diff --git a/app/controllers/search_controller.rb b/app/controllers/search_controller.rb
old mode 100644
new mode 100755
index 4b35cd8..263bcd7
--- a/app/controllers/search_controller.rb
+++ b/app/controllers/search_controller.rb
@@ -49,9 +49,11 @@ class SearchController < ApplicationController
       when 'my_projects'
         User.current.projects
       when 'subprojects'
-        @project ? (@project.self_and_descendants.active.to_a) : nil
-      else
+        include_subprojects
+      when 'project'
         @project
+      else
+        Setting.display_subprojects_issues? ? include_subprojects : @project
       end
 
     @object_types = Redmine::Search.available_search_types.dup
@@ -89,6 +91,10 @@ class SearchController < ApplicationController
   end
 
 private
+  def include_subprojects
+    @project ? (@project.self_and_descendants.active.to_a) : nil
+  end
+
   def find_optional_project
     return true unless params[:id]
     @project = Project.find(params[:id])
diff --git a/app/helpers/search_helper.rb b/app/helpers/search_helper.rb
old mode 100644
new mode 100755
index 2554cf9..c0344a2
--- a/app/helpers/search_helper.rb
+++ b/app/helpers/search_helper.rb
@@ -44,12 +44,18 @@ module SearchHelper
   end
 
   def project_select_tag
+    if params[:scope].present?
+      scope = params[:scope].to_s
+    else
+      scope = Setting.display_subprojects_issues? ? 'subprojects' : 'project'
+    end
+
     options = [[l(:label_project_all), 'all']]
     options << [l(:label_my_projects), 'my_projects'] unless User.current.memberships.empty?
     options << [l(:label_and_its_subprojects, @project.name), 'subprojects'] unless @project.nil? || @project.descendants.active.empty?
-    options << [@project.name, ''] unless @project.nil?
+    options << [@project.name, 'project'] unless @project.nil?
     label_tag("scope", l(:description_project_scope), :class => "hidden-for-sighted") +
-    select_tag('scope', options_for_select(options, params[:scope].to_s)) if options.size > 1
+    select_tag('scope', options_for_select(options, scope)) if options.size > 1
   end
 
   def render_results_by_type(results_by_type)
@@ -63,7 +69,7 @@ module SearchHelper
                        :all_words => params[:all_words], :scope => params[:scope], t => 1)
     end
     ('<ul>'.html_safe +
-        links.map {|link| content_tag('li', link)}.join(' ').html_safe + 
+        links.map {|link| content_tag('li', link)}.join(' ').html_safe +
         '</ul>'.html_safe) unless links.empty?
   end
 end
diff --git a/config/locales/en.yml b/config/locales/en.yml
old mode 100644
new mode 100755
index a8eca2d..4129da0
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -411,7 +411,7 @@ en:
   setting_per_page_options: Objects per page options
   setting_user_format: Users display format
   setting_activity_days_default: Days displayed on project activity
-  setting_display_subprojects_issues: Display subprojects issues on main projects by default
+  setting_display_subprojects_issues: Include subprojects issues on main projects by default
   setting_enabled_scm: Enabled SCM
   setting_mail_handler_body_delimiters: "Truncate emails after one of these lines"
   setting_mail_handler_enable_regex_delimiters: "Enable regular expressions"
diff --git a/test/functional/search_controller_test.rb b/test/functional/search_controller_test.rb
old mode 100644
new mode 100755
index 720d62d..e0dc1a4
--- a/test/functional/search_controller_test.rb
+++ b/test/functional/search_controller_test.rb
@@ -169,14 +169,42 @@ class SearchControllerTest < Redmine::ControllerTest
     end
   end
 
-  def test_search_project_and_subprojects
+  def test_search_scope_subprojects_should_search_in_project_and_subprojects
     get :index, :params => {:id => 1, :q => 'recipe subproject', :scope => 'subprojects', :all_words => ''}
+     assert_response :success
+
+     assert_select '#search-results' do
+       assert_select 'dt.issue', :text => /Bug #1/
+       assert_select 'dt.issue', :text => /Bug #5/
+     end
+   end
+
+  def test_search_scope_project_should_search_only_in_project
+    get :index, :params => {:id => 1, :q => 'recipe subproject', :scope => 'project', :all_words => ''}
     assert_response :success
 
     assert_select '#search-results' do
       assert_select 'dt.issue', :text => /Bug #1/
-      assert_select 'dt.issue', :text => /Bug #5/
+      assert_select 'dt.issue a[href="/issues/5"]', 0
+    end
+  end
+
+ def test_search_scope_with_setting_display_subprojects_issues_on_should_set_scope_to_subprojects
+    with_settings :display_subprojects_issues => '1'  do
+      get :index, :params => {:id => 1, :q => 'recipe subproject', :all_words => ''}
+    end
+    assert_response :success
+
+    assert_select '#scope option[selected=selected][value=?]', 'subprojects', :text => 'eCookbook and its subprojects'
+  end
+
+  def test_search_with_setting_display_subprojects_issues_off_should_set_scope_to_project
+    with_settings :display_subprojects_issues => '0'  do
+      get :index, :params => {:id => 1, :q => 'recipe subproject', :all_words => ''}
     end
+    assert_response :success
+
+    assert_select '#scope option[selected=selected][value=?]', 'project', :text => 'eCookbook'
   end
 
   def test_search_without_searchable_custom_fields
@@ -270,7 +298,7 @@ class SearchControllerTest < Redmine::ControllerTest
     assert_select 'input[name=all_words]:not([checked])'
     assert_select '#search-results' do
       assert_select 'dt.issue', :text => / #3 /
-      assert_select 'dt', 3
+      assert_select 'dt', 4
     end
   end