diff --git a/packages/scm/src/browser/scm-frontend-module.ts b/packages/scm/src/browser/scm-frontend-module.ts
index a0f5ebd31e2fd..51b9e67b62280 100644
--- a/packages/scm/src/browser/scm-frontend-module.ts
+++ b/packages/scm/src/browser/scm-frontend-module.ts
@@ -44,6 +44,7 @@ import { ScmTreeLabelProvider } from './scm-tree-label-provider';
 import { TabBarToolbarContribution } from '@theia/core/lib/browser/shell/tab-bar-toolbar';
 import { ColorContribution } from '@theia/core/lib/browser/color-application-contribution';
 import { LabelProviderContribution } from '@theia/core/lib/browser/label-provider';
+import { bindScmPreferences } from './scm-preferences';
 
 export default new ContainerModule(bind => {
     bind(ScmContextKeyService).toSelf().inSingletonScope();
@@ -115,6 +116,8 @@ export default new ContainerModule(bind => {
 
     bind(ScmTreeLabelProvider).toSelf().inSingletonScope();
     bind(LabelProviderContribution).toService(ScmTreeLabelProvider);
+
+    bindScmPreferences(bind);
 });
 
 export function createFileChangeTreeContainer(parent: interfaces.Container): Container {
diff --git a/packages/scm/src/browser/scm-preferences.ts b/packages/scm/src/browser/scm-preferences.ts
new file mode 100644
index 0000000000000..14c46cad5b9e8
--- /dev/null
+++ b/packages/scm/src/browser/scm-preferences.ts
@@ -0,0 +1,61 @@
+/********************************************************************************
+ * Copyright (C) 2020 Ericsson and others.
+ *
+ * This program and the accompanying materials are made available under the
+ * terms of the Eclipse Public License v. 2.0 which is available at
+ * http://www.eclipse.org/legal/epl-2.0.
+ *
+ * This Source Code may also be made available under the following Secondary
+ * Licenses when the conditions for such availability set forth in the Eclipse
+ * Public License v. 2.0 are satisfied: GNU General Public License, version 2
+ * with the GNU Classpath Exception which is available at
+ * https://www.gnu.org/software/classpath/license.html.
+ *
+ * SPDX-License-Identifier: EPL-2.0 OR GPL-2.0 WITH Classpath-exception-2.0
+ ********************************************************************************/
+
+import { interfaces } from 'inversify';
+import {
+    createPreferenceProxy,
+    PreferenceProxy,
+    PreferenceService,
+    PreferenceSchema,
+    PreferenceContribution
+} from '@theia/core/lib/browser/preferences';
+
+export const scmPreferenceSchema: PreferenceSchema = {
+    type: 'object',
+    properties: {
+        'scm.defaultViewMode': {
+            type: 'string',
+            enum: ['tree', 'list'],
+            enumDescriptions: [
+                'Show the repository changes as a tree.',
+                'Show the repository changes as a list.'
+            ],
+            description: 'Controls the default source control view mode.',
+            default: 'list'
+        }
+    }
+};
+
+export interface ScmConfiguration {
+    'scm.defaultViewMode': 'tree' | 'list'
+}
+
+export const ScmPreferences = Symbol('ScmPreferences');
+export type ScmPreferences = PreferenceProxy<ScmConfiguration>;
+
+export function createScmPreferences(preferences: PreferenceService): ScmPreferences {
+    return createPreferenceProxy(preferences, scmPreferenceSchema);
+}
+
+export function bindScmPreferences(bind: interfaces.Bind): void {
+    bind(ScmPreferences).toDynamicValue((ctx: interfaces.Context) => {
+        const preferences = ctx.container.get<PreferenceService>(PreferenceService);
+        return createScmPreferences(preferences);
+    }).inSingletonScope();
+
+    bind(PreferenceContribution).toConstantValue({ schema: scmPreferenceSchema });
+}
+
diff --git a/packages/scm/src/browser/scm-widget.tsx b/packages/scm/src/browser/scm-widget.tsx
index 282145d66e84b..507f14a666cfb 100644
--- a/packages/scm/src/browser/scm-widget.tsx
+++ b/packages/scm/src/browser/scm-widget.tsx
@@ -20,12 +20,14 @@ import { Message } from '@phosphor/messaging';
 import { injectable, inject, postConstruct } from 'inversify';
 import { DisposableCollection } from '@theia/core/lib/common/disposable';
 import {
-    BaseWidget, Widget, StatefulWidget, Panel, PanelLayout, MessageLoop} from '@theia/core/lib/browser';
+    BaseWidget, Widget, StatefulWidget, Panel, PanelLayout, MessageLoop, PreferenceChangeEvent
+} from '@theia/core/lib/browser';
 import { ScmCommitWidget } from './scm-commit-widget';
 import { ScmAmendWidget } from './scm-amend-widget';
 import { ScmNoRepositoryWidget } from './scm-no-repository-widget';
 import { ScmService } from './scm-service';
 import { ScmTreeWidget } from './scm-tree-widget';
+import { ScmPreferences, ScmConfiguration } from './scm-preferences';
 
 @injectable()
 export class ScmWidget extends BaseWidget implements StatefulWidget {
@@ -39,6 +41,7 @@ export class ScmWidget extends BaseWidget implements StatefulWidget {
     @inject(ScmTreeWidget) protected readonly resourceWidget: ScmTreeWidget;
     @inject(ScmAmendWidget) protected readonly amendWidget: ScmAmendWidget;
     @inject(ScmNoRepositoryWidget) protected readonly noRepositoryWidget: ScmNoRepositoryWidget;
+    @inject(ScmPreferences) protected readonly scmPreferences: ScmPreferences;
 
     set viewMode(mode: 'tree' | 'flat') {
         this.resourceWidget.viewMode = mode;
@@ -60,7 +63,7 @@ export class ScmWidget extends BaseWidget implements StatefulWidget {
         const layout = new PanelLayout();
         this.layout = layout;
         this.panel = new Panel({
-            layout: new PanelLayout ({
+            layout: new PanelLayout({
             })
         });
         this.panel.node.tabIndex = -1;
@@ -74,12 +77,27 @@ export class ScmWidget extends BaseWidget implements StatefulWidget {
 
         this.refresh();
         this.toDispose.push(this.scmService.onDidChangeSelectedRepository(() => this.refresh()));
+        this.updateViewMode(this.scmPreferences.get('scm.defaultViewMode'));
+        this.toDispose.push(this.scmPreferences.onPreferenceChanged((e: PreferenceChangeEvent<ScmConfiguration>) => {
+            if (e.preferenceName === 'scm.defaultViewMode') {
+                this.updateViewMode(e.newValue!);
+            }
+        }));
+
     }
 
     get containerLayout(): PanelLayout {
         return this.panel.layout as PanelLayout;
     }
 
+    /**
+     * Updates the view mode based on the preference value.
+     * @param preference the view mode preference.
+     */
+    protected updateViewMode(preference: 'tree' | 'list'): void {
+        this.viewMode = preference === 'tree' ? 'tree' : 'flat';
+    }
+
     protected readonly toDisposeOnRefresh = new DisposableCollection();
     protected refresh(): void {
         this.toDisposeOnRefresh.dispose();