diff --git a/news/chdir_mkdir.rst b/news/chdir_mkdir.rst
new file mode 100644
index 000000000..ff3ab0c97
--- /dev/null
+++ b/news/chdir_mkdir.rst
@@ -0,0 +1,23 @@
+**Added:**
+
+* tools: added ``mkdir`` to ``xonsh.tools.chdir`` e.g. ``with chdir('/tmp/new', mkdir=True): pass``.
+
+**Changed:**
+
+* <news item>
+
+**Deprecated:**
+
+* <news item>
+
+**Removed:**
+
+* <news item>
+
+**Fixed:**
+
+* <news item>
+
+**Security:**
+
+* <news item>
diff --git a/tests/test_dirstack.py b/tests/test_dirstack.py
index c106061d6..e70d10c8a 100644
--- a/tests/test_dirstack.py
+++ b/tests/test_dirstack.py
@@ -19,6 +19,16 @@ def test_simple(xession):
         assert os.getcwd() == HERE
 
 
+def test_chdir_mkdir(tmpdir):
+    d = str(tmpdir.join("chdir_mkdir"))
+    with chdir(d, mkdir=True):
+        assert os.getcwd() == d
+    assert os.getcwd() != d
+    with chdir(d, mkdir=True):
+        # Repeat to check there is no error for existing dir.
+        assert os.getcwd() == d
+
+
 def test_cdpath_simple(xession):
     xession.env.update(dict(CDPATH=PARENT, PWD=HERE))
     with chdir(os.path.normpath("/")):
diff --git a/xonsh/tools.py b/xonsh/tools.py
index ebb7b7c62..1001b1301 100644
--- a/xonsh/tools.py
+++ b/xonsh/tools.py
@@ -57,8 +57,10 @@ from xonsh.platform import (
 
 
 @contextmanager
-def chdir(adir):
+def chdir(adir, mkdir=False):
     old_dir = os.getcwd()
+    if mkdir:
+        os.makedirs(adir, exist_ok=True)
     os.chdir(adir)
     try:
         yield