diff --git a/src/Umbraco.Core/Services/MediaService.cs b/src/Umbraco.Core/Services/MediaService.cs
index fefb70d4cb..7bc7524294 100644
--- a/src/Umbraco.Core/Services/MediaService.cs
+++ b/src/Umbraco.Core/Services/MediaService.cs
@@ -492,17 +492,22 @@ namespace Umbraco.Core.Services
 		        if (Moving.IsRaisedEventCancelled(new MoveEventArgs<IMedia>(media, parentId), this))
 		            return;
 
-		        media.ParentId = parentId;
+                media.ParentId = parentId;
+                if (media.Trashed)
+                {
+                    media.ChangeTrashedState(false, parentId);
+                }
 		        Save(media, userId);
 
-		        //Ensure that Path and Level is updated on children
+		        //Ensure that relevant properties are updated on children
 		        var children = GetChildren(media.Id);
 		        if (children.Any())
 		        {
 		            var parentPath = media.Path;
 		            var parentLevel = media.Level;
-		            var updatedDescendents = UpdatePathAndLevelOnChildren(children, parentPath, parentLevel);
-		            Save(updatedDescendents, userId);
+		            var parentTrashed = media.Trashed;
+		            var updatedDescendants = UpdatePropertiesOnChildren(children, parentPath, parentLevel, parentTrashed);
+		            Save(updatedDescendants, userId);
 		        }
 
 		        Moved.RaiseEvent(new MoveEventArgs<IMedia>(media, false, parentId), this);
@@ -925,25 +930,31 @@ namespace Umbraco.Core.Services
 
         /// <summary>
         /// Updates the Path and Level on a collection of <see cref="IMedia"/> objects
-        /// based on the Parent's Path and Level.
+        /// based on the Parent's Path and Level. Also change the trashed state if relevant.
         /// </summary>
         /// <param name="children">Collection of <see cref="IMedia"/> objects to update</param>
         /// <param name="parentPath">Path of the Parent media</param>
         /// <param name="parentLevel">Level of the Parent media</param>
+        /// <param name="parentTrashed">Indicates whether the Parent is trashed or not</param>
         /// <returns>Collection of updated <see cref="IMedia"/> objects</returns>
-        private IEnumerable<IMedia> UpdatePathAndLevelOnChildren(IEnumerable<IMedia> children, string parentPath, int parentLevel)
+        private IEnumerable<IMedia> UpdatePropertiesOnChildren(IEnumerable<IMedia> children, string parentPath, int parentLevel, bool parentTrashed)
         {
             var list = new List<IMedia>();
             foreach (var child in children)
             {
                 child.Path = string.Concat(parentPath, ",", child.Id);
                 child.Level = parentLevel + 1;
+                if (parentTrashed != child.Trashed)
+                {
+                    child.ChangeTrashedState(parentTrashed, child.ParentId);
+                }
+                
                 list.Add(child);
 
                 var grandkids = GetChildren(child.Id);
                 if (grandkids.Any())
                 {
-                    list.AddRange(UpdatePathAndLevelOnChildren(grandkids, child.Path, child.Level));
+                    list.AddRange(UpdatePropertiesOnChildren(grandkids, child.Path, child.Level, child.Trashed));
                 }
             }
             return list;
diff --git a/src/Umbraco.Tests/Services/BaseServiceTest.cs b/src/Umbraco.Tests/Services/BaseServiceTest.cs
index cd4318b5a6..23487eb582 100644
--- a/src/Umbraco.Tests/Services/BaseServiceTest.cs
+++ b/src/Umbraco.Tests/Services/BaseServiceTest.cs
@@ -51,6 +51,30 @@ namespace Umbraco.Tests.Services
 			Content trashed = MockedContent.CreateSimpleContent(contentType, "Text Page Deleted", -20);
 			trashed.Trashed = true;
 			ServiceContext.ContentService.Save(trashed, 0);
+
+            //Create and Save folder-Media -> 1050
+            var folderMediaType = ServiceContext.ContentTypeService.GetMediaType(1031);
+            var folder = MockedMedia.CreateMediaFolder(folderMediaType, -1);
+            ServiceContext.MediaService.Save(folder);
+
+            //Create and Save folder-Media -> 1051
+            var folder2 = MockedMedia.CreateMediaFolder(folderMediaType, -1);
+            ServiceContext.MediaService.Save(folder2);
+
+            //Create and Save image-Media  -> 1052
+            var imageMediaType = ServiceContext.ContentTypeService.GetMediaType(1032);
+            var image = (Media)MockedMedia.CreateMediaImage(imageMediaType, 1050);
+            ServiceContext.MediaService.Save(image);
+
+            //Create and Save folder-Media that is trashed -> 1053
+            var folderTrashed = (Media)MockedMedia.CreateMediaFolder(folderMediaType, -21);
+            folderTrashed.Trashed = true;
+            ServiceContext.MediaService.Save(folderTrashed);
+
+            //Create and Save image-Media child of folderTrashed -> 1054            
+            var imageTrashed = (Media)MockedMedia.CreateMediaImage(imageMediaType, folderTrashed.Id);
+		    imageTrashed.Trashed = true;
+            ServiceContext.MediaService.Save(imageTrashed);
 		}
 	}
 }
\ No newline at end of file
diff --git a/src/Umbraco.Tests/Services/MediaServiceTests.cs b/src/Umbraco.Tests/Services/MediaServiceTests.cs
new file mode 100644
index 0000000000..658bff9de9
--- /dev/null
+++ b/src/Umbraco.Tests/Services/MediaServiceTests.cs
@@ -0,0 +1,72 @@
+using System;
+using System.Collections.Generic;
+using System.Linq;
+using System.Text;
+using NUnit.Framework;
+
+namespace Umbraco.Tests.Services
+{
+    [TestFixture, RequiresSTA]
+    public class MediaServiceTests : BaseServiceTest
+    {
+        [SetUp]
+        public override void Initialize()
+        {
+            base.Initialize();
+        }
+
+        [TearDown]
+        public override void TearDown()
+        {
+            base.TearDown();
+        }
+
+        [Test]
+        public void Can_Move_Media()
+        {
+            // Arrange
+            var mediaService = ServiceContext.MediaService;
+            var media = mediaService.GetById(1052);
+
+            // Act
+            mediaService.Move(media, 1051);
+
+            // Assert
+            Assert.That(media.ParentId, Is.EqualTo(1051));
+            Assert.That(media.Trashed, Is.False);
+        }
+
+        [Test]
+        public void Can_Move_Media_To_RecycleBin()
+        {
+            // Arrange
+            var mediaService = ServiceContext.MediaService;
+            var media = mediaService.GetById(1050);
+
+            // Act
+            mediaService.MoveToRecycleBin(media);
+
+            // Assert
+            Assert.That(media.ParentId, Is.EqualTo(-21));
+            Assert.That(media.Trashed, Is.True);
+        }
+
+        [Test]
+        public void Can_Move_Media_From_RecycleBin()
+        {
+            // Arrange
+            var mediaService = ServiceContext.MediaService;
+            var media = mediaService.GetById(1053);
+
+            // Act - moving out of recycle bin
+            mediaService.Move(media, 1050);
+            var mediaChild = mediaService.GetById(1054);
+
+            // Assert
+            Assert.That(media.ParentId, Is.EqualTo(1050));
+            Assert.That(media.Trashed, Is.False);
+            Assert.That(mediaChild.ParentId, Is.EqualTo(1053));
+            Assert.That(mediaChild.Trashed, Is.False);
+        }
+    }
+}
diff --git a/src/Umbraco.Tests/Umbraco.Tests.csproj b/src/Umbraco.Tests/Umbraco.Tests.csproj
index c51807a7af..f5f434cc73 100644
--- a/src/Umbraco.Tests/Umbraco.Tests.csproj
+++ b/src/Umbraco.Tests/Umbraco.Tests.csproj
@@ -216,6 +216,7 @@
     <Compile Include="PublishedContent\StronglyTypedModels\UmbracoTemplatePage`T.cs" />
     <Compile Include="Services\LocalizationServiceTests.cs" />
     <Compile Include="Services\MemberServiceTests.cs" />
+    <Compile Include="Services\MediaServiceTests.cs" />
     <Compile Include="Services\MemberTypeServiceTests.cs" />
     <Compile Include="Services\PackagingServiceTests.cs" />
     <Compile Include="Services\PerformanceTests.cs" />