diff --git a/src/kitemviews/kfileitemmodel.cpp b/src/kitemviews/kfileitemmodel.cpp
--- a/src/kitemviews/kfileitemmodel.cpp
+++ b/src/kitemviews/kfileitemmodel.cpp
@@ -636,7 +636,11 @@
     // does not care whether the parent-URL has already been
     // expanded.
     QUrl urlToExpand = m_dirLister->url();
-    const QStringList subDirs = url.path().mid(pos).split(QDir::separator());
+
+    // first subdir can be empty, if m_dirLister->url().path() does not end with '/'
+    // this happens if baseUrl is not root but a home directory, see FoldersPanel,
+    // so using QString::SkipEmptyParts
+    const QStringList subDirs = url.path().mid(pos).split(QDir::separator(), QString::SkipEmptyParts);
     for (int i = 0; i < subDirs.count() - 1; ++i) {
         urlToExpand.setPath(urlToExpand.path() + '/' + subDirs.at(i));
         m_urlsToExpand.insert(urlToExpand);
diff --git a/src/panels/folders/dolphin_folderspanelsettings.kcfg b/src/panels/folders/dolphin_folderspanelsettings.kcfg
--- a/src/panels/folders/dolphin_folderspanelsettings.kcfg
+++ b/src/panels/folders/dolphin_folderspanelsettings.kcfg
@@ -10,6 +10,10 @@
             <label>Hidden files shown</label>
             <default>false</default>
         </entry>
+        <entry name="LimitFoldersPanelToHome" type="Bool">
+            <label>Limit folders panel to home directory if inside home</label>
+            <default>true</default>
+        </entry>
         <entry name="AutoScrolling" type="Bool">
             <label>Automatic scrolling</label>
             <default>true</default>
diff --git a/src/panels/folders/folderspanel.h b/src/panels/folders/folderspanel.h
--- a/src/panels/folders/folderspanel.h
+++ b/src/panels/folders/folderspanel.h
@@ -43,7 +43,9 @@
     virtual ~FoldersPanel();
 
     void setShowHiddenFiles(bool show);
+    void setLimitFoldersPanelToHome(bool enable);
     bool showHiddenFiles() const;
+    bool limitFoldersPanelToHome() const;
 
     void setAutoScrolling(bool enable);
     bool autoScrolling() const;
@@ -81,14 +83,17 @@
      */
     void startFadeInAnimation();
 
+
 private:
     /**
      * Initializes the base URL of the tree and expands all
      * directories until \a url.
      * @param url  URL of the leaf directory that should get expanded.
      */
     void loadTree(const QUrl& url);
 
+    void reloadTree();
+
     /**
      * Sets the item with the index \a index as current item, selects
      * the item and assures that the item will be visible.
diff --git a/src/panels/folders/folderspanel.cpp b/src/panels/folders/folderspanel.cpp
--- a/src/panels/folders/folderspanel.cpp
+++ b/src/panels/folders/folderspanel.cpp
@@ -50,6 +50,7 @@
 #include <views/draganddrophelper.h>
 
 #include "dolphindebug.h"
+#include "global.h"
 
 FoldersPanel::FoldersPanel(QWidget* parent) :
     Panel(parent),
@@ -82,6 +83,17 @@
     return FoldersPanelSettings::hiddenFilesShown();
 }
 
+void FoldersPanel::setLimitFoldersPanelToHome(bool enable)
+{
+    FoldersPanelSettings::setLimitFoldersPanelToHome(enable);
+    reloadTree();
+}
+
+bool FoldersPanel::limitFoldersPanelToHome() const
+{
+    return FoldersPanelSettings::limitFoldersPanelToHome();
+}
+
 void FoldersPanel::setAutoScrolling(bool enable)
 {
     // TODO: Not supported yet in Dolphin 2.0
@@ -122,6 +134,14 @@
     return true;
 }
 
+void FoldersPanel::reloadTree()
+{
+    if (m_controller) {
+        loadTree(url());
+    }
+}
+
+
 void FoldersPanel::showEvent(QShowEvent* event)
 {
     if (event->spontaneous()) {
@@ -304,8 +324,13 @@
 
     QUrl baseUrl;
     if (url.isLocalFile()) {
-        // Use the root directory as base for local URLs (#150941)
-        baseUrl = QUrl::fromLocalFile(QDir::rootPath());
+        const bool isInHomeFolder = Dolphin::homeUrl().isParentOf(url) || (Dolphin::homeUrl() == url);
+        if (FoldersPanelSettings::limitFoldersPanelToHome() && isInHomeFolder) {
+            baseUrl = Dolphin::homeUrl();
+        } else {
+            // Use the root directory as base for local URLs (#150941)
+            baseUrl = QUrl::fromLocalFile(QDir::rootPath());
+        }
     } else {
         // Clear the path for non-local URLs and use it as base
         baseUrl = url;
@@ -323,6 +348,13 @@
     } else {
         m_updateCurrentItem = true;
         m_model->expandParentDirectories(url);
+
+        // clear a previous selection, if the home directory is selected
+        // and limitFoldersPanelToHome() active
+        if (FoldersPanelSettings::limitFoldersPanelToHome() && Dolphin::homeUrl() == url) {
+            KItemListSelectionManager* selectionManager = m_controller->selectionManager();
+            selectionManager->clearSelection();
+        }
         // slotLoadingCompleted() will be invoked after the model has
         // expanded the url
     }
diff --git a/src/panels/folders/treeviewcontextmenu.h b/src/panels/folders/treeviewcontextmenu.h
--- a/src/panels/folders/treeviewcontextmenu.h
+++ b/src/panels/folders/treeviewcontextmenu.h
@@ -79,6 +79,12 @@
     void setShowHiddenFiles(bool show);
 
     /**
+     * Sets the 'Limit folders panel to home' setting for the
+     * folders panel to \a enable.
+     */
+    void setLimitFoldersPanelToHome(bool enable);
+
+    /**
      * Sets the 'Automatic Scrolling' setting for the
      * folders panel to \a enable.
      */
diff --git a/src/panels/folders/treeviewcontextmenu.cpp b/src/panels/folders/treeviewcontextmenu.cpp
--- a/src/panels/folders/treeviewcontextmenu.cpp
+++ b/src/panels/folders/treeviewcontextmenu.cpp
@@ -124,6 +124,13 @@
     popup->addAction(showHiddenFilesAction);
     connect(showHiddenFilesAction, &QAction::toggled, this, &TreeViewContextMenu::setShowHiddenFiles);
 
+    // insert 'Limit to home directory if inside home'
+    QAction* limitFoldersPanelToHomeAction = new QAction(i18nc("@action:inmenu", "Limit to home directory if inside home"), this);
+    limitFoldersPanelToHomeAction->setCheckable(true);
+    limitFoldersPanelToHomeAction->setChecked(m_parent->limitFoldersPanelToHome());
+    popup->addAction(limitFoldersPanelToHomeAction);
+    connect(limitFoldersPanelToHomeAction, &QAction::toggled, this, &TreeViewContextMenu::setLimitFoldersPanelToHome);
+
     // insert 'Automatic Scrolling'
     QAction* autoScrollingAction = new QAction(i18nc("@action:inmenu", "Automatic Scrolling"), this);
     autoScrollingAction->setCheckable(true);
@@ -229,6 +236,11 @@
     m_parent->setShowHiddenFiles(show);
 }
 
+void TreeViewContextMenu::setLimitFoldersPanelToHome(bool enable)
+{
+    m_parent->setLimitFoldersPanelToHome(enable);
+}
+
 void TreeViewContextMenu::setAutoScrolling(bool enable)
 {
     m_parent->setAutoScrolling(enable);