diff --git a/core/org.eclipse.cdt.ui/plugin.properties b/core/org.eclipse.cdt.ui/plugin.properties
index e8c297ed06e..1a464acbbe3 100644
--- a/core/org.eclipse.cdt.ui/plugin.properties
+++ b/core/org.eclipse.cdt.ui/plugin.properties
@@ -567,3 +567,6 @@ AddBlockCommentAction.label= Add &Block Comment
 RemoveBlockCommentAction.label= Remove Bloc&k Comment
 ShiftRightAction.label= &Shift Right
 ShiftLeftAction.label= S&hift Left
+
+# Decorators
+excluded-file.name = Excluded File
\ No newline at end of file
diff --git a/core/org.eclipse.cdt.ui/plugin.xml b/core/org.eclipse.cdt.ui/plugin.xml
index 584ca76135b..bdcafb55510 100644
--- a/core/org.eclipse.cdt.ui/plugin.xml
+++ b/core/org.eclipse.cdt.ui/plugin.xml
@@ -3520,4 +3520,14 @@
          </complexArray>
       </processType>
    </extension>
+	<extension point="org.eclipse.ui.decorators">
+		<decorator adaptable="true"
+			class="org.eclipse.cdt.internal.ui.viewsupport.ExcludedFileDecorator"
+			id="org.eclipse.cdt.managedbuilder.ui.excludedFile" label="%excluded-file.name"
+			lightweight="true" state="true">
+			<enablement>
+				<objectClass name="org.eclipse.core.resources.IFile" />
+			</enablement>
+		</decorator>
+	</extension>
 </plugin>
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/viewsupport/ExcludedFileDecorator.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/viewsupport/ExcludedFileDecorator.java
new file mode 100644
index 00000000000..b72196ed2a6
--- /dev/null
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/viewsupport/ExcludedFileDecorator.java
@@ -0,0 +1,74 @@
+/*******************************************************************************
+ * Copyright (c) 2010 Atmel Corporation and others.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ *    Torkild U. Resheim (Atmel Corporation) - Initial API and implementation
+ *******************************************************************************/
+package org.eclipse.cdt.internal.ui.viewsupport;
+
+
+import org.eclipse.core.resources.IFile;
+import org.eclipse.jface.preference.JFacePreferences;
+import org.eclipse.jface.resource.JFaceResources;
+import org.eclipse.jface.viewers.IDecoration;
+import org.eclipse.jface.viewers.ILabelProviderListener;
+import org.eclipse.jface.viewers.ILightweightLabelDecorator;
+
+import org.eclipse.cdt.core.model.CoreModel;
+import org.eclipse.cdt.core.settings.model.ICConfigurationDescription;
+import org.eclipse.cdt.core.settings.model.ICProjectDescription;
+import org.eclipse.cdt.core.settings.model.ICProjectDescriptionManager;
+import org.eclipse.cdt.core.settings.model.ICSourceEntry;
+import org.eclipse.cdt.core.settings.model.util.CDataUtil;
+
+import org.eclipse.cdt.internal.ui.CPluginImages;
+
+/**
+ * Determines if a file is excluded from a CDT build and if that is the case decorates the file's icon and
+ * renders the label using the qualifier (gray) color.
+ */
+public class ExcludedFileDecorator implements ILightweightLabelDecorator {
+
+	public void decorate(Object element, IDecoration decoration) {
+		if (element instanceof IFile) {
+			IFile resource = (IFile) element;
+			ICProjectDescriptionManager mngr = CoreModel.getDefault().getProjectDescriptionManager();
+			ICProjectDescription desc = mngr.getProjectDescription(resource.getProject());
+			ICConfigurationDescription conf = desc.getDefaultSettingConfiguration();
+			ICSourceEntry[] entries = conf.getSourceEntries();
+			boolean isSource = false;
+			for (ICSourceEntry icSourceEntry : entries) {
+				if (icSourceEntry.getFullPath().isPrefixOf(resource.getFullPath())) {
+					isSource = true;
+					break;
+				}
+
+			}
+			// Only bother to mark items that would be included otherwise
+			if (isSource && CDataUtil.isExcluded(resource.getFullPath(), entries)) {
+				decoration.addOverlay(CPluginImages.DESC_OVR_INACTIVE);
+				decoration.setForegroundColor(JFaceResources.getColorRegistry().get(
+						JFacePreferences.QUALIFIER_COLOR));
+			}
+		}
+	}
+
+	public void addListener(ILabelProviderListener listener) {
+		// We don't track state changes
+	}
+
+	public void dispose() {
+	}
+
+	public boolean isLabelProperty(Object element, String property) {
+		return false;
+	}
+
+	public void removeListener(ILabelProviderListener listener) {
+		// We don't track state changes
+	}
+}
\ No newline at end of file