diff --git a/mopidy/__main__.py b/mopidy/__main__.py
index c5e4991a..12d27ed3 100644
--- a/mopidy/__main__.py
+++ b/mopidy/__main__.py
@@ -10,14 +10,14 @@ sys.path.insert(0,
 
 from mopidy import get_version, settings, SettingsError
 from mopidy.process import CoreProcess
-from mopidy.utils import get_class, get_or_create_dotdir
+from mopidy.utils import get_class, get_or_create_folder
 
 logger = logging.getLogger('mopidy.main')
 
 def main():
     options = _parse_options()
     _setup_logging(options.verbosity_level)
-    get_or_create_dotdir('~/.mopidy/')
+    get_or_create_folder('~/.mopidy/')
     core_queue = multiprocessing.Queue()
     get_class(settings.SERVER)(core_queue)
     core = CoreProcess(core_queue)
diff --git a/mopidy/utils.py b/mopidy/utils.py
index 93e26c24..a752b3e7 100644
--- a/mopidy/utils.py
+++ b/mopidy/utils.py
@@ -25,13 +25,12 @@ def get_class(name):
     class_object = getattr(module, class_name)
     return class_object
 
-def get_or_create_dotdir(dotdir):
-    # FIXME get_or_create_folder ...
-    dotdir = os.path.expanduser(dotdir)
-    if not os.path.isdir(dotdir):
-        logger.info(u'Creating %s', dotdir)
-        os.mkdir(dotdir, 0755)
-    return dotdir
+def get_or_create_folder(folder):
+    folder = os.path.expanduser(folder)
+    if not os.path.isdir(folder):
+        logger.info(u'Creating %s', folder)
+        os.mkdir(folder, 0755)
+    return folder
 
 def path_to_uri(*paths):
     path = os.path.join(*paths)
diff --git a/tests/utils_test.py b/tests/utils_test.py
index 0c814be0..321eda0b 100644
--- a/tests/utils_test.py
+++ b/tests/utils_test.py
@@ -2,15 +2,43 @@
 
 import os
 import sys
+import shutil
 import tempfile
 import unittest
 import urllib
 
-from mopidy.utils import parse_m3u, parse_mpd_tag_cache, path_to_uri
+from mopidy.utils import *
 from mopidy.models import Track, Artist, Album
 
 from tests import SkipTest, data_folder
 
+class GetOrCreateFolderTest(unittest.TestCase):
+    def setUp(self):
+        self.parent = tempfile.mkdtemp()
+
+    def tearDown(self):
+        if os.path.isdir(self.parent):
+            shutil.rmtree(self.parent)
+
+    def test_creating_folder(self):
+        folder = os.path.join(self.parent, 'test')
+        self.assert_(not os.path.exists(folder))
+        self.assert_(not os.path.isdir(folder))
+        created = get_or_create_folder(folder)
+        self.assert_(os.path.exists(folder))
+        self.assert_(os.path.isdir(folder))
+        self.assertEqual(created, folder)
+
+    def test_creating_existing_folder(self):
+        created = get_or_create_folder(self.parent)
+        self.assert_(os.path.exists(self.parent))
+        self.assert_(os.path.isdir(self.parent))
+        self.assertEqual(created, self.parent)
+
+    def test_that_userfolder_is_expanded(self):
+        raise SkipTest # Not sure how to safely test this
+
+
 class PathToFileURITest(unittest.TestCase):
     def test_simple_path(self):
         if sys.platform == 'win32':