diff --git a/lib/ace/mode/folding/lua.js b/lib/ace/mode/folding/lua.js
index c01f1e9f..73a6a37c 100644
--- a/lib/ace/mode/folding/lua.js
+++ b/lib/ace/mode/folding/lua.js
@@ -41,9 +41,42 @@ oop.inherits(FoldMode, BaseFoldMode);
 
 (function() {
 
-    this.foldingStartMarker = /\b(function|local\s+function|then|do|repeat)\b|{[ \t]*$|\[\[/;
-    this.foldingStopMarker = /\bend\b|^\s*}|\]\]/;
-    
+    this.foldingStartMarker = /\b(function|then|do|repeat)\b|{\s*$|(\[=*\[)/;
+    this.foldingStopMarker = /\bend\b|^\s*}|\]=*\]/;
+
+    this.getFoldWidget = function(session, foldStyle, row) {
+        var line = session.getLine(row);
+        var isStart = this.foldingStartMarker.test(line);
+        var isEnd = this.foldingStopMarker.test(line);
+
+        if (isStart && !isEnd) {
+            var match = line.match(this.foldingStartMarker);
+            if (match[1]) {
+                if (session.getTokenAt(row, match.index + 1).type == "keyword")
+                    return "start";
+            } else if (match[2]) {
+                var type = session.getTokenAt(row + 1, 0).type
+                if (type == "comment" || type == "string")
+                    return "start";
+            } else {
+                return "start";
+            }
+        }
+        if (foldStyle != "markbeginend" || !isEnd || isStart && isEnd)
+            return "";
+
+        var match = line.match(this.foldingStopMarker);
+        if (match[0] == "end") {
+            if (session.getTokenAt(row, match.index + 1).type == "keyword")
+                return "end";
+        } else if (match[0][0] == "]") {
+            var type = session.getTokenAt(row - 1, 0).type
+            if (type == "comment" || type == "string")
+                return "end";
+        } else
+            return "end";
+    };
+
     this.getFoldWidgetRange = function(session, foldStyle, row) {
         var lines = session.doc.getAllLines(row);
         var line = lines[row];