diff --git a/packages/zowe-explorer/CHANGELOG.md b/packages/zowe-explorer/CHANGELOG.md
index 2fef2ad9d..28e25a8be 100644
--- a/packages/zowe-explorer/CHANGELOG.md
+++ b/packages/zowe-explorer/CHANGELOG.md
@@ -28,6 +28,7 @@ All notable changes to the "vscode-extension-for-zowe" extension will be documen
 - Fixed issue where users were not prompted to enter credentials if a 401 error was encountered when opening files, data sets or spools in the editor. [#3197](https://github.com/zowe/zowe-explorer-vscode/issues/3197)
 - Fixed issue where profile credential updates or token changes were not reflected within the filesystem. [#3289](https://github.com/zowe/zowe-explorer-vscode/issues/3289)
 - Fixed issue to update the success message when changing authentication from token to basic through the 'Change Authentication' option.
+- Fixed an issue where fetching a USS file using `UssFSProvider.stat()` with a `fetch=true` query would cause Zowe Explorer to get stuck in an infinite loop.
 
 ## `3.0.2`
 
diff --git a/packages/zowe-explorer/src/trees/uss/UssFSProvider.ts b/packages/zowe-explorer/src/trees/uss/UssFSProvider.ts
index fdcf27024..e1a917d71 100644
--- a/packages/zowe-explorer/src/trees/uss/UssFSProvider.ts
+++ b/packages/zowe-explorer/src/trees/uss/UssFSProvider.ts
@@ -149,7 +149,7 @@ export class UssFSProvider extends BaseProvider implements vscode.FileSystemProv
             response = await ZoweExplorerApiRegister.getUssApi(profile).fileList(ussPath);
             // If request was successful, create directories for the path if it doesn't exist
             if (response.success && !keepRelative && response.apiResponse.items?.[0]?.mode?.startsWith("d") && !this.exists(uri)) {
-                await vscode.workspace.fs.createDirectory(uri);
+                await vscode.workspace.fs.createDirectory(uri.with({ query: "" }));
             }
         } catch (err) {
             if (err instanceof Error) {
@@ -187,7 +187,7 @@ export class UssFSProvider extends BaseProvider implements vscode.FileSystemProv
             let parentDir = this._lookupParentDirectory(uri, true);
             if (parentDir == null) {
                 const parentPath = path.posix.join(uri.path, "..");
-                const parentUri = uri.with({ path: parentPath });
+                const parentUri = uri.with({ path: parentPath, query: "" });
                 await vscode.workspace.fs.createDirectory(parentUri);
                 parentDir = this._lookupParentDirectory(uri, false);
                 parentDir.metadata = this._getInfoFromUri(parentUri);