diff --git a/CHANGELOG.md b/CHANGELOG.md
index e153f6a..26a9858 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,12 +1,20 @@
 # Change Log
 
-## 1.0.0
-- Initial release
+## 1.1.0
+- Added option to show Favorite folder content (top level files). It is the response to the feature request #1.
+This feature is not a substitution of the Workspace explorer view, which does by far superior job. It's just a convenience measure for a quick access of the top level folder files.  The feature can be enabled/disabled with `favorites.showFolderFiles` setting.
 
-## 1.0.1
-- Updated images
+Note, the feature overall experience is subject to the limitations/defects of the VSCode tree view. These defects are officially reported and being dealt with by the VSCode team:
+https://github.com/Microsoft/vscode/issues/34130
+https://github.com/patrys/vscode-code-outline/issues/24
 
 ## 1.0.2
 - Added support for folders
 - Items icons reflect if file/folder exist or not
 - Added context menu for moving items up/down in the list 
+
+## 1.0.1
+- Updated images
+
+## 1.0.0
+- Initial release
diff --git a/README.md b/README.md
index 144dece..110b912 100644
--- a/README.md
+++ b/README.md
@@ -1,7 +1,7 @@
 # Favorites - VSCode Extension
 
 Manage and quickly access frequently used files. 
-<hr/>
+<hr/>>
 
 This simple extension allows in adding, removing and managing documents in the globally maintained "Favorites" list. 
 
@@ -19,7 +19,15 @@ The functionality is self explanatory and includes following features:
 
 ![image](https://raw.githubusercontent.com/oleg-shilo/Favorites.vscode/master/resources/images/favorites_vscode.gif)
 
-Note: by default VSCode opens any file clicked from the  _Favorites_ list in the so called "preview mode". Thus the document tabs are reused and every new file is opened in the same tab. If you prefer to open a clicked _Favorites_ document in ane tab then you need to disable document the previewMode is the settings:
-1. Use _Command Palette_ to open your settings file ("Preferences: Open User Settings")
-2. Add the "workbench.editor.enablePreview" property, and set it's value to _false_. 
+The extension also allow showing Favorite folder item content (top level files). 
+This feature is not a substitution of the Workspace explorer view, which does by far superior job. It's just a convenience measure for a quick access of the top level folder files. The feature can be enabled/disabled with `favorites.showFolderFiles` setting.
+
+## Limitations
+* _ShowFolderFiles_ feature overall experience is subject to the limitations/defects of the VSCode tree view. These defects are officially reported and being dealt with by the VSCode team:<br/>
+https://github.com/Microsoft/vscode/issues/34130<br/>
+https://github.com/patrys/vscode-code-outline/issues/24<br/>
+
+* By default VSCode opens any file clicked from the  _Favorites_ list in the so called "preview mode". Thus the document tabs are reused and every new file is opened in the same tab. If you prefer to open a clicked _Favorites_ document in a new tab then you need to disable document the previewMode is the settings:
+  1. Use _Command Palette_ to open your settings file ("Preferences: Open User Settings")
+  2. Add the "workbench.editor.enablePreview" property, and set it's value to _false_. 
 
diff --git a/package.json b/package.json
index 9cf656e..128d3d8 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
     "name": "favorites",
     "displayName": "Favorites",
     "description": "Manage and quickly access frequently used documents",
-    "version": "1.0.2",
+    "version": "1.1.0",
     "publisher": "oleg-shilo",
     "engines": {
         "vscode": "^1.13.0"
@@ -121,6 +121,17 @@
             ]
         }
     },
+    "configuration": {
+        "type": "object",
+        "title": "Favorites configuration",
+        "properties": {
+            "favorites.showFolderFiles": {
+                "type": "boolean",
+                "default": true,
+                "description": "Show folder children. The children are the top-level files present in the folder."
+            }
+        }
+    },
     "scripts": {
         "vscode:prepublish": "tsc -p ./",
         "compile": "tsc -watch -p ./",
diff --git a/src/extension.ts b/src/extension.ts
index d0eb632..e2341df 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -4,19 +4,19 @@ import * as vscode from 'vscode';
 import * as os from 'os';
 import * as path from 'path';
 import * as fs from 'fs';
-import { FavoritesTreeProvider, Dependency } from './tree_view';
+import { FavoritesTreeProvider, FavoriteItem } from './tree_view';
 import { Uri, commands } from 'vscode';
 
 function get_favorites_items() {
     return Utils.read_all_lines(Utils.fav_file).filter(x => x != '');
 }
 
-function add_workspace(element: Dependency) {
+function add_workspace(element: FavoriteItem) {
     if (vscode.workspace.rootPath) 
         _add(vscode.workspace.rootPath);
 }
 
-function add(element: Dependency) {
+function add(element: FavoriteItem) {
     let document = vscode.window.activeTextEditor.document.fileName;
     _add(document);
 }
@@ -37,7 +37,7 @@ function _add(document: string) {
     }
 }
 
-function up(element: Dependency) {
+function up(element: FavoriteItem) {
 
     let lines = Utils.read_all_lines(Utils.fav_file).filter(x => x != '');
     
@@ -52,7 +52,7 @@ function up(element: Dependency) {
     commands.executeCommand('favorites.refresh');
 }
 
-function down(element: Dependency) {
+function down(element: FavoriteItem) {
 
     let lines = Utils.read_all_lines(Utils.fav_file).filter(x => x != '');
     
@@ -67,7 +67,7 @@ function down(element: Dependency) {
     commands.executeCommand('favorites.refresh');
 }
 
-function remove(element: Dependency) {
+function remove(element: FavoriteItem) {
     let lines: string[] = [];
 
     Utils.read_all_lines(Utils.fav_file)
@@ -111,7 +111,7 @@ class Utils {
             Utils._fav_file = Utils.ensure_fav_file();
         return Utils._fav_file;
     }
-
+    
     public static read_all_lines(file: string): string[] {
         let text = fs.readFileSync(file, 'utf8');
         return text.split(/\r?\n/g);
diff --git a/src/tree_view.ts b/src/tree_view.ts
index 536ea65..e1c5dc8 100644
--- a/src/tree_view.ts
+++ b/src/tree_view.ts
@@ -3,10 +3,10 @@ import * as fs from 'fs';
 import * as path from 'path';
 import { Uri, commands } from "vscode";
 
-export class FavoritesTreeProvider implements vscode.TreeDataProvider<Dependency> {
+export class FavoritesTreeProvider implements vscode.TreeDataProvider<FavoriteItem> {
 
-	private _onDidChangeTreeData: vscode.EventEmitter<Dependency | undefined> = new vscode.EventEmitter<Dependency | undefined>();
-	readonly onDidChangeTreeData: vscode.Event<Dependency | undefined> = this._onDidChangeTreeData.event;
+	private _onDidChangeTreeData: vscode.EventEmitter<FavoriteItem | undefined> = new vscode.EventEmitter<FavoriteItem | undefined>();
+	readonly onDidChangeTreeData: vscode.Event<FavoriteItem | undefined> = this._onDidChangeTreeData.event;
 
 	constructor(private aggregateItems: () => string[]) {
 		vscode.window.onDidChangeActiveTextEditor(editor => {
@@ -21,21 +21,41 @@ export class FavoritesTreeProvider implements vscode.TreeDataProvider<Dependency
 		this._onDidChangeTreeData.fire();
 	}
 
-	getTreeItem(element: Dependency): vscode.TreeItem {
+	getTreeItem(element: FavoriteItem): vscode.TreeItem {
 		return element;
 	}
 
-	getChildren(element?: Dependency): Thenable<Dependency[]> {
+	getChildren(element?: FavoriteItem): Thenable<FavoriteItem[]> {
 		return new Promise(resolve => {
 			if (element) {
-				resolve([]);
+				let nodes = [];
+				let dir = element.context;
+				fs.readdirSync(dir).forEach(fileName => {
+					var file = path.join(dir, fileName);
+					if (fs.lstatSync(file).isFile()) {
+						let node = new FavoriteItem(
+							fileName,
+							vscode.TreeItemCollapsibleState.None,
+							{
+								command: 'vscode.open',
+								title: '',
+								tooltip: file,
+								arguments: [Uri.file(file)],
+							},
+							null,
+							file
+						);
+						nodes.push(node);
+					}
+				})
+				resolve(nodes);
 			} else {
 				resolve(this.getScriptItems());
 			}
 		});
 	}
 
-	private getScriptItems(): Dependency[] {
+	private getScriptItems(): FavoriteItem[] {
 
 		let nodes = [];
 
@@ -44,19 +64,23 @@ export class FavoritesTreeProvider implements vscode.TreeDataProvider<Dependency
 			if (file != '') {
 
 				let commandValue = 'vscode.open';
-				let iconName = 'document.svg'
+				let iconName = 'document.svg';
+				let collapsableState = vscode.TreeItemCollapsibleState.None;
+				let showFolderFiles = vscode.workspace.getConfiguration("favorites").get('showFolderFiles', true);
 
 				try {
-					if (fs.lstatSync(file).isDirectory()) {
+					if (path.isAbsolute(file) && fs.lstatSync(file).isDirectory()) {
 						commandValue = 'vscode.openFolder';
-						iconName='folder.svg'
+						iconName = 'folder.svg';
+						if (showFolderFiles)
+							collapsableState = vscode.TreeItemCollapsibleState.Collapsed;
 					}
 				} catch (error) {
 				}
 
-				let node = new Dependency(
+				let node = new FavoriteItem(
 					path.basename(file),
-					vscode.TreeItemCollapsibleState.None,
+					collapsableState,
 					{
 						command: commandValue,
 						title: '',
@@ -87,7 +111,7 @@ export class FavoritesTreeProvider implements vscode.TreeDataProvider<Dependency
 	}
 }
 
-export class Dependency extends vscode.TreeItem {
+export class FavoriteItem extends vscode.TreeItem {
 
 	constructor(
 		public readonly label: string,