diff --git a/apps/files_sharing/appinfo/update.php b/apps/files_sharing/appinfo/update.php
index 72acdbac736f5b1003587ed22187cbafa10cf502..e393b1575af5cb36654a6da5a57b01fd57844a5f 100644
--- a/apps/files_sharing/appinfo/update.php
+++ b/apps/files_sharing/appinfo/update.php
@@ -113,5 +113,8 @@ function removeSharedFolder($mkdirs = true, $chunkSize = 99) {
 			$query->execute(array());
 		}
 
+		// set config to keep the Shared folder as the default location for new shares
+		\OCA\Files_Sharing\Helper::setShareFolder('/Shared');
+
 	}
 }
diff --git a/apps/files_sharing/lib/helper.php b/apps/files_sharing/lib/helper.php
index c15b1d481140bc60bc44797f406b202a3b172b94..f444404c2b18e458055291e3ae37b865713d5efe 100644
--- a/apps/files_sharing/lib/helper.php
+++ b/apps/files_sharing/lib/helper.php
@@ -237,4 +237,24 @@ class Helper {
 		return ($result === 'yes') ? true : false;
 	}
 
+	/**
+	 * get default share folder
+	 *
+	 * @return string
+	 */
+	public static function getShareFolder() {
+		$shareFolder = \OCP\Config::getSystemValue('share_folder', '/');
+
+		return \OC\Files\Filesystem::normalizePath($shareFolder);
+	}
+
+	/**
+	 * set default share folder
+	 *
+	 * @param string $shareFolder
+	 */
+	public static function setShareFolder($shareFolder) {
+		\OCP\Config::setSystemValue('share_folder', $shareFolder);
+	}
+
 }
diff --git a/apps/files_sharing/lib/share/file.php b/apps/files_sharing/lib/share/file.php
index 91595461a618c2935e07284a5ff4eb68dcd5ce6a..2ae7fdc16ab350b574a2f9b07d0827bd246b5d02 100644
--- a/apps/files_sharing/lib/share/file.php
+++ b/apps/files_sharing/lib/share/file.php
@@ -61,7 +61,8 @@ class OC_Share_Backend_File implements OCP\Share_Backend_File_Dependent {
 	 * @return string
 	 */
 	public function generateTarget($filePath, $shareWith, $exclude = null) {
-		$target = '/'.basename($filePath);
+		$shareFolder = \OCA\Files_Sharing\Helper::getShareFolder();
+		$target = \OC\Files\Filesystem::normalizePath($shareFolder . '/' . basename($filePath));
 
 		// for group shares we return the target right away
 		if ($shareWith === false) {
@@ -70,6 +71,18 @@ class OC_Share_Backend_File implements OCP\Share_Backend_File_Dependent {
 
 		\OC\Files\Filesystem::initMountPoints($shareWith);
 		$view = new \OC\Files\View('/' . $shareWith . '/files');
+
+		if (!$view->is_dir($shareFolder)) {
+			$dir = '';
+			$subdirs = explode('/', $shareFolder);
+			foreach ($subdirs as $subdir) {
+				$dir = $dir . '/' . $subdir;
+				if (!$view->is_dir($dir)) {
+					$view->mkdir($dir);
+				}
+			}
+		}
+
 		$excludeList = \OCP\Share::getItemsSharedWithUser('file', $shareWith, self::FORMAT_TARGET_NAMES);
 		if (is_array($exclude)) {
 			$excludeList = array_merge($excludeList, $exclude);
diff --git a/apps/files_sharing/tests/helper.php b/apps/files_sharing/tests/helper.php
new file mode 100644
index 0000000000000000000000000000000000000000..6169a9f50942d04cef3433e9b5fc1cc388945776
--- /dev/null
+++ b/apps/files_sharing/tests/helper.php
@@ -0,0 +1,41 @@
+<?php
+/**
+ * ownCloud
+ *
+ * @author Bjoern Schiessle
+ * @copyright 2014 Bjoern Schiessle <schiessle@owncloud.com>
+ *
+ * This library is free software; you can redistribute it and/or
+ * modify it under the terms of the GNU AFFERO GENERAL PUBLIC LICENSE
+ * License as published by the Free Software Foundation; either
+ * version 3 of the License, or any later version.
+ *
+ * This library is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU AFFERO GENERAL PUBLIC LICENSE for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public
+ * License along with this library.  If not, see <http://www.gnu.org/licenses/>.
+ *
+ */
+require_once __DIR__ . '/base.php';
+
+class Test_Files_Sharing_Helper extends Test_Files_Sharing_Base {
+
+	/**
+	 * test set and get share folder
+	 */
+	function testSetGetShareFolder() {
+		$this->assertSame('/', \OCA\Files_Sharing\Helper::getShareFolder());
+
+		\OCA\Files_Sharing\Helper::setShareFolder('/Shared');
+
+		$this->assertSame('/Shared', \OCA\Files_Sharing\Helper::getShareFolder());
+
+		// cleanup
+		\OCP\Config::deleteSystemValue('share_folder');
+
+	}
+
+}
diff --git a/apps/files_sharing/tests/share.php b/apps/files_sharing/tests/share.php
index d3ca1816c75f7074da1bcf9d16ef31828990043c..31246c5df44f9ed3be8147ab5aec99305ceebfa5 100644
--- a/apps/files_sharing/tests/share.php
+++ b/apps/files_sharing/tests/share.php
@@ -125,6 +125,36 @@ class Test_Files_Sharing extends Test_Files_Sharing_Base {
 
 	}
 
+	function testShareWithDifferentShareFolder() {
+
+		$fileinfo = $this->view->getFileInfo($this->filename);
+		$folderinfo = $this->view->getFileInfo($this->folder);
+
+		$fileShare = \OCP\Share::shareItem('file', $fileinfo['fileid'], \OCP\Share::SHARE_TYPE_USER,
+				self::TEST_FILES_SHARING_API_USER2, 31);
+		$this->assertTrue($fileShare);
+
+		\OCA\Files_Sharing\Helper::setShareFolder('/Shared/subfolder');
+
+		$folderShare = \OCP\Share::shareItem('folder', $folderinfo['fileid'], \OCP\Share::SHARE_TYPE_USER,
+				self::TEST_FILES_SHARING_API_USER2, 31);
+		$this->assertTrue($folderShare);
+
+		self::loginHelper(self::TEST_FILES_SHARING_API_USER2);
+
+		$this->assertTrue(\OC\Files\Filesystem::file_exists($this->filename));
+		$this->assertTrue(\OC\Files\Filesystem::file_exists('/Shared/subfolder/' . $this->folder));
+
+		//cleanup
+		self::loginHelper(self::TEST_FILES_SHARING_API_USER1);
+		\OCP\Share::unshare('file', $fileinfo['fileid'], \OCP\Share::SHARE_TYPE_USER,
+				self::TEST_FILES_SHARING_API_USER2);
+		\OCP\Share::unshare('folder', $folderinfo['fileid'], \OCP\Share::SHARE_TYPE_USER,
+				self::TEST_FILES_SHARING_API_USER2);
+
+		\OCP\Config::deleteSystemValue('share_folder');
+	}
+
 	/**
 	 * shared files should never have delete permissions
 	 * @dataProvider  DataProviderTestFileSharePermissions
diff --git a/apps/files_sharing/tests/sharedstorage.php b/apps/files_sharing/tests/sharedstorage.php
index 27f3b5150d53fcfbfb35414c5b79ca41f958bdb8..972f9257e2597a937acd357b45eeb1a5da8e699e 100644
--- a/apps/files_sharing/tests/sharedstorage.php
+++ b/apps/files_sharing/tests/sharedstorage.php
@@ -52,9 +52,11 @@ class Test_Files_Sharing_Storage extends Test_Files_Sharing_Base {
 	}
 
 	/**
+	 * if the parent of the mount point is gone then the mount point should move up
+	 *
 	 * @medium
 	 */
-	function testDeleteParentOfMountPoint() {
+	function testParentOfMountPointIsGone() {
 
 		// share to user
 		$fileinfo = $this->view->getFileInfo($this->folder);
@@ -79,8 +81,8 @@ class Test_Files_Sharing_Storage extends Test_Files_Sharing_Base {
 		$this->assertFalse($user2View->is_dir($this->folder));
 
 		// delete the local folder
-		$result = $user2View->unlink('/localfolder');
-		$this->assertTrue($result);
+		$fullPath = \OC_Config::getValue('datadirectory') . '/' . self::TEST_FILES_SHARING_API_USER2 . '/files/localfolder';
+		rmdir($fullPath);
 
 		//enforce reload of the mount points
 		self::loginHelper(self::TEST_FILES_SHARING_API_USER2);
diff --git a/apps/files_sharing/tests/update.php b/apps/files_sharing/tests/update.php
index d3555cc2ee3e8d07c0cf34518afbb58076ca0167..be29c38acc398e7dfd73887bddbcb0c8f361b6d3 100644
--- a/apps/files_sharing/tests/update.php
+++ b/apps/files_sharing/tests/update.php
@@ -152,8 +152,13 @@ class Test_Files_Sharing_Update_Routine extends Test_Files_Sharing_Base {
 			}
 		}
 
+		$shareFolder = \OCP\Config::getSystemValue('share_folder', '/');
+
+		$this->assertSame('/Shared', $shareFolder);
+
 		// cleanup
 		$this->cleanupSharedTable();
+		\OCP\Config::deleteSystemValue('share_folder');
 
 	}
 
diff --git a/config/config.sample.php b/config/config.sample.php
index a0f3e0a4e726dfaeb02e43a129058cf74420f97d..2aa240afe22602981e0ae7a5c8662419972ef6c1 100755
--- a/config/config.sample.php
+++ b/config/config.sample.php
@@ -341,4 +341,9 @@ $CONFIG = array(
 	),
 ),
 
+/**
+ * define default folder for shared files and folders
+ */
+'share_folder' => '/',
+
 );