Index: lams_central/src/java/org/lamsfoundation/lams/authoring/web/AuthoringAction.java
===================================================================
diff -u -rfd6ade152cf877cecaa63d3cb59d3bc53d60ca45 -r51c6e431368c11396aafddf0e3b37c92da2f5edc
--- lams_central/src/java/org/lamsfoundation/lams/authoring/web/AuthoringAction.java	(.../AuthoringAction.java)	(revision fd6ade152cf877cecaa63d3cb59d3bc53d60ca45)
+++ lams_central/src/java/org/lamsfoundation/lams/authoring/web/AuthoringAction.java	(.../AuthoringAction.java)	(revision 51c6e431368c11396aafddf0e3b37c92da2f5edc)
@@ -29,6 +29,7 @@
 import java.io.OutputStreamWriter;
 import java.io.Writer;
 import java.text.ParseException;
+import java.util.Collections;
 import java.util.LinkedList;
 import java.util.List;
 import java.util.Vector;
@@ -73,6 +74,7 @@
 import org.lamsfoundation.lams.usermanagement.Organisation;
 import org.lamsfoundation.lams.usermanagement.Role;
 import org.lamsfoundation.lams.usermanagement.User;
+import org.lamsfoundation.lams.usermanagement.WorkspaceFolder;
 import org.lamsfoundation.lams.usermanagement.dto.UserDTO;
 import org.lamsfoundation.lams.usermanagement.exception.UserException;
 import org.lamsfoundation.lams.usermanagement.exception.WorkspaceFolderException;
@@ -83,6 +85,7 @@
 import org.lamsfoundation.lams.web.action.LamsDispatchAction;
 import org.lamsfoundation.lams.web.session.SessionManager;
 import org.lamsfoundation.lams.web.util.AttributeNames;
+import org.lamsfoundation.lams.workspace.web.WorkspaceAction;
 import org.springframework.web.context.WebApplicationContext;
 import org.springframework.web.context.support.WebApplicationContextUtils;
 
@@ -195,8 +198,27 @@
 	response.setContentType("application/json;charset=utf-8");
 	JSONObject responseJSON = new JSONObject();
 	Gson gson = new GsonBuilder().create();
-	responseJSON.put("ld", new JSONObject(gson.toJson(learningDesignDTO)));
+	JSONObject ldJSON = new JSONObject(gson.toJson(learningDesignDTO));
 
+	// get all parent folders of the LD
+	List<Integer> folderPath = new LinkedList<Integer>();
+	WorkspaceFolder folder = (WorkspaceFolder) getUserManagementService().findById(WorkspaceFolder.class,
+		learningDesignDTO.getWorkspaceFolderID());
+	while (folder != null) {
+	    Integer folderID = folder.getWorkspaceFolderId();
+	    if (folderID.equals(WorkspaceAction.ROOT_ORG_FOLDER_ID)) {
+		// we reached the top folder, finish
+		folder = null;
+	    } else {
+		folderPath.add(folderID);
+		folder = folder.getParentWorkspaceFolder();
+	    }
+	}
+	// we'll go from top to bottom
+	Collections.reverse(folderPath);
+	ldJSON.put("folderPath", new JSONArray(gson.toJson(folderPath)));
+	responseJSON.put("ld", ldJSON);
+
 	List<LearningDesignAccess> accessList = getAuthoringService().updateLearningDesignAccessByUser(userId);
 	accessList = accessList.subList(0,
 		Math.min(accessList.size(), AuthoringAction.LEARNING_DESIGN_ACCESS_ENTRIES_LIMIT - 1));
Index: lams_central/web/includes/javascript/authoring/authoringGeneral.js
===================================================================
diff -u -ree55f2ffca34d972bb176fb91d65d91cf2ed0e04 -r51c6e431368c11396aafddf0e3b37c92da2f5edc
--- lams_central/web/includes/javascript/authoring/authoringGeneral.js	(.../authoringGeneral.js)	(revision ee55f2ffca34d972bb176fb91d65d91cf2ed0e04)
+++ lams_central/web/includes/javascript/authoring/authoringGeneral.js	(.../authoringGeneral.js)	(revision 51c6e431368c11396aafddf0e3b37c92da2f5edc)
@@ -743,11 +743,10 @@
 			},
 			'close' : null,
 			'data' : {
-				'prepareForOpen' : function(dialogTitle, learningDesignTitle, shownElementIDs, highlightFirstTreeChild){
-					var tree = MenuLib.loadLearningDesignTree();
-					if (highlightFirstTreeChild) {
-						tree.getRoot().children[0].highlight();
-					}
+				'prepareForOpen' : function(dialogTitle, learningDesignTitle, shownElementIDs, highlightFolder){
+					// only Save As uses highlightFolder; otherwise the first folder in top level gets expanded and highlighted
+					layout.folderPathCurrent = highlightFolder && layout.ld.folderPath ? layout.ld.folderPath.slice() : [];
+					MenuLib.loadLearningDesignTree();
 					
 					$('#ldStoreDialogNameContainer input', layout.ldStoreDialog).val(learningDesignTitle);
 					$('.modal-title', layout.ldStoreDialog).text(dialogTitle);
@@ -934,6 +933,9 @@
 					});
 			}
 			
+			// expand the folder where existing LD resides, if applicable
+			MenuLib.highlightFolder(node);
+			
 			// required by YUI
 			callback();
 		});
@@ -1657,6 +1659,7 @@
 				layout.ld = {
 					'learningDesignID' : ld.learningDesignID,
 					'folderID'		   : ld.workspaceFolderID,
+					'folderPath'	   : ld.folderPath,
 					'contentFolderID'  : ld.contentFolderID,
 					'title'			   : ld.title,
 					'maxUIID'		   : 0,
Index: lams_central/web/includes/javascript/authoring/authoringMenu.js
===================================================================
diff -u -r922ee8d48aa70d56c24a802f8e68c6dde4bef8ae -r51c6e431368c11396aafddf0e3b37c92da2f5edc
--- lams_central/web/includes/javascript/authoring/authoringMenu.js	(.../authoringMenu.js)	(revision 922ee8d48aa70d56c24a802f8e68c6dde4bef8ae)
+++ lams_central/web/includes/javascript/authoring/authoringMenu.js	(.../authoringMenu.js)	(revision 51c6e431368c11396aafddf0e3b37c92da2f5edc)
@@ -381,9 +381,44 @@
 		
 		return result;
 	},
-
 	
 	/**
+	 * Highlights the folder where existing LD already resides
+	 * or the user folder otherwise.
+	 */
+	highlightFolder : function(folder) {
+		// if there are no children or stop condition (no path) was reached
+		if (folder.children.length === 0 || layout.folderPathCurrent === null) {
+			return;
+		}
+		var chosenFolder = null;
+		// are there any steps left?
+		if (layout.folderPathCurrent.length > 0) {
+			// look for target folder in children
+			var folderID = layout.folderPathCurrent.shift();
+			$.each(folder.children, function(index, child){
+				if (folderID == child.data.folderID) {
+					chosenFolder = child;
+					return false;
+				}
+			});
+		}
+		// if last piece of folder path was consumed, set stop condition
+		if (layout.folderPathCurrent.length === 0) {
+			layout.folderPathCurrent = null;
+		}
+		// no folder found or path was empty from the beginning
+		if (!chosenFolder) {
+			chosenFolder = folder.children[0];
+		}
+		// if folder, highlight and expand
+		if (!chosenFolder.isLeaf) {
+			chosenFolder.expand();
+			chosenFolder.highlight();
+		}
+	},
+	
+	/**
 	 * Opens a pop up for importing LD. Loads the imported LD to canvas.
 	 */
 	importLearningDesign : function(){
@@ -456,8 +491,8 @@
 		tree.buildTreeFromObject(MenuLib.getFolderContents());
 		tree.render();
 		
-		// expand the first (user) folder
-		tree.getRoot().children[0].expand();
+		// expand the first folder or the one where existing LD resides
+		MenuLib.highlightFolder(tree.getRoot());
 		
 		return tree;
 	},