diff --git a/containments/desktop/package/contents/ui/FolderViewLayer.qml b/containments/desktop/package/contents/ui/FolderViewLayer.qml
--- a/containments/desktop/package/contents/ui/FolderViewLayer.qml
+++ b/containments/desktop/package/contents/ui/FolderViewLayer.qml
@@ -308,7 +308,7 @@
                 Folder.LabelGenerator {
                     id: labelGenerator
 
-                    url: folderView.model.resolvedUrl
+                    folderModel: folderView.model
                     rtl: (Qt.application.layoutDirection == Qt.RightToLeft)
                     labelMode: plasmoid.configuration.labelMode
                     labelText: plasmoid.configuration.labelText
diff --git a/containments/desktop/plugins/folder/foldermodel.h b/containments/desktop/plugins/folder/foldermodel.h
--- a/containments/desktop/plugins/folder/foldermodel.h
+++ b/containments/desktop/plugins/folder/foldermodel.h
@@ -167,6 +167,8 @@
         QStringList filterMimeTypes() const;
         void setFilterMimeTypes(const QStringList &mimeList);
 
+        KFileItem rootItem() const;
+
         Q_INVOKABLE void up();
         Q_INVOKABLE void cd(int row);
 
diff --git a/containments/desktop/plugins/folder/foldermodel.cpp b/containments/desktop/plugins/folder/foldermodel.cpp
--- a/containments/desktop/plugins/folder/foldermodel.cpp
+++ b/containments/desktop/plugins/folder/foldermodel.cpp
@@ -497,6 +497,11 @@
     }
 }
 
+KFileItem FolderModel::rootItem() const
+{
+    return m_dirModel->dirLister()->rootItem();
+}
+
 void FolderModel::up()
 {
     const QUrl &up = KIO::upUrl(resolvedUrl());
@@ -890,7 +895,7 @@
 
     // So we get to run mostLocalUrl() over the current URL.
     if (item.isNull()) {
-        item = m_dirModel->dirLister()->rootItem();
+        item = rootItem();
     }
 
     if (item.isNull()) {
@@ -1367,7 +1372,7 @@
         bool enable = false;
 
         const QString pasteText = KIO::pasteActionText(QApplication::clipboard()->mimeData(),
-            &enable, m_dirModel->dirLister()->rootItem());
+            &enable, rootItem());
 
         if (enable) {
             paste->setText(pasteText);
@@ -1411,7 +1416,7 @@
         menu->addAction(m_actionCollection.action(QStringLiteral("emptyTrash")));
         menu->addSeparator();
 
-        KFileItemListProperties itemProperties(KFileItemList() << m_dirModel->dirLister()->rootItem());
+        KFileItemListProperties itemProperties(KFileItemList() << rootItem());
         m_fileItemActions->setItemListProperties(itemProperties);
 
         menu->addAction(m_fileItemActions->preferredOpenWithAction(QString()));
diff --git a/containments/desktop/plugins/folder/labelgenerator.h b/containments/desktop/plugins/folder/labelgenerator.h
--- a/containments/desktop/plugins/folder/labelgenerator.h
+++ b/containments/desktop/plugins/folder/labelgenerator.h
@@ -21,14 +21,16 @@
 #define LABELGENERATOR_H
 
 #include <QObject>
+#include <QPointer>
 
 class KFilePlacesModel;
+class FolderModel;
 
 class LabelGenerator : public QObject
 {
     Q_OBJECT
 
-    Q_PROPERTY(QString url READ url WRITE setUrl NOTIFY urlChanged)
+    Q_PROPERTY(FolderModel *folderModel READ folderModel WRITE setFolderModel NOTIFY folderModelChanged)
     Q_PROPERTY(bool rtl READ rtl WRITE setRtl NOTIFY rtlChanged)
     Q_PROPERTY(int labelMode READ labelMode WRITE setLabelMode NOTIFY labelModeChanged)
     Q_PROPERTY(QString labelText READ labelText WRITE setLabelText NOTIFY labelTextChanged)
@@ -38,8 +40,8 @@
         LabelGenerator(QObject *parent = 0);
         ~LabelGenerator();
 
-        QString url() const;
-        void setUrl(const QString &url);
+        FolderModel *folderModel() const;
+        void setFolderModel(FolderModel *folderModel);
 
         bool rtl() const;
         void setRtl(bool rtl);
@@ -53,15 +55,15 @@
         QString displayLabel();
 
     Q_SIGNALS:
-        void urlChanged();
+        void folderModelChanged();
         void rtlChanged();
         void labelModeChanged();
         void labelTextChanged();
         void displayLabelChanged();
 
     private:
         KFilePlacesModel* m_placesModel;
-        QString m_url;
+        QPointer<FolderModel> m_folderModel;
         bool m_rtl;
         int m_labelMode;
         QString m_labelText;
diff --git a/containments/desktop/plugins/folder/labelgenerator.cpp b/containments/desktop/plugins/folder/labelgenerator.cpp
--- a/containments/desktop/plugins/folder/labelgenerator.cpp
+++ b/containments/desktop/plugins/folder/labelgenerator.cpp
@@ -24,6 +24,8 @@
 #include <KLocalizedString>
 #include <KShell>
 
+#include "foldermodel.h"
+
 LabelGenerator::LabelGenerator(QObject* parent) : QObject(parent),
     m_placesModel(new KFilePlacesModel(this)),
     m_rtl(false)
@@ -34,16 +36,24 @@
 {
 }
 
-QString LabelGenerator::url() const
+FolderModel *LabelGenerator::folderModel() const
 {
-    return m_url;
+    return m_folderModel.data();
 }
 
-void LabelGenerator::setUrl(const QString &url)
+void LabelGenerator::setFolderModel(FolderModel *folderModel)
 {
-    if (url != m_url) {
-        m_url = url;
-        emit urlChanged();
+    if (m_folderModel.data() != folderModel) {
+        if (m_folderModel.data()) {
+            disconnect(m_folderModel.data(), 0, this, 0);
+        }
+
+        m_folderModel = folderModel;
+
+        connect(m_folderModel.data(), &FolderModel::listingCompleted, this, &LabelGenerator::displayLabelChanged);
+        connect(m_folderModel.data(), &FolderModel::listingCanceled, this, &LabelGenerator::displayLabelChanged);
+
+        emit folderModelChanged();
         emit displayLabelChanged();
     }
 }
@@ -92,44 +102,48 @@
 
 QString LabelGenerator::displayLabel()
 {
+    if (!m_folderModel) {
+        return QString();
+    }
+
+    QUrl url = m_folderModel->resolvedUrl();
+
     if (m_labelMode == 1 /* Default */) {
-        if (m_url == QLatin1String("desktop:/")) {
-            return i18n("Desktop Folder");
-        } else {
-            QUrl url(m_url);
+        if (url.path().length() <= 1) {
+            const KFileItem &rootItem = m_folderModel->rootItem();
 
-            if (m_url.startsWith('~')) {
-                url = QUrl::fromLocalFile(KShell::tildeExpand(m_url));
+            if (rootItem.text() != QLatin1String(".")) {
+                return rootItem.text();
             }
+        }
 
-            QString label(url.toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash));
-
-            const QModelIndex index = m_placesModel->closestItem(url);
+        QString label(url.toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash));
 
-            if (index.isValid()) {
-                QString root = m_placesModel->url(index).toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash);
+        const QModelIndex index = m_placesModel->closestItem(url);
 
-                label = label.right(label.length() - root.length());
+        if (index.isValid()) {
+            QString root = m_placesModel->url(index).toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash);
 
-                if (!label.isEmpty()) {
-                    if (label.at(0) == '/') {
-                        label.remove(0, 1);
-                    }
+            label = label.right(label.length() - root.length());
 
-                    if (m_rtl) {
-                        label.prepend(" < ");
-                    } else {
-                        label.prepend(" > ");
-                    }
+            if (!label.isEmpty()) {
+                if (label.at(0) == '/') {
+                    label.remove(0, 1);
                 }
 
-                label.prepend(m_placesModel->text(index));
+                if (m_rtl) {
+                    label.prepend(" < ");
+                } else {
+                    label.prepend(" > ");
+                }
             }
 
-            return label;
+            label.prepend(m_placesModel->text(index));
         }
+
+        return label;
     } else if (m_labelMode == 2 /* Full path */) {
-        return QUrl(m_url).toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash);
+        return QUrl(url).toDisplayString(QUrl::PreferLocalFile | QUrl::StripTrailingSlash);
     } else if (m_labelMode == 3 /* Custom title */) {
         return m_labelText;
     }