diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 6dcc0f2eefbd3b5b4b5d6faf5b838f9ec39add6c..9df60acb3226318b2aee860b43dbd4d9b5178323 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -1905,7 +1905,7 @@ impl Editor {
                         }
                     }
 
-                    project::Event::EntryRenamed(transaction) => {
+                    project::Event::EntryRenamed(transaction, project_path, abs_path) => {
                         let Some(workspace) = editor.workspace() else {
                             return;
                         };
@@ -1913,7 +1913,23 @@ impl Editor {
                         else {
                             return;
                         };
+
                         if active_editor.entity_id() == cx.entity_id() {
+                            let entity_id = cx.entity_id();
+                            workspace.update(cx, |this, cx| {
+                                this.panes_mut()
+                                    .iter_mut()
+                                    .filter(|pane| pane.entity_id() != entity_id)
+                                    .for_each(|p| {
+                                        p.update(cx, |pane, _| {
+                                            pane.nav_history_mut().rename_item(
+                                                entity_id,
+                                                project_path.clone(),
+                                                abs_path.clone().into(),
+                                            );
+                                        })
+                                    });
+                            });
                             let edited_buffers_already_open = {
                                 let other_editors: Vec<Entity<Editor>> = workspace
                                     .read(cx)
@@ -1936,7 +1952,6 @@ impl Editor {
                                     })
                                 })
                             };
-
                             if !edited_buffers_already_open {
                                 let workspace = workspace.downgrade();
                                 let transaction = transaction.clone();
diff --git a/crates/project/src/project.rs b/crates/project/src/project.rs
index 489b72e9c91839a4a2adeaf486343e6e8765418a..38a75726859c3c4e7d5b7835365e6faac8634e3e 100644
--- a/crates/project/src/project.rs
+++ b/crates/project/src/project.rs
@@ -344,7 +344,7 @@ pub enum Event {
     RevealInProjectPanel(ProjectEntryId),
     SnippetEdit(BufferId, Vec<(lsp::Range, Snippet)>),
     ExpandedAllForEntry(WorktreeId, ProjectEntryId),
-    EntryRenamed(ProjectTransaction),
+    EntryRenamed(ProjectTransaction, ProjectPath, PathBuf),
     AgentLocationChanged,
 }
 
@@ -2248,7 +2248,11 @@ impl Project {
 
             project
                 .update(cx, |_, cx| {
-                    cx.emit(Event::EntryRenamed(transaction));
+                    cx.emit(Event::EntryRenamed(
+                        transaction,
+                        new_path.clone(),
+                        new_abs_path.clone(),
+                    ));
                 })
                 .ok();
 
diff --git a/crates/project_panel/src/project_panel_tests.rs b/crates/project_panel/src/project_panel_tests.rs
index b6cd1da132ad5c1633001bd53fe365f24870cd7c..2ff389a6abd8298156b93671e105667c03a4889d 100644
--- a/crates/project_panel/src/project_panel_tests.rs
+++ b/crates/project_panel/src/project_panel_tests.rs
@@ -2199,6 +2199,396 @@ async fn test_create_duplicate_items(cx: &mut gpui::TestAppContext) {
     );
 }
 
+// NOTE: This test is skipped on Windows, because on Windows,
+// when it triggers the lsp store it converts `/src/test/first copy.txt` into an uri
+// but it fails with message `"/src\\test\\first copy.txt" is not parseable as an URI`
+#[gpui::test]
+#[cfg_attr(target_os = "windows", ignore)]
+async fn test_create_duplicate_items_and_check_history(cx: &mut gpui::TestAppContext) {
+    init_test_with_editor(cx);
+
+    let fs = FakeFs::new(cx.executor());
+    fs.insert_tree(
+        "/src",
+        json!({
+            "test": {
+                "first.txt": "// First Txt file",
+                "second.txt": "// Second Txt file",
+                "third.txt": "// Third Txt file",
+            }
+        }),
+    )
+    .await;
+
+    let project = Project::test(fs.clone(), ["/src".as_ref()], cx).await;
+    let workspace = cx.add_window(|window, cx| Workspace::test_new(project.clone(), window, cx));
+    let cx = &mut VisualTestContext::from_window(*workspace, cx);
+    let panel = workspace
+        .update(cx, |workspace, window, cx| {
+            let panel = ProjectPanel::new(workspace, window, cx);
+            workspace.add_panel(panel.clone(), window, cx);
+            panel
+        })
+        .unwrap();
+    cx.run_until_parked();
+
+    select_path(&panel, "src", cx);
+    panel.update_in(cx, |panel, window, cx| panel.confirm(&Confirm, window, cx));
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src  <== selected",
+            "    > test"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| {
+        panel.new_directory(&NewDirectory, window, cx)
+    });
+    cx.run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(panel.filename_editor.read(cx).is_focused(window));
+    });
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src",
+            "    > [EDITOR: '']  <== selected",
+            "    > test"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| {
+        panel
+            .filename_editor
+            .update(cx, |editor, cx| editor.set_text("test", window, cx));
+        assert!(
+            panel.confirm_edit(true, window, cx).is_none(),
+            "Should not allow to confirm on conflicting new directory name"
+        );
+    });
+    cx.executor().run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(
+            panel.state.edit_state.is_some(),
+            "Edit state should not be None after conflicting new directory name"
+        );
+        panel.cancel(&menu::Cancel, window, cx);
+        panel.update_visible_entries(None, false, false, window, cx);
+    });
+    cx.run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src  <== selected",
+            "    > test"
+        ],
+        "File list should be unchanged after failed folder create confirmation"
+    );
+
+    select_path(&panel, "src/test", cx);
+    panel.update_in(cx, |panel, window, cx| panel.confirm(&Confirm, window, cx));
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src",
+            "    > test  <== selected"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| panel.new_file(&NewFile, window, cx));
+    cx.run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(panel.filename_editor.read(cx).is_focused(window));
+    });
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          [EDITOR: '']  <== selected",
+            "          first.txt",
+            "          second.txt",
+            "          third.txt"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| {
+        panel
+            .filename_editor
+            .update(cx, |editor, cx| editor.set_text("first.txt", window, cx));
+        assert!(
+            panel.confirm_edit(true, window, cx).is_none(),
+            "Should not allow to confirm on conflicting new file name"
+        );
+    });
+    cx.executor().run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(
+            panel.state.edit_state.is_some(),
+            "Edit state should not be None after conflicting new file name"
+        );
+        panel.cancel(&menu::Cancel, window, cx);
+        panel.update_visible_entries(None, false, false, window, cx);
+    });
+    cx.run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test  <== selected",
+            "          first.txt",
+            "          second.txt",
+            "          third.txt"
+        ],
+        "File list should be unchanged after failed file create confirmation"
+    );
+
+    select_path(&panel, "src/test/first.txt", cx);
+    panel.update_in(cx, |panel, window, cx| panel.confirm(&Confirm, window, cx));
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          first.txt  <== selected",
+            "          second.txt",
+            "          third.txt"
+        ],
+    );
+    panel.update_in(cx, |panel, window, cx| panel.rename(&Rename, window, cx));
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(panel.filename_editor.read(cx).is_focused(window));
+    });
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          [EDITOR: 'first.txt']  <== selected",
+            "          second.txt",
+            "          third.txt"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| {
+        panel
+            .filename_editor
+            .update(cx, |editor, cx| editor.set_text("second.txt", window, cx));
+        assert!(
+            panel.confirm_edit(true, window, cx).is_none(),
+            "Should not allow to confirm on conflicting file rename"
+        )
+    });
+    cx.executor().run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(
+            panel.state.edit_state.is_some(),
+            "Edit state should not be None after conflicting file rename"
+        );
+        panel.cancel(&menu::Cancel, window, cx);
+    });
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          first.txt  <== selected",
+            "          second.txt",
+            "          third.txt"
+        ],
+        "File list should be unchanged after failed rename confirmation"
+    );
+    panel.update_in(cx, |panel, window, cx| panel.open(&Open, window, cx));
+    cx.executor().run_until_parked();
+    // Try to duplicate and check history
+    panel.update_in(cx, |panel, window, cx| {
+        panel.duplicate(&Duplicate, window, cx)
+    });
+    cx.executor().run_until_parked();
+
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          first.txt",
+            "          [EDITOR: 'first copy.txt']  <== selected  <== marked",
+            "          second.txt",
+            "          third.txt"
+        ],
+    );
+
+    let confirm = panel.update_in(cx, |panel, window, cx| {
+        panel
+            .filename_editor
+            .update(cx, |editor, cx| editor.set_text("fourth.txt", window, cx));
+        panel.confirm_edit(true, window, cx).unwrap()
+    });
+    confirm.await.unwrap();
+    cx.executor().run_until_parked();
+
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          first.txt",
+            "          fourth.txt  <== selected",
+            "          second.txt",
+            "          third.txt"
+        ],
+        "File list should be different after rename confirmation"
+    );
+
+    panel.update_in(cx, |panel, window, cx| {
+        panel.update_visible_entries(None, false, false, window, cx);
+    });
+    cx.executor().run_until_parked();
+
+    select_path(&panel, "src/test/first.txt", cx);
+    panel.update_in(cx, |panel, window, cx| panel.open(&Open, window, cx));
+    cx.executor().run_until_parked();
+
+    workspace
+        .read_with(cx, |this, cx| {
+            assert!(
+                this.recent_navigation_history_iter(cx)
+                    .any(|(project_path, abs_path)| {
+                        project_path.path == Arc::from(rel_path("test/fourth.txt"))
+                            && abs_path == Some(PathBuf::from(path!("/src/test/fourth.txt")))
+                    })
+            );
+        })
+        .unwrap();
+}
+
+// NOTE: This test is skipped on Windows, because on Windows,
+// when it triggers the lsp store it converts `/src/test/first.txt` into an uri
+// but it fails with message `"/src\\test\\first.txt" is not parseable as an URI`
+#[gpui::test]
+#[cfg_attr(target_os = "windows", ignore)]
+async fn test_rename_item_and_check_history(cx: &mut gpui::TestAppContext) {
+    init_test_with_editor(cx);
+
+    let fs = FakeFs::new(cx.executor());
+    fs.insert_tree(
+        "/src",
+        json!({
+            "test": {
+                "first.txt": "// First Txt file",
+                "second.txt": "// Second Txt file",
+                "third.txt": "// Third Txt file",
+            }
+        }),
+    )
+    .await;
+
+    let project = Project::test(fs.clone(), ["/src".as_ref()], cx).await;
+    let workspace = cx.add_window(|window, cx| Workspace::test_new(project.clone(), window, cx));
+    let cx = &mut VisualTestContext::from_window(*workspace, cx);
+    let panel = workspace
+        .update(cx, |workspace, window, cx| {
+            let panel = ProjectPanel::new(workspace, window, cx);
+            workspace.add_panel(panel.clone(), window, cx);
+            panel
+        })
+        .unwrap();
+    cx.run_until_parked();
+
+    select_path(&panel, "src", cx);
+    panel.update_in(cx, |panel, window, cx| panel.confirm(&Confirm, window, cx));
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src  <== selected",
+            "    > test"
+        ]
+    );
+
+    select_path(&panel, "src/test", cx);
+    panel.update_in(cx, |panel, window, cx| panel.confirm(&Confirm, window, cx));
+    cx.executor().run_until_parked();
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            //
+            "v src",
+            "    > test  <== selected"
+        ]
+    );
+    panel.update_in(cx, |panel, window, cx| panel.new_file(&NewFile, window, cx));
+    cx.run_until_parked();
+    panel.update_in(cx, |panel, window, cx| {
+        assert!(panel.filename_editor.read(cx).is_focused(window));
+    });
+
+    select_path(&panel, "src/test/first.txt", cx);
+    panel.update_in(cx, |panel, window, cx| panel.open(&Open, window, cx));
+    cx.executor().run_until_parked();
+
+    panel.update_in(cx, |panel, window, cx| panel.rename(&Rename, window, cx));
+    cx.executor().run_until_parked();
+
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          [EDITOR: 'first.txt']  <== selected  <== marked",
+            "          second.txt",
+            "          third.txt"
+        ],
+    );
+
+    let confirm = panel.update_in(cx, |panel, window, cx| {
+        panel
+            .filename_editor
+            .update(cx, |editor, cx| editor.set_text("fourth.txt", window, cx));
+        panel.confirm_edit(true, window, cx).unwrap()
+    });
+    confirm.await.unwrap();
+    cx.executor().run_until_parked();
+
+    assert_eq!(
+        visible_entries_as_strings(&panel, 0..10, cx),
+        &[
+            "v src",
+            "    v test",
+            "          fourth.txt  <== selected",
+            "          second.txt",
+            "          third.txt"
+        ],
+        "File list should be different after rename confirmation"
+    );
+
+    panel.update_in(cx, |panel, window, cx| {
+        panel.update_visible_entries(None, false, false, window, cx);
+    });
+    cx.executor().run_until_parked();
+
+    select_path(&panel, "src/test/second.txt", cx);
+    panel.update_in(cx, |panel, window, cx| panel.open(&Open, window, cx));
+    cx.executor().run_until_parked();
+
+    workspace
+        .read_with(cx, |this, cx| {
+            assert!(
+                this.recent_navigation_history_iter(cx)
+                    .any(|(project_path, abs_path)| {
+                        project_path.path == Arc::from(rel_path("test/fourth.txt"))
+                            && abs_path == Some(PathBuf::from(path!("/src/test/fourth.txt")))
+                    })
+            );
+        })
+        .unwrap();
+}
+
 #[gpui::test]
 async fn test_select_git_entry(cx: &mut gpui::TestAppContext) {
     init_test_with_editor(cx);
diff --git a/crates/workspace/src/pane.rs b/crates/workspace/src/pane.rs
index c2c79b6a5fc3cc337f6dd7273d529fd40f04c8a1..c72183240061018bd979b2eb34c28c517da620f5 100644
--- a/crates/workspace/src/pane.rs
+++ b/crates/workspace/src/pane.rs
@@ -1123,7 +1123,6 @@ impl Pane {
                 false
             }
         });
-
         if let Some(existing_item_index) = existing_item_index {
             // If the item already exists, move it to the desired destination and activate it
 
@@ -4132,6 +4131,20 @@ impl NavHistory {
             .retain(|entry| entry.item.id() != item_id);
     }
 
+    pub fn rename_item(
+        &mut self,
+        item_id: EntityId,
+        project_path: ProjectPath,
+        abs_path: Option<PathBuf>,
+    ) {
+        let mut state = self.0.lock();
+        let path_for_item = state.paths_by_item.get_mut(&item_id);
+        if let Some(path_for_item) = path_for_item {
+            path_for_item.0 = project_path;
+            path_for_item.1 = abs_path;
+        }
+    }
+
     pub fn path_for_item(&self, item_id: EntityId) -> Option<(ProjectPath, Option<PathBuf>)> {
         self.0.lock().paths_by_item.get(&item_id).cloned()
     }
diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index 84b86a92ec5bdae9e6184037c8bf25488b308ff0..2f8095deab4717f95180439f57c295c7d8a7ed14 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -4325,6 +4325,10 @@ impl Workspace {
         cx.emit(Event::PaneRemoved);
     }
 
+    pub fn panes_mut(&mut self) -> &mut [Entity<Pane>] {
+        &mut self.panes
+    }
+
     pub fn panes(&self) -> &[Entity<Pane>] {
         &self.panes
     }