diff --git a/src/components/MenuBubble.vue b/src/components/MenuBubble.vue
index 706de84adaf..61b756b0cfd 100644
--- a/src/components/MenuBubble.vue
+++ b/src/components/MenuBubble.vue
@@ -137,7 +137,7 @@ export default {
 				return
 			}
 			const startPath = this.filePath.split('/').slice(0, -1).join('/')
-			OC.dialogs.filepicker(t('text', 'Select file to link to'), (file) => {
+			OC.dialogs.filepicker(t('text', 'Select file or directory to link to'), (file) => {
 				const client = OC.Files.getClient()
 				client.getFileInfo(file).then((_status, fileInfo) => {
 					const path = optimalPath(this.filePath, `${fileInfo.path}/${fileInfo.name}`)
@@ -146,7 +146,7 @@ export default {
 					this.$editor.chain().setLink({ href }).focus().run()
 					this.hideLinkMenu()
 				})
-			}, false, [], true, undefined, startPath)
+			}, false, [], true, 1, startPath, { allowDirectoryChooser: true })
 		},
 		setLinkUrl() {
 			let url = this.linkUrl
diff --git a/src/helpers/files.js b/src/helpers/files.js
index f4b5625d07e..6a26741275b 100644
--- a/src/helpers/files.js
+++ b/src/helpers/files.js
@@ -34,6 +34,11 @@ const optimalPath = function(from, to) {
 	while (current[0] === target[0]) {
 		current.shift()
 		target.shift()
+		// Handle case where target is the current directory
+		if (current.length === 0 && target.length === 0) {
+			return '.'
+		}
+
 	}
 	const relativePath = current.fill('..').concat(target)
 	const absolutePath = to.split('/')