diff --git a/grade/lib.php b/grade/lib.php
index 7712f6cde9f..9ecbbddbb11 100644
--- a/grade/lib.php
+++ b/grade/lib.php
@@ -470,7 +470,7 @@ class grade_tree {
      * @param boolean $category_grade_last category grade item is the last child
      * @param array $collapsed array of collapsed categories
      */
-    function grade_tree($courseid, $fillers=true, $category_grade_last=false, $collapsed=null) {
+    function grade_tree($courseid, $fillers=true, $category_grade_last=false, $collapsed=null, $nooutcomes=false) {
         global $USER, $CFG;
 
         $this->courseid   = $courseid;
@@ -486,6 +486,11 @@ class grade_tree {
             grade_tree::category_collapse($this->top_element, $collapsed);
         }
 
+        // no otucomes if requested
+        if (!empty($nooutcomes)) {
+            grade_tree::no_outcomes($this->top_element);
+        }
+
         // move category item to last position in category
         if ($category_grade_last) {
             grade_tree::category_grade_last($this->top_element);
@@ -527,6 +532,27 @@ class grade_tree {
         }
     }
 
+    /**
+     * Static recursive helper - removes all outcomes
+     * @static
+     * @param array $element The seed of the recursion
+     * @return void
+     */
+    function no_outcomes(&$element) {
+        if ($element['type'] != 'category') {
+            return;
+        }
+        foreach ($element['children'] as $sortorder=>$child) {
+            if ($element['children'][$sortorder]['type'] == 'item'
+              and $element['children'][$sortorder]['object']->is_outcome_item()) {
+                unset($element['children'][$sortorder]);
+
+            } else if ($element['children'][$sortorder]['type'] == 'category') {  
+                grade_tree::no_outcomes($element['children'][$sortorder]);
+            }
+        }
+    }
+
     /**
      * Static recursive helper - makes the grade_item for category the last children
      * @static
diff --git a/grade/report/grader/lib.php b/grade/report/grader/lib.php
index fee2b93df26..710d0f53cfc 100644
--- a/grade/report/grader/lib.php
+++ b/grade/report/grader/lib.php
@@ -80,8 +80,14 @@ class grade_report_grader extends grade_report {
         } else {
             $this->collapsed = array();
         }
+        if (empty($CFG->enableoutcomes)) {
+            $nooutcomes = false;
+        } else {
+            $nooutcomes = get_user_preferences('grade_report_shownooutcomes');
+        }
+
         // Grab the grade_tree for this course
-        $this->gtree = new grade_tree($this->courseid, true, $this->get_pref('aggregationposition'), $this->collapsed);
+        $this->gtree = new grade_tree($this->courseid, true, $this->get_pref('aggregationposition'), $this->collapsed, $nooutcomes);
 
         $this->sortitemid = $sortitemid;
 
@@ -306,7 +312,8 @@ class grade_report_grader extends grade_report {
      * @return string HTML code
      */
     function get_toggles_html() {
-        global $USER;
+        global $CFG, $USER;
+
         $html = '<div id="grade-report-toggles">';
         if ($USER->gradeediting[$this->courseid]) {
             if (has_capability('moodle/grade:manage', $this->context) or has_capability('moodle/grade:hide', $this->context)) {
@@ -325,6 +332,9 @@ class grade_report_grader extends grade_report {
         $html .= $this->print_toggle('averages', true);
         $html .= $this->print_toggle('groups', true);
         $html .= $this->print_toggle('ranges', true);
+        if (!empty($CFG->enableoutcomes)) {
+            $html .= $this->print_toggle('nooutcomes', true);
+        }
         $html .= '</div>';
         return $html;
     }
@@ -338,13 +348,19 @@ class grade_report_grader extends grade_report {
     function print_toggle($type, $return=false) {
         global $CFG;
 
-        $icons = array('eyecons' => 'hide',
-                       'calculations' => 'calc',
-                       'locks' => 'lock',
-                       'averages' => 'sigma');
+        $icons = array('eyecons' => 't/hide.gif',
+                       'calculations' => 't/calc.gif',
+                       'locks' => 't/lock.gif',
+                       'averages' => 't/sigma.gif',
+                       'nooutcomes' => 'i/outcomes.gif');
 
         $pref_name = 'grade_report_show' . $type;
-        $show_pref = get_user_preferences($pref_name, $CFG->$pref_name);
+
+        if (array_key_exists($pref_name, $CFG)) {
+            $show_pref = get_user_preferences($pref_name, $CFG->$pref_name);
+        } else {
+            $show_pref = get_user_preferences($pref_name);
+        }
 
         $strshow = $this->get_lang_string('show' . $type, 'grades');
         $strhide = $this->get_lang_string('hide' . $type, 'grades');
@@ -360,12 +376,12 @@ class grade_report_grader extends grade_report {
         if (array_key_exists($type, $icons)) {
             $image_name = $icons[$type];
         } else {
-            $image_name = $type;
+            $image_name = "t/$type.gif";
         }
 
         $string = ${'str' . $show_hide};
 
-        $img = '<img src="'.$CFG->pixpath.'/t/'.$image_name.'.gif" class="iconsmall" alt="'
+        $img = '<img src="'.$CFG->pixpath.'/'.$image_name.'" class="iconsmall" alt="'
                       .$string.'" title="'.$string.'" />'. "\n";
 
         $retval = '<div class="gradertoggle">' . $img . '<a href="' . $this->baseurl . "&amp;toggle=$toggle_action&amp;toggle_type=$type\">"
diff --git a/lang/en_utf8/grades.php b/lang/en_utf8/grades.php
index 0497ecb9d69..18cdd5c1954 100644
--- a/lang/en_utf8/grades.php
+++ b/lang/en_utf8/grades.php
@@ -185,6 +185,7 @@ $string['hideeyecons'] = 'Hide show/hide icons';
 $string['hideaverages'] = 'Hide averages';
 $string['hidegroups'] = 'Hide groups';
 $string['hidelocks'] = 'Hide locks';
+$string['hidenooutcomes'] = 'Show outcomes';
 $string['hidefeedback'] = 'Hide feedback';
 $string['hideranges'] = 'Hide ranges';
 $string['highgradeascending'] = 'Sort by high grade ascending';
@@ -329,6 +330,7 @@ $string['showfeedback'] = 'Show feedback';
 $string['showgroups'] = 'Show groups';
 $string['showhiddenitems'] = 'Show Hidden Items';
 $string['showlocks'] = 'Show locks';
+$string['shownooutcomes'] = 'Hide outcomes';
 $string['showranges'] = 'Show ranges';
 $string['showuserimage'] = 'Show user profile images';
 $string['sitedefault'] = 'Site default ($a)';