diff --git a/app/assets/javascripts/ide/components/new_dropdown/index.vue b/app/assets/javascripts/ide/components/new_dropdown/index.vue
index 9a529bdcee1dc9713079b8f3249489a44b564859..ea1dbee466903a1e71e8be64f19957f0f9434628 100644
--- a/app/assets/javascripts/ide/components/new_dropdown/index.vue
+++ b/app/assets/javascripts/ide/components/new_dropdown/index.vue
@@ -80,7 +80,7 @@ export default {
               @click="createNewItem('blob')"
             />
           </li>
-          <li><upload :path="path" @create="createTempEntry" /></li>
+          <upload :path="path" @create="createTempEntry" />
           <li>
             <item-button
               :label="__('New directory')"
diff --git a/app/assets/javascripts/ide/components/new_dropdown/upload.vue b/app/assets/javascripts/ide/components/new_dropdown/upload.vue
index 76d8a0aff3dcb4eafd8f694fb145f252ad917ced..7c10e055e91e352556aaf0595e52e334ae5ee09d 100644
--- a/app/assets/javascripts/ide/components/new_dropdown/upload.vue
+++ b/app/assets/javascripts/ide/components/new_dropdown/upload.vue
@@ -65,7 +65,7 @@ export default {
 </script>
 
 <template>
-  <div>
+  <li>
     <item-button
       :class="buttonCssClasses"
       :show-label="showLabel"
@@ -84,5 +84,5 @@ export default {
       data-qa-selector="file_upload_field"
       @change="openFile"
     />
-  </div>
+  </li>
 </template>