diff --git a/core/changelog.txt b/core/changelog.txt
index 13b294fe8..0255b6d63 100644
--- a/core/changelog.txt
+++ b/core/changelog.txt
@@ -95,6 +95,7 @@ Please visit http://aegisub.net to download latest version
 - Fixed the default resolution for video display and resolution resampler when the script's field is blank. (AMZ)
 - Stopping audio playback will now stop video playback as well. (AMZ)
 - Implemented sorting of subtitles by start time. (AMZ)
+- Recovered subtitle files are now saved in their own subfolder. (AMZ)
 
 
 = 1.09 beta - 2006.01.16 ===========================
diff --git a/core/main.cpp b/core/main.cpp
index a345e15e2..10f367d3d 100644
--- a/core/main.cpp
+++ b/core/main.cpp
@@ -137,8 +137,15 @@ bool AegisubApp::OnInit() {
 // Unhandled exception
 void AegisubApp::OnUnhandledException() {
 	// Attempt to recover file
-	wxFileName orig(AssFile::top->filename);
-	wxString filename = folderName + orig.GetName() + _T(".RECOVER.ass");
+	wxFileName origfile(AssFile::top->filename);
+	wxString path = Options.AsText(_T("Auto recovery path"));
+	if (path.IsEmpty()) path = folderName;
+	wxFileName dstpath(path);
+	if (!dstpath.IsAbsolute()) path = AegisubApp::folderName + path;
+	path += _T("/");
+	dstpath.Assign(path);
+	if (!dstpath.DirExists()) wxMkdir(path);
+	wxString filename = folderName + origfile.GetName() + _T(".RECOVER.ass");
 	AssFile::top->Save(filename,false,false);
 
 	// Inform user of crash
@@ -150,8 +157,15 @@ void AegisubApp::OnUnhandledException() {
 // Fatal exception
 void AegisubApp::OnFatalException() {
 	// Attempt to recover file
-	wxFileName orig(AssFile::top->filename);
-	wxString filename = folderName + orig.GetName() + _T(".RECOVER.ass");
+	wxFileName origfile(AssFile::top->filename);
+	wxString path = Options.AsText(_T("Auto recovery path"));
+	if (path.IsEmpty()) path = folderName;
+	wxFileName dstpath(path);
+	if (!dstpath.IsAbsolute()) path = AegisubApp::folderName + path;
+	path += _T("/");
+	dstpath.Assign(path);
+	if (!dstpath.DirExists()) wxMkdir(path);
+	wxString filename = path + origfile.GetName() + _T(".RECOVER.ass");
 	AssFile::top->Save(filename,false,false);
 
 	// Stack walk
diff --git a/core/options.cpp b/core/options.cpp
index 62326a17a..7b8c26fb9 100644
--- a/core/options.cpp
+++ b/core/options.cpp
@@ -238,6 +238,7 @@ void OptionsManager::LoadDefaults() {
 	SetInt(_T("Auto save every seconds"),60);
 	SetText(_T("Auto backup path"),_T("autoback"));
 	SetText(_T("Auto save path"),_T("autosave"));
+	SetText(_T("Auto recovery path"),_T("recovered"));
 	SetInt(_T("Autoload linked files"),2);
 
 	SetText(_T("Text actor separator"),_T(":"));