diff --git a/plugin/lipstickplugin.cpp b/plugin/lipstickplugin.cpp
index 9fbe2313..b748ec5b 100644
--- a/plugin/lipstickplugin.cpp
+++ b/plugin/lipstickplugin.cpp
@@ -20,6 +20,7 @@
 #include <components/launcheritem.h>
 #include <components/launchermodel.h>
 #include <components/launcherwatchermodel.h>
+#include <components/launcherfoldermodel.h>
 #include <notifications/notificationpreviewpresenter.h>
 #include <notifications/notificationfeedbackplayer.h>
 #include <notifications/notificationlistmodel.h>
@@ -52,6 +53,9 @@ void LipstickPlugin::registerTypes(const char *uri)
     qmlRegisterType<NotificationListModel>("org.nemomobile.lipstick", 0, 1, "NotificationListModel");
     qmlRegisterType<LipstickNotification>("org.nemomobile.lipstick", 0, 1, "Notification");
     qmlRegisterType<LauncherItem>("org.nemomobile.lipstick", 0, 1, "LauncherItem");
+    qmlRegisterType<LauncherFolderModel>("org.nemomobile.lipstick", 0, 1, "LauncherFolderModel");
+    qmlRegisterType<LauncherFolderItem>("org.nemomobile.lipstick", 0, 1, "LauncherFolderItem");
+
     qmlRegisterUncreatableType<NotificationPreviewPresenter>("org.nemomobile.lipstick", 0, 1, "NotificationPreviewPresenter", "This type is initialized by HomeApplication");
     qmlRegisterUncreatableType<NotificationFeedbackPlayer>("org.nemomobile.lipstick", 0, 1, "NotificationFeedbackPlayer", "This type is initialized by HomeApplication");
     qmlRegisterUncreatableType<VolumeControl>("org.nemomobile.lipstick", 0, 1, "VolumeControl", "This type is initialized by HomeApplication");
diff --git a/src/components/launcherfoldermodel.cpp b/src/components/launcherfoldermodel.cpp
new file mode 100644
index 00000000..bcd3084b
--- /dev/null
+++ b/src/components/launcherfoldermodel.cpp
@@ -0,0 +1,508 @@
+// This file is part of lipstick, a QML desktop library
+//
+// Copyright (c) 2014 Jolla Ltd.
+// Contact: Martin Jones <martin.jones@jolla.com>
+//
+// This library is free software; you can redistribute it and/or
+// modify it under the terms of the GNU Lesser General Public
+// License version 2.1 as published by the Free Software Foundation
+// and appearing in the file LICENSE.LGPL included in the packaging
+// of this file.
+//
+// This code is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+// GNU Lesser General Public License for more details.
+
+#include "launcheritem.h"
+#include "launcherfoldermodel.h"
+#include "launchermodel.h"
+#include <QXmlStreamReader>
+#include <QXmlStreamWriter>
+#include <QFile>
+#include <QFileInfo>
+#include <QTemporaryFile>
+#include <QStandardPaths>
+#include <QDir>
+#include <QStack>
+#include <mdesktopentry.h>
+#include <glib.h>
+#include <QDebug>
+
+static const int FOLDER_MODEL_SAVE_TIMER_MS = 1000;
+static const QString CONFIG_FOLDER_SUBDIRECTORY("/lipstick/");
+static const QString CONFIG_MENU_FILENAME("applications.menu");
+static const QString DEFAULT_ICON_ID("icon-launcher-folder-01");
+
+// This is modeled after the freedesktop.org menu files http://standards.freedesktop.org/menu-spec/latest/
+// but handles only the basic elements, i.e. no merging, filtering, layout, etc. is supported.
+
+LauncherFolderItem::LauncherFolderItem(QObject *parent)
+    : QObjectListModel(parent), mIconId(DEFAULT_ICON_ID)
+{
+    connect(this, SIGNAL(itemRemoved(QObject*)), this, SLOT(handleRemoved(QObject*)));
+    connect(this, SIGNAL(itemAdded(QObject*)), this, SLOT(handleAdded(QObject*)));
+    connect(this, SIGNAL(rowsMoved(QModelIndex,int,int,QModelIndex,int)), this, SIGNAL(saveNeeded()));
+}
+
+LauncherModel::ItemType LauncherFolderItem::type() const
+{
+    return LauncherModel::Folder;
+}
+
+const QString &LauncherFolderItem::title() const
+{
+    return mTitle;
+}
+
+void LauncherFolderItem::setTitle(const QString &title)
+{
+    if (title == mTitle)
+        return;
+
+    mTitle = title;
+    emit titleChanged();
+    emit saveNeeded();
+}
+
+const QString &LauncherFolderItem::iconId() const
+{
+    return mIconId;
+}
+
+void LauncherFolderItem::setIconId(const QString &icon)
+{
+    if (icon == mIconId)
+        return;
+
+    mIconId = icon;
+    saveDirectoryFile();
+    emit iconIdChanged();
+}
+
+bool LauncherFolderItem::isUpdating() const
+{
+    LauncherFolderItem *me = const_cast<LauncherFolderItem*>(this);
+    for (int i = 0; i < rowCount(); ++i) {
+        const LauncherItem *launcherItem = qobject_cast<const LauncherItem*>(me->get(i));
+        if (launcherItem && launcherItem->isUpdating())
+            return true;
+    }
+
+    return false;
+}
+
+int LauncherFolderItem::updatingProgress() const
+{
+    int updatingCount = 0;
+    int updatingTotal = 0;
+    LauncherFolderItem *me = const_cast<LauncherFolderItem*>(this);
+    for (int i = 0; i < rowCount(); ++i) {
+        const LauncherItem *launcherItem = qobject_cast<const LauncherItem*>(me->get(i));
+        if (launcherItem && launcherItem->isUpdating()) {
+            int progress = launcherItem->updatingProgress();
+            if (progress < 0 || progress > 100)
+                return progress;
+            ++updatingCount;
+            updatingTotal += progress;
+        }
+    }
+
+    return updatingCount ? updatingTotal / updatingCount : 0;
+}
+
+LauncherFolderItem *LauncherFolderItem::parentFolder() const
+{
+    return mParentFolder;
+}
+
+void LauncherFolderItem::setParentFolder(LauncherFolderItem *parent)
+{
+    if (parent == mParentFolder)
+        return;
+
+    mParentFolder = parent;
+    emit parentFolderChanged();
+}
+
+// Creates a folder and moves the item at that index into the folder
+LauncherFolderItem *LauncherFolderItem::createFolder(int index, const QString &name)
+{
+    if (index < 0 || index > rowCount())
+        return 0;
+
+    LauncherFolderItem *folder = new LauncherFolderItem(this);
+    folder->setTitle(name);
+    folder->setParentFolder(this);
+    QObject *item = get(index);
+    insertItem(index, folder);
+    if (item) {
+        removeItem(item);
+        folder->addItem(item);
+    }
+
+    emit saveNeeded();
+
+    return folder;
+}
+
+void LauncherFolderItem::destroyFolder()
+{
+    if (itemCount() != 0)
+        qWarning() << "Removing a folder that is not empty.";
+    if (mParentFolder)
+        mParentFolder->removeItem(this);
+    if (!mDirectoryFile.isEmpty()) {
+        QFile file(mDirectoryFile);
+        file.remove();
+    }
+
+    emit saveNeeded();
+
+    deleteLater();
+}
+
+LauncherFolderItem *LauncherFolderItem::findContainer(QObject *item)
+{
+    LauncherFolderItem *me = const_cast<LauncherFolderItem*>(this);
+    for (int i = 0; i < rowCount(); ++i) {
+        QObject *obj = me->get(i);
+        if (obj == item) {
+            return this;
+        } else if (LauncherFolderItem *subFolder = qobject_cast<LauncherFolderItem*>(obj)) {
+            LauncherFolderItem *folder = subFolder->findContainer(item);
+            if (folder)
+                return folder;
+        }
+    }
+
+    return 0;
+}
+
+QString LauncherFolderItem::directoryFile() const
+{
+    return mDirectoryFile;
+}
+
+void LauncherFolderItem::loadDirectoryFile(const QString &filename)
+{
+    mDirectoryFile = filename;
+    if (!mDirectoryFile.startsWith('/')) {
+        QFileInfo fi(LauncherFolderModel::configFile());
+        mDirectoryFile = fi.absoluteDir().absoluteFilePath(mDirectoryFile);
+    }
+
+    GKeyFile *keyfile = g_key_file_new();
+    GError *err = NULL;
+
+    if (g_key_file_load_from_file(keyfile, mDirectoryFile.toLatin1(), G_KEY_FILE_NONE, &err)) {
+        mIconId = QString::fromLatin1(g_key_file_get_string(keyfile, "Desktop Entry", "Icon", &err));
+        emit iconIdChanged();
+    }
+
+    if (err != NULL) {
+        qWarning() << "Failed to load .directory file" << err->message;
+        g_error_free(err);
+    }
+
+    g_key_file_free(keyfile);
+}
+
+void LauncherFolderItem::saveDirectoryFile()
+{
+    QScopedPointer<QFile> dirFile;
+    if (mDirectoryFile.isEmpty()) {
+        QFileInfo fi(LauncherFolderModel::configFile());
+        QTemporaryFile *tempFile = new QTemporaryFile(fi.absoluteDir().absoluteFilePath("FolderXXXXXX.directory"));
+        dirFile.reset(tempFile);
+        tempFile->open();
+        tempFile->setAutoRemove(false);
+        mDirectoryFile = tempFile->fileName();
+        emit directoryFileChanged();
+        emit saveNeeded();
+    } else {
+        dirFile.reset(new QFile(mDirectoryFile));
+        dirFile.data()->open(QIODevice::WriteOnly);
+    }
+
+    if (!dirFile.data()->isOpen()) {
+        qWarning() << "Cannot open" << mDirectoryFile;
+        return;
+    }
+
+    GKeyFile *keyfile = g_key_file_new();
+    GError *err = NULL;
+
+    g_key_file_load_from_file(keyfile, mDirectoryFile.toLatin1(), G_KEY_FILE_NONE, &err);
+    g_key_file_set_string(keyfile, "Desktop Entry", "Icon", mIconId.toLatin1());
+
+    gchar *data = g_key_file_to_data(keyfile, NULL, &err);
+    dirFile.data()->write(data);
+    dirFile.data()->close();
+    g_free(data);
+
+    g_key_file_free(keyfile);
+}
+
+void LauncherFolderItem::handleAdded(QObject *item)
+{
+    const LauncherItem *launcherItem = qobject_cast<const LauncherItem*>(item);
+    const LauncherFolderItem *folder = qobject_cast<const LauncherFolderItem*>(item);
+
+    if (launcherItem) {
+        if (launcherItem->isUpdating()) {
+            emit isUpdatingChanged();
+            emit updatingProgressChanged();
+        }
+        connect(item, SIGNAL(isTemporaryChanged()), this, SIGNAL(saveNeeded()));
+    } else if (folder) {
+        if (folder->isUpdating()) {
+            emit isUpdatingChanged();
+            emit updatingProgressChanged();
+        }
+        connect(item, SIGNAL(saveNeeded()), this, SIGNAL(saveNeeded()));
+    }
+
+    if (launcherItem || folder) {
+        connect(item, SIGNAL(isUpdatingChanged()), this, SIGNAL(isUpdatingChanged()));
+        connect(item, SIGNAL(updatingProgressChanged()), this, SIGNAL(updatingProgressChanged()));
+    }
+
+    emit saveNeeded();
+}
+
+void LauncherFolderItem::handleRemoved(QObject *item)
+{
+    const LauncherItem *launcherItem = qobject_cast<const LauncherItem*>(item);
+    const LauncherFolderItem *folder = qobject_cast<const LauncherFolderItem*>(item);
+
+    if (launcherItem) {
+        if (launcherItem->isUpdating()) {
+            emit isUpdatingChanged();
+            emit updatingProgressChanged();
+        }
+        disconnect(item, SIGNAL(isTemporaryChanged()), this, SIGNAL(saveNeeded()));
+    } else if (folder) {
+        if (folder->isUpdating()) {
+            emit isUpdatingChanged();
+            emit updatingProgressChanged();
+        }
+        disconnect(item, SIGNAL(saveNeeded()), this, SIGNAL(saveNeeded()));
+    }
+
+    if (launcherItem || folder) {
+        disconnect(item, SIGNAL(isUpdatingChanged()), this, SIGNAL(isUpdatingChanged()));
+        disconnect(item, SIGNAL(updatingProgressChanged()), this, SIGNAL(updatingProgressChanged()));
+    }
+
+    emit saveNeeded();
+}
+
+//============
+
+LauncherFolderModel::LauncherFolderModel(QObject *parent)
+    : LauncherFolderItem(parent)
+    , mLauncherModel(new LauncherModel(this))
+{
+    connect(mLauncherModel, SIGNAL(itemRemoved(QObject*)),
+            this, SLOT(appRemoved(QObject*)));
+    connect(mLauncherModel, SIGNAL(itemAdded(QObject*)),
+            this, SLOT(appAdded(QObject*)));
+    connect(&mSaveTimer, SIGNAL(timeout()), this, SLOT(save()));
+
+    QDir config;
+    config.mkpath(configDir());
+
+    load();
+
+    connect(this, SIGNAL(saveNeeded()), this, SLOT(scheduleSave()));
+}
+
+QStringList LauncherFolderModel::directories() const
+{
+    return mLauncherModel->directories();
+}
+
+void LauncherFolderModel::setDirectories(QStringList dirs)
+{
+    mLauncherModel->setDirectories(dirs);
+}
+
+QStringList LauncherFolderModel::iconDirectories() const
+{
+    return mLauncherModel->iconDirectories();
+}
+
+void LauncherFolderModel::setIconDirectories(QStringList dirs)
+{
+    mLauncherModel->setIconDirectories(dirs);
+}
+
+// Move item to folder at index. If index < 0 the item will be appended.
+bool LauncherFolderModel::moveToFolder(QObject *item, LauncherFolderItem *folder, int index)
+{
+    if (!item || !folder)
+        return false;
+
+    LauncherFolderItem *source = findContainer(item);
+    if (!source)
+        return false;
+
+    source->removeItem(item);
+
+    if (index >= 0)
+        folder->insertItem(index, item);
+    else
+        folder->addItem(item);
+    if (LauncherFolderItem *f = qobject_cast<LauncherFolderItem*>(item))
+        f->setParentFolder(folder);
+
+    scheduleSave();
+
+    return true;
+}
+
+// An app removed from system
+void LauncherFolderModel::appRemoved(QObject *item)
+{
+    LauncherFolderItem *folder = findContainer(item);
+    if (folder) {
+        folder->removeItem(item);
+        scheduleSave();
+    }
+}
+
+// An app added to system
+void LauncherFolderModel::appAdded(QObject *item)
+{
+    addItem(item);
+    scheduleSave();
+}
+
+void LauncherFolderModel::import()
+{
+    for (int i = 0; i < mLauncherModel->rowCount(); ++i) {
+        addItem(mLauncherModel->get(i));
+    }
+}
+
+void LauncherFolderModel::scheduleSave()
+{
+    mSaveTimer.start(FOLDER_MODEL_SAVE_TIMER_MS);
+}
+
+QString LauncherFolderModel::configDir()
+{
+    return QStandardPaths::writableLocation(QStandardPaths::ConfigLocation) + CONFIG_FOLDER_SUBDIRECTORY;
+}
+
+QString LauncherFolderModel::configFile()
+{
+    return configDir() + CONFIG_MENU_FILENAME;
+}
+
+void LauncherFolderModel::save()
+{
+    mSaveTimer.stop();
+    QFile file(configFile());
+    if (!file.open(QIODevice::WriteOnly)) {
+        qWarning() << "Failed to save apps menu" << configFile();
+        return;
+    }
+
+    QXmlStreamWriter xml(&file);
+    xml.setAutoFormatting(true);
+    xml.writeStartDocument();
+    saveFolder(xml, this);
+    xml.writeEndDocument();
+}
+
+void LauncherFolderModel::saveFolder(QXmlStreamWriter &xml, LauncherFolderItem *folder)
+{
+    xml.writeStartElement("Menu");
+    xml.writeTextElement("Name", folder->title());
+    if (!folder->directoryFile().isEmpty())
+        xml.writeTextElement("Directory", folder->directoryFile());
+
+    for (int i = 0; i < folder->rowCount(); ++i) {
+        LauncherItem *item = qobject_cast<LauncherItem*>(folder->get(i));
+        if (item) {
+            if (!item->isTemporary())
+                xml.writeTextElement("Filename", item->filename());
+        } else if (LauncherFolderItem *subFolder = qobject_cast<LauncherFolderItem*>(folder->get(i))) {
+            saveFolder(xml, subFolder);
+        }
+    }
+    xml.writeEndElement();
+}
+
+void LauncherFolderModel::load()
+{
+    QStack<LauncherFolderItem*> menus;
+    QString textData;
+
+    QFile file(configFile());
+    if (!file.open(QIODevice::ReadOnly)) {
+        // We haven't saved a folder model yet - import all apps.
+        import();
+        return;
+    }
+
+    QVector<bool> loadedItems(mLauncherModel->itemCount());
+    loadedItems.fill(false);
+    int loadedCount = 0;
+
+    QXmlStreamReader xml(&file);
+    while (!xml.atEnd()) {
+        xml.readNext();
+        if (xml.isStartElement()) {
+            if (xml.name() == QLatin1String("Menu")) {
+                LauncherFolderItem *folder = 0;
+                if (menus.isEmpty())
+                    folder = this;
+                else
+                    folder = new LauncherFolderItem(this);
+                if (!menus.isEmpty()) {
+                    folder->setParentFolder(menus.top());
+                    menus.top()->addItem(folder);
+                }
+                menus.push(folder);
+            }
+        } else if (xml.isEndElement()) {
+            if (xml.name() == QLatin1String("Menu")) {
+                menus.pop();
+            } else if (xml.name() == QLatin1String("Name")) {
+                if (!menus.isEmpty()) {
+                    menus.top()->setTitle(textData);
+                }
+            } else if (xml.name() == QLatin1String("Directory")) {
+                if (!menus.isEmpty()) {
+                    LauncherFolderItem *folder = menus.top();
+                    folder->loadDirectoryFile(textData);
+                }
+            } else if (xml.name() == QLatin1String("Filename")) {
+                if (!menus.isEmpty()) {
+                    int idx = mLauncherModel->indexInModel(textData);
+                    if (idx >= 0) {
+                        loadedItems[idx] = true;
+                        LauncherItem *item = qobject_cast<LauncherItem*>(mLauncherModel->get(idx));
+                        if (item) {
+                            loadedCount++;
+                            LauncherFolderItem *folder = menus.top();
+                            folder->addItem(item);
+                        }
+                    }
+                }
+            }
+            textData.clear();
+        } else if (xml.isCharacters()) {
+            textData = xml.text().toString();
+        }
+    }
+
+    for (int i = 0; i < loadedItems.count(); ++i) {
+        if (!loadedItems.at(i)) {
+            addItem(mLauncherModel->get(i));
+        }
+    }
+}
diff --git a/src/components/launcherfoldermodel.h b/src/components/launcherfoldermodel.h
new file mode 100644
index 00000000..49a3d95a
--- /dev/null
+++ b/src/components/launcherfoldermodel.h
@@ -0,0 +1,133 @@
+// This file is part of lipstick, a QML desktop library
+//
+// Copyright (c) 2014 Jolla Ltd.
+// Contact: Martin Jones <martin.jones@jolla.com>
+//
+// This library is free software; you can redistribute it and/or
+// modify it under the terms of the GNU Lesser General Public
+// License version 2.1 as published by the Free Software Foundation
+// and appearing in the file LICENSE.LGPL included in the packaging
+// of this file.
+//
+// This code is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+// GNU Lesser General Public License for more details.
+
+#ifndef LAUNCHERFOLDERMODEL_H
+#define LAUNCHERFOLDERMODEL_H
+
+#include <QObject>
+#include <QStringList>
+#include <QPointer>
+#include <QSharedPointer>
+#include <QTimer>
+#include "qobjectlistmodel.h"
+#include "launchermodel.h"
+#include "lipstickglobal.h"
+
+class LauncherModel;
+class QXmlStreamWriter;
+class MDesktopEntry;
+
+class LIPSTICK_EXPORT LauncherFolderItem : public QObjectListModel
+{
+    Q_OBJECT
+    Q_PROPERTY(LauncherModel::ItemType type READ type CONSTANT)
+    Q_PROPERTY(QString title READ title WRITE setTitle NOTIFY titleChanged)
+    Q_PROPERTY(QString iconId READ iconId WRITE setIconId NOTIFY iconIdChanged)
+    Q_PROPERTY(bool isUpdating READ isUpdating NOTIFY isUpdatingChanged)
+    Q_PROPERTY(int updatingProgress READ updatingProgress NOTIFY updatingProgressChanged)
+    Q_PROPERTY(LauncherFolderItem *parentFolder READ parentFolder NOTIFY parentFolderChanged)
+
+public:
+    LauncherFolderItem(QObject *parent = 0);
+
+    LauncherModel::ItemType type() const;
+
+    const QString &title() const;
+    void setTitle(const QString &name);
+
+    const QString &iconId() const;
+    void setIconId(const QString &icon);
+
+    bool isUpdating() const;
+    int updatingProgress() const;
+
+    LauncherFolderItem *parentFolder() const;
+    void setParentFolder(LauncherFolderItem *parent);
+
+    Q_INVOKABLE LauncherFolderItem *createFolder(int index, const QString &name);
+    Q_INVOKABLE void destroyFolder();
+
+    LauncherFolderItem *findContainer(QObject *item);
+
+    QString directoryFile() const;
+    void loadDirectoryFile(const QString &filename);
+    void saveDirectoryFile();
+
+signals:
+    void titleChanged();
+    void iconIdChanged();
+    void isUpdatingChanged();
+    void updatingProgressChanged();
+    void parentFolderChanged();
+    void directoryFileChanged();
+    void saveNeeded();
+
+private slots:
+    void handleAdded(QObject*);
+    void handleRemoved(QObject*);
+
+private:
+    QString mTitle;
+    QString mIconId;
+    QString mDirectoryFile;
+    QSharedPointer<MDesktopEntry> mDesktopEntry;
+    QPointer<LauncherFolderItem> mParentFolder;
+};
+
+
+class LIPSTICK_EXPORT LauncherFolderModel : public LauncherFolderItem
+{
+    Q_OBJECT
+    Q_PROPERTY(QStringList directories READ directories WRITE setDirectories NOTIFY directoriesChanged)
+    Q_PROPERTY(QStringList iconDirectories READ iconDirectories WRITE setIconDirectories NOTIFY iconDirectoriesChanged)
+
+public:
+    LauncherFolderModel(QObject *parent = 0);
+
+    QStringList directories() const;
+    void setDirectories(QStringList);
+
+    QStringList iconDirectories() const;
+    void setIconDirectories(QStringList);
+
+    Q_INVOKABLE bool moveToFolder(QObject *item, LauncherFolderItem *folder, int index = -1);
+
+    void import();
+
+    static QString configFile();
+
+public slots:
+    void load();
+    void save();
+
+signals:
+    void directoriesChanged();
+    void iconDirectoriesChanged();
+
+private slots:
+    void scheduleSave();
+    void appRemoved(QObject *item);
+    void appAdded(QObject *item);
+
+private:
+    void saveFolder(QXmlStreamWriter &xml, LauncherFolderItem *folder);
+    static QString configDir();
+
+    LauncherModel *mLauncherModel;
+    QTimer mSaveTimer;
+};
+
+#endif
diff --git a/src/components/launcheritem.cpp b/src/components/launcheritem.cpp
index fc0d6fd0..b45a5471 100644
--- a/src/components/launcheritem.cpp
+++ b/src/components/launcheritem.cpp
@@ -70,6 +70,11 @@ LauncherItem::~LauncherItem()
 {
 }
 
+LauncherModel::ItemType LauncherItem::type() const
+{
+    return LauncherModel::Application;
+}
+
 void LauncherItem::setFilePath(const QString &filePath)
 {
     if (!filePath.isEmpty() && QFile(filePath).exists()) {
@@ -86,6 +91,16 @@ QString LauncherItem::filePath() const
     return !_desktopEntry.isNull() ? _desktopEntry->fileName() : QString();
 }
 
+QString LauncherItem::filename() const
+{
+    QString filename = filePath();
+    int sep = filename.lastIndexOf('/');
+    if (sep == -1)
+        return QString();
+
+    return filename.mid(sep+1);
+}
+
 QString LauncherItem::exec() const
 {
     return !_desktopEntry.isNull() ? _desktopEntry->exec() : QString();
diff --git a/src/components/launcheritem.h b/src/components/launcheritem.h
index 3a599e61..e3091093 100644
--- a/src/components/launcheritem.h
+++ b/src/components/launcheritem.h
@@ -30,6 +30,7 @@
 #define LAUNCHER_DEBUG(things)
 #endif
 
+#include "launchermodel.h"
 #include "lipstickglobal.h"
 
 class MDesktopEntry;
@@ -39,6 +40,7 @@ class LIPSTICK_EXPORT LauncherItem : public QObject
     Q_OBJECT
     Q_DISABLE_COPY(LauncherItem)
 
+    Q_PROPERTY(LauncherModel::ItemType type READ type CONSTANT)
     Q_PROPERTY(QString filePath READ filePath WRITE setFilePath NOTIFY itemChanged)
     Q_PROPERTY(QString exec READ exec NOTIFY itemChanged)
     Q_PROPERTY(QString title READ title NOTIFY itemChanged)
@@ -73,8 +75,10 @@ public slots:
             const QString &iconPath, const QString &desktopFile, QObject *parent);
     virtual ~LauncherItem();
 
+    LauncherModel::ItemType type() const;
     void setFilePath(const QString &filePath);
     QString filePath() const;
+    QString filename() const;
     QString exec() const;
     QString title() const;
     QString entryType() const;
diff --git a/src/components/launchermodel.cpp b/src/components/launchermodel.cpp
index 166092d2..b2142362 100644
--- a/src/components/launchermodel.cpp
+++ b/src/components/launchermodel.cpp
@@ -21,6 +21,7 @@
 #include <QFile>
 #include <QSettings>
 
+#include "launcheritem.h"
 #include "launchermodel.h"
 
 
@@ -514,14 +515,34 @@ void LauncherModel::savePositions()
     _fileSystemWatcher.addPath(_launcherSettings.fileName());
 }
 
-LauncherItem *LauncherModel::itemInModel(const QString &path)
+int LauncherModel::findItem(const QString &path, LauncherItem **item)
 {
-    foreach (LauncherItem *item, *getList<LauncherItem>()) {
-        if (item->filePath() == path) {
-            return item;
+    QList<LauncherItem*> *list = getList<LauncherItem>();
+    for (int i = 0; i < list->count(); ++i) {
+        LauncherItem *listItem = list->at(i);
+        if (listItem->filePath() == path || listItem->filename() == path) {
+            if (item)
+                *item = listItem;
+            return i;
         }
     }
-    return 0;
+
+    if (item)
+        *item = 0;
+
+    return -1;
+}
+
+LauncherItem *LauncherModel::itemInModel(const QString &path)
+{
+    LauncherItem *result = 0;
+    (void)findItem(path, &result);
+    return result;
+}
+
+int LauncherModel::indexInModel(const QString &path)
+{
+    return findItem(path, 0);
 }
 
 LauncherItem *LauncherModel::packageInModel(const QString &packageName)
diff --git a/src/components/launchermodel.h b/src/components/launchermodel.h
index dd7345cf..b06e6c62 100644
--- a/src/components/launchermodel.h
+++ b/src/components/launchermodel.h
@@ -23,12 +23,12 @@
 #include <QDBusServiceWatcher>
 #include <QMap>
 
-#include "launcheritem.h"
 #include "qobjectlistmodel.h"
 #include "lipstickglobal.h"
 #include "launchermonitor.h"
 #include "launcherdbus.h"
 
+class LauncherItem;
 
 class LIPSTICK_EXPORT LauncherModel : public QObjectListModel
 {
@@ -38,6 +38,8 @@ class LIPSTICK_EXPORT LauncherModel : public QObjectListModel
     Q_PROPERTY(QStringList directories READ directories WRITE setDirectories NOTIFY directoriesChanged)
     Q_PROPERTY(QStringList iconDirectories READ iconDirectories WRITE setIconDirectories NOTIFY iconDirectoriesChanged)
 
+    Q_ENUMS(ItemType)
+
     QFileSystemWatcher _fileSystemWatcher;
     QSettings _launcherSettings;
     QSettings _globalSettings;
@@ -57,6 +59,11 @@ private slots:
     explicit LauncherModel(QObject *parent = 0);
     virtual ~LauncherModel();
 
+    enum ItemType {
+        Application,
+        Folder
+    };
+
     QStringList directories() const;
     void setDirectories(QStringList);
 
@@ -69,6 +76,8 @@ private slots:
     void updatingFinished(const QString &packageName, const QString &serviceName);
 
     void requestLaunch(const QString &packageName);
+    LauncherItem *itemInModel(const QString &path);
+    int indexInModel(const QString &path);
 
 public slots:
     void savePositions();
@@ -81,7 +90,7 @@ public slots:
 private:
     void reorderItems(const QMap<int, LauncherItem *> &itemsWithPositions);
     void loadPositions();
-    LauncherItem *itemInModel(const QString &path);
+    int findItem(const QString &path, LauncherItem **item);
     LauncherItem *packageInModel(const QString &packageName);
     QVariant launcherPos(const QString &path);
     LauncherItem *addItemIfValid(const QString &path, QMap<int, LauncherItem *> &itemsWithPositions);
diff --git a/src/src.pro b/src/src.pro
index aa53a00a..70d5e571 100644
--- a/src/src.pro
+++ b/src/src.pro
@@ -37,6 +37,7 @@ PUBLICHEADERS += \
     components/launcherwatchermodel.h \
     components/launchermonitor.h \
     components/launcherdbus.h \
+    components/launcherfoldermodel.h \
     notifications/notificationmanager.h \
     notifications/lipsticknotification.h \
     notifications/notificationlistmodel.h \
@@ -84,6 +85,7 @@ SOURCES += \
     components/launcherwatchermodel.cpp \
     components/launchermonitor.cpp \
     components/launcherdbus.cpp \
+    components/launcherfoldermodel.cpp \
     notifications/notificationmanager.cpp \
     notifications/notificationmanageradaptor.cpp \
     notifications/lipsticknotification.cpp \
diff --git a/src/utilities/qobjectlistmodel.cpp b/src/utilities/qobjectlistmodel.cpp
index a3c0e70a..c8a3eed2 100644
--- a/src/utilities/qobjectlistmodel.cpp
+++ b/src/utilities/qobjectlistmodel.cpp
@@ -106,6 +106,7 @@ void QObjectListModel::removeItem(QObject *item)
         _list->removeAt(index);
         disconnect(item, SIGNAL(destroyed()), this, SLOT(removeDestroyedItem()));
         endRemoveRows();
+        emit itemRemoved(item);
         emit itemCountChanged();
     }
 }
@@ -114,8 +115,9 @@ void QObjectListModel::removeItem(int index)
 {
     beginRemoveRows(QModelIndex(), index, index);
     disconnect(((QObject*)_list->at(index)), SIGNAL(destroyed()), this, SLOT(removeDestroyedItem()));
-    _list->removeAt(index);
+    QObject *item = _list->takeAt(index);
     endRemoveRows();
+    emit itemRemoved(item);
     emit itemCountChanged();
 }
 
diff --git a/src/utilities/qobjectlistmodel.h b/src/utilities/qobjectlistmodel.h
index 2c422217..af530081 100644
--- a/src/utilities/qobjectlistmodel.h
+++ b/src/utilities/qobjectlistmodel.h
@@ -43,7 +43,7 @@ class LIPSTICK_EXPORT QObjectListModel : public QAbstractListModel
     void removeItem(QObject *item);
     void removeItem(int index);
     Q_INVOKABLE QObject* get(int index);
-    int indexOf(QObject *obj) const;
+    Q_INVOKABLE int indexOf(QObject *obj) const;
 
     template<typename T>
     QList<T*> *getList();
@@ -58,6 +58,7 @@ private slots:
 
 signals:
     void itemAdded(QObject *item);
+    void itemRemoved(QObject *item);
     void itemCountChanged();
 };
 
diff --git a/tests/ut_launchermodel/ut_launchermodel.cpp b/tests/ut_launchermodel/ut_launchermodel.cpp
index a8d9ab28..550e4e6b 100644
--- a/tests/ut_launchermodel/ut_launchermodel.cpp
+++ b/tests/ut_launchermodel/ut_launchermodel.cpp
@@ -15,6 +15,7 @@
 
 #include <QtTest/QtTest>
 
+#include "launcheritem.h"
 #include "launchermodel.h"
 #include "ut_launchermodel.h"
 #include "mdesktopentry.h"