diff --git a/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/files/LocalFileService.java b/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/files/LocalFileService.java
index f6cd530a8c5..3116b2ac749 100644
--- a/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/files/LocalFileService.java
+++ b/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/files/LocalFileService.java
@@ -22,6 +22,7 @@
  * Martin Oberhuber (Wind River) - [199548] Avoid touching files on setReadOnly() if unnecessary
  * Kevin Doyle (IBM) - [199871] LocalFileService needs to implement getMessage()
  * David McKnight   (IBM)        - [207178] changing list APIs for file service and subsystems
+ * Kevin Doyle (IBM) - [209355] Retrieving list of FILE_TYPE_FOLDERS should return Archive's
  ********************************************************************************/
 
 package org.eclipse.rse.internal.services.local.files;
@@ -720,6 +721,11 @@ public class LocalFileService extends AbstractFileService implements IFileServic
 						type == IFileServiceConstants.FILE_TYPE_FILES)
 					{
 						results.add(new LocalHostFile(file));
+					} else if (type == IFileServiceConstants.FILE_TYPE_FOLDERS && 
+						ArchiveHandlerManager.getInstance().isArchive(file)) {
+						// On Local Archive's should be considered Folders
+						// as they are containers that can be opened.
+						results.add(new LocalHostFile(file));
 					}
 				}
 				else if (!file.exists())