diff --git a/Source/Editor/Content/Proxy/CollisionDataProxy.cs b/Source/Editor/Content/Proxy/CollisionDataProxy.cs
index 55e8c6327..e4a2381f0 100644
--- a/Source/Editor/Content/Proxy/CollisionDataProxy.cs
+++ b/Source/Editor/Content/Proxy/CollisionDataProxy.cs
@@ -141,7 +141,13 @@ namespace FlaxEditor.Content
                 });
             };
             var initialName = (modelItem?.ShortName ?? Path.GetFileNameWithoutExtension(model.Path)) + " Collision";
-            Editor.Instance.Windows.ContentWin.NewItem(this, null, create, initialName, withRenaming);
+            
+            // If folder can not have assets then move to folder with the model and create asset
+            var contentWin = Editor.Instance.Windows.ContentWin;
+            if (!contentWin.CurrentViewFolder.CanHaveAssets)
+                contentWin.Navigate(modelItem?.ParentFolder?.Node);
+            
+            contentWin.NewItem(this, null, create, initialName, withRenaming);
         }
     }
 }