diff --git a/idea/src/META-INF/plugin.xml b/idea/src/META-INF/plugin.xml
index 3fdd12e8d0d..76cd6b1c581 100644
--- a/idea/src/META-INF/plugin.xml
+++ b/idea/src/META-INF/plugin.xml
@@ -666,6 +666,8 @@
 
     <annotationSupport language="kotlin" implementationClass="com.intellij.psi.impl.source.tree.java.JavaAnnotationSupport"/>
 
+    <createFromTemplateHandler implementation="org.jetbrains.kotlin.idea.actions.KotlinCreateFromTemplateHandler"/>
+
     <intentionAction>
       <className>org.jetbrains.kotlin.idea.intentions.IfNullToElvisIntention</className>
       <category>Kotlin</category>
diff --git a/idea/src/org/jetbrains/kotlin/idea/actions/KotlinCreateFromTemplateHandler.kt b/idea/src/org/jetbrains/kotlin/idea/actions/KotlinCreateFromTemplateHandler.kt
new file mode 100644
index 00000000000..e2acfe83381
--- /dev/null
+++ b/idea/src/org/jetbrains/kotlin/idea/actions/KotlinCreateFromTemplateHandler.kt
@@ -0,0 +1,41 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.actions
+
+import com.intellij.ide.fileTemplates.DefaultCreateFromTemplateHandler
+import com.intellij.ide.fileTemplates.FileTemplate
+import org.jetbrains.kotlin.idea.KotlinFileType
+import org.jetbrains.kotlin.idea.core.quoteIfNeeded
+
+class KotlinCreateFromTemplateHandler : DefaultCreateFromTemplateHandler() {
+    override fun handlesTemplate(template: FileTemplate) = template.isTemplateOfType(KotlinFileType.INSTANCE)
+
+    override fun prepareProperties(props: MutableMap<String, Any>) {
+        val packageName = props[FileTemplate.ATTRIBUTE_PACKAGE_NAME] as? String
+        if (packageName != null) {
+            props[FileTemplate.ATTRIBUTE_PACKAGE_NAME] = packageName
+                    .split('.')
+                    .map { it.quoteIfNeeded() }
+                    .joinToString(".")
+        }
+
+        val name = props[FileTemplate.ATTRIBUTE_NAME] as? String
+        if (name != null) {
+            props[FileTemplate.ATTRIBUTE_NAME] = name.quoteIfNeeded()
+        }
+    }
+}
\ No newline at end of file
diff --git a/idea/src/org/jetbrains/kotlin/idea/actions/NewKotlinFileAction.kt b/idea/src/org/jetbrains/kotlin/idea/actions/NewKotlinFileAction.kt
index a7f2a5816e5..039a30fd9bd 100644
--- a/idea/src/org/jetbrains/kotlin/idea/actions/NewKotlinFileAction.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/actions/NewKotlinFileAction.kt
@@ -18,18 +18,25 @@ package org.jetbrains.kotlin.idea.actions
 
 import com.intellij.ide.actions.CreateFileFromTemplateAction
 import com.intellij.ide.actions.CreateFileFromTemplateDialog
+import com.intellij.ide.fileTemplates.FileTemplate
+import com.intellij.ide.fileTemplates.FileTemplateManager
+import com.intellij.ide.fileTemplates.actions.AttributesDefaults
+import com.intellij.ide.fileTemplates.ui.CreateFromTemplateDialog
 import com.intellij.openapi.actionSystem.DataContext
 import com.intellij.openapi.actionSystem.LangDataKeys
 import com.intellij.openapi.actionSystem.PlatformDataKeys
 import com.intellij.openapi.module.ModuleUtilCore
 import com.intellij.openapi.project.DumbAware
+import com.intellij.openapi.project.DumbService
 import com.intellij.openapi.project.Project
 import com.intellij.openapi.roots.ProjectRootManager
 import com.intellij.psi.PsiDirectory
 import com.intellij.psi.PsiFile
+import com.intellij.util.IncorrectOperationException
 import org.jetbrains.kotlin.idea.KotlinFileType
 import org.jetbrains.kotlin.idea.KotlinIcons
 import org.jetbrains.kotlin.idea.configuration.showConfigureKotlinNotificationIfNeeded
+import java.util.*
 
 class NewKotlinFileAction
     : CreateFileFromTemplateAction("Kotlin File/Class",
@@ -74,4 +81,59 @@ class NewKotlinFileAction
     override fun equals(obj: Any?): Boolean {
         return obj is NewKotlinFileAction
     }
+
+    override fun createFileFromTemplate(name: String, template: FileTemplate, dir: PsiDirectory): PsiFile? {
+        val directorySeparators = if (template.name == "Kotlin File") arrayOf('/', '\\') else arrayOf('/', '\\', '.')
+        val (className, targetDir) = findOrCreateTarget(dir, name, directorySeparators)
+
+        val service = DumbService.getInstance(dir.project)
+        service.isAlternativeResolveEnabled = true
+        try {
+            return createFromTemplate(targetDir, className, template)
+        }
+        finally {
+            service.isAlternativeResolveEnabled = false
+        }
+    }
+
+    private fun findOrCreateTarget(dir: PsiDirectory, name: String, directorySeparators: Array<Char>): Pair<String, PsiDirectory> {
+        var className = name.removeSuffix(".kt")
+        var targetDir = dir
+
+        for (splitChar in directorySeparators) {
+            if (splitChar in className) {
+                val names = className.trim().split(splitChar)
+
+                for (dirName in names.dropLast(1)) {
+                    targetDir = targetDir.findSubdirectory(dirName) ?: targetDir.createSubdirectory(dirName)
+                }
+
+                className = names.last()
+                break
+            }
+        }
+        return Pair(className, targetDir)
+    }
+
+    private fun createFromTemplate(dir: PsiDirectory, className: String, template: FileTemplate): PsiFile? {
+        val project = dir.project
+        val defaultProperties = FileTemplateManager.getInstance(project).defaultProperties
+
+        val properties = Properties(defaultProperties)
+
+        val element = try {
+            CreateFromTemplateDialog(project, dir, template,
+                                     AttributesDefaults(className).withFixedName(true),
+                                     properties).create()
+        }
+        catch (e: IncorrectOperationException) {
+            throw e
+        }
+        catch (e: Exception) {
+            LOG.error(e)
+            return null
+        }
+
+        return element.containingFile
+    }
 }