diff --git a/examples/playwright/src/tests/theia-main-menu.test.ts b/examples/playwright/src/tests/theia-main-menu.test.ts
index 919cc0400b05f..6a250d274ff40 100644
--- a/examples/playwright/src/tests/theia-main-menu.test.ts
+++ b/examples/playwright/src/tests/theia-main-menu.test.ts
@@ -110,18 +110,17 @@ test.describe('Theia Main Menu', () => {
         expect(await fileDialog.isVisible()).toBe(false);
     });
 
-    test('Create file via New File menu and cancel', async () => {
-        const openFileEntry = 'New File...';
-        await (await menuBar.openMenu('File')).clickMenuItem(openFileEntry);
+    test('Create file via New File menu and accept', async () => {
+        await (await menuBar.openMenu('File')).clickMenuItem('New File...');
         const quickPick = app.page.getByPlaceholder('Select File Type or Enter');
         // type file name and press enter
         await quickPick.fill('test.txt');
         await quickPick.press('Enter');
 
-        // check file dialog is opened and accept with "Create File" button
+        // check file dialog is opened and accept with ENTER
         const fileDialog = await app.page.waitForSelector('div[class="dialogBlock"]');
         expect(await fileDialog.isVisible()).toBe(true);
-        await app.page.locator('#theia-dialog-shell').getByRole('button', { name: 'Create File' }).click();
+        await app.page.locator('#theia-dialog-shell').press('Enter');
         expect(await fileDialog.isVisible()).toBe(false);
 
         // check file in workspace exists
diff --git a/packages/filesystem/src/browser/file-dialog/file-dialog-widget.ts b/packages/filesystem/src/browser/file-dialog/file-dialog-widget.ts
index fb52307421fe8..3ae225e521124 100644
--- a/packages/filesystem/src/browser/file-dialog/file-dialog-widget.ts
+++ b/packages/filesystem/src/browser/file-dialog/file-dialog-widget.ts
@@ -55,6 +55,17 @@ export class FileDialogWidget extends FileTreeWidget {
         return attr;
     }
 
+    protected override handleEnter(event: KeyboardEvent): boolean | void {
+        // Handle ENTER in the dialog to Accept.
+        // Tree view will just expand/collapse the node. This works also with arrow keys or SPACE.
+        return false;
+    }
+
+    protected override handleEscape(event: KeyboardEvent): boolean | void {
+        // Handle ESC in the dialog to Cancel and close the Dialog.
+        return false;
+    }
+
     protected override createNodeClassNames(node: TreeNode, props: NodeProps): string[] {
         const classNames = super.createNodeClassNames(node, props);
         if (this.shouldDisableSelection(node)) {