diff --git a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/ui/ResourceChooser.java b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/ui/ResourceChooser.java
index 2639611..d7eeb04 100644
--- a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/ui/ResourceChooser.java
+++ b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/adt/ui/ResourceChooser.java
@@ -16,10 +16,16 @@
 
 package com.android.ide.eclipse.adt.ui;
 
+import com.android.ide.eclipse.adt.refactorings.extractstring.ExtractStringRefactoring;
+import com.android.ide.eclipse.adt.refactorings.extractstring.ExtractStringWizard;
 import com.android.ide.eclipse.common.resources.IResourceRepository;
 import com.android.ide.eclipse.common.resources.ResourceItem;
 import com.android.ide.eclipse.common.resources.ResourceType;
 
+import org.eclipse.core.resources.IProject;
+import org.eclipse.jface.dialogs.IDialogConstants;
+import org.eclipse.ltk.ui.refactoring.RefactoringWizard;
+import org.eclipse.ltk.ui.refactoring.RefactoringWizardOpenOperation;
 import org.eclipse.swt.SWT;
 import org.eclipse.swt.events.SelectionAdapter;
 import org.eclipse.swt.events.SelectionEvent;
@@ -27,6 +33,8 @@
 import org.eclipse.swt.widgets.Composite;
 import org.eclipse.swt.widgets.Control;
 import org.eclipse.swt.widgets.Shell;
+import org.eclipse.ui.IWorkbench;
+import org.eclipse.ui.PlatformUI;
 import org.eclipse.ui.dialogs.AbstractElementListSelectionDialog;
 
 import java.util.regex.Matcher;
@@ -50,26 +58,32 @@
     private Button mSystemButton;
     
     private String mCurrentResource;
+
+    private final IProject mProject;
     
     /**
      * Creates a Resource Chooser dialog.
+     * @param project Project being worked on
      * @param type The type of the resource to choose
-     * @param project The repository for the project
-     * @param system The System resource repository
+     * @param projectResources The repository for the project
+     * @param systemResources The System resource repository
      * @param parent the parent shell
      */
-    public ResourceChooser(ResourceType type, IResourceRepository project,
-            IResourceRepository system, Shell parent) {
+    public ResourceChooser(IProject project, ResourceType type,
+            IResourceRepository projectResources,
+            IResourceRepository systemResources,
+            Shell parent) {
         super(parent, new ResourceLabelProvider());
+        mProject = project;
 
         mResourceType = type;
-        mProjectResources = project;
+        mProjectResources = projectResources;
         
         mProjectResourcePattern = Pattern.compile(
                 "@" + mResourceType.getName() + "/(.+)"); //$NON-NLS-1$ //$NON-NLS-2$
 
         if (SHOW_SYSTEM_RESOURCE) {
-            mSystemResources = system;
+            mSystemResources = systemResources;
             mSystemResourcePattern = Pattern.compile(
                     "@android:" + mResourceType.getName() + "/(.+)"); //$NON-NLS-1$ //$NON-NLS-2$
         }
@@ -108,7 +122,11 @@
         createFilterText(top);
         createFilteredList(top);
         
-        setupResourceListAndCurrent();
+        // create the "New Resource" button
+        createNewResButtons(top);
+
+        setupResourceList();
+        selectResourceString(mCurrentResource);
         
         return top;
     }
@@ -127,7 +145,9 @@
             @Override
             public void widgetSelected(SelectionEvent e) {
                 super.widgetSelected(e);
-                setListElements(mProjectResources.getResources(mResourceType));
+                if (mProjectButton.getSelection()) {
+                    setListElements(mProjectResources.getResources(mResourceType));
+                }
             }
         });
         mSystemButton = new Button(top, SWT.RADIO);
@@ -136,63 +156,138 @@
             @Override
             public void widgetSelected(SelectionEvent e) {
                 super.widgetSelected(e);
-                setListElements(mSystemResources.getResources(mResourceType));
+                if (mProjectButton.getSelection()) {
+                    setListElements(mSystemResources.getResources(mResourceType));
+                }
+            }
+        });
+    }
+
+    /**
+     * Creates the "New Resource" button.
+     * @param top the parent composite
+     */
+    private void createNewResButtons(Composite top) {
+        
+        Button newResButton = new Button(top, SWT.NONE);
+
+        String title = String.format("New %1$s...", mResourceType.getDisplayName());
+        newResButton.setText(title);
+
+        // We only support adding new strings right now
+        newResButton.setEnabled(mResourceType == ResourceType.STRING);
+
+        newResButton.addSelectionListener(new SelectionAdapter() {
+            @Override
+            public void widgetSelected(SelectionEvent e) {
+                super.widgetSelected(e);
+                
+                if (mResourceType == ResourceType.STRING) {
+                    createNewString();
+                }
             }
         });
     }
     
-    /**
-     * Setups the current list based on the current resource.
-     */
-    private void setupResourceListAndCurrent() {
-        if (setupInitialSelection(mProjectResourcePattern, mProjectResources) == false) {
-            // if we couldn't understand the current value, we default to the project resources
-            ResourceItem[] items = mProjectResources.getResources(mResourceType); 
-            setListElements(items);
-        }
+    private void createNewString() {
+        ExtractStringRefactoring ref = new ExtractStringRefactoring(
+                mProject, true /*enforceNew*/);
+        RefactoringWizard wizard = new ExtractStringWizard(ref, mProject);
+        RefactoringWizardOpenOperation op = new RefactoringWizardOpenOperation(wizard);
+        try {
+            IWorkbench w = PlatformUI.getWorkbench();
+            if (op.run(w.getDisplay().getActiveShell(), wizard.getDefaultPageTitle()) ==
+                    IDialogConstants.OK_ID) {
 
-        if (SHOW_SYSTEM_RESOURCE) {
-            if (setupInitialSelection(mProjectResourcePattern, mProjectResources) == false) {
-                if (setupInitialSelection(mSystemResourcePattern, mSystemResources) == false) {
-                    // if we couldn't understand the current value,
-                    // we default to the project resources
-                    ResourceItem[] items = mProjectResources.getResources(mResourceType); 
-                    setListElements(items);
-                    mProjectButton.setSelection(true);
-                } else {
-                    mSystemButton.setSelection(true);
-                }
-            } else {
-                mProjectButton.setSelection(true);
+                // Recompute the "current resource" to select the new id
+                setupResourceList();
+                
+                // select it if possible
+                selectItemName(ref.getXmlStringId());
             }
+        } catch (InterruptedException ex) {
+            // Interrupted. Pass.
         }
     }
+
+    /**
+     * @return The repository currently selected.
+     */
+    private IResourceRepository getCurrentRepository() {
+        IResourceRepository repo = mProjectResources;
+        
+        if (SHOW_SYSTEM_RESOURCE && mSystemButton.getSelection()) {
+            repo = mSystemResources;
+        }
+        return repo;
+    }
+
+    /**
+     * Setups the current list.
+     */
+    private void setupResourceList() {
+        IResourceRepository repo = getCurrentRepository();
+        setListElements(repo.getResources(mResourceType));
+    }
     
     /**
-     * Attempts to setup the list of element from a repository if the current resource
-     * matches the provided pattern. 
-     * @param pattern the pattern to test the current value
-     * @param repository the repository to use if the pattern matches.
-     * @return true if success.
+     * Select an item by its name, if possible.
      */
-    private boolean setupInitialSelection(Pattern pattern, IResourceRepository repository) {
-        Matcher m = pattern.matcher(mCurrentResource);
-        if (m.matches()) {
-            // we have a project resource, let's setup the list
-            ResourceItem[] items = repository.getResources(mResourceType); 
-            setListElements(items);
-            
-            // and let's look for the item we found
-            String name = m.group(1);
-
-            for (ResourceItem item : items) {
-                if (name.equals(item.getName())) {
-                    setSelection(new Object[] { item });
-                    break;
-                }
-            }
-            return true;
+    private void selectItemName(String itemName) {
+        if (itemName == null) {
+            return;
         }
-        return false;
+
+        IResourceRepository repo = getCurrentRepository();
+
+        ResourceItem[] items = repo.getResources(mResourceType); 
+        
+        for (ResourceItem item : items) {
+            if (itemName.equals(item.getName())) {
+                setSelection(new Object[] { item });
+                break;
+            }
+        }
+    }
+
+    /**
+     * Select an item by its full resource string.
+     * This also selects between project and system repository based on the resource string.
+     */
+    private void selectResourceString(String resourceString) {
+        boolean isSystem = false;
+        String itemName = null;
+        
+        // Is this a system resource?
+        // If not a system resource or if they are not available, this will be a project res.
+        if (SHOW_SYSTEM_RESOURCE) {
+            Matcher m = mSystemResourcePattern.matcher(resourceString);
+            if (m.matches()) {
+                itemName = m.group(1);
+                isSystem = true;
+            }
+        }
+
+        if (!isSystem && itemName == null) {
+            // Try to match project resource name
+            Matcher m = mProjectResourcePattern.matcher(resourceString);
+            if (m.matches()) {
+                itemName = m.group(1);
+            }
+        }
+        
+        // Update the repository selection
+        if (SHOW_SYSTEM_RESOURCE) {
+            mProjectButton.setSelection(!isSystem);
+            mSystemButton.setSelection(isSystem);
+        }
+
+        // Update the list
+        setupResourceList();
+        
+        // If we have a selection name, select it
+        if (itemName != null) {
+            selectItemName(itemName);
+        }
     }
 }
diff --git a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/editors/uimodel/UiResourceAttributeNode.java b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/editors/uimodel/UiResourceAttributeNode.java
index 56bb8f4..284cff4 100644
--- a/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/editors/uimodel/UiResourceAttributeNode.java
+++ b/tools/eclipse/plugins/com.android.ide.eclipse.adt/src/com/android/ide/eclipse/editors/uimodel/UiResourceAttributeNode.java
@@ -135,8 +135,11 @@
                 IResourceRepository systemRepository = data.getSystemResources();
 
                 // open a resource chooser dialog for specified resource type.
-                ResourceChooser dlg = new ResourceChooser(mType,
-                        projectRepository, systemRepository, shell);
+                ResourceChooser dlg = new ResourceChooser(project,
+                        mType,
+                        projectRepository,
+                        systemRepository,
+                        shell);
 
                 dlg.setCurrentResource(currentValue);