diff --git a/platform/platform-impl/src/com/intellij/openapi/vfs/newvfs/persistent/PersistentFSImpl.java b/platform/platform-impl/src/com/intellij/openapi/vfs/newvfs/persistent/PersistentFSImpl.java
index df8f86f4f158..1ae50a5af3a7 100644
--- a/platform/platform-impl/src/com/intellij/openapi/vfs/newvfs/persistent/PersistentFSImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/vfs/newvfs/persistent/PersistentFSImpl.java
@@ -33,6 +33,7 @@ import com.intellij.openapi.vfs.newvfs.impl.VirtualFileSystemEntry;
 import com.intellij.util.ArrayUtil;
 import com.intellij.util.Function;
 import com.intellij.util.IncorrectOperationException;
+import com.intellij.util.SmartList;
 import com.intellij.util.containers.ConcurrentIntObjectMap;
 import com.intellij.util.containers.ContainerUtil;
 import com.intellij.util.containers.StripedLockIntObjectConcurrentHashMap;
@@ -762,12 +763,112 @@ public class PersistentFSImpl extends PersistentFS implements ApplicationCompone
 
     BulkFileListener publisher = myEventsBus.syncPublisher(VirtualFileManager.VFS_CHANGES);
     publisher.before(validated);
+
+    THashMap<VirtualFile, List<VFileEvent>> parentToChildrenEventsChanges = null;
     for (VFileEvent event : validated) {
-      applyEvent(event);
+      VirtualFile changedParent = null;
+      if (event instanceof VFileCreateEvent) {
+        changedParent = ((VFileCreateEvent)event).getParent();
+      } else if (event instanceof VFileDeleteEvent) {
+        changedParent = ((VFileDeleteEvent)event).getFile().getParent();
+      }
+
+      if (changedParent != null) {
+        if (parentToChildrenEventsChanges == null) parentToChildrenEventsChanges = new THashMap<VirtualFile, List<VFileEvent>>();
+        List<VFileEvent> parentChildrenChanges = parentToChildrenEventsChanges.get(changedParent);
+        if (parentChildrenChanges == null) {
+          parentToChildrenEventsChanges.put(changedParent, parentChildrenChanges = new SmartList<VFileEvent>());
+        }
+        parentChildrenChanges.add(event);
+      } else {
+        applyEvent(event);
+      }
     }
+
+    if (parentToChildrenEventsChanges != null) {
+      parentToChildrenEventsChanges.forEachEntry(new TObjectObjectProcedure<VirtualFile, List<VFileEvent>>() {
+        @Override
+        public boolean execute(VirtualFile parent, List<VFileEvent> childrenEvents) {
+          applyChildrenChangeEvents(parent, childrenEvents);
+          return true;
+        }
+      });
+      parentToChildrenEventsChanges.clear();
+    }
+
     publisher.after(validated);
   }
 
+  private void applyChildrenChangeEvents(VirtualFile parent, List<VFileEvent> events) {
+    final NewVirtualFileSystem delegate = getDelegate(parent);
+    List<VirtualFile> childrenToBeAdded = null;
+    TIntArrayList childrenIdsToBeRemoved = null;
+    List<VirtualFile> childrenToBeRemoved = null;
+
+    assert parent != null && parent != mySuperRoot;
+    final int parentId = getFileId(parent);
+    assert parentId != 0;
+    TIntHashSet childrenIds = new TIntHashSet(FSRecords.list(parentId));
+
+    for(VFileEvent event:events) {
+      if (event instanceof VFileCreateEvent) {
+        String name = ((VFileCreateEvent)event).getChildName();
+        final VirtualFile fake = new FakeVirtualFile(parent, name);
+        final FileAttributes attributes = delegate.getAttributes(fake);
+
+        if (attributes != null) {
+          final int childId = createAndFillRecord(delegate, fake, parentId, attributes);
+          if (childrenToBeAdded == null) {
+            childrenToBeAdded = new SmartList<VirtualFile>();
+          }
+
+          assert parent instanceof VirtualDirectoryImpl : parent;
+          final VirtualDirectoryImpl dir = (VirtualDirectoryImpl)parent;
+          VirtualFileSystemEntry child = dir.createChild(name, childId, dir.getFileSystem());
+          childrenToBeAdded.add(child);
+          childrenIds.add(childId);
+        }
+      } else if (event instanceof VFileDeleteEvent) {
+        VirtualFile file = ((VFileDeleteEvent)event).getFile();
+        if (!file.exists()) {
+          LOG.error("Deleting a file, which does not exist: " + file.getPath());
+          continue;
+        }
+
+        int id = getFileId(file);
+
+        if(childrenIdsToBeRemoved == null) {
+          childrenIdsToBeRemoved = new TIntArrayList();
+          childrenToBeRemoved = new SmartList<VirtualFile>();
+        }
+
+        childrenIdsToBeRemoved.add(id);
+        childrenToBeRemoved.add(file);
+        childrenIds.remove(id);
+      }
+    }
+
+    FSRecords.updateList(parentId, childrenIds.toArray());
+
+    if (childrenToBeAdded != null) {
+      for(VirtualFile addedFile:childrenToBeAdded) {
+        ((VirtualDirectoryImpl)parent).addChild((VirtualFileSystemEntry)addedFile);
+      }
+    }
+
+    if (childrenToBeRemoved != null) {
+      clearIdCache();
+      VirtualDirectoryImpl virtualDirectory = (VirtualDirectoryImpl)parent;
+
+      for(int i = 0, len = childrenIdsToBeRemoved.size(); i < len; ++i) {
+        FSRecords.deleteRecordRecursively(childrenIdsToBeRemoved.get(i));
+        VirtualFile removedFile = childrenToBeRemoved.get(i);
+        virtualDirectory.removeChild(removedFile);
+        invalidateSubtree(removedFile);
+      }
+    }
+  }
+
   @Override
   @Nullable
   public VirtualFileSystemEntry findRoot(@NotNull String basePath, @NotNull NewVirtualFileSystem fs) {