diff --git a/crates/file_finder/src/file_finder.rs b/crates/file_finder/src/file_finder.rs
index 71fcfba76363f7d6a3d6d5d37d8f87f3b6a6cdfb..4e11960b6b1a49aa6a774125f05cd0413da0038c 100644
--- a/crates/file_finder/src/file_finder.rs
+++ b/crates/file_finder/src/file_finder.rs
@@ -980,12 +980,12 @@ impl FileFinderDelegate {
                     .collect::<Vec<_>>();
                 let worktree_count = available_worktree.len();
                 let mut expect_worktree = available_worktree.first().cloned();
-                for worktree in available_worktree {
+                for worktree in &available_worktree {
                     let worktree_root = worktree.read(cx).root_name();
                     if worktree_count > 1 {
                         if let Ok(suffix) = query_path.strip_prefix(worktree_root) {
                             query_path = Cow::Owned(suffix.to_owned());
-                            expect_worktree = Some(worktree);
+                            expect_worktree = Some(worktree.clone());
                             break;
                         }
                     }
@@ -993,7 +993,13 @@ impl FileFinderDelegate {
 
                 if let Some(FoundPath { ref project, .. }) = self.currently_opened_path {
                     let worktree_id = project.worktree_id;
-                    expect_worktree = self.project.read(cx).worktree_for_id(worktree_id, cx);
+                    let focused_file_in_available_worktree = available_worktree
+                        .iter()
+                        .any(|wt| wt.read(cx).id() == worktree_id);
+
+                    if focused_file_in_available_worktree {
+                        expect_worktree = self.project.read(cx).worktree_for_id(worktree_id, cx);
+                    }
                 }
 
                 if let Some(worktree) = expect_worktree {
diff --git a/crates/file_finder/src/file_finder_tests.rs b/crates/file_finder/src/file_finder_tests.rs
index b477f0671a49e2c28cd08d4ea6c188f2527ff8ae..59ade17eb797bfc9549e6642f0a0b7375a0df831 100644
--- a/crates/file_finder/src/file_finder_tests.rs
+++ b/crates/file_finder/src/file_finder_tests.rs
@@ -1260,6 +1260,93 @@ async fn test_create_file_for_multiple_worktrees(cx: &mut TestAppContext) {
     });
 }
 
+#[gpui::test]
+async fn test_create_file_focused_file_does_not_belong_to_available_worktrees(
+    cx: &mut TestAppContext,
+) {
+    let app_state = init_test(cx);
+    app_state
+        .fs
+        .as_fake()
+        .insert_tree(path!("/roota"), json!({ "the-parent-dira": { "filea": ""}}))
+        .await;
+
+    app_state
+        .fs
+        .as_fake()
+        .insert_tree(path!("/rootb"), json!({"the-parent-dirb":{ "fileb": ""}}))
+        .await;
+
+    let project = Project::test(
+        app_state.fs.clone(),
+        [path!("/roota").as_ref(), path!("/rootb").as_ref()],
+        cx,
+    )
+    .await;
+
+    let (multi_workspace, cx) =
+        cx.add_window_view(|window, cx| MultiWorkspace::test_new(project, window, cx));
+    let workspace = multi_workspace.read_with(cx, |mw, _| mw.workspace().clone());
+
+    let (worktree_id_a, worktree_id_b) = cx.read(|cx| {
+        let worktrees = workspace.read(cx).worktrees(cx).collect::<Vec<_>>();
+        (worktrees[0].read(cx).id(), worktrees[1].read(cx).id())
+    });
+    workspace
+        .update_in(cx, |workspace, window, cx| {
+            workspace.open_abs_path(
+                PathBuf::from(path!("/external/external-file.txt")),
+                OpenOptions {
+                    visible: Some(OpenVisible::None),
+                    ..OpenOptions::default()
+                },
+                window,
+                cx,
+            )
+        })
+        .await
+        .unwrap();
+
+    cx.run_until_parked();
+    let finder = open_file_picker(&workspace, cx);
+
+    finder
+        .update_in(cx, |f, window, cx| {
+            f.delegate
+                .spawn_search(test_path_position("new-file.txt"), window, cx)
+        })
+        .await;
+
+    cx.run_until_parked();
+    finder.update_in(cx, |f, window, cx| {
+        assert_eq!(f.delegate.matches.len(), 1);
+        f.delegate.confirm(false, window, cx); // ✓ works
+    });
+    cx.run_until_parked();
+
+    cx.read(|cx| {
+        let active_editor = workspace.read(cx).active_item_as::<Editor>(cx).unwrap();
+
+        let project_path = active_editor.read(cx).project_path(cx);
+
+        assert!(
+            project_path.is_some(),
+            "Active editor should have a project path"
+        );
+
+        let project_path = project_path.unwrap();
+
+        assert!(
+            project_path.worktree_id == worktree_id_a || project_path.worktree_id == worktree_id_b,
+            "New file should be created in one of the available worktrees (A or B), \
+                not in a directory derived from the external file. Got worktree_id: {:?}",
+            project_path.worktree_id
+        );
+
+        assert_eq!(project_path.path.as_ref(), rel_path("new-file.txt"));
+    });
+}
+
 #[gpui::test]
 async fn test_create_file_no_focused_with_multiple_worktrees(cx: &mut TestAppContext) {
     let app_state = init_test(cx);