diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index e9b4d4d96d..8138643385 100755
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -1902,7 +1902,7 @@
       <key>Type</key>
       <string>Boolean</string>
       <key>Value</key>
-      <integer>0</integer>
+      <integer>1</integer>
     </map>
     <key>DebugInventoryFilters</key>
     <map>
diff --git a/indra/newview/llinventorybridge.cpp b/indra/newview/llinventorybridge.cpp
index 244b001adb..0c092e9a56 100644
--- a/indra/newview/llinventorybridge.cpp
+++ b/indra/newview/llinventorybridge.cpp
@@ -195,20 +195,6 @@ BOOL LLInvFVBridge::isLink() const
 	return mIsLink;
 }
 
-// Is a "System" folder
-// System folders are predefined named folders that have a specific preferred type
-// e.g. "Textures" which has an FT_TEXTURE preferred type.
-// Those are folders used to route incoming items in the current (soon to be obsolete) inventory
-// asset routing.
-// If a folder uses the same name as a predefined folder but is not of the same preferred type
-// or if it has a preferred type but a different name, it will not be considered a system folder.
-// *TODO: Test that logic in all languages
-bool LLInvFVBridge::isSystemFolder() const
-{
-	LLFolderType::EType preferred_type = getPreferredType();
-	return (preferred_type == LLFolderType::FT_NONE ? false : LLViewerFolderType::lookupTypeFromNewCategoryName(getDisplayName()) == preferred_type);
-}
-
 /*virtual*/
 /**
  * @brief Adds this item into clipboard storage
diff --git a/indra/newview/llinventorybridge.h b/indra/newview/llinventorybridge.h
index 9832c683c6..2d625befb4 100644
--- a/indra/newview/llinventorybridge.h
+++ b/indra/newview/llinventorybridge.h
@@ -72,7 +72,6 @@ public:
 	BOOL canShare() const;
 	BOOL canListOnMarketplace() const;
 	BOOL canListOnMarketplaceNow() const;
-	bool isSystemFolder() const; // true if is a "System" folder
 
 	//--------------------------------------------------------------------
 	// LLInvFVBridge functionality
diff --git a/indra/newview/llinventoryfilter.cpp b/indra/newview/llinventoryfilter.cpp
index 438081c177..bc02540281 100644
--- a/indra/newview/llinventoryfilter.cpp
+++ b/indra/newview/llinventoryfilter.cpp
@@ -119,16 +119,6 @@ bool LLInventoryFilter::checkFolder(const LLFolderViewFolder* folder)
 	const LLFolderViewEventListener* listener = folder->getListener();
 	const LLUUID folder_id = listener->getUUID();
 	
-	const LLInvFVBridge *bridge = dynamic_cast<const LLInvFVBridge *>(folder->getListener());
-	bool is_system_folder = bridge->isSystemFolder();
-	bool is_hidden_if_empty = LLViewerFolderType::lookupIsHiddenIfEmpty(listener->getPreferredType());
-	bool is_empty = (gInventory.categoryHasChildren(folder_id) != LLInventoryModel::CHILDREN_YES);
-	
-	if (is_system_folder && is_empty && is_hidden_if_empty)
-	{
-		return false;
-	}
-		
 	if (mFilterOps.mFilterTypes & FILTERTYPE_CATEGORY)
 	{
 		// Can only filter categories for items in your inventory
@@ -217,6 +207,21 @@ BOOL LLInventoryFilter::checkAgainstFilterType(const LLFolderViewItem* item) con
 		}
 	}
 
+	////////////////////////////////////////////////////////////////////////////////
+	// FILTERTYPE_EMPTYFOLDERS
+	// Pass if this item is a folder and is not a system folder that should be hidden
+	if (filterTypes & FILTERTYPE_EMPTYFOLDERS)
+	{
+		if (object_type == LLInventoryType::IT_CATEGORY)
+		{
+			bool is_hidden_if_empty = LLViewerFolderType::lookupIsHiddenIfEmpty(listener->getPreferredType());
+			if (is_hidden_if_empty)
+			{
+				return FALSE;
+			}
+		}
+	}
+	
 	return TRUE;
 }
 
@@ -354,6 +359,11 @@ void LLInventoryFilter::setFilterWearableTypes(U64 types)
 	mFilterOps.mFilterTypes |= FILTERTYPE_WEARABLE;
 }
 
+void LLInventoryFilter::setFilterEmptySystemFolders()
+{
+	mFilterOps.mFilterTypes |= FILTERTYPE_EMPTYFOLDERS;
+}
+
 void LLInventoryFilter::setFilterUUID(const LLUUID& object_id)
 {
 	if (mFilterOps.mFilterUUID == LLUUID::null)
diff --git a/indra/newview/llinventoryfilter.h b/indra/newview/llinventoryfilter.h
index f9460822f7..bba24ac652 100644
--- a/indra/newview/llinventoryfilter.h
+++ b/indra/newview/llinventoryfilter.h
@@ -57,7 +57,8 @@ public:
 		FILTERTYPE_CATEGORY = 0x1 << 1,	// search by folder type
 		FILTERTYPE_UUID	= 0x1 << 2,		// find the object with UUID and any links to it
 		FILTERTYPE_DATE = 0x1 << 3,		// search by date range
-		FILTERTYPE_WEARABLE = 0x1 << 4	// search by wearable type
+		FILTERTYPE_WEARABLE = 0x1 << 4,	// search by wearable type
+		FILTERTYPE_EMPTYFOLDERS = 0x1 << 5	// pass if folder is not a system folder to be hidden if empty
 	};
 
 	enum EFilterLink
@@ -88,6 +89,7 @@ public:
 	void 				setFilterCategoryTypes(U64 types);
 	void 				setFilterUUID(const LLUUID &object_id);
 	void				setFilterWearableTypes(U64 types);
+	void				setFilterEmptySystemFolders();
 	void				updateFilterTypes(U64 types, U64& current_types);
 
 	void 				setFilterSubString(const std::string& string);
diff --git a/indra/newview/llinventorypanel.cpp b/indra/newview/llinventorypanel.cpp
index a9ec4af4f3..d06374d232 100644
--- a/indra/newview/llinventorypanel.cpp
+++ b/indra/newview/llinventorypanel.cpp
@@ -240,6 +240,12 @@ void LLInventoryPanel::initFromParams(const LLInventoryPanel::Params& params)
 	getFilter()->setFilterCategoryTypes(getFilter()->getFilterCategoryTypes() & ~(1ULL << LLFolderType::FT_INBOX));
 	getFilter()->setFilterCategoryTypes(getFilter()->getFilterCategoryTypes() & ~(1ULL << LLFolderType::FT_OUTBOX));
 
+	// set the filter for the empty folder if the debug setting is on
+	if (gSavedSettings.getBOOL("DebugHideEmptySystemFolders"))
+	{
+		getFilter()->setFilterEmptySystemFolders();
+	}
+	
 	// Initialize base class params.
 	LLPanel::initFromParams(params);
 }
diff --git a/indra/newview/llviewerfoldertype.cpp b/indra/newview/llviewerfoldertype.cpp
index c39df7efce..a179b61cff 100644
--- a/indra/newview/llviewerfoldertype.cpp
+++ b/indra/newview/llviewerfoldertype.cpp
@@ -30,7 +30,6 @@
 #include "lldictionary.h"
 #include "llmemory.h"
 #include "llvisualparam.h"
-#include "llviewercontrol.h"
 
 static const std::string empty_string;
 
@@ -267,7 +266,7 @@ BOOL LLViewerFolderType::lookupIsQuietType(LLFolderType::EType folder_type)
 bool LLViewerFolderType::lookupIsHiddenIfEmpty(LLFolderType::EType folder_type)
 {
 	const ViewerFolderEntry *entry = LLViewerFolderDictionary::getInstance()->lookup(folder_type);
-	if (gSavedSettings.getBOOL("DebugHideEmptySystemFolders") && entry)
+	if (entry)
 	{
 		return entry->mHideIfEmpty;
 	}