diff --git a/src/filewidgets/knewfilemenu.cpp b/src/filewidgets/knewfilemenu.cpp
--- a/src/filewidgets/knewfilemenu.cpp
+++ b/src/filewidgets/knewfilemenu.cpp
@@ -460,10 +460,12 @@
 void KNewFileMenuPrivate::executeRealFileOrDir(const KNewFileMenuSingleton::Entry &entry)
 {
     // The template is not a desktop file
-    // Show the small dialog for getting 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
+    // Prompt the user to set the destination filename, and initially display
+    // the filename from the template including the extenstion, e.g. "TextFile.txt",
+    // "HTMLFile.html" in the line edit
+    QString text = entry.templatePath;
+    text = text.mid(text.lastIndexOf(QLatin1Char('/')) + 1);
+
     m_copyData.m_src = entry.templatePath;
 
     const QUrl directory = mostLocalUrl(m_popupFiles.first());