diff --git a/src/app/files/file-explorer.js b/src/app/files/file-explorer.js
index b46dc6a439..c172d0e421 100644
--- a/src/app/files/file-explorer.js
+++ b/src/app/files/file-explorer.js
@@ -158,7 +158,6 @@ function fileExplorer (localRegistry, files, menuItems) {
       var isFile = false
       Object.keys(value).filter(function keep (x) {
         if (x === '/content') isFile = true
-        // if (x === '/readOnly') isReadOnly = true
         if (x[0] !== '/') return true
       }).forEach(function (x) { newValue[x] = value[x] })
       return {
@@ -208,17 +207,35 @@ function fileExplorer (localRegistry, files, menuItems) {
     MENU_HANDLE && MENU_HANDLE.hide(null, true)
     let actions = {}
     const provider = self._deps.fileManager.fileProviderOf(key)
+    actions['Create File'] = () => self.createNewFile(key)
+    actions['Create Folder'] = () => self.createNewFolder(key)
     if (provider.isExternalFolder(key)) {
       actions['Discard changes'] = () => {
         modalDialogCustom.confirm(
           'Discard changes',
           'Are you sure you want to discard all your changes?',
-          () => { files.discardChanges(key) },
+          () => { self.files.discardChanges(key) },
           () => {}
         )
       }
     } else {
       const folderPath = extractExternalFolder(key)
+      actions['Rename'] = () => {
+        if (self.files.isReadOnly(key)) { return tooltip('cannot rename folder. ' + self.files.type + ' is a read only explorer') }
+        var name = label.querySelector('span[data-path="' + key + '"]')
+        if (name) editModeOn(name)
+      }
+      actions['Delete'] = () => {
+        if (self.files.isReadOnly(key)) { return tooltip('cannot delete folder. ' + self.files.type + ' is a read only explorer') }
+        modalDialogCustom.confirm('Confirm to delete a folder', 'Are you sure you want to delete this folder?',
+          () => {
+            if (!files.remove(key)) {
+              tooltip(`failed to remove ${key}. Make sure the directory is empty before removing it.`)
+            } else {
+              self.updatePath('browser')
+            }
+          }, () => {})
+      }
       if (folderPath === 'browser/gists') {
         actions['Push changes to gist'] = () => {
           const id = key.substr(key.lastIndexOf('/') + 1, key.length - 1)
@@ -230,21 +247,6 @@ function fileExplorer (localRegistry, files, menuItems) {
           )
         }
       }
-      actions['Create File'] = () => self.createNewFile(key)
-      actions['Create Folder'] = () => self.createNewFolder(key)
-
-      actions['Rename'] = () => {
-        if (self.files.isReadOnly(key)) { return tooltip('cannot rename folder. ' + self.files.type + ' is a read only explorer') }
-        var name = label.querySelector('span[data-path="' + key + '"]')
-        if (name) editModeOn(name)
-      }
-    }
-    actions['Delete'] = () => {
-      if (self.files.isReadOnly(key)) { return tooltip('cannot delete folder. ' + self.files.type + ' is a read only explorer') }
-      modalDialogCustom.confirm('Confirm to delete a folder', 'Are you sure you want to delete this folder?',
-        () => {
-          if (!files.remove(key)) tooltip(`failed to remove ${key}. Make sure the directory is empty before removing it.`)
-        }, () => {})
     }
     MENU_HANDLE = contextMenu(event, actions)
   })
@@ -265,7 +267,10 @@ function fileExplorer (localRegistry, files, menuItems) {
         if (self.files.isReadOnly(key)) { return tooltip('cannot delete file. ' + self.files.type + ' is a read only explorer') }
         modalDialogCustom.confirm(
           'Delete a file', 'Are you sure you want to delete this file?',
-          () => { files.remove(key) },
+          () => {
+            files.remove(key)
+            self.updatePath('browser')
+          },
           () => {}
         )
       }
@@ -579,16 +584,15 @@ fileExplorer.prototype.copyFiles = function () {
   }
 }
 
-fileExplorer.prototype.createNewFile = function (parentFolder) {
+fileExplorer.prototype.createNewFile = function (parentFolder = 'browser') {
   let self = this
   modalDialogCustom.prompt('Create new file', 'File Name (e.g Untitled.sol)', 'Untitled.sol', (input) => {
-    helper.createNonClashingName(input, self.files, (error, newName) => {
-      if (error) return modalDialogCustom.alert('Failed to create file ' + newName + ' ' + error)
-      const currentPath = !parentFolder ? self._deps.fileManager.currentPath() : parentFolder
-      newName = currentPath ? currentPath + '/' + newName : self.files.type + '/' + newName
+    if (!input) input = 'New file'
+    helper.createNonClashingName(parentFolder + '/' + input, self.files, (error, newName) => {
+      if (error) return tooltip('Failed to create file ' + newName + ' ' + error)
 
       if (!self.files.set(newName, '')) {
-        modalDialogCustom.alert('Failed to create file ' + newName)
+        tooltip('Failed to create file ' + newName)
       } else {
         self._deps.fileManager.switchFile(newName)
         if (newName.includes('_test.sol')) {
@@ -601,14 +605,23 @@ fileExplorer.prototype.createNewFile = function (parentFolder) {
 
 fileExplorer.prototype.createNewFolder = function (parentFolder) {
   let self = this
-  modalDialogCustom.prompt('Create new folder', '', '', (input) => {
+  modalDialogCustom.prompt('Create new folder', '', 'New folder', (input) => {
+    if (!input) {
+      return tooltip('Failed to create folder. The name can not be empty')
+    }
+
     const currentPath = !parentFolder ? self._deps.fileManager.currentPath() : parentFolder
     let newName = currentPath ? currentPath + '/' + input : self.files.type + '/' + input
 
     newName = newName + '/'
-    if (!self.files.set(newName, '')) {
-      modalDialogCustom.alert('Failed to create folder ' + newName)
-    }
+    self.files.exists(newName, (error, exist) => {
+      if (error) return tooltip('Unexpected error while creating folder: ' + error)
+      if (!exist) {
+        self.files.set(newName, '')
+      } else {
+        tooltip('Folder already exists.', () => {})
+      }
+    })
   }, null, true)
 }
 
diff --git a/src/app/files/fileProvider.js b/src/app/files/fileProvider.js
index 9d288f3223..ce1605c142 100644
--- a/src/app/files/fileProvider.js
+++ b/src/app/files/fileProvider.js
@@ -64,6 +64,8 @@ class FileProvider {
   }
 
   exists (path, cb) {
+    // todo check the type (directory/file) as well #2386
+    // currently it is not possible to have a file and folder with same path
     cb(null, this._exists(path))
   }
 
@@ -131,24 +133,43 @@ class FileProvider {
     return false
   }
 
+  /**
+   * Removes the folder recursively
+   * @param {*} path is the folder to be removed
+   */
   remove (path) {
-    var unprefixedpath = this.removePrefix(path)
-    if (!this._exists(unprefixedpath)) {
-      return false
-    }
-    const stat = window.remixFileSystem.statSync(unprefixedpath)
-    try {
-      if (stat.isDirectory()) {
-        window.remixFileSystem.rmdirSync(unprefixedpath, console.log)
-      } else {
-        window.remixFileSystem.unlinkSync(unprefixedpath, console.log)
+    path = this.removePrefix(path)
+    if (window.remixFileSystem.existsSync(path)) {
+      const stat = window.remixFileSystem.statSync(path)
+      try {
+        if (!stat.isDirectory()) {
+          window.remixFileSystem.unlinkSync(path, console.log)
+          this.event.trigger('fileRemoved', [this._normalizePath(path)])
+          return true
+        } else {
+          const items = window.remixFileSystem.readdirSync(path)
+          if (items.length !== 0) {
+            items.forEach((item, index) => {
+              const curPath = `${path}/${item}`
+              if (window.remixFileSystem.statSync(curPath).isDirectory()) { // delete folder
+                this.remove(curPath)
+              } else { // delete file
+                window.remixFileSystem.unlinkSync(curPath, console.log)
+                this.event.trigger('fileRemoved', [this._normalizePath(path)])
+              }
+            })
+            if (window.remixFileSystem.readdirSync(path).length === 0) window.remixFileSystem.rmdirSync(path, console.log)
+          } else {
+            // folder is empty
+            window.remixFileSystem.rmdirSync(path, console.log)
+          }
+        }
+      } catch (e) {
+        console.log(e)
+        return false
       }
-      this.event.trigger('fileRemoved', [this._normalizePath(unprefixedpath)])
-      return true
-    } catch (e) {
-      console.log(e)
-      return false
     }
+    return true
   }
 
   rename (oldPath, newPath, isFolder) {
diff --git a/src/app/panels/tab-proxy.js b/src/app/panels/tab-proxy.js
index 7240e05f16..47f2988553 100644
--- a/src/app/panels/tab-proxy.js
+++ b/src/app/panels/tab-proxy.js
@@ -132,7 +132,7 @@ export class TabProxy {
       id: name,
       title,
       icon,
-      tooltip: title
+      tooltip: name
     })
     this._handlers[name] = { switchTo, close }
   }
diff --git a/src/lib/helper.js b/src/lib/helper.js
index b72c3aa3a0..8628418f5e 100644
--- a/src/lib/helper.js
+++ b/src/lib/helper.js
@@ -12,6 +12,7 @@ module.exports = {
     return data.slice(0, 5) + '...' + data.slice(len - 5, len)
   },
   createNonClashingNameWithPrefix (name, fileProvider, prefix, cb) {
+    if (!name) name = 'Undefined'
     var counter = ''
     var ext = 'sol'
     var reg = /(.*)\.([^.]+)/g