diff --git a/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs
new file mode 100644
index 0000000..c6e67f0
--- /dev/null
+++ b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs
@@ -0,0 +1,24 @@
+using Godot;
+using SharpIDE.Application.Features.SolutionDiscovery;
+
+namespace SharpIDE.Godot.Features.SolutionExplorer.ContextMenus.Dialogs;
+
+public partial class NewDirectoryDialog : ConfirmationDialog
+{
+    private LineEdit _nameLineEdit = null!;
+    
+    public SharpIdeFolder ParentFolder { get; set; } = null!;
+
+    public override void _Ready()
+    {
+        _nameLineEdit = GetNode<LineEdit>("%DirectoryNameLineEdit");
+        _nameLineEdit.GrabFocus();
+        _nameLineEdit.SelectAll();
+        Confirmed += OnConfirmed;
+    }
+
+    private void OnConfirmed()
+    {
+        var directoryName = _nameLineEdit.Text.Trim();
+    }
+}
\ No newline at end of file
diff --git a/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs.uid b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs.uid
new file mode 100644
index 0000000..1d23b15
--- /dev/null
+++ b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs.uid
@@ -0,0 +1 @@
+uid://dj57wbvqjp34r
diff --git a/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.tscn b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.tscn
new file mode 100644
index 0000000..d4829c8
--- /dev/null
+++ b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.tscn
@@ -0,0 +1,25 @@
+[gd_scene load_steps=2 format=3 uid="uid://bgi4u18y8pt4x"]
+
+[ext_resource type="Script" uid="uid://dj57wbvqjp34r" path="res://Features/SolutionExplorer/ContextMenus/Dialogs/NewDirectoryDialog.cs" id="1_4utum"]
+
+[node name="NewDirectoryDialog" type="ConfirmationDialog"]
+oversampling_override = 1.0
+title = "Create: Directory"
+size = Vector2i(405, 115)
+visible = true
+script = ExtResource("1_4utum")
+
+[node name="VBoxContainer" type="VBoxContainer" parent="."]
+offset_left = 8.0
+offset_top = 8.0
+offset_right = 397.0
+offset_bottom = 66.0
+
+[node name="Label" type="Label" parent="VBoxContainer"]
+layout_mode = 2
+text = "Enter name:"
+
+[node name="DirectoryNameLineEdit" type="LineEdit" parent="VBoxContainer"]
+unique_name_in_owner = true
+layout_mode = 2
+text = "NewDirectory1"
diff --git a/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/FolderContextMenu.cs b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/FolderContextMenu.cs
index db4b674..81465d1 100644
--- a/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/FolderContextMenu.cs
+++ b/src/SharpIDE.Godot/Features/SolutionExplorer/ContextMenus/FolderContextMenu.cs
@@ -1,5 +1,6 @@
 using Godot;
 using SharpIDE.Application.Features.SolutionDiscovery;
+using SharpIDE.Godot.Features.SolutionExplorer.ContextMenus.Dialogs;
 
 namespace SharpIDE.Godot.Features.SolutionExplorer;
 
@@ -26,7 +27,7 @@ public partial class SolutionExplorerPanel
         menu.AddSubmenuNodeItem("Add", createNewSubmenu, (int)FolderContextMenuOptions.CreateNew);
         createNewSubmenu.AddItem("Directory", (int)CreateNewSubmenuOptions.Directory);
         createNewSubmenu.AddItem("C# File", (int)CreateNewSubmenuOptions.CSharpFile);
-        createNewSubmenu.IdPressed += OnCreateNewSubmenuPressed;
+        createNewSubmenu.IdPressed += id => OnCreateNewSubmenuPressed(id, folder);
         
         menu.AddItem("Reveal in File Explorer", (int)FolderContextMenuOptions.RevealInFileExplorer);
         menu.PopupHide += () => menu.QueueFree();
@@ -44,12 +45,16 @@ public partial class SolutionExplorerPanel
         menu.Popup();
     }
 
-    private void OnCreateNewSubmenuPressed(long id)
+    private readonly PackedScene _newDirectoryDialogScene = GD.Load<PackedScene>("uid://bgi4u18y8pt4x");
+    private void OnCreateNewSubmenuPressed(long id, SharpIdeFolder folder)
     {
         var actionId = (CreateNewSubmenuOptions)id;
         if (actionId is CreateNewSubmenuOptions.Directory)
         {
-            //OpenCreateNewFolderDialog(folder);
+            var newDirectoryDialog = _newDirectoryDialogScene.Instantiate<NewDirectoryDialog>();
+            newDirectoryDialog.ParentFolder = folder;
+            AddChild(newDirectoryDialog);
+            newDirectoryDialog.PopupCentered();
         }
         else if (actionId is CreateNewSubmenuOptions.CSharpFile)
         {