diff --git a/notebook/tests/test_utils.py b/notebook/tests/test_utils.py
index 8922beb389..2033209a34 100644
--- a/notebook/tests/test_utils.py
+++ b/notebook/tests/test_utils.py
@@ -61,10 +61,14 @@ def test_is_hidden():
         os.makedirs(subdir1)
         nt.assert_equal(is_hidden(subdir1, root), False)
         nt.assert_equal(is_file_hidden(subdir1), False)
+
         subdir2 = os.path.join(root, '.subdir2')
         os.makedirs(subdir2)
         nt.assert_equal(is_hidden(subdir2, root), True)
-        nt.assert_equal(is_file_hidden(subdir2), True)
+        nt.assert_equal(is_file_hidden(subdir2), True)#
+        # root dir is always visible
+        nt.assert_equal(is_hidden(subdir2, subdir2), False)
+
         subdir34 = os.path.join(root, 'subdir3', '.subdir4')
         os.makedirs(subdir34)
         nt.assert_equal(is_hidden(subdir34, root), True)
diff --git a/notebook/utils.py b/notebook/utils.py
index c0d85f6b28..ea4a1a5ed5 100644
--- a/notebook/utils.py
+++ b/notebook/utils.py
@@ -173,6 +173,10 @@ def is_hidden(abs_path, abs_root=''):
     determined by either name starting with '.' or the UF_HIDDEN flag as
     reported by stat.
 
+    If abs_path is the same directory as abs_root, it will be visible even if
+    that is a hidden folder. This only checks the visibility of files
+    and directories *within* abs_root.
+
     Parameters
     ----------
     abs_path : unicode
@@ -181,6 +185,9 @@ def is_hidden(abs_path, abs_root=''):
         The absolute path of the root directory in which hidden directories
         should be checked for.
     """
+    if os.path.normpath(abs_path) == os.path.normpath(abs_root):
+        return False
+
     if is_file_hidden(abs_path):
         return True