diff --git a/lib/livebook_web/live/session_live/persistence_component.ex b/lib/livebook_web/live/session_live/persistence_component.ex
index a1a835d9a..fa3bd65c5 100644
--- a/lib/livebook_web/live/session_live/persistence_component.ex
+++ b/lib/livebook_web/live/session_live/persistence_component.ex
@@ -52,7 +52,12 @@ defmodule LivebookWeb.SessionLive.PersistenceComponent do
       |> assign_new(:attrs, fn -> attrs end)
       |> assign_new(:new_attrs, fn -> attrs end)
       |> assign_new(:draft_file, fn ->
-        file || Livebook.Config.local_file_system_home()
+        file ||
+          case assigns.session.origin do
+            # If it's a forked notebook, default to the same folder
+            {:file, file} -> FileSystem.File.containing_dir(file)
+            _ -> Livebook.Config.local_file_system_home()
+          end
       end)
       |> assign_new(:saved_file, fn -> file end)