diff --git a/res/menu/directory_chooser.xml b/res/menu/directory_chooser.xml
index 04711407d..f97bb4cb8 100644
--- a/res/menu/directory_chooser.xml
+++ b/res/menu/directory_chooser.xml
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="utf-8"?>
 <menu xmlns:android="http://schemas.android.com/apk/res/android" >
-    <item android:id="@+id/new_folder_item" android:title="@string/new_folder_label" android:showAsAction="ifRoom|withText"></item>
+    <item android:id="@+id/new_folder_item" android:title="@string/create_folder_label" android:showAsAction="ifRoom|withText"></item>
     
 
 </menu>
\ No newline at end of file
diff --git a/res/values/strings.xml b/res/values/strings.xml
index 743bf5760..a51e40910 100644
--- a/res/values/strings.xml
+++ b/res/values/strings.xml
@@ -217,7 +217,11 @@
     
     <!-- Directory chooser -->
 	<string name="selected_folder_label">Selected folder:</string>
-	<string name="new_folder_label">New folder</string>
 	<string name="create_folder_label">Create folder</string>
 	<string name="choose_data_directory">Choose data folder</string>
+	<string name="create_folder_msg">Create new folder with name "%1$s"?</string>
+	<string name="create_folder_success">Created new folder</string>
+	<string name="create_folder_error_no_write_access">Cannot write to this folder</string>
+	<string name="create_folder_error_already_exists">Folder already exists</string>
+	<string name="create_folder_error">Could not create folder</string>
 </resources>
diff --git a/src/de/danoeh/antennapod/activity/DirectoryChooserActivity.java b/src/de/danoeh/antennapod/activity/DirectoryChooserActivity.java
index 236d20b51..1bbdad3d2 100644
--- a/src/de/danoeh/antennapod/activity/DirectoryChooserActivity.java
+++ b/src/de/danoeh/antennapod/activity/DirectoryChooserActivity.java
@@ -5,6 +5,9 @@ import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.Collections;
 
+import android.app.AlertDialog;
+import android.app.AlertDialog.Builder;
+import android.content.DialogInterface;
 import android.os.Bundle;
 import android.os.Environment;
 import android.os.FileObserver;
@@ -19,6 +22,7 @@ import android.widget.ImageButton;
 import android.widget.ListView;
 import android.widget.SlidingDrawer;
 import android.widget.TextView;
+import android.widget.Toast;
 
 import com.actionbarsherlock.app.SherlockActivity;
 import com.actionbarsherlock.view.Menu;
@@ -33,6 +37,8 @@ import de.danoeh.antennapod.R;
 public class DirectoryChooserActivity extends SherlockActivity {
 	private static final String TAG = "DirectoryChooserActivity";
 
+	private static final String CREATE_DIRECTORY_NAME = "AntennaPod";
+
 	private Button butConfirm;
 	private Button butCancel;
 	private ImageButton butNavUp;
@@ -215,7 +221,51 @@ public class DirectoryChooserActivity extends SherlockActivity {
 	}
 
 	private void openNewFolderDialog() {
-		
+		AlertDialog.Builder builder = new AlertDialog.Builder(this);
+		builder.setTitle(R.string.create_folder_label);
+		builder.setMessage(String.format(getString(R.string.create_folder_msg),
+				CREATE_DIRECTORY_NAME));
+		builder.setNegativeButton(R.string.cancel_label,
+				new DialogInterface.OnClickListener() {
+
+					@Override
+					public void onClick(DialogInterface dialog, int which) {
+						dialog.dismiss();
+					}
+				});
+		builder.setPositiveButton(R.string.confirm_label,
+				new DialogInterface.OnClickListener() {
+
+					@Override
+					public void onClick(DialogInterface dialog, int which) {
+						dialog.dismiss();
+						int msg = createFolder();
+						Toast t = Toast.makeText(DirectoryChooserActivity.this,
+								msg, Toast.LENGTH_SHORT);
+						t.show();
+					}
+				});
+		builder.create().show();
+	}
+
+	private int createFolder() {
+		if (selectedDir != null && selectedDir.canWrite()) {
+			File newDir = new File(selectedDir, CREATE_DIRECTORY_NAME);
+			if (!newDir.exists()) {
+				boolean result = newDir.mkdir();
+				if (result) {
+					return R.string.create_folder_success;
+				} else {
+					return R.string.create_folder_error;
+				}
+			} else {
+				return R.string.create_folder_error_already_exists;
+			}
+		} else if (selectedDir.canWrite() == false) {
+			return R.string.create_folder_error_no_write_access;
+		} else {
+			return R.string.create_folder_error;
+		}
 	}
 
 }