diff --git a/src/plugins/cmakeprojectmanager/fileapidataextractor.cpp b/src/plugins/cmakeprojectmanager/fileapidataextractor.cpp
index e9f6d4351d4..ea156be8a11 100644
--- a/src/plugins/cmakeprojectmanager/fileapidataextractor.cpp
+++ b/src/plugins/cmakeprojectmanager/fileapidataextractor.cpp
@@ -654,7 +654,6 @@ static void addCompileGroups(ProjectNode *targetRoot,
                              const FilePath &buildDirectory,
                              const TargetDetails &td)
 {
-    const bool showSourceFolders = settings().showSourceSubFolders();
     const bool inSourceBuild = (sourceDirectory == buildDirectory);
 
     QSet<FilePath> alreadyListed;
@@ -685,6 +684,9 @@ static void addCompileGroups(ProjectNode *targetRoot,
         if (isPchFile(buildDirectory, sourcePath) || isUnityFile(buildDirectory, sourcePath))
             node->setIsGenerated(true);
 
+        const bool showSourceFolders = settings().showSourceSubFolders()
+                                       && sourcesOrHeadersFolder(td.sourceGroups[si.sourceGroup]);
+
         // Where does the file node need to go?
         if (showSourceFolders && sourcePath.isChildOf(buildDirectory) && !inSourceBuild) {
             buildFileNodes.emplace_back(std::move(node));
@@ -696,6 +698,9 @@ static void addCompileGroups(ProjectNode *targetRoot,
     }
 
     for (size_t i = 0; i < sourceGroupFileNodes.size(); ++i) {
+        const bool showSourceFolders = settings().showSourceSubFolders()
+                                       && sourcesOrHeadersFolder(td.sourceGroups[i]);
+
         std::vector<std::unique_ptr<FileNode>> &current = sourceGroupFileNodes[i];
         FolderNode *insertNode = td.sourceGroups[i] == "TREE"
                                      ? targetRoot
diff --git a/src/plugins/cmakeprojectmanager/projecttreehelper.cpp b/src/plugins/cmakeprojectmanager/projecttreehelper.cpp
index 7987fdb0c56..d23f6a4f972 100644
--- a/src/plugins/cmakeprojectmanager/projecttreehelper.cpp
+++ b/src/plugins/cmakeprojectmanager/projecttreehelper.cpp
@@ -18,6 +18,11 @@ using namespace ProjectExplorer;
 
 namespace CMakeProjectManager::Internal {
 
+bool sourcesOrHeadersFolder(const QString &displayName)
+{
+    return displayName == "Source Files" || displayName == "Header Files";
+}
+
 std::unique_ptr<FolderNode> createCMakeVFolder(const Utils::FilePath &basePath,
                                                int priority,
                                                const QString &displayName)
@@ -25,8 +30,7 @@ std::unique_ptr<FolderNode> createCMakeVFolder(const Utils::FilePath &basePath,
     auto newFolder = std::make_unique<VirtualFolderNode>(basePath);
     newFolder->setPriority(priority);
     newFolder->setDisplayName(displayName);
-    newFolder->setIsSourcesOrHeaders(displayName == "Source Files"
-                                  || displayName == "Header Files");
+    newFolder->setIsSourcesOrHeaders(sourcesOrHeadersFolder(displayName));
     return newFolder;
 }
 
diff --git a/src/plugins/cmakeprojectmanager/projecttreehelper.h b/src/plugins/cmakeprojectmanager/projecttreehelper.h
index 5a7ffaa8b25..258e0a63231 100644
--- a/src/plugins/cmakeprojectmanager/projecttreehelper.h
+++ b/src/plugins/cmakeprojectmanager/projecttreehelper.h
@@ -11,6 +11,8 @@
 
 namespace CMakeProjectManager::Internal {
 
+bool sourcesOrHeadersFolder(const QString &displayName);
+
 std::unique_ptr<ProjectExplorer::FolderNode> createCMakeVFolder(const Utils::FilePath &basePath,
                                                                 int priority,
                                                                 const QString &displayName);