diff --git a/salt/fileclient.py b/salt/fileclient.py
index 2b2df0cc8f..996a4831ad 100644
--- a/salt/fileclient.py
+++ b/salt/fileclient.py
@@ -140,7 +140,7 @@ class Client(object):
             ret.append(self.cache_file('salt://{0}'.format(path), env))
         return ret
 
-    def cache_dir(self, path, env='base'):
+    def cache_dir(self, path, env='base', include_empty=False):
         '''
         Download all of the files in a subdir of the master
         '''
@@ -152,6 +152,27 @@ class Client(object):
                 if not fn_.strip():
                     continue
                 ret.append(local)
+
+        if include_empty:
+            # Break up the path into a list containing the bottom-level directory
+            # (the one being recursively copied) and the directories preceding it
+            separated = string.rsplit(path,'/',1)
+            if len(separated) != 2:
+                # No slashes in path. (This means all files in env will be copied)
+                prefix = ''
+            else:
+                prefix = separated[0]
+            for fn_ in self.file_list_emptydirs(env):
+                if fn_.startswith(path):
+                    dest = os.path.normpath(
+                      os.sep.join([
+                      self.opts['cachedir'],
+                      'files',
+                      env])) 
+                    minion_dir = '%s/%s' % (dest,fn_)
+                    if not os.path.isdir(minion_dir):
+                        os.makedirs(minion_dir)
+                    ret.append(minion_dir)
         return ret
 
     def cache_local_file(self, path, **kwargs):
diff --git a/salt/modules/cp.py b/salt/modules/cp.py
index bf3da89c8a..3b2c2022d5 100644
--- a/salt/modules/cp.py
+++ b/salt/modules/cp.py
@@ -123,7 +123,7 @@ def cache_files(paths, env='base'):
     return client.cache_files(paths, env)
 
 
-def cache_dir(path, env='base'):
+def cache_dir(path, env='base', include_empty=False):
     '''
     Download and cache everything under a directory from the master
 
@@ -132,7 +132,7 @@ def cache_dir(path, env='base'):
         salt '*' cp.cache_dir salt://path/to/dir
     '''
     client = salt.fileclient.get_file_client(__opts__)
-    return client.cache_dir(path, env)
+    return client.cache_dir(path, env, include_empty)
 
 
 def cache_master(env='base'):
diff --git a/salt/states/file.py b/salt/states/file.py
index c2dfd12198..4f75d4a040 100644
--- a/salt/states/file.py
+++ b/salt/states/file.py
@@ -88,6 +88,7 @@ import copy
 
 # Import Salt libs
 import salt.utils.templates
+import pdb
 
 logger = logging.getLogger(__name__)
 
@@ -415,14 +416,15 @@ def _check_recurse(
         group,
         dir_mode,
         file_mode,
-        env):
+        env,
+        include_empty):
     '''
     Check what files will be changed by a recurse call
     '''
     vdir = set()
     keep = set()
     changes = {}
-    for fn_ in __salt__['cp.cache_dir'](source, env):
+    for fn_ in __salt__['cp.cache_dir'](source, env, include_empty):
         if not fn_.strip():
             continue
         dest = os.path.join(name,
@@ -1210,6 +1212,7 @@ def recurse(name,
         dir_mode=None,
         file_mode=None,
         env=None,
+        include_empty=False,
         **kwargs):
     '''
     Recurse through a subdirectory on the master and copy said subdirecory
@@ -1245,6 +1248,10 @@ def recurse(name,
 
     file_mode
         The permissions mode to set any files created
+
+    include_empty
+        Set this to True if empty directories should also be created 
+        (default is False)
     '''
     ret = {'name': name,
            'changes': {},
@@ -1274,10 +1281,11 @@ def recurse(name,
                 group,
                 dir_mode,
                 file_mode,
-                env)
+                env,
+                include_empty)
         return ret
     vdir = set()
-    for fn_ in __salt__['cp.cache_dir'](source, env):
+    for fn_ in __salt__['cp.cache_dir'](source, env, include_empty):
         if not fn_.strip():
             continue
         dest = os.path.join(name,
@@ -1317,11 +1325,21 @@ def recurse(name,
                 # FIXME: no metadata (ownership, permissions) available
                 shutil.copyfile(fn_, dest)
                 ret['changes'][dest] = 'updated'
+        elif os.path.isdir(dest) and include_empty:
+            #check perms
+            _ret, perms = _check_perms(dest, {}, user, group, dir_mode)
+            if _ret['changes']:
+                ret['changes'][dest] = 'updated'
+            keep.add(dest)
         else:
             keep.add(dest)
-            # The destination file is not present, make it
-            # FIXME: no metadata (ownership, permissions) available
-            shutil.copyfile(fn_, dest)
+            if os.path.isdir(fn_) and include_empty:
+                #create empty dir
+                os.mkdir(dest,dir_mode)
+            else:
+                # The destination file is not present, make it
+                # FIXME: no metadata (ownership, permissions) available
+                shutil.copyfile(fn_, dest)
             ret['changes'][dest] = 'new'
     keep = list(keep)
     if clean: