diff --git a/dll/win32/shell32/CDefView.cpp b/dll/win32/shell32/CDefView.cpp
index 50af36089db..2d04d035073 100644
--- a/dll/win32/shell32/CDefView.cpp
+++ b/dll/win32/shell32/CDefView.cpp
@@ -199,7 +199,7 @@ public:
     int LV_AddItem(PCUITEMID_CHILD pidl);
     BOOLEAN LV_DeleteItem(PCUITEMID_CHILD pidl);
     BOOLEAN LV_RenameItem(PCUITEMID_CHILD pidlOld, PCUITEMID_CHILD pidlNew);
-    BOOLEAN LV_ProdItem(PCUITEMID_CHILD pidl);
+    BOOLEAN LV_UpdateItem(PCUITEMID_CHILD pidl);
     static INT CALLBACK fill_list(LPVOID ptr, LPVOID arg);
     HRESULT FillList();
     HRESULT FillFileMenu();
@@ -214,6 +214,7 @@ public:
     HRESULT drag_notify_subitem(DWORD grfKeyState, POINTL pt, DWORD *pdwEffect);
     HRESULT InvokeContextMenuCommand(CComPtr<IContextMenu>& pCM, LPCSTR lpVerb, POINT* pt = NULL);
     LRESULT OnExplorerCommand(UINT uCommand, BOOL bUseSelection);
+    void RefreshIcons();
 
     // *** IOleWindow methods ***
     STDMETHOD(GetWindow)(HWND *lphwnd) override;
@@ -973,6 +974,8 @@ BOOLEAN CDefView::LV_DeleteItem(PCUITEMID_CHILD pidl)
     if (nIndex < 0)
         return FALSE;
 
+    _DoFolderViewCB(SFVM_REMOVINGOBJECT, 0, (LPARAM)pidl);
+
     return m_ListView.DeleteItem(nIndex);
 }
 
@@ -1015,7 +1018,7 @@ BOOLEAN CDefView::LV_RenameItem(PCUITEMID_CHILD pidlOld, PCUITEMID_CHILD pidlNew
     return FALSE;
 }
 
-BOOLEAN CDefView::LV_ProdItem(PCUITEMID_CHILD pidl)
+BOOLEAN CDefView::LV_UpdateItem(PCUITEMID_CHILD pidl)
 {
     int nItem;
     LVITEMW lvItem;
@@ -1028,6 +1031,8 @@ BOOLEAN CDefView::LV_ProdItem(PCUITEMID_CHILD pidl)
 
     if (-1 != nItem)
     {
+        _DoFolderViewCB(SFVM_UPDATINGOBJECT, 0, (LPARAM)pidl);
+
         lvItem.mask = LVIF_IMAGE;
         lvItem.iItem = nItem;
         lvItem.iSubItem = 0;
@@ -2294,6 +2299,24 @@ static BOOL ILIsParentOrSpecialParent(PCIDLIST_ABSOLUTE pidl1, PCIDLIST_ABSOLUTE
     return FALSE;
 }
 
+void CDefView::RefreshIcons()
+{
+    ASSERT(m_ListView);
+
+    LVITEMW lvItem = { LVIF_IMAGE };
+    for (INT iItem = -1;;)
+    {
+        iItem = ListView_GetNextItem(m_ListView, iItem, LVNI_ALL);
+        if (iItem == -1)
+            break;
+
+        lvItem.iItem = iItem;
+        lvItem.iImage = I_IMAGECALLBACK;
+        m_ListView.SetItem(&lvItem);
+        m_ListView.Update(iItem);
+    }
+}
+
 LRESULT CDefView::OnChangeNotify(UINT uMsg, WPARAM wParam, LPARAM lParam, BOOL &bHandled)
 {
     // The change notify can come before WM_CREATE
@@ -2311,49 +2334,81 @@ LRESULT CDefView::OnChangeNotify(UINT uMsg, WPARAM wParam, LPARAM lParam, BOOL &
         return FALSE;
     }
 
-    BOOL bParent0 = ILIsParentOrSpecialParent(m_pidlParent, Pidls[0]);
-    BOOL bParent1 = ILIsParentOrSpecialParent(m_pidlParent, Pidls[1]);
-
     TRACE("(%p)(%p,%p,0x%08x)\n", this, Pidls[0], Pidls[1], lParam);
 
+    // Translate PIDLs.
+    // SHSimpleIDListFromPathW creates fake PIDLs (lacking some attributes)
+    CComHeapPtr<ITEMIDLIST_ABSOLUTE> pidl0, pidl1;
+    WCHAR path0[MAX_PATH], path1[MAX_PATH];
+    if (Pidls[0])
+    {
+        if (SHGetPathFromIDListW(Pidls[0], path0) && PathFileExistsW(path0))
+            pidl0.Attach(ILCreateFromPathW(path0));
+        else
+            pidl0.Attach(ILClone(Pidls[0]));
+    }
+    if (Pidls[1])
+    {
+        if (SHGetPathFromIDListW(Pidls[1], path1) && PathFileExistsW(path1))
+            pidl1.Attach(ILCreateFromPathW(path1));
+        else
+            pidl1.Attach(ILClone(Pidls[1]));
+    }
+
+    PITEMID_CHILD child0 = NULL, child1 = NULL;
+    if (ILIsParentOrSpecialParent(m_pidlParent, pidl0))
+        child0 = ILFindLastID(pidl0);
+    if (ILIsParentOrSpecialParent(m_pidlParent, pidl1))
+        child1 = ILFindLastID(pidl1);
+
     lEvent &= ~SHCNE_INTERRUPT;
     switch (lEvent)
     {
         case SHCNE_MKDIR:
         case SHCNE_CREATE:
         case SHCNE_DRIVEADD:
-            if (bParent0)
-            {
-                if (LV_FindItemByPidl(ILFindLastID(Pidls[0])) == -1)
-                    LV_AddItem(ILFindLastID(Pidls[0]));
-                else
-                    LV_ProdItem(ILFindLastID(Pidls[0]));
-            }
+            if (!child0)
+                break;
+            if (LV_FindItemByPidl(child0) < 0)
+                LV_AddItem(child0);
+            else
+                LV_UpdateItem(child0);
             break;
         case SHCNE_RMDIR:
         case SHCNE_DELETE:
         case SHCNE_DRIVEREMOVED:
-            if (bParent0)
-                LV_DeleteItem(ILFindLastID(Pidls[0]));
+            if (child0)
+                LV_DeleteItem(child0);
             break;
         case SHCNE_RENAMEFOLDER:
         case SHCNE_RENAMEITEM:
-            if (bParent0 && bParent1)
-                LV_RenameItem(ILFindLastID(Pidls[0]), ILFindLastID(Pidls[1]));
-            else if (bParent0)
-                LV_DeleteItem(ILFindLastID(Pidls[0]));
-            else if (bParent1)
-                LV_AddItem(ILFindLastID(Pidls[1]));
+            if (child0 && child1)
+                LV_RenameItem(child0, child1);
+            else if (child0)
+                LV_DeleteItem(child0);
+            else if (child1)
+                LV_AddItem(child1);
             break;
         case SHCNE_UPDATEITEM:
-            if (bParent0)
-                LV_RenameItem(ILFindLastID(Pidls[0]), ILFindLastID(Pidls[0]));
+            if (child0)
+                LV_UpdateItem(child0);
+            break;
+        case SHCNE_UPDATEIMAGE:
+            RefreshIcons();
             break;
         case SHCNE_UPDATEDIR:
+        case SHCNE_ASSOCCHANGED:
+        case SHCNE_MEDIAINSERTED:
+        case SHCNE_MEDIAREMOVED:
             Refresh();
             break;
+        case SHCNE_FREESPACE:
+            UpdateStatusbar();
+            break;
     }
 
+    ILFree(Pidls[0]);
+    ILFree(Pidls[1]);
     SHChangeNotification_Unlock(hLock);
     return TRUE;
 }
diff --git a/dll/win32/shell32/folders/CFSFolder.cpp b/dll/win32/shell32/folders/CFSFolder.cpp
index b89ecc45579..95a5030a2d3 100644
--- a/dll/win32/shell32/folders/CFSFolder.cpp
+++ b/dll/win32/shell32/folders/CFSFolder.cpp
@@ -683,6 +683,7 @@ HRESULT SHELL32_GetFSItemAttributes(IShellFolder * psf, LPCITEMIDLIST pidl, LPDW
     return S_OK;
 }
 
+// This method is typically invoked from SHSimpleIDListFromPathA/W.
 HRESULT CFSFolder::_ParseSimple(
     _In_ LPOLESTR lpszDisplayName,
     _Inout_ WIN32_FIND_DATAW *pFind,
diff --git a/dll/win32/shell32/folders/CRecycleBin.cpp b/dll/win32/shell32/folders/CRecycleBin.cpp
index c8bceb589f4..f67b3eca791 100644
--- a/dll/win32/shell32/folders/CRecycleBin.cpp
+++ b/dll/win32/shell32/folders/CRecycleBin.cpp
@@ -1078,6 +1078,10 @@ EXTERN_C HRESULT WINAPI SHUpdateRecycleBinIcon(void)
 {
     FIXME("stub\n");
 
+    /* HACK! */
+    LPITEMIDLIST pidl = _ILCreateBitBucket();
+    SHChangeNotify(SHCNE_UPDATEIMAGE, SHCNF_IDLIST, pidl, NULL);
+    ILFree(pidl);
     return S_OK;
 }
 
diff --git a/dll/win32/shell32/shlfileop.cpp b/dll/win32/shell32/shlfileop.cpp
index f1ecc455428..5e1309aabdf 100644
--- a/dll/win32/shell32/shlfileop.cpp
+++ b/dll/win32/shell32/shlfileop.cpp
@@ -2061,6 +2061,8 @@ cleanup:
 
     if (lpFileOp->wFunc != FO_DELETE)
         destroy_file_list(&flTo);
+    else if (lpFileOp->fFlags & FOF_ALLOWUNDO)
+        SHUpdateRecycleBinIcon();
 
     if (ret == ERROR_CANCELLED)
         lpFileOp->fAnyOperationsAborted = TRUE;
diff --git a/dll/win32/shell32/wine/pidl.c b/dll/win32/shell32/wine/pidl.c
index 824af18984a..33495aead3a 100644
--- a/dll/win32/shell32/wine/pidl.c
+++ b/dll/win32/shell32/wine/pidl.c
@@ -1113,15 +1113,6 @@ LPITEMIDLIST WINAPI SHSimpleIDListFromPathA(LPCSTR lpszPath)
         wPath = HeapAlloc(GetProcessHeap(), 0, len * sizeof(WCHAR));
         MultiByteToWideChar(CP_ACP, 0, lpszPath, -1, wPath, len);
     }
-#ifdef __REACTOS__
-    // FIXME: Needs folder attribute
-    if (PathFileExistsW(wPath))
-    {
-        pidl = ILCreateFromPathW(wPath);
-        HeapFree(GetProcessHeap(), 0, wPath);
-        return pidl;
-    }
-#endif
 
     _ILParsePathW(wPath, NULL, TRUE, &pidl, NULL);
 
@@ -1135,13 +1126,9 @@ LPITEMIDLIST WINAPI SHSimpleIDListFromPathW(LPCWSTR lpszPath)
     LPITEMIDLIST pidl = NULL;
 
     TRACE("%s\n", debugstr_w(lpszPath));
-#ifdef __REACTOS__
-    // FIXME: Needs folder attribute
-    if (PathFileExistsW(lpszPath))
-        return ILCreateFromPathW(lpszPath);
-#endif
 
     _ILParsePathW(lpszPath, NULL, TRUE, &pidl, NULL);
+
     TRACE("%s %p\n", debugstr_w(lpszPath), pidl);
     return pidl;
 }
diff --git a/sdk/include/psdk/shlobj.h b/sdk/include/psdk/shlobj.h
index 3d27f328631..bd60c13064c 100644
--- a/sdk/include/psdk/shlobj.h
+++ b/sdk/include/psdk/shlobj.h
@@ -1323,6 +1323,7 @@ SHCreateShellFolderViewEx(
 #define SFVM_SETISFV                  39
 #define SFVM_GETEXTVIEWS              40 /* undocumented */
 #define SFVM_THISIDLIST               41
+#define SFVM_UPDATINGOBJECT           43 /* undocumented */
 #define SFVM_ADDPROPERTYPAGES         47
 #define SFVM_BACKGROUNDENUMDONE       48
 #define SFVM_GETNOTIFY                49
diff --git a/sdk/include/reactos/undocshell.h b/sdk/include/reactos/undocshell.h
index 0460a261cb7..94f6bf71702 100644
--- a/sdk/include/reactos/undocshell.h
+++ b/sdk/include/reactos/undocshell.h
@@ -122,6 +122,7 @@ typedef struct _SHCNF_PRINTJOB_INFO
 #define SHCNF_PRINTJOBA 0x0004
 #define SHCNF_PRINTJOBW 0x0007
 
+HRESULT WINAPI SHUpdateRecycleBinIcon(void);
 
 /****************************************************************************
  * Shell Common Dialogs