diff --git a/fs-v1-multipart.go b/fs-v1-multipart.go
index ed165108c..4b39d715b 100644
--- a/fs-v1-multipart.go
+++ b/fs-v1-multipart.go
@@ -72,8 +72,9 @@ func (fs fsObjects) listMultipartUploads(bucket, prefix, keyMarker, uploadIDMark
 		walkResultCh, endWalkCh = fs.listPool.Release(listParams{minioMetaBucket, recursive, multipartMarkerPath, multipartPrefixPath})
 		if walkResultCh == nil {
 			endWalkCh = make(chan struct{})
-			listDir := listDirFactory(fs.isMultipartUpload, fs.storage)
-			walkResultCh = startTreeWalk(minioMetaBucket, multipartPrefixPath, multipartMarkerPath, recursive, listDir, endWalkCh)
+			isLeaf := fs.isMultipartUpload
+			listDir := listDirFactory(isLeaf, fs.storage)
+			walkResultCh = startTreeWalk(minioMetaBucket, multipartPrefixPath, multipartMarkerPath, recursive, listDir, isLeaf, endWalkCh)
 		}
 		for maxUploads > 0 {
 			walkResult, ok := <-walkResultCh
diff --git a/fs-v1.go b/fs-v1.go
index 71e37058b..3ea47f3d2 100644
--- a/fs-v1.go
+++ b/fs-v1.go
@@ -532,10 +532,14 @@ func (fs fsObjects) listObjects(bucket, prefix, marker, delimiter string, maxKey
 	walkResultCh, endWalkCh := fs.listPool.Release(listParams{bucket, recursive, marker, prefix})
 	if walkResultCh == nil {
 		endWalkCh = make(chan struct{})
-		listDir := listDirFactory(func(bucket, object string) bool {
+		isLeaf := func(bucket, object string) bool {
+			// bucket argument is unused as we don't need to StatFile
+			// to figure if it's a file, just need to check that the
+			// object string does not end with "/".
 			return !strings.HasSuffix(object, slashSeparator)
-		}, fs.storage)
-		walkResultCh = startTreeWalk(bucket, prefix, marker, recursive, listDir, endWalkCh)
+		}
+		listDir := listDirFactory(isLeaf, fs.storage)
+		walkResultCh = startTreeWalk(bucket, prefix, marker, recursive, listDir, isLeaf, endWalkCh)
 	}
 	var fileInfos []FileInfo
 	var eof bool
diff --git a/tree-walk.go b/tree-walk.go
index 5762397bd..8c9cc6785 100644
--- a/tree-walk.go
+++ b/tree-walk.go
@@ -37,43 +37,108 @@ type treeWalkResult struct {
 	end   bool
 }
 
+// posix.ListDir returns entries with trailing "/" for directories. At the object layer
+// we need to remove this trailing "/" for objects and retain "/" for prefixes before
+// sorting because the trailing "/" can affect the sorting results for certain cases.
+// Ex. lets say entries = ["a-b/", "a/"] and both are objects.
+//     sorting with out trailing "/" = ["a", "a-b"]
+//     sorting with trailing "/"     = ["a-b/", "a/"]
+// Hence if entries[] does not have a case like the above example then isLeaf() check
+// can be delayed till the entry is pushed into the treeWalkResult channel.
+// delayIsLeafCheck() returns true if isLeaf can be delayed or false if
+// isLeaf should be done in listDir()
+func delayIsLeafCheck(entries []string) bool {
+	for i, entry := range entries {
+		if i == len(entries)-1 {
+			break
+		}
+		// If any byte in the "entry" string is less than '/' then the
+		// next "entry" should not contain '/' at the same same byte position.
+		for j := 0; j < len(entry); j++ {
+			if entry[j] < '/' {
+				if len(entries[i+1]) > j {
+					if entries[i+1][j] == '/' {
+						return false
+					}
+				}
+			}
+		}
+	}
+	return true
+}
+
+// Return entries that have prefix prefixEntry.
+// Note: input entries are expected to be sorted.
+func filterMatchingPrefix(entries []string, prefixEntry string) []string {
+	start := 0
+	end := len(entries)
+	for {
+		if start == end {
+			break
+		}
+		if strings.HasPrefix(entries[start], prefixEntry) {
+			break
+		}
+		start++
+	}
+	for {
+		if start == end {
+			break
+		}
+		if strings.HasPrefix(entries[end-1], prefixEntry) {
+			break
+		}
+		end--
+	}
+	return entries[start:end]
+}
+
 // "listDir" function of type listDirFunc returned by listDirFactory() - explained below.
-type listDirFunc func(bucket, prefixDir, prefixEntry string) (entries []string, err error)
+type listDirFunc func(bucket, prefixDir, prefixEntry string) (entries []string, delayIsLeaf bool, err error)
+
+// A function isLeaf of type isLeafFunc is used to detect if an entry is a leaf entry. There are four scenarios
+// where isLeaf should behave differently:
+// 1. FS backend object listing - isLeaf is true if the entry has a trailing "/"
+// 2. FS backend multipart listing - isLeaf is true if the entry is a directory and contains uploads.json
+// 3. XL backend object listing - isLeaf is true if the entry is a directory and contains xl.json
+// 4. XL backend multipart listing - isLeaf is true if the entry is a directory and contains uploads.json
+type isLeafFunc func(string, string) bool
 
 // Returns function "listDir" of the type listDirFunc.
 // isLeaf - is used by listDir function to check if an entry is a leaf or non-leaf entry.
 // disks - used for doing disk.ListDir(). FS passes single disk argument, XL passes a list of disks.
-func listDirFactory(isLeaf func(string, string) bool, disks ...StorageAPI) listDirFunc {
+func listDirFactory(isLeaf isLeafFunc, disks ...StorageAPI) listDirFunc {
 	// listDir - lists all the entries at a given prefix and given entry in the prefix.
-	// isLeaf is used to detect if an entry is a leaf entry. There are four scenarios where isLeaf
-	// should behave differently:
-	// 1. FS backend object listing - isLeaf is true if the entry has a trailing "/"
-	// 2. FS backend multipart listing - isLeaf is true if the entry is a directory and contains uploads.json
-	// 3. XL backend object listing - isLeaf is true if the entry is a directory and contains xl.json
-	// 4. XL backend multipart listing - isLeaf is true if the entry is a directory and contains uploads.json
-	listDir := func(bucket, prefixDir, prefixEntry string) (entries []string, err error) {
+	listDir := func(bucket, prefixDir, prefixEntry string) (entries []string, delayIsLeaf bool, err error) {
 		for _, disk := range disks {
 			if disk == nil {
 				continue
 			}
 			entries, err = disk.ListDir(bucket, prefixDir)
 			if err == nil {
-				// Skip the entries which do not match the prefixEntry.
+				// Listing needs to be sorted.
+				sort.Strings(entries)
+
+				// Filter entries that have the prefix prefixEntry.
+				entries = filterMatchingPrefix(entries, prefixEntry)
+
+				// Can isLeaf() check be delayed till when it has to be sent down the
+				// treeWalkResult channel?
+				delayIsLeaf = delayIsLeafCheck(entries)
+				if delayIsLeaf {
+					return entries, delayIsLeaf, nil
+				}
+
+				// isLeaf() check has to happen here so that trailing "/" for objects can be removed.
 				for i, entry := range entries {
-					if !strings.HasPrefix(entry, prefixEntry) {
-						entries[i] = ""
-						continue
-					}
 					if isLeaf(bucket, pathJoin(prefixDir, entry)) {
 						entries[i] = strings.TrimSuffix(entry, slashSeparator)
 					}
 				}
+				// Sort again after removing trailing "/" for objects as the previous sort
+				// does not hold good anymore.
 				sort.Strings(entries)
-				// Skip the empty strings
-				for len(entries) > 0 && entries[0] == "" {
-					entries = entries[1:]
-				}
-				return entries, nil
+				return entries, delayIsLeaf, nil
 			}
 			// For any reason disk was deleted or goes offline, continue
 			// and list from other disks if possible.
@@ -83,13 +148,13 @@ func listDirFactory(isLeaf func(string, string) bool, disks ...StorageAPI) listD
 			break
 		}
 		// Return error at the end.
-		return nil, err
+		return nil, false, err
 	}
 	return listDir
 }
 
 // treeWalk walks directory tree recursively pushing treeWalkResult into the channel as and when it encounters files.
-func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bool, listDir listDirFunc, resultCh chan treeWalkResult, endWalkCh chan struct{}, isEnd bool) error {
+func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bool, listDir listDirFunc, isLeaf isLeafFunc, resultCh chan treeWalkResult, endWalkCh chan struct{}, isEnd bool) error {
 	// Example:
 	// if prefixDir="one/two/three/" and marker="four/five.txt" treeWalk is recursively
 	// called with prefixDir="one/two/three/four/" and marker="five.txt"
@@ -104,7 +169,7 @@ func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bo
 			markerBase = markerSplit[1]
 		}
 	}
-	entries, err := listDir(bucket, prefixDir, entryPrefixMatch)
+	entries, delayIsLeaf, err := listDir(bucket, prefixDir, entryPrefixMatch)
 	if err != nil {
 		select {
 		case <-endWalkCh:
@@ -130,6 +195,11 @@ func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bo
 		return nil
 	}
 	for i, entry := range entries {
+		// Decision to do isLeaf check was pushed from listDir() to here.
+		if delayIsLeaf && isLeaf(bucket, pathJoin(prefixDir, entry)) {
+			entry = strings.TrimSuffix(entry, slashSeparator)
+		}
+
 		if i == 0 && markerDir == entry {
 			if !recursive {
 				// Skip as the marker would already be listed in the previous listing.
@@ -156,7 +226,7 @@ func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bo
 			// markIsEnd is passed to this entry's treeWalk() so that treeWalker.end can be marked
 			// true at the end of the treeWalk stream.
 			markIsEnd := i == len(entries)-1 && isEnd
-			if tErr := doTreeWalk(bucket, pathJoin(prefixDir, entry), prefixMatch, markerArg, recursive, listDir, resultCh, endWalkCh, markIsEnd); tErr != nil {
+			if tErr := doTreeWalk(bucket, pathJoin(prefixDir, entry), prefixMatch, markerArg, recursive, listDir, isLeaf, resultCh, endWalkCh, markIsEnd); tErr != nil {
 				return tErr
 			}
 			continue
@@ -175,7 +245,7 @@ func doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker string, recursive bo
 }
 
 // Initiate a new treeWalk in a goroutine.
-func startTreeWalk(bucket, prefix, marker string, recursive bool, listDir listDirFunc, endWalkCh chan struct{}) chan treeWalkResult {
+func startTreeWalk(bucket, prefix, marker string, recursive bool, listDir listDirFunc, isLeaf isLeafFunc, endWalkCh chan struct{}) chan treeWalkResult {
 	// Example 1
 	// If prefix is "one/two/three/" and marker is "one/two/three/four/five.txt"
 	// treeWalk is called with prefixDir="one/two/three/" and marker="four/five.txt"
@@ -197,7 +267,7 @@ func startTreeWalk(bucket, prefix, marker string, recursive bool, listDir listDi
 	marker = strings.TrimPrefix(marker, prefixDir)
 	go func() {
 		isEnd := true // Indication to start walking the tree with end as true.
-		doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker, recursive, listDir, resultCh, endWalkCh, isEnd)
+		doTreeWalk(bucket, prefixDir, entryPrefixMatch, marker, recursive, listDir, isLeaf, resultCh, endWalkCh, isEnd)
 		close(resultCh)
 	}()
 	return resultCh
diff --git a/tree-walk_test.go b/tree-walk_test.go
index 01a38f385..2dfa7bdba 100644
--- a/tree-walk_test.go
+++ b/tree-walk_test.go
@@ -19,6 +19,7 @@ package main
 import (
 	"fmt"
 	"io/ioutil"
+	"reflect"
 	"sort"
 	"strings"
 	"testing"
@@ -28,6 +29,84 @@ import (
 // Fixed volume name that could be used across tests
 const volume = "testvolume"
 
+// Test for delayIsLeafCheck.
+func TestDelayIsLeafCheck(t *testing.T) {
+	testCases := []struct {
+		entries []string
+		delay   bool
+	}{
+		// Test cases where isLeaf check can't be delayed.
+		{
+			[]string{"a-b/", "a/"},
+			false,
+		},
+		{
+			[]string{"a%b/", "a/"},
+			false,
+		},
+		{
+			[]string{"a-b-c", "a-b/"},
+			false,
+		},
+
+		// Test cases where isLeaf check can be delayed.
+		{
+			[]string{"a-b/", "aa/"},
+			true,
+		},
+		{
+			[]string{"a", "a-b"},
+			true,
+		},
+		{
+			[]string{"aaa", "bbb"},
+			true,
+		},
+	}
+	for i, testCase := range testCases {
+		expected := testCase.delay
+		got := delayIsLeafCheck(testCase.entries)
+		if expected != got {
+			t.Errorf("Test %d : Expected %t got %t", i+1, expected, got)
+		}
+	}
+}
+
+// Test for filterMatchingPrefix.
+func TestFilterMatchingPrefix(t *testing.T) {
+	entries := []string{"a", "aab", "ab", "abbbb", "zzz"}
+	testCases := []struct {
+		prefixEntry string
+		result      []string
+	}{
+		{
+			// Empty prefix should match all entries.
+			"",
+			[]string{"a", "aab", "ab", "abbbb", "zzz"},
+		},
+		{
+			"a",
+			[]string{"a", "aab", "ab", "abbbb"},
+		},
+		{
+			"aa",
+			[]string{"aab"},
+		},
+		{
+			// Does not match any of the entries.
+			"c",
+			[]string{},
+		},
+	}
+	for i, testCase := range testCases {
+		expected := testCase.result
+		got := filterMatchingPrefix(entries, testCase.prefixEntry)
+		if !reflect.DeepEqual(expected, got) {
+			t.Errorf("Test %d : expected %v, got %v", i+1, expected, got)
+		}
+	}
+}
+
 // Helper function that creates a volume and files in it.
 func createNamespace(disk StorageAPI, volume string, files []string) error {
 	// Make a volume.
@@ -48,11 +127,11 @@ func createNamespace(disk StorageAPI, volume string, files []string) error {
 
 // Test if tree walker returns entries matching prefix alone are received
 // when a non empty prefix is supplied.
-func testTreeWalkPrefix(t *testing.T, listDir listDirFunc) {
+func testTreeWalkPrefix(t *testing.T, listDir listDirFunc, isLeaf isLeafFunc) {
 	// Start the tree walk go-routine.
 	prefix := "d/"
 	endWalkCh := make(chan struct{})
-	twResultCh := startTreeWalk(volume, prefix, "", true, listDir, endWalkCh)
+	twResultCh := startTreeWalk(volume, prefix, "", true, listDir, isLeaf, endWalkCh)
 
 	// Check if all entries received on the channel match the prefix.
 	for res := range twResultCh {
@@ -63,11 +142,11 @@ func testTreeWalkPrefix(t *testing.T, listDir listDirFunc) {
 }
 
 // Test if entries received on tree walk's channel appear after the supplied marker.
-func testTreeWalkMarker(t *testing.T, listDir listDirFunc) {
+func testTreeWalkMarker(t *testing.T, listDir listDirFunc, isLeaf isLeafFunc) {
 	// Start the tree walk go-routine.
 	prefix := ""
 	endWalkCh := make(chan struct{})
-	twResultCh := startTreeWalk(volume, prefix, "d/g", true, listDir, endWalkCh)
+	twResultCh := startTreeWalk(volume, prefix, "d/g", true, listDir, isLeaf, endWalkCh)
 
 	// Check if only 3 entries, namely d/g/h, i/j/k, lmn are received on the channel.
 	expectedCount := 3
@@ -103,13 +182,14 @@ func TestTreeWalk(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	listDir := listDirFactory(func(volume, prefix string) bool {
+	isLeaf := func(volume, prefix string) bool {
 		return !strings.HasSuffix(prefix, slashSeparator)
-	}, disk)
+	}
+	listDir := listDirFactory(isLeaf, disk)
 	// Simple test for prefix based walk.
-	testTreeWalkPrefix(t, listDir)
+	testTreeWalkPrefix(t, listDir, isLeaf)
 	// Simple test when marker is set.
-	testTreeWalkMarker(t, listDir)
+	testTreeWalkMarker(t, listDir, isLeaf)
 	err = removeAll(fsDir)
 	if err != nil {
 		t.Fatal(err)
@@ -136,9 +216,10 @@ func TestTreeWalkTimeout(t *testing.T) {
 		t.Fatal(err)
 	}
 
-	listDir := listDirFactory(func(volume, prefix string) bool {
+	isLeaf := func(volume, prefix string) bool {
 		return !strings.HasSuffix(prefix, slashSeparator)
-	}, disk)
+	}
+	listDir := listDirFactory(isLeaf, disk)
 
 	// TreeWalk pool with 2 seconds timeout for tree-walk go routines.
 	pool := newTreeWalkPool(2 * time.Second)
@@ -147,7 +228,7 @@ func TestTreeWalkTimeout(t *testing.T) {
 	prefix := ""
 	marker := ""
 	recursive := true
-	resultCh := startTreeWalk(volume, prefix, marker, recursive, listDir, endWalkCh)
+	resultCh := startTreeWalk(volume, prefix, marker, recursive, listDir, isLeaf, endWalkCh)
 
 	params := listParams{
 		bucket:    volume,
@@ -222,7 +303,7 @@ func TestListDir(t *testing.T) {
 	}
 
 	// Should list "file1" from fsDir1.
-	entries, err := listDir(volume, "", "")
+	entries, _, err := listDir(volume, "", "")
 	if err != nil {
 		t.Error(err)
 	}
@@ -240,7 +321,7 @@ func TestListDir(t *testing.T) {
 	}
 
 	// Should list "file2" from fsDir2.
-	entries, err = listDir(volume, "", "")
+	entries, _, err = listDir(volume, "", "")
 	if err != nil {
 		t.Error(err)
 	}
@@ -255,7 +336,7 @@ func TestListDir(t *testing.T) {
 		t.Error(err)
 	}
 	// None of the disks are available, should get errDiskNotFound.
-	entries, err = listDir(volume, "", "")
+	entries, _, err = listDir(volume, "", "")
 	if err != errDiskNotFound {
 		t.Error("expected errDiskNotFound error.")
 	}
@@ -276,10 +357,13 @@ func TestRecursiveTreeWalk(t *testing.T) {
 		t.Errorf("Unable to create StorageAPI: %s", err)
 	}
 
-	// Create listDir function.
-	listDir := listDirFactory(func(volume, prefix string) bool {
+	// Simple isLeaf check, returns true if there is no trailing "/"
+	isLeaf := func(volume, prefix string) bool {
 		return !strings.HasSuffix(prefix, slashSeparator)
-	}, disk1)
+	}
+
+	// Create listDir function.
+	listDir := listDirFactory(isLeaf, disk1)
 
 	// Create the namespace.
 	var files = []string{
@@ -355,7 +439,7 @@ func TestRecursiveTreeWalk(t *testing.T) {
 	for i, testCase := range testCases {
 		for entry := range startTreeWalk(volume,
 			testCase.prefix, testCase.marker, testCase.recursive,
-			listDir, endWalkCh) {
+			listDir, isLeaf, endWalkCh) {
 			if _, found := testCase.expected[entry.entry]; !found {
 				t.Errorf("Test %d: Expected %s, but couldn't find", i+1, entry.entry)
 			}
@@ -380,10 +464,12 @@ func TestSortedness(t *testing.T) {
 		t.Errorf("Unable to create StorageAPI: %s", err)
 	}
 
-	// Create listDir function.
-	listDir := listDirFactory(func(volume, prefix string) bool {
+	// Simple isLeaf check, returns true if there is no trailing "/"
+	isLeaf := func(volume, prefix string) bool {
 		return !strings.HasSuffix(prefix, slashSeparator)
-	}, disk1)
+	}
+	// Create listDir function.
+	listDir := listDirFactory(isLeaf, disk1)
 
 	// Create the namespace.
 	var files = []string{
@@ -425,7 +511,7 @@ func TestSortedness(t *testing.T) {
 		var actualEntries []string
 		for entry := range startTreeWalk(volume,
 			test.prefix, test.marker, test.recursive,
-			listDir, endWalkCh) {
+			listDir, isLeaf, endWalkCh) {
 			actualEntries = append(actualEntries, entry.entry)
 		}
 		if !sort.IsSorted(sort.StringSlice(actualEntries)) {
@@ -453,10 +539,11 @@ func TestTreeWalkIsEnd(t *testing.T) {
 		t.Errorf("Unable to create StorageAPI: %s", err)
 	}
 
-	// Create listDir function.
-	listDir := listDirFactory(func(volume, prefix string) bool {
+	isLeaf := func(volume, prefix string) bool {
 		return !strings.HasSuffix(prefix, slashSeparator)
-	}, disk1)
+	}
+	// Create listDir function.
+	listDir := listDirFactory(isLeaf, disk1)
 
 	// Create the namespace.
 	var files = []string{
@@ -497,7 +584,7 @@ func TestTreeWalkIsEnd(t *testing.T) {
 	}
 	for i, test := range testCases {
 		var entry treeWalkResult
-		for entry = range startTreeWalk(volume, test.prefix, test.marker, test.recursive, listDir, endWalkCh) {
+		for entry = range startTreeWalk(volume, test.prefix, test.marker, test.recursive, listDir, isLeaf, endWalkCh) {
 		}
 		if entry.entry != test.expectedEntry {
 			t.Errorf("Test %d: Expected entry %s, but received %s with the EOF marker", i, test.expectedEntry, entry.entry)
diff --git a/xl-v1-list-objects.go b/xl-v1-list-objects.go
index 96172740e..00f7e2836 100644
--- a/xl-v1-list-objects.go
+++ b/xl-v1-list-objects.go
@@ -29,8 +29,9 @@ func (xl xlObjects) listObjects(bucket, prefix, marker, delimiter string, maxKey
 	walkResultCh, endWalkCh := xl.listPool.Release(listParams{bucket, recursive, marker, prefix})
 	if walkResultCh == nil {
 		endWalkCh = make(chan struct{})
-		listDir := listDirFactory(xl.isObject, xl.getLoadBalancedQuorumDisks()...)
-		walkResultCh = startTreeWalk(bucket, prefix, marker, recursive, listDir, endWalkCh)
+		isLeaf := xl.isObject
+		listDir := listDirFactory(isLeaf, xl.getLoadBalancedQuorumDisks()...)
+		walkResultCh = startTreeWalk(bucket, prefix, marker, recursive, listDir, isLeaf, endWalkCh)
 	}
 
 	var objInfos []ObjectInfo
diff --git a/xl-v1-multipart.go b/xl-v1-multipart.go
index 616b8d25c..0039129d9 100644
--- a/xl-v1-multipart.go
+++ b/xl-v1-multipart.go
@@ -90,8 +90,9 @@ func (xl xlObjects) listMultipartUploads(bucket, prefix, keyMarker, uploadIDMark
 		walkerCh, walkerDoneCh = xl.listPool.Release(listParams{minioMetaBucket, recursive, multipartMarkerPath, multipartPrefixPath})
 		if walkerCh == nil {
 			walkerDoneCh = make(chan struct{})
-			listDir := listDirFactory(xl.isMultipartUpload, xl.getLoadBalancedQuorumDisks()...)
-			walkerCh = startTreeWalk(minioMetaBucket, multipartPrefixPath, multipartMarkerPath, recursive, listDir, walkerDoneCh)
+			isLeaf := xl.isMultipartUpload
+			listDir := listDirFactory(isLeaf, xl.getLoadBalancedQuorumDisks()...)
+			walkerCh = startTreeWalk(minioMetaBucket, multipartPrefixPath, multipartMarkerPath, recursive, listDir, isLeaf, walkerDoneCh)
 		}
 		// Collect uploads until we have reached maxUploads count to 0.
 		for maxUploads > 0 {