Index: lams_central/web/authoring/authoring.jsp
===================================================================
diff -u -rcf6d008d6b7287b647a0d79855cf248840c47769 -ra8f119a356469d400e7971e06e19fa6ab5a51b34
--- lams_central/web/authoring/authoring.jsp	(.../authoring.jsp)	(revision cf6d008d6b7287b647a0d79855cf248840c47769)
+++ lams_central/web/authoring/authoring.jsp	(.../authoring.jsp)	(revision a8f119a356469d400e7971e06e19fa6ab5a51b34)
@@ -435,7 +435,8 @@
 		<tr>
 			<td id="templateContainerCell">
 				<div id="template-container-collapse">
-					<i class="fa fa-arrow-circle-o-left" onClick="javascript:MenuLib.toggleTemplateContainer()"></i>
+					<i id="template-container-collapse-button" class="fa fa-arrow-circle-o-left" onClick="javascript:MenuLib.toggleTemplateContainer()"></i>
+					<i id="template-categories-collapse-button" class="fa fa-arrow-circle-o-down" onClick="javascript:MenuLib.toggleExpandTemplateCategories()"></i>
 				</div>
 				<div id="template-container-panel-group" class="templateContainer scrollable panel-group" role="tablist" aria-multiselectable="true">
 				
Index: lams_central/web/css/_authoring_base.scss
===================================================================
diff -u -rcf6d008d6b7287b647a0d79855cf248840c47769 -ra8f119a356469d400e7971e06e19fa6ab5a51b34
--- lams_central/web/css/_authoring_base.scss	(.../_authoring_base.scss)	(revision cf6d008d6b7287b647a0d79855cf248840c47769)
+++ lams_central/web/css/_authoring_base.scss	(.../_authoring_base.scss)	(revision a8f119a356469d400e7971e06e19fa6ab5a51b34)
@@ -466,7 +466,11 @@
 	font-size: 20px;
 	cursor: pointer;
 }
- 
+   
+td#templateContainerCell #template-categories-collapse-button {
+	margin-left: 155px;
+}
+
 td#templateContainerCell #template-container-panel-group {
 	overflow-x: hidden;
 	overflow-y: auto;
Index: lams_central/web/includes/javascript/authoring/authoringMenu.js
===================================================================
diff -u -rc14addfb86127ccba5457249549a577af1de7c0f -ra8f119a356469d400e7971e06e19fa6ab5a51b34
--- lams_central/web/includes/javascript/authoring/authoringMenu.js	(.../authoringMenu.js)	(revision c14addfb86127ccba5457249549a577af1de7c0f)
+++ lams_central/web/includes/javascript/authoring/authoringMenu.js	(.../authoringMenu.js)	(revision a8f119a356469d400e7971e06e19fa6ab5a51b34)
@@ -223,19 +223,6 @@
 	},
 	
 	/**
-	 * Hide / show activity toolbar on the left
-	 */
-	toggleTemplateContainer : function(){
-		var templateContainerCell = $('#templateContainerCell');
-		templateContainerCell.animate({
-			'width': templateContainerCell.width() > 0 ? 0 : 200
-		}, function(){
-			templateContainerCell.find('#template-container-collapse i.fa').toggleClass('fa-arrow-circle-o-left fa-arrow-circle-o-right');
-			GeneralLib.resizePaper();
-		});
-	},
-	
-	/**
 	 * Mark an activity as ready for pasting.
 	 */
 	copyActivity : function(){
@@ -592,7 +579,6 @@
 		layout.ldStoreDialog.modal('show');
 	},
 	
-	
 	/**
 	 * Expands/collapses description field.
 	 */
@@ -603,8 +589,39 @@
 		});
 	},
 	
+	/**
+	 * Hide / show contents of all ativity categories in the toolbar on the left
+	 */
+	toggleExpandTemplateCategories : function(){
+		var collapseCategoriesButton = $('#template-container-collapse #template-categories-collapse-button'),
+			isExpanded = collapseCategoriesButton.hasClass('fa-arrow-circle-o-up');
+		$('#template-container-panel-group .collapse').collapse(isExpanded ? 'hide' : 'show');
+		collapseCategoriesButton.toggleClass('fa-arrow-circle-o-down fa-arrow-circle-o-up');
+	},
 	
 	/**
+	 * Hide / show activity toolbar on the left
+	 */
+	toggleTemplateContainer : function(){
+		var templateContainerCell = $('#templateContainerCell'),
+			isExpanded = templateContainerCell.width();
+
+		if (isExpanded) {
+			$('#template-container-collapse #template-categories-collapse-button', templateContainerCell).hide();
+		}
+
+		templateContainerCell.animate({
+			'width': isExpanded > 0 ? 0 : 200
+		}, function(){
+			$('#template-container-collapse #template-container-collapse-button', templateContainerCell).toggleClass('fa-arrow-circle-o-left fa-arrow-circle-o-right');
+			if (!isExpanded) {
+				$('#template-container-collapse #template-categories-collapse-button', templateContainerCell).show();
+			}
+			GeneralLib.resizePaper();
+		});
+	},
+	
+	/**
 	 * Opens a pop up for template window that generates a learning design
 	 */
 	useTemplateToCreateLearningDesign : function(){