diff --git a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.cpp b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.cpp
index 98837ec8..a405dc65 100644
--- a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.cpp
+++ b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.cpp
@@ -133,7 +133,14 @@ BOOL CALLBACK ProjectPanel::run_dlgProc(UINT message, WPARAM wParam, LPARAM lPar
 			popupMenuCmd(LOWORD(wParam));
 			break;
 		}
-
+/*
+#define NPPM_INTERNAL_ISDRAGGING 40926
+		case NPPM_INTERNAL_ISDRAGGING:
+		{
+			setDraggingBool(true);
+			break;
+		}
+*/
 		case WM_DESTROY:
         {
 			_treeView.destroy();
@@ -207,6 +214,8 @@ void ProjectPanel::initMenus()
 	edit_remove = pNativeSpeaker->getProjectPanelLangMenuStr("FolderMenu", IDM_PROJECT_DELETEFOLDER, PM_EDITREMOVE);
 
 	_hFolderMenu = ::CreatePopupMenu();
+	::InsertMenu(_hFolderMenu, 0, MF_BYCOMMAND, IDM_PROJECT_MOVEUP,        TEXT("Move Up"));
+	::InsertMenu(_hFolderMenu, 0, MF_BYCOMMAND, IDM_PROJECT_MOVEDOWN,        TEXT("Move Down"));
 	::InsertMenu(_hFolderMenu, 0, MF_BYCOMMAND, IDM_PROJECT_RENAME,        edit_rename.c_str());
 	::InsertMenu(_hFolderMenu, 0, MF_BYCOMMAND, IDM_PROJECT_NEWFOLDER,     edit_addfolder.c_str());
 	::InsertMenu(_hFolderMenu, 0, MF_BYCOMMAND, IDM_PROJECT_ADDFILES,      edit_addfiles.c_str());
@@ -218,6 +227,8 @@ void ProjectPanel::initMenus()
 	generic_string edit_modifyfile = pNativeSpeaker->getProjectPanelLangMenuStr("FileMenu", IDM_PROJECT_MODIFYFILEPATH, PM_EDITMODIFYFILE);
 
 	_hFileMenu = ::CreatePopupMenu();
+	::InsertMenu(_hFileMenu, 0, MF_BYCOMMAND, IDM_PROJECT_MOVEUP,        TEXT("Move Up"));
+	::InsertMenu(_hFileMenu, 0, MF_BYCOMMAND, IDM_PROJECT_MOVEDOWN,        TEXT("Move Down"));
 	::InsertMenu(_hFileMenu, 0, MF_BYCOMMAND, IDM_PROJECT_RENAME, edit_rename.c_str());
 	::InsertMenu(_hFileMenu, 0, MF_BYCOMMAND, IDM_PROJECT_DELETEFILE, edit_remove.c_str());
 	::InsertMenu(_hFileMenu, 0, MF_BYCOMMAND, IDM_PROJECT_MODIFYFILEPATH, edit_modifyfile.c_str());
@@ -701,7 +712,7 @@ void ProjectPanel::showContextMenu(int x, int y)
 	if(tvHitInfo.hItem != NULL)
 	{
 		// Make item selected
-		TreeView_SelectItem(_treeView.getHSelf(), tvHitInfo.hItem);
+		_treeView.selectItem(tvHitInfo.hItem);
 
 		// get clicked item type
 		NodeType nodeType = getNodeType(tvHitInfo.hItem);
@@ -830,7 +841,21 @@ void ProjectPanel::popupMenuCmd(int cmdID)
 			setWorkSpaceDirty(true);
 		}
 		break;
-		
+
+		case IDM_PROJECT_MOVEDOWN :
+		{
+			_treeView.moveDown(hTreeItem);
+			setWorkSpaceDirty(true);
+		}
+		break;
+
+		case IDM_PROJECT_MOVEUP :
+		{
+			_treeView.moveUp(hTreeItem);
+			setWorkSpaceDirty(true);
+		}
+		break;
+
 		case IDM_PROJECT_ADDFILES :
 		{
 			addFiles(hTreeItem);
@@ -920,7 +945,7 @@ void ProjectPanel::popupMenuCmd(int cmdID)
 
 		case IDM_PROJECT_DELETEFOLDER :
 		{
-			HTREEITEM parent = TreeView_GetParent(_treeView.getHSelf(), hTreeItem);
+			HTREEITEM parent = _treeView.getParent(hTreeItem);
 
 			if (_treeView.getChildFrom(hTreeItem) != NULL)
 			{
@@ -943,7 +968,7 @@ void ProjectPanel::popupMenuCmd(int cmdID)
 
 		case IDM_PROJECT_DELETEFILE :
 		{
-			HTREEITEM parent = TreeView_GetParent(_treeView.getHSelf(), hTreeItem);
+			HTREEITEM parent = _treeView.getParent(hTreeItem);
 
 			TCHAR str2display[MAX_PATH] = TEXT("Are you sure to remove this file from the project?");
 			if (::MessageBox(_hSelf, str2display, TEXT("Remove file from projet"), MB_YESNO) == IDYES)
diff --git a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.h b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.h
index 10cdae5c..b4776c44 100644
--- a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.h
+++ b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel.h
@@ -90,7 +90,15 @@ public:
 		return _isDirty;
 	};
 	void checkIfNeedSave(const TCHAR *title);
+/*
+	HWND getTreeHandle() {
+		return _treeView.getHSelf();
+	};
 
+	void setDraggingBool(bool val){
+		_treeView.setDraggingBool(val);
+	};
+*/
 protected:
 	TreeView _treeView;
 	HIMAGELIST _hImaLst;
diff --git a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel_rc.h b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel_rc.h
index d58e4c65..f0dfd975 100644
--- a/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel_rc.h
+++ b/PowerEditor/src/WinControls/ProjectPanel/ProjectPanel_rc.h
@@ -28,6 +28,8 @@
   #define IDM_PROJECT_DELETEFILE   (IDD_PROJECTPANEL_MENU + 5)
   #define IDM_PROJECT_MODIFYFILEPATH   (IDD_PROJECTPANEL_MENU + 6)
   #define IDM_PROJECT_ADDFILESRECUSIVELY   (IDD_PROJECTPANEL_MENU + 7)
+  #define IDM_PROJECT_MOVEUP       (IDD_PROJECTPANEL_MENU + 8)
+  #define IDM_PROJECT_MOVEDOWN     (IDD_PROJECTPANEL_MENU + 9)
 
 #define	IDD_PROJECTPANEL_MENUWS	(IDD_PROJECTPANEL + 20)
   #define IDM_PROJECT_NEWPROJECT    (IDD_PROJECTPANEL_MENUWS + 1)
diff --git a/PowerEditor/src/WinControls/ProjectPanel/TreeView.cpp b/PowerEditor/src/WinControls/ProjectPanel/TreeView.cpp
index bc3eaf1f..d37769b2 100644
--- a/PowerEditor/src/WinControls/ProjectPanel/TreeView.cpp
+++ b/PowerEditor/src/WinControls/ProjectPanel/TreeView.cpp
@@ -218,13 +218,6 @@ void TreeView::dragItem(HWND parentHandle, int x, int y)
     HTREEITEM targetItem = (HTREEITEM)::SendMessage(_hSelf, TVM_HITTEST, (WPARAM)0, (LPARAM)&hitTestInfo);
     if(targetItem)
     {
-	/*
-		if (canBeDropped(_draggedItem, targetItem))
-			// highlight the target of drag-and-drop operation
-			::SendMessage(_hSelf, TVM_SELECTITEM, (WPARAM)(TVGN_DROPHILITE), (LPARAM)targetItem);
-		else
-			SendMessage(_hSelf,TVM_SELECTITEM,TVGN_CARET,(LPARAM)targetItem);
-	*/
 		::SendMessage(_hSelf, TVM_SELECTITEM, (WPARAM)(TVGN_DROPHILITE), (LPARAM)targetItem);
     }
 
@@ -285,7 +278,7 @@ bool TreeView::isDescendant(HTREEITEM targetItem, HTREEITEM draggedItem)
 	if (TreeView_GetRoot(_hSelf) == targetItem)
 		return false;
 
-	HTREEITEM parent = TreeView_GetParent(_hSelf, targetItem);
+	HTREEITEM parent = getParent(targetItem);
 	if (parent == draggedItem)
 		return true;
 	
@@ -294,7 +287,7 @@ bool TreeView::isDescendant(HTREEITEM targetItem, HTREEITEM draggedItem)
 
 bool TreeView::isParent(HTREEITEM targetItem, HTREEITEM draggedItem)
 {
-	HTREEITEM parent = TreeView_GetParent(_hSelf, draggedItem);
+	HTREEITEM parent = getParent(draggedItem);
 	if (parent == targetItem)
 		return true;
 	return false;
@@ -323,6 +316,95 @@ void TreeView::moveTreeViewItem(HTREEITEM draggedItem, HTREEITEM targetItem)
 	removeItem(draggedItem);
 }
 
+bool TreeView::moveDown(HTREEITEM itemToMove)
+{
+	HTREEITEM hItemToUp = getNextSibling(itemToMove);
+	if (!hItemToUp)
+		return false;
+	return swapTreeViewItem(itemToMove, hItemToUp);
+}
+
+bool TreeView::moveUp(HTREEITEM itemToMove)
+{
+	HTREEITEM hItemToDown = getPrevSibling(itemToMove);
+	if (!hItemToDown)
+		return false;
+	return swapTreeViewItem(hItemToDown, itemToMove);
+}
+
+bool TreeView::swapTreeViewItem(HTREEITEM itemGoDown, HTREEITEM itemGoUp)
+{
+	HTREEITEM selectedItem = getSelection();
+	int itemSelected = selectedItem == itemGoDown?1:(selectedItem == itemGoUp?2:0);
+
+	// get previous and next for both items with () function
+	HTREEITEM itemTop = getPrevSibling(itemGoDown);
+	itemTop = itemTop?itemTop:(HTREEITEM)TVI_FIRST;
+	//HTREEITEM itemBottom = getNextSibling(itemGoUp);
+	HTREEITEM parentGoDown = getParent(itemGoDown);
+	HTREEITEM parentGoUp = getParent(itemGoUp);
+
+	if (parentGoUp != parentGoDown)
+		return false;
+
+	// get both item infos
+	TCHAR textBufferUp[MAX_PATH];
+	TCHAR textBufferDown[MAX_PATH];
+	TVITEM tvUpItem;
+	TVITEM tvDownItem;
+	tvUpItem.mask = TVIF_TEXT | TVIF_PARAM | TVIF_IMAGE | TVIF_SELECTEDIMAGE;
+	tvDownItem.mask = TVIF_TEXT | TVIF_PARAM | TVIF_IMAGE | TVIF_SELECTEDIMAGE;
+	tvUpItem.pszText = textBufferUp;
+	tvDownItem.pszText = textBufferDown;
+	tvUpItem.cchTextMax = MAX_PATH;
+	tvDownItem.cchTextMax = MAX_PATH;
+	tvUpItem.hItem = itemGoUp;
+	tvDownItem.hItem = itemGoDown;
+	SendMessage(_hSelf, TVM_GETITEM, 0,(LPARAM)&tvUpItem);
+	SendMessage(_hSelf, TVM_GETITEM, 0,(LPARAM)&tvDownItem);
+
+	// make copy recursively for both items
+
+	if (tvUpItem.lParam)
+		tvUpItem.lParam = (LPARAM)(new generic_string(*((generic_string *)(tvUpItem.lParam))));
+	if (tvDownItem.lParam)
+		tvDownItem.lParam = (LPARAM)(new generic_string(*((generic_string *)(tvDownItem.lParam))));
+
+	// add 2 new items
+    TVINSERTSTRUCT tvInsertUp;
+	tvInsertUp.item = tvUpItem;
+	tvInsertUp.hInsertAfter = itemTop;
+	tvInsertUp.hParent = parentGoUp;
+	HTREEITEM hTreeParent1stInserted = (HTREEITEM)::SendMessage(_hSelf, TVM_INSERTITEM, 0, (LPARAM)(LPTVINSERTSTRUCT)&tvInsertUp);
+	dupTree(itemGoUp, hTreeParent1stInserted);
+
+	TVINSERTSTRUCT tvInsertDown;
+	tvInsertDown.item = tvDownItem;
+	tvInsertDown.hInsertAfter = hTreeParent1stInserted;
+	tvInsertDown.hParent = parentGoDown;
+	HTREEITEM hTreeParent2ndInserted = (HTREEITEM)::SendMessage(_hSelf, TVM_INSERTITEM, 0, (LPARAM)(LPTVINSERTSTRUCT)&tvInsertDown);
+	dupTree(itemGoDown, hTreeParent2ndInserted);
+
+	// remove 2 old items
+	removeItem(itemGoUp);
+	removeItem(itemGoDown);
+
+	// Restore the selection if needed
+	if (itemSelected != 0)
+	{
+		if (itemSelected == 1)
+		{
+			selectItem(hTreeParent2ndInserted);
+		}
+		else if (itemSelected == 2)
+		{
+			selectItem(hTreeParent1stInserted);
+		}
+	}
+	return true;
+}
+
+
 bool TreeView::canDropIn(HTREEITEM targetItem)
 {
 	TVITEM tvItem;
diff --git a/PowerEditor/src/WinControls/ProjectPanel/TreeView.h b/PowerEditor/src/WinControls/ProjectPanel/TreeView.h
index 075079a0..2776ed03 100644
--- a/PowerEditor/src/WinControls/ProjectPanel/TreeView.h
+++ b/PowerEditor/src/WinControls/ProjectPanel/TreeView.h
@@ -38,12 +38,21 @@ public:
 	HTREEITEM getSelection() const {
 		return TreeView_GetSelection(_hSelf);
 	};
+	bool selectItem(HTREEITEM hTreeItem2Select) const {
+		return TreeView_SelectItem(_hSelf, hTreeItem2Select) == TRUE;
+	};
 	HTREEITEM getRoot() const {
 		return TreeView_GetRoot(_hSelf);
 	};
+	HTREEITEM getParent(HTREEITEM hItem) const {
+		return TreeView_GetParent(_hSelf, hItem);
+	};
 	HTREEITEM getNextSibling(HTREEITEM hItem) const {
 		return TreeView_GetNextSibling(_hSelf, hItem);
 	};
+	HTREEITEM getPrevSibling(HTREEITEM hItem) const {
+		return TreeView_GetPrevSibling(_hSelf, hItem);
+	};
 	void expand(HTREEITEM hItem) const {
 		TreeView_Expand(_hSelf, hItem, TVE_EXPAND);
 	};
@@ -66,6 +75,14 @@ public:
 	void addCanNotDragOutList(int val2set) {
 		_canNotDragOutList.push_back(val2set);
 	};
+/*
+	void setDraggingBool(bool val){
+		_isItemDragged = val;
+	};
+*/
+	bool moveDown(HTREEITEM itemToMove);
+	bool moveUp(HTREEITEM itemToMove);
+	bool swapTreeViewItem(HTREEITEM itemGoDown, HTREEITEM itemGoUp);
 
 protected:
 	WNDPROC _defaultProc;