diff -r 80e8c03548a4 gui/src/FilesDockWidget.cpp
--- a/gui/src/FilesDockWidget.cpp	Tue Mar 13 19:11:52 2012 -0400
+++ b/gui/src/FilesDockWidget.cpp	Fri Mar 16 14:23:30 2012 +0530
@@ -24,7 +24,7 @@
 #include <QSettings>
 #include <QProcess>
 #include <QDebug>
-
+#include "newfolderdialog.h"
 FilesDockWidget::FilesDockWidget (QWidget * parent):QDockWidget (parent)
 {
   setObjectName ("FilesDockWidget");
@@ -44,13 +44,22 @@
   m_directoryUpAction = new QAction (m_directoryIcon, "", m_navigationToolBar);
   m_directoryUpAction->setStatusTip (tr ("Move up one directory."));
 

+  m_newdirectoryIcon = style->standardIcon (QStyle::SP_FileDialogNewFolder);
+  m_newdirectoryUpAction = new QAction (m_newdirectoryIcon, "", m_navigationToolBar);
+  m_newdirectoryUpAction->setStatusTip (tr ("Create a new directory."));
+
+
   m_currentDirectory = new QLineEdit (m_navigationToolBar);
   m_currentDirectory->setStatusTip (tr ("Enter the path or filename."));
 
   m_navigationToolBar->addAction (m_directoryUpAction);
+  m_navigationToolBar->addAction (m_newdirectoryUpAction);
   m_navigationToolBar->addWidget (m_currentDirectory);
   connect (m_directoryUpAction, SIGNAL (triggered ()), this,
-	   SLOT (onUpDirectory ()));
+           SLOT (onUpDirectory ()));
+  connect (m_newdirectoryUpAction, SIGNAL (triggered ()), this,
+           SLOT (onNewDirectory ()));
 
   // TODO: Add other buttons for creating directories
 
@@ -61,8 +70,7 @@
 
   m_fileSystemModel = new QFileSystemModel (this);
   m_fileSystemModel->setFilter (QDir::NoDotAndDotDot | QDir::AllEntries);
-  QModelIndex
-    rootPathIndex = m_fileSystemModel->setRootPath (homePath);
+  QModelIndex rootPathIndex = m_fileSystemModel->setRootPath (homePath);
 
   // Attach the model to the QTreeView and set the root index
   m_fileTreeView = new QTreeView (widget ());
@@ -81,6 +89,8 @@
 
   connect (m_fileTreeView, SIGNAL (doubleClicked (const QModelIndex &)), this,
 	   SLOT (itemDoubleClicked (const QModelIndex &)));
+  connect (m_fileTreeView, SIGNAL (doubleClicked (const QModelIndex &)), this,
+           SLOT (itemDoubleClicked (const QModelIndex &)));
 
   // Layout the widgets vertically with the toolbar on top
   QVBoxLayout *
@@ -153,6 +163,26 @@
 }
 
 void
+FilesDockWidget::onNewDirectory (void)
+{
+    QString name ;
+    NewFolderDialog fileNameDialog;
+    if(fileNameDialog.exec()==QDialog::Accepted)
+    {
+        name = fileNameDialog.getname();
+    }
+    QDir dir = QDir (m_fileSystemModel->filePath (m_fileTreeView->rootIndex ()));
+    if(name!=NULL){
+        dir.mkdir(name);
+    }
+    m_fileSystemModel->setRootPath (dir.absolutePath ());
+    m_fileTreeView->setRootIndex (m_fileSystemModel->
+                                index (dir.absolutePath ()));
+    setCurrentDirectory (dir.absolutePath ());
+}
+
+
+void
 FilesDockWidget::currentDirectoryEntered ()
 {
   QFileInfo fileInfo (m_currentDirectory->text ());
@@ -196,3 +226,4 @@
   emit activeChanged (false);
   QDockWidget::closeEvent (event);
 }
+
diff -r 80e8c03548a4 gui/src/FilesDockWidget.h
--- a/gui/src/FilesDockWidget.h	Tue Mar 13 19:11:52 2012 -0400
+++ b/gui/src/FilesDockWidget.h	Fri Mar 16 14:23:30 2012 +0530
@@ -45,6 +45,7 @@
 
   /** Slot for handling the up-directory button in the toolbar. */
   void onUpDirectory ();
+  void onNewDirectory ();
 
   void setCurrentDirectory (QString currentDirectory);
 
@@ -72,6 +73,10 @@
     /** Variables for the up-directory action. */
   QIcon m_directoryIcon;
   QAction *m_directoryUpAction;
+
+  QIcon m_newdirectoryIcon;
+  QAction *m_newdirectoryUpAction;
+
   QToolButton *upDirectoryButton;
 
     /** The file system model. */
@@ -83,3 +88,4 @@
 };
 
 #endif // FILESDOCKWIDGET_H
+
diff -r 80e8c03548a4 gui/src/src.pro
--- a/gui/src/src.pro	Tue Mar 13 19:11:52 2012 -0400
+++ b/gui/src/src.pro	Fri Mar 16 14:23:30 2012 +0530
@@ -90,7 +90,8 @@
     backend/OctaveLink.cpp \
     backend/OctaveMainThread.cpp \
     backend/ReadlineAdapter.cpp \
-    WelcomeWizard.cpp
+    WelcomeWizard.cpp \
+    newfolderdialog.cpp
 
 HEADERS += \
     lexer/lexeroctavegui.h \
@@ -107,8 +108,10 @@
     backend/OctaveLink.h \
     backend/OctaveMainThread.h \
     backend/ReadlineAdapter.h \
-    WelcomeWizard.h
+    WelcomeWizard.h \
+    newfolderdialog.h
 
 FORMS += \
     SettingsDialog.ui \
-    WelcomeWizard.ui
+    WelcomeWizard.ui \
+    newfolderdialog.ui