diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index 5996abb5d57900a85b7eff33452f7c56250eef3a..78aed09dc642fc60a5aa10c66716f38a2fc42eed 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -249,8 +249,8 @@ impl ProjectPanel {
                         ));
                         if is_root {
                             menu_entries.push(ContextMenuItem::item(
-                                "Remove Folder from Project",
-                                workspace::RemoveFolderFromProject(worktree_id),
+                                "Remove from Project",
+                                workspace::RemoveWorktreeFromProject(worktree_id),
                             ));
                         }
                     }
diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index c86dcd7830d423b440cd680e4e7fa378d5e82b73..b1a4fbd293354f7934b529ebd49b59653cfd182a 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -73,7 +73,7 @@ type FollowableItemBuilders = HashMap<
 >;
 
 #[derive(Clone, PartialEq)]
-pub struct RemoveFolderFromProject(pub WorktreeId);
+pub struct RemoveWorktreeFromProject(pub WorktreeId);
 
 actions!(
     workspace,
@@ -119,7 +119,7 @@ impl_internal_actions!(
         OpenPaths,
         ToggleFollow,
         JoinProject,
-        RemoveFolderFromProject
+        RemoveWorktreeFromProject
     ]
 );
 impl_actions!(workspace, [ToggleProjectOnline]);
@@ -1052,7 +1052,7 @@ impl Workspace {
 
     fn remove_folder_from_project(
         &mut self,
-        RemoveFolderFromProject(worktree_id): &RemoveFolderFromProject,
+        RemoveWorktreeFromProject(worktree_id): &RemoveWorktreeFromProject,
         cx: &mut ViewContext<Self>,
     ) {
         self.project