diff --git a/dll/win32/shell32/CShellLink.cpp b/dll/win32/shell32/CShellLink.cpp
index dfbd05792f..58fddc775c 100644
--- a/dll/win32/shell32/CShellLink.cpp
+++ b/dll/win32/shell32/CShellLink.cpp
@@ -1766,8 +1766,9 @@ HRESULT STDMETHODCALLTYPE CShellLink::GetIconLocation(UINT uFlags, PWSTR pszIcon
 
 HRESULT STDMETHODCALLTYPE CShellLink::Extract(PCWSTR pszFile, UINT nIconIndex, HICON *phiconLarge, HICON *phiconSmall, UINT nIconSize)
 {
-    UNIMPLEMENTED;
-    return E_FAIL;
+    if (!::ExtractIconExW(pszFile, nIconIndex, phiconLarge, phiconSmall, nIconSize))
+        return E_FAIL;
+    return S_OK;
 }
 
 #if 0
@@ -2895,9 +2896,14 @@ INT_PTR CALLBACK CShellLink::SH_ShellLinkDlgProc(HWND hwndDlg, UINT uMsg, WPARAM
                     if (PickIconDlg(hwndDlg, wszPath, _countof(wszPath), &IconIndex))
                     {
                         pThis->SetIconLocation(wszPath, IconIndex);
-                        ///
-                        /// FIXME redraw icon
-                        ///
+
+                        HICON hIconLarge = NULL;
+                        if (S_OK == pThis->Extract(wszPath, IconIndex, &hIconLarge, NULL, 1))
+                        {
+                            HICON hIconOld = (HICON)SendDlgItemMessageW(hwndDlg, 14000, STM_GETICON, 0, 0);
+                            SendDlgItemMessageW(hwndDlg, 14000, STM_SETICON, (WPARAM)hIconLarge, 0);
+                            DestroyIcon(hIconOld);
+                        }
                     }
                     return TRUE;
                 }
diff --git a/dll/win32/shell32/dialogs/dialogs.cpp b/dll/win32/shell32/dialogs/dialogs.cpp
index f266e79787..8d1fadde21 100644
--- a/dll/win32/shell32/dialogs/dialogs.cpp
+++ b/dll/win32/shell32/dialogs/dialogs.cpp
@@ -48,6 +48,8 @@ typedef struct
     HWND hDlgCtrl;
     WCHAR szName[MAX_PATH];
     INT Index;
+    INT nIcons;
+    HICON *phIcons;
 } PICK_ICON_CONTEXT, *PPICK_ICON_CONTEXT;
 
 BOOL CALLBACK EnumPickIconResourceProc(HMODULE hModule,
@@ -58,21 +60,17 @@ BOOL CALLBACK EnumPickIconResourceProc(HMODULE hModule,
 {
     WCHAR szName[100];
     int index;
-    HICON hIcon;
-    HWND hDlgCtrl = (HWND)lParam;
+    PPICK_ICON_CONTEXT pPickIcon = PPICK_ICON_CONTEXT(lParam);
+    HWND hDlgCtrl = pPickIcon->hDlgCtrl;
 
     if (IS_INTRESOURCE(lpszName))
         swprintf(szName, L"%u", (DWORD)lpszName);
     else
         StringCbCopyW(szName, sizeof(szName), lpszName);
 
-    hIcon = LoadIconW(hModule, lpszName);
-    if (hIcon == NULL)
-        return TRUE;
-
     index = SendMessageW(hDlgCtrl, LB_ADDSTRING, 0, (LPARAM)szName);
     if (index != LB_ERR)
-        SendMessageW(hDlgCtrl, LB_SETITEMDATA, index, (LPARAM)hIcon);
+        SendMessageW(hDlgCtrl, LB_SETITEMDATA, index, (LPARAM)pPickIcon->phIcons[index]);
 
     return TRUE;
 }
@@ -116,11 +114,13 @@ INT_PTR CALLBACK PickIconProc(HWND hwndDlg,
         SetWindowLongPtr(hwndDlg, DWLP_USER, (LONG_PTR)pIconContext);
         pIconContext->hDlgCtrl = GetDlgItem(hwndDlg, IDC_PICKICON_LIST);
         SendMessageW(pIconContext->hDlgCtrl, LB_SETCOLUMNWIDTH, 32, 0);
-        EnumResourceNamesW(pIconContext->hLibrary, RT_ICON, EnumPickIconResourceProc, (LPARAM)pIconContext->hDlgCtrl);
-        if (ExpandEnvironmentStringsW(pIconContext->szName, szText, MAX_PATH))
-            SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, szText);
-        else
-            SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, pIconContext->szName);
+
+        pIconContext->nIcons = (INT)(INT_PTR)ExtractIconExW(pIconContext->szName, -1, NULL, NULL, 0);
+        pIconContext->phIcons = new HICON[pIconContext->nIcons];
+        ExtractIconExW(pIconContext->szName, 0, pIconContext->phIcons, NULL, pIconContext->nIcons);
+        EnumResourceNamesW(pIconContext->hLibrary, RT_GROUP_ICON, EnumPickIconResourceProc, (LPARAM)pIconContext);
+
+        SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, pIconContext->szName);
 
         count = SendMessageW(pIconContext->hDlgCtrl, LB_GETCOUNT, 0, 0);
         if (count != LB_ERR)
@@ -139,10 +139,12 @@ INT_PTR CALLBACK PickIconProc(HWND hwndDlg,
             pIconContext->Index = index;
             GetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, pIconContext->szName, MAX_PATH);
             DestroyIconList(pIconContext->hDlgCtrl);
+            delete[] pIconContext->phIcons;
             EndDialog(hwndDlg, 1);
             break;
         case IDCANCEL:
             DestroyIconList(pIconContext->hDlgCtrl);
+            delete[] pIconContext->phIcons;
             EndDialog(hwndDlg, 0);
             break;
         case IDC_PICKICON_LIST:
@@ -163,24 +165,27 @@ INT_PTR CALLBACK PickIconProc(HWND hwndDlg,
             ofn.lpstrFilter = szFilter;
             if (GetOpenFileNameW(&ofn))
             {
-                HMODULE hLibrary;
-
                 if (!wcsicmp(pIconContext->szName, szText))
                     break;
 
                 DestroyIconList(pIconContext->hDlgCtrl);
+                SendMessageW(pIconContext->hDlgCtrl, LB_RESETCONTENT, 0, 0);
 
-                hLibrary = LoadLibraryExW(szText, NULL, LOAD_LIBRARY_AS_DATAFILE | LOAD_LIBRARY_AS_IMAGE_RESOURCE);
+                HMODULE hLibrary = LoadLibraryExW(szText, NULL, LOAD_LIBRARY_AS_DATAFILE);
                 if (hLibrary == NULL)
                     break;
                 FreeLibrary(pIconContext->hLibrary);
                 pIconContext->hLibrary = hLibrary;
+
                 wcscpy(pIconContext->szName, szText);
-                EnumResourceNamesW(pIconContext->hLibrary, RT_ICON, EnumPickIconResourceProc, (LPARAM)pIconContext->hDlgCtrl);
-                if (ExpandEnvironmentStringsW(pIconContext->szName, szText, MAX_PATH))
-                    SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, szText);
-                else
-                    SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, pIconContext->szName);
+
+                pIconContext->nIcons = (INT)(INT_PTR)ExtractIconExW(szText, -1, NULL, NULL, 0);
+                delete[] pIconContext->phIcons;
+                pIconContext->phIcons = new HICON[pIconContext->nIcons];
+                ExtractIconExW(szText, 0, pIconContext->phIcons, NULL, pIconContext->nIcons);
+                EnumResourceNamesW(pIconContext->hLibrary, RT_GROUP_ICON, EnumPickIconResourceProc, (LPARAM)pIconContext);
+
+                SetDlgItemTextW(hwndDlg, IDC_EDIT_PATH, szText);
 
                 SendMessageW(pIconContext->hDlgCtrl, LB_SETCURSEL, 0, 0);
             }
@@ -214,7 +219,7 @@ INT_PTR CALLBACK PickIconProc(HWND hwndDlg,
                                0, 0, 0, NULL, DI_NORMAL);
                     break;
             }
-            break;
+            return TRUE;
     }
 
     return FALSE;
@@ -229,11 +234,14 @@ BOOL WINAPI PickIconDlg(
     HMODULE hLibrary;
     int res;
     PICK_ICON_CONTEXT IconContext;
+    WCHAR szExpanded[MAX_PATH];
+
+    ExpandEnvironmentStringsW(lpstrFile, szExpanded, _countof(szExpanded));
 
-    hLibrary = LoadLibraryExW(lpstrFile, NULL, LOAD_LIBRARY_AS_DATAFILE | LOAD_LIBRARY_AS_IMAGE_RESOURCE);
+    hLibrary = LoadLibraryExW(szExpanded, NULL, LOAD_LIBRARY_AS_DATAFILE);
     IconContext.hLibrary = hLibrary;
     IconContext.Index = *lpdwIconIndex;
-    StringCchCopyNW(IconContext.szName, _countof(IconContext.szName), lpstrFile, nMaxFile);
+    StringCchCopyW(IconContext.szName, _countof(IconContext.szName), szExpanded);
 
     res = DialogBoxParamW(shell32_hInstance, MAKEINTRESOURCEW(IDD_PICK_ICON), hWndOwner, PickIconProc, (LPARAM)&IconContext);
     if (res)