diff --git a/rse/plugins/org.eclipse.rse.services.files.ftp/src/org/eclipse/rse/internal/services/files/ftp/FTPService.java b/rse/plugins/org.eclipse.rse.services.files.ftp/src/org/eclipse/rse/internal/services/files/ftp/FTPService.java
index 90902fa2433..e5cd3742bf1 100644
--- a/rse/plugins/org.eclipse.rse.services.files.ftp/src/org/eclipse/rse/internal/services/files/ftp/FTPService.java
+++ b/rse/plugins/org.eclipse.rse.services.files.ftp/src/org/eclipse/rse/internal/services/files/ftp/FTPService.java
@@ -45,6 +45,7 @@
  * Javier Montalvo Orus (Symbian) - [187862] Incorrect Error Message when creating new file in read-only directory
  * Javier Montalvo Orus (Symbian) - [194204] Renaming Files/Folders moves them sometimes
  * Javier Montalvo Orus (Symbian) - [192724] New Filter with Show Files Only still shows folders
+ * Martin Oberhuber (Wind River) - [192724] Fixed logic to filter folders if FILE_TYPE_FOLDERS
  ********************************************************************************/
 
 package org.eclipse.rse.internal.services.files.ftp;
@@ -497,26 +498,17 @@ public class FTPService extends AbstractFileService implements IFileService, IFT
 				for(int i=0; i<_ftpFiles.length; i++)
 				{
 					FTPHostFile f = new FTPHostFile(parentPath, _ftpFiles[i]);
-	
-					if((filematcher.matches(f.getName()) || f.isDirectory()) && !(f.getName().equals(".") || f.getName().equals(".."))) //$NON-NLS-1$ //$NON-NLS-2$
-					{
-						switch(fileType)
-						{
-							case FILE_TYPE_FOLDERS:
-								if(f.isDirectory())
-								{
-									results.add(f);	
-								}
-								break;
-							case FILE_TYPE_FILES:
-								if(f.isFile())
-								{
-									results.add(f);	
-								}
-								break;
-							case FILE_TYPE_FILES_AND_FOLDERS:
-								results.add(f);	
-								break;
+					if (isRightType(fileType,f)) {
+						String name = f.getName();
+						if (name.equals(".") || name.equals("..")) { //$NON-NLS-1$ //$NON-NLS-2$
+							//Never return the default directory names
+							continue;
+						} else if (f.isDirectory() && fileType!=FILE_TYPE_FOLDERS) {
+							//get ALL directory names (unless looking for folders only)
+							results.add(f);
+						} else if (filematcher.matches(name)) { 
+							//filter all others by name.
+							results.add(f);
 						}
 					}
 				}
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 901e9907f09..b1497b478ee 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
@@ -10,6 +10,7 @@
  * Dave Dykstal (IBM) - fixing bug 162510: correctly process filter strings
  * Kushal Munir (IBM) - for API bug   
  * Martin Oberhuber (Wind River) - [186128] Move IProgressMonitor last in all API
+ * Martin Oberhuber (Wind River) - [192724] Fixed logic to filter folders if FILE_TYPE_FOLDERS
  *******************************************************************************/
 
 package org.eclipse.rse.internal.services.ssh.files;
@@ -307,7 +308,8 @@ public class SftpFileService extends AbstractFileService implements IFileService
 			    			//don't show the trivial names
 			    			continue;
 			    		}
-			    		if (filematcher.matches(fileName) || lsEntry.getAttrs().isDir()) {
+			    		if (filematcher.matches(fileName) || (lsEntry.getAttrs().isDir() && fileType!=FILE_TYPE_FOLDERS)) {
+							//get ALL directory names (unless looking for folders only)
 			    			SftpHostFile node = makeHostFile(parentPath, fileName, lsEntry.getAttrs());
 			    			if (isRightType(fileType, node)) {
 			    				results.add(node);