diff --git a/res/layout/new_folder_layout.xml b/res/layout/new_folder_layout.xml
index 4ce0ade..ecc730f 100644
--- a/res/layout/new_folder_layout.xml
+++ b/res/layout/new_folder_layout.xml
@@ -27,12 +27,29 @@
         android:gravity="center_vertical"
         android:minHeight="?android:attr/listPreferredItemHeight"
         android:src="@drawable/ic_folder_bookmark_widget_holo_dark" />
+  <LinearLayout
+      android:layout_width="match_parent"
+      android:layout_height="wrap_content"
+      android:background="@*android:drawable/edit_text_holo_dark"
+      android:gravity="center_vertical"
+      android:paddingBottom="5dip"
+      android:orientation="horizontal">
     <EditText
         android:id="@+id/folder_namer"
-        android:layout_width="match_parent"
+        android:layout_width="0dip"
         android:layout_height="wrap_content"
+        android:layout_weight="1"
         android:textAppearance="?android:attr/textAppearanceMedium"
+        android:background="@null"
         android:gravity="center_vertical"
         android:paddingLeft="6dip"
-        android:minHeight="?android:attr/listPreferredItemHeight" />
+        />
+    <ImageView
+        android:id="@+id/close"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:gravity="center_vertical"
+        android:src="@drawable/ic_tab_close"
+        />
+  </LinearLayout>
 </LinearLayout>
diff --git a/src/com/android/browser/AddBookmarkPage.java b/src/com/android/browser/AddBookmarkPage.java
index 9d8c73c..5e389ea 100644
--- a/src/com/android/browser/AddBookmarkPage.java
+++ b/src/com/android/browser/AddBookmarkPage.java
@@ -98,6 +98,7 @@
     private View mDefaultView;
     private View mFolderSelector;
     private EditText mFolderNamer;
+    private View mFolderCancel;
     private boolean mIsFolderNamerShowing;
     private View mFolderNamerHolder;
     private View mAddNewFolder;
@@ -243,6 +244,8 @@
             } else {
                 finish();
             }
+        } else if (v == mFolderCancel) {
+            completeOrCancelFolderNaming(true);
         } else if (v == mAddNewFolder) {
             setShowFolderNamer(true);
             mFolderNamer.setText(R.string.new_folder);
@@ -286,6 +289,11 @@
     public void onNothingSelected(AdapterView<?> parent) {
     }
 
+    /**
+     * Finish naming a folder, and close the IME
+     * @param cancel If true, the new folder is not created.  If false, the new
+     *      folder is created and the user is taken inside it.
+     */
     private void completeOrCancelFolderNaming(boolean cancel) {
         if (!cancel && !TextUtils.isEmpty(mFolderNamer.getText())) {
             String name = mFolderNamer.getText().toString();
@@ -588,6 +596,8 @@
         mFolderNamerHolder = getLayoutInflater().inflate(R.layout.new_folder_layout, null);
         mFolderNamer = (EditText) mFolderNamerHolder.findViewById(R.id.folder_namer);
         mFolderNamer.setOnEditorActionListener(this);
+        mFolderCancel = mFolderNamerHolder.findViewById(R.id.close);
+        mFolderCancel.setOnClickListener(this);
 
         mAddNewFolder = findViewById(R.id.add_new_folder);
         mAddNewFolder.setOnClickListener(this);