diff --git a/moo/mooedit/Makefile.am b/moo/mooedit/Makefile.am
index b6eb065e..fcb859d0 100644
--- a/moo/mooedit/Makefile.am
+++ b/moo/mooedit/Makefile.am
@@ -1,5 +1,4 @@
-# XXX it needs plugins to be built first but plugins want mooedit-enums.h
-SUBDIRS = gtksourceview plugins language-specs
+SUBDIRS = gtksourceview plugins language-specs .
 
 mooedit_toolsdir = $(MOO_DATA_DIR)
 mooedit_tools_DATA = context.cfg menu.cfg filters.xml
diff --git a/moo/mooedit/glade/mooeditprefs-file.glade b/moo/mooedit/glade/mooeditprefs-file.glade
index 72ef9af7..a6397823 100644
--- a/moo/mooedit/glade/mooeditprefs-file.glade
+++ b/moo/mooedit/glade/mooeditprefs-file.glade
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="UTF-8" standalone="no"?>
 <!DOCTYPE glade-interface SYSTEM "glade-2.0.dtd">
-<!--Generated with glade3 3.0.3 on Fri Jul 20 12:54:00 2007 by muntyan@munt10
+<!--Generated with glade3 3.0.3 on Tue Aug  7 00:09:57 2007 by muntyan@munt10
 	Version: 3.0.0
 	Date: Fri Dec  8 17:47:39 2006
 	User: muntyan
@@ -197,6 +197,59 @@
             <property name="position">2</property>
           </packing>
         </child>
+        <child>
+          <widget class="GtkFrame" id="frame2">
+            <property name="visible">True</property>
+            <property name="border_width">3</property>
+            <property name="label_xalign">0</property>
+            <child>
+              <widget class="GtkAlignment" id="alignment2">
+                <property name="visible">True</property>
+                <property name="bottom_padding">3</property>
+                <property name="left_padding">3</property>
+                <property name="right_padding">3</property>
+                <child>
+                  <widget class="GtkTable" id="table1">
+                    <property name="visible">True</property>
+                    <property name="n_rows">2</property>
+                    <property name="n_columns">1</property>
+                    <child>
+                      <placeholder/>
+                    </child>
+                    <child>
+                      <widget class="GtkCheckButton" id="checkbutton3">
+                        <property name="visible">True</property>
+                        <property name="label" translatable="yes">Open dialog shows current document directory</property>
+                        <property name="use_underline">True</property>
+                        <property name="draw_indicator">True</property>
+                        <property name="moo_prefs_key">open_dialog_follows_doc</property>
+                      </widget>
+                      <packing>
+                        <property name="top_attach">1</property>
+                        <property name="bottom_attach">2</property>
+                        <property name="y_options"></property>
+                      </packing>
+                    </child>
+                  </widget>
+                </child>
+              </widget>
+            </child>
+            <child>
+              <widget class="GtkLabel" id="label3">
+                <property name="visible">True</property>
+                <property name="label" translatable="yes">Dialogs</property>
+              </widget>
+              <packing>
+                <property name="type">label_item</property>
+              </packing>
+            </child>
+          </widget>
+          <packing>
+            <property name="expand">False</property>
+            <property name="fill">False</property>
+            <property name="position">3</property>
+          </packing>
+        </child>
       </widget>
     </child>
   </widget>
diff --git a/moo/mooedit/mooeditdialogs.c b/moo/mooedit/mooeditdialogs.c
index 781d09c6..fb926952 100644
--- a/moo/mooedit/mooeditdialogs.c
+++ b/moo/mooedit/mooeditdialogs.c
@@ -39,18 +39,38 @@ open_dialog_created (G_GNUC_UNUSED MooFileDialog *fd,
 
 GSList *
 _moo_edit_open_dialog (GtkWidget      *widget,
-                       MooFilterMgr   *mgr)
+                       MooFilterMgr   *mgr,
+                       MooEdit        *current_doc)
 {
     MooFileDialog *dialog;
-    const char *start, *encoding;
+    const char *start_dir = NULL;
+    const char *encoding;
     char *new_start;
-    GSList *filenames, *infos = NULL, *l;
+    char *freeme = NULL;
+    GSList *filenames = NULL;
+    GSList *infos = NULL;
+    GSList *l;
 
     moo_prefs_create_key (moo_edit_setting (MOO_EDIT_PREFS_LAST_DIR), MOO_PREFS_STATE, G_TYPE_STRING, NULL);
-    start = moo_prefs_get_filename (moo_edit_setting (MOO_EDIT_PREFS_LAST_DIR));
+
+    if (current_doc && moo_prefs_get_bool (moo_edit_setting (MOO_EDIT_PREFS_DIALOGS_OPEN_FOLLOWS_DOC)))
+    {
+        char *filename = moo_edit_get_filename (current_doc);
+
+        if (filename)
+        {
+            freeme = g_path_get_dirname (filename);
+            start_dir = freeme;
+            g_free (filename);
+        }
+    }
+
+    if (!start_dir)
+        start_dir = moo_prefs_get_filename (moo_edit_setting (MOO_EDIT_PREFS_LAST_DIR));
 
     dialog = moo_file_dialog_new (MOO_FILE_DIALOG_OPEN, widget,
-                                  TRUE, GTK_STOCK_OPEN, start, NULL);
+                                  TRUE, GTK_STOCK_OPEN, start_dir,
+                                  NULL);
     g_object_set (dialog, "enable-encodings", TRUE, NULL);
     g_signal_connect (dialog, "dialog-created", G_CALLBACK (open_dialog_created), NULL);
 
@@ -58,10 +78,7 @@ _moo_edit_open_dialog (GtkWidget      *widget,
         moo_file_dialog_set_filter_mgr (dialog, mgr, "MooEdit");
 
     if (!moo_file_dialog_run (dialog))
-    {
-        g_object_unref (dialog);
-        return NULL;
-    }
+        goto out;
 
     encoding = moo_file_dialog_get_encoding (dialog);
 
@@ -79,8 +96,11 @@ _moo_edit_open_dialog (GtkWidget      *widget,
     moo_prefs_set_filename (moo_edit_setting (MOO_EDIT_PREFS_LAST_DIR), new_start);
     g_free (new_start);
 
+out:
+    g_free (freeme);
     g_object_unref (dialog);
     g_slist_foreach (filenames, (GFunc) g_free, NULL);
+    g_slist_free (filenames);
     return infos;
 }
 
diff --git a/moo/mooedit/mooeditdialogs.h b/moo/mooedit/mooeditdialogs.h
index 5383397a..91fbd58c 100644
--- a/moo/mooedit/mooeditdialogs.h
+++ b/moo/mooedit/mooeditdialogs.h
@@ -31,7 +31,8 @@ MooEditFileInfo *_moo_edit_save_as_dialog           (MooEdit        *edit,
                                                      MooFilterMgr   *mgr,
                                                      const char     *display_basename);
 GSList          *_moo_edit_open_dialog              (GtkWidget      *widget,
-                                                     MooFilterMgr   *mgr);
+                                                     MooFilterMgr   *mgr,
+                                                     MooEdit        *current_doc);
 
 MooEditDialogResponse _moo_edit_save_changes_dialog (MooEdit        *edit);
 MooEditDialogResponse _moo_edit_save_multiple_changes_dialog (GSList *docs,
diff --git a/moo/mooedit/mooeditor.c b/moo/mooedit/mooeditor.c
index 8f5d6a39..aadf8d0f 100644
--- a/moo/mooedit/mooeditor.c
+++ b/moo/mooedit/mooeditor.c
@@ -1271,7 +1271,9 @@ moo_editor_open (MooEditor      *editor,
 
     if (!files)
     {
-        files = _moo_edit_open_dialog (parent, editor->priv->filter_mgr);
+        MooEdit *active = window ? moo_edit_window_get_active_doc (window) : NULL;
+
+        files = _moo_edit_open_dialog (parent, editor->priv->filter_mgr, active);
 
         if (!files)
             return FALSE;
diff --git a/moo/mooedit/mooeditprefs.c b/moo/mooedit/mooeditprefs.c
index 31dab758..42c29e01 100644
--- a/moo/mooedit/mooeditprefs.c
+++ b/moo/mooedit/mooeditprefs.c
@@ -98,6 +98,8 @@ _moo_edit_init_prefs (void)
     NEW_KEY_BOOL (MOO_EDIT_PREFS_MAKE_BACKUPS, FALSE);
     NEW_KEY_BOOL (MOO_EDIT_PREFS_STRIP, FALSE);
 
+    NEW_KEY_BOOL (MOO_EDIT_PREFS_DIALOGS_OPEN_FOLLOWS_DOC, FALSE);
+
     NEW_KEY_STRING (MOO_EDIT_PREFS_COLOR_SCHEME, "kate");
 
     NEW_KEY_BOOL (MOO_EDIT_PREFS_SMART_HOME_END, TRUE);
diff --git a/moo/mooedit/mooeditprefs.h b/moo/mooedit/mooeditprefs.h
index c051dc5b..cb552b73 100644
--- a/moo/mooedit/mooeditprefs.h
+++ b/moo/mooedit/mooeditprefs.h
@@ -65,6 +65,7 @@ const char *moo_edit_setting                (const char     *setting_name);
 
 #define MOO_EDIT_PREFS_DIALOGS                  "dialogs"
 #define MOO_EDIT_PREFS_DIALOG_OPEN              MOO_EDIT_PREFS_DIALOGS "/open"
+#define MOO_EDIT_PREFS_DIALOGS_OPEN_FOLLOWS_DOC "open_dialog_follows_doc"
 
 #define MOO_EDIT_PREFS_QUICK_SEARCH_FLAGS       "quick_search_flags"
 #define MOO_EDIT_PREFS_SEARCH_FLAGS             "search_flags"