diff --git a/apps/remix-ide-e2e/src/tests/workspace.test.ts b/apps/remix-ide-e2e/src/tests/workspace.test.ts
index 15b435c890..3235b8594e 100644
--- a/apps/remix-ide-e2e/src/tests/workspace.test.ts
+++ b/apps/remix-ide-e2e/src/tests/workspace.test.ts
@@ -47,7 +47,7 @@ module.exports = {
       .execute(function () { document.querySelector('*[data-id="modalDialogCustomPromptTextCreate"]')['value'] = 'workspace_name_1' })
       .click('*[data-id="workspacesModalDialogModalDialogModalFooter-react"] .modal-ok')
       .waitForElementVisible('*[data-id="treeViewLitreeViewItemtests"]')
-      .waitForElementNotPresent('*[data-id="treeViewLitreeViewItemtest.sol"]')
+      .waitForElementNotPresent('*[data-id="treeViewLitreeViewItemtest.sol"]', 60000)
       .click('*[data-id="workspacesSelect"] option[value="workspace_name"]')
       .waitForElementVisible('*[data-id="treeViewLitreeViewItemtests"]')
   },
diff --git a/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx b/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
index 95cb36597d..00c7254b38 100644
--- a/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
+++ b/libs/remix-ui/workspace/src/lib/remix-ui-workspace.tsx
@@ -119,6 +119,7 @@ export const Workspace = (props: WorkspaceProps) => {
 
   const createNewWorkspace = async (workspaceName) => {
     try {
+      await props.fileManager.closeAllFiles()
       await props.createWorkspace(workspaceName)
       await setWorkspace(workspaceName)
       toast('New default workspace has been created.')
@@ -127,6 +128,7 @@ export const Workspace = (props: WorkspaceProps) => {
       console.error(e)
     }
   }
+
   const [state, setState] = useState({
     workspaces: [],
     reset: false,
@@ -224,6 +226,7 @@ export const Workspace = (props: WorkspaceProps) => {
     const workspaceName = workspaceCreateInput.current.value
 
     try {
+      await props.fileManager.closeAllFiles()
       await props.createWorkspace(workspaceName)
       await setWorkspace(workspaceName)
     } catch (e) {