diff --git a/ActiveSync/SOGoActiveSyncDispatcher.m b/ActiveSync/SOGoActiveSyncDispatcher.m
index 7d99cebc5..d2509bae2 100644
--- a/ActiveSync/SOGoActiveSyncDispatcher.m
+++ b/ActiveSync/SOGoActiveSyncDispatcher.m
@@ -212,11 +212,18 @@ SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
         
         accountsFolder = [userFolder lookupName: @"Mail"  inContext: context  acquire: NO];
         currentFolder = [accountsFolder lookupName: @"0"  inContext: context  acquire: NO];
-        
-        newFolder = [currentFolder lookupName: [NSString stringWithFormat: @"folder%@", [displayName stringByEncodingImap4FolderName]]
-                                    inContext: context
-                                      acquire: NO];
-        
+
+        // If the parrent is 0 -> ok ; otherwise need to build the foldername based on parentId + displayName
+        if ([parentId isEqualToString: @"0"])
+          newFolder = [currentFolder lookupName: [NSString stringWithFormat: @"folder%@", [displayName stringByEncodingImap4FolderName]]
+                                      inContext: context
+                                        acquire: NO];
+        else
+          newFolder = [currentFolder lookupName: [NSString stringWithFormat: @"folder%@/%@", [[parentId stringByUnescapingURL] substringFromIndex: 5],
+                                                           [displayName stringByEncodingImap4FolderName]]
+                                      inContext: context
+                                        acquire: NO];
+
         // FIXME
         // handle exists (status == 2)
         // handle right synckey
@@ -380,7 +387,17 @@ SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
                                    inContext: context
                                      acquire: NO];
 
-  error = [folderToUpdate renameTo: displayName];
+  // If parent is 0 or displayname is not changed it is either a rename of a folder in 0 or a move to 0
+  if ([parentId isEqualToString: @"0"] ||
+      ([serverId hasSuffix: [NSString stringWithFormat: @"/%@", displayName]] && [parentId isEqualToString: @"0"]))
+    {
+      error = [folderToUpdate renameTo: [NSString stringWithFormat: @"/%@", [displayName stringByEncodingImap4FolderName]]];
+    }
+  else
+    {
+      error = [folderToUpdate renameTo: [NSString stringWithFormat: @"%@/%@", [[parentId stringByUnescapingURL] substringFromIndex: 5],
+                                                  [displayName stringByEncodingImap4FolderName]]];
+    }
 
   // Handle new name exist
   if (!error)
diff --git a/NEWS b/NEWS
index c4138d3d1..962e44763 100644
--- a/NEWS
+++ b/NEWS
@@ -12,6 +12,7 @@ Bug fixes
  - fixed iCal7 delegation issue with the "inbox" folder (#2489)
  - fixed birth date validity checks (#1636)
  - fixed URL handling (#2616)
+ - improved folder rename operations using ActiveSync (#2700)
 
 2.2.3 (2014-04-03)
 ------------------
diff --git a/SoObjects/Mailer/SOGoMailFolder.m b/SoObjects/Mailer/SOGoMailFolder.m
index 7f45ec814..64088280c 100644
--- a/SoObjects/Mailer/SOGoMailFolder.m
+++ b/SoObjects/Mailer/SOGoMailFolder.m
@@ -291,10 +291,18 @@ static NSString *defaultUserID =  @"anyone";
           path = [[imap4URL path] stringByDeletingLastPathComponent];
           if (![path hasSuffix: @"/"])
             path = [path stringByAppendingString: @"/"];
-          destURL = [[NSURL alloc] initWithScheme: [imap4URL scheme]
-                                             host: [imap4URL host]
-                                             path: [NSString stringWithFormat: @"%@%@",
-                                                             path, [newName stringByEncodingImap4FolderName]]];
+
+	  // If new name contains the path - dont't need to add
+          if ([newName rangeOfString: @"/"].location == NSNotFound)
+            destURL = [[NSURL alloc] initWithScheme: [imap4URL scheme]
+                                               host: [imap4URL host]
+                                               path: [NSString stringWithFormat: @"%@%@",
+                                                               path, [newName stringByEncodingImap4FolderName]]];
+          else
+            destURL = [[NSURL alloc] initWithScheme: [imap4URL scheme]
+                                               host: [imap4URL host]
+                                               path: [NSString stringWithFormat: @"%@",
+                                                               [newName stringByEncodingImap4FolderName]]];
           [destURL autorelease];
           error = [imap4 moveMailboxAtURL: imap4URL
                                     toURL: destURL];