diff --git a/src/vs/workbench/contrib/files/browser/files.contribution.ts b/src/vs/workbench/contrib/files/browser/files.contribution.ts
index 4e4375262cac5110119275ca6b5e3620de0c9a2f..25f5a95c4e318d2b9cbc2b3cb9f12e4164cc1545 100644
--- a/src/vs/workbench/contrib/files/browser/files.contribution.ts
+++ b/src/vs/workbench/contrib/files/browser/files.contribution.ts
@@ -427,7 +427,7 @@ configurationRegistry.registerConfiguration({
 		'explorer.compressSingleChildFolders': {
 			'type': 'boolean',
 			'description': nls.localize('compressSingleChildFolders', "Controls whether the explorer should compress single child folders in a combined tree element. Useful for Java project folder structures, for example."),
-			'default': false
+			'default': true
 		},
 	}
 });