diff --git a/arduino-ide-extension/src/browser/theia/workspace/workspace-commands.ts b/arduino-ide-extension/src/browser/theia/workspace/workspace-commands.ts
index ed960356..f4a608bc 100644
--- a/arduino-ide-extension/src/browser/theia/workspace/workspace-commands.ts
+++ b/arduino-ide-extension/src/browser/theia/workspace/workspace-commands.ts
@@ -58,6 +58,13 @@ export class WorkspaceCommandContribution extends TheiaWorkspaceCommandContribut
         execute: (uri) => this.newFile(uri),
       })
     );
+    registry.unregisterCommand(WorkspaceCommands.NEW_FOLDER);
+    registry.registerCommand(
+      WorkspaceCommands.NEW_FOLDER,
+      this.newWorkspaceRootUriAwareCommandHandler({
+        execute: (uri) => this.newFolder(uri),
+      })
+    );
     registry.unregisterCommand(WorkspaceCommands.FILE_RENAME);
     registry.registerCommand(
       WorkspaceCommands.FILE_RENAME,
@@ -72,6 +79,37 @@ export class WorkspaceCommandContribution extends TheiaWorkspaceCommandContribut
     );
   }
 
+  private async newFolder(uri: URI | undefined): Promise<void> {
+    if (!uri) {
+      return;
+    }
+
+    const parent = await this.getDirectory(uri);
+    if (!parent) {
+      return;
+    }
+
+    const dialog = new WorkspaceInputDialog(
+      {
+        title: nls.localizeByDefault('New Folder...'),
+        parentUri: uri,
+        placeholder: nls.localize(
+          'theia/workspace/newFolderPlaceholder',
+          'Folder Name'
+        ),
+        validate: (name) => this.validateFileName(name, parent, true),
+      },
+      this.labelProvider
+    );
+    const name = await this.openDialog(dialog, uri);
+    if (!name) {
+      return;
+    }
+    const folderUri = uri.resolve(name);
+    await this.fileService.createFolder(folderUri);
+    this.fireCreateNewFile({ parent: uri, uri: folderUri });
+  }
+
   private async newFile(uri: URI | undefined): Promise<void> {
     if (!uri) {
       return;
diff --git a/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-commands.ts b/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-commands.ts
index c8935d66..625cf6fd 100644
--- a/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-commands.ts
+++ b/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-commands.ts
@@ -25,6 +25,14 @@ export namespace SketchbookCommands {
     'arduino/sketch/openFolder'
   );
 
+  export const NEW_FOLDER = Command.toLocalizedCommand(
+    {
+      id: 'arduino-sketchbook--new-folder',
+      label: 'New Folder',
+    },
+    'arduino/sketch/newFolder'
+  );
+
   export const OPEN_SKETCHBOOK_CONTEXT_MENU: Command = {
     id: 'arduino-sketchbook--open-sketch-context-menu',
     iconClass: 'sketchbook-tree__opts',
diff --git a/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-widget-contribution.ts b/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-widget-contribution.ts
index e73bb7e2..0c368f7e 100644
--- a/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-widget-contribution.ts
+++ b/arduino-ide-extension/src/browser/widgets/sketchbook/sketchbook-widget-contribution.ts
@@ -28,7 +28,10 @@ import {
 } from '../../sketches-service-client-impl';
 import { FileService } from '@theia/filesystem/lib/browser/file-service';
 import { URI } from '../../contributions/contribution';
-import { WorkspaceInput } from '@theia/workspace/lib/browser';
+import {
+  WorkspaceCommands,
+  WorkspaceInput,
+} from '@theia/workspace/lib/browser';
 
 export const SKETCHBOOK__CONTEXT = ['arduino-sketchbook--context'];
 
@@ -130,6 +133,21 @@ export class SketchbookWidgetContribution
         !!arg && 'node' in arg && SketchbookTree.SketchDirNode.is(arg.node),
     });
 
+    registry.registerCommand(SketchbookCommands.NEW_FOLDER, {
+      execute: async (arg) => {
+        if (arg.node.uri) {
+          return registry.executeCommand(
+            WorkspaceCommands.NEW_FOLDER.id,
+            arg.node.uri
+          );
+        }
+      },
+      isEnabled: (arg) =>
+        !!arg && 'node' in arg && SketchbookTree.SketchDirNode.is(arg.node),
+      isVisible: (arg) =>
+        !!arg && 'node' in arg && SketchbookTree.SketchDirNode.is(arg.node),
+    });
+
     registry.registerCommand(SketchbookCommands.OPEN_SKETCHBOOK_CONTEXT_MENU, {
       isEnabled: (arg) =>
         !!arg && 'node' in arg && SketchbookTree.SketchDirNode.is(arg.node),
@@ -206,6 +224,12 @@ export class SketchbookWidgetContribution
       label: SketchbookCommands.REVEAL_IN_FINDER.label,
       order: '0',
     });
+
+    registry.registerMenuAction(SKETCHBOOK__CONTEXT__MAIN_GROUP, {
+      commandId: SketchbookCommands.NEW_FOLDER.id,
+      label: SketchbookCommands.NEW_FOLDER.label,
+      order: '1',
+    });
   }
 
   private openNewWindow(