diff --git a/scriptmodules/emulators/retroarch.sh b/scriptmodules/emulators/retroarch.sh
index 8ea599ad12..aa5ac14758 100644
--- a/scriptmodules/emulators/retroarch.sh
+++ b/scriptmodules/emulators/retroarch.sh
@@ -12,7 +12,7 @@
 rp_module_id="retroarch"
 rp_module_desc="RetroArch - frontend to the libretro emulator cores - required by all lr-* emulators"
 rp_module_licence="GPL3 https://raw.githubusercontent.com/libretro/RetroArch/master/COPYING"
-rp_module_repo="git https://github.com/retropie/RetroArch.git retropie-v1.16.0"
+rp_module_repo="git https://github.com/retropie/RetroArch.git retropie-v1.18.0"
 rp_module_section="core"
 
 function depends_retroarch() {
@@ -71,9 +71,6 @@ function build_retroarch() {
 
 function install_retroarch() {
     make install
-    md_ret_files=(
-        'retroarch.cfg'
-    )
 }
 
 function update_shaders_retroarch() {
@@ -282,6 +279,13 @@ function configure_retroarch() {
     # enable video shaders
     iniSet "video_shader_enable" "true"
 
+    # enable overlays by default
+    iniSet "input_overlay_enable" "true"
+
+    # disable save paths under sub-folders
+    iniSet "sort_savestates_enable" "false"
+    iniSet "sort_savefiles_enable" "false"
+
     copyDefaultConfig "$config" "$configdir/all/retroarch.cfg"
     rm "$config"
 
@@ -313,6 +317,13 @@ function configure_retroarch() {
     # don't save input remaps by default
     _set_config_option_retroarch "remap_save_on_exit" "false"
 
+    # enable overlays by default on upgrades
+    _set_config_option_retroarch "input_overlay_enable" "true"
+
+    # don't sort save files in sub-folders
+    _set_config_option_retroarch "sort_savefiles_enable" "false"
+    _set_config_option_retroarch "sort_savestates_enable" "false"
+
     # remapping hack for old 8bitdo firmware
     addAutoConf "8bitdo_hack" 0
 }
@@ -338,7 +349,7 @@ function keyboard_retroarch() {
         local value
         local values
         readarray -t values <<<"$choice"
-        iniConfig " = " "" "$configdir/all/retroarch.cfg"
+        iniConfig " = " '"' "$configdir/all/retroarch.cfg"
         i=0
         for value in "${values[@]}"; do
             iniSet "${key[$i]}" "$value" >/dev/null
@@ -438,7 +449,7 @@ function _set_config_option_retroarch()
 {
     local option="$1"
     local value="$2"
-    iniConfig " = " "\"" "$configdir/all/retroarch.cfg"
+    iniConfig " = " '"' "$configdir/all/retroarch.cfg"
     iniGet "$option"
     if [[ -z "$ini_value" ]]; then
         iniSet "$option" "$value"