diff --git a/src/vs/workbench/parts/files/electron-browser/fileActions.ts b/src/vs/workbench/parts/files/electron-browser/fileActions.ts
index d80f0742a5da33e915a1c980bd7720dfb4440775..72bfb7c5181502327dbc0cdf0ad0508c852a1b47 100644
--- a/src/vs/workbench/parts/files/electron-browser/fileActions.ts
+++ b/src/vs/workbench/parts/files/electron-browser/fileActions.ts
@@ -1081,6 +1081,11 @@ function incrementFileName(name: string, isFolder: boolean): string {
 		return name.replace(/(\d+)$/, (match: string, ...groups: any[]) => { return String(parseInt(groups[0]) + 1); });
 	}
 
+	// 1.folder=>2.folder
+	if (isFolder && name.match(/^(\d+)/)) {
+		return name.replace(/^(\d+)/, (match: string, ...groups: any[]) => { return String(parseInt(groups[0]) + 1); });
+	}
+
 	// file/folder=>file.1/folder.1
 	return strings.format('{0}.1', name);
 }