diff --git a/app/assets/javascripts/environments/components/environment.js b/app/assets/javascripts/environments/components/environment.js
index 51aab8460f6..0518422e475 100644
--- a/app/assets/javascripts/environments/components/environment.js
+++ b/app/assets/javascripts/environments/components/environment.js
@@ -24,6 +24,7 @@ export default Vue.component('environment-component', {
       state: store.state,
       visibility: 'available',
       isLoading: false,
+      isLoadingFolderContent: false,
       cssContainerClass: environmentsData.cssClass,
       endpoint: environmentsData.environmentsDataEndpoint,
       canCreateDeployment: environmentsData.canCreateDeployment,
@@ -68,15 +69,21 @@ export default Vue.component('environment-component', {
     this.fetchEnvironments();
 
     eventHub.$on('refreshEnvironments', this.fetchEnvironments);
+    eventHub.$on('toggleFolder', this.toggleFolder);
   },
 
   beforeDestroyed() {
     eventHub.$off('refreshEnvironments');
+    eventHub.$off('toggleFolder');
   },
 
   methods: {
-    toggleRow(model) {
-      return this.store.toggleFolder(model.name);
+    toggleFolder(folder, folderUrl) {
+      this.store.toggleFolder(folder);
+
+      if (!folder.isOpen) {
+        this.fetchChildEnvironments(folder, folderUrl);
+      }
     },
 
     /**
@@ -117,6 +124,21 @@ export default Vue.component('environment-component', {
           new Flash('An error occurred while fetching the environments.');
         });
     },
+
+    fetchChildEnvironments(folder, folderUrl) {
+      this.isLoadingFolderContent = true;
+
+      this.service.getFolderContent(folderUrl)
+        .then(resp => resp.json())
+        .then((response) => {
+          this.store.setfolderContent(folder, response.environments);
+          this.isLoadingFolderContent = false;
+        })
+        .catch(() => {
+          this.isLoadingFolderContent = false;
+          new Flash('An error occurred while fetching the environments.');
+        });
+    },
   },
 
   template: `
@@ -179,7 +201,8 @@ export default Vue.component('environment-component', {
             :environments="state.environments"
             :can-create-deployment="canCreateDeploymentParsed"
             :can-read-environment="canReadEnvironmentParsed"
-            :service="service"/>
+            :service="service"
+            :is-loading-folder-content="isLoadingFolderContent" />
         </div>
 
         <table-pagination v-if="state.paginationInformation && state.paginationInformation.totalPages > 1"
diff --git a/app/assets/javascripts/environments/components/environment_item.js b/app/assets/javascripts/environments/components/environment_item.js
index 9c196562c6c..e44d93a30c7 100644
--- a/app/assets/javascripts/environments/components/environment_item.js
+++ b/app/assets/javascripts/environments/components/environment_item.js
@@ -7,6 +7,7 @@ import RollbackComponent from './environment_rollback';
 import TerminalButtonComponent from './environment_terminal_button';
 import MonitoringButtonComponent from './environment_monitoring';
 import CommitComponent from '../../vue_shared/components/commit';
+import eventHub from '../event_hub';
 
 /**
  * Envrionment Item Component
@@ -410,7 +411,6 @@ export default {
     folderUrl() {
       return `${window.location.pathname}/folders/${this.model.folderName}`;
     },
-
   },
 
   /**
@@ -428,15 +428,37 @@ export default {
     return true;
   },
 
+  methods: {
+    onClickFolder() {
+      eventHub.$emit('toggleFolder', this.model, this.folderUrl);
+    },
+  },
+
   template: `
-    <tr>
+    <tr :class="{ 'js-child-row': model.isChildren }">
       <td>
         <a v-if="!model.isFolder"
           class="environment-name"
+          :class="{ 'prepend-left-default': model.isChildren }"
           :href="environmentPath">
           {{model.name}}
         </a>
-        <a v-else class="folder-name" :href="folderUrl">
+        <span v-else
+          class="folder-name"
+          @click="onClickFolder"
+          role="button">
+
+          <span class="folder-icon">
+            <i
+              v-show="model.isOpen"
+              class="fa fa-caret-down"
+              aria-hidden="true" />
+            <i
+              v-show="!model.isOpen"
+              class="fa fa-caret-right"
+              aria-hidden="true"/>
+          </span>
+
           <span class="folder-icon">
             <i class="fa fa-folder" aria-hidden="true"></i>
           </span>
@@ -448,7 +470,7 @@ export default {
           <span class="badge">
             {{model.size}}
           </span>
-        </a>
+        </span>
       </td>
 
       <td class="deployment-column">
diff --git a/app/assets/javascripts/environments/components/environments_table.js b/app/assets/javascripts/environments/components/environments_table.js
index 338dff40bc9..5e6af3a1d45 100644
--- a/app/assets/javascripts/environments/components/environments_table.js
+++ b/app/assets/javascripts/environments/components/environments_table.js
@@ -31,6 +31,18 @@ export default {
       type: Object,
       required: true,
     },
+
+    isLoadingFolderContent: {
+      type: Boolean,
+      required: false,
+      default: false,
+    },
+  },
+
+  methods: {
+    folderUrl(model) {
+      return `${window.location.pathname}/folders/${model.folderName}`;
+    },
   },
 
   template: `
@@ -53,6 +65,31 @@ export default {
             :can-create-deployment="canCreateDeployment"
             :can-read-environment="canReadEnvironment"
             :service="service"></tr>
+
+          <template v-if="model.isFolder && model.isOpen && model.children && model.children.length > 0">
+            <tr v-if="isLoadingFolderContent">
+              <td colspan="6" class="text-center">
+                <i class="fa fa-spin fa-spinner fa-2x" aria-hidden="true"/>
+              </td>
+            </tr>
+
+            <template v-else>
+              <tr is="environment-item"
+                v-for="children in model.children"
+                :model="children"
+                :can-create-deployment="canCreateDeployment"
+                :can-read-environment="canReadEnvironment"
+                :service="service"></tr>
+
+              <tr>
+                <td colspan="6" class="text-center">
+                  <a :href="folderUrl(model)" class="btn btn-default">
+                    Show all
+                  </a>
+                </td>
+              </tr>
+            </template>
+          </template>
         </template>
       </tbody>
     </table>
diff --git a/app/assets/javascripts/environments/services/environments_service.js b/app/assets/javascripts/environments/services/environments_service.js
index 07040bf0d73..8adb53ea86d 100644
--- a/app/assets/javascripts/environments/services/environments_service.js
+++ b/app/assets/javascripts/environments/services/environments_service.js
@@ -7,6 +7,7 @@ Vue.use(VueResource);
 export default class EnvironmentsService {
   constructor(endpoint) {
     this.environments = Vue.resource(endpoint);
+    this.folderResults = 3;
   }
 
   get(scope, page) {
@@ -16,4 +17,8 @@ export default class EnvironmentsService {
   postAction(endpoint) {
     return Vue.http.post(endpoint, {}, { emulateJSON: true });
   }
+
+  getFolderContent(folderUrl) {
+    return Vue.http.get(`${folderUrl}.json?per_page=${this.folderResults}`);
+  }
 }
diff --git a/app/assets/javascripts/environments/stores/environments_store.js b/app/assets/javascripts/environments/stores/environments_store.js
index 3c3084f3b78..158e7922e3c 100644
--- a/app/assets/javascripts/environments/stores/environments_store.js
+++ b/app/assets/javascripts/environments/stores/environments_store.js
@@ -38,7 +38,12 @@ export default class EnvironmentsStore {
       let filtered = {};
 
       if (env.size > 1) {
-        filtered = Object.assign({}, env, { isFolder: true, folderName: env.name });
+        filtered = Object.assign({}, env, {
+          isFolder: true,
+          folderName: env.name,
+          isOpen: false,
+          children: [],
+        });
       }
 
       if (env.latest) {
@@ -85,4 +90,67 @@ export default class EnvironmentsStore {
     this.state.stoppedCounter = count;
     return count;
   }
+
+  /**
+    * Toggles folder open property for the given folder.
+    *
+    * @param  {Object} folder
+    * @return {Array}
+    */
+  toggleFolder(folder) {
+    return this.updateFolder(folder, 'isOpen', !folder.isOpen);
+  }
+
+  /**
+   * Updates the folder with the received environments.
+   *
+   *
+   * @param  {Object} folder       Folder to update
+   * @param  {Array} environments Received environments
+   * @return {Object}
+   */
+  setfolderContent(folder, environments) {
+    const updatedEnvironments = environments.map((env) => {
+      let updated = env;
+
+      if (env.latest) {
+        updated = Object.assign({}, env, env.latest);
+        delete updated.latest;
+      } else {
+        updated = env;
+      }
+
+      updated.isChildren = true;
+
+      return updated;
+    });
+
+    return this.updateFolder(folder, 'children', updatedEnvironments);
+  }
+
+  /**
+   * Given a folder a prop and a new value updates the correct folder.
+   *
+   * @param  {Object} folder
+   * @param  {String} prop
+   * @param  {String|Boolean|Object|Array} newValue
+   * @return {Array}
+   */
+  updateFolder(folder, prop, newValue) {
+    const environments = this.state.environments;
+
+    const updatedEnvironments = environments.map((env) => {
+      const updateEnv = Object.assign({}, env);
+      if (env.isFolder && env.id === folder.id) {
+        updateEnv[prop] = newValue;
+      }
+
+      return updateEnv;
+    });
+
+    this.state.environments = updatedEnvironments;
+
+    return updatedEnvironments;
+  }
+
 }
diff --git a/changelogs/unreleased/28732-expandable-folders.yml b/changelogs/unreleased/28732-expandable-folders.yml
new file mode 100644
index 00000000000..9ae30ba6253
--- /dev/null
+++ b/changelogs/unreleased/28732-expandable-folders.yml
@@ -0,0 +1,4 @@
+---
+title: Add back expandable folder behavior
+merge_request:
+author:
diff --git a/spec/features/projects/environments/environments_spec.rb b/spec/features/projects/environments/environments_spec.rb
index 641e2cf7402..92a8abdca7b 100644
--- a/spec/features/projects/environments/environments_spec.rb
+++ b/spec/features/projects/environments/environments_spec.rb
@@ -23,6 +23,42 @@ feature 'Environments page', :feature, :js do
       expect(page).to have_link('Available')
       expect(page).to have_link('Stopped')
     end
+
+    describe 'with one available environment' do
+      given(:environment) { create(:environment, project: project, state: :available) }
+
+      describe 'in available tab page' do
+        it 'should show one environment' do
+          visit namespace_project_environments_path(project.namespace, project, scope: 'available')
+          expect(page.all('tbody > tr').length).to eq(1)
+        end
+      end
+
+      describe 'in stopped tab page' do
+        it 'should show no environments' do
+          visit namespace_project_environments_path(project.namespace, project, scope: 'stopped')
+          expect(page).to have_content('You don\'t have any environments right now')
+        end
+      end
+    end
+
+    describe 'with one stopped environment' do
+      given(:environment) { create(:environment, project: project, state: :stopped) }
+
+      describe 'in available tab page' do
+        it 'should show no environments' do
+          visit namespace_project_environments_path(project.namespace, project, scope: 'available')
+          expect(page).to have_content('You don\'t have any environments right now')
+        end
+      end
+
+      describe 'in stopped tab page' do
+        it 'should show one environment' do
+          visit namespace_project_environments_path(project.namespace, project, scope: 'stopped')
+          expect(page.all('tbody > tr').length).to eq(1)
+        end
+      end
+    end
   end
 
   context 'without environments' do
diff --git a/spec/javascripts/environments/environment_spec.js b/spec/javascripts/environments/environment_spec.js
index 9bcf617fcd8..4431baa4b96 100644
--- a/spec/javascripts/environments/environment_spec.js
+++ b/spec/javascripts/environments/environment_spec.js
@@ -1,7 +1,7 @@
 import Vue from 'vue';
 import '~/flash';
 import EnvironmentsComponent from '~/environments/components/environment';
-import { environment } from './mock_data';
+import { environment, folder } from './mock_data';
 
 describe('Environment', () => {
   preloadFixtures('static/environments/environments.html.raw');
@@ -179,4 +179,101 @@ describe('Environment', () => {
       }, 0);
     });
   });
+
+  describe('expandable folders', () => {
+    const environmentsResponseInterceptor = (request, next) => {
+      next(request.respondWith(JSON.stringify({
+        environments: [folder],
+        stopped_count: 0,
+        available_count: 1,
+      }), {
+        status: 200,
+        headers: {
+          'X-nExt-pAge': '2',
+          'x-page': '1',
+          'X-Per-Page': '1',
+          'X-Prev-Page': '',
+          'X-TOTAL': '37',
+          'X-Total-Pages': '2',
+        },
+      }));
+    };
+
+    beforeEach(() => {
+      Vue.http.interceptors.push(environmentsResponseInterceptor);
+      component = new EnvironmentsComponent({
+        el: document.querySelector('#environments-list-view'),
+      });
+    });
+
+    afterEach(() => {
+      Vue.http.interceptors = _.without(
+        Vue.http.interceptors, environmentsResponseInterceptor,
+      );
+    });
+
+    it('should open a closed folder', (done) => {
+      setTimeout(() => {
+        component.$el.querySelector('.folder-name').click();
+
+        Vue.nextTick(() => {
+          expect(
+            component.$el.querySelector('.folder-icon i.fa-caret-right').getAttribute('style'),
+          ).toContain('display: none');
+          expect(
+            component.$el.querySelector('.folder-icon i.fa-caret-down').getAttribute('style'),
+          ).not.toContain('display: none');
+          done();
+        });
+      });
+    });
+
+    it('should close an opened folder', (done) => {
+      setTimeout(() => {
+        // open folder
+        component.$el.querySelector('.folder-name').click();
+
+        Vue.nextTick(() => {
+          // close folder
+          component.$el.querySelector('.folder-name').click();
+
+          Vue.nextTick(() => {
+            expect(
+              component.$el.querySelector('.folder-icon i.fa-caret-down').getAttribute('style'),
+            ).toContain('display: none');
+            expect(
+              component.$el.querySelector('.folder-icon i.fa-caret-right').getAttribute('style'),
+            ).not.toContain('display: none');
+            done();
+          });
+        });
+      });
+    });
+
+    it('should show children environments and a button to show all environments', (done) => {
+      setTimeout(() => {
+        // open folder
+        component.$el.querySelector('.folder-name').click();
+
+        Vue.nextTick(() => {
+          const folderInterceptor = (request, next) => {
+            next(request.respondWith(JSON.stringify({
+              environments: [environment],
+            }), { status: 200 }));
+          };
+
+          Vue.http.interceptors.push(folderInterceptor);
+
+          // wait for next async request
+          setTimeout(() => {
+            expect(component.$el.querySelectorAll('.js-child-row').length).toEqual(1);
+            expect(component.$el.querySelector('td.text-center > a.btn').textContent).toContain('Show all');
+
+            Vue.http.interceptors = _.without(Vue.http.interceptors, folderInterceptor);
+            done();
+          });
+        });
+      });
+    });
+  });
 });
diff --git a/spec/javascripts/environments/environments_store_spec.js b/spec/javascripts/environments/environments_store_spec.js
index 115d84b50f5..f617c4bdffe 100644
--- a/spec/javascripts/environments/environments_store_spec.js
+++ b/spec/javascripts/environments/environments_store_spec.js
@@ -1,38 +1,106 @@
 import Store from '~/environments/stores/environments_store';
 import { environmentsList, serverData } from './mock_data';
 
-(() => {
-  describe('Store', () => {
-    let store;
+describe('Store', () => {
+  let store;
 
-    beforeEach(() => {
-      store = new Store();
-    });
+  beforeEach(() => {
+    store = new Store();
+  });
 
-    it('should start with a blank state', () => {
-      expect(store.state.environments.length).toEqual(0);
-      expect(store.state.stoppedCounter).toEqual(0);
-      expect(store.state.availableCounter).toEqual(0);
-      expect(store.state.paginationInformation).toEqual({});
-    });
+  it('should start with a blank state', () => {
+    expect(store.state.environments.length).toEqual(0);
+    expect(store.state.stoppedCounter).toEqual(0);
+    expect(store.state.availableCounter).toEqual(0);
+    expect(store.state.paginationInformation).toEqual({});
+  });
 
+  it('should store environments', () => {
+    store.storeEnvironments(serverData);
+    expect(store.state.environments.length).toEqual(serverData.length);
+    expect(store.state.environments[0]).toEqual(environmentsList[0]);
+  });
+
+  it('should store available count', () => {
+    store.storeAvailableCount(2);
+    expect(store.state.availableCounter).toEqual(2);
+  });
+
+  it('should store stopped count', () => {
+    store.storeStoppedCount(2);
+    expect(store.state.stoppedCounter).toEqual(2);
+  });
+
+  describe('store environments', () => {
     it('should store environments', () => {
       store.storeEnvironments(serverData);
       expect(store.state.environments.length).toEqual(serverData.length);
-      expect(store.state.environments[0]).toEqual(environmentsList[0]);
     });
 
-    it('should store available count', () => {
-      store.storeAvailableCount(2);
-      expect(store.state.availableCounter).toEqual(2);
+    it('should add folder keys when environment is a folder', () => {
+      const environment = {
+        name: 'bar',
+        size: 3,
+        id: 2,
+      };
+
+      store.storeEnvironments([environment]);
+      expect(store.state.environments[0].isFolder).toEqual(true);
+      expect(store.state.environments[0].folderName).toEqual('bar');
     });
 
-    it('should store stopped count', () => {
-      store.storeStoppedCount(2);
-      expect(store.state.stoppedCounter).toEqual(2);
+    it('should extract content of `latest` key when provided', () => {
+      const environment = {
+        name: 'bar',
+        size: 3,
+        id: 2,
+        latest: {
+          last_deployment: {},
+          isStoppable: true,
+        },
+      };
+
+      store.storeEnvironments([environment]);
+      expect(store.state.environments[0].last_deployment).toEqual({});
+      expect(store.state.environments[0].isStoppable).toEqual(true);
     });
 
-    it('should store pagination information', () => {
+    it('should store latest.name when the environment is not a folder', () => {
+      store.storeEnvironments(serverData);
+      expect(store.state.environments[0].name).toEqual(serverData[0].latest.name);
+    });
+
+    it('should store root level name when environment is a folder', () => {
+      store.storeEnvironments(serverData);
+      expect(store.state.environments[1].folderName).toEqual(serverData[1].name);
+    });
+  });
+
+  describe('toggleFolder', () => {
+    it('should toggle folder', () => {
+      store.storeEnvironments(serverData);
+
+      store.toggleFolder(store.state.environments[1]);
+      expect(store.state.environments[1].isOpen).toEqual(true);
+
+      store.toggleFolder(store.state.environments[1]);
+      expect(store.state.environments[1].isOpen).toEqual(false);
+    });
+  });
+
+  describe('setfolderContent', () => {
+    it('should store folder content', () => {
+      store.storeEnvironments(serverData);
+
+      store.setfolderContent(store.state.environments[1], serverData);
+
+      expect(store.state.environments[1].children.length).toEqual(serverData.length);
+      expect(store.state.environments[1].children[0].isChildren).toEqual(true);
+    });
+  });
+
+  describe('store pagination', () => {
+    it('should store normalized and integer pagination information', () => {
       const pagination = {
         'X-nExt-pAge': '2',
         'X-page': '1',
@@ -55,4 +123,4 @@ import { environmentsList, serverData } from './mock_data';
       expect(store.state.paginationInformation).toEqual(expectedResult);
     });
   });
-})();
+});
diff --git a/spec/javascripts/environments/mock_data.js b/spec/javascripts/environments/mock_data.js
index 30861481cc5..15e11aa686b 100644
--- a/spec/javascripts/environments/mock_data.js
+++ b/spec/javascripts/environments/mock_data.js
@@ -84,3 +84,19 @@ export const environment = {
     updated_at: '2017-01-31T10:53:46.894Z',
   },
 };
+
+export const folder = {
+  folderName: 'build',
+  size: 5,
+  id: 12,
+  name: 'build/update-README',
+  state: 'available',
+  external_url: null,
+  environment_type: 'build',
+  last_deployment: null,
+  'stop_action?': false,
+  environment_path: '/root/review-app/environments/12',
+  stop_path: '/root/review-app/environments/12/stop',
+  created_at: '2017-02-01T19:42:18.400Z',
+  updated_at: '2017-02-01T19:42:18.400Z',
+};