diff --git a/src/vs/workbench/parts/files/browser/views/explorerViewModel.ts b/src/vs/workbench/parts/files/browser/views/explorerViewModel.ts
index b3a15cc0dd1bb5150ffd4b9a837f058123cbaa86..8826ec024dfa29dfa4ce4475886574e85d930191 100644
--- a/src/vs/workbench/parts/files/browser/views/explorerViewModel.ts
+++ b/src/vs/workbench/parts/files/browser/views/explorerViewModel.ts
@@ -6,6 +6,7 @@
 import assert = require('vs/base/common/assert');
 import types = require('vs/base/common/types');
 import URI from 'vs/base/common/uri';
+import {isLinux} from 'vs/base/common/platform';
 import paths = require('vs/base/common/paths');
 import {guessMimeTypes} from 'vs/base/common/mime';
 import {IFileStat} from 'vs/platform/files/common/files';
@@ -273,7 +274,7 @@ export class FileStat implements IFileStat {
 	public find(resource: URI): FileStat {
 
 		// Return if path found
-		if (resource.toString() === this.resource.toString()) {
+		if (this.fileResourceEquals(resource, this.resource)) {
 			return this;
 		}
 
@@ -285,7 +286,7 @@ export class FileStat implements IFileStat {
 		for (let i = 0; i < this.children.length; i++) {
 			let child = this.children[i];
 
-			if (resource.toString() === child.resource.toString()) {
+			if (this.fileResourceEquals(resource, child.resource)) {
 				return child;
 			}
 
@@ -296,6 +297,15 @@ export class FileStat implements IFileStat {
 
 		return null; //Unable to find
 	}
+
+	private fileResourceEquals(r1: URI, r2: URI) {
+		const identityEquals = (r1.toString() === r2.toString());
+		if (isLinux || identityEquals) {
+			return identityEquals;
+		}
+
+		return r1.toString().toLowerCase() === r2.toString().toLowerCase();
+	}
 }
 
 /* A helper that can be used to show a placeholder when creating a new stat */
diff --git a/src/vs/workbench/parts/files/test/browser/viewModel.test.ts b/src/vs/workbench/parts/files/test/browser/viewModel.test.ts
index 0b28a8e1774c7b1dae799a315088686278592a85..53899fe072e24625c2b36f69768aec8283ec946c 100644
--- a/src/vs/workbench/parts/files/test/browser/viewModel.test.ts
+++ b/src/vs/workbench/parts/files/test/browser/viewModel.test.ts
@@ -216,6 +216,32 @@ suite('Files - View Model', () => {
 		assert.strictEqual(s1.find(toResource('/')), s1);
 	});
 
+	test("Find with mixed case", function() {
+		let d = new Date().getTime();
+
+		let s1 = createStat("/", "/", true, false, 8096, d, "text/plain");
+		let s2 = createStat("/path", "path", true, false, 8096, d, "text/plain");
+		let s3 = createStat("/path/to", "to", true, false, 8096, d, "text/plain");
+		let s4 = createStat("/path/to/stat", "stat", true, false, 8096, d, "text/plain");
+
+		let child1 = createStat("/path/to/stat/foo", "foo", true, false, 8096, d, "text/plain");
+		let child2 = createStat("/path/to/stat/foo/bar.html", "bar.html", false, false, 8096, d, "text/html");
+
+		s1.addChild(s2);
+		s2.addChild(s3);
+		s3.addChild(s4);
+		s4.addChild(child1);
+		child1.addChild(child2);
+
+		if (isLinux) { // linux is case sensitive
+			assert.ok(!s1.find(toResource('/path/to/stat/Foo')));
+			assert.ok(!s1.find(toResource('/Path/to/stat/foo/bar.html')));
+		} else {
+			assert.ok(s1.find(toResource('/path/to/stat/Foo')));
+			assert.ok(s1.find(toResource('/Path/to/stat/foo/bar.html')));
+		}
+	});
+
 	test("Validate File Name (For Create)", function() {
 		let d = new Date().getTime();
 		let s = createStat("/path/to/stat", "sName", true, true, 8096, d, "text/plain");
diff --git a/src/vs/workbench/services/files/node/fileService.ts b/src/vs/workbench/services/files/node/fileService.ts
index fa104c65a4c505614d52af0f13870bc59fa26a30..ef3be5934bce99d85e3de85921b58bdfbd63381d 100644
--- a/src/vs/workbench/services/files/node/fileService.ts
+++ b/src/vs/workbench/services/files/node/fileService.ts
@@ -636,6 +636,7 @@ export class StatResolver {
 			}
 
 			return new TPromise((c, e) => {
+
 				// Load children
 				this.resolveChildren(this.resource.fsPath, absoluteTargetPaths, options && options.resolveSingleChildDescendants, (children) => {
 					children = arrays.coalesce(children); // we dont want those null childs (could be permission denied when reading a child)
@@ -706,7 +707,7 @@ export class StatResolver {
 						let resolveFolderChildren = false;
 						if (files.length === 1 && resolveSingleChildDescendants) {
 							resolveFolderChildren = true;
-						} else if (childCount > 0 && absoluteTargetPaths && absoluteTargetPaths.some((targetPath) => targetPath.indexOf(fileResource.fsPath) === 0)) {
+						} else if (childCount > 0 && absoluteTargetPaths && absoluteTargetPaths.some((targetPath) => basePaths.isEqualOrParent(targetPath, fileResource.fsPath))) {
 							resolveFolderChildren = true;
 						}
 
diff --git a/src/vs/workbench/services/files/test/node/resolver.test.ts b/src/vs/workbench/services/files/test/node/resolver.test.ts
index e54f31475ff788eea6cde588a7bc63ddf8ee2bc1..d20d009f19fc219a2fced21df66ee4534f92ea0e 100644
--- a/src/vs/workbench/services/files/test/node/resolver.test.ts
+++ b/src/vs/workbench/services/files/test/node/resolver.test.ts
@@ -11,6 +11,7 @@ import assert = require('assert');
 
 import {StatResolver} from 'vs/workbench/services/files/node/fileService';
 import uri from 'vs/base/common/uri';
+import {isLinux} from 'vs/base/common/platform';
 import utils = require('vs/workbench/services/files/test/node/utils');
 
 function create(relativePath: string): StatResolver {
@@ -106,6 +107,36 @@ suite('Stat Resolver', () => {
 		.done(() => done(), done);
 	});
 
+	test('resolve directory - resolveTo single directory - mixed casing', function(done: () => void) {
+		let resolver = create('/');
+
+		resolver.resolve({ resolveTo: [toResource('other/Deep')] }).then(result => {
+			assert.ok(result);
+			assert.ok(result.children);
+			assert.ok(result.hasChildren);
+			assert.ok(result.isDirectory);
+
+			let children = result.children;
+			assert.equal(children.length, 4);
+
+			let other = utils.getByName(result, 'other');
+			assert.ok(other);
+			assert.ok(other.hasChildren);
+
+			let deep = utils.getByName(other, 'deep');
+			if (isLinux) { // Linux has case sensitive file system
+				assert.ok(deep);
+				assert.ok(deep.hasChildren);
+				assert.ok(!deep.children); // not resolved because we got instructed to resolve other/Deep with capital D
+			} else {
+				assert.ok(deep);
+				assert.ok(deep.hasChildren);
+				assert.equal(deep.children.length, 4);
+			}
+		})
+		.done(() => done(), done);
+	});
+
 	test('resolve directory - resolveTo multiple directories', function(done: () => void) {
 		let resolver = create('/');