diff --git a/krusader/Panel/panelfunc.cpp b/krusader/Panel/panelfunc.cpp
--- a/krusader/Panel/panelfunc.cpp
+++ b/krusader/Panel/panelfunc.cpp
@@ -712,7 +712,8 @@
 void ListPanelFunc::mkdir()
 {
     // ask the new dir name..
-    QString dirName = QInputDialog::getText(krMainWindow, i18n("New directory"), i18n("Directory's name:"));
+    QString suggestedName = (files()->vfs_search(panel->getCurrentName())->vfile_isDir()) ? panel->getCurrentName() : QFileInfo(panel->getCurrentName()).completeBaseName();
+    QString dirName = QInputDialog::getText(krMainWindow, i18n("New directory"), i18n("Directory's name:"), QLineEdit::Normal, suggestedName);
 
     // if the user canceled - quit
     if (dirName.isEmpty())