diff --git a/src/app/files/file-explorer.js b/src/app/files/file-explorer.js
index b46dc6a439..4c7f0cb332 100644
--- a/src/app/files/file-explorer.js
+++ b/src/app/files/file-explorer.js
@@ -579,13 +579,11 @@ 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) => {
+    helper.createNonClashingName(parentFolder + '/' + 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 (!self.files.set(newName, '')) {
         modalDialogCustom.alert('Failed to create file ' + newName)
diff --git a/src/app/files/fileProvider.js b/src/app/files/fileProvider.js
index 9d288f3223..b7cfb2822e 100644
--- a/src/app/files/fileProvider.js
+++ b/src/app/files/fileProvider.js
@@ -131,23 +131,28 @@ 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)
-      }
-      this.event.trigger('fileRemoved', [this._normalizePath(unprefixedpath)])
-      return true
-    } catch (e) {
-      console.log(e)
-      return false
+    path = this.removePrefix(path)
+    if (window.remixFileSystem.existsSync(path)) {
+      window.remixFileSystem.readdirSync(path).forEach((file, index) => {
+        let curPath = path + '/' + file
+        let stat = window.remixFileSystem.statSync(curPath)
+        try {
+          if (stat.isDirectory()) {
+            this.remove(curPath)
+            window.remixFileSystem.rmdirSync(curPath, console.log)
+          } else { // delete file
+            window.remixFileSystem.unlinkSync(curPath, console.log)
+          }
+        } catch (e) {
+          console.log(e)
+          return false
+        }
+      })
     }
   }
 
diff --git a/src/lib/helper.js b/src/lib/helper.js
index b72c3aa3a0..e2d12e83ed 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