diff --git a/spec/extensions/tree-view-spec.coffee b/spec/extensions/tree-view-spec.coffee
index e8ccf8b57..d8c010678 100644
--- a/spec/extensions/tree-view-spec.coffee
+++ b/spec/extensions/tree-view-spec.coffee
@@ -193,3 +193,39 @@ describe "TreeView", ->
         it "does nothing", ->
           rootDirectoryView.find('.file').click()
           treeView.trigger 'tree-view:expand-directory'
+
+    describe "tree-view:collapse-directory", ->
+      subdir = null
+
+      beforeEach ->
+        subdir = rootDirectoryView.find('> .entries > .directory').eq(0).view()
+        subdir.expand()
+
+      describe "when an expanded directory is selected", ->
+        it "collapses the selected directory", ->
+          expect(subdir).toHaveClass 'expanded'
+
+          subdir.click()
+          treeView.trigger 'tree-view:collapse-directory'
+
+          expect(subdir).not.toHaveClass 'expanded'
+          expect(rootDirectoryView).toHaveClass 'expanded'
+
+      describe "when a collapsed directory is selected", ->
+        it "collapses and selects the selected directory's parent directory", ->
+          subdir.find('.directory').click()
+          treeView.trigger 'tree-view:collapse-directory'
+
+          expect(subdir).not.toHaveClass 'expanded'
+          expect(subdir).toHaveClass 'selected'
+          expect(rootDirectoryView).toHaveClass 'expanded'
+
+      describe "when a file is selected", ->
+        it "collapses and selects the selected file's parent directory", ->
+          subdir.find('.file').click()
+          treeView.trigger 'tree-view:collapse-directory'
+
+          expect(subdir).not.toHaveClass 'expanded'
+          expect(subdir).toHaveClass 'selected'
+          expect(rootDirectoryView).toHaveClass 'expanded'
+
diff --git a/src/app/keymaps/tree-view.coffee b/src/app/keymaps/tree-view.coffee
index dd740c0bd..901066370 100644
--- a/src/app/keymaps/tree-view.coffee
+++ b/src/app/keymaps/tree-view.coffee
@@ -1,4 +1,4 @@
 window.keymap.bindKeys '.tree-view'
   'right': 'tree-view:expand-directory'
-  'left': 'tree-view:contract-directory'
+  'left': 'tree-view:collapse-directory'
 
diff --git a/src/extensions/tree-view.coffee b/src/extensions/tree-view.coffee
index f4764b69b..c5f44a24b 100644
--- a/src/extensions/tree-view.coffee
+++ b/src/extensions/tree-view.coffee
@@ -22,6 +22,7 @@ class TreeView extends View
     @on 'move-up', => @moveUp()
     @on 'move-down', => @moveDown()
     @on 'tree-view:expand-directory', => @expandDirectory()
+    @on 'tree-view:collapse-directory', => @collapseDirectory()
     @rootView.on 'active-editor-path-change', => @selectActiveFile()
 
   selectActiveFile: ->
@@ -50,6 +51,12 @@ class TreeView extends View
     selectedEntry = @selectedEntry()
     selectedEntry.view().expand() if selectedEntry.is('.directory')
 
+  collapseDirectory: ->
+    selectedEntry = @selectedEntry()
+    directory = selectedEntry.closest('.expanded.directory').view()
+    directory.collapse()
+    @selectEntry(directory)
+
   selectedEntry: ->
     @find('.selected')