diff --git a/Composer/packages/client/__tests__/components/CreationFlow/DefineConversation/index.test.tsx b/Composer/packages/client/__tests__/components/CreationFlow/DefineConversation/index.test.tsx
index e1995dba1f..eabc9d6dcc 100644
--- a/Composer/packages/client/__tests__/components/CreationFlow/DefineConversation/index.test.tsx
+++ b/Composer/packages/client/__tests__/components/CreationFlow/DefineConversation/index.test.tsx
@@ -75,13 +75,24 @@ describe('<DefineConversation/>', () => {
     const component = renderComponent();
     const node = await component.findByText('OK');
     fireEvent.click(node);
-    expect(onSubmitMock).toHaveBeenCalledWith({
-      description: 'Test Echo',
-      name: 'EchoBot-11299',
-      location: '',
-      schemaUrl:
-        'https://raw.githubusercontent.com/microsoft/botframework-sdk/master/schemas/component/component.schema',
-    });
+    expect(
+      onSubmitMock.mock.calls[0][0] ===
+        {
+          description: 'Test Echo',
+          name: 'EchoBot-11299',
+          location: '\\test-folder\\Desktop',
+          schemaUrl:
+            'https://raw.githubusercontent.com/microsoft/botframework-sdk/master/schemas/component/component.schema',
+        } ||
+        onSubmitMock.mock.calls[0][0] ===
+          {
+            description: 'Test Echo',
+            name: 'EchoBot-11299',
+            location: '/test-folder/Desktop',
+            schemaUrl:
+              'https://raw.githubusercontent.com/microsoft/botframework-sdk/master/schemas/component/component.schema',
+          }
+    ).toBeTruthy;
   });
 
   it('does not allow submission when the name is invalid', async () => {
diff --git a/Composer/packages/client/__tests__/components/CreationFlow/index.test.tsx b/Composer/packages/client/__tests__/components/CreationFlow/index.test.tsx
index aa9574eee5..9851688ad6 100644
--- a/Composer/packages/client/__tests__/components/CreationFlow/index.test.tsx
+++ b/Composer/packages/client/__tests__/components/CreationFlow/index.test.tsx
@@ -66,7 +66,7 @@ describe('<CreationFlow/>', () => {
     storeContext.state.templateId = 'EchoBot';
     storeContext.actions.createProject = async (templateId, name, description, location) => {
       expect(templateId).toBe(expectedTemplateId);
-      expect(location === '').toBeTruthy();
+      expect(location === '/test-folder/Desktop' || location === '\\test-folder\\Desktop').toBeTruthy();
     };
     storeContext.state.focusedStorageFolder = {
       name: 'Desktop',
diff --git a/Composer/packages/client/src/components/CreationFlow/DefineConversation/DefineConversation.tsx b/Composer/packages/client/src/components/CreationFlow/DefineConversation/DefineConversation.tsx
index 53938b17f6..7aeef71014 100644
--- a/Composer/packages/client/src/components/CreationFlow/DefineConversation/DefineConversation.tsx
+++ b/Composer/packages/client/src/components/CreationFlow/DefineConversation/DefineConversation.tsx
@@ -103,6 +103,10 @@ const DefineConversation: React.FC<DefineConversationProps> = (props) => {
     },
     location: {
       required: true,
+      defaultValue:
+        focusedStorageFolder !== null && Object.keys(focusedStorageFolder as Record<string, any>).length
+          ? Path.join(focusedStorageFolder.parent, focusedStorageFolder.name)
+          : '',
     },
   };
   const { formData, formErrors, hasErrors, updateField, updateForm } = useForm(formConfig);
@@ -118,7 +122,10 @@ const DefineConversation: React.FC<DefineConversationProps> = (props) => {
       name: getDefaultName(),
       description: '',
       schemaUrl: '',
-      location: '',
+      location:
+        focusedStorageFolder !== null && Object.keys(focusedStorageFolder as Record<string, any>).length
+          ? Path.join(focusedStorageFolder.parent, focusedStorageFolder.name)
+          : '',
     };
     updateForm(formData);
     if (props.location?.search) {
@@ -159,19 +166,19 @@ const DefineConversation: React.FC<DefineConversationProps> = (props) => {
     [hasErrors, formData]
   );
 
-  const updateLocation = (location: string) => {
-    const updatedFormData = {
-      ...formData,
-      location,
-    };
-    updateForm(updatedFormData);
-  };
-
   const onCurrentPathUpdateWrap = (newPath: string, storageId?: string) => {
     onCurrentPathUpdate(newPath, storageId);
-    updateLocation(newPath);
+    updateField('location', newPath);
   };
 
+  useEffect(() => {
+    const location =
+      focusedStorageFolder !== null && Object.keys(focusedStorageFolder as Record<string, any>).length
+        ? Path.join(focusedStorageFolder.parent, focusedStorageFolder.name)
+        : '';
+    updateField('location', location);
+  }, [focusedStorageFolder]);
+
   return (
     <Fragment>
       <DialogWrapper