diff --git a/tools/editor/create_dialog.cpp b/tools/editor/create_dialog.cpp
index cd34b5aeb9c..b6137ddac02 100644
--- a/tools/editor/create_dialog.cpp
+++ b/tools/editor/create_dialog.cpp
@@ -36,6 +36,7 @@
 #if 1
 
 #include "os/keyboard.h"
+#include "editor_settings.h"
 #include "editor_help.h"
 
 
@@ -108,6 +109,18 @@ void CreateDialog::add_type(const String& p_type,HashMap<String,TreeItem*>& p_ty
 
 	}
 
+	if (bool(EditorSettings::get_singleton()->get("scenetree_editor/start_create_dialog_fully_expanded"))) {
+		item->set_collapsed(false);
+	} else {
+		// don't collapse search results
+		bool collapse = (search_box->get_text() == "");
+		// don't collapse the root node
+		collapse &= (item != p_root);
+		// don't collapse abstract nodes on the first tree level
+		collapse &= ((parent != p_root) || (ObjectTypeDB::can_instance(p_type)));
+		item->set_collapsed(collapse);
+	}
+
 	const String& description = EditorHelp::get_doc_data()->class_list[p_type].brief_description;
 	item->set_tooltip(0,description);
 
diff --git a/tools/editor/editor_settings.cpp b/tools/editor/editor_settings.cpp
index 1080509b8f3..93b3369aaf5 100644
--- a/tools/editor/editor_settings.cpp
+++ b/tools/editor/editor_settings.cpp
@@ -493,6 +493,7 @@ void EditorSettings::_load_defaults(Ref<ConfigFile> p_extra_config) {
 	set("scenetree_editor/duplicate_node_name_num_separator",0);
 	hints["scenetree_editor/duplicate_node_name_num_separator"]=PropertyInfo(Variant::INT,"scenetree_editor/duplicate_node_name_num_separator",PROPERTY_HINT_ENUM, "None,Space,Underscore,Dash");
 	//set("scenetree_editor/display_old_action_buttons",false);
+	set("scenetree_editor/start_create_dialog_fully_expanded",false);
 
 	set("gridmap_editor/pick_distance", 5000.0);