diff --git a/embark-ui/src/actions/index.js b/embark-ui/src/actions/index.js
index 1e11caaba..d59bd673c 100644
--- a/embark-ui/src/actions/index.js
+++ b/embark-ui/src/actions/index.js
@@ -293,10 +293,17 @@ export const saveFile = {
   failure: (error) => action(SAVE_FILE[FAILURE], {error})
 };
 
+export const SAVE_FOLDER = createRequestTypes('SAVE_FOLDER');
+export const saveFolder = {
+  request: ({path}) => action(SAVE_FOLDER[REQUEST], {path}),
+  success: () => action(SAVE_FOLDER[SUCCESS]),
+  failure: (error) => action(SAVE_FOLDER[FAILURE], {error})
+};
+
 export const REMOVE_FILE = createRequestTypes('REMOVE_FILE');
 export const removeFile = {
   request: ({name, path, content}) => action(REMOVE_FILE[REQUEST], {name, path, content}),
-  success: () => action(REMOVE_FILE[SUCCESS]),
+  success: (_, file) => action(REMOVE_FILE[SUCCESS], {file}),
   failure: (error) => action(REMOVE_FILE[FAILURE], {error})
 };
 
diff --git a/embark-ui/src/components/AddFileModal.js b/embark-ui/src/components/AddFileModal.js
new file mode 100644
index 000000000..d20a40cb9
--- /dev/null
+++ b/embark-ui/src/components/AddFileModal.js
@@ -0,0 +1,51 @@
+import React from 'react';
+import {Button, Modal, ModalHeader, ModalBody, ModalFooter, Input} from 'reactstrap';
+import PropTypes from 'prop-types';
+import classNames from 'classnames';
+
+import {isDarkTheme} from '../utils/utils';
+
+class AddFileModal extends React.Component {
+  constructor(props) {
+    super(props)
+    this.state = {modal: false, filename: ''};
+  }
+
+  toggle() {
+    this.setState({modal: !this.state.modal});
+  }
+
+  handleChange(event) {
+    this.setState({filename: event.target.value});
+  }
+
+  addFile() {
+    this.props.saveFile({path: `${this.props.node.path}/${this.state.filename}`, content: ''});
+    this.toggle();
+  }
+
+  render() {
+    return (
+      <Modal contentClassName={classNames({'dark-theme': isDarkTheme(this.props.theme)})}
+             isOpen={this.state.modal}
+             toggle={() => this.toggle()}>
+        <ModalHeader toggle={() => this.toggle()}>Please give the file a name</ModalHeader>
+        <ModalBody>
+          <Input autofocus="true" value={this.state.filename} onChange={e => this.handleChange(e)} />
+        </ModalBody>
+        <ModalFooter>
+          <Button color="primary" onClick={() => this.addFile()}>Add File</Button>{' '}
+          <Button color="secondary" onClick={() => this.toggle()}>Cancel</Button>
+        </ModalFooter>
+      </Modal>
+    )
+  }
+}
+
+AddFileModal.propTypes = {
+  saveFile: PropTypes.func,
+  node: PropTypes.object,
+  theme: PropTypes.string
+};
+
+export default AddFileModal;
\ No newline at end of file
diff --git a/embark-ui/src/components/AddFolderModal.js b/embark-ui/src/components/AddFolderModal.js
new file mode 100644
index 000000000..4f5d3abdd
--- /dev/null
+++ b/embark-ui/src/components/AddFolderModal.js
@@ -0,0 +1,51 @@
+import React from 'react';
+import {Button, Modal, ModalHeader, ModalBody, ModalFooter, Input} from 'reactstrap';
+import PropTypes from 'prop-types';
+import classNames from 'classnames';
+
+import {isDarkTheme} from '../utils/utils';
+
+class AddFolderModal extends React.Component {
+  constructor(props) {
+    super(props)
+    this.state = {modal: false, folder: ''};
+  }
+
+  toggle() {
+    this.setState({modal: !this.state.modal});
+  }
+
+  handleChange(event) {
+    this.setState({folder: event.target.value});
+  }
+
+  addFolder() {
+    this.props.saveFolder({path: `${this.props.node.path}/${this.state.folder}`});
+    this.toggle();
+  }
+
+  render() {
+    return (
+      <Modal contentClassName={classNames({'dark-theme': isDarkTheme(this.props.theme)})}
+             isOpen={this.state.modal}
+             toggle={() => this.toggle()}>
+        <ModalHeader toggle={() => this.toggle()}>Please give the folder a name</ModalHeader>
+        <ModalBody>
+          <Input autofocus="true" value={this.state.filename} onChange={e => this.handleChange(e)} />
+        </ModalBody>
+        <ModalFooter>
+          <Button color="primary" onClick={() => this.addFolder()}>Add Folder</Button>{' '}
+          <Button color="secondary" onClick={() => this.toggle()}>Cancel</Button>
+        </ModalFooter>
+      </Modal>
+    )
+  }
+}
+
+AddFolderModal.propTypes = {
+  saveFolder: PropTypes.func,
+  node: PropTypes.object,
+  theme: PropTypes.string
+};
+
+export default AddFolderModal;
\ No newline at end of file
diff --git a/embark-ui/src/components/FileExplorer.js b/embark-ui/src/components/FileExplorer.js
index c47556793..e1cf7a070 100644
--- a/embark-ui/src/components/FileExplorer.js
+++ b/embark-ui/src/components/FileExplorer.js
@@ -1,12 +1,12 @@
+import React from 'react';
 import {AppSwitch} from '@coreui/react';
 import {Label} from 'reactstrap';
-import React from 'react';
 import PropTypes from 'prop-types';
 import {Treebeard, decorators} from 'react-treebeard';
 import classNames from 'classnames';
-import {DARK_THEME} from '../constants';
 
-const isDarkTheme= (theme) => theme === DARK_THEME;
+import FileExplorerRowContainer from '../containers/FileExplorerRowContainer';
+import {isDarkTheme} from '../utils/utils';
 
 const style = (theme) => ({
   tree: {
@@ -77,67 +77,73 @@ const style = (theme) => ({
     }
   }
 });
+class Header extends React.Component {
+  resolveIcon() {
+    let icon;
+    let {node} = this.props;
 
-
-const Header = ({style, node}) => {
-  let icon;
-
-  if (!node.children) {
-    const extension = node.path.split('.').pop();
-    switch(extension) {
-      case 'html':
-        icon = 'text-danger fa fa-html5';
-        break;
-      case 'css':
-        icon = 'text-warning fa fa-css3';
-        break;
-      case 'js':
-      case 'jsx':
-        icon = 'text-primary icon js-icon';
-        break;
-      case 'json':
-        icon = 'text-success icon hjson-icon';
-        break;
-      case 'sol':
-        icon = 'text-warning icon solidity-icon';
-        break;
-      default:
-        icon = 'fa fa-file-o';
-    }
-  } else {
-    switch(node.name) {
-      case 'dist':
-        icon = 'text-danger icon easybuild-icon';
-        break;
-      case 'config':
-        icon = 'text-warning fa fa-cogs';
-        break;
-      case 'contracts':
-        icon = 'text-success fa fa-file-text';
-        break;
-      case 'app':
-        icon = 'text-primary fa fa-code';
-        break;
-      case 'test':
-        icon = 'icon test-dir-icon';
-        break;
-      case 'node_modules':
-        icon = 'fa fa-folder-o';
-        break;
-      default:
-        icon = 'fa fa-folder';
+    if (!node.children) {
+      const extension = node.path.split('.').pop();
+      switch(extension) {
+        case 'html':
+          icon = 'text-danger fa fa-html5';
+          break;
+        case 'css':
+          icon = 'text-warning fa fa-css3';
+          break;
+        case 'js':
+        case 'jsx':
+          icon = 'text-primary icon js-icon';
+          break;
+        case 'json':
+          icon = 'text-success icon hjson-icon';
+          break;
+        case 'sol':
+          icon = 'text-warning icon solidity-icon';
+          break;
+        default:
+          icon = 'fa fa-file-o';
+      }
+    } else {
+      switch(node.name) {
+        case 'dist':
+          icon = 'text-danger icon easybuild-icon';
+          break;
+        case 'config':
+          icon = 'text-warning fa fa-cogs';
+          break;
+        case 'contracts':
+          icon = 'text-success fa fa-file-text';
+          break;
+        case 'app':
+          icon = 'text-primary fa fa-code';
+          break;
+        case 'test':
+          icon = 'icon test-dir-icon';
+          break;
+        case 'node_modules':
+          icon = 'fa fa-folder-o';
+          break;
+        default:
+          icon = 'fa fa-folder';
+      }
     }
 
+    return icon;
   }
 
-  return (
-    <div className="mb-1" style={style.base}>
-      <div style={style.title}>
-        <i className={classNames('mr-1', icon)} />
-        {node.name}
+  render() {
+    let {node, style} = this.props;
+    return (
+      <div className="mb-1 d-inline-block"
+           style={style.base}>
+        <div style={style.title}>
+          <i className={classNames('mr-1', this.resolveIcon())} />
+          {node.name}
+        </div>
       </div>
-    </div>
-  );
+    );
+  }
 };
 
 Header.propTypes = {
@@ -146,6 +152,7 @@ Header.propTypes = {
 };
 
 decorators.Header = Header;
+decorators.Container = FileExplorerRowContainer;
 
 class FileExplorer extends React.Component {
   constructor(props) {
diff --git a/embark-ui/src/components/TextEditorToolbar.js b/embark-ui/src/components/TextEditorToolbar.js
index 3a3331f8e..9437a1aec 100644
--- a/embark-ui/src/components/TextEditorToolbar.js
+++ b/embark-ui/src/components/TextEditorToolbar.js
@@ -4,6 +4,9 @@ import {Button, Nav, NavLink} from 'reactstrap';
 import classnames from 'classnames';
 import FontAwesomeIcon from 'react-fontawesome';
 
+import AddFileModal from '../components/AddFileModal';
+import AddFolderModal from '../components/AddFolderModal';
+
 export const TextEditorToolbarTabs = {
   Interact: { label: 'Interact', icon: 'bolt' },
   Details: { label: 'Details', icon: 'info-circle' },
@@ -13,6 +16,11 @@ export const TextEditorToolbarTabs = {
 };
 
 class TextEditorToolbar extends Component {
+  constructor(props) {
+    super(props);
+    this.addFileModal = React.createRef();
+    this.addFolderModal = React.createRef();
+  }
 
   isActiveTab(tab) {
     return this.props.activeTab === tab;
@@ -38,6 +46,16 @@ class TextEditorToolbar extends Component {
     return (
       <ol className="breadcrumb mb-0">
         <li className="breadcrumb-item">
+          <Button color="success" size="sm" className="mr-1" onClick={() => this.addFileModal.current.toggle()}>
+            <FontAwesomeIcon className="mr-2" name="plus"/>
+            Add File
+          </Button>
+          <AddFileModal theme={this.props.theme} node={{path: this.props.rootDirname}} saveFile={this.props.saveFile} ref={this.addFileModal} />
+          <Button color="success" size="sm" className="mr-1" onClick={() => this.addFolderModal.current.toggle()}>
+            <FontAwesomeIcon className="mr-2" name="folder-open"/>
+            Add Folder
+          </Button>
+          <AddFolderModal theme={this.props.theme} node={{path: this.props.rootDirname}} saveFolder={this.props.saveFolder} ref={this.addFolderModal} />
           <Button color="success" size="sm" className="mr-1" onClick={this.props.save}>
             <FontAwesomeIcon className="mr-2" name="save"/>
             Save
@@ -61,7 +79,11 @@ class TextEditorToolbar extends Component {
 
 TextEditorToolbar.propTypes = {
   isContract: PropTypes.bool,
+  theme: PropTypes.string,
   save: PropTypes.func,
+  saveFile: PropTypes.func,
+  rootDirname: PropTypes.string,
+  saveFolder: PropTypes.func,
   remove: PropTypes.func,
   toggleShowHiddenFiles: PropTypes.func,
   openAsideTab: PropTypes.func,
diff --git a/embark-ui/src/containers/FileExplorerContainer.js b/embark-ui/src/containers/FileExplorerContainer.js
index c9a472e38..11fa55b3b 100644
--- a/embark-ui/src/containers/FileExplorerContainer.js
+++ b/embark-ui/src/containers/FileExplorerContainer.js
@@ -2,7 +2,6 @@ import React, {Component} from 'react';
 import {connect} from 'react-redux';
 import PropTypes from 'prop-types';
 import {files as filesAction, file as fileAction} from "../actions";
-
 import FileExplorer from '../components/FileExplorer';
 import DataWrapper from "../components/DataWrapper";
 import {getFiles, getTheme} from "../reducers/selectors";
@@ -14,13 +13,13 @@ class FileExplorerContainer extends Component {
 
   render() {
     return (
-        <DataWrapper shouldRender={this.props.files.length > 0} {...this.props} render={({files, fetchFile, showHiddenFiles, toggleShowHiddenFiles, theme}) => (
-          <FileExplorer files={files}
-                        fetchFile={fetchFile}
-                        showHiddenFiles={showHiddenFiles}
-                        toggleShowHiddenFiles={toggleShowHiddenFiles}
-                        theme={theme} />
-        )} />
+      <DataWrapper shouldRender={this.props.files.length > 0} {...this.props} render={({files, fetchFile, showHiddenFiles, toggleShowHiddenFiles, theme}) => (
+        <FileExplorer files={files}
+                      fetchFile={fetchFile}
+                      showHiddenFiles={showHiddenFiles}
+                      toggleShowHiddenFiles={toggleShowHiddenFiles}
+                      theme={theme} />
+      )} />
     );
   }
 }
diff --git a/embark-ui/src/containers/FileExplorerRowContainer.js b/embark-ui/src/containers/FileExplorerRowContainer.js
new file mode 100644
index 000000000..6946c3614
--- /dev/null
+++ b/embark-ui/src/containers/FileExplorerRowContainer.js
@@ -0,0 +1,103 @@
+import React from 'react';
+import {UncontrolledTooltip} from 'reactstrap';
+import {connect} from 'react-redux';
+import PropTypes from 'prop-types';
+import FontAwesome from 'react-fontawesome';
+
+import {removeFile as removeFileAction, saveFile as saveFileAction, saveFolder as saveFolderAction} from '../actions';
+import AddFileModal from '../components/AddFileModal';
+import AddFolderModal from '../components/AddFolderModal';
+import { getTheme } from '../reducers/selectors';
+
+class FileExplorerRowContainer extends React.Component {
+  constructor(props) {
+    super(props)
+    this.state = {active: false};
+    this.addFileModal = React.createRef();
+    this.addFolderModal = React.createRef();
+  }
+
+  activateNode() {
+    this.setState({active : true});
+  }
+
+  deactivateNode() {
+    this.setState({active : false});
+  }
+
+  renderAction() {
+    return (
+      <span className="float-right mr-2">
+        {this.props.node.children &&
+          <React.Fragment>
+            <span id="add-file"
+                  className="pointer"
+                  onClick={() => this.addFileModal.current.toggle()}>
+              <FontAwesome name="plus" className="text-success mr-2" />
+            </span>
+            <span id="add-folder"
+                  className="pointer"
+                  onClick={() => this.addFolderModal.current.toggle()}>
+              <FontAwesome name="folder-open" className="text-success mr-2" />
+            </span>
+            <UncontrolledTooltip placement="bottom" target="add-file">
+              Add File
+            </UncontrolledTooltip>
+            <UncontrolledTooltip placement="bottom" target="add-folder">
+              Add Folder
+            </UncontrolledTooltip>
+            <AddFileModal theme={this.props.theme} node={this.props.node} saveFile={this.props.saveFile} ref={this.addFileModal} />
+            <AddFolderModal theme={this.props.theme} node={this.props.node} saveFolder={this.props.saveFolder} ref={this.addFolderModal} />
+          </React.Fragment>
+        }
+        <span id="delete"
+              style={{cursor: "pointer"}}
+              onClick={() => this.props.removeFile(this.props.node)}>
+          <FontAwesome name="trash" className="text-danger" />
+        </span>
+        <UncontrolledTooltip placement="bottom" target="delete">
+          Delete
+        </UncontrolledTooltip>
+      </span>
+    )
+  }
+
+  render() {
+    return (
+      <div style={this.props.style.container}
+           onMouseEnter={() => this.activateNode()}
+           onMouseLeave={() => this.deactivateNode()}>
+        <span onClick={this.props.onClick}>
+          <this.props.decorators.Toggle style={this.props.style.toggle}/>
+          <this.props.decorators.Header node={this.props.node} style={this.props.style.header}/>
+        </span>
+        {this.state.active && this.renderAction()}
+      </div>
+    )
+  }
+}
+
+FileExplorerRowContainer.propTypes = {
+  onClick: PropTypes.func,
+  removeFile: PropTypes.func,
+  saveFile: PropTypes.func,
+  saveFolder: PropTypes.func,
+  style: PropTypes.object,
+  node: PropTypes.object,
+  theme: PropTypes.string
+};
+
+const mapStateToProps = (state) => {
+  return {
+    theme: getTheme(state)
+  }
+}
+
+export default connect(
+  mapStateToProps,
+  {
+    removeFile: removeFileAction.request,
+    saveFile: saveFileAction.request,
+    saveFolder: saveFolderAction.request
+  }
+)(FileExplorerRowContainer);
diff --git a/embark-ui/src/containers/TextEditorToolbarContainer.js b/embark-ui/src/containers/TextEditorToolbarContainer.js
index bd028a130..6516200d9 100644
--- a/embark-ui/src/containers/TextEditorToolbarContainer.js
+++ b/embark-ui/src/containers/TextEditorToolbarContainer.js
@@ -5,8 +5,10 @@ import TextEditorToolbar from '../components/TextEditorToolbar';
 
 import {
   saveFile as saveFileAction,
-  removeFile as removeFileAction
+  removeFile as removeFileAction,
+  saveFolder as saveFolderAction
 } from '../actions';
+import { getRootDirname, getTheme } from '../reducers/selectors';
 
 class TextEditorToolbarContainer extends Component {
   save() {
@@ -22,6 +24,10 @@ class TextEditorToolbarContainer extends Component {
                               toggleShowHiddenFiles={this.props.toggleShowHiddenFiles}
                               openAsideTab={this.props.openAsideTab}
                               save={() => this.save()}
+                              saveFile={this.props.saveFile}
+                              theme={this.props.theme}
+                              saveFolder={this.props.saveFolder}
+                              rootDirname={this.props.rootDirname}
                               remove={() => this.remove()}
                               activeTab={this.props.activeTab} />;
   }
@@ -29,18 +35,29 @@ class TextEditorToolbarContainer extends Component {
 
 TextEditorToolbarContainer.propTypes = {
   currentFile: PropTypes.object,
+  theme: PropTypes.string,
   isContract: PropTypes.bool,
   saveFile: PropTypes.func,
+  saveFolder: PropTypes.func,
   removeFile: PropTypes.func,
+  rootDirname: PropTypes.string,
   toggleShowHiddenFiles: PropTypes.func,
   openAsideTab: PropTypes.func,
   activeTab: PropTypes.object
 };
 
+const mapStateToProps = (state) => {
+  return {
+    rootDirname: getRootDirname(state),
+    theme: getTheme(state)
+  }
+}
+
 export default connect(
-  null,
+  mapStateToProps,
   {
     saveFile: saveFileAction.request,
+    saveFolder: saveFolderAction.request,
     removeFile: removeFileAction.request
   },
 )(TextEditorToolbarContainer);
diff --git a/embark-ui/src/index.css b/embark-ui/src/index.css
index 42e00b980..6a9b47862 100644
--- a/embark-ui/src/index.css
+++ b/embark-ui/src/index.css
@@ -80,4 +80,12 @@
 
 .bg-black {
   background-color: #1C1C1C;
+}
+
+.dark-theme .modal-header span {
+  color: #ffffff;
+}
+
+.pointer {
+  cursor: pointer;
 }
\ No newline at end of file
diff --git a/embark-ui/src/reducers/selectors.js b/embark-ui/src/reducers/selectors.js
index 176fc9a3c..a9428fae2 100644
--- a/embark-ui/src/reducers/selectors.js
+++ b/embark-ui/src/reducers/selectors.js
@@ -169,6 +169,10 @@ export function getFiles(state) {
   return state.entities.files;
 }
 
+export function getRootDirname(state) {
+  return state.entities.files[0] && state.entities.files[0].dirname;
+}
+
 export function getCurrentFile(state) {
   return state.editorTabs.find(file => file.active) || {};
 }
diff --git a/embark-ui/src/sagas/index.js b/embark-ui/src/sagas/index.js
index bd705cd46..8890ee6ab 100644
--- a/embark-ui/src/sagas/index.js
+++ b/embark-ui/src/sagas/index.js
@@ -67,6 +67,7 @@ export const postEnsRecord = doRequest.bind(null, actions.ensRecords, api.postEn
 export const fetchFiles = doRequest.bind(null, actions.files, api.fetchFiles);
 export const fetchFile = doRequest.bind(null, actions.file, api.fetchFile);
 export const postFile = doRequest.bind(null, actions.saveFile, api.postFile);
+export const postFolder = doRequest.bind(null, actions.saveFolder, api.postFolder);
 export const deleteFile = doRequest.bind(null, actions.removeFile, api.deleteFile);
 export const fetchEthGas = doRequest.bind(null, actions.gasOracle, api.getEthGasAPI);
 export const startDebug = doRequest.bind(null, actions.startDebug, api.startDebug);
@@ -209,9 +210,18 @@ export function *watchPostFile() {
 }
 
 export function *watchPostFileSuccess() {
+  yield takeEvery(actions.SAVE_FILE[actions.SUCCESS], fetchFiles);
   yield takeEvery(actions.SAVE_FILE[actions.SUCCESS], addEditorTabs);
 }
 
+export function *watchPostFolder() {
+  yield takeEvery(actions.SAVE_FOLDER[actions.REQUEST], postFolder);
+}
+
+export function *watchPostFolderSuccess() {
+  yield takeEvery(actions.SAVE_FOLDER[actions.SUCCESS], fetchFiles);
+}
+
 export function *watchDeleteFile() {
   yield takeEvery(actions.REMOVE_FILE[actions.REQUEST], deleteFile);
 }
@@ -511,6 +521,7 @@ export default function *root() {
     fork(watchFetchFiles),
     fork(watchFetchFile),
     fork(watchPostFile),
+    fork(watchPostFolder),
     fork(watchDeleteFile),
     fork(watchDeleteFileSuccess),
     fork(watchFetchFileSuccess),
@@ -543,6 +554,7 @@ export default function *root() {
     fork(watchRemoveEditorTabs),
     fork(watchAddEditorTabsSuccess),
     fork(watchRemoveEditorTabsSuccess),
-    fork(watchPostFileSuccess)
+    fork(watchPostFileSuccess),
+    fork(watchPostFolderSuccess)
   ]);
 }
diff --git a/embark-ui/src/services/api.js b/embark-ui/src/services/api.js
index d23eabaf3..cd844493a 100644
--- a/embark-ui/src/services/api.js
+++ b/embark-ui/src/services/api.js
@@ -29,7 +29,7 @@ function request(type, path, params = {}) {
       'X-Embark-Cnonce': cnonce
     },
     ...(type === 'post' ? { data: params } : {}),
-    ...(type === 'get' ? { params: params.params } : {})
+    ...(['get', 'delete'].includes(type) ? { params: params.params } : {})
   }
 
   return axios(req)
@@ -169,6 +169,10 @@ export function postFile() {
   return post('/files', ...arguments);
 }
 
+export function postFolder() {
+  return post('/folders', ...arguments);
+}
+
 export function deleteFile(payload) {
   return destroy('/file', {params: payload, credentials: payload.credentials});
 }
diff --git a/embark-ui/src/utils/utils.js b/embark-ui/src/utils/utils.js
index c661eb6cd..51ddd1402 100644
--- a/embark-ui/src/utils/utils.js
+++ b/embark-ui/src/utils/utils.js
@@ -1,6 +1,8 @@
 import Convert from 'ansi-to-html';
 import qs from 'qs';
 
+import {DARK_THEME} from '../constants';
+
 export function last(array) {
   return array && array.length ? array[array.length - 1] : undefined;
 }
@@ -37,3 +39,5 @@ export function stripQueryToken(location) {
   );
   return _location;
 }
+
+export const isDarkTheme = (theme) => theme === DARK_THEME;
diff --git a/src/lib/modules/pipeline/index.js b/src/lib/modules/pipeline/index.js
index c6d97381d..76f523709 100644
--- a/src/lib/modules/pipeline/index.js
+++ b/src/lib/modules/pipeline/index.js
@@ -29,9 +29,12 @@ class Pipeline {
       'get',
       '/embark-api/file',
       (req, res) => {
-        if (!fs.existsSync(req.query.path) || !req.query.path.startsWith(fs.dappPath())) {
-          return res.send({error: 'Path is invalid'});
+        try {
+          this.apiGuardBadFile(req.query.path);
+        } catch (error) {
+          return res.send({error: error.message});
         }
+        
         const name = path.basename(req.query.path);
         const content = fs.readFileSync(req.query.path, 'utf8');
         res.send({name, content, path: req.query.path});
@@ -39,6 +42,22 @@ class Pipeline {
       }
     );
 
+    plugin.registerAPICall(
+      'post',
+      '/embark-api/folders',
+      (req, res) => {
+        try {
+          this.apiGuardBadFile(req.body.path);
+        } catch (error) {
+          return res.send({error: error.message});
+        }
+        
+        fs.mkdirpSync(req.body.path);
+        const name = path.basename(req.body.path);
+        res.send({name, path: req.body.path});
+      }
+    );
+
     plugin.registerAPICall(
       'post',
       '/embark-api/files',
@@ -60,7 +79,7 @@ class Pipeline {
       '/embark-api/file',
       (req, res) => {
         try {
-          this.apiGuardBadFile(req.query.path);
+          this.apiGuardBadFile(req.query.path, {ensureExists: true});
         } catch (error) {
           return res.send({error: error.message});
         }
@@ -100,10 +119,14 @@ class Pipeline {
     );
   }
 
-  apiGuardBadFile(pathToCheck) {
+  apiGuardBadFile(pathToCheck, options = {ensureExists: false}) {
     const dir = path.dirname(pathToCheck);
-    if (!fs.existsSync(pathToCheck) || !dir.startsWith(fs.dappPath())) {
-      throw new Error('Path is invalid');
+    const error = new Error('Path is invalid');
+    if (options.ensureExists && !fs.existsSync(pathToCheck)) {
+      throw error;
+    }
+    if (!dir.startsWith(fs.dappPath())) {
+      throw error;
     }
   }