diff --git a/che-theia-init-sources.yml b/che-theia-init-sources.yml
index 5c84ea507..dcaa9458d 100644
--- a/che-theia-init-sources.yml
+++ b/che-theia-init-sources.yml
@@ -17,6 +17,7 @@ sources:
     - extensions/eclipse-che-theia-file-sync-tracker
     - extensions/eclipse-che-theia-cli-endpoint
     - extensions/eclipse-che-theia-workspace
+    - extensions/eclipse-che-theia-filesystem
   plugins:
     - plugins/containers-plugin
     - plugins/workspace-plugin
diff --git a/extensions/eclipse-che-theia-filesystem/.gitignore b/extensions/eclipse-che-theia-filesystem/.gitignore
new file mode 100644
index 000000000..ea3d8e091
--- /dev/null
+++ b/extensions/eclipse-che-theia-filesystem/.gitignore
@@ -0,0 +1,7 @@
+node_modules
+.browser_modules
+lib
+*.log
+*-app/*
+!*-app/package.json
+.idea
diff --git a/extensions/eclipse-che-theia-filesystem/package.json b/extensions/eclipse-che-theia-filesystem/package.json
new file mode 100644
index 000000000..d27e7ee8d
--- /dev/null
+++ b/extensions/eclipse-che-theia-filesystem/package.json
@@ -0,0 +1,29 @@
+{
+  "name": "@eclipse-che/theia-filesystem-extension",
+  "keywords": [
+    "theia-extension"
+  ],
+  "version": "0.0.1",
+  "files": [
+    "lib",
+    "src"
+  ],
+  "dependencies": {
+    "@theia/filesystem": "next"
+  },
+  "scripts": {
+    "prepare": "yarn clean && yarn build",
+    "clean": "rimraf lib",
+    "format": "tsfmt -r --useTsfmt ../../configs/tsfmt.json",
+    "lint": "eslint --cache=true --no-error-on-unmatched-pattern=true \"{src,test}/**/*.{ts,tsx}\"",
+    "compile": "tsc",
+    "build": "concurrently -n \"format,lint,compile\" -c \"red,green,blue\" \"yarn format\" \"yarn lint\" \"yarn compile\"",
+    "watch": "tsc -w"
+  },
+  "license": "EPL-2.0",
+  "theiaExtensions": [
+    {
+      "frontend": "lib/browser/che-filesystem-module"
+    }
+  ]
+}
diff --git a/extensions/eclipse-che-theia-filesystem/src/browser/che-filesystem-module.ts b/extensions/eclipse-che-theia-filesystem/src/browser/che-filesystem-module.ts
new file mode 100644
index 000000000..7d5f1f9a8
--- /dev/null
+++ b/extensions/eclipse-che-theia-filesystem/src/browser/che-filesystem-module.ts
@@ -0,0 +1,30 @@
+/*********************************************************************
+ * Copyright (c) 2020 Red Hat, Inc.
+ *
+ * This program and the accompanying materials are made
+ * available under the terms of the Eclipse Public License 2.0
+ * which is available at https://www.eclipse.org/legal/epl-2.0/
+ *
+ * SPDX-License-Identifier: EPL-2.0
+ **********************************************************************/
+import { ContainerModule } from 'inversify';
+import { LabelProvider, ConfirmDialog } from '@theia/core/lib/browser';
+import { FileShouldOverwrite, FileStat } from '@theia/filesystem/lib/common/filesystem';
+import URI from '@theia/core/lib/common/uri';
+
+export default new ContainerModule((bind, unbind, isBound, rebind) => {
+    rebind(FileShouldOverwrite).toDynamicValue(context => async (file: FileStat, stat: FileStat): Promise<boolean> => {
+        if (Math.abs(file.lastModification - stat.lastModification) <= 1) {
+            return true;
+        }
+
+        const labelProvider = context.container.get(LabelProvider);
+        const dialog = new ConfirmDialog({
+            title: `The file '${labelProvider.getName(new URI(file.uri))}' has been changed on the file system.`,
+            msg: `Do you want to overwrite the changes made to '${labelProvider.getLongName(new URI(file.uri))}' on the file system?`,
+            ok: 'Yes',
+            cancel: 'No'
+        });
+        return !!await dialog.open();
+    }).inSingletonScope();
+});
diff --git a/extensions/eclipse-che-theia-filesystem/tsconfig.json b/extensions/eclipse-che-theia-filesystem/tsconfig.json
new file mode 100644
index 000000000..4e68c8fc4
--- /dev/null
+++ b/extensions/eclipse-che-theia-filesystem/tsconfig.json
@@ -0,0 +1,15 @@
+{
+  "extends": "../../configs/base.tsconfig.json",
+  "compilerOptions": {
+    "allowSyntheticDefaultImports": true,
+    "lib": [
+      "es6",
+      "dom"
+    ],
+    "rootDir": "src",
+    "outDir": "lib"
+  },
+  "include": [
+    "src"
+  ]
+}
diff --git a/yarn.lock b/yarn.lock
index cc291e435..02527438f 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2252,7 +2252,7 @@
     fuzzy "^0.1.3"
     vscode-ripgrep "^1.2.4"
 
-"@theia/filesystem@1.4.0-next.89694867":
+"@theia/filesystem@1.4.0-next.89694867", "@theia/filesystem@next":
   version "1.4.0-next.89694867"
   resolved "https://registry.yarnpkg.com/@theia/filesystem/-/filesystem-1.4.0-next.89694867.tgz#5c21e9515f82667f99f78e7c906c05ad0e22daae"
   integrity sha512-DW8e+k66zQlODh1y1/wv7qUpe6ZfgdmPtDVsfEtQnxgSgKrYHkKRchxFSwjwSYbGtCjobO/f2LRMHqsBo2tYrA==