diff --git a/erpnext/portal/doctype/products_settings/products_settings.json b/erpnext/portal/doctype/products_settings/products_settings.json
index 90de96c..2d025cf 100644
--- a/erpnext/portal/doctype/products_settings/products_settings.json
+++ b/erpnext/portal/doctype/products_settings/products_settings.json
@@ -1,17 +1,23 @@
 {
  "allow_copy": 0, 
+ "allow_guest_to_view": 0, 
  "allow_import": 0, 
  "allow_rename": 0, 
+ "beta": 0, 
  "creation": "2016-04-22 09:11:55.272398", 
  "custom": 0, 
  "docstatus": 0, 
  "doctype": "DocType", 
  "document_type": "", 
+ "editable_grid": 0, 
+ "engine": "InnoDB", 
  "fields": [
   {
+   "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "description": "If checked, the Home page will be the default Item Group for the website", 
    "fieldname": "home_page_is_products", 
    "fieldtype": "Check", 
@@ -19,7 +25,9 @@
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
+   "in_global_search": 0, 
    "in_list_view": 0, 
+   "in_standard_filter": 0, 
    "label": "Home Page is Products", 
    "length": 0, 
    "no_copy": 0, 
@@ -28,6 +36,7 @@
    "print_hide": 0, 
    "print_hide_if_no_value": 0, 
    "read_only": 0, 
+   "remember_last_selected_value": 0, 
    "report_hide": 0, 
    "reqd": 0, 
    "search_index": 0, 
@@ -35,16 +44,20 @@
    "unique": 0
   }, 
   {
+   "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "products_as_list", 
    "fieldtype": "Check", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
+   "in_global_search": 0, 
    "in_list_view": 0, 
+   "in_standard_filter": 0, 
    "label": "Show Products as a List", 
    "length": 0, 
    "no_copy": 0, 
@@ -53,6 +66,39 @@
    "print_hide": 0, 
    "print_hide_if_no_value": 0, 
    "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "default": "6", 
+   "fieldname": "products_per_page", 
+   "fieldtype": "Int", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Products per Page", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
    "report_hide": 0, 
    "reqd": 0, 
    "search_index": 0, 
@@ -60,16 +106,17 @@
    "unique": 0
   }
  ], 
+ "has_web_view": 0, 
  "hide_heading": 0, 
  "hide_toolbar": 0, 
  "idx": 0, 
+ "image_view": 0, 
  "in_create": 0, 
- "in_dialog": 0, 
  "is_submittable": 0, 
  "issingle": 1, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-04-22 09:11:59.537639", 
+ "modified": "2017-11-07 19:34:33.055048", 
  "modified_by": "Administrator", 
  "module": "Portal", 
  "name": "Products Settings", 
@@ -100,7 +147,9 @@
  "quick_entry": 1, 
  "read_only": 0, 
  "read_only_onload": 0, 
+ "show_name_in_global_search": 0, 
  "sort_field": "modified", 
  "sort_order": "DESC", 
+ "track_changes": 1, 
  "track_seen": 0
 }
\ No newline at end of file
diff --git a/erpnext/portal/doctype/products_settings/test_products_settings.js b/erpnext/portal/doctype/products_settings/test_products_settings.js
new file mode 100644
index 0000000..b7049b3
--- /dev/null
+++ b/erpnext/portal/doctype/products_settings/test_products_settings.js
@@ -0,0 +1,23 @@
+/* eslint-disable */
+// rename this file from _test_[name] to test_[name] to activate
+// and remove above this line
+
+QUnit.test("test: Products Settings", function (assert) {
+	let done = assert.async();
+
+	// number of asserts
+	assert.expect(1);
+
+	frappe.run_serially([
+		// insert a new Products Settings
+		() => frappe.tests.make('Products Settings', [
+			// values to be set
+			{key: 'value'}
+		]),
+		() => {
+			assert.equal(cur_frm.doc.key, 'value');
+		},
+		() => done()
+	]);
+
+});
diff --git a/erpnext/portal/doctype/products_settings/test_products_settings.py b/erpnext/portal/doctype/products_settings/test_products_settings.py
new file mode 100644
index 0000000..d04a009
--- /dev/null
+++ b/erpnext/portal/doctype/products_settings/test_products_settings.py
@@ -0,0 +1,10 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2017, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+from __future__ import unicode_literals
+
+import frappe
+import unittest
+
+class TestProductsSettings(unittest.TestCase):
+	pass
diff --git a/erpnext/setup/doctype/item_group/item_group.py b/erpnext/setup/doctype/item_group/item_group.py
index a4c377e..364f21a 100644
--- a/erpnext/setup/doctype/item_group/item_group.py
+++ b/erpnext/setup/doctype/item_group/item_group.py
@@ -57,7 +57,7 @@
 
 	def get_context(self, context):
 		context.show_search=True
-		context.page_length = 6
+		context.page_length = cint(frappe.db.get_single_value('Products Settings', 'products_per_page')) or 6
 		context.search_link = '/product_search'
 
 		start = int(frappe.form_dict.start or 0)
@@ -81,24 +81,26 @@
 	child_groups = ", ".join(['"' + i[0] + '"' for i in get_child_groups(product_group)])
 
 	# base query
-	query = """select name, item_name, item_code, route, image, website_image, thumbnail, item_group,
-			description, web_long_description as website_description
-		from `tabItem`
-		where show_in_website = 1
-			and disabled=0
-			and (end_of_life is null or end_of_life='0000-00-00' or end_of_life > %(today)s)
-			and (variant_of = '' or variant_of is null)
-			and (item_group in ({child_groups})
-			or name in (select parent from `tabWebsite Item Group` where item_group in ({child_groups})))
+	query = """select I.name, I.item_name, I.item_code, I.route, I.image, I.website_image, I.thumbnail, I.item_group,
+			I.description, I.web_long_description as website_description,
+			case when (S.actual_qty - S.reserved_qty) > 0 then 1 else 0 end as in_stock
+		from `tabItem` I
+		left join tabBin S on I.item_code = S.item_code and I.website_warehouse = S.warehouse
+		where I.show_in_website = 1
+			and I.disabled = 0
+			and (I.end_of_life is null or I.end_of_life='0000-00-00' or I.end_of_life > %(today)s)
+			and (I.variant_of = '' or I.variant_of is null)
+			and (I.item_group in ({child_groups})
+			or I.name in (select parent from `tabWebsite Item Group` where item_group in ({child_groups})))
 			""".format(child_groups=child_groups)
 	# search term condition
 	if search:
-		query += """ and (web_long_description like %(search)s
-				or item_name like %(search)s
-				or name like %(search)s)"""
+		query += """ and (I.web_long_description like %(search)s
+				or I.item_name like %(search)s
+				or I.name like %(search)s)"""
 		search = "%" + cstr(search) + "%"
 
-	query += """order by weightage desc, item_name, modified desc limit %s, %s""" % (start, limit)
+	query += """order by I.weightage desc, in_stock desc, I.item_name limit %s, %s""" % (start, limit)
 
 	data = frappe.db.sql(query, {"product_group": product_group,"search": search, "today": nowdate()}, as_dict=1)
 
diff --git a/erpnext/templates/includes/products_as_grid.html b/erpnext/templates/includes/products_as_grid.html
index 7a15c1f..b2437d3 100644
--- a/erpnext/templates/includes/products_as_grid.html
+++ b/erpnext/templates/includes/products_as_grid.html
@@ -3,8 +3,13 @@
 <a class="product-link" href="{{ route|abs_url }}">
 	<div class="col-sm-4 col-xs-4 product-image-wrapper">
 		<div class="product-image-img">
-		{{ product_image_square(thumbnail or website_image) }}
-		<div class="product-text" itemprop="name">{{ item_name }}</div>
+			{{ product_image_square(thumbnail or website_image) }}
+			<div class="product-text" itemprop="name">{{ item_name }}</div>
+			{% if in_stock %}
+				<div style='color: green'> <i class='fa fa-check'></i> {{ _("In stock") }}</div>
+			{% else %}
+				<div style='color: red'> <i class='fa fa-close'></i> {{ _("Not in stock") }}</div>
+			{% endif %}
 		</div>
 	</div>
 </a>
diff --git a/erpnext/templates/pages/product_search.py b/erpnext/templates/pages/product_search.py
index 49f321d..a872f19 100644
--- a/erpnext/templates/pages/product_search.py
+++ b/erpnext/templates/pages/product_search.py
@@ -17,23 +17,25 @@
 	# limit = 12 because we show 12 items in the grid view
 
 	# base query
-	query = """select name, item_name, item_code, route, website_image, thumbnail, item_group,
-			description, web_long_description as website_description
-		from `tabItem`
-		where (show_in_website = 1 or show_variant_in_website = 1)
-			and disabled=0
-			and (end_of_life is null or end_of_life='0000-00-00' or end_of_life > %(today)s)"""
+	query = """select I.name, I.item_name, I.item_code, I.route, I.website_image, I.thumbnail, I.item_group,
+			I.description, I.web_long_description as website_description,
+			case when (S.actual_qty - S.reserved_qty) > 0 then 1 else 0 end as in_stock
+		from `tabItem` I
+		left join tabBin S on I.item_code = S.item_code and I.website_warehouse = S.warehouse
+		where (I.show_in_website = 1 or I.show_variant_in_website = 1)
+			and I.disabled = 0
+			and (I.end_of_life is null or I.end_of_life='0000-00-00' or I.end_of_life > %(today)s)"""
 
 	# search term condition
 	if search:
-		query += """ and (web_long_description like %(search)s
-				or description like %(search)s
-				or item_name like %(search)s
-				or name like %(search)s)"""
+		query += """ and (I.web_long_description like %(search)s
+				or I.description like %(search)s
+				or I.item_name like %(search)s
+				or I.name like %(search)s)"""
 		search = "%" + cstr(search) + "%"
 
 	# order by
-	query += """ order by weightage desc, idx desc, modified desc limit %s, %s""" % (cint(start), cint(limit))
+	query += """ order by I.weightage desc, in_stock desc, I.item_name limit %s, %s""" % (cint(start), cint(limit))
 
 	data = frappe.db.sql(query, {
 		"search": search,
diff --git a/erpnext/utilities/product.py b/erpnext/utilities/product.py
index 1ad8b6e..10366be 100644
--- a/erpnext/utilities/product.py
+++ b/erpnext/utilities/product.py
@@ -16,7 +16,7 @@
 		warehouse = frappe.db.get_value("Item", template_item_code, item_warehouse_field)
 
 	if warehouse:
-		stock_qty = frappe.db.sql("""select actual_qty from tabBin where
+		stock_qty = frappe.db.sql("""select GREATEST(actual_qty - reserved_qty, 0) from tabBin where
 			item_code=%s and warehouse=%s""", (item_code, warehouse))
 		if stock_qty:
 			in_stock = stock_qty[0][0] > 0 and 1 or 0