diff --git a/app/controllers/application_controller.rb b/app/controllers/application_controller.rb
index 20055838..80bca004 100644
--- a/app/controllers/application_controller.rb
+++ b/app/controllers/application_controller.rb
@@ -75,7 +75,9 @@ class ApplicationController < ActionController::Base
     if todos_parent.nil?
       count = 0
     elsif (todos_parent.is_a?(Project) && todos_parent.hidden?)
-      count = @project_project_hidden_todo_counts[todos_parent.id]
+      count = @project_hidden_todo_counts[todos_parent.id]
+    elsif (todos_parent.is_a?(Context) && todos_parent.hidden?)
+      count = @context_hidden_todo_counts[todos_parent.id]
     else
       count = eval "@#{todos_parent.class.to_s.downcase}_not_done_counts[#{todos_parent.id}]"
     end
@@ -200,7 +202,10 @@ class ApplicationController < ActionController::Base
 
     init_not_done_counts
     if prefs.show_hidden_projects_in_sidebar
-      init_project_hidden_todo_counts(['project'])
+      init_hidden_todo_counts(['project'])
+    end
+    if prefs.show_hidden_contexts_in_sidebar
+      init_hidden_todo_counts(['context'])
     end
   end
 
@@ -211,9 +216,9 @@ class ApplicationController < ActionController::Base
     end
   end
 
-  def init_project_hidden_todo_counts(parents = ['project','context'])
+  def init_hidden_todo_counts(parents = ['project', 'context'])
     parents.each do |parent|
-      eval("@#{parent}_project_hidden_todo_counts ||= current_user.todos.active_or_hidden.count_by_group('#{parent}_id')")
+      eval("@#{parent}_hidden_todo_counts ||= current_user.todos.active_or_hidden.count_by_group('#{parent}_id')")
     end
   end
 
diff --git a/app/controllers/contexts_controller.rb b/app/controllers/contexts_controller.rb
index 306f686a..4e2e4448 100644
--- a/app/controllers/contexts_controller.rb
+++ b/app/controllers/contexts_controller.rb
@@ -12,7 +12,10 @@ class ContextsController < ApplicationController
     @active_contexts = current_user.contexts.active
     @hidden_contexts = current_user.contexts.hidden
     @closed_contexts = current_user.contexts.closed
-    init_not_done_counts(['context']) unless request.format == :autocomplete
+    unless request.format == :autocomplete
+      init_not_done_counts(['context'])
+      init_hidden_todo_counts(['context'])
+    end
 
     respond_to do |format|
       format.html &render_contexts_html
@@ -37,7 +40,7 @@ class ContextsController < ApplicationController
     unless @context.nil?
       @max_completed = current_user.prefs.show_number_completed
       @done = @context.todos.completed.limit(@max_completed).reorder("todos.completed_at DESC, todos.created_at DESC").includes(Todo::DEFAULT_INCLUDES)
-      @not_done_todos = @context.todos.active.reorder("todos.due IS NULL, todos.due ASC, todos.created_at ASC").includes(Todo::DEFAULT_INCLUDES)
+      @not_done_todos = @context.todos.active_or_hidden.not_project_hidden.reorder('todos.due IS NULL, todos.due ASC, todos.created_at ASC').includes(Todo::DEFAULT_INCLUDES)
       @todos_without_project = @not_done_todos.select{|t| t.project.nil?}
 
       @deferred_todos = @context.todos.deferred.includes(Todo::DEFAULT_INCLUDES)
@@ -77,6 +80,7 @@ class ContextsController < ApplicationController
       format.js do
         @down_count = current_user.contexts.size
         init_not_done_counts
+        init_hidden_todo_counts(['context'])
       end
       format.xml do
         if @context.new_record?
diff --git a/app/controllers/projects_controller.rb b/app/controllers/projects_controller.rb
index 1e74c331..f2e4728d 100644
--- a/app/controllers/projects_controller.rb
+++ b/app/controllers/projects_controller.rb
@@ -14,7 +14,7 @@ class ProjectsController < ApplicationController
     else
       @contexts = current_user.contexts
       init_not_done_counts(['project'])
-      init_project_hidden_todo_counts(['project'])
+      init_hidden_todo_counts(['project'])
       if params[:only_active_with_no_next_actions]
         @projects = current_user.projects.active.select { |p| count_undone_todos(p) == 0  }
       else
@@ -64,7 +64,7 @@ class ProjectsController < ApplicationController
     @current_projects = projects.uncompleted.select { |p| not (p.needs_review?(current_user)) }.sort_by { |p| p.last_reviewed || Time.zone.at(0) }
 
     init_not_done_counts(['project'])
-    init_project_hidden_todo_counts(['project'])
+    init_hidden_todo_counts(['project'])
     current_user.projects.cache_note_counts
 
     @page_title = t('projects.list_reviews')
@@ -220,7 +220,7 @@ class ProjectsController < ApplicationController
         @contexts = current_user.contexts
         update_state_counts
         init_data_for_sidebar
-        init_project_hidden_todo_counts(['project'])
+        init_hidden_todo_counts(['project'])
 
         template = 'projects/update'
 
@@ -292,7 +292,7 @@ class ProjectsController < ApplicationController
     @projects = current_user.projects.alphabetize(:state => @state) if @state
     @contexts = current_user.contexts
     init_not_done_counts(['project'])
-    init_project_hidden_todo_counts(['project']) if @state == 'hidden'
+    init_hidden_todo_counts(['project']) if @state == 'hidden'
   end
 
   def actionize
@@ -300,7 +300,7 @@ class ProjectsController < ApplicationController
     @projects = current_user.projects.actionize(:state => @state) if @state
     @contexts = current_user.contexts
     init_not_done_counts(['project'])
-    init_project_hidden_todo_counts(['project']) if @state == 'hidden'
+    init_hidden_todo_counts(['project']) if @state == 'hidden'
   end
 
   def done_todos
diff --git a/app/controllers/search_controller.rb b/app/controllers/search_controller.rb
index 6dfdc787..98fae72a 100644
--- a/app/controllers/search_controller.rb
+++ b/app/controllers/search_controller.rb
@@ -13,7 +13,7 @@ class SearchController < ApplicationController
     @count = searcher.number_of_finds
 
     init_not_done_counts
-    init_project_hidden_todo_counts
+    init_hidden_todo_counts
   end
 
   def index
diff --git a/app/controllers/todos_controller.rb b/app/controllers/todos_controller.rb
index 7a290667..dcbf31fa 100644
--- a/app/controllers/todos_controller.rb
+++ b/app/controllers/todos_controller.rb
@@ -99,8 +99,7 @@ class TodosController < ApplicationController
         @todo.add_predecessor_list(p.predecessor_list)
         @saved = @todo.save
         @todo.tag_with(tag_list) if @saved && tag_list.present?
-        @todo.update_state_from_project if @saved
-        @todo.block! if @todo.should_be_blocked?
+        @todo.block! if @todo.uncompleted_predecessors?
       else
         @saved = false
       end
@@ -448,7 +447,9 @@ class TodosController < ApplicationController
     @todo.reload # refresh context and project object too (not only their id's)
 
     update_dependency_state
-    update_todo_state_if_project_changed
+    if @project_changed
+      @remaining_undone_in_project = current_user.projects.find(@original_item_project_id).todos.active.count if source_view_is :project
+    end
 
     determine_changes_by_this_update
     determine_remaining_in_container_count( (@context_changed || @project_changed) ? @original_item : @todo)
@@ -588,7 +589,7 @@ class TodosController < ApplicationController
     respond_to do |format|
       format.html do
         init_not_done_counts
-        init_project_hidden_todo_counts
+        init_hidden_todo_counts
         init_data_for_sidebar unless mobile?
       end
       format.m
@@ -1189,12 +1190,6 @@ end
     end
   end
 
-  def update_todo_state_if_project_changed
-    if @project_changed
-      @todo.update_state_from_project
-      @remaining_undone_in_project = current_user.projects.find(@original_item_project_id).todos.active.count if source_view_is :project
-    end
-  end
 
   def update_context
     @context_changed = false
diff --git a/app/helpers/todos_helper.rb b/app/helpers/todos_helper.rb
index ec1c9348..750ace39 100644
--- a/app/helpers/todos_helper.rb
+++ b/app/helpers/todos_helper.rb
@@ -442,21 +442,11 @@ module TodosHelper
   # === handle CRUD actions for todos
 
   def show_todo_on_current_context_page
-    return @todo.context_id==@default_context.id
-  end
-
-  def todo_should_not_be_hidden_on_context_page
-    return !@todo.hidden? ||                        # todo is not hidden --> show
-           (@todo.hidden? && @todo.context.hidden?) # todo is hidden, but context is hidden too --> show
+    @todo.context_id == @default_context.id && (!@todo.hidden? || @todo.context.hidden?)
   end
 
   def show_todo_on_current_project_page
-    return @todo.project.id == @default_project.id
-  end
-
-  def todo_should_not_be_hidden_on_project_page
-    return !@todo.hidden? ||
-           (@todo.project_hidden? && @todo.project.hidden?)
+    @todo.project.id == @default_project.id && (!@todo.hidden? || @todo.project.hidden?)
   end
 
   def should_show_new_item(todo = @todo)
@@ -464,9 +454,9 @@ module TodosHelper
     source_view do |page|
       page.todo     { return !todo.hidden? && !todo.deferred? }
       page.deferred { return todo.deferred? || todo.pending? }
-      page.context  { return show_todo_on_current_context_page && todo_should_not_be_hidden_on_context_page }
       page.tag      { return todo.has_tag?(@tag_name) }
-      page.project  { return show_todo_on_current_project_page && todo_should_not_be_hidden_on_project_page }
+      page.context  { return show_todo_on_current_context_page }
+      page.project  { return show_todo_on_current_project_page }
     end
     return false
   end
diff --git a/app/models/project.rb b/app/models/project.rb
index ac4e7058..f702ce71 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -27,7 +27,7 @@ class Project < ActiveRecord::Base
   aasm :column => :state do
 
     state :active, :initial => true
-    state :hidden, :enter => :hide_todos, :exit => :unhide_todos
+    state :hidden
     state :completed, :enter => :set_completed_at_date, :exit => :clear_completed_at_date
 
     event :activate do
@@ -53,24 +53,6 @@ class Project < ActiveRecord::Base
     self.last_reviewed = Time.now
   end
 
-  def hide_todos
-    todos.each do |t|
-      unless t.completed? || t.deferred?
-        t.hide!
-        t.save
-      end
-    end
-  end
-
-  def unhide_todos
-    todos.each do |t|
-      if t.project_hidden?
-        t.unhide!
-        t.save
-      end
-    end
-  end
-
   def set_completed_at_date
     self.completed_at = Time.zone.now
   end
diff --git a/app/models/todo.rb b/app/models/todo.rb
index fa6a7e90..f24c34dc 100644
--- a/app/models/todo.rb
+++ b/app/models/todo.rb
@@ -26,21 +26,25 @@ class Todo < ActiveRecord::Base
   has_many :attachments, dependent: :destroy
 
   # scopes for states of this todo
-  scope :active, -> { where state: 'active' }
-  scope :active_or_hidden, -> { where "todos.state = ? OR todos.state = ?", 'active', 'project_hidden' }
-  scope :not_completed, -> { where 'NOT (todos.state = ?)', 'completed' }
-  scope :completed, -> { where "todos.state = ?", 'completed' }
-  scope :deferred, -> { where "todos.state = ?", 'deferred' }
+  scope :active, -> { active_or_hidden.not_hidden }
+  scope :active_or_hidden, -> { where state: 'active' }
+  scope :context_hidden, -> { joins('INNER JOIN contexts c ON c.id = todos.context_id').where('c.state = ?', 'hidden') }
+  scope :project_hidden, -> { joins('LEFT OUTER JOIN projects p ON p.id = todos.project_id').where('p.state = ?', 'hidden') }
+  scope :completed, -> { where 'todos.state = ?', 'completed' }
+  scope :deferred, -> { where 'todos.state = ?', 'deferred' }
   scope :blocked, -> {where 'todos.state = ?', 'pending' }
   scope :pending, -> {where 'todos.state = ?', 'pending' }
-  scope :deferred_or_blocked, -> { where "(todos.state = ?) OR (todos.state = ?)", "deferred", "pending" }
-  scope :not_deferred_or_blocked, -> { where "(NOT todos.state=?) AND (NOT todos.state = ?)", "deferred", "pending" }
+  scope :deferred_or_blocked, -> { where '(todos.state = ?) OR (todos.state = ?)', 'deferred', 'pending' }
   scope :hidden, -> {
-    joins("INNER JOIN contexts c_hidden ON c_hidden.id = todos.context_id").
-    where("todos.state = ? OR (c_hidden.state = ? AND (todos.state = ? OR todos.state = ? OR todos.state = ?))", 'project_hidden', 'hidden', 'active', 'deferred', 'pending') }
-  scope :not_hidden, -> {
-    joins("INNER JOIN contexts c_hidden ON c_hidden.id = todos.context_id").
-    where('NOT(todos.state = ? OR (c_hidden.state = ? AND (todos.state = ? OR todos.state = ? OR todos.state = ?)))','project_hidden', 'hidden', 'active', 'deferred', 'pending') }
+    joins('INNER JOIN contexts c_hidden ON c_hidden.id = todos.context_id').
+    joins('LEFT OUTER JOIN projects p_hidden ON p_hidden.id = todos.project_id').
+    where('(c_hidden.state = ? OR p_hidden.state = ?)', 'hidden', 'hidden').
+    where('NOT todos.state = ?', 'completed') }
+  scope :not_hidden, -> { not_context_hidden.not_project_hidden }
+  scope :not_deferred_or_blocked, -> { where '(NOT todos.state=?) AND (NOT todos.state = ?)', 'deferred', 'pending' }
+  scope :not_project_hidden, -> { joins('LEFT OUTER JOIN projects p ON p.id = todos.project_id').where('p.id IS NULL OR NOT(p.state = ?)', 'hidden') }
+  scope :not_context_hidden, -> { joins('INNER JOIN contexts c ON c.id = todos.context_id').where('NOT(c.state = ?)', 'hidden') }
+  scope :not_completed, -> { where 'NOT (todos.state = ?)', 'completed' }
 
   # other scopes
   scope :are_due,           -> { where 'NOT (todos.due IS NULL)' }
@@ -71,7 +75,6 @@ class Todo < ActiveRecord::Base
   aasm :column => :state do
 
     state :active
-    state :project_hidden
     state :completed, :before_enter => Proc.new { |t| t.completed_at = Time.zone.now }, :before_exit => Proc.new { |t| t.completed_at = nil}
     state :deferred,  :before_exit => Proc.new { |t| t[:show_from] = nil }
     state :pending
@@ -81,29 +84,19 @@ class Todo < ActiveRecord::Base
     end
 
     event :complete do
-      transitions :to => :completed, :from => [:active, :project_hidden, :deferred, :pending]
+      transitions :to => :completed, :from => [:active, :deferred, :pending]
     end
 
     event :activate do
-      transitions :to => :active, :from => [:project_hidden, :deferred]
+      transitions :to => :active, :from => [:deferred]
       transitions :to => :active, :from => [:completed], :guard => :no_uncompleted_predecessors?
       transitions :to => :active, :from => [:pending], :guard => :no_uncompleted_predecessors_or_deferral?
       transitions :to => :pending, :from => [:completed], :guard => :uncompleted_predecessors?
       transitions :to => :deferred, :from => [:pending], :guard => :no_uncompleted_predecessors?
     end
 
-    event :hide do
-      transitions :to => :project_hidden, :from => [:active, :deferred, :pending]
-    end
-
-    event :unhide do
-      transitions :to => :deferred, :from => [:project_hidden], :guard => Proc.new{|t| t.show_from.present? }
-      transitions :to => :pending, :from => [:project_hidden], :guard => :uncompleted_predecessors?
-      transitions :to => :active, :from => [:project_hidden]
-    end
-
     event :block do
-      transitions :to => :pending, :from => [:active, :deferred, :project_hidden]
+      transitions :to => :pending, :from => [:active, :deferred]
     end
   end
 
@@ -143,10 +136,6 @@ class Todo < ActiveRecord::Base
     return !uncompleted_predecessors.empty?
   end
 
-  def should_be_blocked?
-    return !( uncompleted_predecessors.empty? || state == 'project_hidden' )
-  end
-
   def guard_for_transition_from_deferred_to_pending
     no_uncompleted_predecessors? && not_part_of_hidden_container?
   end
@@ -199,7 +188,7 @@ class Todo < ActiveRecord::Base
     self.predecessors.delete(predecessor)
     if self.predecessors.empty?
       self.reload  # reload predecessors
-      self.not_part_of_hidden_container? ? self.activate! : self.hide!
+      self.activate!
     else
       save!
     end
@@ -226,20 +215,7 @@ class Todo < ActiveRecord::Base
   end
 
   def hidden?
-    return self.project_hidden? || ( self.context.hidden? && (self.active? || self.deferred?))
-  end
-
-  def update_state_from_project
-    if self.project_hidden? && (!self.project.hidden?)
-      if self.uncompleted_predecessors.empty?
-        self.activate!
-      else
-        self.block!
-      end
-    elsif self.active? && self.project.hidden?
-      self.hide!
-    end
-    self.save!
+    self.project.hidden? || self.context.hidden?
   end
 
   def toggle_completion!
diff --git a/test/controllers/contexts_controller_test.rb b/test/controllers/contexts_controller_test.rb
index 56492154..9b6b5c7d 100644
--- a/test/controllers/contexts_controller_test.rb
+++ b/test/controllers/contexts_controller_test.rb
@@ -13,7 +13,17 @@ class ContextsControllerTest < ActionController::TestCase
     get :show, { :id => "1" }
     assert_equal 'TRACKS::Context: agenda', assigns['page_title']
   end
-  
+
+  def test_shows_todos_when_hidden
+    c = contexts(:agenda)
+    todos = c.todos.active
+    assert_equal 6, todos.size
+    c.hide!
+    login_as :admin_user
+    get :show, { :id => '1'}
+    assert_equal 6, assigns['not_done_todos'].size
+  end
+
   def test_show_renders_show_template
     login_as :admin_user
     get :show, { :id => "1" }
diff --git a/test/controllers/projects_controller_test.rb b/test/controllers/projects_controller_test.rb
index 9028d257..6af1cf15 100644
--- a/test/controllers/projects_controller_test.rb
+++ b/test/controllers/projects_controller_test.rb
@@ -52,13 +52,13 @@ class ProjectsControllerTest < ActionController::TestCase
     assert_ajax_create_increments_count 'My New Project'
   end
 
-  def test_todo_state_is_project_hidden_after_hiding_project
+  def test_todo_is_hidden_after_hiding_project
     p = projects(:timemachine)
     todos = p.todos.active
     login_as(:admin_user)
     xhr :post, :update, :id => 1, "project"=>{"name"=>p.name, "description"=>p.description, "state"=>"hidden"}
     todos.each do |t|
-      assert_equal :project_hidden, t.reload().aasm.current_state
+      assert t.reload().hidden?
     end
     assert p.reload().hidden?
   end
diff --git a/test/controllers/todos_controller_test.rb b/test/controllers/todos_controller_test.rb
index 2c33beb1..17f2557d 100644
--- a/test/controllers/todos_controller_test.rb
+++ b/test/controllers/todos_controller_test.rb
@@ -381,7 +381,7 @@ class TodosControllerTest < ActionController::TestCase
     assert p.reload().hidden?
     todo = p.todos.first
 
-    assert todo.project_hidden?, "todo should be project_hidden"
+    assert todo.hidden?, 'todo should be hidden'
 
     # clear project from todo: the todo should be unhidden
     xhr :post, :update, :id => todo.id, :_source_view => 'todo', "project_name"=>"", "todo"=>{}
diff --git a/test/models/todo_test.rb b/test/models/todo_test.rb
index f9791084..c257c0fe 100644
--- a/test/models/todo_test.rb
+++ b/test/models/todo_test.rb
@@ -216,8 +216,6 @@ class TodoTest < ActiveSupport::TestCase
     new_todo = @not_completed1.user.todos.build(description: "test", context: @not_completed1.context, project: project)
     new_todo.save!
     assert new_todo.active?
-    # And I update the state of the todo from its project
-    new_todo.update_state_from_project
     # Then the todo should be hidden
     assert new_todo.hidden?
   end