diff --git a/CHANGES.md b/CHANGES.md
index 0d8d15a..7ddc49e 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -1,6 +1,7 @@
 # 1.1
 - Added `addons` folder hider option.
 - Preserve folder open/close state.
+- Fixed directories with `.gdignore` not hiding.
 - Fixed files and directories not being sorted.
 - Fixed "failed to load settings" error.
 - Tweaked syntax coloring.
diff --git a/addons/text_editor/TE_TextEditor.gd b/addons/text_editor/TE_TextEditor.gd
index 3ae6952..83b4590 100644
--- a/addons/text_editor/TE_TextEditor.gd
+++ b/addons/text_editor/TE_TextEditor.gd
@@ -707,7 +707,7 @@ func _scan_dir(id:String, path:String, dir:Directory, last_dir:Dictionary, old_l
 		var file_path = dir.get_current_dir().plus_file(fname)
 		
 		if dir.current_is_dir():
-			if show_dir(fname, file_path.get_base_dir()):
+			if show_dir(fname, file_path):
 				var sub_dir = Directory.new()
 				sub_dir.open(file_path)
 				_scan_dir(fname, file_path, sub_dir, a_dirs_and_files, old_last_dir.get("all", {}).get(fname, {}))
diff --git a/addons/text_editor/plugin.cfg b/addons/text_editor/plugin.cfg
index 2cb74b0..f04a52e 100644
--- a/addons/text_editor/plugin.cfg
+++ b/addons/text_editor/plugin.cfg
@@ -3,5 +3,5 @@
 name="TextEditor"
 description="A text editor for Godot."
 author="teebar"
-version="1.0"
+version="1.1"
 script="plugin.gd"
diff --git a/gdignore folder/.gdignore b/gdignore folder/.gdignore
new file mode 100644
index 0000000..8d1c8b6
--- /dev/null
+++ b/gdignore folder/.gdignore	
@@ -0,0 +1 @@
+ 
diff --git a/gdignore folder/Can't see me.txt b/gdignore folder/Can't see me.txt
new file mode 100644
index 0000000..8d1c8b6
--- /dev/null
+++ b/gdignore folder/Can't see me.txt	
@@ -0,0 +1 @@
+