diff --git a/frontend/src/app/core/state/storage-files/storage-files.service.ts b/frontend/src/app/core/state/storage-files/storage-files.service.ts
index 5a7d9e9bcb42..b621427704e4 100644
--- a/frontend/src/app/core/state/storage-files/storage-files.service.ts
+++ b/frontend/src/app/core/state/storage-files/storage-files.service.ts
@@ -79,6 +79,10 @@ export class StorageFilesResourceService {
     return this.httpClient.request<IUploadLink>(link.method, link.href, { body: link.payload });
   }
 
+  createFolder(href:string, body:{ name:string, parent_id:ID }):Observable<IStorageFile> {
+    return this.httpClient.post<IStorageFile>(href, body);
+  }
+
   reset():void {
     this.store.reset();
   }
diff --git a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
index 893be4759a44..f6e263e38afd 100644
--- a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
+++ b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.html
@@ -72,6 +72,16 @@
   </div>
 
   <div class="spot-action-bar">
+    <div class="spot-action-bar--left">
+      <button
+        type="button"
+        class="button spot-action-bar--action"
+        (click)="createAndNavigateToFolder()"
+      >
+        <span class="spot-icon spot-icon_folder-add op-files-tab--icon op-files-tab--icon_forums"></span>
+        <span [textContent]="text.buttons.newFolder"></span>
+      </button>
+    </div>
     <div class="spot-action-bar--right">
       <button
         type="button"
diff --git a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
index 6ecfecf518ca..2e9ca084c8c3 100644
--- a/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
+++ b/frontend/src/app/shared/components/storages/location-picker-modal/location-picker-modal.component.ts
@@ -74,6 +74,7 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
       submitEmptySelection: this.i18n.t('js.storages.file_links.selection_none'),
       cancel: this.i18n.t('js.button_cancel'),
       selectAll: this.i18n.t('js.storages.file_links.select_all'),
+      newFolder: this.i18n.t('js.storages.new_folder'),
     },
     tooltip: {
       directory_not_writeable: this.i18n.t('js.storages.files.directory_not_writeable'),
@@ -170,4 +171,20 @@ export class LocationPickerModalComponent extends FilePickerBaseModalComponent {
 
     return this.text.tooltip.file_not_selectable;
   }
+
+  public createAndNavigateToFolder() {
+    // eslint-disable-next-line
+    const value = window.prompt(this.text.buttons.newFolder);
+    if (!value) { return; }
+
+    this.storageFilesResourceService.createFolder(
+      `${this.storage._links.self.href}/folders`,
+      {
+        name: value,
+        parent_id: this.currentDirectory.id,
+      },
+    ).subscribe((newlyCreatedDirectory) => {
+      this.changeLevel(newlyCreatedDirectory);
+    });
+  }
 }
diff --git a/frontend/src/app/shared/components/storages/storage/storage.component.ts b/frontend/src/app/shared/components/storages/storage/storage.component.ts
index 9877227ab475..1f133e75b40e 100644
--- a/frontend/src/app/shared/components/storages/storage/storage.component.ts
+++ b/frontend/src/app/shared/components/storages/storage/storage.component.ts
@@ -357,6 +357,7 @@ export class StorageComponent extends UntilDestroyedMixin implements OnInit, OnD
     const locals = {
       projectFolderHref: this.projectStorage._links.projectFolder?.href,
       projectFolderMode: this.projectStorage.projectFolderMode,
+      createFolderHref: `${this.projectStorage._links.storage.href}/folders`,
       storage,
     };
 
diff --git a/modules/storages/config/locales/js-en.yml b/modules/storages/config/locales/js-en.yml
index ac9733c3f2d6..ff5c94d3fc69 100644
--- a/modules/storages/config/locales/js-en.yml
+++ b/modules/storages/config/locales/js-en.yml
@@ -13,6 +13,7 @@ en:
       open_storage: "Open %{storageType}"
       select_location: "Select location"
       choose_location: "Choose location"
+      new_folder: "New folder"
 
       types:
         nextcloud: "Nextcloud"