diff --git a/src/components/Providers/SystemIOProviderDesktop.tsx b/src/components/Providers/SystemIOProviderDesktop.tsx
index fa7b11696..45c041158 100644
--- a/src/components/Providers/SystemIOProviderDesktop.tsx
+++ b/src/components/Providers/SystemIOProviderDesktop.tsx
@@ -13,7 +13,7 @@ export const useProjectDirectoryPath = () =>
 export function SystemIOMachineLogicListener() {
   const requestedProjectName = useRequestedProjectName()
   const requestedFileName = useRequestedFileName()
-  console.log(requestedFileName,'okay')
+  console.log(requestedFileName, 'okay')
   const projectDirectoryPath = useProjectDirectoryPath()
   const navigate = useNavigate()
 
@@ -42,10 +42,7 @@ export function SystemIOMachineLogicListener() {
       projectDirectoryPath,
       requestedFileName.project
     )
-    const filePath = window.electron.join(
-      projectPath,
-      requestedFileName.file
-    )
+    const filePath = window.electron.join(projectPath, requestedFileName.file)
     const requestedPath = `${PATHS.FILE}/${encodeURIComponent(filePath)}`
     navigate(requestedPath)
   }, [requestedFileName])
diff --git a/src/machines/systemIO/systemIOMachine.ts b/src/machines/systemIO/systemIOMachine.ts
index 9bb5ddcc0..471bc40b5 100644
--- a/src/machines/systemIO/systemIOMachine.ts
+++ b/src/machines/systemIO/systemIOMachine.ts
@@ -36,10 +36,18 @@ export const systemIOMachine = setup({
       | {
           type: SystemIOMachineEvents.navigateToProject
           data: { requestedProjectName: string }
-      }
+        }
       | {
           type: SystemIOMachineEvents.navigateToFile
-        data: { requestedProjectName: string, requestedFileName: string }
+          data: { requestedProjectName: string; requestedFileName: string }
+        }
+      | {
+          type: SystemIOMachineEvents.createProject
+          data: { requestedProjectName: string }
+      }
+      | {
+          type: SystemIOMachineEvents.renameProject
+        data: { requestedProjectName: string, projectName: string }
         }
   },
   actions: {
@@ -67,7 +75,10 @@ export const systemIOMachine = setup({
     [SystemIOMachineActions.setRequestedFileName]: assign({
       requestedFileName: ({ event }) => {
         assertEvent(event, SystemIOMachineEvents.navigateToFile)
-        return { project: event.data.requestedProjectName, file: event.data.requestedFileName }
+        return {
+          project: event.data.requestedProjectName,
+          file: event.data.requestedFileName,
+        }
       },
     }),
   },
@@ -77,6 +88,13 @@ export const systemIOMachine = setup({
         return []
       }
     ),
+    [SystemIOMachineActors.createProject]: fromPromise(
+      async ({
+        input: context,
+      }: {
+        input: { context: SystemIOContext; requestProjectName: string }
+      }) => {}
+    ),
   },
 }).createMachine({
   initial: SystemIOMachineStates.idle,
@@ -89,14 +107,17 @@ export const systemIOMachine = setup({
     projectDirectoryPath: NO_PROJECT_DIRECTORY,
     hasListedProjects: false,
     requestedProjectName: { name: NO_PROJECT_DIRECTORY },
-    requestedFileName: { name: NO_PROJECT_DIRECTORY },
+    requestedFileName: {
+      project: NO_PROJECT_DIRECTORY,
+      file: NO_PROJECT_DIRECTORY,
+    },
   }),
   states: {
     [SystemIOMachineStates.idle]: {
       on: {
         // on can be an action
         [SystemIOMachineEvents.readFoldersFromProjectDirectory]:
-        SystemIOMachineStates.readingFolders,
+          SystemIOMachineStates.readingFolders,
         [SystemIOMachineEvents.setProjectDirectoryPath]: {
           target: SystemIOMachineStates.readingFolders,
           actions: [SystemIOMachineActions.setProjectDirectoryPath],
@@ -107,6 +128,12 @@ export const systemIOMachine = setup({
         [SystemIOMachineEvents.navigateToFile]: {
           actions: [SystemIOMachineActions.setRequestedFileName],
         },
+        [SystemIOMachineEvents.createProject]: {
+          target: SystemIOMachineStates.creatingProject,
+        },
+        [SystemIOMachineEvents.renameProject]: {
+          target: SystemIOMachineStates.renamingProject,
+        },
       },
     },
     [SystemIOMachineStates.readingFolders]: {
@@ -125,6 +152,45 @@ export const systemIOMachine = setup({
         },
       },
     },
+    [SystemIOMachineStates.creatingProject]: {
+      invoke: {
+        id: SystemIOMachineActors.createProject,
+        src: SystemIOMachineActors.createProject,
+        input: ({ context, event }) => {
+          assertEvent(event, SystemIOMachineEvents.createProject)
+          return {
+            context,
+            requestedProjectName: event.data.requestedProjectName,
+          }
+        },
+        onDone: {
+          target: SystemIOMachineStates.readingFolders,
+        },
+        onError: {
+          target: SystemIOMachineStates.idle,
+        },
+      },
+    },
+    [SystemIOMachineStates.renamingProject]: {
+      invoke: {
+        id: SystemIOMachineActors.renameProject,
+        src: SystemIOMachineActors.renameProject,
+        input: ({ context, event }) => {
+          assertEvent(event, SystemIOMachineEvents.renameProject)
+          return {
+            context,
+            requestedProjectName: event.data.requestedProjectName,
+            projectName: event.data.projectName
+          }
+        },
+        onDone: {
+          target: SystemIOMachineStates.readingFolders,
+        },
+        onError: {
+          target: SystemIOMachineStates.idle,
+        },
+      },
+    },
   },
 })
 
diff --git a/src/machines/systemIO/systemIOMachineDesktop.ts b/src/machines/systemIO/systemIOMachineDesktop.ts
index 2913b6402..61abcd95a 100644
--- a/src/machines/systemIO/systemIOMachineDesktop.ts
+++ b/src/machines/systemIO/systemIOMachineDesktop.ts
@@ -1,4 +1,10 @@
-import { getProjectInfo, mkdirOrNOOP } from '@src/lib/desktop'
+import {
+  createNewProjectDirectory,
+  getProjectInfo,
+  mkdirOrNOOP,
+  renameProjectDirectory
+} from '@src/lib/desktop'
+import { getUniqueProjectName, doesProjectNameNeedInterpolated, getNextProjectIndex, interpolateProjectNameWithIndex } from '@src/lib/desktopFS'
 import type { Project } from '@src/lib/project'
 import { systemIOMachine } from '@src/machines/systemIO/systemIOMachine'
 import type { SystemIOContext } from '@src/machines/systemIO/utils'
@@ -53,5 +59,46 @@ export const systemIOMachineDesktop = systemIOMachine.provide({
         return projects
       }
     ),
+    [SystemIOMachineActors.createProject]: fromPromise(
+      async ({
+        input,
+      }: {
+        input: { context: SystemIOContext; requestedProjectName: string }
+      }) => {
+        const folders = input.context.folders
+        const requestedProjectName = input.requestedProjectName
+        const uniqueName = getUniqueProjectName(requestedProjectName, folders)
+        await createNewProjectDirectory(uniqueName)
+      }
+    ),
+    [SystemIOMachineActors.renameProject]: fromPromise(
+      async ({
+        input,
+      }: {
+        input: { context: SystemIOContext; requestedProjectName: string, projectName: string }
+      }) => {
+        const folders = input.context.folders
+        const requestedProjectName = input.requestedProjectName
+        const projectName = input.projectName
+        let newProjectName : string = requestedProjectName
+          if (doesProjectNameNeedInterpolated(requestedProjectName)) {
+            const nextIndex = getNextProjectIndex(requestedProjectName, folders)
+            newProjectName = interpolateProjectNameWithIndex(requestedProjectName, nextIndex)
+          }
+
+          // Toast an error if the project name is taken
+          if (folders.find((p) => p.name === name)) {
+            return Promise.reject(
+              new Error(`Project with name "${name}" already exists`)
+            )
+          }
+
+          await renameProjectDirectory(
+            window.electron.path.join(input.context.projectDirectoryPath, projectName),
+            newProjectName
+          )
+        // DONE
+      }
+    ),
   },
 })
diff --git a/src/machines/systemIO/utils.ts b/src/machines/systemIO/utils.ts
index 4310e8742..d771c46f5 100644
--- a/src/machines/systemIO/utils.ts
+++ b/src/machines/systemIO/utils.ts
@@ -3,12 +3,16 @@ import type { Project } from '@src/lib/project'
 export enum SystemIOMachineActors {
   readFoldersFromProjectDirectory = 'read folders from project directory',
   setProjectDirectoryPath = 'set project directory path',
+  createProject = 'create project',
+  renameProject = 'rename project'
 }
 
 export enum SystemIOMachineStates {
   idle = 'idle',
   readingFolders = 'readingFolders',
   settingProjectDirectoryPath = 'settingProjectDirectoryPath',
+  creatingProject = 'creatingProject',
+  renamingProject = 'renamingProject'
 }
 
 const donePrefix = 'xstate.done.actor.'
@@ -19,7 +23,9 @@ export enum SystemIOMachineEvents {
     'read folders from project directory',
   setProjectDirectoryPath = 'set project directory path',
   navigateToProject = 'navigate to project',
-  navigateToFile = 'navigate to file'
+  navigateToFile = 'navigate to file',
+  createProject = 'create project',
+  renameProject = 'rename project'
 }
 
 export enum SystemIOMachineActions {
@@ -43,5 +49,5 @@ export type SystemIOContext = {
   // this is required to prevent chokidar from spamming invalid events during initialization.
   hasListedProjects: boolean
   requestedProjectName: { name: string }
-  requestedFileName: {project: string, file: string}
+  requestedFileName: { project: string; file: string }
 }