diff --git a/ui/src/App.js b/ui/src/App.js
index 3677da3b0..4b4de694d 100644
--- a/ui/src/App.js
+++ b/ui/src/App.js
@@ -17,6 +17,7 @@ import { albumViewReducer } from './album/albumState'
 import config from './config'
 import customRoutes from './routes'
 import themeReducer from './personal/themeReducer'
+import { newPlaylistDialogReducer } from './dialogs/dialogState'
 import createAdminStore from './store/createAdminStore'
 import { i18nProvider } from './i18n'
 
@@ -32,6 +33,7 @@ const App = () => (
         queue: playQueueReducer,
         albumView: albumViewReducer,
         theme: themeReducer,
+        newPlaylistDialog: newPlaylistDialogReducer,
       },
     })}
   >
diff --git a/ui/src/common/AddToPlaylistMenu.js b/ui/src/common/AddToPlaylistMenu.js
index 404e2a134..4d993448b 100644
--- a/ui/src/common/AddToPlaylistMenu.js
+++ b/ui/src/common/AddToPlaylistMenu.js
@@ -1,12 +1,16 @@
 import React from 'react'
+import { useDispatch } from 'react-redux'
+import PropTypes from 'prop-types'
 import {
   useDataProvider,
   useGetList,
   useNotify,
   useTranslate,
 } from 'react-admin'
-import { MenuItem } from '@material-ui/core'
-import PropTypes from 'prop-types'
+import { MenuItem, Divider } from '@material-ui/core'
+import NewPlaylistIcon from '@material-ui/icons/Add'
+import { openNewPlaylist } from '../dialogs/dialogState'
+import NewPlaylistDialog from '../dialogs/NewPlaylist'
 
 export const addTracksToPlaylist = (dataProvider, selectedIds, playlistId) =>
   dataProvider
@@ -29,6 +33,7 @@ export const addAlbumToPlaylist = (dataProvider, albumId, playlistId) =>
 const AddToPlaylistMenu = React.forwardRef(
   ({ selectedIds, albumId, onClose, onItemAdded }, ref) => {
     const notify = useNotify()
+    const dispatch = useDispatch()
     const translate = useTranslate()
     const dataProvider = useDataProvider()
     const { ids, data, loaded } = useGetList(
@@ -42,48 +47,55 @@ const AddToPlaylistMenu = React.forwardRef(
       return <MenuItem>Loading...</MenuItem>
     }
 
-    // TODO: This is temporary, while we don't have the "New Playlist" option in the menu
-    if (ids.length === 0) {
-      return (
-        <MenuItem
-          onClick={(e) => {
-            e.stopPropagation()
-            onClose && onClose(e)
-          }}
-        >
-          {translate('message.noPlaylistsAvailable')}
-        </MenuItem>
-      )
+    const addToPlaylist = (playlistId) => {
+      const add = albumId
+        ? addAlbumToPlaylist(dataProvider, albumId, playlistId)
+        : addTracksToPlaylist(dataProvider, selectedIds, playlistId)
+
+      add
+        .then((len) => {
+          notify('message.songsAddedToPlaylist', 'info', { smart_count: len })
+          onItemAdded(playlistId)
+        })
+        .catch(() => {
+          notify('ra.page.error', 'warning')
+        })
     }
 
     const handleItemClick = (e) => {
       e.preventDefault()
       const playlistId = e.target.getAttribute('value')
       if (playlistId !== '') {
-        const add = albumId
-          ? addAlbumToPlaylist(dataProvider, albumId, playlistId)
-          : addTracksToPlaylist(dataProvider, selectedIds, playlistId)
-
-        add
-          .then((len) => {
-            notify('message.songsAddedToPlaylist', 'info', { smart_count: len })
-            onItemAdded && onItemAdded(playlistId, selectedIds)
-          })
-          .catch(() => {
-            notify('ra.page.error', 'warning')
-          })
+        addToPlaylist(playlistId)
       }
       e.stopPropagation()
-      onClose && onClose(e)
+      onClose(e)
+    }
+
+    const handleOpenDialog = (e) => {
+      e.preventDefault()
+      dispatch(openNewPlaylist(albumId, selectedIds))
+      e.stopPropagation()
+      onClose(e)
     }
 
     return (
       <>
+        <Divider component="li" />
         {ids.map((id) => (
           <MenuItem value={id} key={id} onClick={handleItemClick}>
             {data[id].name}
           </MenuItem>
         ))}
+        <MenuItem
+          value="newPlaylist"
+          key="newPlaylist"
+          onClick={handleOpenDialog}
+        >
+          {<NewPlaylistIcon fontSize="small" />}&nbsp;
+          {translate('resources.playlist.actions.newPlaylist')}
+        </MenuItem>
+        <NewPlaylistDialog onSubmit={onItemAdded} />
       </>
     )
   }
@@ -98,6 +110,8 @@ AddToPlaylistMenu.propTypes = {
 
 AddToPlaylistMenu.defaultProps = {
   selectedIds: [],
+  onClose: () => {},
+  onItemAdded: () => {},
 }
 
 export default AddToPlaylistMenu
diff --git a/ui/src/dialogs/NewPlaylist.js b/ui/src/dialogs/NewPlaylist.js
new file mode 100644
index 000000000..891c4bd08
--- /dev/null
+++ b/ui/src/dialogs/NewPlaylist.js
@@ -0,0 +1,120 @@
+import React from 'react'
+import { useDispatch, useSelector } from 'react-redux'
+import {
+  useCreate,
+  useDataProvider,
+  useTranslate,
+  useNotify,
+} from 'react-admin'
+import {
+  Button,
+  TextField,
+  Dialog,
+  DialogActions,
+  DialogContent,
+  DialogTitle,
+} from '@material-ui/core'
+import PropTypes from 'prop-types'
+import { closeNewPlaylist } from './dialogState'
+import {
+  addAlbumToPlaylist,
+  addTracksToPlaylist,
+} from '../common/AddToPlaylistMenu'
+
+const NewPlaylistDialog = ({ onCancel, onSubmit }) => {
+  const { open, albumId, selectedIds } = useSelector(
+    (state) => state.newPlaylistDialog
+  )
+  const dispatch = useDispatch()
+  const translate = useTranslate()
+  const notify = useNotify()
+  const [value, setValue] = React.useState('')
+  const dataProvider = useDataProvider()
+  const [create] = useCreate(
+    'playlist',
+    { name: value },
+    {
+      onSuccess: ({ data }) => {
+        addToPlaylist(data.id)
+      },
+      onFailure: (error) => notify(`Error: ${error.message}`, 'warning'),
+    }
+  )
+
+  const addToPlaylist = (playlistId) => {
+    const add = albumId
+      ? addAlbumToPlaylist(dataProvider, albumId, playlistId)
+      : addTracksToPlaylist(dataProvider, selectedIds, playlistId)
+
+    add
+      .then((len) => {
+        notify('message.songsAddedToPlaylist', 'info', { smart_count: len })
+        onSubmit(value)
+      })
+      .catch(() => {
+        notify('ra.page.error', 'warning')
+      })
+  }
+
+  const handleSubmit = (e) => {
+    create()
+    dispatch(closeNewPlaylist())
+    e.stopPropagation()
+  }
+
+  const handleChange = (e) => {
+    setValue(e.target.value)
+  }
+
+  const handleClickClose = (e) => {
+    onCancel(e)
+    dispatch(closeNewPlaylist())
+    e.stopPropagation()
+  }
+
+  return (
+    <div>
+      <Dialog
+        disableBackdropClick
+        open={open}
+        onClose={handleClickClose}
+        aria-labelledby="form-dialog-new-playlist"
+      >
+        <DialogTitle id="form-dialog-new-playlist">
+          {translate('resources.playlist.actions.newPlaylist')}
+        </DialogTitle>
+        <DialogContent>
+          <TextField
+            autoFocus
+            margin="dense"
+            id="name"
+            label={translate('resources.playlist.fields.name')}
+            type="text"
+            fullWidth
+            onChange={handleChange}
+          />
+        </DialogContent>
+        <DialogActions>
+          <Button onClick={handleClickClose} color="primary">
+            {translate('ra.action.cancel')}
+          </Button>
+          <Button onClick={handleSubmit} color="primary">
+            {translate('ra.action.create')}
+          </Button>
+        </DialogActions>
+      </Dialog>
+    </div>
+  )
+}
+
+NewPlaylistDialog.propTypes = {
+  onCancel: PropTypes.func,
+  onSubmit: PropTypes.func,
+}
+
+NewPlaylistDialog.defaultProps = {
+  onCancel: () => {},
+  onSubmit: () => {},
+}
+
+export default NewPlaylistDialog
diff --git a/ui/src/dialogs/dialogState.js b/ui/src/dialogs/dialogState.js
new file mode 100644
index 000000000..4d77a930b
--- /dev/null
+++ b/ui/src/dialogs/dialogState.js
@@ -0,0 +1,36 @@
+const NEW_PLAYLIST_OPEN = 'NEW_PLAYLIST_OPEN'
+const NEW_PLAYLIST_CLOSE = 'NEW_PLAYLIST_CLOSE'
+
+const openNewPlaylist = (albumId, selectedIds) => ({
+  type: NEW_PLAYLIST_OPEN,
+  albumId,
+  selectedIds,
+})
+
+const closeNewPlaylist = () => ({
+  type: NEW_PLAYLIST_CLOSE,
+})
+
+const newPlaylistDialogReducer = (
+  previousState = {
+    open: false,
+  },
+  payload
+) => {
+  const { type } = payload
+  switch (type) {
+    case NEW_PLAYLIST_OPEN:
+      return {
+        ...previousState,
+        open: true,
+        albumId: payload.albumId,
+        selectedIds: payload.selectedIds,
+      }
+    case NEW_PLAYLIST_CLOSE:
+      return { ...previousState, open: false }
+    default:
+      return previousState
+  }
+}
+
+export { openNewPlaylist, closeNewPlaylist, newPlaylistDialogReducer }
diff --git a/ui/src/i18n/en.json b/ui/src/i18n/en.json
index fc1bee328..274390ca5 100644
--- a/ui/src/i18n/en.json
+++ b/ui/src/i18n/en.json
@@ -69,7 +69,8 @@
                 "createdAt": "Created at"
             },
             "actions": {
-                "selectPlaylist": "Add songs to playlist:"
+                "selectPlaylist": "Add songs to playlist:",
+                "newPlaylist": "New playlist"
             }
         },
         "user": {