diff --git a/src/vs/workbench/services/dialogs/electron-browser/dialogService.ts b/src/vs/workbench/services/dialogs/electron-browser/dialogService.ts
index 4cc73dadcfe53b2f6b43ecb13a3bdb51864599ab..68d1589ebca6fa3b70b4a9e52d3088fab9af99f8 100644
--- a/src/vs/workbench/services/dialogs/electron-browser/dialogService.ts
+++ b/src/vs/workbench/services/dialogs/electron-browser/dialogService.ts
@@ -295,6 +295,7 @@ export class FileDialogService implements IFileDialogService {
 	showSaveDialog(options: ISaveDialogOptions): Promise<URI | undefined> {
 		const schema = this.getFileSystemSchema(options);
 		if (schema !== Schemas.file) {
+			options.availableFileSystems = [schema, Schemas.file]; // always allow file as well
 			return this.saveRemoteResource(options);
 		}
 
diff --git a/src/vs/workbench/services/dialogs/electron-browser/remoteFileDialog.ts b/src/vs/workbench/services/dialogs/electron-browser/remoteFileDialog.ts
index ea617b1c68ac6c5de2cae9717c2d096a5cb9dc4f..51c7a6b149e8141cd73e5a440c6f3c8e5a612a64 100644
--- a/src/vs/workbench/services/dialogs/electron-browser/remoteFileDialog.ts
+++ b/src/vs/workbench/services/dialogs/electron-browser/remoteFileDialog.ts
@@ -10,7 +10,7 @@ import { IFileService } from 'vs/platform/files/common/files';
 import { IQuickInputService, IQuickPickItem, IQuickPick } from 'vs/platform/quickinput/common/quickInput';
 import { URI } from 'vs/base/common/uri';
 import { isWindows } from 'vs/base/common/platform';
-import { ISaveDialogOptions, IOpenDialogOptions } from 'vs/platform/dialogs/common/dialogs';
+import { ISaveDialogOptions, IOpenDialogOptions, IFileDialogService } from 'vs/platform/dialogs/common/dialogs';
 import { REMOTE_HOST_SCHEME } from 'vs/platform/remote/common/remoteHosts';
 import { IWindowService, IURIToOpen } from 'vs/platform/windows/common/windows';
 import { ILabelService } from 'vs/platform/label/common/label';
@@ -27,7 +27,7 @@ const INVALID_FILE_CHARS = isWindows ? /[\\/:\*\?"<>\|]/g : /[\\/]/g;
 const WINDOWS_FORBIDDEN_NAMES = /^(con|prn|aux|clock\$|nul|lpt[0-9]|com[0-9])$/i;
 
 export class RemoteFileDialog {
-
+	private fallbackPickerButton = { iconPath: this.getAlternateDialogIcons(), tooltip: 'Use Alternate File System' };
 	private acceptButton = { iconPath: this.getIcons('accept.svg'), tooltip: 'Select' };
 	private cancelButton = { iconPath: this.getIcons('cancel.svg'), tooltip: 'Cancel' };
 	private currentFolder: URI;
@@ -43,6 +43,7 @@ export class RemoteFileDialog {
 		@ILabelService private readonly labelService: ILabelService,
 		@IWorkspaceContextService private readonly workspaceContextService: IWorkspaceContextService,
 		@INotificationService private readonly notificationService: INotificationService,
+		@IFileDialogService private readonly fileDialogService: IFileDialogService,
 	) {
 		this.remoteAuthority = this.windowService.getConfiguration().remoteAuthority;
 	}
@@ -55,7 +56,7 @@ export class RemoteFileDialog {
 		}
 
 		const title = nls.localize('remoteFileDialog.openTitle', 'Open File or Folder');
-		return this.pickResource({ title, defaultUri, canSelectFiles: true, canSelectFolders: true }).then(async fileFolderUri => {
+		return this.pickResource({ title, defaultUri, canSelectFiles: true, canSelectFolders: true, availableFileSystems: options.availableFileSystems }).then(async fileFolderUri => {
 			if (fileFolderUri) {
 				const stat = await this.remoteFileService.resolveFile(fileFolderUri);
 				return <IURIToOpen[]>[{ uri: fileFolderUri, typeHint: stat.isDirectory ? 'folder' : 'file' }];
@@ -82,11 +83,21 @@ export class RemoteFileDialog {
 			saveNameBox.onDidChangeValue(v => {
 				saveNameBox.validationMessage = this.isValidBaseName(v) ? void 0 : nls.localize('remoteFileDialog.error.invalidfilename', 'Not a valid file name');
 			});
+			saveNameBox.buttons = [this.fallbackPickerButton];
+			saveNameBox.onDidTriggerButton(button => {
+				if (button === this.fallbackPickerButton) {
+					options.availableFileSystems.shift();
+					this.fileDialogService.showSaveDialog(options).then(result => {
+						resolve(result);
+					});
+				}
+				saveNameBox.dispose();
+			});
 			saveNameBox.onDidAccept(_ => {
 				const name = saveNameBox.value;
 				if (this.isValidBaseName(name)) {
 					saveNameBox.hide();
-					this.pickResource({ defaultUri: defaultUri, canSelectFolders: true, title: nls.localize('remoteFileDialogerror.titleFolderPage', 'Folder for \'{0}\'', name) }, { step: 2, totalSteps: 2 }).then(folderUri => {
+					this.pickResource({ defaultUri: defaultUri, canSelectFolders: true, title: nls.localize('remoteFileDialogerror.titleFolderPage', 'Folder for \'{0}\'', name), availableFileSystems: options.availableFileSystems }, { step: 2, totalSteps: 2 }).then(folderUri => {
 						if (folderUri) {
 							resolve(this.remoteUriFrom(this.remotePathJoin(folderUri, name)));
 						} else {
@@ -125,9 +136,19 @@ export class RemoteFileDialog {
 			let isAcceptHandled = false;
 
 			this.currentFolder = homedir;
-			this.filePickBox.buttons = [this.acceptButton, this.cancelButton];
+			if (options.availableFileSystems.length > 1) {
+				this.filePickBox.buttons = [this.fallbackPickerButton, this.acceptButton, this.cancelButton];
+			} else {
+				this.filePickBox.buttons = [this.acceptButton, this.cancelButton];
+			}
 			this.filePickBox.onDidTriggerButton(button => {
-				if (button === this.acceptButton) {
+				if (button === this.fallbackPickerButton) {
+					options.availableFileSystems.shift();
+					isResolved = true;
+					this.fileDialogService.pickFileAndOpen(options).then(result => {
+						resolve(result ? result[0] : undefined);
+					});
+				} else if (button === this.acceptButton) {
 					resolve(this.currentFolder);
 					isResolved = true;
 				}
@@ -311,4 +332,11 @@ export class RemoteFileDialog {
 			dark: URI.parse(require.toUrl(`vs/workbench/services/dialogs/media/dark/${name}`))
 		};
 	}
+
+	private getAlternateDialogIcons(): { light: URI, dark: URI } {
+		return {
+			dark: URI.parse(require.toUrl(`vs/editor/contrib/suggest/media/Folder_inverse_16x.svg`)),
+			light: URI.parse(require.toUrl(`vs/editor/contrib/suggest/media/Folder_16x.svg`))
+		};
+	}
 }
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