diff --git a/ChangeLog b/ChangeLog
index 7cfa99b..6631679 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,7 @@
+2015-07-17 ajwillia.ms (Andy Williams)
+
+	* Create new files in the selected directory rather than project root
+
 2015-06-07 ajwillia.ms (Andy Williams)
 
 	* Indent newlines to match whitespace in the previous line
diff --git a/src/bin/edi_filepanel.c b/src/bin/edi_filepanel.c
index 2660d1e..278c71d 100644
--- a/src/bin/edi_filepanel.c
+++ b/src/bin/edi_filepanel.c
@@ -440,3 +440,13 @@ edi_filepanel_add(Evas_Object *parent, Evas_Object *win,
 
    elm_box_pack_end(parent, list);
 }
+
+const char *
+edi_filepanel_selected_path_get(Evas_Object *obj EINA_UNUSED)
+{
+   Elm_Object_Item *it;
+
+   it = elm_genlist_selected_item_get(list);
+   return elm_object_item_data_get(it);
+}
+
diff --git a/src/bin/edi_filepanel.h b/src/bin/edi_filepanel.h
index 187a7b1..05d5969 100644
--- a/src/bin/edi_filepanel.h
+++ b/src/bin/edi_filepanel.h
@@ -39,6 +39,8 @@ typedef void (*edi_filepanel_item_clicked_cb)(const char *path,
 void edi_filepanel_add(Evas_Object *parent, Evas_Object *win,
                        const char *path, edi_filepanel_item_clicked_cb cb);
 
+const char *edi_filepanel_selected_path_get(Evas_Object *obj);
+
 /**
  * @}
  */
diff --git a/src/bin/edi_main.c b/src/bin/edi_main.c
index ac4ca86..6492620 100644
--- a/src/bin/edi_main.c
+++ b/src/bin/edi_main.c
@@ -492,10 +492,14 @@ _tb_new_create_cb(void *data,
                              Evas_Object *obj EINA_UNUSED,
                              void *event_info EINA_UNUSED)
 {
-   const char *path, *name;
+   const char *selected, *path, *name;
 
    name = elm_entry_entry_get((Evas_Object *) data);
-   path = edi_project_file_path_get(name);
+   selected = edi_filepanel_selected_path_get(_edi_filepanel);
+   if (selected && ecore_file_is_dir(selected))
+     path = edi_path_append(selected, name);
+   else
+     path = edi_project_file_path_get(name);
 
    fclose(fopen(path, "w"));
    _edi_filepanel_reload();
@@ -532,6 +536,7 @@ _edi_file_new()
                                        _tb_new_create_cb, input);
 
    evas_object_show(popup);
+   elm_object_focus_set(input, EINA_TRUE);
 }
 
 static void
diff --git a/src/lib/edi.c b/src/lib/edi.c
index 21fc775..4aa4d6b 100644
--- a/src/lib/edi.c
+++ b/src/lib/edi.c
@@ -108,14 +108,7 @@ edi_project_get()
 EAPI const char *
 edi_project_file_path_get(const char *file)
 {
-   char *path;
-   int len;
-
-   len = strlen(file) + strlen(edi_project_get()) + 2;
-   path = malloc(sizeof(char) * len);
-   snprintf(path, len, "%s/%s", edi_project_get(), file);
-
-   return path;
+   return edi_path_append(edi_project_get(), file);
 }
 
 EAPI Eina_Bool
diff --git a/src/lib/edi_path.c b/src/lib/edi_path.c
index 591b0ce..6e661f1 100644
--- a/src/lib/edi_path.c
+++ b/src/lib/edi_path.c
@@ -43,4 +43,20 @@ edi_path_options_create(const char *input)
    return ret;
 }
 
+EAPI const char *
+edi_path_append(const char *path, const char *file)
+{
+   char *concat;
+   int len;
+   char separator = '/';
+#ifdef WIN32
+   separator = '\\';
+#endif
+
+   len = strlen(path) + strlen(file) + 2;
+   concat = malloc(sizeof(char) * len);
+   snprintf(concat, len, "%s%c%s", path, separator, file);
+
+   return concat;
+}
 
diff --git a/src/lib/edi_path.h b/src/lib/edi_path.h
index 41b3b5f..21f1329 100644
--- a/src/lib/edi_path.h
+++ b/src/lib/edi_path.h
@@ -40,6 +40,17 @@ typedef struct _Edi_Path_Options
  */
 EAPI Edi_Path_Options *edi_path_options_create(const char *input);
 
+/**
+ * Append a file to the end of a given path.
+ *
+ * @param path The base path to append to
+ * @param file The file portion to add to the path
+ *
+ * @return a newly allocated string that merges the items to a path using the
+ *   correct separator for the current platform.
+ */
+EAPI const char *edi_path_append(const char *path, const char *file);
+
 /**
  * @}
  */