diff --git a/Source/Editor/Content/Proxy/MaterialProxy.cs b/Source/Editor/Content/Proxy/MaterialProxy.cs
index c6a9755fc..cf7c8b77e 100644
--- a/Source/Editor/Content/Proxy/MaterialProxy.cs
+++ b/Source/Editor/Content/Proxy/MaterialProxy.cs
@@ -72,10 +72,7 @@ namespace FlaxEditor.Content
         /// <param name="materialItem">The material item to use as a base material.</param>
         public static void CreateMaterialInstance(BinaryAssetItem materialItem)
         {
-            if (materialItem == null)
-                throw new ArgumentNullException();
-
-            var materialInstanceName = materialItem.FileName.Replace(".flax", " Instance");
+            var materialInstanceName = materialItem.ShortName + " Instance";
             var materialInstanceProxy = Editor.Instance.ContentDatabase.GetProxy<MaterialInstance>();
             Editor.Instance.Windows.ContentWin.NewItem(materialInstanceProxy, null, item => OnMaterialInstanceCreated(item, materialItem), materialInstanceName);
         }