diff --git a/Sources/Files.swift b/Sources/Files.swift
index dc1f238..ae60dc4 100644
--- a/Sources/Files.swift
+++ b/Sources/Files.swift
@@ -317,7 +317,8 @@ public class FileSystem {
      */
     @discardableResult public func createFolder(at path: String) throws -> Folder {
         do {
-            try fileManager.createDirectory(atPath: path, withIntermediateDirectories: true, attributes: nil)
+            let absolutePath = fileManager.absolutePath(for: path)
+            try fileManager.createDirectory(atPath: absolutePath, withIntermediateDirectories: true, attributes: nil)
             return try Folder(path: path, using: fileManager)
         } catch {
             throw Folder.Error.creatingFolderFailed
diff --git a/Tests/FilesTests/FilesTests.swift b/Tests/FilesTests/FilesTests.swift
index 5ce0db9..cec286a 100644
--- a/Tests/FilesTests/FilesTests.swift
+++ b/Tests/FilesTests/FilesTests.swift
@@ -136,10 +136,13 @@ class FilesTests: XCTestCase {
     
     func testReadingFileWithTildePath() {
         performTest {
-            try FileSystem().homeFolder.createFile(named: "file")
-            let file = try File(path: "~/file")
+            try FileSystem().homeFolder.createFile(named: ".filestest")
+            let file = try File(path: "~/.filestest")
             try XCTAssertEqual(file.read(), Data())
-            XCTAssertEqual(file.path, FileSystem().homeFolder.path + "file")
+            XCTAssertEqual(file.path, FileSystem().homeFolder.path + ".filestest")
+
+            // Cleanup since we're performing a test in the actual home folder
+            try file.delete()
         }
     }
     
@@ -408,6 +411,17 @@ class FilesTests: XCTestCase {
         }
     }
 
+    func testCreatingFolderWithTildePathFromFileSystem() {
+        performTest {
+            let fileSystem = FileSystem()
+            try fileSystem.createFolder(at: "~/.filestest")
+            let createdFolder = try fileSystem.homeFolder.subfolder(named: ".filestest")
+
+            // Cleanup since we're performing a test in the actual home folder
+            try createdFolder.delete()
+        }
+    }
+
     func testCreateFileIfNeeded() {
         performTest {
             let fileA = try folder.createFileIfNeeded(withName: "file", contents: "Hello".data(using: .utf8)!)