if (command_name == "sort_folders_by_recent")
+	{
+		const LLSD arg = "foldersbydate";
+		setSortBy(arg);
+	}
 	if (command_name == "sort_system_folders_to_top")
 	{
 		const LLSD arg = "systemfolderstotop";
 		setSortBy(arg);
 	}
@@ -1203,10 +1218,22 @@ BOOL LLPanelMainInventory::isActionCheck
 	{
 		U32 order = getActivePanel()->getSortOrder();
 		return order & LLInventoryFilter::SO_DATE;
 	}
 
+	if (command_name == "sort_folders_by_name")
+	{
+		U32 order = getActivePanel()->getSortOrder();
+		return order & LLInventoryFilter::SO_FOLDERS_BY_NAME;
+	}
+
+	if (command_name == "sort_folders_by_recent")
+	{
+		U32 order = getActivePanel()->getSortOrder();
+		return ~order & LLInventoryFilter::SO_FOLDERS_BY_NAME;
+	}
+
 	if (command_name == "sort_system_folders_to_top")
 	{
 		U32 order = getActivePanel()->getSortOrder();
 		return order & LLInventoryFilter::SO_SYSTEM_FOLDERS_TO_TOP;
 	}
diff --git a/indra/newview/skins/default/xui/en/menu_inventory_gear_default.xml b/indra/newview/skins/default/xui/en/menu_inventory_gear_default.xml
--- a/indra/newview/skins/default/xui/en/menu_inventory_gear_default.xml
+++ b/indra/newview/skins/default/xui/en/menu_inventory_gear_default.xml
@@ -15,31 +15,55 @@
          parameter="new_window" />
     </menu_item_call>
     <menu_item_separator
      layout="topleft" />
     <menu_item_check
-     label="Sort by Name"
+     label="Sort Items by Name"
      layout="topleft"
      name="sort_by_name">
         <on_click
          function="Inventory.GearDefault.Custom.Action"
          parameter="sort_by_name" />
         <on_check
          function="Inventory.GearDefault.Check"
          parameter="sort_by_name" />
     </menu_item_check>
     <menu_item_check
-     label="Sort by Most Recent"
+     label="Sort Items by Most Recent"
      layout="topleft"
      name="sort_by_recent">
         <on_click
          function="Inventory.GearDefault.Custom.Action"
          parameter="sort_by_recent" />
         <on_check
          function="Inventory.GearDefault.Check"
          parameter="sort_by_recent" />         
     </menu_item_check>
+    <menu_item_separator
+     layout="topleft" />
+    <menu_item_check
+     label="Sort Folders by Name"
+     layout="topleft"
+     name="sort_by_name">
+        <on_click
+         function="Inventory.GearDefault.Custom.Action"
+         parameter="sort_folders_by_name" />
+        <on_check
+         function="Inventory.GearDefault.Check"
+         parameter="sort_folders_by_name" />
+    </menu_item_check>
+    <menu_item_check
+     label="Sort Folders by Most Recent"
+     layout="topleft"
+     name="sort_by_recent">
+        <on_click
+         function="Inventory.GearDefault.Custom.Action"
+         parameter="sort_folders_by_recent" />
+        <on_check
+         function="Inventory.GearDefault.Check"
+         parameter="sort_folders_by_recent" />         
+    </menu_item_check>
     <menu_item_check
      label="Sort System Folders to Top"
      layout="topleft"
      name="sort_system_folders_to_top">
         <on_click