diff --git a/frappe/core/doctype/user_permission/user_permission.py b/frappe/core/doctype/user_permission/user_permission.py
index 13fdc3c5b1..4d6d4e1b08 100644
--- a/frappe/core/doctype/user_permission/user_permission.py
+++ b/frappe/core/doctype/user_permission/user_permission.py
@@ -27,7 +27,13 @@ def get_user_permissions(user=None):
 		try:
 			for perm in frappe.get_all('User Permission',
 				fields=['allow', 'for_value'], filters=dict(user=user)):
-				out.setdefault(perm.allow, []).append(perm.for_value)
+				meta = frappe.get_meta(perm.allow)
+				if not perm.allow in out:
+					out[perm.allow] = []
+				out[perm.allow].append(perm.for_value)
+
+				if meta.is_nested_set():
+					out[perm.allow].extend(frappe.db.get_descendants(perm.allow, perm.for_value))
 
 			frappe.cache().hset("user_permissions", user, out)
 		except frappe.SQLError as e:
diff --git a/frappe/database.py b/frappe/database.py
index be696dadf3..f313769994 100644
--- a/frappe/database.py
+++ b/frappe/database.py
@@ -948,6 +948,12 @@ class Database:
 
 		return s
 
+	def get_descendants(self, doctype, name):
+		'''Return descendants of the current record'''
+		lft, rgt = self.get_value(doctype, name, ('lft', 'rgt'))
+		return self.sql_list('''select name from `tab{doctype}`
+			where lft > {lft} and rgt < {rgt}'''.format(doctype=doctype, lft=lft, rgt=rgt))
+
 def enqueue_jobs_after_commit():
 	if frappe.flags.enqueue_after_commit and len(frappe.flags.enqueue_after_commit) > 0:
 		for job in frappe.flags.enqueue_after_commit:
diff --git a/frappe/model/meta.py b/frappe/model/meta.py
index b088822aec..49093edda2 100644
--- a/frappe/model/meta.py
+++ b/frappe/model/meta.py
@@ -403,6 +403,9 @@ class Meta(Document):
 				module_name = module_name, doctype_name = doctype, suffix=suffix)
 		return None
 
+	def is_nested_set(self):
+		return self.has_field('lft') and self.has_field('rgt')
+
 doctype_table_fields = [
 	frappe._dict({"fieldname": "fields", "options": "DocField"}),
 	frappe._dict({"fieldname": "permissions", "options": "DocPerm"})
diff --git a/frappe/tests/test_db_query.py b/frappe/tests/test_db_query.py
index 464e89726b..8f8126cd76 100644
--- a/frappe/tests/test_db_query.py
+++ b/frappe/tests/test_db_query.py
@@ -6,6 +6,7 @@ import frappe, unittest
 
 from frappe.model.db_query import DatabaseQuery
 from frappe.desk.reportview import get_filters_cond
+from frappe.permissions import add_user_permission, clear_user_permissions_for_doctype
 
 class TestReportview(unittest.TestCase):
 	def test_basic(self):
@@ -133,6 +134,40 @@ class TestReportview(unittest.TestCase):
 			"datediff(modified, creation) as date_diff"], limit_start=0, limit_page_length=1)
 		self.assertTrue('date_diff' in data[0])
 
+	def test_nested_permission(self):
+		clear_user_permissions_for_doctype("File")
+		delete_test_file_hierarchy() # delete already existing folders
+		from frappe.core.doctype.file.file import create_new_folder
+		frappe.set_user('Administrator')
+
+		create_new_folder('level1-A', 'Home')
+		create_new_folder('level2-A', 'Home/level1-A')
+		create_new_folder('level2-B', 'Home/level1-A')
+		create_new_folder('level3-A', 'Home/level1-A/level2-A')
+
+		create_new_folder('level1-B', 'Home')
+		create_new_folder('level2-A', 'Home/level1-B')
+
+		# user permission for only one root folder
+		add_user_permission('File', 'Home/level1-A', 'test2@example.com')
+
+		from frappe.core.page.permission_manager.permission_manager import update
+		update('File', 'All', 0, 'if_owner', 0) # to avoid if_owner filter
+
+		frappe.set_user('test2@example.com')
+		data = DatabaseQuery("File").execute()
+
+		# children of root folder (for which we added user permission) should be accessible
+		self.assertTrue({"name": "Home/level1-A/level2-A"} in data)
+		self.assertTrue({"name": "Home/level1-A/level2-B"} in data)
+		self.assertTrue({"name": "Home/level1-A/level2-A/level3-A"} in data)
+
+		# other folders should not be accessible
+		self.assertFalse({"name": "Home/level1-B"} in data)
+		self.assertFalse({"name": "Home/level1-B/level2-B"} in data)
+		update('File', 'All', 0, 'if_owner', 1)
+		frappe.set_user('Administrator')
+
 def create_event(subject="_Test Event", starts_on=None):
 	""" create a test event """
 
@@ -145,4 +180,16 @@ def create_event(subject="_Test Event", starts_on=None):
 		"starts_on": get_datetime(starts_on),
 	}).insert(ignore_permissions=True)
 
-	return event
\ No newline at end of file
+	return event
+
+def delete_test_file_hierarchy():
+	files_to_delete = [
+		'Home/level1-A/level2-A/level3-A',
+		'Home/level1-A/level2-A',
+		'Home/level1-A/level2-B',
+		'Home/level1-A',
+		'Home/level1-B/level2-A',
+		'Home/level1-B'
+	]
+	for file_name in files_to_delete:
+		frappe.delete_doc('File', file_name)