diff --git a/spec/atom/editor-spec.coffee b/spec/atom/editor-spec.coffee
index 90e0cf6c3..433fbb0f2 100644
--- a/spec/atom/editor-spec.coffee
+++ b/spec/atom/editor-spec.coffee
@@ -780,7 +780,7 @@ describe "Editor", ->
         expect(editor.getCursorScreenPosition()).toEqual [4, 32]
 
     describe "when a fold placeholder is clicked", ->
-      it "removes the associated fold", ->
+      it "removes the associated fold and places the cursor at its beginning", ->
         editor.selection.setBufferRange(new Range([4, 29], [7, 4]))
         editor.trigger 'fold-selection'
 
@@ -789,4 +789,6 @@ describe "Editor", ->
         expect(editor.find('.fold-placeholder')).not.toExist()
         expect(editor.lines.find('.line:eq(5)').text()).toBe '      current = items.shift();'
 
+        expect(editor.getCursorBufferPosition()).toEqual [4, 29]
+
 
diff --git a/src/atom/editor.coffee b/src/atom/editor.coffee
index cbdaecddf..0ce14e4bf 100644
--- a/src/atom/editor.coffee
+++ b/src/atom/editor.coffee
@@ -93,7 +93,7 @@ class Editor extends View
       false
 
     @on 'mousedown', '.fold-placeholder', (e) =>
-      @lineFolder.destroyFoldById($(e.currentTarget).attr('foldId'))
+      @destroyFold($(e.currentTarget).attr('foldId'))
       false
 
     @on 'mousedown', (e) =>
@@ -324,3 +324,8 @@ class Editor extends View
 
   redo: ->
     @undoManager.redo()
+
+  destroyFold: (foldId) ->
+    fold = @lineFolder.foldsById[foldId]
+    fold.destroy()
+    @setCursorBufferPosition(fold.start)
diff --git a/src/atom/line-folder.coffee b/src/atom/line-folder.coffee
index 9e26b600b..9e47064b4 100644
--- a/src/atom/line-folder.coffee
+++ b/src/atom/line-folder.coffee
@@ -60,9 +60,6 @@ class LineFolder
     @trigger 'change', oldRange: oldScreenRange, newRange: newScreenRange
     @trigger 'unfold', fold.getRange()
 
-  destroyFoldById: (foldId) ->
-    @foldsById[foldId]?.destroy()
-
   registerFold: (bufferRow, fold) ->
     @activeFolds[bufferRow] ?= []
     @activeFolds[bufferRow].push(fold)