diff --git a/src/vs/workbench/services/dialogs/browser/remoteFileDialog.ts b/src/vs/workbench/services/dialogs/browser/remoteFileDialog.ts
index 28fb4787d24a103d47b097c7721a08b4a89ac0fe..9354baad05866dcef20f04ccad6e9b65a5918052 100644
--- a/src/vs/workbench/services/dialogs/browser/remoteFileDialog.ts
+++ b/src/vs/workbench/services/dialogs/browser/remoteFileDialog.ts
@@ -101,7 +101,7 @@ export class RemoteFileDialog {
 	}
 
 	public async showOpenDialog(options: IOpenDialogOptions = {}): Promise<URI | undefined> {
-		this.scheme = this.getScheme(options.availableFileSystems);
+		this.scheme = this.getScheme(options.availableFileSystems, options.defaultUri);
 		this.userHome = await this.getUserHome();
 		const newOptions = await this.getOptions(options);
 		if (!newOptions) {
@@ -112,7 +112,7 @@ export class RemoteFileDialog {
 	}
 
 	public async showSaveDialog(options: ISaveDialogOptions): Promise<URI | undefined> {
-		this.scheme = this.getScheme(options.availableFileSystems);
+		this.scheme = this.getScheme(options.availableFileSystems, options.defaultUri);
 		this.userHome = await this.getUserHome();
 		this.requiresTrailing = true;
 		const newOptions = await this.getOptions(options, true);
@@ -157,8 +157,14 @@ export class RemoteFileDialog {
 		return resources.toLocalResource(URI.from({ scheme: this.scheme, path }), this.scheme === Schemas.file ? undefined : this.remoteAuthority);
 	}
 
-	private getScheme(available: string[] | undefined): string {
-		return available ? available[0] : Schemas.file;
+	private getScheme(available: string[] | undefined, defaultUri: URI | undefined): string {
+		if (available) {
+			if (defaultUri && (available.indexOf(defaultUri.scheme) >= 0)) {
+				return defaultUri.scheme;
+			}
+			return available[0];
+		}
+		return Schemas.file;
 	}
 
 	private async getRemoteAgentEnvironment(): Promise<IRemoteAgentEnvironment | null> {
@@ -215,7 +221,7 @@ export class RemoteFileDialog {
 			this.filePickBox.autoFocusOnList = false;
 			this.filePickBox.ignoreFocusOut = true;
 			this.filePickBox.ok = true;
-			if (this.options && this.options.availableFileSystems && (this.options.availableFileSystems.length > 1) && (this.options.availableFileSystems.indexOf(Schemas.file) > -1)) {
+			if ((this.scheme !== Schemas.file) && this.options && this.options.availableFileSystems && (this.options.availableFileSystems.length > 1) && (this.options.availableFileSystems.indexOf(Schemas.file) > -1)) {
 				this.filePickBox.customButton = true;
 				this.filePickBox.customLabel = nls.localize('remoteFileDialog.local', 'Show Local');
 				let action;