diff --git a/editor/editor_properties.cpp b/editor/editor_properties.cpp
index fa03d281f2..789cabea9a 100644
--- a/editor/editor_properties.cpp
+++ b/editor/editor_properties.cpp
@@ -2854,6 +2854,10 @@ void EditorPropertyResource::setup(Object *p_object, const String &p_path, const
 		EditorScriptPicker *script_picker = memnew(EditorScriptPicker);
 		script_picker->set_script_owner(Object::cast_to<Node>(p_object));
 		resource_picker = script_picker;
+	} else if (p_path == "shader" && p_base_type == "Shader" && Object::cast_to<ShaderMaterial>(p_object)) {
+		EditorShaderPicker *shader_picker = memnew(EditorShaderPicker);
+		shader_picker->set_edited_material(Object::cast_to<ShaderMaterial>(p_object));
+		resource_picker = shader_picker;
 	} else {
 		resource_picker = memnew(EditorResourcePicker);
 	}
diff --git a/editor/editor_resource_picker.cpp b/editor/editor_resource_picker.cpp
index f3965fe7de..a4ab749db4 100644
--- a/editor/editor_resource_picker.cpp
+++ b/editor/editor_resource_picker.cpp
@@ -847,6 +847,8 @@ EditorResourcePicker::EditorResourcePicker() {
 	edit_button->connect("gui_input", callable_mp(this, &EditorResourcePicker::_button_input));
 }
 
+// EditorScriptPicker
+
 void EditorScriptPicker::set_create_options(Object *p_menu_node) {
 	PopupMenu *menu_node = Object::cast_to<PopupMenu>(p_menu_node);
 	if (!menu_node) {
@@ -895,3 +897,42 @@ void EditorScriptPicker::_bind_methods() {
 
 EditorScriptPicker::EditorScriptPicker() {
 }
+
+// EditorShaderPicker
+
+void EditorShaderPicker::set_create_options(Object *p_menu_node) {
+	PopupMenu *menu_node = Object::cast_to<PopupMenu>(p_menu_node);
+	if (!menu_node) {
+		return;
+	}
+
+	menu_node->add_icon_item(get_theme_icon("Shader", "EditorIcons"), TTR("New Shader"), OBJ_MENU_NEW_SHADER);
+	menu_node->add_separator();
+}
+
+bool EditorShaderPicker::handle_menu_selected(int p_which) {
+	Ref<ShaderMaterial> material = Ref<ShaderMaterial>(get_edited_material());
+
+	switch (p_which) {
+		case OBJ_MENU_NEW_SHADER: {
+			if (material.is_valid()) {
+				EditorNode::get_singleton()->get_scene_tree_dock()->open_shader_dialog(material);
+				return true;
+			}
+		} break;
+		default:
+			break;
+	}
+	return false;
+}
+
+void EditorShaderPicker::set_edited_material(ShaderMaterial *p_material) {
+	edited_material = p_material;
+}
+
+ShaderMaterial *EditorShaderPicker::get_edited_material() const {
+	return edited_material;
+}
+
+EditorShaderPicker::EditorShaderPicker() {
+}
diff --git a/editor/editor_resource_picker.h b/editor/editor_resource_picker.h
index a4c3006c02..d77c31f831 100644
--- a/editor/editor_resource_picker.h
+++ b/editor/editor_resource_picker.h
@@ -144,4 +144,23 @@ public:
 	EditorScriptPicker();
 };
 
+class EditorShaderPicker : public EditorResourcePicker {
+	GDCLASS(EditorShaderPicker, EditorResourcePicker);
+
+	enum ExtraMenuOption {
+		OBJ_MENU_NEW_SHADER = 10,
+	};
+
+	ShaderMaterial *edited_material = nullptr;
+
+public:
+	virtual void set_create_options(Object *p_menu_node) override;
+	virtual bool handle_menu_selected(int p_which) override;
+
+	void set_edited_material(ShaderMaterial *p_material);
+	ShaderMaterial *get_edited_material() const;
+
+	EditorShaderPicker();
+};
+
 #endif // EDITOR_RESOURCE_PICKER_H
diff --git a/editor/plugins/visual_shader_editor_plugin.cpp b/editor/plugins/visual_shader_editor_plugin.cpp
index 452ad126b3..9a41a100bd 100644
--- a/editor/plugins/visual_shader_editor_plugin.cpp
+++ b/editor/plugins/visual_shader_editor_plugin.cpp
@@ -1007,6 +1007,7 @@ void VisualShaderEditor::edit(VisualShader *p_visual_shader) {
 		const Dictionary vs_version = visual_shader->get_engine_version();
 		if (!vs_version.has_all(components)) {
 			visual_shader->update_engine_version(engine_version);
+			print_line(vformat(TTR("The shader (\"%s\") has been updated to correspond Godot %s.%s version."), visual_shader->get_path(), engine_version["major"], engine_version["minor"]));
 		} else {
 			for (int i = 0; i < components.size(); i++) {
 				if (vs_version[components[i]] != engine_version[components[i]]) {
diff --git a/editor/scene_tree_dock.cpp b/editor/scene_tree_dock.cpp
index c4d47c7594..8994adf112 100644
--- a/editor/scene_tree_dock.cpp
+++ b/editor/scene_tree_dock.cpp
@@ -45,6 +45,7 @@
 #include "editor/plugins/canvas_item_editor_plugin.h"
 #include "editor/plugins/node_3d_editor_plugin.h"
 #include "editor/plugins/script_editor_plugin.h"
+#include "editor/shader_create_dialog.h"
 #include "scene/main/window.h"
 #include "scene/resources/packed_scene.h"
 #include "servers/display_server.h"
@@ -1939,12 +1940,31 @@ void SceneTreeDock::_script_created(Ref<Script> p_script) {
 	_update_script_button();
 }
 
+void SceneTreeDock::_shader_created(Ref<Shader> p_shader) {
+	if (selected_shader_material.is_null()) {
+		return;
+	}
+
+	Ref<Shader> existing = selected_shader_material->get_shader();
+
+	editor_data->get_undo_redo().create_action(TTR("Set Shader"));
+	editor_data->get_undo_redo().add_do_method(selected_shader_material.ptr(), "set_shader", p_shader);
+	editor_data->get_undo_redo().add_undo_method(selected_shader_material.ptr(), "set_shader", existing);
+	editor_data->get_undo_redo().commit_action();
+}
+
 void SceneTreeDock::_script_creation_closed() {
 	script_create_dialog->disconnect("script_created", callable_mp(this, &SceneTreeDock::_script_created));
 	script_create_dialog->disconnect("confirmed", callable_mp(this, &SceneTreeDock::_script_creation_closed));
 	script_create_dialog->disconnect("cancelled", callable_mp(this, &SceneTreeDock::_script_creation_closed));
 }
 
+void SceneTreeDock::_shader_creation_closed() {
+	shader_create_dialog->disconnect("shader_created", callable_mp(this, &SceneTreeDock::_shader_created));
+	shader_create_dialog->disconnect("confirmed", callable_mp(this, &SceneTreeDock::_shader_creation_closed));
+	shader_create_dialog->disconnect("cancelled", callable_mp(this, &SceneTreeDock::_shader_creation_closed));
+}
+
 void SceneTreeDock::_toggle_editable_children_from_selection() {
 	List<Node *> selection = editor_selection->get_selected_node_list();
 	List<Node *>::Element *e = selection.front();
@@ -2896,6 +2916,42 @@ void SceneTreeDock::open_script_dialog(Node *p_for_node, bool p_extend) {
 	}
 }
 
+void SceneTreeDock::attach_shader_to_selected() {
+	if (selected_shader_material.is_null()) {
+		return;
+	}
+
+	String path = selected_shader_material->get_path();
+	if (path == "") {
+		String root_path;
+		if (editor_data->get_edited_scene_root()) {
+			root_path = editor_data->get_edited_scene_root()->get_filename();
+		}
+		String shader_name;
+		if (selected_shader_material->get_name().is_empty()) {
+			shader_name = root_path.get_file();
+		} else {
+			shader_name = selected_shader_material->get_name();
+		}
+		if (root_path == "") {
+			path = String("res://").plus_file(shader_name);
+		} else {
+			path = root_path.get_base_dir().plus_file(shader_name);
+		}
+	}
+
+	shader_create_dialog->connect("shader_created", callable_mp(this, &SceneTreeDock::_shader_created));
+	shader_create_dialog->connect("confirmed", callable_mp(this, &SceneTreeDock::_shader_creation_closed));
+	shader_create_dialog->connect("cancelled", callable_mp(this, &SceneTreeDock::_shader_creation_closed));
+	shader_create_dialog->config(path);
+	shader_create_dialog->popup_centered();
+}
+
+void SceneTreeDock::open_shader_dialog(Ref<ShaderMaterial> &p_for_material) {
+	selected_shader_material = p_for_material;
+	attach_shader_to_selected();
+}
+
 void SceneTreeDock::open_add_child_dialog() {
 	create_dialog->set_base_type("CanvasItem");
 	_tool_selected(TOOL_NEW, true);
@@ -3267,6 +3323,9 @@ SceneTreeDock::SceneTreeDock(EditorNode *p_editor, Node *p_scene_root, EditorSel
 	script_create_dialog->set_inheritance_base_type("Node");
 	add_child(script_create_dialog);
 
+	shader_create_dialog = memnew(ShaderCreateDialog);
+	add_child(shader_create_dialog);
+
 	reparent_dialog = memnew(ReparentDialog);
 	add_child(reparent_dialog);
 	reparent_dialog->connect("reparent", callable_mp(this, &SceneTreeDock::_node_reparent));
diff --git a/editor/scene_tree_dock.h b/editor/scene_tree_dock.h
index 4952122cb7..ccdc0a3786 100644
--- a/editor/scene_tree_dock.h
+++ b/editor/scene_tree_dock.h
@@ -49,6 +49,7 @@
 #include "scene_tree_editor.h"
 
 class EditorNode;
+class ShaderCreateDialog;
 
 class SceneTreeDock : public VBoxContainer {
 	GDCLASS(SceneTreeDock, VBoxContainer);
@@ -138,6 +139,7 @@ class SceneTreeDock : public VBoxContainer {
 	HashMap<String, Map<RES, RES>> clipboard_resource_remap;
 
 	ScriptCreateDialog *script_create_dialog;
+	ShaderCreateDialog *shader_create_dialog;
 	AcceptDialog *accept;
 	ConfirmationDialog *delete_dialog;
 	ConfirmationDialog *editable_instance_remove_dialog;
@@ -166,6 +168,8 @@ class SceneTreeDock : public VBoxContainer {
 	VBoxContainer *create_root_dialog;
 	String selected_favorite_root;
 
+	Ref<ShaderMaterial> selected_shader_material;
+
 	void _add_children_to_popup(Object *p_obj, int p_depth);
 
 	void _node_reparent(NodePath p_path, bool p_keep_global_xform);
@@ -192,7 +196,9 @@ class SceneTreeDock : public VBoxContainer {
 	void _node_selected();
 	void _node_renamed();
 	void _script_created(Ref<Script> p_script);
+	void _shader_created(Ref<Shader> p_shader);
 	void _script_creation_closed();
+	void _shader_creation_closed();
 
 	void _delete_confirm(bool p_cut = false);
 
@@ -288,6 +294,9 @@ public:
 	void attach_script_to_selected(bool p_extend);
 	void open_script_dialog(Node *p_for_node, bool p_extend);
 
+	void attach_shader_to_selected();
+	void open_shader_dialog(Ref<ShaderMaterial> &p_for_material);
+
 	void open_add_child_dialog();
 	void open_instance_child_dialog();
 
diff --git a/editor/shader_create_dialog.cpp b/editor/shader_create_dialog.cpp
new file mode 100644
index 0000000000..beae0c9c91
--- /dev/null
+++ b/editor/shader_create_dialog.cpp
@@ -0,0 +1,643 @@
+/*************************************************************************/
+/*  shader_create_dialog.cpp                                             */
+/*************************************************************************/
+/*                       This file is part of:                           */
+/*                           GODOT ENGINE                                */
+/*                      https://godotengine.org                          */
+/*************************************************************************/
+/* Copyright (c) 2007-2021 Juan Linietsky, Ariel Manzur.                 */
+/* Copyright (c) 2014-2021 Godot Engine contributors (cf. AUTHORS.md).   */
+/*                                                                       */
+/* Permission is hereby granted, free of charge, to any person obtaining */
+/* a copy of this software and associated documentation files (the       */
+/* "Software"), to deal in the Software without restriction, including   */
+/* without limitation the rights to use, copy, modify, merge, publish,   */
+/* distribute, sublicense, and/or sell copies of the Software, and to    */
+/* permit persons to whom the Software is furnished to do so, subject to */
+/* the following conditions:                                             */
+/*                                                                       */
+/* The above copyright notice and this permission notice shall be        */
+/* included in all copies or substantial portions of the Software.       */
+/*                                                                       */
+/* THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,       */
+/* EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF    */
+/* MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.*/
+/* IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY  */
+/* CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT,  */
+/* TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE     */
+/* SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.                */
+/*************************************************************************/
+
+#include "shader_create_dialog.h"
+#include "editor/editor_scale.h"
+#include "scene/resources/visual_shader.h"
+#include "servers/rendering/shader_types.h"
+
+void ShaderCreateDialog::_notification(int p_what) {
+	switch (p_what) {
+		case NOTIFICATION_ENTER_TREE: {
+			_update_theme();
+
+			String last_lang = EditorSettings::get_singleton()->get_project_metadata("shader_setup", "last_selected_language", "");
+			if (!last_lang.is_empty()) {
+				for (int i = 0; i < language_menu->get_item_count(); i++) {
+					if (language_menu->get_item_text(i) == last_lang) {
+						language_menu->select(i);
+						current_language = i;
+						break;
+					}
+				}
+			} else {
+				language_menu->select(default_language);
+			}
+
+			current_mode = EditorSettings::get_singleton()->get_project_metadata("shader_setup", "last_selected_mode", 0);
+			mode_menu->select(current_mode);
+		} break;
+		case NOTIFICATION_THEME_CHANGED: {
+			_update_theme();
+		} break;
+	}
+}
+
+void ShaderCreateDialog::_update_theme() {
+	Ref<Texture2D> shader_icon = gc->get_theme_icon(SNAME("Shader"), SNAME("EditorIcons"));
+	if (shader_icon.is_valid()) {
+		language_menu->set_item_icon(0, shader_icon);
+	}
+
+	Ref<Texture2D> visual_shader_icon = gc->get_theme_icon(SNAME("VisualShader"), SNAME("EditorIcons"));
+	if (visual_shader_icon.is_valid()) {
+		language_menu->set_item_icon(1, visual_shader_icon);
+	}
+
+	path_button->set_icon(get_theme_icon(SNAME("Folder"), SNAME("EditorIcons")));
+	status_panel->add_theme_style_override("panel", get_theme_stylebox(SNAME("bg"), SNAME("Tree")));
+}
+
+void ShaderCreateDialog::_update_language_info() {
+	language_data.clear();
+
+	List<StringName> classes;
+	classes.push_front(SNAME("Shader"));
+	classes.push_front(SNAME("VisualShader"));
+
+	for (List<StringName>::Element *E = classes.front(); E; E = E->next()) {
+		language_data.push_back(ShaderTypeData());
+	}
+
+	int idx = 0;
+	for (List<ShaderTypeData>::Element *E = language_data.front(); E; E = E->next()) {
+		if (idx == int(SHADER_TYPE_TEXT)) {
+			E->get().use_templates = true;
+			E->get().extensions.push_back("gdshader");
+			E->get().default_extension = "gdshader";
+		} else {
+			E->get().default_extension = "tres";
+		}
+		E->get().extensions.push_back("res");
+		E->get().extensions.push_back("tres");
+		idx++;
+	}
+}
+
+void ShaderCreateDialog::_path_hbox_sorted() {
+	if (is_visible()) {
+		int filename_start_pos = initial_base_path.rfind("/") + 1;
+		int filename_end_pos = initial_base_path.length();
+
+		if (!is_built_in) {
+			file_path->select(filename_start_pos, filename_end_pos);
+		}
+
+		file_path->set_caret_column(file_path->get_text().length());
+		file_path->set_caret_column(filename_start_pos);
+
+		file_path->grab_focus();
+	}
+}
+
+void ShaderCreateDialog::_mode_changed(int p_mode) {
+	current_mode = p_mode;
+	EditorSettings::get_singleton()->set_project_metadata("shader_setup", "last_selected_mode", p_mode);
+}
+
+void ShaderCreateDialog::_template_changed(int p_template) {
+	current_template = p_template;
+	EditorSettings::get_singleton()->set_project_metadata("shader_setup", "last_selected_template", p_template);
+}
+
+void ShaderCreateDialog::ok_pressed() {
+	if (is_new_shader_created) {
+		_create_new();
+	} else {
+		_load_exist();
+	}
+
+	is_new_shader_created = true;
+	_update_dialog();
+}
+
+void ShaderCreateDialog::_create_new() {
+	RES shader;
+
+	if (language_menu->get_selected() == int(SHADER_TYPE_TEXT)) {
+		Ref<Shader> text_shader;
+		text_shader.instantiate();
+		shader = text_shader;
+
+		StringBuilder code;
+		code += vformat("shader_type %s;\n", mode_menu->get_text().replace(" ", "").camelcase_to_underscore());
+
+		if (current_template == 0) { // Default template.
+			code += "\n";
+			switch (current_mode) {
+				case Shader::MODE_SPATIAL:
+					code += "void fragment() {\n";
+					code += "\t// Place fragment code here.\n";
+					code += "}\n";
+					break;
+				case Shader::MODE_CANVAS_ITEM:
+					code += "void fragment() {\n";
+					code += "\t// Place fragment code here.\n";
+					code += "}\n";
+					break;
+				case Shader::MODE_PARTICLES:
+					code += "void start() {\n";
+					code += "\t// Place start code here.\n";
+					code += "}\n";
+					code += "\n";
+					code += "void process() {\n";
+					code += "\t// Place process code here.\n";
+					code += "}\n";
+					break;
+				case Shader::MODE_SKY:
+					code += "void sky() {\n";
+					code += "\t// Place sky code here.\n";
+					code += "}\n";
+					break;
+			}
+		}
+		text_shader->set_code(code.as_string());
+	} else {
+		Ref<VisualShader> visual_shader;
+		visual_shader.instantiate();
+		shader = visual_shader;
+		visual_shader->set_engine_version(Engine::get_singleton()->get_version_info());
+		visual_shader->set_mode(Shader::Mode(current_mode));
+	}
+
+	if (!is_built_in) {
+		String lpath = ProjectSettings::get_singleton()->localize_path(file_path->get_text());
+		shader->set_path(lpath);
+		Error err = ResourceSaver::save(lpath, shader, ResourceSaver::FLAG_CHANGE_PATH);
+		if (err != OK) {
+			alert->set_text(TTR("Error - Could not create shader in filesystem."));
+			alert->popup_centered();
+			return;
+		}
+	}
+
+	emit_signal("shader_created", shader);
+	hide();
+}
+
+void ShaderCreateDialog::_load_exist() {
+	String path = file_path->get_text();
+	RES p_shader = ResourceLoader::load(path, "Shader");
+	if (p_shader.is_null()) {
+		alert->set_text(vformat(TTR("Error loading shader from %s"), path));
+		alert->popup_centered();
+		return;
+	}
+
+	emit_signal("shader_created", p_shader);
+	hide();
+}
+
+void ShaderCreateDialog::_language_changed(int p_language) {
+	ShaderTypeData data = language_data[p_language];
+
+	String selected_ext = "." + data.default_extension;
+	String path = file_path->get_text();
+	String extension = "";
+
+	if (path != "") {
+		if (path.find(".") != -1) {
+			extension = path.get_extension();
+		}
+		if (extension.length() == 0) {
+			path += selected_ext;
+		} else {
+			path = path.get_basename() + selected_ext;
+		}
+	} else {
+		path = "shader" + selected_ext;
+	}
+	_path_changed(path);
+	file_path->set_text(path);
+
+	template_menu->set_disabled(!data.use_templates);
+	template_menu->clear();
+
+	if (data.use_templates) {
+		int last_template = EditorSettings::get_singleton()->get_project_metadata("shader_setup", "last_selected_template", 0);
+
+		template_menu->add_item(TTR("Default"));
+		template_menu->add_item(TTR("Empty"));
+
+		template_menu->select(last_template);
+		current_template = last_template;
+	} else {
+		template_menu->add_item(TTR("N/A"));
+	}
+
+	EditorSettings::get_singleton()->set_project_metadata("shader_setup", "last_selected_language", language_menu->get_item_text(language_menu->get_selected()));
+	_update_dialog();
+}
+
+void ShaderCreateDialog::_built_in_toggled(bool p_enabled) {
+	is_built_in = p_enabled;
+	if (p_enabled) {
+		is_new_shader_created = true;
+	} else {
+		_path_changed(file_path->get_text());
+	}
+	_update_dialog();
+}
+
+void ShaderCreateDialog::_browse_path() {
+	file_browse->set_file_mode(EditorFileDialog::FILE_MODE_SAVE_FILE);
+	file_browse->set_title(TTR("Open Shader / Choose Location"));
+	file_browse->get_ok_button()->set_text(TTR("Open"));
+
+	file_browse->set_disable_overwrite_warning(true);
+	file_browse->clear_filters();
+
+	List<String> extensions = language_data[language_menu->get_selected()].extensions;
+
+	for (const String &E : extensions) {
+		file_browse->add_filter("*." + E);
+	}
+
+	file_browse->set_current_path(file_path->get_text());
+	file_browse->popup_file_dialog();
+}
+
+void ShaderCreateDialog::_file_selected(const String &p_file) {
+	String p = ProjectSettings::get_singleton()->localize_path(p_file);
+	file_path->set_text(p);
+	_path_changed(p);
+
+	String filename = p.get_file().get_basename();
+	int select_start = p.rfind(filename);
+	file_path->select(select_start, select_start + filename.length());
+	file_path->set_caret_column(select_start + filename.length());
+	file_path->grab_focus();
+}
+
+void ShaderCreateDialog::_path_changed(const String &p_path) {
+	if (is_built_in) {
+		return;
+	}
+
+	is_path_valid = false;
+	is_new_shader_created = true;
+
+	String path_error = _validate_path(p_path, false);
+	if (path_error != "") {
+		_msg_path_valid(false, path_error);
+		_update_dialog();
+		return;
+	}
+
+	DirAccess *f = DirAccess::create(DirAccess::ACCESS_RESOURCES);
+	String p = ProjectSettings::get_singleton()->localize_path(p_path.strip_edges());
+	if (f->file_exists(p)) {
+		is_new_shader_created = false;
+		_msg_path_valid(true, TTR("File exists, it will be reused."));
+	}
+	memdelete(f);
+
+	is_path_valid = true;
+	_update_dialog();
+}
+
+void ShaderCreateDialog::_path_submitted(const String &p_path) {
+	ok_pressed();
+}
+
+void ShaderCreateDialog::config(const String &p_base_path, bool p_built_in_enabled, bool p_load_enabled) {
+	if (p_base_path != "") {
+		initial_base_path = p_base_path.get_basename();
+		file_path->set_text(initial_base_path + "." + language_data[language_menu->get_selected()].default_extension);
+		current_language = language_menu->get_selected();
+	} else {
+		initial_base_path = "";
+		file_path->set_text("");
+	}
+	file_path->deselect();
+
+	built_in_enabled = p_built_in_enabled;
+	load_enabled = p_load_enabled;
+
+	_language_changed(current_language);
+	_path_changed(file_path->get_text());
+}
+
+String ShaderCreateDialog::_validate_path(const String &p_path, bool p_file_must_exist) {
+	String p = p_path.strip_edges();
+
+	if (p == "") {
+		return TTR("Path is empty.");
+	}
+	if (p.get_file().get_basename() == "") {
+		return TTR("Filename is empty.");
+	}
+
+	p = ProjectSettings::get_singleton()->localize_path(p);
+	if (!p.begins_with("res://")) {
+		return TTR("Path is not local.");
+	}
+
+	DirAccess *d = DirAccess::create(DirAccess::ACCESS_RESOURCES);
+	if (d->change_dir(p.get_base_dir()) != OK) {
+		memdelete(d);
+		return TTR("Invalid base path.");
+	}
+	memdelete(d);
+
+	DirAccess *f = DirAccess::create(DirAccess::ACCESS_RESOURCES);
+	if (f->dir_exists(p)) {
+		memdelete(f);
+		return TTR("A directory with the same name exists.");
+	} else if (p_file_must_exist && !f->file_exists(p)) {
+		memdelete(f);
+		return TTR("File does not exist.");
+	}
+	memdelete(f);
+
+	String extension = p.get_extension();
+	List<String> extensions;
+
+	for (int l = 0; l < SHADER_TYPE_MAX; l++) {
+		for (List<String>::Element *E = language_data[l].extensions.front(); E; E = E->next()) {
+			extensions.push_back(E->get());
+		}
+	}
+
+	ShaderTypeData data = language_data[language_menu->get_selected()];
+
+	bool found = false;
+	bool match = false;
+	int index = 0;
+	for (List<String>::Element *E = extensions.front(); E; E = E->next()) {
+		if (E->get().nocasecmp_to(extension) == 0) {
+			found = true;
+			if (E->get() == data.default_extension) {
+				match = true;
+			}
+			break;
+		}
+		index++;
+	}
+
+	if (!found) {
+		return TTR("Invalid extension.");
+	}
+	if (!match) {
+		return TTR("Wrong extension chosen.");
+	}
+
+	String path_error = ScriptServer::get_language(language_menu->get_selected())->validate_path(p);
+	if (path_error != "") {
+		return path_error;
+	}
+
+	return "";
+}
+
+void ShaderCreateDialog::_msg_script_valid(bool valid, const String &p_msg) {
+	error_label->set_text("- " + p_msg);
+	if (valid) {
+		error_label->add_theme_color_override("font_color", gc->get_theme_color("success_color", "Editor"));
+	} else {
+		error_label->add_theme_color_override("font_color", gc->get_theme_color("error_color", "Editor"));
+	}
+}
+
+void ShaderCreateDialog::_msg_path_valid(bool valid, const String &p_msg) {
+	path_error_label->set_text("- " + p_msg);
+	if (valid) {
+		path_error_label->add_theme_color_override("font_color", gc->get_theme_color("success_color", "Editor"));
+	} else {
+		path_error_label->add_theme_color_override("font_color", gc->get_theme_color("error_color", "Editor"));
+	}
+}
+
+void ShaderCreateDialog::_update_dialog() {
+	bool shader_ok = true;
+
+	if (!is_built_in && !is_path_valid) {
+		_msg_script_valid(false, TTR("Invalid path."));
+		shader_ok = false;
+	}
+	if (shader_ok) {
+		_msg_script_valid(true, TTR("Shader path/name is valid."));
+	}
+	if (!built_in_enabled) {
+		internal->set_pressed(false);
+	}
+
+	if (is_built_in) {
+		file_path->set_editable(false);
+		path_button->set_disabled(true);
+		re_check_path = true;
+	} else {
+		file_path->set_editable(true);
+		path_button->set_disabled(false);
+		if (re_check_path) {
+			re_check_path = false;
+			_path_changed(file_path->get_text());
+		}
+	}
+
+	internal->set_disabled(!built_in_enabled);
+
+	builtin_warning_label->set_visible(is_built_in);
+
+	if (is_built_in) {
+		get_ok_button()->set_text(TTR("Create"));
+		_msg_path_valid(true, TTR("Built-in script (into scene file)."));
+	} else if (is_new_shader_created) {
+		get_ok_button()->set_text(TTR("Create"));
+		if (is_path_valid) {
+			_msg_path_valid(true, TTR("Will create a new shader file."));
+		}
+	} else if (load_enabled) {
+		get_ok_button()->set_text(TTR("Load"));
+		if (is_path_valid) {
+			_msg_path_valid(true, TTR("Will load an existing shader file."));
+		}
+	} else {
+		get_ok_button()->set_text(TTR("Create"));
+		_msg_path_valid(false, TTR("Shader file already exists."));
+
+		shader_ok = false;
+	}
+
+	get_ok_button()->set_disabled(!shader_ok);
+
+	Callable entered_call = callable_mp(this, &ShaderCreateDialog::_path_submitted);
+	if (shader_ok) {
+		if (!file_path->is_connected("text_submitted", entered_call)) {
+			file_path->connect("text_submitted", entered_call);
+		}
+	} else if (file_path->is_connected("text_submitted", entered_call)) {
+		file_path->disconnect("text_submitted", entered_call);
+	}
+}
+
+void ShaderCreateDialog::_bind_methods() {
+	ClassDB::bind_method(D_METHOD("config", "path", "built_in_enabled", "load_enabled"), &ShaderCreateDialog::config, DEFVAL(true), DEFVAL(true));
+
+	ADD_SIGNAL(MethodInfo("shader_created", PropertyInfo(Variant::OBJECT, "shader", PROPERTY_HINT_RESOURCE_TYPE, "Shader")));
+}
+
+ShaderCreateDialog::ShaderCreateDialog() {
+	_update_language_info();
+
+	// Main Controls.
+
+	gc = memnew(GridContainer);
+	gc->set_columns(2);
+
+	// Error Fields.
+
+	VBoxContainer *vb = memnew(VBoxContainer);
+
+	error_label = memnew(Label);
+	vb->add_child(error_label);
+
+	path_error_label = memnew(Label);
+	vb->add_child(path_error_label);
+
+	builtin_warning_label = memnew(Label);
+	builtin_warning_label->set_text(
+			TTR("Note: Built-in shaders can't be edited using an external editor."));
+	vb->add_child(builtin_warning_label);
+	builtin_warning_label->set_autowrap_mode(Label::AUTOWRAP_WORD_SMART);
+	builtin_warning_label->hide();
+
+	status_panel = memnew(PanelContainer);
+	status_panel->set_h_size_flags(Control::SIZE_FILL);
+	status_panel->set_v_size_flags(Control::SIZE_EXPAND_FILL);
+	status_panel->add_child(vb);
+
+	// Spacing.
+
+	Control *spacing = memnew(Control);
+	spacing->set_custom_minimum_size(Size2(0, 10 * EDSCALE));
+
+	vb = memnew(VBoxContainer);
+	vb->add_child(gc);
+	vb->add_child(spacing);
+	vb->add_child(status_panel);
+	add_child(vb);
+
+	// Language.
+
+	language_menu = memnew(OptionButton);
+	language_menu->set_custom_minimum_size(Size2(250, 0) * EDSCALE);
+	language_menu->set_h_size_flags(Control::SIZE_EXPAND_FILL);
+	gc->add_child(memnew(Label(TTR("Language:"))));
+	gc->add_child(language_menu);
+
+	for (int i = 0; i < SHADER_TYPE_MAX; i++) {
+		String language;
+		bool invalid = false;
+		switch (i) {
+			case SHADER_TYPE_TEXT:
+				language = "Shader";
+				default_language = i;
+				break;
+			case SHADER_TYPE_VISUAL:
+				language = "VisualShader";
+				break;
+			case SHADER_TYPE_MAX:
+				invalid = true;
+				break;
+			default:
+				invalid = true;
+				break;
+		}
+		if (invalid) {
+			continue;
+		}
+		language_menu->add_item(language);
+	}
+	if (default_language >= 0) {
+		language_menu->select(default_language);
+	}
+	current_language = default_language;
+	language_menu->connect("item_selected", callable_mp(this, &ShaderCreateDialog::_language_changed));
+
+	// Modes.
+
+	mode_menu = memnew(OptionButton);
+	for (const List<String>::Element *E = ShaderTypes::get_singleton()->get_types_list().front(); E; E = E->next()) {
+		mode_menu->add_item(E->get().capitalize());
+	}
+	gc->add_child(memnew(Label(TTR("Mode:"))));
+	gc->add_child(mode_menu);
+	mode_menu->connect("item_selected", callable_mp(this, &ShaderCreateDialog::_mode_changed));
+
+	// Templates.
+
+	template_menu = memnew(OptionButton);
+	gc->add_child(memnew(Label(TTR("Template:"))));
+	gc->add_child(template_menu);
+	template_menu->connect("item_selected", callable_mp(this, &ShaderCreateDialog::_template_changed));
+
+	// Built-in Shader.
+
+	internal = memnew(CheckBox);
+	internal->set_text(TTR("On"));
+	internal->connect("toggled", callable_mp(this, &ShaderCreateDialog::_built_in_toggled));
+	gc->add_child(memnew(Label(TTR("Built-in Shader:"))));
+	gc->add_child(internal);
+
+	// Path.
+
+	HBoxContainer *hb = memnew(HBoxContainer);
+	hb->set_h_size_flags(Control::SIZE_EXPAND_FILL);
+	hb->connect("sort_children", callable_mp(this, &ShaderCreateDialog::_path_hbox_sorted));
+	file_path = memnew(LineEdit);
+	file_path->connect("text_changed", callable_mp(this, &ShaderCreateDialog::_path_changed));
+	file_path->set_h_size_flags(Control::SIZE_EXPAND_FILL);
+	hb->add_child(file_path);
+	path_button = memnew(Button);
+	path_button->connect("pressed", callable_mp(this, &ShaderCreateDialog::_browse_path));
+	hb->add_child(path_button);
+	gc->add_child(memnew(Label(TTR("Path:"))));
+	gc->add_child(hb);
+
+	// Dialog Setup.
+
+	file_browse = memnew(EditorFileDialog);
+	file_browse->connect("file_selected", callable_mp(this, &ShaderCreateDialog::_file_selected));
+	file_browse->set_file_mode(EditorFileDialog::FILE_MODE_OPEN_FILE);
+	add_child(file_browse);
+
+	alert = memnew(AcceptDialog);
+	alert->get_label()->set_autowrap_mode(Label::AUTOWRAP_WORD_SMART);
+	alert->get_label()->set_align(Label::ALIGN_CENTER);
+	alert->get_label()->set_valign(Label::VALIGN_CENTER);
+	alert->get_label()->set_custom_minimum_size(Size2(325, 60) * EDSCALE);
+	add_child(alert);
+
+	get_ok_button()->set_text(TTR("Create"));
+	set_hide_on_ok(false);
+
+	set_title(TTR("Create Shader"));
+}
diff --git a/editor/shader_create_dialog.h b/editor/shader_create_dialog.h
new file mode 100644
index 0000000000..cc338cd6b5
--- /dev/null
+++ b/editor/shader_create_dialog.h
@@ -0,0 +1,115 @@
+/*************************************************************************/
+/*  shader_create_dialog.h                                               */
+/*************************************************************************/
+/*                       This file is part of:                           */
+/*                           GODOT ENGINE                                */
+/*                      https://godotengine.org                          */
+/*************************************************************************/
+/* Copyright (c) 2007-2021 Juan Linietsky, Ariel Manzur.                 */
+/* Copyright (c) 2014-2021 Godot Engine contributors (cf. AUTHORS.md).   */
+/*                                                                       */
+/* Permission is hereby granted, free of charge, to any person obtaining */
+/* a copy of this software and associated documentation files (the       */
+/* "Software"), to deal in the Software without restriction, including   */
+/* without limitation the rights to use, copy, modify, merge, publish,   */
+/* distribute, sublicense, and/or sell copies of the Software, and to    */
+/* permit persons to whom the Software is furnished to do so, subject to */
+/* the following conditions:                                             */
+/*                                                                       */
+/* The above copyright notice and this permission notice shall be        */
+/* included in all copies or substantial portions of the Software.       */
+/*                                                                       */
+/* THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,       */
+/* EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF    */
+/* MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.*/
+/* IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY  */
+/* CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT,  */
+/* TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE     */
+/* SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.                */
+/*************************************************************************/
+
+#ifndef SHADER_CREATE_DIALOG_H
+#define SHADER_CREATE_DIALOG_H
+
+#include "editor/editor_file_dialog.h"
+#include "editor/editor_settings.h"
+#include "scene/gui/check_box.h"
+#include "scene/gui/dialogs.h"
+#include "scene/gui/grid_container.h"
+#include "scene/gui/line_edit.h"
+#include "scene/gui/option_button.h"
+#include "scene/gui/panel_container.h"
+
+class ShaderCreateDialog : public ConfirmationDialog {
+	GDCLASS(ShaderCreateDialog, ConfirmationDialog);
+
+	enum ShaderType {
+		SHADER_TYPE_TEXT,
+		SHADER_TYPE_VISUAL,
+		SHADER_TYPE_MAX,
+	};
+
+	struct ShaderTypeData {
+		List<String> extensions;
+		String default_extension;
+		bool use_templates = false;
+	};
+
+	List<ShaderTypeData> language_data;
+
+	GridContainer *gc = nullptr;
+	Label *error_label = nullptr;
+	Label *path_error_label = nullptr;
+	Label *builtin_warning_label = nullptr;
+	PanelContainer *status_panel = nullptr;
+	OptionButton *language_menu = nullptr;
+	OptionButton *mode_menu = nullptr;
+	OptionButton *template_menu = nullptr;
+	CheckBox *internal = nullptr;
+	LineEdit *file_path = nullptr;
+	Button *path_button = nullptr;
+	EditorFileDialog *file_browse = nullptr;
+	AcceptDialog *alert = nullptr;
+
+	String initial_base_path;
+	bool is_new_shader_created = true;
+	bool is_path_valid = false;
+	bool is_built_in = false;
+	bool built_in_enabled = true;
+	bool load_enabled = false;
+	bool re_check_path = false;
+	int current_language = -1;
+	int default_language = -1;
+	int current_mode = 0;
+	int current_template = 0;
+
+	virtual void _update_language_info();
+
+	void _path_hbox_sorted();
+	void _path_changed(const String &p_path = String());
+	void _path_submitted(const String &p_path = String());
+	void _language_changed(int p_language = 0);
+	void _built_in_toggled(bool p_enabled);
+	void _template_changed(int p_template = 0);
+	void _mode_changed(int p_mode = 0);
+	void _browse_path();
+	void _file_selected(const String &p_file);
+	String _validate_path(const String &p_path, bool p_file_must_exist);
+	virtual void ok_pressed() override;
+	void _create_new();
+	void _load_exist();
+	void _msg_script_valid(bool valid, const String &p_msg = String());
+	void _msg_path_valid(bool valid, const String &p_msg = String());
+	void _update_dialog();
+
+protected:
+	void _update_theme();
+	void _notification(int p_what);
+	static void _bind_methods();
+
+public:
+	void config(const String &p_base_path, bool p_built_in_enabled = true, bool p_load_enabled = true);
+	ShaderCreateDialog();
+};
+
+#endif
diff --git a/servers/rendering/shader_types.cpp b/servers/rendering/shader_types.cpp
index 376d23ccb3..4488069698 100644
--- a/servers/rendering/shader_types.cpp
+++ b/servers/rendering/shader_types.cpp
@@ -31,18 +31,22 @@
 #include "shader_types.h"
 #include "core/math/math_defs.h"
 
-const Map<StringName, ShaderLanguage::FunctionInfo> &ShaderTypes::get_functions(RS::ShaderMode p_mode) {
+const Map<StringName, ShaderLanguage::FunctionInfo> &ShaderTypes::get_functions(RS::ShaderMode p_mode) const {
 	return shader_modes[p_mode].functions;
 }
 
-const Vector<StringName> &ShaderTypes::get_modes(RS::ShaderMode p_mode) {
+const Vector<StringName> &ShaderTypes::get_modes(RS::ShaderMode p_mode) const {
 	return shader_modes[p_mode].modes;
 }
 
-const Set<String> &ShaderTypes::get_types() {
+const Set<String> &ShaderTypes::get_types() const {
 	return shader_types;
 }
 
+const List<String> &ShaderTypes::get_types_list() const {
+	return shader_types_list;
+}
+
 ShaderTypes *ShaderTypes::singleton = nullptr;
 
 static ShaderLanguage::BuiltInInfo constt(ShaderLanguage::DataType p_type) {
@@ -440,8 +444,12 @@ ShaderTypes::ShaderTypes() {
 	shader_modes[RS::SHADER_SKY].modes.push_back("use_quarter_res_pass");
 	shader_modes[RS::SHADER_SKY].modes.push_back("disable_fog");
 
-	shader_types.insert("spatial");
-	shader_types.insert("canvas_item");
-	shader_types.insert("particles");
-	shader_types.insert("sky");
+	shader_types_list.push_back("spatial");
+	shader_types_list.push_back("canvas_item");
+	shader_types_list.push_back("particles");
+	shader_types_list.push_back("sky");
+
+	for (int i = 0; i < shader_types_list.size(); i++) {
+		shader_types.insert(shader_types_list[i]);
+	}
 }
diff --git a/servers/rendering/shader_types.h b/servers/rendering/shader_types.h
index e59cef6b79..75a310a1b1 100644
--- a/servers/rendering/shader_types.h
+++ b/servers/rendering/shader_types.h
@@ -46,13 +46,15 @@ class ShaderTypes {
 	static ShaderTypes *singleton;
 
 	Set<String> shader_types;
+	List<String> shader_types_list;
 
 public:
 	static ShaderTypes *get_singleton() { return singleton; }
 
-	const Map<StringName, ShaderLanguage::FunctionInfo> &get_functions(RS::ShaderMode p_mode);
-	const Vector<StringName> &get_modes(RS::ShaderMode p_mode);
-	const Set<String> &get_types();
+	const Map<StringName, ShaderLanguage::FunctionInfo> &get_functions(RS::ShaderMode p_mode) const;
+	const Vector<StringName> &get_modes(RS::ShaderMode p_mode) const;
+	const Set<String> &get_types() const;
+	const List<String> &get_types_list() const;
 
 	ShaderTypes();
 };