diff --git a/platform/diff-impl/src/com/intellij/diff/util/DiffUtil.java b/platform/diff-impl/src/com/intellij/diff/util/DiffUtil.java
index 29d554ccf3d8..a54a57ede2de 100644
--- a/platform/diff-impl/src/com/intellij/diff/util/DiffUtil.java
+++ b/platform/diff-impl/src/com/intellij/diff/util/DiffUtil.java
@@ -157,7 +157,7 @@ public class DiffUtil {
 
     if (enableFolding) {
       editor.getSettings().setFoldingOutlineShown(true);
-      editor.getSettings().setCodeFoldingEnabled(false);
+      editor.getSettings().setAutoCodeFoldingEnabled(false);
     }
     else {
       editor.getSettings().setFoldingOutlineShown(false);
diff --git a/platform/editor-ui-api/src/com/intellij/openapi/editor/EditorSettings.java b/platform/editor-ui-api/src/com/intellij/openapi/editor/EditorSettings.java
index 68cb3b57b641..56e6d9a3489f 100644
--- a/platform/editor-ui-api/src/com/intellij/openapi/editor/EditorSettings.java
+++ b/platform/editor-ui-api/src/com/intellij/openapi/editor/EditorSettings.java
@@ -54,8 +54,8 @@ public interface EditorSettings {
   boolean isFoldingOutlineShown();
   void setFoldingOutlineShown(boolean val);
 
-  boolean isCodeFoldingEnabled();
-  void setCodeFoldingEnabled(boolean val);
+  boolean isAutoCodeFoldingEnabled();
+  void setAutoCodeFoldingEnabled(boolean val);
 
   boolean isUseTabCharacter(Project project);
   void setUseTabCharacter(boolean useTabCharacter);
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/folding/impl/CodeFoldingManagerImpl.java b/platform/lang-impl/src/com/intellij/codeInsight/folding/impl/CodeFoldingManagerImpl.java
index eaaea3c7570e..7a3695f46fcb 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/folding/impl/CodeFoldingManagerImpl.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/folding/impl/CodeFoldingManagerImpl.java
@@ -248,7 +248,6 @@ public class CodeFoldingManagerImpl extends CodeFoldingManager implements Projec
   }
 
   private void initFolding(@NotNull final Editor editor) {
-    if (!editor.getSettings().isCodeFoldingEnabled()) return;
     final Document document = editor.getDocument();
     editor.getFoldingModel().runBatchFoldingOperation(new Runnable() {
       @Override
@@ -289,6 +288,7 @@ public class CodeFoldingManagerImpl extends CodeFoldingManager implements Projec
   }
 
   public void updateFoldRegions(Editor editor, boolean quick) {
+    if (!editor.getSettings().isAutoCodeFoldingEnabled()) return;
     PsiDocumentManager.getInstance(myProject).commitDocument(editor.getDocument());
     Runnable runnable = updateFoldRegions(editor, false, quick);
     if (runnable != null) {
@@ -322,6 +322,7 @@ public class CodeFoldingManagerImpl extends CodeFoldingManager implements Projec
   @Override
   @Nullable
   public Runnable updateFoldRegionsAsync(@NotNull final Editor editor, final boolean firstTime) {
+    if (!editor.getSettings().isAutoCodeFoldingEnabled()) return null;
     final Runnable runnable = updateFoldRegions(editor, firstTime, false);
     return new Runnable() {
       @Override
@@ -338,7 +339,6 @@ public class CodeFoldingManagerImpl extends CodeFoldingManager implements Projec
 
   @Nullable
   private Runnable updateFoldRegions(@NotNull Editor editor, boolean applyDefaultState, boolean quick) {
-    if (!editor.getSettings().isCodeFoldingEnabled()) return null;
     PsiFile file = PsiDocumentManager.getInstance(myProject).getPsiFile(editor.getDocument());
     if (file != null) {
       return FoldingUpdate.updateFoldRegions(editor, file, applyDefaultState, quick);
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/SettingsImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/SettingsImpl.java
index 6264fa486a7c..ed14e128a804 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/SettingsImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/SettingsImpl.java
@@ -51,7 +51,7 @@ public class SettingsImpl implements EditorSettings {
   private int                     myLineCursorWidth               = Registry.intValue("editor.caret.width", 2);
   private boolean                 myLineMarkerAreaShown           = true;
   private boolean                 myAllowSingleLogicalLineFolding = false;
-  private boolean                 myCodeFoldingEnabled            = true;
+  private boolean myAutoCodeFoldingEnabled = true;
 
   // These comes from CodeStyleSettings
   private Integer myTabSize         = null;
@@ -281,14 +281,13 @@ public class SettingsImpl implements EditorSettings {
   }
 
   @Override
-  public boolean isCodeFoldingEnabled() {
-    return myCodeFoldingEnabled;
+  public boolean isAutoCodeFoldingEnabled() {
+    return myAutoCodeFoldingEnabled;
   }
 
   @Override
-  public void setCodeFoldingEnabled(boolean val) {
-    myCodeFoldingEnabled = val;
-    fireEditorRefresh();
+  public void setAutoCodeFoldingEnabled(boolean val) {
+    myAutoCodeFoldingEnabled = val;
   }
 
   @Override