diff --git a/static/scripts/app/views/dir.js b/static/scripts/app/views/dir.js
index 27afb372f0..d334bef689 100644
--- a/static/scripts/app/views/dir.js
+++ b/static/scripts/app/views/dir.js
@@ -552,6 +552,7 @@ define([
 
             // Directory Operations
             events: {
+                'click #add-new li a': 'closeNewDropdown',
                 'click #add-new-dir': 'newDir',
                 'click #add-new-file': 'newCommonFile',
                 'click #add-new-md-file': 'newMdFile',
@@ -587,6 +588,10 @@ define([
                 return false;
             },
 
+            closeNewDropdown: function() {
+                this.new_dropdown.hide();
+            },
+
             newDir: function() {
                 var form = $(this.newDirTemplate()),
                     form_id = form.attr('id'),