diff --git a/package.json b/package.json
index 5ada97e..36328bc 100644
--- a/package.json
+++ b/package.json
@@ -45,6 +45,10 @@
         "command": "environments.add",
         "title": "Add",
         "icon": "$(add)"
+      },
+      {
+        "command": "environments.rename",
+        "title": "Rename"
       }
     ],
     "menus": {
@@ -71,6 +75,10 @@
           "when": "viewItem == file",
           "group": "inline"
         },
+        {
+          "command": "environments.rename",
+          "when": "viewItem == file"
+        },
         {
           "command": "environments.edit",
           "when": "viewItem == keyValue-string",
@@ -147,4 +155,4 @@
     "webpack": "^5.92.1",
     "webpack-cli": "^5.1.4"
   }
-}
+}
\ No newline at end of file
diff --git a/src/extension.ts b/src/extension.ts
index 02f95ca..10a0da4 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -131,6 +131,42 @@ export function activate(context: vscode.ExtensionContext) {
       }
     }
   );
+
+  vscode.commands.registerCommand(
+    "environments.rename",
+    async (element: EnvironmentFileTreeItem) => {
+      const newFile = await vscode.window.showInputBox({
+        prompt: "Enter the new name for the environment file",
+        value: element.name,
+      });
+
+      if (!newFile) {
+        return;
+      }
+
+      try {
+        await vscode.workspace.fs.rename(
+          element.uri,
+          vscode.Uri.joinPath(
+            element.uri.with({
+              path: element.uri.path.substring(
+                0,
+                element.uri.path.lastIndexOf("/")
+              ),
+            }),
+            newFile
+          )
+        );
+
+        treeDataProvider.refresh();
+        vscode.window.showInformationMessage(`File renamed to ${newFile}`);
+      } catch (error: any) {
+        vscode.window.showErrorMessage(
+          `Failed to rename file: ${error.message}`
+        );
+      }
+    }
+  );
 }
 
 // this method is called when your extension is deactivated