diff --git a/CHANGELOG.md b/CHANGELOG.md
index 77a91d23b8776..412473d665f88 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,7 +5,9 @@
 - [Previous Changelogs](https://github.com/eclipse-theia/theia/tree/master/doc/changelogs/)
 
 ## Unreleased
+
 - [terminal] Use application shell methods for expanding/collapsing bottom panel for "Terminal: Toggle Terminal" command [#13131](https://github.com/eclipse-theia/theia/pull/13131)
+- [workspace] Create an empty workspace if no workspace is active on updateWorkspaceFolders [#13181](https://github.com/eclipse-theia/theia/pull/13181) - contributed on behalf of STMicroelectronics
 
 ## v1.44.0 - 11/30/2023
 
diff --git a/packages/workspace/src/browser/workspace-service.ts b/packages/workspace/src/browser/workspace-service.ts
index 81f1ff8c0468e..178bd9cf98141 100644
--- a/packages/workspace/src/browser/workspace-service.ts
+++ b/packages/workspace/src/browser/workspace-service.ts
@@ -404,8 +404,12 @@ export class WorkspaceService implements FrontendApplicationContribution {
     }
 
     async spliceRoots(start: number, deleteCount?: number, ...rootsToAdd: URI[]): Promise<URI[]> {
-        if (!this._workspace) {
-            throw new Error('There is no active workspace');
+        if (!this._workspace || this._workspace.isDirectory) {
+            const untitledWorkspace = await this.getUntitledWorkspace();
+            await this.save(untitledWorkspace);
+            if (!this._workspace) {
+                throw new Error('Could not create new untitled workspace');
+            }
         }
         const dedup = new Set<string>();
         const roots = this._roots.map(root => (dedup.add(root.resource.toString()), root.resource.toString()));
@@ -421,10 +425,7 @@ export class WorkspaceService implements FrontendApplicationContribution {
         if (!toRemove.length && !toAdd.length) {
             return [];
         }
-        if (this._workspace.isDirectory) {
-            const untitledWorkspace = await this.getUntitledWorkspace();
-            await this.save(untitledWorkspace);
-        }
+
         const currentData = await this.getWorkspaceDataFromFile();
         const newData = WorkspaceData.buildWorkspaceData(roots, currentData);
         await this.writeWorkspaceFile(this._workspace, newData);