diff --git a/autotests/knewfilemenutest.cpp b/autotests/knewfilemenutest.cpp
--- a/autotests/knewfilemenutest.cpp
+++ b/autotests/knewfilemenutest.cpp
@@ -94,9 +94,9 @@
         QTest::addColumn<QString>("typedFilename"); // what the user is typing
         QTest::addColumn<QString>("expectedFilename"); // the final file name
 
-        QTest::newRow("text file") << "Text File" << "Text File" << "tmp_knewfilemenutest.txt" << "tmp_knewfilemenutest.txt";
-        QTest::newRow("text file with jpeg extension") << "Text File" << "Text File" << "foo.jpg" << "foo.jpg.txt";
-        QTest::newRow("html file") << "HTML File" << "HTML File" << "foo.html" << "foo.html";
+        QTest::newRow("text file") << "Text File" << "Text File.txt" << "tmp_knewfilemenutest.txt" << "tmp_knewfilemenutest.txt";
+        QTest::newRow("text file with jpeg extension") << "Text File" << "Text File.txt" << "foo.jpg" << "foo.jpg.txt";
+        QTest::newRow("html file") << "HTML File" << "HTML File.html" << "foo.html" << "foo.html";
         QTest::newRow("url desktop file") << "Link to Location " << "" << "tmp_link.desktop" << "tmp_link.desktop";
         QTest::newRow("url desktop file no extension") << "Link to Location " << "" << "tmp_link" << "tmp_link";
         QTest::newRow("url desktop file .pl extension") << "Link to Location " << "" << "tmp_link.pl" << "tmp_link.pl.desktop";
diff --git a/src/filewidgets/knewfilemenu.cpp b/src/filewidgets/knewfilemenu.cpp
--- a/src/filewidgets/knewfilemenu.cpp
+++ b/src/filewidgets/knewfilemenu.cpp
@@ -460,10 +460,15 @@
 void KNewFileMenuPrivate::executeRealFileOrDir(const KNewFileMenuSingleton::Entry &entry)
 {
     // The template is not a desktop file
-    // Show the small dialog for getting the destination filename
+    // Prompt the user to set the destination filename
     QString text = entry.text;
     text.remove(QStringLiteral("...")); // the ... is fine for the menu item but not for the default filename
     text = text.trimmed(); // In some languages, there is a space in front of "...", see bug 268895
+    // add the extension (from the templatePath), should work with .txt, .html and with ".tar.gz"... etc
+    const QString fileName = entry.templatePath.mid(entry.templatePath.lastIndexOf(QLatin1Char('/')));
+    const int dotIndex = fileName.indexOf(QLatin1Char('.'));
+    text += dotIndex > 0 ? fileName.midRef(dotIndex) : QStringRef();
+
     m_copyData.m_src = entry.templatePath;
 
     const QUrl directory = mostLocalUrl(m_popupFiles.first());