diff --git a/CHANGELOG.md b/CHANGELOG.md
index 846cac2fc..6550419c1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,4 @@
+* Fixed: Save As dialog now defaults to directory path of current editor
 * Fixed: Using toggle comment shortcut respects indentation level
 
 * Fixed: Search never completing in the command panel
diff --git a/spec/app/pane-spec.coffee b/spec/app/pane-spec.coffee
index c8ee47b0b..137ceac07 100644
--- a/spec/app/pane-spec.coffee
+++ b/spec/app/pane-spec.coffee
@@ -2,6 +2,7 @@ PaneContainer = require 'pane-container'
 Pane = require 'pane'
 {View} = require 'space-pen'
 $ = require 'jquery'
+{dirname} = require 'path'
 
 describe "Pane", ->
   [container, view1, view2, editSession1, editSession2, pane] = []
@@ -373,7 +374,7 @@ describe "Pane", ->
 
         pane.trigger 'core:save-as'
 
-        expect(atom.showSaveDialogSync).toHaveBeenCalled()
+        expect(atom.showSaveDialogSync).toHaveBeenCalledWith(dirname(editSession2.getPath()))
         expect(editSession2.saveAs).toHaveBeenCalledWith('/selected/path')
 
     describe "when the current item does not have a saveAs method", ->
diff --git a/src/app/atom.coffee b/src/app/atom.coffee
index b3639eee8..94b6fb25b 100644
--- a/src/app/atom.coffee
+++ b/src/app/atom.coffee
@@ -199,9 +199,10 @@ window.atom =
   showSaveDialog: (callback) ->
     callback(showSaveDialogSync())
 
-  showSaveDialogSync: ->
+  showSaveDialogSync: (defaultPath) ->
+    defaultPath ?= project?.getPath()
     currentWindow = remote.getCurrentWindow()
-    dialog.showSaveDialog currentWindow, title: 'Save File'
+    dialog.showSaveDialog currentWindow, {title: 'Save File', defaultPath}
 
   openDevTools: ->
     remote.getCurrentWindow().openDevTools()
diff --git a/src/app/pane.coffee b/src/app/pane.coffee
index 043c49ccf..fa9a2fcb5 100644
--- a/src/app/pane.coffee
+++ b/src/app/pane.coffee
@@ -1,3 +1,4 @@
+{dirname} = require 'path'
 {View} = require 'space-pen'
 $ = require 'jquery'
 _ = require 'underscore'
@@ -222,7 +223,10 @@ class Pane extends View
 
   saveItemAs: (item, nextAction) ->
     return unless item.saveAs?
-    path = atom.showSaveDialogSync()
+
+    itemPath = item.getUri?()
+    itemPath = dirname(itemPath) if itemPath
+    path = atom.showSaveDialogSync(itemPath)
     if path
       item.saveAs(path)
       nextAction?()