diff --git a/cachedimapjob.cpp b/cachedimapjob.cpp
index eb537349f..1c85dea90 100644
--- a/cachedimapjob.cpp
+++ b/cachedimapjob.cpp
@@ -545,6 +545,8 @@ void CachedImapJob::slotDeleteNextFolder( KIO::Job *job )
       return;
     }
 
+    mAccount->removeDeletedFolder( (*it).path );
+
     if( job->error() ) {
       mAccount->handleJobError( job, i18n( "Error while deleting folder %1 on the server: " ).arg( (*it).path ) + '\n' );
       delete this;
diff --git a/kmacctcachedimap.cpp b/kmacctcachedimap.cpp
index 375aa8b1f..d02df0b65 100644
--- a/kmacctcachedimap.cpp
+++ b/kmacctcachedimap.cpp
@@ -267,7 +267,10 @@ void KMAcctCachedImap::postProcessNewMail( KMFolderCachedImap* folder, bool )
     //  instead of the user being stuck with "can't delete" every time.
     // And we do it for _all_ deleted folders, even those that were deleted on the server in the first place (slotListResult).
     //  Otherwise this might have side effects much later (e.g. when regaining permissions to a folder we could see before)
+
+#if 0 // this opens a race: delete a folder during a sync (after the sync checked that folder), and it'll be forgotten...
     mDeletedFolders.clear();
+#endif
     mPreviouslyDeletedFolders.clear();
   }
 
@@ -367,9 +370,46 @@ void KMAcctCachedImap::invalidateIMAPFolders( KMFolderCachedImap* folder )
 }
 
 //-----------------------------------------------------------------------------
-void KMAcctCachedImap::addDeletedFolder( const QString& subFolderPath )
+void KMAcctCachedImap::addDeletedFolder( KMFolder* folder )
 {
-  mDeletedFolders.append( subFolderPath );
+  if ( folder->folderType() != KMFolderTypeCachedImap )
+    return;
+  KMFolderCachedImap* storage = static_cast<KMFolderCachedImap*>(folder->storage());
+  addDeletedFolder( storage->imapPath() );
+  kdDebug(5006) << k_funcinfo << storage->imapPath() << endl;
+
+  // Add all child folders too
+  if( folder && folder->child() ) {
+    KMFolderNode *node = folder->child()->first();
+    while( node ) {
+      if( !node->isDir() ) {
+        addDeletedFolder( static_cast<KMFolder*>( node ) ); // recurse
+      }
+      node = folder->child()->next();
+    }
+  }
+}
+
+void KMAcctCachedImap::addDeletedFolder( const QString& imapPath )
+{
+  mDeletedFolders << imapPath;
+}
+
+QStringList KMAcctCachedImap::deletedFolderPaths( const QString& subFolderPath ) const
+{
+  QStringList lst;
+  for ( QStringList::const_iterator it = mDeletedFolders.begin(); it != mDeletedFolders.end(); ++it ) {
+    if ( (*it).startsWith( subFolderPath ) )
+      // We must reverse the order, so that sub sub sub folders are deleted first
+      lst.prepend( *it );
+  }
+  for ( QStringList::const_iterator it = mPreviouslyDeletedFolders.begin(); it != mPreviouslyDeletedFolders.end(); ++it ) {
+    if ( (*it).startsWith( subFolderPath ) )
+      lst.prepend( *it );
+  }
+  kdDebug(5006) << "KMAcctCachedImap::deletedFolderPaths for " << subFolderPath << " returning: " << lst << endl;
+  Q_ASSERT( !lst.isEmpty() );
+  return lst;
 }
 
 bool KMAcctCachedImap::isDeletedFolder( const QString& subFolderPath ) const
diff --git a/kmacctcachedimap.h b/kmacctcachedimap.h
index dd119017f..26ca515d2 100644
--- a/kmacctcachedimap.h
+++ b/kmacctcachedimap.h
@@ -38,6 +38,7 @@
 
 class KMFolderCachedImap;
 class KMFolderTreeItem;
+class KMFolder;
 namespace KMail {
   class FolderJob;
   class ImapJob;
@@ -108,9 +109,15 @@ public:
   virtual void invalidateIMAPFolders( KMFolderCachedImap* );
 
   /**
-   * Remember that a folder got explicitely deleted
+   * Remember that a folder got explicitely deleted - including all child folders
    */
-  void addDeletedFolder( const QString& subFolderPath );
+  void addDeletedFolder( KMFolder* folder );
+
+  /**
+   * Remember that a folder got explicitely deleted - NOT including all child folders
+   * This is used when renaming a folder.
+   */
+  void addDeletedFolder( const QString& imapPath );
 
   /**
    * Ask if a folder was explicitely deleted in this session
@@ -122,6 +129,11 @@ public:
    */
   bool isPreviouslyDeletedFolder( const QString& subFolderPath ) const;
 
+  /**
+   * return the imap path to the deleted folder, as well as the paths for any child folders
+   */
+  QStringList deletedFolderPaths( const QString& subFolderPath ) const;
+
   /**
    * Remove folder from the "deleted folders" list
    */
diff --git a/kmfoldercachedimap.cpp b/kmfoldercachedimap.cpp
index 44ec3a45d..2032257c3 100644
--- a/kmfoldercachedimap.cpp
+++ b/kmfoldercachedimap.cpp
@@ -393,7 +393,7 @@ int KMFolderCachedImap::rename( const QString& aName,
 
   // Make the change appear to the user with setLabel, but we'll do the change
   // on the server during the next sync. The name() is the name at the time of
-  // the last sync. Only rename if the new one is different. If it's the same, 
+  // the last sync. Only rename if the new one is different. If it's the same,
   // don't rename, but also make sure the rename is reset, in the case of
   // A -> B -> A renames.
   if ( name() != aName )
@@ -1584,7 +1584,7 @@ void KMFolderCachedImap::listDirectory2() {
 
       if ( locallyDeleted ) {
         kdDebug(5006) << subfolderPath << " was deleted locally => delete on server." << endl;
-        foldersForDeletionOnServer << subfolderPath;
+        foldersForDeletionOnServer += mAccount->deletedFolderPaths( subfolderPath ); // grab all subsubfolders too
       } else {
         kdDebug(5006) << subfolderPath << " is a new folder on the server => create local cache" << endl;
         KMFolder* newFolder = folder()->child()->createFolder(mSubfolderNames[i], false, KMFolderTypeCachedImap);
diff --git a/kmmainwidget.cpp b/kmmainwidget.cpp
index 2c8ff9cfd..6ab620534 100644
--- a/kmmainwidget.cpp
+++ b/kmmainwidget.cpp
@@ -1078,7 +1078,7 @@ void KMMainWidget::slotRemoveFolder()
       KMFolderCachedImap* storage = static_cast<KMFolderCachedImap*>( mFolder->storage() );
       KMAcctCachedImap* acct = storage->account();
       if ( acct )
-        acct->addDeletedFolder( storage->imapPath() );
+        acct->addDeletedFolder( mFolder );
 
       kmkernel->dimapFolderMgr()->remove(mFolder);
     }