diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewFilterReferenceAdapter.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewFilterReferenceAdapter.java
index 66478f04b19..dc159fbc900 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewFilterReferenceAdapter.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewFilterReferenceAdapter.java
@@ -20,6 +20,7 @@
  * Martin Oberhuber (Wind River) - [186773] split ISystemRegistryUI from ISystemRegistry
  * Tobias Schwarz   (Wind River) - [173267] "empty list" should not be displayed 
  * Martin Oberhuber (Wind River) - [190271] Move ISystemViewInputProvider to Core
+ * Kevin Doyle (IBM) - [187707] Added separator between New Folder and New File in context menu
  ********************************************************************************/
 
 package org.eclipse.rse.internal.ui.view;
@@ -32,6 +33,7 @@ import org.eclipse.core.runtime.IProgressMonitor;
 import org.eclipse.core.runtime.NullProgressMonitor;
 import org.eclipse.core.runtime.Platform;
 import org.eclipse.jface.action.IAction;
+import org.eclipse.jface.action.Separator;
 import org.eclipse.jface.resource.ImageDescriptor;
 import org.eclipse.jface.viewers.IStructuredSelection;
 import org.eclipse.jface.viewers.Viewer;
@@ -55,12 +57,14 @@ import org.eclipse.rse.core.model.SystemRemoteResourceSet;
 import org.eclipse.rse.core.subsystems.ISubSystem;
 import org.eclipse.rse.core.subsystems.ISubSystemConfiguration;
 import org.eclipse.rse.core.subsystems.SubSystemHelpers;
+import org.eclipse.rse.ui.ISystemContextMenuConstants;
 import org.eclipse.rse.ui.ISystemIconConstants;
 import org.eclipse.rse.ui.ISystemMessages;
 import org.eclipse.rse.ui.RSEUIPlugin;
 import org.eclipse.rse.ui.SystemBasePlugin;
 import org.eclipse.rse.ui.SystemMenuManager;
 import org.eclipse.rse.ui.SystemPreferencesManager;
+import org.eclipse.rse.ui.filters.actions.SystemNewFilterAction;
 import org.eclipse.rse.ui.subsystems.ISubSystemConfigurationAdapter;
 import org.eclipse.rse.ui.validators.ISystemValidator;
 import org.eclipse.rse.ui.validators.ValidatorFilterName;
@@ -115,6 +119,8 @@ public class SystemViewFilterReferenceAdapter
 			for (int idx = 0; idx < actions.length; idx++)
 			{
 				IAction action = actions[idx];
+				if (action instanceof SystemNewFilterAction)
+					menu.appendToGroup(ISystemContextMenuConstants.GROUP_NEW, new Separator());
 				menu.add(menuGroup, action);
 			}
 		}