diff --git a/public/app/features/dashboard/dashboard_srv.ts b/public/app/features/dashboard/dashboard_srv.ts
index b41d7b0583e..9d766fdfc3f 100644
--- a/public/app/features/dashboard/dashboard_srv.ts
+++ b/public/app/features/dashboard/dashboard_srv.ts
@@ -92,7 +92,7 @@ export class DashboardSrv {
 
   save(clone, options) {
     options = options || {};
-    options.folderId = options.folderId || this.dash.meta.folderId || clone.folderId;
+    options.folderId = options.folderId >= 0 ? options.folderId : this.dash.meta.folderId || clone.folderId;
 
     return this.backendSrv
       .saveDashboard(clone, options)
diff --git a/public/app/features/dashboard/save_as_modal.ts b/public/app/features/dashboard/save_as_modal.ts
index 15a3ce5dba7..60f6fb4c1da 100644
--- a/public/app/features/dashboard/save_as_modal.ts
+++ b/public/app/features/dashboard/save_as_modal.ts
@@ -22,6 +22,8 @@ const template = `
       <div class="gf-form">
         <folder-picker initial-folder-id="ctrl.folderId"
                        on-change="ctrl.onFolderChange($folder)"
+                       enter-folder-creation="ctrl.onEnterFolderCreation()"
+                       exit-folder-creation="ctrl.onExitFolderCreation()"
                        enable-create-new="true"
                        label-class="width-7">
         </folder-picker>
@@ -29,7 +31,7 @@ const template = `
 		</div>
 
 		<div class="gf-form-button-row text-center">
-			<button type="submit" class="btn btn-success" ng-click="ctrl.save()">Save</button>
+			<button type="submit" class="btn btn-success" ng-click="ctrl.save()" ng-disabled="!ctrl.isValidFolderSelection">Save</button>
 			<a class="btn-text" ng-click="ctrl.dismiss();">Cancel</a>
 		</div>
 	</form>
@@ -40,6 +42,7 @@ export class SaveDashboardAsModalCtrl {
   clone: any;
   folderId: any;
   dismiss: () => void;
+  isValidFolderSelection = true;
 
   /** @ngInject */
   constructor(private dashboardSrv) {
@@ -79,6 +82,14 @@ export class SaveDashboardAsModalCtrl {
   onFolderChange(folder) {
     this.folderId = folder.id;
   }
+
+  onEnterFolderCreation() {
+    this.isValidFolderSelection = false;
+  }
+
+  onExitFolderCreation() {
+    this.isValidFolderSelection = true;
+  }
 }
 
 export function saveDashboardAsDirective() {