diff --git a/dlls/shell32/changenotify.c b/dlls/shell32/changenotify.c
index 95f2e42f97e..43c81c334bc 100644
--- a/dlls/shell32/changenotify.c
+++ b/dlls/shell32/changenotify.c
@@ -243,7 +243,7 @@ static BOOL should_notify( LPCITEMIDLIST changed, LPCITEMIDLIST watched, BOOL su
         return FALSE;
     if (ILIsEqual( watched, changed ) )
         return TRUE;
-    if( sub && ILIsParent( watched, changed, TRUE ) )
+    if( sub && ILIsParent( watched, changed, FALSE ) )
         return TRUE;
     return FALSE;
 }
diff --git a/dlls/shell32/tests/shlfolder.c b/dlls/shell32/tests/shlfolder.c
index 43b721d5b78..31ef75292cf 100644
--- a/dlls/shell32/tests/shlfolder.c
+++ b/dlls/shell32/tests/shlfolder.c
@@ -4218,6 +4218,7 @@ struct ChNotifyTest {
     const char path_2[256];
 } chnotify_tests[] = {
     {"MKDIR", 1, 0, SHCNE_MKDIR, "C:\\shell32_cn_test\\test", ""},
+    {"CREATE", 1, 0, SHCNE_CREATE, "C:\\shell32_cn_test\\test\\file.txt", ""},
     {"RMDIR", 1, 0, SHCNE_RMDIR, "C:\\shell32_cn_test\\test", ""},
 };