diff --git a/catalog/app/components/Dialog/Prompt.tsx b/catalog/app/components/Dialog/Prompt.tsx
new file mode 100644
index 00000000000..999d331fa6d
--- /dev/null
+++ b/catalog/app/components/Dialog/Prompt.tsx
@@ -0,0 +1,115 @@
+import * as R from 'ramda'
+import * as React from 'react'
+import * as M from '@material-ui/core'
+import * as Lab from '@material-ui/lab'
+
+interface DialogProps {
+  initialValue?: string
+  onCancel: () => void
+  onSubmit: (value: string) => void
+  open: boolean
+  title: string
+  validate: (value: string) => Error | undefined
+}
+
+function Dialog({
+  initialValue,
+  open,
+  onCancel,
+  onSubmit,
+  title,
+  validate,
+}: DialogProps) {
+  const [value, setValue] = React.useState(initialValue || '')
+  const [submitted, setSubmitted] = React.useState(false)
+  const error = React.useMemo(() => validate(value), [validate, value])
+  const handleChange = React.useCallback((event) => setValue(event.target.value), [])
+  const handleSubmit = React.useCallback(
+    (event) => {
+      event.preventDefault()
+      setSubmitted(true)
+      if (!error) onSubmit(value)
+    },
+    [error, onSubmit, value],
+  )
+  return (
+    <M.Dialog open={open} fullWidth maxWidth="sm">
+      <form onSubmit={handleSubmit}>
+        <M.DialogTitle>{title}</M.DialogTitle>
+        <M.DialogContent>
+          <M.TextField
+            autoFocus
+            fullWidth
+            margin="dense"
+            onChange={handleChange}
+            value={value}
+          />
+          {!!error && !!submitted && (
+            <Lab.Alert severity="error">{error.message}</Lab.Alert>
+          )}
+        </M.DialogContent>
+        <M.DialogActions>
+          <M.Button onClick={onCancel} color="primary" variant="outlined">
+            Cancel
+          </M.Button>
+          <M.Button
+            color="primary"
+            disabled={!!error && !!submitted}
+            onClick={handleSubmit}
+            variant="contained"
+          >
+            Submit
+          </M.Button>
+        </M.DialogActions>
+      </form>
+    </M.Dialog>
+  )
+}
+
+interface PromptProps {
+  initialValue?: string
+  onSubmit: (value: string) => void
+  title: string
+  validate: (value: string) => Error | undefined
+}
+
+export function usePrompt({ initialValue, title, onSubmit, validate }: PromptProps) {
+  const [key, setKey] = React.useState(0)
+  const [opened, setOpened] = React.useState(false)
+  const open = React.useCallback(() => {
+    setKey(R.inc)
+    setOpened(true)
+  }, [])
+  const close = React.useCallback(() => setOpened(false), [])
+  const handleSubmit = React.useCallback(
+    (value: string) => {
+      onSubmit(value)
+      close()
+    },
+    [close, onSubmit],
+  )
+  const render = React.useCallback(
+    () => (
+      <Dialog
+        {...{
+          initialValue,
+          key,
+          onCancel: close,
+          onSubmit: handleSubmit,
+          open: opened,
+          title,
+          validate,
+        }}
+      />
+    ),
+    [initialValue, key, close, handleSubmit, opened, title, validate],
+  )
+  return React.useMemo(
+    () => ({
+      close,
+      open,
+      render,
+    }),
+    [close, open, render],
+  )
+}
diff --git a/catalog/app/components/Dialog/index.ts b/catalog/app/components/Dialog/index.ts
new file mode 100644
index 00000000000..ff8f16cb3fe
--- /dev/null
+++ b/catalog/app/components/Dialog/index.ts
@@ -0,0 +1 @@
+export * from './Prompt'
diff --git a/catalog/app/containers/Bucket/Dir.tsx b/catalog/app/containers/Bucket/Dir.tsx
index 69173d0a573..04f8154f03e 100644
--- a/catalog/app/containers/Bucket/Dir.tsx
+++ b/catalog/app/containers/Bucket/Dir.tsx
@@ -1,4 +1,4 @@
-import { basename, join } from 'path'
+import { basename, join, extname } from 'path'
 
 import dedent from 'dedent'
 import * as R from 'ramda'
@@ -8,6 +8,8 @@ import * as M from '@material-ui/core'
 
 import { Crumb, copyWithoutSpaces, render as renderCrumbs } from 'components/BreadCrumbs'
 import type * as DG from 'components/DataGrid'
+import * as Dialog from 'components/Dialog'
+import { detect } from 'components/FileEditor/loader'
 import * as Bookmarks from 'containers/Bookmarks'
 import AsyncResult from 'utils/AsyncResult'
 import * as AWS from 'utils/AWS'
@@ -23,12 +25,63 @@ import type * as workflows from 'utils/workflows'
 import Code from './Code'
 import * as FileView from './FileView'
 import { Item, Listing, PrefixFilter } from './Listing'
+import Menu from './Menu'
 import * as PD from './PackageDialog'
 import * as Successors from './Successors'
 import Summary from './Summary'
 import { displayError } from './errors'
 import * as requests from './requests'
 
+interface DirectoryMenuProps {
+  bucket: string
+  className?: string
+  path: string
+}
+
+function DirectoryMenu({ bucket, path, className }: DirectoryMenuProps) {
+  const { urls } = NamedRoutes.use<RouteMap>()
+  const history = RRDom.useHistory()
+
+  const createFile = React.useCallback(
+    (name: string) => {
+      if (!name) return
+      history.push(urls.bucketFile(bucket, join(path, name), { edit: true }))
+    },
+    [bucket, history, path, urls],
+  )
+  const validateFileName = React.useCallback((value: string) => {
+    if (!value) {
+      return new Error('File name is required')
+    }
+    if (!detect(value).brace || extname(value) === '.' || !extname(value)) {
+      // TODO: get list of supported extensions from FileEditor
+      return new Error('Supported file formats are JSON, Markdown, YAML and text')
+    }
+  }, [])
+  const prompt = Dialog.usePrompt({
+    onSubmit: createFile,
+    initialValue: 'README.md',
+    title: 'Enter file name',
+    validate: validateFileName,
+  })
+  const menuItems = React.useMemo(
+    () => [
+      {
+        onClick: prompt.open,
+        title: 'Create file',
+      },
+    ],
+    [prompt.open],
+  )
+
+  return (
+    <>
+      {prompt.render()}
+      <Menu className={className} items={menuItems} />
+    </>
+  )
+}
+
 const useAddToBookmarksStyles = M.makeStyles((t) => ({
   root: {
     alignItems: 'baseline',
@@ -105,7 +158,17 @@ function AddToBookmarks({
 
 interface RouteMap {
   bucketDir: [bucket: string, path?: string, prefix?: string]
-  bucketFile: [bucket: string, path: string, version?: string]
+  bucketFile: [
+    bucket: string,
+    path: string,
+    options?: {
+      add?: boolean
+      edit?: boolean
+      mode?: string
+      next?: string
+      version?: string
+    },
+  ]
 }
 
 type Urls = NamedRoutes.Urls<RouteMap>
@@ -363,6 +426,7 @@ export default function Dir({
             label="Download directory"
           />
         )}
+        <DirectoryMenu className={classes.button} bucket={bucket} path={path} />
       </M.Box>
 
       {preferences?.ui?.blocks?.code && <Code gutterBottom>{code}</Code>}
diff --git a/catalog/app/containers/Bucket/FileView.js b/catalog/app/containers/Bucket/FileView.js
index a98c1aae4d5..0488a46444f 100644
--- a/catalog/app/containers/Bucket/FileView.js
+++ b/catalog/app/containers/Bucket/FileView.js
@@ -13,7 +13,7 @@ export * from './Meta'
 
 // TODO: move here everything that's reused btw Bucket/File, Bucket/PackageTree and Embed/File
 
-const useDownloadButtonStyles = M.makeStyles((t) => ({
+const useAdaptiveButtonStyles = M.makeStyles((t) => ({
   root: {
     flexShrink: 0,
     marginBottom: -3,
@@ -25,7 +25,7 @@ const useDownloadButtonStyles = M.makeStyles((t) => ({
 }))
 
 export function AdaptiveButtonLayout({ className, label, icon, ...props }) {
-  const classes = useDownloadButtonStyles()
+  const classes = useAdaptiveButtonStyles()
   const t = M.useTheme()
   const sm = M.useMediaQuery(t.breakpoints.down('sm'))
 
@@ -64,7 +64,7 @@ export function DownloadButton({ className, handle }) {
 }
 
 export function ViewModeSelector({ className, ...props }) {
-  const classes = useDownloadButtonStyles()
+  const classes = useAdaptiveButtonStyles()
   const t = M.useTheme()
   const sm = M.useMediaQuery(t.breakpoints.down('sm'))
   return (
diff --git a/catalog/app/containers/Bucket/Menu.tsx b/catalog/app/containers/Bucket/Menu.tsx
new file mode 100644
index 00000000000..41500c34472
--- /dev/null
+++ b/catalog/app/containers/Bucket/Menu.tsx
@@ -0,0 +1,46 @@
+import * as React from 'react'
+
+import * as M from '@material-ui/core'
+
+interface MenuProps {
+  className?: string
+  items: {
+    onClick: () => void
+    title: string
+  }[]
+}
+
+export default function Menu({ className, items }: MenuProps) {
+  const [anchorEl, setAnchorEl] = React.useState<HTMLElement | null>(null)
+
+  const handleOpen = React.useCallback(
+    (event) => setAnchorEl(event.target),
+    [setAnchorEl],
+  )
+
+  const handleClose = React.useCallback(() => setAnchorEl(null), [setAnchorEl])
+
+  const mkClickHandler = React.useCallback(
+    (onClick: () => void) => () => {
+      onClick()
+      setAnchorEl(null)
+    },
+    [],
+  )
+
+  return (
+    <>
+      <M.IconButton className={className} onClick={handleOpen} size="small">
+        <M.Icon>more_vert</M.Icon>
+      </M.IconButton>
+
+      <M.Menu anchorEl={anchorEl} open={!!anchorEl} onClose={handleClose}>
+        {items.map(({ onClick, title }) => (
+          <M.MenuItem key={title} onClick={mkClickHandler(onClick)}>
+            {title}
+          </M.MenuItem>
+        ))}
+      </M.Menu>
+    </>
+  )
+}
diff --git a/catalog/app/containers/Bucket/PackageTree/PackageTree.tsx b/catalog/app/containers/Bucket/PackageTree/PackageTree.tsx
index 24f8fa4e18c..0d817fdf119 100644
--- a/catalog/app/containers/Bucket/PackageTree/PackageTree.tsx
+++ b/catalog/app/containers/Bucket/PackageTree/PackageTree.tsx
@@ -395,9 +395,6 @@ function DirDisplay({
           const downloadPath = path
             ? `package/${bucket}/${name}/${hash}/${path}`
             : `package/${bucket}/${name}/${hash}`
-          const hasRevisionMenu =
-            preferences?.ui?.actions?.deleteRevision ||
-            preferences?.ui?.actions?.openInDesktop
           // TODO: disable if nothing to revise on desktop
           const hasReviseButton = preferences?.ui?.actions?.revisePackage
 
@@ -431,13 +428,11 @@ function DirDisplay({
                   onClick={openInDesktopState.confirm}
                   path={downloadPath}
                 />
-                {hasRevisionMenu && (
-                  <RevisionMenu
-                    className={classes.button}
-                    onDelete={confirmDelete}
-                    onDesktop={openInDesktopState.confirm}
-                  />
-                )}
+                <RevisionMenu
+                  className={classes.button}
+                  onDelete={confirmDelete}
+                  onDesktop={openInDesktopState.confirm}
+                />
               </TopBar>
               {preferences?.ui?.blocks?.code && (
                 <PkgCode {...{ ...packageHandle, hashOrTag, path }} />
diff --git a/catalog/app/containers/Bucket/PackageTree/RevisionMenu.tsx b/catalog/app/containers/Bucket/PackageTree/RevisionMenu.tsx
index 5308a8da608..bf98fb0ced1 100644
--- a/catalog/app/containers/Bucket/PackageTree/RevisionMenu.tsx
+++ b/catalog/app/containers/Bucket/PackageTree/RevisionMenu.tsx
@@ -1,9 +1,10 @@
 import * as React from 'react'
-import * as M from '@material-ui/core'
 
 import * as BucketPreferences from 'utils/BucketPreferences'
 import * as Config from 'utils/Config'
 
+import Menu from '../Menu'
+
 interface RevisionMenuProps {
   className: string
   onDelete: () => void
@@ -17,42 +18,25 @@ export default function RevisionMenu({
 }: RevisionMenuProps) {
   const preferences = BucketPreferences.use()
   const { desktop }: { desktop: boolean } = Config.use()
-  const [anchorEl, setAnchorEl] = React.useState<HTMLElement | null>(null)
-
-  const handleOpen = React.useCallback(
-    (event) => {
-      setAnchorEl(event.target)
-    },
-    [setAnchorEl],
-  )
-
-  const handleClose = React.useCallback(() => {
-    setAnchorEl(null)
-  }, [setAnchorEl])
-
-  const handleDeleteClick = React.useCallback(() => {
-    onDelete()
-    setAnchorEl(null)
-  }, [onDelete, setAnchorEl])
-  const handleDesktopClick = React.useCallback(() => {
-    onDesktop()
-    setAnchorEl(null)
-  }, [onDesktop, setAnchorEl])
-
-  return (
-    <>
-      <M.IconButton className={className} onClick={handleOpen} size="small">
-        <M.Icon>more_vert</M.Icon>
-      </M.IconButton>
 
-      <M.Menu anchorEl={anchorEl} open={!!anchorEl} onClose={handleClose}>
-        {preferences?.ui?.actions?.deleteRevision && (
-          <M.MenuItem onClick={handleDeleteClick}>Delete revision</M.MenuItem>
-        )}
-        {preferences?.ui?.actions?.openInDesktop && !desktop && (
-          <M.MenuItem onClick={handleDesktopClick}>Open in Teleport</M.MenuItem>
-        )}
-      </M.Menu>
-    </>
-  )
+  const items = React.useMemo(() => {
+    const menu = []
+    if (preferences?.ui?.actions?.deleteRevision) {
+      menu.push({
+        onClick: onDelete,
+        title: 'Delete revision',
+      })
+    }
+    if (preferences?.ui?.actions?.openInDesktop && !desktop) {
+      menu.push({
+        onClick: onDesktop,
+        title: 'Open in Teleport',
+      })
+    }
+    return menu
+  }, [desktop, onDelete, onDesktop, preferences])
+
+  if (!items.length) return null
+
+  return <Menu className={className} items={items} />
 }
diff --git a/catalog/app/containers/Bucket/Successors.tsx b/catalog/app/containers/Bucket/Successors.tsx
index fe90fa9bc91..32b514f5a88 100644
--- a/catalog/app/containers/Bucket/Successors.tsx
+++ b/catalog/app/containers/Bucket/Successors.tsx
@@ -223,6 +223,7 @@ interface ButtonInnerProps {
   onClick: React.MouseEventHandler<HTMLButtonElement>
 }
 
+// TODO: Replace by FileView.AdaptiveButtonLayout
 function ButtonInner({ children, className, onClick }: ButtonInnerProps) {
   const t = M.useTheme()
   const sm = M.useMediaQuery(t.breakpoints.down('sm'))
diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index cfd046d8801..b6074f1ffac 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -26,6 +26,7 @@
 * [Added] Add missing README to package ([#2960](https://github.com/quiltdata/quilt/pull/2960), [#2979](https://github.com/quiltdata/quilt/pull/2979))
 * [Added] View and copy full Athena query by expanding table row ([2993](https://github.com/quiltdata/quilt/pull/2993))
 * [Added] Create packages from Athena query results ([#3004](https://github.com/quiltdata/quilt/pull/3004))
+* [Added] Add "Create text file" menu ([#3017](https://github.com/quiltdata/quilt/pull/3017))
 * [Fixed] Fix package creation in S3 buckets with SSE-KMS enabled ([#2754](https://github.com/quiltdata/quilt/pull/2754))
 * [Fixed] Fix creation of packages with large (4+ GiB) files ([#2933](https://github.com/quiltdata/quilt/pull/2933))
 * [Changed] Clean up home page ([#2780](https://github.com/quiltdata/quilt/pull/2780)).