diff --git a/proguard.flags b/proguard.flags
index 94dd260..c2b2c65 100644
--- a/proguard.flags
+++ b/proguard.flags
@@ -31,6 +31,17 @@
   public int getY();
 }
 
+-keep class com.android.launcher2.CellLayout$LayoutParams {
+  public void setWidth(int);
+  public int getWidth();
+  public void setHeight(int);
+  public int getHeight();
+  public void setX(int);
+  public int getX();
+  public void setY(int);
+  public int getY();
+}
+
 -keep class com.android.launcher2.Workspace {
   public float getBackgroundAlpha();
   public void setBackgroundAlpha(float);
diff --git a/res/values/config.xml b/res/values/config.xml
index ec01fa8..ba9034f 100644
--- a/res/values/config.xml
+++ b/res/values/config.xml
@@ -24,6 +24,9 @@
 
     <integer name="config_dropAnimMaxDuration">400</integer>
 
+    <!-- The duration of the UserFolder opening and closing animation -->
+    <integer name="config_folderAnimDuration">150</integer>
+
     <!-- The distance at which the animation should take the max duration -->
     <integer name="config_dropAnimMaxDist">800</integer>
 
diff --git a/src/com/android/launcher2/CellLayout.java b/src/com/android/launcher2/CellLayout.java
index 80e92c4..218f3b1 100644
--- a/src/com/android/launcher2/CellLayout.java
+++ b/src/com/android/launcher2/CellLayout.java
@@ -263,17 +263,16 @@
         setHoverAlpha(1.0f);
 
         mChildren = new CellLayoutChildren(context);
-        mChildren.setCellDimensions(
-                mCellWidth, mCellHeight, mLeftPadding, mTopPadding, mWidthGap, mHeightGap);
+        mChildren.setCellDimensions(mCellWidth, mCellHeight, mWidthGap, mHeightGap);
         addView(mChildren);
     }
 
     private void invalidateBubbleTextView(BubbleTextView icon) {
         final int padding = icon.getPressedOrFocusedBackgroundPadding();
-        invalidate(icon.getLeft() - padding,
-                icon.getTop() - padding,
-                icon.getRight() + padding,
-                icon.getBottom() + padding);
+        invalidate(icon.getLeft() + getLeftPadding() - padding,
+                icon.getTop() + getTopPadding() - padding,
+                icon.getRight() + getLeftPadding() + padding,
+                icon.getBottom() + getTopPadding() + padding);
     }
 
     void setPressedOrFocusedIcon(BubbleTextView icon) {
@@ -487,8 +486,8 @@
             final Bitmap b = mPressedOrFocusedIcon.getPressedOrFocusedBackground();
             if (b != null) {
                 canvas.drawBitmap(b,
-                        mPressedOrFocusedIcon.getLeft() - padding,
-                        mPressedOrFocusedIcon.getTop() - padding,
+                        mPressedOrFocusedIcon.getLeft() + getLeftPadding() - padding,
+                        mPressedOrFocusedIcon.getTop() + getTopPadding() - padding,
                         null);
             }
         }
@@ -783,6 +782,18 @@
         return mBottomPadding;
     }
 
+    Rect getContentRect(Rect r) {
+        if (r == null) {
+            r = new Rect();
+        }
+        int left = getPaddingLeft();
+        int top = getPaddingTop();
+        int right = left + getWidth() - mLeftPadding - mRightPadding;
+        int bottom = top + getHeight() - mTopPadding - mBottomPadding;
+        r.set(left, top, right, bottom);
+        return r;
+    }
+
     @Override
     protected void onMeasure(int widthMeasureSpec, int heightMeasureSpec) {
         // TODO: currently ignoring padding
@@ -842,7 +853,7 @@
         int count = getChildCount();
         for (int i = 0; i < count; i++) {
             View child = getChildAt(i);
-            child.layout(0, 0, r - l, b - t);
+            child.layout(mLeftPadding, mTopPadding, r - mRightPadding , b - mBottomPadding);
         }
     }
 
@@ -1651,8 +1662,7 @@
             this.cellVSpan = cellVSpan;
         }
 
-        public void setup(int cellWidth, int cellHeight, int widthGap, int heightGap,
-                int hStartPadding, int vStartPadding) {
+        public void setup(int cellWidth, int cellHeight, int widthGap, int heightGap) {
             if (isLockedToGrid) {
                 final int myCellHSpan = cellHSpan;
                 final int myCellVSpan = cellVSpan;
@@ -1663,14 +1673,46 @@
                         leftMargin - rightMargin;
                 height = myCellVSpan * cellHeight + ((myCellVSpan - 1) * heightGap) -
                         topMargin - bottomMargin;
-                x = hStartPadding + myCellX * (cellWidth + widthGap) + leftMargin;
-                y = vStartPadding + myCellY * (cellHeight + heightGap) + topMargin;
+                x = myCellX * (cellWidth + widthGap) + leftMargin;
+                y = myCellY * (cellHeight + heightGap) + topMargin;
             }
         }
 
         public String toString() {
             return "(" + this.cellX + ", " + this.cellY + ")";
         }
+
+        public void setWidth(int width) {
+            this.width = width;
+        }
+
+        public int getWidth() {
+            return width;
+        }
+
+        public void setHeight(int height) {
+            this.height = height;
+        }
+
+        public int getHeight() {
+            return height;
+        }
+
+        public void setX(int x) {
+            this.x = x;
+        }
+
+        public int getX() {
+            return x;
+        }
+
+        public void setY(int y) {
+            this.y = y;
+        }
+
+        public int getY() {
+            return y;
+        }
     }
 
     // This class stores info for two purposes:
diff --git a/src/com/android/launcher2/CellLayoutChildren.java b/src/com/android/launcher2/CellLayoutChildren.java
index ed81419..eea38f1 100644
--- a/src/com/android/launcher2/CellLayoutChildren.java
+++ b/src/com/android/launcher2/CellLayoutChildren.java
@@ -34,9 +34,6 @@
 
     private final WallpaperManager mWallpaperManager;
 
-    private int mLeftPadding;
-    private int mTopPadding;
-
     private int mCellWidth;
     private int mCellHeight;
 
@@ -49,12 +46,9 @@
         setLayerType(LAYER_TYPE_HARDWARE, null);
     }
 
-    public void setCellDimensions(int cellWidth, int cellHeight,
-            int leftPadding, int topPadding, int widthGap, int heightGap ) {
+    public void setCellDimensions(int cellWidth, int cellHeight, int widthGap, int heightGap ) {
         mCellWidth = cellWidth;
         mCellHeight = cellHeight;
-        mLeftPadding = leftPadding;
-        mTopPadding = topPadding;
         mWidthGap = widthGap;
         mHeightGap = heightGap;
     }
@@ -90,9 +84,7 @@
         final int cellHeight = mCellHeight;
         CellLayout.LayoutParams lp = (CellLayout.LayoutParams) child.getLayoutParams();
 
-        lp.setup(cellWidth, cellHeight, mWidthGap, mHeightGap,
-                mLeftPadding, mTopPadding);
-
+        lp.setup(cellWidth, cellHeight, mWidthGap, mHeightGap);
         int childWidthMeasureSpec = MeasureSpec.makeMeasureSpec(lp.width, MeasureSpec.EXACTLY);
         int childheightMeasureSpec = MeasureSpec.makeMeasureSpec(lp.height,
                 MeasureSpec.EXACTLY);
diff --git a/src/com/android/launcher2/Launcher.java b/src/com/android/launcher2/Launcher.java
index 60cab8e..4981cb4 100644
--- a/src/com/android/launcher2/Launcher.java
+++ b/src/com/android/launcher2/Launcher.java
@@ -1983,15 +1983,23 @@
 
     void closeFolder(Folder folder) {
         folder.getInfo().opened = false;
+
         ViewGroup parent = (ViewGroup) folder.getParent().getParent();
         if (parent != null) {
             CellLayout cl = (CellLayout) parent;
-            cl.removeViewWithoutMarkingCells(folder);
+            if (!(folder instanceof UserFolder)) {
+                // User folders will remove themselves
+                cl.removeViewWithoutMarkingCells(folder);
+            }
             if (folder instanceof DropTarget) {
                 // Live folders aren't DropTargets.
                 mDragController.removeDropTarget((DropTarget)folder);
             }
         }
+        if (folder instanceof UserFolder) {
+            UserFolder uf = (UserFolder) folder;
+            uf.animateClosed();
+        }
         folder.onClose();
     }
 
@@ -2207,6 +2215,10 @@
         folderInfo.opened = true;
 
         mWorkspace.addInFullScreen(openFolder, folderInfo.screen);
+        if (openFolder instanceof UserFolder) {
+            UserFolder uf = (UserFolder) openFolder;
+            uf.animateOpen();
+        }
 
         openFolder.onOpen();
     }
diff --git a/src/com/android/launcher2/UserFolder.java b/src/com/android/launcher2/UserFolder.java
index 24b9ae2..5c87e09 100644
--- a/src/com/android/launcher2/UserFolder.java
+++ b/src/com/android/launcher2/UserFolder.java
@@ -2,7 +2,17 @@
 
 import java.util.ArrayList;
 
+import android.animation.Animator;
+import android.animation.AnimatorListenerAdapter;
+import android.animation.AnimatorSet;
+import android.animation.ObjectAnimator;
+import android.animation.PropertyValuesHolder;
+import android.animation.ValueAnimator;
+import android.animation.Animator.AnimatorListener;
+import android.animation.ValueAnimator.AnimatorUpdateListener;
+import android.appwidget.AppWidgetProviderInfo;
 import android.content.Context;
+import android.graphics.Color;
 import android.graphics.Rect;
 import android.util.AttributeSet;
 import android.view.LayoutInflater;
@@ -18,23 +28,30 @@
 public class UserFolder extends Folder implements DropTarget {
     private static final String TAG = "Launcher.UserFolder";
 
+    static final int STATE_NONE = -1;
+    static final int STATE_SMALL = 0;
+    static final int STATE_ANIMATING = 1;
+    static final int STATE_OPEN = 2;
+
+    private int mExpandDuration;
     protected CellLayout mContent;
     private final LayoutInflater mInflater;
     private final IconCache mIconCache;
+    private int mState = STATE_NONE;
 
     public UserFolder(Context context, AttributeSet attrs) {
         super(context, attrs);
         mInflater = LayoutInflater.from(context);
         mIconCache = ((LauncherApplication)context.getApplicationContext()).getIconCache();
+        mExpandDuration = getResources().getInteger(R.integer.config_folderAnimDuration);
     }
 
     @Override
     protected void onFinishInflate() {
         super.onFinishInflate();
-
         mContent = (CellLayout) findViewById(R.id.folder_content);
     }
-    
+
     /**
      * Creates a new UserFolder, inflated from R.layout.user_folder.
      *
@@ -46,6 +63,115 @@
         return (UserFolder) LayoutInflater.from(context).inflate(R.layout.user_folder, null);
     }
 
+    /**
+     * This method is intended to make the UserFolder to be visually identical in size and position
+     * to its associated FolderIcon. This allows for a seamless transition into the expanded state.
+     */
+    private void positionAndSizeAsIcon() {
+        if (!(getParent() instanceof CellLayoutChildren)) return;
+
+        CellLayoutChildren clc = (CellLayoutChildren) getParent();
+        CellLayout cellLayout = (CellLayout) clc.getParent();
+
+        FolderIcon fi = (FolderIcon) cellLayout.getChildAt(mInfo.cellX, mInfo.cellY);
+        CellLayout.LayoutParams iconLp = (CellLayout.LayoutParams) fi.getLayoutParams();
+        CellLayout.LayoutParams lp = (CellLayout.LayoutParams) getLayoutParams();
+
+        lp.width = iconLp.width;
+        lp.height = iconLp.height;
+        lp.x = iconLp.x;
+        lp.y = iconLp.y;
+
+        mContent.setAlpha(0f);
+        mState = STATE_SMALL;
+    }
+
+    public void animateOpen() {
+        if (mState != STATE_SMALL) {
+            positionAndSizeAsIcon();
+        }
+        if (!(getParent() instanceof CellLayoutChildren)) return;
+
+        CellLayout.LayoutParams lp = (CellLayout.LayoutParams) getLayoutParams();
+
+        CellLayoutChildren clc = (CellLayoutChildren) getParent();
+        CellLayout cellLayout = (CellLayout) clc.getParent();
+        Rect r = cellLayout.getContentRect(null);
+
+        PropertyValuesHolder width = PropertyValuesHolder.ofInt("width", r.width());
+        PropertyValuesHolder height = PropertyValuesHolder.ofInt("height", r.height());
+        PropertyValuesHolder x = PropertyValuesHolder.ofInt("x", 0);
+        PropertyValuesHolder y = PropertyValuesHolder.ofInt("y", 0);
+
+        ObjectAnimator oa = ObjectAnimator.ofPropertyValuesHolder(lp, width, height, x, y);
+        oa.addUpdateListener(new AnimatorUpdateListener() {
+            public void onAnimationUpdate(ValueAnimator animation) {
+                requestLayout();
+            }
+        });
+
+        PropertyValuesHolder alpha = PropertyValuesHolder.ofFloat("alpha", 1.0f);
+        ObjectAnimator oaContentAlpha = ObjectAnimator.ofPropertyValuesHolder(mContent, alpha);
+
+        AnimatorSet set = new AnimatorSet();
+        set.playTogether(oa, oaContentAlpha);
+        set.setDuration(mExpandDuration);
+        set.addListener(new AnimatorListenerAdapter() {
+            @Override
+            public void onAnimationStart(Animator animation) {
+                mState = STATE_ANIMATING;
+            }
+            @Override
+            public void onAnimationEnd(Animator animation) {
+                mState = STATE_SMALL;
+            }
+        });
+        set.start();
+    }
+
+    public void animateClosed() {
+        if (!(getParent() instanceof CellLayoutChildren)) return;
+
+        CellLayoutChildren clc = (CellLayoutChildren) getParent();
+        final CellLayout cellLayout = (CellLayout) clc.getParent();
+
+        FolderIcon fi = (FolderIcon) cellLayout.getChildAt(mInfo.cellX, mInfo.cellY);
+        CellLayout.LayoutParams iconLp = (CellLayout.LayoutParams) fi.getLayoutParams();
+        CellLayout.LayoutParams lp = (CellLayout.LayoutParams) getLayoutParams();
+
+        PropertyValuesHolder width = PropertyValuesHolder.ofInt("width", iconLp.width);
+        PropertyValuesHolder height = PropertyValuesHolder.ofInt("height", iconLp.height);
+        PropertyValuesHolder x = PropertyValuesHolder.ofInt("x",iconLp.x);
+        PropertyValuesHolder y = PropertyValuesHolder.ofInt("y", iconLp.y);
+
+        ObjectAnimator oa = ObjectAnimator.ofPropertyValuesHolder(lp, width, height, x, y);
+        oa.addUpdateListener(new AnimatorUpdateListener() {
+            public void onAnimationUpdate(ValueAnimator animation) {
+                requestLayout();
+            }
+        });
+
+        PropertyValuesHolder alpha = PropertyValuesHolder.ofFloat("alpha", 0f);
+        ObjectAnimator oaContentAlpha = ObjectAnimator.ofPropertyValuesHolder(mContent, alpha);
+
+        AnimatorSet set = new AnimatorSet();
+        set.playTogether(oa, oaContentAlpha);
+        set.setDuration(mExpandDuration);
+
+        set.addListener(new AnimatorListenerAdapter() {
+            @Override
+            public void onAnimationEnd(Animator animation) {
+                cellLayout.removeViewWithoutMarkingCells(UserFolder.this);
+                mState = STATE_OPEN;
+            }
+            @Override
+            public void onAnimationStart(Animator animation) {
+                mState = STATE_ANIMATING;
+            }
+        });
+        set.start();
+    }
+
     @Override
     void notifyDataSetChanged() {
         // recreate all the children if the data set changes under us. We may want to do this more
diff --git a/src/com/android/launcher2/Workspace.java b/src/com/android/launcher2/Workspace.java
index b1aa410..bf89c06 100644
--- a/src/com/android/launcher2/Workspace.java
+++ b/src/com/android/launcher2/Workspace.java
@@ -471,6 +471,10 @@
             lp.cellVSpan = spanY;
         }
 
+        if (spanX < 0 && spanY < 0) {
+            lp.isLockedToGrid = false;
+        }
+
         // Get the canonical child id to uniquely represent this view in this screen
         int childId = LauncherModel.getCellLayoutChildId(-1, screen, x, y, spanX, spanY);
         boolean markCellsAsOccupied = !(child instanceof Folder);
@@ -2189,10 +2193,12 @@
         int viewX = dragViewX + (dragView.getWidth() - child.getMeasuredWidth()) / 2;
         int viewY = dragViewY + (dragView.getHeight() - child.getMeasuredHeight()) / 2;
 
+        CellLayout layout = (CellLayout) parent;
+
         // Set its old pos (in the new parent's coordinates); it will be animated
         // in animateViewIntoPosition after the next layout pass
-        lp.oldX = viewX - (parent.getLeft() - mScrollX);
-        lp.oldY = viewY - (parent.getTop() - mScrollY);
+        lp.oldX = viewX - (layout.getLeft() + layout.getLeftPadding() - mScrollX);
+        lp.oldY = viewY - (layout.getTop() + layout.getTopPadding() - mScrollY);
     }
 
     /*
@@ -2204,8 +2210,8 @@
         final CellLayout.LayoutParams lp = (CellLayout.LayoutParams) view.getLayoutParams();
 
         // Convert the animation params to be relative to the Workspace, not the CellLayout
-        final int fromX = lp.oldX + parent.getLeft();
-        final int fromY = lp.oldY + parent.getTop();
+        final int fromX = lp.oldX + parent.getLeft() + parent.getLeftPadding();
+        final int fromY = lp.oldY + parent.getTop() + parent.getTopPadding();
 
         final int dx = lp.x - lp.oldX;
         final int dy = lp.y - lp.oldY;