diff --git a/Source/Editor/GUI/ItemsListContextMenu.cs b/Source/Editor/GUI/ItemsListContextMenu.cs
index 58f8c2eb4..6cb5a84fb 100644
--- a/Source/Editor/GUI/ItemsListContextMenu.cs
+++ b/Source/Editor/GUI/ItemsListContextMenu.cs
@@ -227,9 +227,8 @@ namespace FlaxEditor.GUI
                 {
                     int order = -1 * SortScore.CompareTo(otherItem.SortScore);
                     if (order == 0)
-                    {
                         order = string.Compare(Name, otherItem.Name, StringComparison.Ordinal);
-                    }
+
                     return order;
                 }
                 return base.Compare(other);
@@ -509,7 +508,7 @@ namespace FlaxEditor.GUI
                 OnSearchFilterChanged();
         }
 
-        private List<Item> GetVisibleItems()
+        private List<Item> GetVisibleItems(bool ignoreFoldedCategories)
         {
             var result = new List<Item>();
             var items = ItemsPanel.Children;
@@ -523,7 +522,7 @@ namespace FlaxEditor.GUI
                 for (int i = 0; i < _categoryPanels.Count; i++)
                 {
                     var category = _categoryPanels[i];
-                    if (!category.Visible)
+                    if (!category.Visible || (ignoreFoldedCategories && category is DropPanel panel && panel.IsClosed))
                         continue;
                     for (int j = 0; j < category.Children.Count; j++)
                     {
@@ -535,6 +534,12 @@ namespace FlaxEditor.GUI
             return result;
         }
 
+        private void ExpandToItem(Item item)
+        {
+            if (item.Parent is DropPanel dropPanel)
+                dropPanel.Open(false);
+        }
+
         /// <inheritdoc />
         protected override void OnShow()
         {
@@ -564,7 +569,7 @@ namespace FlaxEditor.GUI
                 Hide();
                 return true;
             case KeyboardKeys.Backspace:
-                // Alow the user to quickly focus the searchbar
+                // Allow the user to quickly focus the searchbar
                 if (_searchBox != null && !_searchBox.IsFocused)
                 {
                     _searchBox.Focus();
@@ -582,14 +587,25 @@ namespace FlaxEditor.GUI
                 }
 
                 // Get the next item
-                var items = GetVisibleItems();
+                bool controlDown = Root.GetKey(KeyboardKeys.Control);
+                var items = GetVisibleItems(!controlDown);
                 var focusedIndex = items.IndexOf(focusedItem);
+
+                // If the user hasn't selected anything yet and is holding control, focus first folded item
+                if (focusedIndex == -1 && controlDown)
+                    focusedIndex = GetVisibleItems(true).Count - 1;
+
                 int delta = key == KeyboardKeys.ArrowDown ? -1 : 1;
                 int nextIndex = Mathf.Wrap(focusedIndex - delta, 0, items.Count - 1);
                 var nextItem = items[nextIndex];
 
                 // Focus the next item
                 nextItem.Focus();
+            
+                // Allow the user to expand groups while scrolling
+                if (controlDown)
+                    ExpandToItem(nextItem);
+                
                 _scrollPanel.ScrollViewTo(nextItem);
                 return true;
             case KeyboardKeys.Return:
@@ -601,7 +617,7 @@ namespace FlaxEditor.GUI
                 else
                 {
                     // Select first item if no item is focused (most likely to be the best result), saves the user from pressing arrow down first
-                    var visibleItems = GetVisibleItems();
+                    var visibleItems = GetVisibleItems(true);
                     if (visibleItems.Count > 0)
                     {
                         OnClickItem(visibleItems[0]);