diff --git a/CHANGELOG b/CHANGELOG
index 93c768953..ea57b6794 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -27,6 +27,7 @@ CHANGELOG Roundcube Webmail
 - Fix XSS issue in handling of a style tag inside of an svg element [CVE-2017-6820]
 - Fix bug where settings/upload.inc could not be used by plugins (#5694)
 - Fix regression in LDAP fuzzy search where it always used prefix search instead (#5713)
+- Fix bug where namespace prefix could not be truncated on folders list if show_real_foldernames=true (#5695)
 - Fix undesired effects when postgres database uses different timezone than PHP host (#5708)
 
 RELEASE 1.3-beta
diff --git a/program/include/rcmail.php b/program/include/rcmail.php
index 783d52bcd..208d1560e 100644
--- a/program/include/rcmail.php
+++ b/program/include/rcmail.php
@@ -1689,12 +1689,13 @@ class rcmail extends rcube
      * Try to localize the given IMAP folder name.
      * UTF-7 decode it in case no localized text was found
      *
-     * @param string $name      Folder name
-     * @param bool   $with_path Enable path localization
+     * @param string $name        Folder name
+     * @param bool   $with_path   Enable path localization
+     * @param bool   $path_remove Remove the path
      *
      * @return string Localized folder name in UTF-8 encoding
      */
-    public function localize_foldername($name, $with_path = false)
+    public function localize_foldername($name, $with_path = false, $path_remove = false)
     {
         $realnames = $this->config->get('show_real_foldernames');
 
@@ -1702,12 +1703,20 @@ class rcmail extends rcube
             return $this->gettext($folder_class);
         }
 
+        $storage   = $this->get_storage();
+        $delimiter = $storage->get_hierarchy_delimiter();
+
+        // Remove the path
+        if ($path_remove) {
+            if (strpos($name, $delimiter)) {
+                $path = explode($delimiter, $name);
+                $name = array_pop($path);
+            }
+        }
         // try to localize path of the folder
-        if ($with_path && !$realnames) {
-            $storage   = $this->get_storage();
-            $delimiter = $storage->get_hierarchy_delimiter();
-            $path      = explode($delimiter, $name);
-            $count     = count($path);
+        else if ($with_path && !$realnames) {
+            $path  = explode($delimiter, $name);
+            $count = count($path);
 
             if ($count > 1) {
                 for ($i = 1; $i < $count; $i++) {
diff --git a/program/steps/settings/edit_folder.inc b/program/steps/settings/edit_folder.inc
index 8ddc17e65..c16f2cabd 100644
--- a/program/steps/settings/edit_folder.inc
+++ b/program/steps/settings/edit_folder.inc
@@ -86,20 +86,21 @@ function rcmail_folder_form($attrib)
 
     // Location (name)
     if ($options['protected']) {
-        $foldername = str_replace($delimiter, ' &raquo; ', rcube::Q($RCMAIL->localize_folderpath($mbox)));
+        $foldername = str_replace($delimiter, ' &raquo; ', rcube::Q($RCMAIL->localize_foldername($mbox, false, true)));
     }
     else if ($options['norename']) {
         $foldername = rcube::Q($folder);
     }
     else {
-        if (isset($_POST['_name']))
+        if (isset($_POST['_name'])) {
             $folder = trim(rcube_utils::get_input_value('_name', rcube_utils::INPUT_POST, true));
+        }
 
         $foldername = new html_inputfield(array('name' => '_name', 'id' => '_name', 'size' => 30));
         $foldername = $foldername->show($folder);
 
-        if ($options['special']) {
-            $foldername .= '&nbsp;(' . rcube::Q($RCMAIL->localize_foldername($mbox)) .')';
+        if ($options['special'] && ($sname = $RCMAIL->localize_foldername($mbox, false, true)) != $folder) {
+            $foldername .= '&nbsp;(' . rcube::Q($sname) .')';
         }
     }
 
diff --git a/program/steps/settings/folders.inc b/program/steps/settings/folders.inc
index 345eb4785..a7fab763e 100644
--- a/program/steps/settings/folders.inc
+++ b/program/steps/settings/folders.inc
@@ -277,12 +277,13 @@ function rcmail_subscription_form($attrib)
     foreach ($list_folders as $i => $folder) {
         $sub_key    = array_search($folder['id'], $a_subscribed);
         $subscribed = $sub_key !== false;
-        $protected  = $folder['id'] == 'INBOX' || ($protect_default && isset($special_folders[$folder['id']]));
+        $special    = $folder['id'] == 'INBOX' || isset($special_folders[$folder['id']]);
+        $protected  = $folder['id'] == 'INBOX' || ($protect_default && $special);
         $noselect   = false;
         $classes    = array();
 
         $folder_utf8    = rcube_charset::convert($folder['id'], 'UTF7-IMAP');
-        $display_folder = rcube::Q($protected ? $RCMAIL->localize_foldername($folder['id']) : $folder['name']);
+        $display_folder = rcube::Q($special ? $RCMAIL->localize_foldername($folder['id'], false, true) : $folder['name']);
 
         if ($folder['virtual']) {
             $classes[] = 'virtual';