diff --git a/nested_projects/app/models/project.rb b/nested_projects/app/models/project.rb
index 84c6c38ff..6131b3272 100644
--- a/nested_projects/app/models/project.rb
+++ b/nested_projects/app/models/project.rb
@@ -43,7 +43,7 @@ class Project < ActiveRecord::Base
                           :join_table => "#{table_name_prefix}custom_fields_projects#{table_name_suffix}",
                           :association_foreign_key => 'custom_field_id'
                           
-  acts_as_nested_set :dependent => :nullify
+  acts_as_nested_set :order => 'name', :dependent => :nullify
   acts_as_attachable :view_permission => :view_files,
                      :delete_permission => :manage_files
 
diff --git a/nested_projects/test/unit/project_test.rb b/nested_projects/test/unit/project_test.rb
index 6a29e96b1..0f56330cf 100644
--- a/nested_projects/test/unit/project_test.rb
+++ b/nested_projects/test/unit/project_test.rb
@@ -118,6 +118,22 @@ class ProjectTest < Test::Unit::TestCase
     assert !(sub.set_parent!(Project.find(3)))
   end
   
+  def test_rebuild_should_sort_children_alphabetically
+    ProjectCustomField.delete_all
+    parent = Project.create!(:name => 'Parent', :identifier => 'parent')
+    Project.create!(:name => 'Project C', :identifier => 'project-c').move_to_child_of(parent)
+    Project.create!(:name => 'Project B', :identifier => 'project-b').move_to_child_of(parent)
+    Project.create!(:name => 'Project D', :identifier => 'project-d').move_to_child_of(parent)
+    Project.create!(:name => 'Project A', :identifier => 'project-a').move_to_child_of(parent)
+    
+    Project.update_all("lft = NULL, rgt = NULL")
+    Project.rebuild!
+    
+    parent.reload
+    assert_equal 4, parent.children.size
+    assert_equal parent.children.sort_by(&:name), parent.children
+  end
+  
   def test_rolled_up_trackers
     parent = Project.find(1)
     parent.trackers = Tracker.find([1,2])
diff --git a/nested_projects/vendor/plugins/awesome_nested_set/lib/awesome_nested_set.rb b/nested_projects/vendor/plugins/awesome_nested_set/lib/awesome_nested_set.rb
index 3e10891b6..fb67341b6 100644
--- a/nested_projects/vendor/plugins/awesome_nested_set/lib/awesome_nested_set.rb
+++ b/nested_projects/vendor/plugins/awesome_nested_set/lib/awesome_nested_set.rb
@@ -56,6 +56,7 @@ module CollectiveIdea #:nodoc:
             :parent_column => 'parent_id',
             :left_column => 'lft',
             :right_column => 'rgt',
+            :order => 'id',
             :dependent => :delete_all, # or :destroy
           }.merge(options)
           
@@ -179,14 +180,14 @@ module CollectiveIdea #:nodoc:
             # set left
             node[left_column_name] = indices[scope.call(node)] += 1
             # find
-            find(:all, :conditions => ["#{quoted_parent_column_name} = ? #{scope.call(node)}", node], :order => "#{quoted_left_column_name}, #{quoted_right_column_name}, id").each{|n| set_left_and_rights.call(n) }
+            find(:all, :conditions => ["#{quoted_parent_column_name} = ? #{scope.call(node)}", node], :order => "#{quoted_left_column_name}, #{quoted_right_column_name}, #{acts_as_nested_set_options[:order]}").each{|n| set_left_and_rights.call(n) }
             # set right
             node[right_column_name] = indices[scope.call(node)] += 1    
             node.save!    
           end
                               
           # Find root node(s)
-          root_nodes = find(:all, :conditions => "#{quoted_parent_column_name} IS NULL", :order => "#{quoted_left_column_name}, #{quoted_right_column_name}, id").each do |root_node|
+          root_nodes = find(:all, :conditions => "#{quoted_parent_column_name} IS NULL", :order => "#{quoted_left_column_name}, #{quoted_right_column_name}, #{acts_as_nested_set_options[:order]}").each do |root_node|
             # setup index for this scope
             indices[scope.call(root_node)] ||= 0
             set_left_and_rights.call(root_node)