diff --git a/src/calibre/gui2/dialogs/choose_library.py b/src/calibre/gui2/dialogs/choose_library.py
index fc08c3ee14..535c729419 100644
--- a/src/calibre/gui2/dialogs/choose_library.py
+++ b/src/calibre/gui2/dialogs/choose_library.py
@@ -180,8 +180,11 @@ class ChooseLibrary(QDialog, Ui_Dialog):
                 if e.errno != errno.EEXIST:
                     raise
         if not loc or not os.path.exists(loc) or not os.path.isdir(loc):
-            return error_dialog(self, _('Bad location'),
-                    _('%s is not an existing folder')%loc, show=True)
+            if action == 'new' and not os.path.exists(loc):
+                os.makedirs(loc)
+            else:
+                return error_dialog(self, _('Bad location'),
+                        _('%s is not an existing folder')%loc, show=True)
         if not self.check_action(action, loc):
             return
         self.location.save_history()