diff --git a/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditor.cs b/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditor.cs
index 5d4108e2c4..cd0436a762 100644
--- a/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditor.cs
+++ b/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditor.cs
@@ -546,9 +546,9 @@ namespace ICSharpCode.AvalonEdit.AddIn
 				}
 			}
 			iconBarManager.UpdateClassMemberBookmarks(parseInfo);
-			primaryTextEditor.UpdateParseInformation(parseInfo);
+			primaryTextEditor.UpdateParseInformationForFolding(parseInfo);
 			if (secondaryTextEditor != null)
-				secondaryTextEditor.UpdateParseInformation(parseInfo);
+				secondaryTextEditor.UpdateParseInformationForFolding(parseInfo);
 		}
 		
 		public void Dispose()
diff --git a/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditorView.cs b/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditorView.cs
index c7176ff50d..5304aa6b7a 100755
--- a/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditorView.cs
+++ b/src/AddIns/DisplayBindings/AvalonEdit.AddIn/Src/CodeEditorView.cs
@@ -71,7 +71,7 @@ namespace ICSharpCode.AvalonEdit.AddIn
 			if (e.PropertyName == "HighlightBrackets")
 				HighlightBrackets(null, e);
 			else if (e.PropertyName == "EnableFolding")
-				UpdateParseInformation();
+				UpdateParseInformationForFolding();
 			else if (e.PropertyName == "HighlightSymbol") {
 				if (this.caretReferencesRenderer != null)
 					this.caretReferencesRenderer.ClearHighlight();
@@ -252,15 +252,15 @@ namespace ICSharpCode.AvalonEdit.AddIn
 						toolTip.Closed += ToolTipClosed;
 					}
 					toolTip.PlacementTarget = this; // required for property inheritance
-									
+					
 					if(args.ContentToShow is string) {
-						toolTip.Content = new TextBlock 
+						toolTip.Content = new TextBlock
 						{
 							Text = args.ContentToShow as string,
 							TextWrapping = TextWrapping.Wrap
 						};
 					}
-					else 
+					else
 						toolTip.Content = args.ContentToShow;
 					
 					toolTip.IsOpen = true;
@@ -434,14 +434,26 @@ namespace ICSharpCode.AvalonEdit.AddIn
 		}
 		
 		#region UpdateParseInformation - Folding
-		void UpdateParseInformation()
+		void UpdateParseInformationForFolding()
 		{
-			UpdateParseInformation(ParserService.GetExistingParseInformation(this.Adapter.FileName));
+			UpdateParseInformationForFolding(ParserService.GetExistingParseInformation(this.Adapter.FileName));
+		}
+		
+		bool disableParseInformationFolding;
+		
+		public bool DisableParseInformationFolding {
+			get { return disableParseInformationFolding; }
+			set {
+				if (disableParseInformationFolding != value) {
+					disableParseInformationFolding = value;
+					UpdateParseInformationForFolding();
+				}
+			}
 		}
 		
-		public void UpdateParseInformation(ParseInformation parseInfo)
+		public void UpdateParseInformationForFolding(ParseInformation parseInfo)
 		{
-			if (!CodeEditorOptions.Instance.EnableFolding)
+			if (!CodeEditorOptions.Instance.EnableFolding || disableParseInformationFolding)
 				parseInfo = null;
 			
 			IServiceContainer container = this.Adapter.GetService(typeof(IServiceContainer)) as IServiceContainer;
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/FoldingManagerAdapter.cs b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/FoldingManagerAdapter.cs
index a4e1c68c88..c49b8eb8b8 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/FoldingManagerAdapter.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/FoldingManagerAdapter.cs
@@ -30,5 +30,13 @@ namespace ICSharpCode.XmlEditor
 				foldingManager.UpdateFoldings(newFoldings, firstErrorOffset);
 			}
 		}
+		
+		public void Dispose()
+		{
+			if (foldingManager != null) {
+				FoldingManager.Uninstall(foldingManager);
+				foldingManager = null;
+			}
+		}
 	}
 }
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/IFoldingManager.cs b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/IFoldingManager.cs
index 16604f99d7..1902c579bd 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/IFoldingManager.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/IFoldingManager.cs
@@ -7,7 +7,7 @@ using ICSharpCode.AvalonEdit.Folding;
 
 namespace ICSharpCode.XmlEditor
 {
-	public interface IFoldingManager
+	public interface IFoldingManager : IDisposable
 	{
 		void UpdateFoldings(IEnumerable<NewFolding> newFoldings, int firstErrorOffset);
 	}
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlFoldingManager.cs b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlFoldingManager.cs
index 79d313b3df..cf01b3bbf1 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlFoldingManager.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlFoldingManager.cs
@@ -53,6 +53,7 @@ namespace ICSharpCode.XmlEditor
 		public void Dispose()
 		{
 			document.Changed -= DocumentChanged;
+			foldingManager.Dispose();
 		}
 		
 		public IList<FoldingRegion> GetFolds(ITextBuffer textBuffer)
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlLanguageBinding.cs b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlLanguageBinding.cs
index 18ddfd6c7a..852d5fd1ae 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlLanguageBinding.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/Src/XmlLanguageBinding.cs
@@ -10,6 +10,7 @@ namespace ICSharpCode.XmlEditor
 	public class XmlLanguageBinding : DefaultLanguageBinding
 	{
 		XmlFoldingManager foldingManager;
+		AvalonEdit.AddIn.CodeEditorView codeEditorView;
 		
 		public override IFormattingStrategy FormattingStrategy {
 			get { return new XmlFormattingStrategy(); }
@@ -17,6 +18,11 @@ namespace ICSharpCode.XmlEditor
 		
 		public override void Attach(ITextEditor editor)
 		{
+			// HACK: disable SharpDevelop's built-in folding
+			codeEditorView = editor.GetService(typeof(AvalonEdit.TextEditor)) as AvalonEdit.AddIn.CodeEditorView;
+			if (codeEditorView != null)
+				codeEditorView.DisableParseInformationFolding = true;
+			
 			foldingManager = new XmlFoldingManager(editor);
 			foldingManager.UpdateFolds();
 			foldingManager.Start();
@@ -29,6 +35,9 @@ namespace ICSharpCode.XmlEditor
 			foldingManager.Stop();
 			foldingManager.Dispose();
 			
+			if (codeEditorView != null)
+				codeEditorView.DisableParseInformationFolding = false;
+			
 			base.Detach();
 		}
 	}
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.addin b/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.addin
index 92183c3daf..f3508d1256 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.addin
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.addin
@@ -14,6 +14,7 @@
 	
 	<Manifest>
 		<Identity name="ICSharpCode.XmlEditor"/>
+		<Dependency addin="ICSharpCode.AvalonEdit" requirePreload="true"/>
 	</Manifest>
 	
 	<Path name="/AddIns/DefaultTextEditor/Formatter/XML">
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.csproj b/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.csproj
index c39ad9f90a..12e980a04c 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.csproj
+++ b/src/AddIns/DisplayBindings/XmlEditor/Project/XmlEditor.csproj
@@ -230,5 +230,10 @@
       <Name>ICSharpCode.SharpDevelop.Widgets</Name>
       <Private>False</Private>
     </ProjectReference>
+    <ProjectReference Include="..\..\AvalonEdit.AddIn\AvalonEdit.AddIn.csproj">
+      <Project>{0162E499-42D0-409B-AA25-EED21F75336B}</Project>
+      <Name>AvalonEdit.AddIn</Name>
+      <Private>False</Private>
+    </ProjectReference>
   </ItemGroup>
 </Project>
\ No newline at end of file
diff --git a/src/AddIns/DisplayBindings/XmlEditor/Test/Utils/FakeFoldingManager.cs b/src/AddIns/DisplayBindings/XmlEditor/Test/Utils/FakeFoldingManager.cs
index 9029eb03fe..0e4d3cd876 100644
--- a/src/AddIns/DisplayBindings/XmlEditor/Test/Utils/FakeFoldingManager.cs
+++ b/src/AddIns/DisplayBindings/XmlEditor/Test/Utils/FakeFoldingManager.cs
@@ -24,5 +24,9 @@ namespace XmlEditor.Tests.Utils
 			NewFoldsPassedToUpdateFoldings.AddRange(newFoldings);
 			FirstErrorOffset = firstErrorOffset;
 		}
+		
+		public void Dispose()
+		{
+		}
 	}
 }