diff --git a/filetree/src/main/kotlin/com/zyron/filetree/adapter/FileTreeAdapter.kt b/filetree/src/main/kotlin/com/zyron/filetree/adapter/FileTreeAdapter.kt
index 5cb0972..f383578 100644
--- a/filetree/src/main/kotlin/com/zyron/filetree/adapter/FileTreeAdapter.kt
+++ b/filetree/src/main/kotlin/com/zyron/filetree/adapter/FileTreeAdapter.kt
@@ -4,14 +4,15 @@ import android.content.Context
 import android.util.*
 import android.view.*
 import androidx.core.content.ContextCompat
-import androidx.recyclerview.widget.*
+import androidx.recyclerview.widget.DiffUtil
+import androidx.recyclerview.widget.RecyclerView
 import com.zyron.filetree.R
 import com.zyron.filetree.FileTree
+import com.zyron.filetree.FileTreeNode
 import com.zyron.filetree.FileTreeAdapterUpdateListener
-import com.zyron.filetree.viewholder.FileTreeViewHolder
-import com.zyron.filetree.viewmodel.*
+import com.zyron.filetree.viewmodel.FileTreeNodeDiffCallback
 import com.zyron.filetree.provider.FileTreeIconProvider
-import kotlinx.coroutines.*
+import com.zyron.filetree.viewholder.FileTreeViewHolder
 import java.io.File
 import java.nio.file.Files
 
@@ -22,13 +23,9 @@ interface FileTreeClickListener {
     fun onFolderLongClick(folder: File): Boolean
 }
 
-class FileTreeAdapter(
-    private val context: Context,
-    private val fileTree: FileTree,
-    private val fileTreeIconProvider: FileTreeIconProvider,
-    private val listener: FileTreeClickListener? = null
-) : RecyclerView.Adapter<FileTreeViewHolder>(), FileTreeAdapterUpdateListener {
+class FileTreeAdapter(private val context: Context, private val fileTree: FileTree, private val fileTreeIconProvider: FileTreeIconProvider, private val listener: FileTreeClickListener? = null) : RecyclerView.Adapter<FileTreeViewHolder>(), FileTreeAdapterUpdateListener {
 
+    private var selectedItemPosition: Int = RecyclerView.NO_POSITION
     private var nodes: MutableList<FileTreeNode> = fileTree.getNodes().toMutableList()
 
     override fun onCreateViewHolder(parent: ViewGroup, viewType: Int): FileTreeViewHolder {
@@ -38,55 +35,64 @@ class FileTreeAdapter(
 
     override fun onBindViewHolder(holder: FileTreeViewHolder, position: Int) {
         val node = nodes[position]
-
-        val indentationDp = 16 * node.level
+        
+        val indentationDp = 12 * node.level
         val indentationPx = TypedValue.applyDimension(TypedValue.COMPLEX_UNIT_DIP, indentationDp.toFloat(), context.resources.displayMetrics).toInt()
-
+        
         val isRtl = context.resources.configuration.layoutDirection == View.LAYOUT_DIRECTION_RTL
 
         val layoutParams = holder.itemView.layoutParams as ViewGroup.MarginLayoutParams
         if (isRtl) {
             layoutParams.rightMargin = indentationPx
             layoutParams.leftMargin = 0
+            
         } else {
             layoutParams.leftMargin = indentationPx
             layoutParams.rightMargin = 0
+            
         }
         holder.itemView.layoutParams = layoutParams
 
-        holder.itemView.setPadding(4, 4, 4, 4)
-        holder.chevronIconView.setPadding(0, 0, 0, 0)
-        holder.fileIconView.setPadding(0, 0, 0, 0)
+        val chevronIcon = if (node.isExpanded) {
+            fileTreeIconProvider.getChevronCollapseIcon()
+        } else {
+            fileTreeIconProvider.getChevronExpandIcon()
+        }
+
+        holder.itemView.setPadding(4, 8, 4, 8)
+        holder.chevronIconView.setPadding(4, 0, 2, 0)
+        holder.fileIconView.setPadding(2, 0, 4, 0)
         holder.fileNameView.setPadding(6, 7, 7, 6)
 
+        holder.itemView.setBackgroundResource(R.drawable.item_background)
+
+        holder.itemView.isSelected = position == selectedItemPosition && node.isExpanded && Files.isDirectory(node.file.toPath())
+
         if (Files.isDirectory(node.file.toPath())) {
+            holder.chevronIconView.setImageDrawable(ContextCompat.getDrawable(context, chevronIcon))
             holder.chevronIconView.visibility = View.VISIBLE
             holder.fileIconView.setImageDrawable(ContextCompat.getDrawable(context, fileTreeIconProvider.getFolderIcon()))
             holder.fileNameView.text = node.file.name
 
-            val chevronIcon = if (node.isExpanded) {
-                fileTreeIconProvider.getChevronCollapseIcon()
-            } else {
-                fileTreeIconProvider.getChevronExpandIcon()
-            }
-            
-            holder.chevronIconView.setImageDrawable(ContextCompat.getDrawable(context, chevronIcon))
-
             holder.itemView.setOnClickListener {
+                val previousPosition = selectedItemPosition
                 if (node.isExpanded) {
                     fileTree.collapseNode(node)
                 } else {
                     fileTree.expandNode(node)
                 }
-                notifyItemChanged(holder.bindingAdapterPosition)
+                selectedItemPosition = holder.bindingAdapterPosition
+                notifyItemChanged(selectedItemPosition)
+                notifyItemChanged(previousPosition)
             }
-            
+
             holder.itemView.setOnLongClickListener {
                 listener?.onFolderLongClick(node.file) ?: false
             }
-            
+
         } else if (node.file.isFile) {
-            holder.chevronIconView.visibility = View.GONE
+            holder.chevronIconView.setImageDrawable(ContextCompat.getDrawable(context, chevronIcon))        
+            holder.chevronIconView.visibility = View.INVISIBLE
             holder.fileIconView.setImageDrawable(ContextCompat.getDrawable(context, fileTreeIconProvider.getIconForFile(node.file)))
             holder.fileNameView.text = node.file.name
 
@@ -114,7 +120,6 @@ class FileTreeAdapter(
         nodes.addAll(newNodes)
         diffResult.dispatchUpdatesTo(this)
     }
-    
 
     override fun getItemCount(): Int {
         return nodes.size