diff --git a/platform/platform-api/src/com/intellij/ide/util/treeView/AbstractTreeUi.java b/platform/platform-api/src/com/intellij/ide/util/treeView/AbstractTreeUi.java
index 4e9222fdad7f..8304ebb43776 100644
--- a/platform/platform-api/src/com/intellij/ide/util/treeView/AbstractTreeUi.java
+++ b/platform/platform-api/src/com/intellij/ide/util/treeView/AbstractTreeUi.java
@@ -1136,6 +1136,9 @@ public class AbstractTreeUi {
             }
             else {
               notRequiredToUpdateChildren = alwaysPlus;
+              if (notRequiredToUpdateChildren && !wasExpanded && !myUnbuiltNodes.contains(node)) {
+                removeChildren(node);
+              }
             }
           }
 
@@ -4622,14 +4625,15 @@ public class AbstractTreeUi {
       }
     }
 
-    private void removeChildren(DefaultMutableTreeNode node) {
-      EnumerationCopy copy = new EnumerationCopy(node.children());
-      while (copy.hasMoreElements()) {
-        disposeNode((DefaultMutableTreeNode)copy.nextElement());
-      }
-      node.removeAllChildren();
-      myTreeModel.nodeStructureChanged(node);
+  }
+
+  private void removeChildren(DefaultMutableTreeNode node) {
+    EnumerationCopy copy = new EnumerationCopy(node.children());
+    while (copy.hasMoreElements()) {
+      disposeNode((DefaultMutableTreeNode)copy.nextElement());
     }
+    node.removeAllChildren();
+    myTreeModel.nodeStructureChanged(node);
   }
 
   private void maybeUpdateSubtreeToUpdate(final DefaultMutableTreeNode subtreeRoot) {
diff --git a/platform/platform-impl/testSrc/com/intellij/ide/util/treeView/TreeUiTest.java b/platform/platform-impl/testSrc/com/intellij/ide/util/treeView/TreeUiTest.java
index 07c3d0ebeb71..ae650fa892f4 100644
--- a/platform/platform-impl/testSrc/com/intellij/ide/util/treeView/TreeUiTest.java
+++ b/platform/platform-impl/testSrc/com/intellij/ide/util/treeView/TreeUiTest.java
@@ -5,6 +5,7 @@ import com.intellij.openapi.progress.ProcessCanceledException;
 import com.intellij.openapi.progress.ProgressIndicator;
 import com.intellij.openapi.progress.Progressive;
 import com.intellij.openapi.util.*;
+import com.intellij.ui.LoadingNode;
 import com.intellij.util.Time;
 import com.intellij.util.WaitFor;
 import com.intellij.util.ui.UIUtil;
@@ -2258,6 +2259,56 @@ public class TreeUiTest extends AbstractTreeBuilderTest {
     assertTree("-/\n" + " +com\n" + " -[jetbrains]\n" + "  -fabrique\n" + "   ide\n" + " +org\n" + " +xunit\n");
   }
 
+
+  public void testUpdateCollapsedBuiltNode() throws Exception {
+    buildStructure(myRoot, false);
+
+    myCom.removeAll();
+    myAlwaysShowPlus.add(new NodeElement("com"));
+
+    activate();
+
+    buildNode("/", false);
+    assertTree("-/\n" +
+               " +com\n" +
+               " +jetbrains\n" +
+               " +org\n" +
+               " +xunit\n");
+
+    final DefaultMutableTreeNode com = findNode("com", false);
+    assertEquals(1, com.getChildCount());
+    assertEquals(LoadingNode.getText(), com.getChildAt(0).toString());
+
+    expand(getPath("com"));
+    assertTree("-/\n" +
+               " com\n" +
+               " +jetbrains\n" +
+               " +org\n" +
+               " +xunit\n");
+
+
+    myCom.addChild(myIntellij);
+    updateFrom(new NodeElement("com"));
+    assertTree("-/\n" +
+               " +com\n" +
+               " +jetbrains\n" +
+               " +org\n" +
+               " +xunit\n");
+    assertEquals(1, com.getChildCount());
+    assertEquals("intellij", com.getChildAt(0).toString());
+
+
+    myCom.removeAll();
+    updateFrom(new NodeElement("com"));
+
+    expand(getPath("com"));
+    assertTree("-/\n" +
+               " com\n" +
+               " +jetbrains\n" +
+               " +org\n" +
+               " +xunit\n");
+  }
+
   public void testReleaseBuilderDuringGetChildren() throws Exception {
     assertReleaseDuringBuilding("getChildren", "fabrique", new Runnable() {
       @Override
@@ -2369,10 +2420,6 @@ public class TreeUiTest extends AbstractTreeBuilderTest {
       super(true, false);
     }
 
-    @Override
-    public void testBatchUpdate() throws Exception {
-      super.testBatchUpdate();
-    }
   }
 
   public static class BgLoadingSyncUpdate extends TreeUiTest {