diff --git a/src/panels/folders/folderspanel.cpp b/src/panels/folders/folderspanel.cpp
index eef27ce472..add7f692b9 100644
--- a/src/panels/folders/folderspanel.cpp
+++ b/src/panels/folders/folderspanel.cpp
@@ -137,7 +137,7 @@ bool FoldersPanel::urlChanged()
 void FoldersPanel::reloadTree()
 {
     if (m_controller) {
-        loadTree(url());
+        loadTree(url(), true);
     }
 }
 
@@ -316,34 +316,42 @@ void FoldersPanel::startFadeInAnimation()
     anim->setDuration(200);
 }
 
-void FoldersPanel::loadTree(const QUrl& url)
+void FoldersPanel::loadTree(const QUrl& url, bool allowJumpHome)
 {
     Q_ASSERT(m_controller);
 
     m_updateCurrentItem = false;
+    bool jumpHome = false;
 
     QUrl baseUrl;
-    if (url.isLocalFile()) {
-        const bool isInHomeFolder = Dolphin::homeUrl().isParentOf(url) || (Dolphin::homeUrl() == url);
-        if (FoldersPanelSettings::limitFoldersPanelToHome() && isInHomeFolder) {
+    if (!url.isLocalFile()) {
+        // Clear the path for non-local URLs and use it as base
+        baseUrl = url;
+        baseUrl.setPath(QString('/'));
+    } else if (Dolphin::homeUrl().isParentOf(url) || (Dolphin::homeUrl() == url)) {
+        if (FoldersPanelSettings::limitFoldersPanelToHome() ) {
             baseUrl = Dolphin::homeUrl();
         } else {
             // Use the root directory as base for local URLs (#150941)
             baseUrl = QUrl::fromLocalFile(QDir::rootPath());
         }
+    } else if (FoldersPanelSettings::limitFoldersPanelToHome() && allowJumpHome) {
+        baseUrl = Dolphin::homeUrl();
+        jumpHome = true;
     } else {
-        // Clear the path for non-local URLs and use it as base
-        baseUrl = url;
-        baseUrl.setPath(QString('/'));
+        // Use the root directory as base for local URLs (#150941)
+        baseUrl = QUrl::fromLocalFile(QDir::rootPath());
     }
 
-    if (m_model->directory() != baseUrl) {
+    if (m_model->directory() != baseUrl && !jumpHome) {
         m_updateCurrentItem = true;
         m_model->refreshDirectory(baseUrl);
     }
 
     const int index = m_model->index(url);
-    if (index >= 0) {
+    if (jumpHome == true) {
+      emit folderActivated(baseUrl);
+    } else if (index >= 0) {
         updateCurrentItem(index);
     } else if (url == baseUrl) {
         // clear the selection when visiting the base url
diff --git a/src/panels/folders/folderspanel.h b/src/panels/folders/folderspanel.h
index ab6c41b345..a653b45840 100644
--- a/src/panels/folders/folderspanel.h
+++ b/src/panels/folders/folderspanel.h
@@ -89,8 +89,9 @@ private:
      * Initializes the base URL of the tree and expands all
      * directories until \a url.
      * @param url  URL of the leaf directory that should get expanded.
+     * @param allowJumpHome  indicate context menu got checked.
      */
-    void loadTree(const QUrl& url);
+    void loadTree(const QUrl& url, bool allowJumpHome = false);
 
     void reloadTree();
 
diff --git a/src/panels/folders/treeviewcontextmenu.cpp b/src/panels/folders/treeviewcontextmenu.cpp
index 6381a88ff1..132637f15a 100644
--- a/src/panels/folders/treeviewcontextmenu.cpp
+++ b/src/panels/folders/treeviewcontextmenu.cpp
@@ -127,14 +127,13 @@ void TreeViewContextMenu::open()
 
     // insert 'Limit to Home Directory'
     const QUrl url = m_fileItem.url();
-    const bool showLimitToHomeDirectory = url.isLocalFile() && (Dolphin::homeUrl().isParentOf(url) || (Dolphin::homeUrl() == url));
-    if (showLimitToHomeDirectory) {
-        QAction* limitFoldersPanelToHomeAction = new QAction(i18nc("@action:inmenu", "Limit to Home Directory"), this);
-        limitFoldersPanelToHomeAction->setCheckable(true);
-        limitFoldersPanelToHomeAction->setChecked(m_parent->limitFoldersPanelToHome());
-        popup->addAction(limitFoldersPanelToHomeAction);
-        connect(limitFoldersPanelToHomeAction, &QAction::toggled, this, &TreeViewContextMenu::setLimitFoldersPanelToHome);
-    }
+    const bool enableLimitToHomeDirectory = url.isLocalFile();
+    QAction* limitFoldersPanelToHomeAction = new QAction(i18nc("@action:inmenu", "Limit to Home Directory"), this);
+    limitFoldersPanelToHomeAction->setCheckable(true);
+    limitFoldersPanelToHomeAction->setEnabled(enableLimitToHomeDirectory);
+    limitFoldersPanelToHomeAction->setChecked(m_parent->limitFoldersPanelToHome());
+    popup->addAction(limitFoldersPanelToHomeAction);
+    connect(limitFoldersPanelToHomeAction, &QAction::toggled, this, &TreeViewContextMenu::setLimitFoldersPanelToHome);
 
     // insert 'Automatic Scrolling'
     QAction* autoScrollingAction = new QAction(i18nc("@action:inmenu", "Automatic Scrolling"), this);