diff --git a/platform/icons/src/vcs/resetStrip.png b/platform/icons/src/vcs/resetStrip.png
new file mode 100644
index 000000000000..b28c04eb4303
Binary files /dev/null and b/platform/icons/src/vcs/resetStrip.png differ
diff --git a/platform/icons/src/vcs/stripDown.png b/platform/icons/src/vcs/stripDown.png
new file mode 100644
index 000000000000..02e5c67f31b9
Binary files /dev/null and b/platform/icons/src/vcs/stripDown.png differ
diff --git a/platform/icons/src/vcs/stripNull.png b/platform/icons/src/vcs/stripNull.png
new file mode 100644
index 000000000000..c9a2726a40be
Binary files /dev/null and b/platform/icons/src/vcs/stripNull.png differ
diff --git a/platform/icons/src/vcs/stripUp.png b/platform/icons/src/vcs/stripUp.png
new file mode 100644
index 000000000000..987afe62409c
Binary files /dev/null and b/platform/icons/src/vcs/stripUp.png differ
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/ApplyPatchDifferentiatedDialog.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/ApplyPatchDifferentiatedDialog.java
index 70a90cc7a7ca..f3b82f282967 100644
--- a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/ApplyPatchDifferentiatedDialog.java
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/ApplyPatchDifferentiatedDialog.java
@@ -372,7 +372,12 @@ public class ApplyPatchDifferentiatedDialog extends DialogWrapper {
       final MyShowDiff diffAction = new MyShowDiff();
       diffAction.registerCustomShortcutSet(CommonShortcuts.getDiff(), myCenterPanel);
       group.add(diffAction);
-      
+
+      group.add(new StripUp());
+      group.add(new StripDown());
+      group.add(new ResetStrip());
+      group.add(new ZeroStrip());
+
       final ActionToolbar toolbar = ActionManager.getInstance().createActionToolbar("APPLY_PATCH", group, true);
       myCenterPanel.add(toolbar.getComponent(), gb);
 
@@ -488,11 +493,22 @@ public class ApplyPatchDifferentiatedDialog extends DialogWrapper {
   }
 
   private void updateTree(boolean doInitCheck) {
+    final List<FilePatchInProgress> patchesToSelect = changes2patches(myChangesTreeList.getSelectedChanges());
     final List<FilePatchInProgress.PatchChange> changes = getAllChanges();
     final Collection<FilePatchInProgress.PatchChange> included = getIncluded(doInitCheck, changes);
+
     myChangesTreeList.setChangesToDisplay(changes);
     myChangesTreeList.setIncludedChanges(included);
     myChangesTreeList.repaint();
+    if ((! doInitCheck) && patchesToSelect != null) {
+      final List<FilePatchInProgress.PatchChange> toSelect = new ArrayList<FilePatchInProgress.PatchChange>(patchesToSelect.size());
+      for (FilePatchInProgress.PatchChange change : changes) {
+        if (patchesToSelect.contains(change.getPatchInProgress())) {
+          toSelect.add(change);
+        }
+      }
+      myChangesTreeList.select(toSelect);
+    }
 
     myContainBasedChanges = false;
     for (FilePatchInProgress patch : myPatches) {
@@ -540,16 +556,15 @@ public class ApplyPatchDifferentiatedDialog extends DialogWrapper {
     } else {
       // todo maybe written pretty
       final Collection<FilePatchInProgress.PatchChange> includedNow = myChangesTreeList.getIncludedChanges();
-      final Set<Pair<String, String>> toBeIncluded = new HashSet<Pair<String, String>>();
+      final Set<FilePatchInProgress> toBeIncluded = new HashSet<FilePatchInProgress>();
       for (FilePatchInProgress.PatchChange change : includedNow) {
         final FilePatchInProgress patch = change.getPatchInProgress();
-        toBeIncluded.add(new Pair<String, String>(patch.getPatch().getBeforeName(), patch.getPatch().getAfterName()));
+        toBeIncluded.add(patch);
       }
       for (FilePatchInProgress.PatchChange change : changes) {
         final FilePatchInProgress patch = change.getPatchInProgress();
-        final Pair<String, String> pair = new Pair<String, String>(patch.getPatch().getBeforeName(), patch.getPatch().getAfterName());
         acceptChange(totalTrinity, change);
-        if (toBeIncluded.contains(pair) && patch.baseExistsOrAdded()) {
+        if (toBeIncluded.contains(patch) && patch.baseExistsOrAdded()) {
           acceptChange(includedTrinity, change);
           included.add(change);
         }
@@ -581,6 +596,14 @@ public class ApplyPatchDifferentiatedDialog extends DialogWrapper {
     }
   }
 
+  private List<FilePatchInProgress> changes2patches(final List<FilePatchInProgress.PatchChange> selectedChanges) {
+    return ObjectsConvertor.convert(selectedChanges, new Convertor<FilePatchInProgress.PatchChange, FilePatchInProgress>() {
+      public FilePatchInProgress convert(FilePatchInProgress.PatchChange o) {
+        return o.getPatchInProgress();
+      }
+    });
+  }
+
   private class MapPopup extends BaseListPopupStep<VirtualFile> {
     private final Runnable myNewBaseSelector;
 
@@ -759,6 +782,96 @@ public class ApplyPatchDifferentiatedDialog extends DialogWrapper {
     myCallback.consume(this);
   }
 
+  private class ZeroStrip extends AnAction {
+    private ZeroStrip() {
+      super("Remove Directories", "Remove Directories", IconLoader.getIcon("/vcs/stripNull.png"));
+    }
+
+    @Override
+    public void actionPerformed(AnActionEvent e) {
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        change.getPatchInProgress().setZero();
+      }
+      updateTree(false);
+    }
+  }
+
+  private class StripDown extends AnAction {
+    private StripDown() {
+      super("Restore Directory", "Restore Directory", IconLoader.getIcon("/vcs/stripDown.png"));
+    }
+
+    @Override
+    public void update(AnActionEvent e) {
+      e.getPresentation().setEnabled(isEnabled());
+    }
+
+    @Override
+    public void actionPerformed(AnActionEvent e) {
+      if (! isEnabled()) return;
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        change.getPatchInProgress().down();
+      }
+      updateTree(false);
+    }
+
+    private boolean isEnabled() {
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      if (selectedChanges.isEmpty()) return false;
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        if (! change.getPatchInProgress().canDown()) return false;
+      }
+      return true;
+    }
+  }
+
+  private class StripUp extends AnAction {
+    private StripUp() {
+      super("Strip Directory", "Strip Directory", IconLoader.getIcon("/vcs/stripUp.png"));
+    }
+
+    @Override
+    public void update(AnActionEvent e) {
+      e.getPresentation().setEnabled(isEnabled());
+    }
+
+    @Override
+    public void actionPerformed(AnActionEvent e) {
+      if (! isEnabled()) return;
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        change.getPatchInProgress().up();
+      }
+      updateTree(false);
+    }
+
+    private boolean isEnabled() {
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      if (selectedChanges.isEmpty()) return false;
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        if (! change.getPatchInProgress().canUp()) return false;
+      }
+      return true;
+    }
+  }
+
+  private class ResetStrip extends AnAction {
+    private ResetStrip() {
+      super("Reset Directories", "Reset Directories", IconLoader.getIcon("/vcs/resetStrip.png"));
+    }
+
+    @Override
+    public void actionPerformed(AnActionEvent e) {
+      final List<FilePatchInProgress.PatchChange> selectedChanges = myChangesTreeList.getSelectedChanges();
+      for (FilePatchInProgress.PatchChange change : selectedChanges) {
+        change.getPatchInProgress().reset();
+      }
+      updateTree(false);
+    }
+  }
+
   private class MyShowDiff extends AnAction {
     private MyShowDiff() {
       super("Show Diff", "Show Diff", IconLoader.getIcon("/actions/diff.png"));
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/FilePatchInProgress.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/FilePatchInProgress.java
index 70f7f195131f..4f0ac8341799 100644
--- a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/FilePatchInProgress.java
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/FilePatchInProgress.java
@@ -19,9 +19,13 @@ import com.intellij.openapi.actionSystem.AnAction;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.diff.DiffRequestFactory;
 import com.intellij.openapi.diff.MergeRequest;
+import com.intellij.openapi.diff.impl.patch.ApplyPatchException;
+import com.intellij.openapi.diff.impl.patch.ApplyPatchStatus;
+import com.intellij.openapi.diff.impl.patch.FilePatch;
 import com.intellij.openapi.diff.impl.patch.TextFilePatch;
 import com.intellij.openapi.diff.impl.patch.formove.PathMerger;
 import com.intellij.openapi.project.Project;
+import com.intellij.openapi.util.Comparing;
 import com.intellij.openapi.util.Pair;
 import com.intellij.openapi.vcs.*;
 import com.intellij.openapi.vcs.changes.Change;
@@ -37,13 +41,12 @@ import com.intellij.vcsUtil.VcsUtil;
 import org.jetbrains.annotations.Nullable;
 
 import java.io.File;
-import java.util.ArrayList;
-import java.util.Collection;
-import java.util.Collections;
-import java.util.List;
+import java.io.IOException;
+import java.util.*;
 
-public class FilePatchInProgress {
+public class FilePatchInProgress implements Strippable {
   private final TextFilePatch myPatch;
+  private final PatchStrippable myStrippable;
   private final FilePatchStatus myStatus;
 
   private VirtualFile myBase;
@@ -59,6 +62,7 @@ public class FilePatchInProgress {
 
   public FilePatchInProgress(final TextFilePatch patch, final Collection<VirtualFile> autoBases, final VirtualFile baseDir) {
     myPatch = patch;
+    myStrippable = new PatchStrippable(patch);
     if (autoBases != null) {
       myAutoBases = new ArrayList<VirtualFile>();
       final String path = myPatch.getBeforeName() == null ? myPatch.getAfterName() : myPatch.getBeforeName();
@@ -270,4 +274,229 @@ public class FilePatchInProgress {
   public Pair<String, String> getKey() {
     return new Pair<String, String>(myPatch.getBeforeName(), myPatch.getAfterName());
   }
+
+  private void refresh() {
+    myStrippable.applyBackToPatch(myPatch);
+    setNewBase(myBase);
+  }
+
+  public void reset() {
+    myStrippable.reset();
+    refresh();
+  }
+
+  public boolean canDown() {
+    return myStrippable.canDown();
+  }
+
+  public boolean canUp() {
+    return myStrippable.canUp();
+  }
+
+  public void up() {
+    myStrippable.up();
+    refresh();
+  }
+
+  public void down() {
+    myStrippable.down();
+    refresh();
+  }
+
+  public void setZero() {
+    myStrippable.setZero();
+    refresh();
+  }
+
+  public String getCurrentPath() {
+    return myStrippable.getCurrentPath();
+  }
+
+  private static class StripCapablePath implements Strippable {
+    private final int myStripMax;
+    private int myCurrentStrip;
+    private final StringBuilder mySourcePath;
+    private final int[] myParts;
+
+    private StripCapablePath(final String path) {
+      final String corrected = path.trim().replace('\\', '/');
+      mySourcePath = new StringBuilder(corrected);
+      final String[] steps = corrected.split("/");
+      myStripMax = steps.length - 1;
+      myParts = new int[steps.length];
+      int pos = 0;
+      for (int i = 0; i < steps.length; i++) {
+        final String step = steps[i];
+        myParts[i] = pos;
+        pos += step.length() + 1; // plus 1 for separator
+      }
+      myCurrentStrip = 0;
+    }
+
+    public void reset() {
+      myCurrentStrip = 0;
+    }
+
+    // down - restore dirs...
+    public boolean canDown() {
+      return myCurrentStrip > 0;
+    }
+
+    public boolean canUp() {
+      return myCurrentStrip < myStripMax;
+    }
+
+    public void up() {
+      if (canUp()) {
+        ++ myCurrentStrip;
+      }
+    }
+
+    public void down() {
+      if (canDown()) {
+        -- myCurrentStrip;
+      }
+    }
+
+    public void setZero() {
+      myCurrentStrip = myStripMax;
+    }
+
+    public String getCurrentPath() {
+      return mySourcePath.substring(myParts[myCurrentStrip]);
+    }
+
+    @Override
+    public boolean equals(Object o) {
+      if (this == o) return true;
+      if (o == null || getClass() != o.getClass()) return false;
+
+      StripCapablePath that = (StripCapablePath)o;
+
+      if (!mySourcePath.equals(that.mySourcePath)) return false;
+
+      return true;
+    }
+
+    @Override
+    public int hashCode() {
+      return mySourcePath.hashCode();
+    }
+  }
+
+  private static class PatchStrippable implements Strippable {
+    private final Strippable[] myParts;
+    private final int myBeforeIdx;
+    private final int myAfterIdx;
+
+    private PatchStrippable(final FilePatch patch) {
+      final boolean onePath = patch.isDeletedFile() || patch.isNewFile() || Comparing.equal(patch.getAfterName(), patch.getBeforeName());
+      final int size = onePath ? 1 : 2;
+      myParts = new Strippable[size];
+
+      int cnt = 0;
+      if (patch.getAfterName() != null) {
+        myAfterIdx = 0;
+        myParts[cnt] = new StripCapablePath(patch.getAfterName());
+        ++ cnt;
+      } else {
+        myAfterIdx = -1;
+      }
+      if (cnt < size) {
+        myParts[cnt] = new StripCapablePath(patch.getBeforeName());
+        myBeforeIdx = cnt;
+      } else {
+        myBeforeIdx = 0;
+      }
+    }
+
+    public void reset() {
+      for (Strippable part : myParts) {
+        part.reset();
+      }
+    }
+
+    public boolean canDown() {
+      boolean result = true;
+      for (Strippable part : myParts) {
+        result &= part.canDown();
+      }
+      return result;
+    }
+
+    public boolean canUp() {
+      boolean result = true;
+      for (Strippable part : myParts) {
+        result &= part.canUp();
+      }
+      return result;
+    }
+
+    public void up() {
+      for (Strippable part : myParts) {
+        part.up();
+      }
+    }
+
+    public void down() {
+      for (Strippable part : myParts) {
+        part.down();
+      }
+    }
+
+    public void setZero() {
+      for (Strippable part : myParts) {
+        part.setZero();
+      }
+    }
+
+    public String getCurrentPath() {
+      return myParts[0].getCurrentPath();
+    }
+
+    public void applyBackToPatch(final FilePatch patch) {
+      final String beforeName = patch.getBeforeName();
+      if (beforeName != null) {
+        patch.setBeforeName(myParts[myBeforeIdx].getCurrentPath());
+      }
+      final String afterName = patch.getAfterName();
+      if (afterName != null) {
+        patch.setAfterName(myParts[myAfterIdx].getCurrentPath());
+      }
+    }
+
+    @Override
+    public boolean equals(Object o) {
+      if (this == o) return true;
+      if (o == null || getClass() != o.getClass()) return false;
+
+      PatchStrippable that = (PatchStrippable)o;
+
+      if (!Arrays.equals(myParts, that.myParts)) return false;
+
+      return true;
+    }
+
+    @Override
+    public int hashCode() {
+      return Arrays.hashCode(myParts);
+    }
+  }
+
+  @Override
+  public boolean equals(Object o) {
+    if (this == o) return true;
+    if (o == null || getClass() != o.getClass()) return false;
+
+    FilePatchInProgress that = (FilePatchInProgress)o;
+
+    if (!myStrippable.equals(that.myStrippable)) return false;
+
+    return true;
+  }
+
+  @Override
+  public int hashCode() {
+    return myStrippable.hashCode();
+  }
 }
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/Strippable.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/Strippable.java
new file mode 100644
index 000000000000..9a8ef5895ca8
--- /dev/null
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/patch/Strippable.java
@@ -0,0 +1,32 @@
+/*
+ * Copyright 2000-2009 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.changes.patch;
+
+public interface Strippable {
+  void reset();// down - restore dirs...
+
+  boolean canDown();
+
+  boolean canUp();
+
+  void up();
+
+  void down();
+
+  void setZero();
+
+  String getCurrentPath();
+}
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/ui/ChangesTreeList.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/ui/ChangesTreeList.java
index 369838c98818..de27d74fb1fc 100644
--- a/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/ui/ChangesTreeList.java
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/changes/ui/ChangesTreeList.java
@@ -17,6 +17,7 @@ package com.intellij.openapi.vcs.changes.ui;
 
 import com.intellij.ide.util.PropertiesComponent;
 import com.intellij.openapi.actionSystem.*;
+import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.keymap.KeymapManager;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.EmptyRunnable;
@@ -41,9 +42,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
 import javax.swing.*;
-import javax.swing.tree.DefaultTreeModel;
-import javax.swing.tree.TreeCellRenderer;
-import javax.swing.tree.TreePath;
+import javax.swing.tree.*;
 import java.awt.*;
 import java.awt.event.*;
 import java.io.File;
@@ -205,8 +204,10 @@ public abstract class ChangesTreeList<T> extends JPanel {
   }
 
   public void setShowFlatten(final boolean showFlatten) {
+    final List<T> wasSelected = getSelectedChanges();
     myShowFlatten = showFlatten;
     myCards.show(this, myShowFlatten ? LIST_CARD : TREE_CARD);
+    select(wasSelected);
     if (myList.hasFocus() || myTree.hasFocus()) {
       SwingUtilities.invokeLater(new Runnable() {
         public void run() {
@@ -243,7 +244,7 @@ public abstract class ChangesTreeList<T> extends JPanel {
     final DefaultTreeModel model = buildTreeModel(changes, myChangeDecorator);
     myTree.setModel(model);
 
-    SwingUtilities.invokeLater(new Runnable() {
+    final Runnable runnable = new Runnable() {
       public void run() {
         if (myProject.isDisposed()) return;
         TreeUtil.expandAll(myTree);
@@ -256,7 +257,7 @@ public abstract class ChangesTreeList<T> extends JPanel {
               listSelection = count;
               break;
             }
-            count ++;
+            count++;
           }
 
           ChangesBrowserNode root = (ChangesBrowserNode)model.getRoot();
@@ -290,7 +291,12 @@ public abstract class ChangesTreeList<T> extends JPanel {
           }
         }
       }
-    });
+    };
+    if (ApplicationManager.getApplication().isDispatchThread()) {
+      runnable.run();
+    } else {
+      SwingUtilities.invokeLater(runnable);
+    }
   }
 
   protected abstract DefaultTreeModel buildTreeModel(final List<T> changes, final ChangeNodeDecorator changeNodeDecorator);
@@ -658,12 +664,49 @@ public abstract class ChangesTreeList<T> extends JPanel {
         }
       }
       else {
-        final int count = myTree.getRowCount();
-        if (count > 0) {
-          myTree.setSelectionInterval(0, count-1);
+        final int countTree = myTree.getRowCount();
+        if (countTree > 0) {
+          myTree.setSelectionInterval(0, countTree-1);
         }
       }
     }
   }
 
+  public void select(final List<T> changes) {
+    final DefaultTreeModel treeModel = (DefaultTreeModel) myTree.getModel();
+    final TreeNode root = (TreeNode) treeModel.getRoot();
+    final List<TreePath> treeSelection = new ArrayList<TreePath>(changes.size());
+    TreeUtil.traverse(root, new TreeUtil.Traverse() {
+      public boolean accept(Object node) {
+        final T change = (T) ((DefaultMutableTreeNode) node).getUserObject();
+        if (changes.contains(change)) {
+          treeSelection.add(new TreePath(((DefaultMutableTreeNode) node).getPath()));
+        }
+        return true;
+      }
+    });
+    myTree.setSelectionPaths(treeSelection.toArray(new TreePath[treeSelection.size()]));
+
+    // list
+    final ListModel model = myList.getModel();
+    final int size = model.getSize();
+    final List<Integer> listSelection = new ArrayList<Integer>(changes.size());
+    for (int i = 0; i < size; i++) {
+      final T el = (T) model.getElementAt(i);
+      if (changes.contains(el)) {
+        listSelection.add(i);
+      }
+    }
+    myList.setSelectedIndices(int2int(listSelection));
+  }
+
+  private static int[] int2int(List<Integer> treeSelection) {
+    final int[] toPass = new int[treeSelection.size()];
+    int i = 0;
+    for (Integer integer : treeSelection) {
+      toPass[i] = integer;
+      ++ i;
+    }
+    return toPass;
+  }
 }