diff --git a/RELEASE-NOTES.md b/RELEASE-NOTES.md
index 4d7ed1e1..f15e1392 100644
--- a/RELEASE-NOTES.md
+++ b/RELEASE-NOTES.md
@@ -34,6 +34,7 @@ Project Page: https://github.com/a2stuff/a2d
 * Remove Special > Lock and Special > Unlock commands.
 * Allow selection to remain in inactive windows.
 * Fix off-by-one in used/free values in window headers.
+* Fix updating of window headers following File > New Folder.
 
 ### Selector
 
diff --git a/desktop/main.s b/desktop/main.s
index b32ec7e5..d8a806b1 100644
--- a/desktop/main.s
+++ b/desktop/main.s
@@ -2395,6 +2395,7 @@ phase:  .byte   0
 a_path: .addr   0
 .endparams
 
+;;; Assert: There is an active window
 .proc CmdNewFolderImpl
 
         ;; access = destroy/rename/write/read
@@ -2403,8 +2404,7 @@ a_path: .addr   0
 start:  copy    #NewFolderDialogState::open, new_folder_dialog_params::phase
         jsr     NewFolderDialogProc
 
-L4FC6:  lda     active_window_id
-        beq     done            ; command should not be active without a window
+retry:  lda     active_window_id
         jsr     GetWindowPath
         stax    new_folder_dialog_params::a_path
 
@@ -2425,16 +2425,18 @@ L4FC6:  lda     active_window_id
 
         ;; Failure
         jsr     ShowAlert
-        jmp     L4FC6
+        jmp     retry
 
 success:
         copy    #NewFolderDialogState::close, new_folder_dialog_params::phase
         jsr     NewFolderDialogProc
-        param_call FindLastPathSegment, src_path_buf
-        sty     src_path_buf
-        jsr     FindWindowForSrcPath
-        beq     done
 
+        ;; Update cached used/free for all same-volume windows
+        lda     active_window_id
+        jsr     GetWindowPath
+        jsr     UpdateUsedFreeViaPath
+
+        lda     active_window_id
         jsr     SelectAndRefreshWindowOrClose
         bne     done
 
diff --git a/res/notes/testplan.md b/res/notes/testplan.md
index a5a75b24..8f5fa8f0 100644
--- a/res/notes/testplan.md
+++ b/res/notes/testplan.md
@@ -92,6 +92,7 @@
 * Open a folder with only one item. File > New Folder. Enter a name and click OK. Verify that the window header says "2 Items"
 
 * Open window for an otherwise empty RAMDisk volume. Note the "K in disk" and "K free" values in the header. File > New Folder. Enter a name and click OK. Verify that the "K in disk" increases by 0 or 1, and that the "K free" decreases by 0 or 1. File > New Folder. Enter another name and click OK. Verify that the "K in disk" increases by 0 or 1, and that the "K free" decreases by 0 or 1.
+* Open two windows for different volumes. Note the "items", "K in disk" and "K free" values in the header of the second window. File > New Folder. Enter a name and click OK. Verify that the "items" value increases by one, and "K in disk" increases by 0 or 1, and that the "K free" decreases by 0 or 1.
 
 * Launch DeskTop. Open a window for a removable disk. Quit DeskTop. Remove the disk. Restart DeskTop. Open a different volume's window. Close it. Open it again. Verify that items in the File menu needing a window (New Folder, Close, etc) are correctly enabled.