diff --git a/app/controllers/header/projects_controller.rb b/app/controllers/header/projects_controller.rb
index 0fbda05651ff..b304b96367e7 100644
--- a/app/controllers/header/projects_controller.rb
+++ b/app/controllers/header/projects_controller.rb
@@ -162,7 +162,9 @@ def build_tree(projects)
   def sort_nodes(nodes)
     nodes.sort_by { |n| n[:project].name.downcase }.each do |node|
       node[:children] = sort_nodes(node[:children])
-      node[:expanded] = node[:children].any? { |c| c[:project].id == @current_project_id || c[:expanded] }
+      node[:expanded] = filter_mode == "favorited" || node[:children].any? do |c|
+        c[:project].id == @current_project_id || c[:expanded]
+      end
     end
   end
 end
diff --git a/spec/controllers/header/projects_controller_spec.rb b/spec/controllers/header/projects_controller_spec.rb
index 87f7e488f941..90f5711efa24 100644
--- a/spec/controllers/header/projects_controller_spec.rb
+++ b/spec/controllers/header/projects_controller_spec.rb
@@ -103,6 +103,13 @@
           make_request
           expect(assigns(:favorited_ids)).to include(child_project.id)
         end
+
+        it "marks parent nodes as expanded" do
+          make_request
+          tree = assigns(:tree)
+          parent_node = tree.find { |n| n[:project] == parent_project }
+          expect(parent_node[:expanded]).to be(true)
+        end
       end
 
       context "when the user has no favorites" do