diff --git a/app/assets/javascripts/repo/components/new_dropdown/index.vue b/app/assets/javascripts/repo/components/new_dropdown/index.vue
new file mode 100644
index 00000000000..652c8027ae3
--- /dev/null
+++ b/app/assets/javascripts/repo/components/new_dropdown/index.vue
@@ -0,0 +1,70 @@
+<script>
+  import newModal from './modal.vue';
+
+  export default {
+    components: {
+      newModal,
+    },
+    data() {
+      return {
+        openModal: false,
+        modalType: '',
+      };
+    },
+    methods: {
+      createNewItem(type) {
+        this.modalType = type;
+        this.toggleModalOpen();
+      },
+      toggleModalOpen() {
+        this.openModal = !this.openModal;
+      },
+    },
+  };
+</script>
+
+<template>
+  <div class="breadcrumb repo-breadcrumb">
+    <div class="dropdown">
+      <button
+        type="button"
+        class="btn btn-default dropdown-toggle add-to-tree"
+        data-toggle="dropdown"
+        data-target=".add-to-tree-dropdown"
+      >
+        <i
+          class="fa fa-plus"
+          aria-hidden="true"
+        >
+        </i>
+      </button>
+    </div>
+    <div class="add-to-tree-dropdown">
+      <ul class="dropdown-menu">
+        <li>
+          <a
+            href="#"
+            role="button"
+            @click.prevent="createNewItem('blob')"
+          >
+            {{ __('New file') }}
+          </a>
+        </li>
+        <li>
+          <a
+            href="#"
+            role="button"
+            @click.prevent="createNewItem('tree')"
+          >
+            {{ __('New directory') }}
+          </a>
+        </li>
+      </ul>
+    </div>
+    <new-modal
+      v-if="openModal"
+      :type="modalType"
+      @toggle="toggleModalOpen"
+    />
+  </div>
+</template>
diff --git a/app/assets/javascripts/repo/components/new_dropdown/modal.vue b/app/assets/javascripts/repo/components/new_dropdown/modal.vue
new file mode 100644
index 00000000000..95ecfb29dd3
--- /dev/null
+++ b/app/assets/javascripts/repo/components/new_dropdown/modal.vue
@@ -0,0 +1,115 @@
+<script>
+  import { __ } from '../../../locale';
+  import popupDialog from '../../../vue_shared/components/popup_dialog.vue';
+  import RepoStore from '../../stores/repo_store';
+  import RepoHelper from '../../helpers/repo_helper';
+
+  export default {
+    props: {
+      type: {
+        type: String,
+        required: true,
+      },
+    },
+    data() {
+      return {
+        entryName: '',
+      };
+    },
+    components: {
+      popupDialog,
+    },
+    methods: {
+      createEntryInStore() {
+        if (this.entryName === '') return;
+
+        const fileName = this.type === 'tree' ? '.gitkeep' : this.entryName;
+        let tree = null;
+
+        if (this.type === 'tree') {
+          tree = RepoHelper.serializeTree({
+            name: this.entryName,
+            path: this.entryName,
+            tempFile: true,
+          });
+          RepoStore.files.push(tree);
+
+          RepoHelper.setDirectoryOpen(tree, tree.name);
+        }
+
+        const file = RepoHelper.serializeBlob({
+          name: fileName,
+          path: tree ? `${tree}/${fileName}` : fileName,
+          tempFile: true,
+        });
+
+        if (tree) {
+          RepoStore.addFilesToDirectory(tree, RepoStore.files, [file]);
+        } else {
+          RepoStore.addFilesToDirectory(tree, RepoStore.files, [...RepoStore.files, file]);
+        }
+
+        RepoHelper.setFile(file, file);
+        RepoStore.editMode = true;
+        RepoStore.toggleBlobView();
+
+        this.toggleModalOpen();
+      },
+      toggleModalOpen() {
+        this.$emit('toggle');
+      },
+    },
+    computed: {
+      modalTitle() {
+        if (this.type === 'tree') {
+          return __('Create new directory');
+        }
+
+        return __('Create new file');
+      },
+      buttonLabel() {
+        if (this.type === 'tree') {
+          return __('Create directory');
+        }
+
+        return __('Create file');
+      },
+      formLabelName() {
+        if (this.type === 'tree') {
+          return __('Directory name');
+        }
+
+        return __('File name');
+      },
+    },
+  };
+</script>
+
+<template>
+  <popup-dialog
+    :title="modalTitle"
+    :primary-button-label="buttonLabel"
+    kind="success"
+    @toggle="toggleModalOpen"
+    @submit="createEntryInStore"
+  >
+    <form
+      class="form-horizontal"
+      slot="body"
+      @submit.prevent="createEntryInStore"
+    >
+      <fieldset class="form-group append-bottom-0">
+        <label class="label-light col-sm-3">
+          {{ formLabelName }}
+        </label>
+        <div class="col-sm-9">
+          <input
+            type="text"
+            class="form-control"
+            v-model="entryName"
+          />
+        </div>
+      </fieldset>
+    </form>
+  </popup-dialog>
+</template>
diff --git a/app/assets/javascripts/repo/components/repo_commit_section.vue b/app/assets/javascripts/repo/components/repo_commit_section.vue
index 185cd90ac06..e3003fbf477 100644
--- a/app/assets/javascripts/repo/components/repo_commit_section.vue
+++ b/app/assets/javascripts/repo/components/repo_commit_section.vue
@@ -49,7 +49,7 @@ export default {
       // see https://docs.gitlab.com/ce/api/commits.html#create-a-commit-with-multiple-files-and-actions
       const commitMessage = this.commitMessage;
       const actions = this.changedFiles.map(f => ({
-        action: 'update',
+        action: f.tempFile ? 'create' : 'update',
         file_path: f.path,
         content: f.newContent,
       }));
diff --git a/app/assets/javascripts/repo/components/repo_editor.vue b/app/assets/javascripts/repo/components/repo_editor.vue
index 4639bee6d66..9f567d4e94d 100644
--- a/app/assets/javascripts/repo/components/repo_editor.vue
+++ b/app/assets/javascripts/repo/components/repo_editor.vue
@@ -16,28 +16,35 @@ const RepoEditor = {
   },
 
   mounted() {
-    Service.getRaw(this.activeFile.raw_path)
-      .then((rawResponse) => {
-        Store.blobRaw = rawResponse.data;
-        Store.activeFile.plain = rawResponse.data;
+    if (!this.activeFile.tempFile) {
+      Service.getRaw(this.activeFile.raw_path)
+        .then((rawResponse) => {
+          Store.blobRaw = rawResponse.data;
+          Store.activeFile.plain = rawResponse.data;
 
-        const monacoInstance = Helper.monaco.editor.create(this.$el, {
-          model: null,
-          readOnly: false,
-          contextmenu: true,
-          scrollBeyondLastLine: false,
-        });
-
-        Helper.monacoInstance = monacoInstance;
-
-        this.addMonacoEvents();
-
-        this.setupEditor();
-      })
-      .catch(Helper.loadingError);
+          this.createMonacoInstance();
+        })
+        .catch(Helper.loadingError);
+    } else {
+      this.createMonacoInstance();
+    }
   },
 
   methods: {
+    createMonacoInstance() {
+      const monacoInstance = Helper.monaco.editor.create(this.$el, {
+        model: null,
+        readOnly: false,
+        contextmenu: true,
+        scrollBeyondLastLine: false,
+      });
+
+      Helper.monacoInstance = monacoInstance;
+
+      this.addMonacoEvents();
+
+      this.setupEditor();
+    },
     setupEditor() {
       this.showHide();
 
diff --git a/app/assets/javascripts/repo/components/repo_file_buttons.vue b/app/assets/javascripts/repo/components/repo_file_buttons.vue
index 03cd219e718..354be2545f4 100644
--- a/app/assets/javascripts/repo/components/repo_file_buttons.vue
+++ b/app/assets/javascripts/repo/components/repo_file_buttons.vue
@@ -11,7 +11,12 @@ const RepoFileButtons = {
   mixins: [RepoMixin],
 
   computed: {
-
+    showButtons() {
+      return this.activeFile.raw_path ||
+        this.activeFile.blame_path ||
+        this.activeFile.commits_path ||
+        this.activeFile.permalink;
+    },
     rawDownloadButtonLabel() {
       return this.binary ? 'Download' : 'Raw';
     },
@@ -30,7 +35,10 @@ export default RepoFileButtons;
 </script>
 
 <template>
-  <div id="repo-file-buttons">
+  <div
+    v-if="showButtons"
+    id="repo-file-buttons"
+  >
     <a
       :href="activeFile.raw_path"
       target="_blank"
diff --git a/app/assets/javascripts/repo/components/repo_tab.vue b/app/assets/javascripts/repo/components/repo_tab.vue
index 098715915b0..96376ea0db6 100644
--- a/app/assets/javascripts/repo/components/repo_tab.vue
+++ b/app/assets/javascripts/repo/components/repo_tab.vue
@@ -18,8 +18,8 @@ const RepoTab = {
     },
     changedClass() {
       const tabChangedObj = {
-        'fa-times close-icon': !this.tab.changed,
-        'fa-circle unsaved-icon': this.tab.changed,
+        'fa-times close-icon': !this.tab.changed && !this.tab.tempFile,
+        'fa-circle unsaved-icon': this.tab.changed || this.tab.tempFile,
       };
       return tabChangedObj;
     },
diff --git a/app/assets/javascripts/repo/helpers/repo_helper.js b/app/assets/javascripts/repo/helpers/repo_helper.js
index f7b7f93e4b8..dd635f82b13 100644
--- a/app/assets/javascripts/repo/helpers/repo_helper.js
+++ b/app/assets/javascripts/repo/helpers/repo_helper.js
@@ -157,7 +157,7 @@ const RepoHelper = {
   },
 
   serializeRepoEntity(type, entity, level = 0) {
-    const { id, url, name, icon, last_commit, tree_url } = entity;
+    const { id, url, name, icon, last_commit, tree_url, path, tempFile } = entity;
 
     return {
       id,
@@ -165,7 +165,9 @@ const RepoHelper = {
       name,
       url,
       tree_url,
+      path,
       level,
+      tempFile,
       icon: `fa-${icon}`,
       files: [],
       loading: false,
diff --git a/app/assets/javascripts/repo/index.js b/app/assets/javascripts/repo/index.js
index 65dee7d5fd1..b1b40d8b8cc 100644
--- a/app/assets/javascripts/repo/index.js
+++ b/app/assets/javascripts/repo/index.js
@@ -5,6 +5,7 @@ import Service from './services/repo_service';
 import Store from './stores/repo_store';
 import Repo from './components/repo.vue';
 import RepoEditButton from './components/repo_edit_button.vue';
+import newDropdown from './components/new_dropdown/index.vue';
 import Translate from '../vue_shared/translate';
 
 function initDropdowns() {
@@ -62,9 +63,22 @@ function initRepoEditButton(el) {
   });
 }
 
+function initNewDropdown(el) {
+  return new Vue({
+    el,
+    components: {
+      newDropdown,
+    },
+    render(createElement) {
+      return createElement('new-dropdown');
+    },
+  });
+}
+
 function initRepoBundle() {
   const repo = document.getElementById('repo');
   const editButton = document.querySelector('.editable-mode');
+  const newDropdownHolder = document.querySelector('.js-new-dropdown');
   setInitialStore(repo.dataset);
   addEventsForNonVueEls();
   initDropdowns();
@@ -73,6 +87,7 @@ function initRepoBundle() {
 
   initRepo(repo);
   initRepoEditButton(editButton);
+  initNewDropdown(newDropdownHolder);
 }
 
 $(initRepoBundle);
diff --git a/app/assets/javascripts/repo/mixins/repo_mixin.js b/app/assets/javascripts/repo/mixins/repo_mixin.js
index c8e8238a0d3..efeda426b96 100644
--- a/app/assets/javascripts/repo/mixins/repo_mixin.js
+++ b/app/assets/javascripts/repo/mixins/repo_mixin.js
@@ -8,7 +8,7 @@ const RepoMixin = {
 
     changedFiles() {
       const changedFileList = this.openedFiles
-      .filter(file => file.changed);
+        .filter(file => file.changed || file.tempFile);
       return changedFileList;
     },
   },
diff --git a/app/assets/javascripts/repo/stores/repo_store.js b/app/assets/javascripts/repo/stores/repo_store.js
index 49d7317a17e..f4ab80b2c98 100644
--- a/app/assets/javascripts/repo/stores/repo_store.js
+++ b/app/assets/javascripts/repo/stores/repo_store.js
@@ -75,7 +75,7 @@ const RepoStore = {
       RepoStore.blobRaw = file.base64;
     } else if (file.newContent || file.plain) {
       RepoStore.blobRaw = file.newContent || file.plain;
-    } else {
+    } else if (!file.tempFile) {
       Service.getRaw(file.raw_path)
         .then((rawResponse) => {
           RepoStore.blobRaw = rawResponse.data;
@@ -120,6 +120,11 @@ const RepoStore = {
       return openedFile.path !== file.path;
     });
 
+    // remove the file from the sidebar if it is a tempFile
+    if (file.tempFile) {
+      RepoStore.files = RepoStore.files.filter(f => !(f.tempFile && f.path === file.path));
+    }
+
     // now activate the right tab based on what you closed.
     if (RepoStore.openedFiles.length === 0) {
       RepoStore.activeFile = {};
diff --git a/app/assets/javascripts/vue_shared/components/popup_dialog.vue b/app/assets/javascripts/vue_shared/components/popup_dialog.vue
index 7d8c5936b7d..9e8c10bdc1a 100644
--- a/app/assets/javascripts/vue_shared/components/popup_dialog.vue
+++ b/app/assets/javascripts/vue_shared/components/popup_dialog.vue
@@ -9,7 +9,7 @@ export default {
     },
     text: {
       type: String,
-      required: true,
+      required: false,
     },
     kind: {
       type: String,
@@ -82,14 +82,15 @@ export default {
           type="button"
           class="btn"
           :class="btnCancelKindClass"
-          @click="emitSubmit(false)">
-            {{closeButtonLabel}}
+          @click="close">
+          {{ closeButtonLabel }}
         </button>
-        <button type="button"
+        <button
+          type="button"
           class="btn"
           :class="btnKindClass"
           @click="emitSubmit(true)">
-            {{primaryButtonLabel}}
+          {{ primaryButtonLabel }}
         </button>
       </div>
     </div>
diff --git a/app/views/projects/tree/_tree_header.html.haml b/app/views/projects/tree/_tree_header.html.haml
index 6cddc38d11a..df58e257a4e 100644
--- a/app/views/projects/tree/_tree_header.html.haml
+++ b/app/views/projects/tree/_tree_header.html.haml
@@ -2,7 +2,9 @@
   .tree-ref-holder
     = render 'shared/ref_switcher', destination: 'tree', path: @path
 
-  - unless show_new_repo?
+  - if show_new_repo?
+    .js-new-dropdown
+  - else
     = render 'projects/tree/old_tree_header'
 
 .tree-controls