diff --git a/file_entity.module b/file_entity.module
index 3b36595..6de50f4 100644
--- a/file_entity.module
+++ b/file_entity.module
@@ -923,3 +923,14 @@ function file_entity_upload_validators_pre_render($element) {
   }
   return $element;
 }
+
+/**
+ * Implements hook_form_FORMID_alter() for system_file_system_settings().
+ */
+function file_entity_form_system_file_system_settings_alter(&$form, &$form_state) {
+  // Add a defult file directory setting to the file system form.
+  $form['file_entity_default_file_directory']['#type'] = 'textfield';
+  $form['file_entity_default_file_directory']['#title'] = t('File entity: Default file directory');
+  $form['file_entity_default_file_directory']['#description'] = t('Optional subdirectory within the upload destination where files will be stored if the file is uploaded through the file entity overview page and the directory is not specified otherwise. Do not include preceding or trailing slashes. This field supports tokens.');
+  $form['file_entity_default_file_directory']['#default_value'] = variable_get('file_entity_default_file_directory', '');
+}
diff --git a/file_entity.pages.inc b/file_entity.pages.inc
index ee58c90..a46aef9 100644
--- a/file_entity.pages.inc
+++ b/file_entity.pages.inc
@@ -109,7 +109,7 @@ function file_entity_add_upload_submit($form, &$form_state) {
 function file_entity_upload_destination_uri(array $params, array $data = array()) {
   $params += array(
     'uri_scheme' => file_default_scheme(),
-    'file_directory' => '',
+    'file_directory' => variable_get('file_entity_default_file_directory', ''),
   );
 
   $destination = trim($params['file_directory'], '/');