diff --git a/src/components/Explorer/ProjectExplorer.tsx b/src/components/Explorer/ProjectExplorer.tsx
index 13655bb2a..6856ece15 100644
--- a/src/components/Explorer/ProjectExplorer.tsx
+++ b/src/components/Explorer/ProjectExplorer.tsx
@@ -169,37 +169,54 @@ export const ProjectExplorer = ({
             isRenamingRef.current = true
           },
           rowRenameEnd: (event) => {
+            // TODO: Implement renameFolder and renameFile to navigate
             setIsRenaming(false)
             isRenamingRef.current = false
-            const requestedFolderName = String(event?.target?.value || '')
-            if (!requestedFolderName) {
+            const requestedName = String(event?.target?.value || '')
+            if (!requestedName) {
               // user pressed esc
               return
             }
-            const folderName = row.name
-            if (requestedFolderName !== folderName) {
+            const name = row.name
+            // Rename a folder
+            if (row.isFolder) {
+              if (requestedName !== name) {
+                systemIOActor.send({
+                  type: SystemIOMachineEvents.renameFolder,
+                  data: {
+                    requestedFolderName: requestedName,
+                    folderName: name,
+                    absolutePathToParentDirectory: joinOSPaths(
+                      projectDirectoryPath,
+                      child.parentPath
+                    ),
+                  },
+                })
+                // TODO: Gotcha... Set new string open even if it fails?
+                if (openedRowsRef.current[child.key]) {
+                  // If the file tree had the folder opened make the new one open.
+                  const newOpenedRows = { ...openedRowsRef.current }
+                  const key = constructPath({
+                    parentPath: child.parentPath,
+                    name: requestedName,
+                  })
+                  newOpenedRows[key] = true
+                  setOpenedRows(newOpenedRows)
+                }
+              }
+            } else {
+              // rename a file
               systemIOActor.send({
-                type: SystemIOMachineEvents.renameFolder,
+                type: SystemIOMachineEvents.renameFile,
                 data: {
-                  requestedFolderName,
-                  folderName,
+                  requestedFileNameWithExtension: requestedName,
+                  fileNameWithExtension: name,
                   absolutePathToParentDirectory: joinOSPaths(
                     projectDirectoryPath,
                     child.parentPath
                   ),
                 },
               })
-              // TODO: Gotcha... Set new string open even if it fails?
-              if (openedRowsRef.current[child.key]) {
-                // If the file tree had the folder opened make the new one open.
-                const newOpenedRows = { ...openedRowsRef.current }
-                const key = constructPath({
-                  parentPath: child.parentPath,
-                  name: requestedFolderName,
-                })
-                newOpenedRows[key] = true
-                setOpenedRows(newOpenedRows)
-              }
             }
           },
         }
@@ -237,8 +254,10 @@ export const ProjectExplorer = ({
     }
 
     const keyDownHandler = (event) => {
-
-      if (activeIndexRef.current === NOTHING_IS_SELECTED || isRenamingRef.current) {
+      if (
+        activeIndexRef.current === NOTHING_IS_SELECTED ||
+        isRenamingRef.current
+      ) {
         // NO OP you are not focused in this DOM element
         return
       }
diff --git a/src/machines/systemIO/systemIOMachine.ts b/src/machines/systemIO/systemIOMachine.ts
index 0dbc15a52..86f72d2d7 100644
--- a/src/machines/systemIO/systemIOMachine.ts
+++ b/src/machines/systemIO/systemIOMachine.ts
@@ -148,6 +148,14 @@ export const systemIOMachine = setup({
             folderName: string
             absolutePathToParentDirectory: string
           }
+      }
+      | {
+          type: SystemIOMachineEvents.renameFile
+          data: {
+            requestedFileNameWithExtension: string
+            fileNameWithExtension: string
+            absolutePathToParentDirectory: string
+          }
         },
   },
   actions: {
@@ -393,6 +401,21 @@ export const systemIOMachine = setup({
         return { message: '', folderName: '', requestedFolderName: '' }
       }
     ),
+    [SystemIOMachineActors.renameFile]: fromPromise(
+      async ({
+        input,
+      }: {
+        input: {
+          context: SystemIOContext
+          rootContext: AppMachineContext
+          requestedFileNameWithExtension: string
+          fileNameWithExtension: string
+          absolutePathToParentDirectory: string
+        }
+      }) => {
+        return { message: '', fileNameWithExtension: '', requestedFileNameWithExtension: '' }
+      }
+    ),
   },
 }).createMachine({
   initial: SystemIOMachineStates.idle,
@@ -474,6 +497,9 @@ export const systemIOMachine = setup({
         [SystemIOMachineEvents.renameFolder]: {
           target: SystemIOMachineStates.renamingFolder,
         },
+        [SystemIOMachineEvents.renameFile]: {
+          target: SystemIOMachineStates.renamingFile,
+        },
       },
     },
     [SystemIOMachineStates.readingFolders]: {
@@ -802,12 +828,38 @@ export const systemIOMachine = setup({
             requestedFolderName: event.data.requestedFolderName,
             folderName: event.data.folderName,
             absolutePathToParentDirectory:
-              event.data.absolutePathToParentDirectory,
+            event.data.absolutePathToParentDirectory,
             rootContext: self.system.get('root').getSnapshot().context,
           }
         },
         onDone: {
           target: SystemIOMachineStates.readingFolders,
+          actions: [SystemIOMachineActions.toastSuccess],
+        },
+        onError: {
+          target: SystemIOMachineStates.idle,
+          actions: [SystemIOMachineActions.toastError],
+        },
+      },
+    },
+    [SystemIOMachineStates.renamingFile]: {
+      invoke: {
+        id: SystemIOMachineActors.renameFile,
+        src: SystemIOMachineActors.renameFile,
+        input: ({ context, event, self }) => {
+          assertEvent(event, SystemIOMachineEvents.renameFile)
+          return {
+            context,
+            requestedFileNameWithExtension: event.data.requestedFileNameWithExtension,
+            fileNameWithExtension: event.data.fileNameWithExtension,
+            absolutePathToParentDirectory:
+            event.data.absolutePathToParentDirectory,
+            rootContext: self.system.get('root').getSnapshot().context,
+          }
+        },
+        onDone: {
+          target: SystemIOMachineStates.readingFolders,
+          actions: [SystemIOMachineActions.toastSuccess],
         },
         onError: {
           target: SystemIOMachineStates.idle,
diff --git a/src/machines/systemIO/systemIOMachineDesktop.ts b/src/machines/systemIO/systemIOMachineDesktop.ts
index c620ba407..b44a4c629 100644
--- a/src/machines/systemIO/systemIOMachineDesktop.ts
+++ b/src/machines/systemIO/systemIOMachineDesktop.ts
@@ -453,5 +453,61 @@ export const systemIOMachineDesktop = systemIOMachine.provide({
         }
       }
     ),
+    [SystemIOMachineActors.renameFile]: fromPromise(
+      async ({
+        input,
+      }: {
+        input: {
+          context: SystemIOContext
+          rootContext: AppMachineContext
+          requestedFileNameWithExtension: string
+          fileNameWithExtension: string
+          absolutePathToParentDirectory: string
+        }
+      }) => {
+        const {
+          fileNameWithExtension,
+          requestedFileNameWithExtension,
+          absolutePathToParentDirectory,
+        } = input
+
+        const oldPath = window.electron.path.join(
+          absolutePathToParentDirectory,
+          fileNameWithExtension
+        )
+        const newPath = window.electron.path.join(
+          absolutePathToParentDirectory,
+          requestedFileNameWithExtension
+        )
+
+        // no-op
+        if (oldPath === newPath) {
+          return {
+            message: `Old is the same as new.`,
+            fileNameWithExtension,
+            requestedFileNameWithExtension,
+          }
+        }
+
+        // if there are any siblings with the same name, report error.
+        const entries = await window.electron.readdir(
+          window.electron.path.dirname(newPath)
+        )
+
+        for (let entry of entries) {
+          if (entry === requestedFileNameWithExtension) {
+            return Promise.reject(new Error('Filename already exists.'))
+          }
+        }
+
+        window.electron.rename(oldPath, newPath)
+
+        return {
+          message: `Successfully renamed "${fileNameWithExtension}" to "${requestedFileNameWithExtension}"`,
+          fileNameWithExtension,
+          requestedFileNameWithExtension
+        }
+      }
+    ),
   },
 })
diff --git a/src/machines/systemIO/utils.ts b/src/machines/systemIO/utils.ts
index f9ae4a7dc..8a6d12c5f 100644
--- a/src/machines/systemIO/utils.ts
+++ b/src/machines/systemIO/utils.ts
@@ -17,6 +17,7 @@ export enum SystemIOMachineActors {
   bulkCreateKCLFilesAndNavigateToProject = 'bulk create kcl files and navigate to project',
   bulkCreateKCLFilesAndNavigateToFile = 'bulk create kcl files and navigate to file',
   renameFolder = 'renameFolder',
+  renameFile = 'renameFile'
 }
 
 export enum SystemIOMachineStates {
@@ -35,6 +36,7 @@ export enum SystemIOMachineStates {
   bulkCreatingKCLFilesAndNavigateToProject = 'bulkCreatingKCLFilesAndNavigateToProject',
   bulkCreatingKCLFilesAndNavigateToFile = 'bulkCreatingKCLFilesAndNavigateToFile',
   renamingFolder = 'renamingFolder',
+  renamingFile = 'renamingFile'
 }
 
 const donePrefix = 'xstate.done.actor.'
@@ -64,6 +66,7 @@ export enum SystemIOMachineEvents {
   done_bulkCreateKCLFilesAndNavigateToFile = donePrefix +
     'bulk create kcl files and navigate to file',
   renameFolder = 'rename folder',
+  renameFile = 'rename file'
 }
 
 export enum SystemIOMachineActions {