diff --git a/src/vs/workbench/parts/files/browser/fileActions.contribution.ts b/src/vs/workbench/parts/files/browser/fileActions.contribution.ts
index 36a8e913c94..28b7e4920f9 100644
--- a/src/vs/workbench/parts/files/browser/fileActions.contribution.ts
+++ b/src/vs/workbench/parts/files/browser/fileActions.contribution.ts
@@ -65,7 +65,7 @@ class FilesViewerActionContributor extends ActionBarContributor {
 		}
 
 		// Directory Actions
-		if (stat.isDirectory) {
+		if (stat.isDirectory && stat.exists) {
 
 			// New File
 			actions.push(this.instantiationService.createInstance(NewFileAction, tree, <FileStat>stat));