diff --git a/lib/ace/edit_session/folding.js b/lib/ace/edit_session/folding.js
index 0e3fb889..3a2e6121 100644
--- a/lib/ace/edit_session/folding.js
+++ b/lib/ace/edit_session/folding.js
@@ -191,7 +191,11 @@ function Folding() {
 
     this.getFoldLine = function(docRow, startFoldLine) {
         var foldData = this.$foldData;
-        var i = Math.max(foldData.indexOf(startFoldLine), 0);
+        var i = 0;
+        if(startFoldLine)
+            i = foldData.indexOf(startFoldLine);
+        if(i == -1)
+            i = 0;
         for (i; i < foldData.length; i++) {
             var foldLine = foldData[i];
             if (foldLine.start.row <= docRow && foldLine.end.row >= docRow) {
@@ -203,6 +207,47 @@ function Folding() {
         return null;
     }
 
+    // returns the fold which starts after or contains docRow
+    this.getNextFold = function(docRow, startFoldLine) {
+        var foldData = this.$foldData, ans;
+        var i = 0;
+        if(startFoldLine)
+            i = foldData.indexOf(startFoldLine);
+        if(i == -1)
+            i = 0;
+        for (i; i < foldData.length; i++) {
+            var foldLine = foldData[i];
+            if (foldLine.end.row >= docRow) {
+                return foldLine;
+            }
+        }
+        return null;
+    }
+
+    this.getFoldedRowCount = function(first, last) {
+        var foldData = this.$foldData, rowCount = last-first+1;
+        for (var i = 0; i < foldData.length; i++) {
+            var foldLine = foldData[i],
+                end = foldLine.end.row,
+                start = foldLine.start.row;
+            if(end >= last) {
+                if(start < last) {
+                    if(start >= first)
+                        rowCount -= last-start;
+                    else
+                        rowCount = 0;//in one fold
+                }
+                break;
+            } else if(end >= first){
+                if (start >= first) //fold inside range
+                    rowCount -=  end-start;
+                else
+                    rowCount -=  end-first+1;
+            }
+        }
+        return rowCount;
+    }
+
     this.$addFoldLine = function(foldLine) {
         this.$foldData.push(foldLine);
         this.$foldData.sort(function(a, b) {
@@ -428,6 +473,7 @@ function Folding() {
     };
 
     this.getRowFoldEnd = function(docRow, startFoldRow) {
+        //console.trace()
         var foldLine = this.getFoldLine(docRow, startFoldRow);
         return (foldLine
                     ? foldLine.end.row
@@ -484,4 +530,4 @@ function Folding() {
 
 exports.Folding = Folding;
 
-});
+});
\ No newline at end of file
diff --git a/lib/ace/layer/gutter.js b/lib/ace/layer/gutter.js
index 84a36ca2..344018ec 100644
--- a/lib/ace/layer/gutter.js
+++ b/lib/ace/layer/gutter.js
@@ -99,12 +99,22 @@ var Gutter = function(parentEl) {
     this.update = function(config) {
         this.$config = config;
 
+        var emptyAnno = {className: "", text: []};
         var html = [];
-        for ( var i = config.firstRow; i <= config.lastRow; i++) {
-            var annotation = this.$annotations[i] || {
-                className: "",
-                text: []
-            };
+        var i = config.firstRow, lastRow = config.lastRow
+            fold = this.session.getNextFold(i),
+            foldStart = fold ?fold.start.row :Infinity;
+
+        while (true) {
+            if(i > foldStart) {
+                i = fold.end.row+1;
+                fold = this.session.getNextFold(i);
+                foldStart = fold ?fold.start.row :Infinity;
+            }
+            if(i > lastRow)
+                break;
+
+            var annotation = this.$annotations[i] || emptyAnno;
             html.push("<div class='ace_gutter-cell",
                 this.$decorations[i] || "",
                 this.$breakpoints[i] ? " ace_breakpoint " : " ",
@@ -112,10 +122,9 @@ var Gutter = function(parentEl) {
                 "' title='", annotation.text.join("\n"),
                 "' style='height:", this.session.getRowHeight(config, i), "px;'>", (i+1), "</div>");
 
-
-            i = this.session.getRowFoldEnd(i);
+            i++;
         }
-		this.element = dom.setInnerHtml(this.element, html.join(""));
+        this.element = dom.setInnerHtml(this.element, html.join(""));
         this.element.style.height = config.minHeight + "px";
     };
 
diff --git a/lib/ace/layer/text.js b/lib/ace/layer/text.js
index d28d34a5..243e2371 100644
--- a/lib/ace/layer/text.js
+++ b/lib/ace/layer/text.js
@@ -230,13 +230,12 @@ var Text = function(parentEl) {
             return this.update(config);
 
         var el = this.element;
-
         if (oldConfig.firstRow < config.firstRow)
-            for (var row=oldConfig.firstRow; row<config.firstRow; row = this.session.getRowFoldEnd(row) + 1)
+            for (var row=this.session.getFoldedRowCount(oldConfig.firstRow, config.firstRow - 1); row>0; row--)
                 el.removeChild(el.firstChild);
 
         if (oldConfig.lastRow > config.lastRow)
-            for (var row=config.lastRow+1; row<=oldConfig.lastRow; row = this.session.getRowFoldEnd(row) + 1)
+            for (var row=this.session.getFoldedRowCount(config.lastRow + 1, oldConfig.lastRow); row>0; row--)
                 el.removeChild(el.lastChild);
 
         if (config.firstRow < oldConfig.firstRow) {
@@ -254,8 +253,20 @@ var Text = function(parentEl) {
     };
 
     this.$renderLinesFragment = function(config, firstRow, lastRow) {
-        var fragment = document.createDocumentFragment();
-        for (var row=firstRow; row<=lastRow; row++) {
+        var fragment = document.createDocumentFragment(),
+            row = firstRow,
+            fold = this.session.getNextFold(row),
+            foldStart = fold ?fold.start.row :Infinity;
+
+        while (true) {
+            if(row > foldStart) {
+                row = fold.end.row+1;
+                fold = this.session.getNextFold(row);
+                foldStart = fold ?fold.start.row :Infinity;
+            }
+            if(row > lastRow)
+                break;
+
             var lineEl = dom.createElement("div");
 
             lineEl.className = "ace_line";
@@ -276,7 +287,7 @@ var Text = function(parentEl) {
             lineEl.innerHTML = html.join("");
             fragment.appendChild(lineEl);
 
-            row = this.session.getRowFoldEnd(row);
+            row++;
         }
         return fragment;
     };
@@ -287,9 +298,20 @@ var Text = function(parentEl) {
 
         var html = [];
         var firstRow = config.firstRow, lastRow = config.lastRow;
-        var tokens = this.session.getTokens(firstRow, lastRow)
 
-        for (var row=firstRow; row<=lastRow; row++) {
+        var row = firstRow,
+            fold = this.session.getNextFold(row),
+            foldStart = fold ?fold.start.row :Infinity;
+
+        while (true) {
+            if(row > foldStart) {
+                row = fold.end.row+1;
+                fold = this.session.getNextFold(row);
+                foldStart = fold ?fold.start.row :Infinity;
+            }
+            if(row > lastRow)
+                break;
+
             html.push("<div class='ace_line' style='height:",
                 this.session.getRowHeight(config, row) + "px;", "width",  config.width + "px'>"
             )
@@ -301,7 +323,8 @@ var Text = function(parentEl) {
             if (tokens.length == 1)
                 this.$renderLine(html, row, tokens[0].tokens);
             html.push("</div>")
-            row = this.session.getRowFoldEnd(row);
+
+            row++;
         }
         this.element = dom.setInnerHtml(this.element, html.join(""));
     };