diff --git a/packages/core/src/browser/common-frontend-contribution.ts b/packages/core/src/browser/common-frontend-contribution.ts
index 99376fa1467a5..8e2a515be23b8 100644
--- a/packages/core/src/browser/common-frontend-contribution.ts
+++ b/packages/core/src/browser/common-frontend-contribution.ts
@@ -280,6 +280,11 @@ export namespace CommonCommands {
         category: VIEW_CATEGORY,
         label: 'Toggle Menu Bar'
     });
+    export const NEW_FILE = Command.toDefaultLocalizedCommand({
+        id: 'file.newFile',
+        category: FILE_CATEGORY,
+        label: 'New File...'
+    });
     export const NEW_UNTITLED_TEXT_FILE = Command.toDefaultLocalizedCommand({
         id: 'workbench.action.files.newUntitledTextFile',
         category: FILE_CATEGORY,
@@ -1424,6 +1429,7 @@ export class CommonFrontendContribution implements FrontendApplicationContributi
         const items: QuickPickItemOrSeparator[] = [
             {
                 label: nls.localizeByDefault('New Text File'),
+                description: nls.localizeByDefault('Built-in'),
                 execute: async () => this.commandRegistry.executeCommand(CommonCommands.NEW_UNTITLED_TEXT_FILE.id)
             },
             ...newFileContributions.children
@@ -1446,10 +1452,41 @@ export class CommonFrontendContribution implements FrontendApplicationContributi
 
                 })
         ];
+
+        const CREATE_NEW_FILE_ITEM_ID = 'create-new-file';
+        const hasNewFileHandler = this.commandRegistry.getActiveHandler(CommonCommands.NEW_FILE.id) !== undefined;
+        const createNewFileItem: QuickPickItem & { value?: string } | undefined = hasNewFileHandler ? {
+            id: CREATE_NEW_FILE_ITEM_ID,
+            label: nls.localizeByDefault('Create New File ({0})'),
+            description: nls.localizeByDefault('Built-in'),
+            execute: async () => {
+                if (createNewFileItem?.value) {
+                    const parent = await this.workingDirProvider.getUserWorkingDir();
+                    // Exec NEW_FILE command with the file name as additional argument
+                    return this.commandRegistry.executeCommand(CommonCommands.NEW_FILE.id, parent, createNewFileItem.value);
+                }
+            }
+        } : undefined;
+
         this.quickInputService.showQuickPick(items, {
             title: nls.localizeByDefault('New File...'),
             placeholder: nls.localizeByDefault('Select File Type or Enter File Name...'),
-            canSelectMany: false
+            canSelectMany: false,
+            onDidChangeValue: picker => {
+                if (createNewFileItem === undefined) {
+                    return;
+                }
+                if (picker.value) {
+                    createNewFileItem.alwaysShow = true;
+                    createNewFileItem.value = picker.value;
+                    createNewFileItem.label = nls.localizeByDefault('Create New File ({0})', picker.value);
+                    picker.items = [...items, createNewFileItem];
+                } else {
+                    createNewFileItem.alwaysShow = false;
+                    createNewFileItem.value = undefined;
+                    picker.items = items.filter(item => item !== createNewFileItem);
+                }
+            }
         });
     }
 
diff --git a/packages/workspace/src/browser/workspace-commands.ts b/packages/workspace/src/browser/workspace-commands.ts
index 2e7625f434485..c1070392ca395 100644
--- a/packages/workspace/src/browser/workspace-commands.ts
+++ b/packages/workspace/src/browser/workspace-commands.ts
@@ -88,11 +88,9 @@ export namespace WorkspaceCommands {
         category: WORKSPACE_CATEGORY,
         label: 'Close Workspace'
     });
-    export const NEW_FILE = Command.toDefaultLocalizedCommand({
-        id: 'file.newFile',
-        category: FILE_CATEGORY,
-        label: 'New File...'
-    });
+
+    export const NEW_FILE = CommonCommands.NEW_FILE;
+
     export const NEW_FOLDER = Command.toDefaultLocalizedCommand({
         id: 'file.newFolder',
         category: FILE_CATEGORY,
@@ -225,14 +223,36 @@ export class WorkspaceCommandContribution implements CommandContribution {
 
     registerCommands(registry: CommandRegistry): void {
         this.registerOpenWith(registry);
-        registry.registerCommand(WorkspaceCommands.NEW_FILE, this.newWorkspaceRootUriAwareCommandHandler({
-            execute: uri => this.getDirectory(uri).then(parent => {
+        registry.registerCommand(CommonCommands.NEW_FILE, this.newWorkspaceRootUriAwareCommandHandler({
+            execute: (uri, ...args) => this.getDirectory(uri).then(async parent => {
                 if (parent) {
-                    const parentUri = parent.resource;
                     const { fileName, fileExtension } = this.getDefaultFileConfig();
-                    const targetUri = parentUri.resolve(fileName + fileExtension);
+                    let newFileName = `${fileName}${fileExtension}`;
+                    const parentUri = parent.resource;
+
+                    const doCreateFile = async (name: string | undefined) => {
+                        if (name) {
+                            const fileUri = parentUri.resolve(name);
+                            await this.fileService.create(fileUri);
+                            this.fireCreateNewFile({ parent: parentUri, uri: fileUri });
+                            open(this.openerService, fileUri);
+                        }
+                    };
+
+                    // If a name was provided, check if it is valid create a file and return.
+                    // Otherwise open a dialog to get the name.
+                    if (args !== undefined && args.length > 0 && args[0]) {
+                        newFileName = args[0];
+                        if (await this.validateFileName(newFileName, parent, true) === '') {
+                            await doCreateFile(newFileName);
+                            return;
+                        }
+                    }
+
+                    const targetUri = parentUri.resolve(newFileName);
                     const vacantChildUri = FileSystemUtils.generateUniqueResourceURI(parent, targetUri, false);
 
+                    // Open dialog
                     const dialog = new WorkspaceInputDialog({
                         title: nls.localizeByDefault('New File...'),
                         maxWidth: 400,
@@ -241,15 +261,7 @@ export class WorkspaceCommandContribution implements CommandContribution {
                         placeholder: nls.localize('theia/workspace/newFilePlaceholder', 'File Name'),
                         validate: name => this.validateFileName(name, parent, true)
                     }, this.labelProvider);
-
-                    dialog.open().then(async name => {
-                        if (name) {
-                            const fileUri = parentUri.resolve(name);
-                            await this.fileService.create(fileUri);
-                            this.fireCreateNewFile({ parent: parentUri, uri: fileUri });
-                            open(this.openerService, fileUri);
-                        }
-                    });
+                    dialog.open().then(doCreateFile);
                 }
             })
         }));