Index: Core/Common/src/Core.Common.Controls.Swf/TreeViewControls/TreeView.cs
===================================================================
diff -u -rf43e90a16e94b36691e0ebb8e9ffa5989678b093 -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Common/src/Core.Common.Controls.Swf/TreeViewControls/TreeView.cs	(.../TreeView.cs)	(revision f43e90a16e94b36691e0ebb8e9ffa5989678b093)
+++ Core/Common/src/Core.Common.Controls.Swf/TreeViewControls/TreeView.cs	(.../TreeView.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -292,7 +292,7 @@
             }
         }
 
-        public void DeleteNodeData()
+        public void TryDeleteSelectedNodeData()
         {
             if (!SelectedNodeCanDelete())
             {
@@ -306,6 +306,11 @@
                 return;
             }
 
+            DeleteSelectedNodeData();
+        }
+
+        private void DeleteSelectedNodeData()
+        {
             var presenter = GetTreeViewNodePresenter(SelectedNode.Tag, SelectedNode);
             presenter.RemoveNodeData(SelectedNode.Parent.Tag, SelectedNode.Tag);
             SelectedNode = SelectedNode ?? Nodes.FirstOrDefault();
@@ -319,7 +324,6 @@
             }
 
             BeginUpdate();
-
             try
             {
                 var selectedNodePath = SelectedNode == null ? string.Empty : SelectedNode.FullPath;
@@ -542,7 +546,7 @@
                 case Keys.Delete:
                     if (OnProcessCmdKey == null && SelectedNode != null && SelectedNode.Tag != null)
                     {
-                        DeleteNodeData();
+                        TryDeleteSelectedNodeData();
                         return true;
                     }
                     break;
Index: Core/Common/src/Core.Common.Controls/ITreeView.cs
===================================================================
diff -u -r2a90c0c1be6114f72af65c42f0a6f334b30e4755 -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Common/src/Core.Common.Controls/ITreeView.cs	(.../ITreeView.cs)	(revision 2a90c0c1be6114f72af65c42f0a6f334b30e4755)
+++ Core/Common/src/Core.Common.Controls/ITreeView.cs	(.../ITreeView.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -131,6 +131,6 @@
         /// </summary>
         void StartLabelEdit();
 
-        void DeleteNodeData();
+        void TryDeleteSelectedNodeData();
     }
 }
\ No newline at end of file
Index: Core/Common/test/Core.Common.Base.Tests/Controls/Swf/TreeViewControls/TreeViewTest.cs
===================================================================
diff -u -r6a3a7c7e3442a1c99598c8f0fe7bd95062bc8845 -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Common/test/Core.Common.Base.Tests/Controls/Swf/TreeViewControls/TreeViewTest.cs	(.../TreeViewTest.cs)	(revision 6a3a7c7e3442a1c99598c8f0fe7bd95062bc8845)
+++ Core/Common/test/Core.Common.Base.Tests/Controls/Swf/TreeViewControls/TreeViewTest.cs	(.../TreeViewTest.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -8,6 +8,7 @@
 using Core.Common.Controls;
 using Core.Common.Controls.Swf.TreeViewControls;
 using Core.Common.TestUtils;
+using Core.Common.Utils.Reflection;
 using NUnit.Framework;
 using Rhino.Mocks;
 using SharpTestsEx;
@@ -310,7 +311,45 @@
             treeView.Nodes[0].Nodes[0].IsExpanded.Should("node remains expanded").Be.True();
         }
 
+        /// <summary>
+        /// If node deleted then selection should go to it's parent. In case, by some reason, there is no node selected after all selection should go to the very first node.
+        /// </summary>
         [Test]
+        public void DeletedNodeMovesSelectionToItsParentNode()
+        {
+            var treeView = new TreeView
+            {
+                NodePresenters =
+                {
+                    new ParentNodePresenter(), // DynamicParentNodePresenter(),
+                    new ChildNodePresenter()
+                }
+            };
+
+            var parent = new Parent() { Name = "Parent"};
+            var child = new Child() { Name = "Child" };
+            var grandchild = new Child() { Name = "GrandChild" };
+            parent.Children.Add(child);
+            child.Children.Add(grandchild);
+
+            treeView.Data = parent;
+            
+            WindowsFormsTestHelper.Show(treeView); // show it to make sure that expand / refresh node really loads nodes.
+
+            treeView.ExpandAll();
+            treeView.Refresh();
+
+            treeView.SelectedNode = treeView.GetNodeByTag(grandchild);
+
+            TypeUtils.CallPrivateMethod(treeView, "DeleteSelectedNodeData");
+
+            treeView.ExpandAll();
+            treeView.Refresh();
+
+            Assert.AreEqual(treeView.SelectedNode, treeView.GetNodeByTag(child));
+        }
+
+        [Test]
         public void TreeViewUpdateOnManyPropertyChangesShouldBeFast()
         {
             var parent = new Child
Index: Core/Common/test/Core.Common.Base.Tests/TestObjects/Child.cs
===================================================================
diff -u -r3debb2835679b29531ce363c17d5fde650cbdca3 -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Common/test/Core.Common.Base.Tests/TestObjects/Child.cs	(.../Child.cs)	(revision 3debb2835679b29531ce363c17d5fde650cbdca3)
+++ Core/Common/test/Core.Common.Base.Tests/TestObjects/Child.cs	(.../Child.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -5,15 +5,38 @@
 namespace Core.Common.Base.Tests.TestObjects
 {
     [Entity]
-    public class Child
+    public class Child : IObservable
     {
+        private readonly IList<IObserver> observers = new List<IObserver>();
+
         public Child()
         {
             Children = new EventedList<Child>();
         }
 
         public string Name { get; set; }
-
         public IList<Child> Children { get; set; }
+
+        #region IObservable
+
+        public void Attach(IObserver observer)
+        {
+            observers.Add(observer);
+        }
+
+        public void Detach(IObserver observer)
+        {
+            observers.Remove(observer);
+        }
+
+        public void NotifyObservers()
+        {
+            foreach (var observer in observers)
+            {
+                observer.UpdateObserver();
+            }
+        }
+
+        #endregion
     }
 }
\ No newline at end of file
Index: Core/Common/test/Core.Common.Base.Tests/TestObjects/ChildNodePresenter.cs
===================================================================
diff -u -r3debb2835679b29531ce363c17d5fde650cbdca3 -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Common/test/Core.Common.Base.Tests/TestObjects/ChildNodePresenter.cs	(.../ChildNodePresenter.cs)	(revision 3debb2835679b29531ce363c17d5fde650cbdca3)
+++ Core/Common/test/Core.Common.Base.Tests/TestObjects/ChildNodePresenter.cs	(.../ChildNodePresenter.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -9,6 +9,35 @@
     {
         public event EventHandler AfterUpdate;
 
+        /// <summary>
+        /// Specifies if node can be deleted by user
+        /// </summary>
+        protected override bool CanRemove(Child nodeData)
+        {
+            return true;
+        }
+
+        protected override bool RemoveNodeData(object parentNodeData, Child nodeData)
+        {
+            if (parentNodeData is Parent)
+            {
+                ((Parent)parentNodeData).Children.Remove(nodeData);
+                ((Parent)parentNodeData).NotifyObservers();
+            }
+            else
+            {
+                if (parentNodeData is Child)
+                {
+                    ((Child)parentNodeData).Children.Remove(nodeData);
+                    ((Child)parentNodeData).NotifyObservers();
+                }
+            }
+
+            
+
+            return true;
+        }
+
         public override void UpdateNode(ITreeNode parentNode, ITreeNode node, Child nodeData)
         {
             node.Text = nodeData.Name;
Index: Core/Plugins/src/Core.Plugins.ProjectExplorer/ProjectTreeView.cs
===================================================================
diff -u -rce485d2ea1e537a2d9be33d46a282e5bfa2abdcc -r113fd0fac19ed2f327ae9faa016f25660785b5ce
--- Core/Plugins/src/Core.Plugins.ProjectExplorer/ProjectTreeView.cs	(.../ProjectTreeView.cs)	(revision ce485d2ea1e537a2d9be33d46a282e5bfa2abdcc)
+++ Core/Plugins/src/Core.Plugins.ProjectExplorer/ProjectTreeView.cs	(.../ProjectTreeView.cs)	(revision 113fd0fac19ed2f327ae9faa016f25660785b5ce)
@@ -216,7 +216,7 @@
             }
             if (keyData == Keys.Delete)
             {
-                treeView.DeleteNodeData();
+                treeView.TryDeleteSelectedNodeData();
 
                 return true;
             }
@@ -270,7 +270,7 @@
         /// <param name="e"></param>
         private void deleteMenuItemClick(object sender, EventArgs e)
         {
-            treeView.DeleteNodeData();
+            treeView.TryDeleteSelectedNodeData();
         }
 
         private void TreeViewDoubleClick(object sender, EventArgs e)