diff --git a/README.md b/README.md
index a3e1f25ea99..4291787379e 100644
--- a/README.md
+++ b/README.md
@@ -57,6 +57,7 @@ let g:nvim_tree_icon_padding = ' ' "one space by default, used for rendering the
 let g:nvim_tree_symlink_arrow = ' >> ' " defaults to ' ➛ '. used as a separator between symlinks' source and target.
 let g:nvim_tree_update_cwd = 1 "0 by default, will update the tree cwd when changing nvim's directory (DirChanged event). Behaves strangely with autochdir set.
 let g:nvim_tree_respect_buf_cwd = 1 "0 by default, will change cwd of nvim-tree to that of new buffer's when opening nvim-tree.
+let g:nvim_tree_create_in_closed_folder = 0 "1 by default, When creating files, sets the path of a file when cursor is on a closed folder to the parent folder when 0, and inside the folder when 1.
 let g:nvim_tree_refresh_wait = 500 "1000 by default, control how often the tree can be refreshed, 1000 means the tree can be refresh once per 1000ms.
 let g:nvim_tree_window_picker_exclude = {
     \   'filetype': [
diff --git a/doc/nvim-tree-lua.txt b/doc/nvim-tree-lua.txt
index 66a433968e9..bba36bb08f5 100644
--- a/doc/nvim-tree-lua.txt
+++ b/doc/nvim-tree-lua.txt
@@ -349,6 +349,12 @@ WARNING: Behaves strangely with autochdir set.
 Can be 0 or 1. 0 by default.
 Will change cwd of nvim-tree to that of new buffer's when opening nvim-tree.
 
+|g:nvim_tree_create_in_closed_folder|     *g:nvim_tree_create_in_closed_folder*
+
+Can be 0 or 1. 1 by default.
+Creating a file when the cursor is on a closed folder will set the
+path to be inside the closed folder when 1, and on the parent folder when 0.
+
 ==============================================================================
 INFORMATIONS				        *nvim-tree-info*
 
diff --git a/lua/nvim-tree/fs.lua b/lua/nvim-tree/fs.lua
index 84e3e732b08..e71ecad5849 100644
--- a/lua/nvim-tree/fs.lua
+++ b/lua/nvim-tree/fs.lua
@@ -57,8 +57,10 @@ function M.create(node)
     }
   end
 
+  local node_is_open = vim.g.nvim_tree_create_in_closed_folder == 1 or node.open
+
   local add_into
-  if node.entries ~= nil then
+  if node.entries ~= nil and node_is_open then
     add_into = utils.path_add_trailing(node.absolute_path)
   else
     add_into = node.absolute_path:sub(0, -(#node.name + 1))