diff --git a/src/filewidgets/knewfilemenu.cpp b/src/filewidgets/knewfilemenu.cpp
--- a/src/filewidgets/knewfilemenu.cpp
+++ b/src/filewidgets/knewfilemenu.cpp
@@ -249,9 +249,9 @@
     bool checkSourceExists(const QString &src);
 
     /**
-      * Asks user whether to create a hidden directory with a dialog
+      * Asks user depending on whether they wants to create a hidden directory or a directory named "~" with a dialog
       */
-    void confirmCreatingHiddenDir(const QString &name);
+    void confirmCreatingDir(const QString &name);
 
     /**
       * The strategy used for other desktop files than Type=Link. Example: Application, Device.
@@ -405,7 +405,7 @@
     return true;
 }
 
-void KNewFileMenuPrivate::confirmCreatingHiddenDir(const QString &name)
+void KNewFileMenuPrivate::confirmCreatingDir(const QString &name)
 {
     if (!KMessageBox::shouldBeShownContinue(QStringLiteral("confirm_create_hidden_dir"))) {
         _k_slotCreateHiddenDirectory();
@@ -428,12 +428,23 @@
     KGuiItem::assign(buttonBox->button(QDialogButtonBox::Ok), continueGuiItem);
     KGuiItem::assign(buttonBox->button(QDialogButtonBox::Cancel), cancelGuiItem);
 
-    KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
+    if (name.startsWith(QLatin1Char('.'))) {
+        confirmDialog->setWindowTitle(i18n("Create hidden directory?"));
+        KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
                                    i18n("The name \"%1\" starts with a dot, so the directory will be hidden by default.", name),
                                    QStringList(),
                                    i18n("Do not ask again"),
                                    nullptr,
                                    KMessageBox::NoExec);
+    } else if (name.operator==(QLatin1String("~"))) {
+        confirmDialog->setWindowTitle(i18n("Create directory named ~?"));
+        KMessageBox::createKMessageBox(confirmDialog, buttonBox, QMessageBox::Warning,
+                                   i18n("A directory named tilde("~") is not recommended because it may be confusing or dangerous if directories are deleted using the    terminal", name),
+                                   QStringList(),
+                                   i18n("Do not ask again"),
+                                   nullptr,
+                                   KMessageBox::NoExec);
+    }
 
     QObject::connect(buttonBox, SIGNAL(accepted()), q, SLOT(_k_slotCreateHiddenDirectory()));
     QObject::connect(buttonBox, &QDialogButtonBox::rejected, q, &KNewFileMenu::createDirectory);
@@ -856,7 +867,7 @@
     QUrl url;
     QUrl baseUrl = m_popupFiles.first();
 
-    QString name = expandTilde(m_text);
+    QString name = m_text;
 
     if (!name.isEmpty()) {
         if (QDir::isAbsolutePath(name)) {
@@ -890,12 +901,14 @@
                 _k_slotAbortDialog();
                 return;
             }
-            if (!m_viewShowsHiddenFiles && name.startsWith(QLatin1Char('.'))) {
+
+            if ((!m_viewShowsHiddenFiles && name.startsWith(QLatin1Char('.'))) || (name.operator==(QLatin1String("~")))) {
                 if (!writeHiddenDir) {
-                    confirmCreatingHiddenDir(name);
+                    confirmCreatingDir(name);
                     return;
                 }
             }
+
             url = baseUrl;
             url.setPath(concatPaths(url.path(), name));
         }