diff --git a/apps/chat/src/components/Chat/ChangePathDialog.tsx b/apps/chat/src/components/Chat/ChangePathDialog.tsx
index 5eb9a03c1..fc09444bc 100644
--- a/apps/chat/src/components/Chat/ChangePathDialog.tsx
+++ b/apps/chat/src/components/Chat/ChangePathDialog.tsx
@@ -165,9 +165,24 @@ export const ChangePathDialog = ({
         return;
       }
 
+      const trimmedName = newName.trim();
+      const newOpenedFolderIds = openedFoldersIds.map((id) => {
+        if (id === folderId || id.startsWith(`${folderId}/`)) {
+          const renamedFolderPartsCount = folderId.split('/').length;
+          const currentIdParts = id.split('/');
+          currentIdParts[renamedFolderPartsCount - 1] = trimmedName;
+
+          return constructPath(...currentIdParts);
+        }
+
+        return id;
+      });
+
+      setOpenedFoldersIds(newOpenedFolderIds);
+
       dispatch(actions.renameTemporaryFolder({ folderId, name: newName }));
     },
-    [actions, dispatch, folders, t],
+    [actions, dispatch, folders, openedFoldersIds, t],
   );
 
   const handleAddFolder = useCallback(
diff --git a/apps/chat/src/components/Common/ApplicationWizard/CodeAppView/CodeEditor.tsx b/apps/chat/src/components/Common/ApplicationWizard/CodeAppView/CodeEditor.tsx
index 8f33b5d61..254ef54e5 100644
--- a/apps/chat/src/components/Common/ApplicationWizard/CodeAppView/CodeEditor.tsx
+++ b/apps/chat/src/components/Common/ApplicationWizard/CodeAppView/CodeEditor.tsx
@@ -281,6 +281,7 @@ export const CodeEditor = ({ sourcesFolderId, setValue }: Props) => {
   const modifiedFileIds = useAppSelector(
     CodeEditorSelectors.selectModifiedFileIds,
   );
+  const newFolderId = useAppSelector(FilesSelectors.selectNewAddedFolderId);
   const filesContent = useAppSelector(CodeEditorSelectors.selectFilesContent);
 
   const [openedFoldersIds, setOpenedFoldersIds] = useState<string[]>([]);
@@ -438,6 +439,14 @@ export const CodeEditor = ({ sourcesFolderId, setValue }: Props) => {
                     loadingFolderIds={loadingFolderIds}
                     openedFoldersIds={openedFoldersIds}
                     allItems={files}
+                    onRenameFolder={(newName, folderId) =>
+                      dispatch(
+                        FilesActions.renameFolder({
+                          folderId,
+                          newName,
+                        }),
+                      )
+                    }
                     onAddFolder={(parentId) =>
                       dispatch(FilesActions.addNewFolder({ parentId }))
                     }
diff --git a/apps/chat/src/components/Common/FolderContextMenu.tsx b/apps/chat/src/components/Common/FolderContextMenu.tsx
index d70c7632a..8d3156f87 100644
--- a/apps/chat/src/components/Common/FolderContextMenu.tsx
+++ b/apps/chat/src/components/Common/FolderContextMenu.tsx
@@ -26,6 +26,7 @@ import { FolderInterface } from '@/src/types/folder';
 import { DisplayMenuItemProps } from '@/src/types/menu';
 import { Translation } from '@/src/types/translation';
 
+import { FilesSelectors } from '@/src/store/files/files.reducers';
 import { useAppSelector } from '@/src/store/hooks';
 import { SettingsSelectors } from '@/src/store/settings/settings.reducers';
 
@@ -78,6 +79,7 @@ export const FolderContextMenu = ({
   const isSharingEnabled = useAppSelector((state) =>
     SettingsSelectors.isSharingEnabled(state, featureType),
   );
+  const newFileFolderId = useAppSelector(FilesSelectors.selectNewAddedFolderId);
 
   const isExternal = isEntityIdExternal(folder);
   const isNameInvalid = isEntityNameInvalid(folder.name);
@@ -103,7 +105,12 @@ export const FolderContextMenu = ({
       },
       {
         name: t('Rename'),
-        display: (!!onRename && !isExternal) || !!folder.temporary,
+        display:
+          (!!onRename &&
+            !isExternal &&
+            (featureType !== FeatureType.File ||
+              newFileFolderId === folder.id)) ||
+          !!folder.temporary,
         dataQa: 'rename',
         Icon: IconPencilMinus,
         onClick: onRename,
@@ -205,6 +212,7 @@ export const FolderContextMenu = ({
       onUpload,
       disableAll,
       onRename,
+      newFileFolderId,
       folder,
       isNameInvalid,
       isEmpty,
diff --git a/apps/chat/src/store/conversations/conversations.reducers.ts b/apps/chat/src/store/conversations/conversations.reducers.ts
index b52db8ad0..08e2736ce 100644
--- a/apps/chat/src/store/conversations/conversations.reducers.ts
+++ b/apps/chat/src/store/conversations/conversations.reducers.ts
@@ -6,6 +6,7 @@ import { combineEntities } from '@/src/utils/app/common';
 import { constructPath } from '@/src/utils/app/file';
 import {
   addGeneratedFolderId,
+  getFolderIdFromEntityId,
   getNextDefaultName,
   isFolderEmpty,
 } from '@/src/utils/app/folders';
@@ -416,12 +417,26 @@ export const conversationsSlice = createSlice({
     ) => {
       state.newAddedFolderId = undefined;
       const name = payload.name.trim();
-
-      state.temporaryFolders = state.temporaryFolders.map((folder) =>
-        folder.id !== payload.folderId
-          ? folder
-          : { ...folder, name, id: constructPath(folder.folderId, name) },
+      const newFolderId = constructPath(
+        getFolderIdFromEntityId(payload.folderId),
+        name,
       );
+
+      state.temporaryFolders = state.temporaryFolders.map((folder) => {
+        if (folder.id === payload.folderId) {
+          return { ...folder, name, id: newFolderId };
+        }
+
+        if (folder.id.startsWith(`${payload.folderId}/`)) {
+          return {
+            ...folder,
+            id: folder.id.replace(folder.folderId, newFolderId),
+            folderId: folder.folderId.replace(folder.folderId, newFolderId),
+          };
+        }
+
+        return folder;
+      });
     },
     resetNewFolderId: (state) => {
       state.newAddedFolderId = undefined;
diff --git a/apps/chat/src/store/prompts/prompts.reducers.ts b/apps/chat/src/store/prompts/prompts.reducers.ts
index 1df2fb678..22d226db3 100644
--- a/apps/chat/src/store/prompts/prompts.reducers.ts
+++ b/apps/chat/src/store/prompts/prompts.reducers.ts
@@ -4,6 +4,7 @@ import { combineEntities } from '@/src/utils/app/common';
 import { constructPath } from '@/src/utils/app/file';
 import {
   addGeneratedFolderId,
+  getFolderIdFromEntityId,
   getNextDefaultName,
   isFolderEmpty,
 } from '@/src/utils/app/folders';
@@ -251,10 +252,26 @@ export const promptsSlice = createSlice({
     ) => {
       state.newAddedFolderId = undefined;
       const name = payload.name.trim();
-
-      state.temporaryFolders = state.temporaryFolders.map((folder) =>
-        folder.id !== payload.folderId ? folder : { ...folder, name },
+      const newFolderId = constructPath(
+        getFolderIdFromEntityId(payload.folderId),
+        name,
       );
+
+      state.temporaryFolders = state.temporaryFolders.map((folder) => {
+        if (folder.id === payload.folderId) {
+          return { ...folder, name, id: newFolderId };
+        }
+
+        if (folder.id.startsWith(`${payload.folderId}/`)) {
+          return {
+            ...folder,
+            id: folder.id.replace(folder.folderId, newFolderId),
+            folderId: folder.folderId.replace(folder.folderId, newFolderId),
+          };
+        }
+
+        return folder;
+      });
     },
     resetNewFolderId: (state) => {
       state.newAddedFolderId = undefined;