diff --git a/demo/kitchen-sink/demo.js b/demo/kitchen-sink/demo.js
index ab059f20..78fbd883 100644
--- a/demo/kitchen-sink/demo.js
+++ b/demo/kitchen-sink/demo.js
@@ -548,95 +548,6 @@ exports.launch = function(env) {
         }
     });
 
-    canon.addCommand({
-        name: "fold",
-        bindKey: {
-            win: "Alt-L",
-            mac: "Alt-L",
-            sender: "editor"
-        },
-        exec: function(env) {
-            toggleFold(env, false);
-        }
-    });
-
-    canon.addCommand({
-        name: "unfold",
-        bindKey: {
-            win: "Alt-Shift-L",
-            mac: "Alt-Shift-L",
-            sender: "editor"
-        },
-        exec: function(env) {
-            toggleFold(env, true);
-        }
-    });
-
-    function isCommentRow(row) {
-        var session = env.editor.session;
-        var token;
-        var tokens = session.getTokens(row, row)[0].tokens;
-        var c = 0;
-        for (var i = 0; i < tokens.length; i++) {
-            token = tokens[i];
-            if (/^comment/.test(token.type)) {
-                return c;
-            } else if (!/^text/.test(token.type)) {
-                return false;
-            }
-            c += token.value.length;
-        }
-        return false;
-    }
-
-    function toggleFold(env, tryToUnfold) {
-        var session = env.editor.session;
-        var selection = env.editor.selection;
-        var range = selection.getRange();
-        var addFold;
-
-        if(range.isEmpty()) {
-            var br = session.findMatchingBracket(range.start);
-            var fold = session.getFoldAt(range.start.row, range.start.column);
-            var column;
-
-            if (fold) {
-                session.expandFold(fold);
-                selection.setSelectionRange(fold.range);
-            } else if (br) {
-                if (range.compare(br.row, br.column) == 1)
-                    range.end = br;
-                else
-                    range.start = br;
-                addFold = true;
-            } else if ((column = isCommentRow(range.start.row)) !== false) {
-                var firstCommentRow = range.start.row;
-                var lastCommentRow = range.start.row;
-                var t;
-                while ((t = isCommentRow(firstCommentRow - 1)) !== false) {
-                    firstCommentRow --;
-                    column = t;
-                }
-                while (isCommentRow(lastCommentRow + 1) !== false) {
-                    lastCommentRow ++;
-                }
-                range.start.row = firstCommentRow;
-                range.start.column = column + 2;
-                range.end.row = lastCommentRow;
-                range.end.column = session.getLine(lastCommentRow).length - 1;
-                addFold = true;
-            }
-        } else {
-            addFold = true;
-        }
-        if (addFold) {
-            var placeHolder = session.getTextRange(range);
-            if(placeHolder.length < 3)
-                return;
-            placeHolder = placeHolder.trim().substring(0, 3).replace(' ','','g') + "...";
-            session.addFold(placeHolder, range);
-        }
-    }
 };
 
 var themes = {};
diff --git a/lib/ace/commands/default_commands.js b/lib/ace/commands/default_commands.js
index a09b8909..99eec74c 100644
--- a/lib/ace/commands/default_commands.js
+++ b/lib/ace/commands/default_commands.js
@@ -365,4 +365,33 @@ canon.addCommand({
     exec: function(env, args, request) { env.editor.transposeLetters(); }
 });
 
+canon.addCommand({
+    name: "fold",
+    bindKey: bindKey("Alt-L", "Alt-L"),
+    exec: function(env) {
+        env.editor.session.toggleFold(false);
+    }
+});
+canon.addCommand({
+    name: "unfold",
+    bindKey: bindKey("Alt-Shift-L", "Alt-Shift-L"),
+    exec: function(env) {
+        env.editor.session.toggleFold(true);
+    }
+});
+canon.addCommand({
+    name: "foldall",
+    bindKey: bindKey("Alt-Shift-0", "Alt-Shift-0"),
+    exec: function(env) {
+        env.editor.session.foldAll();
+    }
+});
+canon.addCommand({
+    name: "unfoldall",
+    bindKey: bindKey("Alt-Shift-0", "Alt-Shift-0"),
+    exec: function(env) {
+        env.editor.session.unFoldAll();
+    }
+});
+
 });
diff --git a/lib/ace/edit_session/folding.js b/lib/ace/edit_session/folding.js
index bfbd62e3..d3f442cf 100644
--- a/lib/ace/edit_session/folding.js
+++ b/lib/ace/edit_session/folding.js
@@ -52,7 +52,7 @@ function Folding() {
         var foldLine = this.getFoldLine(row);
         if (!foldLine)
             return null;
-            
+
         var folds = foldLine.folds;
         for (var i = 0; i < folds.length; i++) {
             var fold = folds[i];
@@ -134,7 +134,7 @@ function Folding() {
         var foldLine = foldLine || this.getFoldLine(row);
         if (!foldLine)
             return null;
-            
+
         var lastFold = {
             end: { column: 0 }
         };
@@ -251,7 +251,7 @@ function Folding() {
         var startColumn = fold.start.column;
         var endRow = fold.end.row;
         var endColumn = fold.end.column;
-        
+
         // --- Some checking ---
         if (fold.placeholder.length < 2)
             throw "Placeholder has to be at least 2 characters";
@@ -489,8 +489,65 @@ function Folding() {
 
         return fd;
     };
-}
 
+    this.toggleFold = function(tryToUnfold) {
+        var selection = this.selection;
+        var range = selection.getRange();
+
+        if(range.isEmpty()) {
+            var cursor = range.start
+            var fold = this.getFoldAt(cursor.row, cursor.column);
+            var bracketPos, column;
+
+            if (fold) {
+                this.expandFold(fold);
+                return;
+            } else if (bracketPos = this.findMatchingBracket(cursor)) {
+                if (range.comparePoint(bracketPos) == 1) {
+                    range.end = bracketPos;
+                } else {
+                    range.start = bracketPos;
+                    range.start.column++;
+                    range.end.column--;
+                }
+            } else if (bracketPos = this.findMatchingBracket({row: cursor.row, column: cursor.column + 1})) {
+                if (range.comparePoint(bracketPos) == 1)
+                    range.end = bracketPos;
+                else
+                    range.start = bracketPos;
+
+                range.start.column++;
+            }
+        } else {
+            var folds = this.getFoldsInRange(range);
+            if (tryToUnfold && folds.length) {
+                this.expandFolds(folds);
+                return;
+            } else if (folds.length == 1 ) {
+                fold = folds[0];
+            }
+        }
+
+        if (!fold)
+            fold = this.getFoldAt(range.start.row, range.start.column);
+
+        if (fold && fold.range.toString() == range.toString()){
+            this.expandFold(fold);
+            return
+        }
+
+
+        var placeholder = "...";
+        if (!range.isMultiLine()) {
+            placeholder = this.getTextRange(range);
+            if(placeholder.length < 4)
+                return;
+            placeholder = placeholder.trim().substring(0, 2) + ".."
+        }
+
+        this.addFold(placeholder, range);
+    };
+}
 exports.Folding = Folding;
 
 });
\ No newline at end of file