diff --git a/rse/plugins/org.eclipse.rse.services.ssh/src/org/eclipse/rse/internal/services/ssh/files/SftpFileService.java b/rse/plugins/org.eclipse.rse.services.ssh/src/org/eclipse/rse/internal/services/ssh/files/SftpFileService.java
index 3ab0cffb8aa..8ce2720d4c8 100644
--- a/rse/plugins/org.eclipse.rse.services.ssh/src/org/eclipse/rse/internal/services/ssh/files/SftpFileService.java
+++ b/rse/plugins/org.eclipse.rse.services.ssh/src/org/eclipse/rse/internal/services/ssh/files/SftpFileService.java
@@ -20,7 +20,8 @@
  * David McKnight   (IBM)        - [210109] store constants in IFileService rather than IFileServiceConstants
  * Kevin Doyle		(IBM)		 - [208778] [efs][api] RSEFileStore#getOutputStream() does not support EFS#APPEND
  * Kevin Doyle		(IBM)		 - [211374] [ssh] New File on SSH has unnecessary space in its contents
- * David McKnight   (IBM)         - [209593] [api] add support for "file permissions" and "owner" properties for unix files
+ * David McKnight   (IBM)        - [209593] [api] add support for "file permissions" and "owner" properties for unix files
+ * Martin Oberhuber (Wind River) - [216343] immediate link targets and canonical paths for Sftp
  *******************************************************************************/
 
 package org.eclipse.rse.internal.services.ssh.files;
diff --git a/rse/plugins/org.eclipse.rse.subsystems.files.ssh/src/org/eclipse/rse/internal/subsystems/files/ssh/SftpRemoteFile.java b/rse/plugins/org.eclipse.rse.subsystems.files.ssh/src/org/eclipse/rse/internal/subsystems/files/ssh/SftpRemoteFile.java
index b40a11c591c..3f29903200d 100644
--- a/rse/plugins/org.eclipse.rse.subsystems.files.ssh/src/org/eclipse/rse/internal/subsystems/files/ssh/SftpRemoteFile.java
+++ b/rse/plugins/org.eclipse.rse.subsystems.files.ssh/src/org/eclipse/rse/internal/subsystems/files/ssh/SftpRemoteFile.java
@@ -13,6 +13,7 @@
  * 
  * Contributors:
  * Martin Oberhuber (Wind River) - Adapted from FTPRemoteFile.
+ * Martin Oberhuber (Wind River) - [216343] immediate link targets and canonical paths for Sftp
  *******************************************************************************/
 
 package org.eclipse.rse.internal.subsystems.files.ssh;
@@ -38,7 +39,18 @@ public class SftpRemoteFile extends AbstractRemoteFile {
 	}
 
 	public String getCanonicalPath() {
-		return getSftpHostFile().getCanonicalPath();
+		String canPath = getSftpHostFile().getCanonicalPath();
+		if (canPath.equals(getAbsolutePath()) && _parentFile!=null) {
+			String parentCanPath = _parentFile.getCanonicalPath();
+			StringBuffer path = new StringBuffer(parentCanPath);
+			if (!parentCanPath.endsWith("/")) //$NON-NLS-1$
+			{
+				path.append('/');
+			}
+			path.append(getName());
+			canPath = path.toString();
+		}
+		return canPath;
 	}
 
 	public String getClassification() {