diff --git a/source/java/org/alfresco/repo/node/getchildren/GetChildrenCannedQuery.java b/source/java/org/alfresco/repo/node/getchildren/GetChildrenCannedQuery.java
index 030f2a5a09..e5bdfcad94 100644
--- a/source/java/org/alfresco/repo/node/getchildren/GetChildrenCannedQuery.java
+++ b/source/java/org/alfresco/repo/node/getchildren/GetChildrenCannedQuery.java
@@ -20,6 +20,8 @@ package org.alfresco.repo.node.getchildren;
 
 import java.io.Serializable;
 import java.text.Collator;
+import java.text.ParseException;
+import java.text.RuleBasedCollator;
 import java.util.ArrayList;
 import java.util.Collections;
 import java.util.Comparator;
@@ -371,7 +373,8 @@ public class GetChildrenCannedQuery extends AbstractCannedQueryPermissions<NodeR
         public PropComparatorAsc(List<Pair<QName, SortOrder>> sortProps)
         {
             this.sortProps = sortProps;
-            this.collator = Collator.getInstance(I18NUtil.getContentLocale()); 
+            // try to overrider collator comparison rules
+            this.collator = updateCollatorRules(Collator.getInstance(I18NUtil.getContentLocale())); 
         }
         
         public int compare(FilterSortNode n1, FilterSortNode n2)
@@ -449,6 +452,32 @@ public class GetChildrenCannedQuery extends AbstractCannedQueryPermissions<NodeR
         }
     }
     
+    // update RuleBasedCollator rules to change order of characters during comparison
+    // MNT-10169 fix
+    private Collator updateCollatorRules(Collator collator)
+    {
+        if (collator instanceof RuleBasedCollator)
+        {
+            try
+            {
+                // get current collator rules
+                String collatorRules = ((RuleBasedCollator)collator).getRules();
+                // we shoudn't ignore space character in character comparison - put it before u0021 character
+                String newCollatorRules = collatorRules.replaceAll("<'\u0021'", "<'\u0020'<'\u0021'");
+                // create new collator with overridden rules
+                return new RuleBasedCollator(newCollatorRules);
+            }
+            catch(ParseException e)
+            {
+                if (logger.isWarnEnabled())
+                {
+                    logger.warn("Error on overwriting RuleBasedCollator rules " + e.getMessage());
+                }
+            }
+        }
+        return collator;
+    }
+    
     private boolean includeAspects(NodeRef nodeRef, Set<QName> inclusiveAspects, Set<QName> exclusiveAspects)
     {
         if (inclusiveAspects == null && exclusiveAspects == null)
diff --git a/source/test-java/org/alfresco/repo/model/filefolder/FileFolderServiceImplTest.java b/source/test-java/org/alfresco/repo/model/filefolder/FileFolderServiceImplTest.java
index 9d26529b3b..f025cc9840 100644
--- a/source/test-java/org/alfresco/repo/model/filefolder/FileFolderServiceImplTest.java
+++ b/source/test-java/org/alfresco/repo/model/filefolder/FileFolderServiceImplTest.java
@@ -1507,6 +1507,43 @@ public class FileFolderServiceImplTest extends TestCase
         checkPages(nodeRef1, pageSize, totalItems, true, 4);
     }
     
+    public void testListNotIgnoreSpaces()
+    {
+        String [] foldersToTest = new String[] { 
+            "A B", 
+            "AA", 
+            "AC" 
+        };
+        
+        NodeRef testFolder = fileFolderService.create(workingRootNodeRef, "" + System.currentTimeMillis(), ContentModel.TYPE_FOLDER).getNodeRef();
+        
+        // create provided nodes
+        for (String folder : foldersToTest)
+        {
+            fileFolderService.create(testFolder, folder, ContentModel.TYPE_FOLDER).getNodeRef();
+        }
+        
+        PagingRequest pagingRequest = new PagingRequest(100, null);
+        // ensure sort by property name
+        List<Pair<QName, Boolean>> sortProps = new ArrayList<Pair<QName, Boolean>>(1);
+        sortProps.add(new Pair<QName, Boolean>(ContentModel.PROP_NAME, true));
+        // list nodes
+        PagingResults<FileInfo> pagingResults = fileFolderService.list(testFolder, true, true, null, null, sortProps, pagingRequest);
+        List<FileInfo> files = pagingResults.getPage();
+         
+        assertEquals(files.size(), foldersToTest.length);
+        
+        for (int index = 0; index < files.size(); index++)
+        {
+            // ensure node order is expected
+            String folderName = files.get(index).getName();
+            String excpectedFolderName = foldersToTest[index];
+            assertEquals(folderName, excpectedFolderName);
+        }
+        
+        System.out.println(files);
+    }
+    
     private void checkPages(NodeRef parentRef, int pageSize, int totalItems, boolean hideCheckedOut, int checkedOutChildIdx)
     {
         Set<QName> ignoreQNameTypes = null;