diff --git a/res/css/_common.scss b/res/css/_common.scss
index adf4c93290..77b474a013 100644
--- a/res/css/_common.scss
+++ b/res/css/_common.scss
@@ -171,7 +171,7 @@ input[type=text]:focus, input[type=password]:focus, textarea:focus {
     :not(.mx_textinput):not(.mx_Field):not(.mx_no_textinput) > input[type=search],
     .mx_textinput {
         color: $input-darker-fg-color;
-        background-color: $input-darker-bg-color;
+        background-color: $primary-bg-color;
         border: none;
     }
 }
diff --git a/res/css/structures/_LeftPanel.scss b/res/css/structures/_LeftPanel.scss
index 7d10fdb6d6..f83195f847 100644
--- a/res/css/structures/_LeftPanel.scss
+++ b/res/css/structures/_LeftPanel.scss
@@ -125,3 +125,53 @@ limitations under the License.
         margin-top: 12px;
     }
 }
+
+.mx_LeftPanel_exploreAndFilterRow {
+    display: flex;
+
+    .mx_SearchBox {
+        flex: 1 1 0;
+        min-width: 0;
+    }
+}
+
+.mx_LeftPanel_explore {
+    flex: 0 0 40%;
+    overflow: hidden;
+    transition: flex-basis 0.2s;
+    box-sizing: border-box;
+
+    &.mx_LeftPanel_explore_hidden {
+        flex-basis: 0;
+    }
+
+    .mx_AccessibleButton {
+        font-size: 14px;
+        margin: 9px;
+        margin-right: 0;
+        padding: 9px;
+        padding-left: 42px;
+        font-weight: 600;
+        color: $notice-secondary-color;
+        position: relative;
+        border-radius: 4px;
+
+        &:hover {
+            background-color: $primary-bg-color;
+        }
+
+        &::before {
+            cursor: pointer;
+            mask: url('$(res)/img/explore.svg');
+            mask-repeat: no-repeat;
+            mask-position: center center;
+            content: "";
+            left: 14px;
+            top: 10px;
+            width: 16px;
+            height: 16px;
+            background-color: $notice-secondary-color;
+            position: absolute;
+        }
+    }
+}
diff --git a/res/css/structures/_SearchBox.scss b/res/css/structures/_SearchBox.scss
index 9434d93bd2..23ee06f7b3 100644
--- a/res/css/structures/_SearchBox.scss
+++ b/res/css/structures/_SearchBox.scss
@@ -14,12 +14,21 @@ See the License for the specific language governing permissions and
 limitations under the License.
 */
 
-.mx_SearchBox_closeButton {
-    cursor: pointer;
-    background-image: url('$(res)/img/icons-close.svg');
-    background-repeat: no-repeat;
-    width: 16px;
-    height: 16px;
-    background-position: center;
-    padding: 9px;
+.mx_SearchBox {
+    flex: 1 1 0;
+    min-width: 0;
+
+    &.mx_SearchBox_blurred:not(:hover) {
+        background-color: transparent;
+    }
+
+    .mx_SearchBox_closeButton {
+        cursor: pointer;
+        background-image: url('$(res)/img/icons-close.svg');
+        background-repeat: no-repeat;
+        width: 16px;
+        height: 16px;
+        background-position: center;
+        padding: 9px;
+    }
 }
diff --git a/res/css/views/rooms/_RoomList.scss b/res/css/views/rooms/_RoomList.scss
index b51d720e4d..5ed22f997d 100644
--- a/res/css/views/rooms/_RoomList.scss
+++ b/res/css/views/rooms/_RoomList.scss
@@ -27,10 +27,6 @@ limitations under the License.
     position: relative;
 }
 
-.mx_SearchBox {
-    flex: none;
-}
-
 /* hide resize handles next to collapsed / empty sublists */
 .mx_RoomList .mx_RoomSubList:not(.mx_RoomSubList_nonEmpty) + .mx_ResizeHandle {
     display: none;
diff --git a/res/img/explore.svg b/res/img/explore.svg
new file mode 100644
index 0000000000..3956e912ac
--- /dev/null
+++ b/res/img/explore.svg
@@ -0,0 +1,97 @@
+<?xml version="1.0" encoding="UTF-8" standalone="no"?>
+<svg
+   xmlns:dc="http://purl.org/dc/elements/1.1/"
+   xmlns:cc="http://creativecommons.org/ns#"
+   xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#"
+   xmlns:svg="http://www.w3.org/2000/svg"
+   xmlns="http://www.w3.org/2000/svg"
+   xmlns:sodipodi="http://sodipodi.sourceforge.net/DTD/sodipodi-0.dtd"
+   xmlns:inkscape="http://www.inkscape.org/namespaces/inkscape"
+   width="21.124001"
+   height="14.896"
+   viewBox="0 0 21.124001 14.896"
+   version="1.1"
+   id="svg21"
+   sodipodi:docname="explore.svg"
+   inkscape:version="0.92.4 (unknown)">
+  <metadata
+     id="metadata25">
+    <rdf:RDF>
+      <cc:Work
+         rdf:about="">
+        <dc:format>image/svg+xml</dc:format>
+        <dc:type
+           rdf:resource="http://purl.org/dc/dcmitype/StillImage" />
+        <dc:title></dc:title>
+      </cc:Work>
+    </rdf:RDF>
+  </metadata>
+  <sodipodi:namedview
+     pagecolor="#ffffff"
+     bordercolor="#666666"
+     borderopacity="1"
+     objecttolerance="10"
+     gridtolerance="10"
+     guidetolerance="10"
+     inkscape:pageopacity="0"
+     inkscape:pageshadow="2"
+     inkscape:window-width="1920"
+     inkscape:window-height="1016"
+     id="namedview23"
+     showgrid="false"
+     fit-margin-top="0.5"
+     fit-margin-left="0.5"
+     fit-margin-right="0.5"
+     fit-margin-bottom="0.5"
+     inkscape:zoom="3.1891892"
+     inkscape:cx="-23.683763"
+     inkscape:cy="5.4480001"
+     inkscape:window-x="0"
+     inkscape:window-y="27"
+     inkscape:window-maximized="1"
+     inkscape:current-layer="svg21" />
+  <defs
+     id="defs15">
+    <filter
+       id="a"
+       width="1.118"
+       height="1.158"
+       x="-0.059"
+       y="-0.079000004"
+       filterUnits="objectBoundingBox">
+      <feOffset
+         dy="2"
+         in="SourceAlpha"
+         result="shadowOffsetOuter1"
+         id="feOffset2" />
+      <feGaussianBlur
+         in="shadowOffsetOuter1"
+         result="shadowBlurOuter1"
+         stdDeviation="16"
+         id="feGaussianBlur4" />
+      <feColorMatrix
+         in="shadowBlurOuter1"
+         result="shadowMatrixOuter1"
+         values="0 0 0 0 0 0 0 0 0 0.473684211 0 0 0 0 1 0 0 0 0.241258741 0"
+         id="feColorMatrix6" />
+      <feMerge
+         id="feMerge12">
+        <feMergeNode
+           in="shadowMatrixOuter1"
+           id="feMergeNode8" />
+        <feMergeNode
+           in="SourceGraphic"
+           id="feMergeNode10" />
+      </feMerge>
+    </filter>
+  </defs>
+  <g
+     transform="translate(-91.438,-120.552)"
+     id="g19"
+     style="fill:none;fill-rule:evenodd;stroke:#61708b;stroke-width:1.29999995;stroke-linecap:round;filter:url(#a)">
+    <path
+       d="m 98,122 h 13 m -13,6 h 13 m -13,6 h 13 M 93,122 h 0.5 m -0.5,6 h 0.5 m -0.5,6 h 0.5"
+       id="path17"
+       inkscape:connector-curvature="0" />
+  </g>
+</svg>
diff --git a/src/components/structures/LeftPanel.js b/src/components/structures/LeftPanel.js
index f083e5ab38..fd315d2540 100644
--- a/src/components/structures/LeftPanel.js
+++ b/src/components/structures/LeftPanel.js
@@ -81,6 +81,9 @@ const LeftPanel = createReactClass({
         if (this.state.searchFilter !== nextState.searchFilter) {
             return true;
         }
+        if (this.state.searchExpanded !== nextState.searchExpanded) {
+            return true;
+        }
 
         return false;
     },
@@ -203,12 +206,23 @@ const LeftPanel = createReactClass({
         if (source === "keyboard") {
             dis.dispatch({action: 'focus_composer'});
         }
+        this.setState({searchExpanded: false});
     },
 
     collectRoomList: function(ref) {
         this._roomList = ref;
     },
 
+    _onSearchFocus: function() {
+        this.setState({searchExpanded: true});
+    },
+
+    _onSearchBlur: function(event) {
+        if (event.target.value.length === 0) {
+            this.setState({searchExpanded: false});
+        }
+    },
+
     render: function() {
         const RoomList = sdk.getComponent('rooms.RoomList');
         const RoomBreadcrumbs = sdk.getComponent('rooms.RoomBreadcrumbs');
@@ -217,6 +231,7 @@ const LeftPanel = createReactClass({
         const TopLeftMenuButton = sdk.getComponent('structures.TopLeftMenuButton');
         const SearchBox = sdk.getComponent('structures.SearchBox');
         const CallPreview = sdk.getComponent('voip.CallPreview');
+        const AccessibleButton = sdk.getComponent('elements.AccessibleButton');
 
         const tagPanelEnabled = SettingsStore.getValue("TagPanel.enableTagPanel");
         let tagPanelContainer;
@@ -240,11 +255,23 @@ const LeftPanel = createReactClass({
             },
         );
 
+        let exploreButton;
+        if (!this.props.collapsed) {
+            exploreButton = (
+                <div className={classNames("mx_LeftPanel_explore", {"mx_LeftPanel_explore_hidden": this.state.searchExpanded})}>
+                    <AccessibleButton onClick={() => dis.dispatch({action: 'view_room_directory'})}>{_t("Explore")}</AccessibleButton>
+                </div>
+            );
+        }
+
         const searchBox = (<SearchBox
             enableRoomSearchFocus={true}
-            placeholder={ _t('Filter room names') }
+            blurredPlaceholder={ _t('Filter') }
+            placeholder={ _t('Filter rooms…') }
             onSearch={ this.onSearch }
             onCleared={ this.onSearchCleared }
+            onFocus={this._onSearchFocus}
+            onBlur={this._onSearchBlur}
             collapsed={this.props.collapsed} />);
 
         let breadcrumbs;
@@ -258,7 +285,10 @@ const LeftPanel = createReactClass({
                 <aside className={"mx_LeftPanel dark-panel"} onKeyDown={ this._onKeyDown } onFocus={ this._onFocus } onBlur={ this._onBlur }>
                     <TopLeftMenuButton collapsed={ this.props.collapsed } />
                     { breadcrumbs }
-                    { searchBox }
+                    <div className="mx_LeftPanel_exploreAndFilterRow">
+                        { exploreButton }
+                        { searchBox }
+                    </div>
                     <CallPreview ConferenceHandler={VectorConferenceHandler} />
                     <RoomList
                         ref={this.collectRoomList}
diff --git a/src/components/structures/RoomDirectory.js b/src/components/structures/RoomDirectory.js
index aa2e56d3c2..13ae83b067 100644
--- a/src/components/structures/RoomDirectory.js
+++ b/src/components/structures/RoomDirectory.js
@@ -321,11 +321,6 @@ module.exports = createReactClass({
         }
     },
 
-    onCreateRoomClicked: function() {
-        this.props.onFinished();
-        dis.dispatch({action: 'view_create_room'});
-    },
-
     onJoinClick: function(alias) {
         // If we don't have a particular instance id selected, just show that rooms alias
         if (!this.state.instanceId) {
@@ -602,17 +597,11 @@ module.exports = createReactClass({
             </div>;
         }
 
-        const createRoomButton = (<AccessibleButton
-            onClick={this.onCreateRoomClicked}
-            className="mx_RoomDirectory_createRoom"
-        >{_t("Create new room")}</AccessibleButton>);
-
         return (
             <BaseDialog
                 className={'mx_RoomDirectory_dialog'}
                 hasCancel={true}
                 onFinished={this.props.onFinished}
-                headerButton={createRoomButton}
                 title={_t("Room directory")}
             >
                 <div className="mx_RoomDirectory">
diff --git a/src/components/structures/SearchBox.js b/src/components/structures/SearchBox.js
index d8ff08adbf..4d68ff4e96 100644
--- a/src/components/structures/SearchBox.js
+++ b/src/components/structures/SearchBox.js
@@ -22,6 +22,7 @@ import { KeyCode } from '../../Keyboard';
 import dis from '../../dispatcher';
 import { throttle } from 'lodash';
 import AccessibleButton from '../../components/views/elements/AccessibleButton';
+import classNames from 'classnames';
 
 module.exports = createReactClass({
     displayName: 'SearchBox',
@@ -47,6 +48,7 @@ module.exports = createReactClass({
     getInitialState: function() {
         return {
             searchTerm: "",
+            blurred: true,
         };
     },
 
@@ -94,7 +96,18 @@ module.exports = createReactClass({
     },
 
     _onFocus: function(ev) {
+        this.setState({blurred: false});
         ev.target.select();
+        if (this.props.onFocus) {
+            this.props.onFocus(ev);
+        }
+    },
+
+    _onBlur: function(ev) {
+        this.setState({blurred: true});
+        if (this.props.onBlur) {
+            this.props.onBlur(ev);
+        }
     },
 
     _clearSearch: function(source) {
@@ -119,9 +132,15 @@ module.exports = createReactClass({
                     onClick={ () => {this._clearSearch("button"); } }>
             </AccessibleButton>) : undefined;
 
+        // show a shorter placeholder when blurred, if requested
+        // this is used for the room filter field that has
+        // the explore button next to it when blurred
+        const placeholder = this.state.blurred ?
+            (this.props.blurredPlaceholder || this.props.placeholder) :
+            this.props.placeholder;
         const className = this.props.className || "";
         return (
-            <div className="mx_SearchBox mx_textinput">
+            <div className={classNames("mx_SearchBox", "mx_textinput", {"mx_SearchBox_blurred": this.state.blurred})}>
                 <input
                     key="searchfield"
                     type="text"
@@ -131,7 +150,8 @@ module.exports = createReactClass({
                     onFocus={ this._onFocus }
                     onChange={ this.onChange }
                     onKeyDown={ this._onKeyDown }
-                    placeholder={ this.props.placeholder }
+                    onBlur={this._onBlur}
+                    placeholder={ placeholder }
                 />
                 { clearButton }
             </div>
diff --git a/src/components/views/rooms/RoomList.js b/src/components/views/rooms/RoomList.js
index 2454f012f8..da2d11f34b 100644
--- a/src/components/views/rooms/RoomList.js
+++ b/src/components/views/rooms/RoomList.js
@@ -758,7 +758,7 @@ module.exports = createReactClass({
                 headerItems: this._getHeaderItems('im.vector.fake.recent'),
                 order: "recent",
                 incomingCall: incomingCallIfTaggedAs('im.vector.fake.recent'),
-                onAddRoom: () => {dis.dispatch({action: 'view_room_directory'})},
+                onAddRoom: () => {dis.dispatch({action: 'view_create_room'});},
             },
         ];
         const tagSubLists = Object.keys(this.state.lists)
diff --git a/src/i18n/strings/en_EN.json b/src/i18n/strings/en_EN.json
index 12e5d91f8d..c7ce3cd19b 100644
--- a/src/i18n/strings/en_EN.json
+++ b/src/i18n/strings/en_EN.json
@@ -1559,7 +1559,9 @@
     "Community %(groupId)s not found": "Community %(groupId)s not found",
     "This homeserver does not support communities": "This homeserver does not support communities",
     "Failed to load %(groupId)s": "Failed to load %(groupId)s",
-    "Filter room names": "Filter room names",
+    "Explore": "Explore",
+    "Filter": "Filter",
+    "Filter rooms…": "Filter rooms…",
     "Failed to reject invitation": "Failed to reject invitation",
     "This room is not public. You will not be able to rejoin without an invite.": "This room is not public. You will not be able to rejoin without an invite.",
     "Are you sure you want to leave the room '%(roomName)s'?": "Are you sure you want to leave the room '%(roomName)s'?",