diff --git a/file_entity.module b/file_entity.module
index e349a12..cb203d4 100644
--- a/file_entity.module
+++ b/file_entity.module
@@ -2203,6 +2203,22 @@ function file_entity_fnmatch($pattern, $string) {
   return fnmatch($pattern, $string);
 }
 
+
+/**
+ * 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', '');
+  $form['file_entity_default_file_directory']['tokens'] = array(
+    '#theme' => 'token_tree',
+    '#dialog' => TRUE,
+  );
+}
+
 /**
  * Return an URI for a file download.
  */
diff --git a/file_entity.pages.inc b/file_entity.pages.inc
index fec022a..9804826 100644
--- a/file_entity.pages.inc
+++ b/file_entity.pages.inc
@@ -411,7 +411,7 @@ function file_entity_add_upload_submit($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'], '/');