diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/RenameCollection/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/RenameCollection/index.js
new file mode 100644
index 00000000..aa752125
--- /dev/null
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/RenameCollection/index.js
@@ -0,0 +1,64 @@
+import React, { useRef, useEffect } from 'react';
+import { useFormik } from 'formik';
+import * as Yup from 'yup';
+import Modal from 'components/Modal';
+import { useDispatch } from 'react-redux';
+import { renameCollection } from 'providers/ReduxStore/slices/collections/actions';
+
+const RenameCollection = ({collection, onClose}) => {
+  const dispatch = useDispatch();
+  const inputRef = useRef();
+  const formik = useFormik({
+		enableReinitialize: true,
+    initialValues: {
+      name: collection.name
+    },
+    validationSchema: Yup.object({
+      name: Yup.string()
+        .min(1, 'must be atleast 1 characters')
+        .max(50, 'must be 50 characters or less')
+        .required('name is required')
+    }),
+    onSubmit: (values) => {
+      dispatch(renameCollection(values.name, collection.uid));
+      onClose();
+    }
+  });
+
+  useEffect(() => {
+    if(inputRef && inputRef.current) {
+      inputRef.current.focus();
+    }
+  }, [inputRef]);
+
+  const onSubmit = () => formik.handleSubmit();
+
+  return (
+    <Modal
+      size="sm"
+      title="Rename Collection"
+      confirmText='Rename'
+      handleConfirm={onSubmit}
+      handleCancel={onClose}
+    >
+      <form className="bruno-form" onSubmit={formik.handleSubmit}>
+        <div>
+          <label htmlFor="name" className="block font-semibold">Name</label>
+          <input
+            id="collection-name" type="text" name="name"
+            ref={inputRef}
+            className="block textbox mt-2 w-full"
+            autoComplete="off" autoCorrect="off" autoCapitalize="off" spellCheck="false"
+            onChange={formik.handleChange}
+            value={formik.values.name || ''}
+          />
+          {formik.touched.name && formik.errors.name ? (
+            <div className="text-red-500">{formik.errors.name}</div>
+          ) : null}
+        </div>
+      </form>
+    </Modal>
+  );
+};
+
+export default RenameCollection;
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
index b549b086..7f617355 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/index.js
@@ -11,11 +11,13 @@ import CollectionItem from './CollectionItem';
 import { doesCollectionHaveItemsMatchingSearchText } from 'utils/collections/search';
 import { isItemAFolder, isItemARequest } from 'utils/collections';
 
+import RenameCollection from './RenameCollection';
 import StyledWrapper from './StyledWrapper';
 
 const Collection = ({collection, searchText}) => {
   const [showNewFolderModal, setShowNewFolderModal] = useState(false);
   const [showNewRequestModal, setShowNewRequestModal] = useState(false);
+  const [showRenameCollectionModal, setShowRenameCollectionModal] = useState(false);
   const [collectionIsCollapsed, setCollectionIsCollapsed] = useState(collection.collapsed);
   const dispatch = useDispatch();
 
@@ -58,6 +60,7 @@ const Collection = ({collection, searchText}) => {
     <StyledWrapper className="flex flex-col">
       {showNewRequestModal && <NewRequest collection={collection} onClose={() => setShowNewRequestModal(false)}/>}
       {showNewFolderModal && <NewFolder collection={collection} onClose={() => setShowNewFolderModal(false)}/>}
+      {showRenameCollectionModal && <RenameCollection collection={collection} onClose={() => setShowRenameCollectionModal(false)}/>}
       <div className="flex py-1 collection-name items-center">
         <div className="flex flex-grow items-center" onClick={handleClick}>
           <IconChevronRight size={16} strokeWidth={2} className={iconClassName} style={{width:16, color: 'rgb(160 160 160)'}}/>
@@ -71,16 +74,23 @@ const Collection = ({collection, searchText}) => {
           >
             <div className="dropdown-item" onClick={(e) => {
               menuDropdownTippyRef.current.hide();
-              setShowNewRequestModal(true)
+              setShowNewRequestModal(true);
             }}>
               New Request
             </div>
             <div className="dropdown-item" onClick={(e) => {
               menuDropdownTippyRef.current.hide();
-              setShowNewFolderModal(true)
+              setShowNewFolderModal(true);
             }}>
               New Folder
             </div>
+            <div className="dropdown-item" onClick={(e) => {
+              dispatch(removeCollection(collection.uid));
+              menuDropdownTippyRef.current.hide();
+              setShowRenameCollectionModal(true);
+            }}>
+              Rename
+            </div>
             <div className="dropdown-item" onClick={(e) => {
               dispatch(removeCollection(collection.uid));
               menuDropdownTippyRef.current.hide();
diff --git a/packages/bruno-app/src/pageComponents/Collections/CollectionItem/index.js b/packages/bruno-app/src/pageComponents/Collections/CollectionItem/index.js
new file mode 100644
index 00000000..906a4e2f
--- /dev/null
+++ b/packages/bruno-app/src/pageComponents/Collections/CollectionItem/index.js
@@ -0,0 +1,20 @@
+import React, { useState } from 'react';
+import { IconEdit, IconTrash } from "@tabler/icons";
+import RenameCollection from 'components/Sidebar/Collections/Collection/RenameCollection';
+
+export default function CollectionItem({collection}) {
+  const [showRenameCollectionModal, setShowRenameCollectionModal] = useState(false);
+
+  return (
+    <>
+      {showRenameCollectionModal && <RenameCollection collection={collection} onClose={() => setShowRenameCollectionModal(false)}/>}
+      <div className="flex justify-between items-baseline mb-2 collection-list-item">
+        <li style={{listStyle: 'none'}} className="collection-name">{collection.name}</li>
+        <div className="flex gap-x-4" >
+          <IconEdit className="cursor-pointer" size={20} strokeWidth={1.5} onClick={() => setShowRenameCollectionModal(true)}/>
+          <IconTrash className="cursor-pointer" size={20} strokeWidth={1.5}/>
+        </div>
+    </div>
+    </>
+  );
+};
diff --git a/packages/bruno-app/src/pageComponents/Collections/index.js b/packages/bruno-app/src/pageComponents/Collections/index.js
index a3ca1e19..84f2558a 100644
--- a/packages/bruno-app/src/pageComponents/Collections/index.js
+++ b/packages/bruno-app/src/pageComponents/Collections/index.js
@@ -1,9 +1,8 @@
 import React from 'react';
-import { IconEdit, IconTrash } from "@tabler/icons";
 import { useSelector } from 'react-redux';
+import CollectionItem from './CollectionItem';
 import StyledWrapper from './StyledWrapper';
 
-
 export default function Collections() {
   const collections = useSelector((state) => state.collections.collections);
 
@@ -12,15 +11,9 @@ export default function Collections() {
       <h4 className="heading">Collections</h4>
 
       <div className="collection-list mt-6">
-        {collections && collections.length ? collections.map((collection) =>
-          <div className="flex justify-between items-baseline mb-2 collection-list-item" key={collection.uid} >
-            <li style={{listStyle: 'none'}} className="collection-name">{collection.name}</li>
-            <div className="flex gap-x-4" >
-              <IconEdit className="cursor-pointer" size={20} strokeWidth={1.5}/>
-              <IconTrash className="cursor-pointer" size={20} strokeWidth={1.5}/>
-            </div>
-          </div>
-        ): null}
+        {collections && collections.length ? collections.map((collection) => {
+          return <CollectionItem key={collection.uid} collection={collection}/>;
+        }): null}
       </div>
     </StyledWrapper>
   );
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
new file mode 100644
index 00000000..6c1f88e3
--- /dev/null
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
@@ -0,0 +1,33 @@
+import cloneDeep from 'lodash/cloneDeep';
+import {
+  findCollectionByUid,
+  findItemInCollection,
+  transformCollectionToSaveToIdb
+} from 'utils/collections';
+import { saveCollectionToIdb } from 'utils/idb';
+
+import {
+  _renameCollection
+} from './index';
+
+export const renameCollection = (newName, collectionUid) => (dispatch, getState) => {
+  const state = getState();
+  const collection = findCollectionByUid(state.collections.collections, collectionUid);
+
+  if(collection) {
+    const collectionCopy = cloneDeep(collection);
+    collectionCopy.name = newName;
+    const collectionToSave = transformCollectionToSaveToIdb(collectionCopy, {
+      ignoreDraft: true
+    });
+
+    saveCollectionToIdb(window.__idb, collectionToSave)
+      .then(() => {
+        dispatch(_renameCollection({
+          newName: newName,
+          collectionUid: collectionUid
+        }));
+      })
+      .catch((err) => console.log(err));
+  }
+};
\ No newline at end of file
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
similarity index 99%
rename from packages/bruno-app/src/providers/ReduxStore/slices/collections.js
rename to packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
index fa52ad19..f8db4bd5 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
@@ -28,8 +28,6 @@ const initialState = {
   collections: []
 };
 
-const PATH_SEPARATOR = path.sep;
-
 export const collectionsSlice = createSlice({
   name: 'collections',
   initialState,
@@ -42,6 +40,13 @@ export const collectionsSlice = createSlice({
     _createCollection: (state, action) => {
       state.collections.push(action.payload);
     },
+    _renameCollection: (state, action) => {
+      const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
+
+      if(collection) {
+        collection.name = action.payload.newName;
+      }
+    },
     _newItem: (state, action) => {
       const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
 
@@ -521,6 +526,7 @@ export const collectionsSlice = createSlice({
 
 export const {
   _createCollection,
+  _renameCollection,
   _loadCollections,
   _newItem,
   _deleteItem,
diff --git a/packages/bruno-app/src/utils/collections/index.js b/packages/bruno-app/src/utils/collections/index.js
index c17d8b6f..e6843221 100644
--- a/packages/bruno-app/src/utils/collections/index.js
+++ b/packages/bruno-app/src/utils/collections/index.js
@@ -162,7 +162,10 @@ export const transformCollectionToSaveToIdb = (collection, options = {}) => {
       di.name = si.name;
 
       // if items is draft, then take data from draft to save
-      if(!options.ignoreDraft && si.draft) {
+      // The condition "!options.ignoreDraft" may appear confusing
+      // When saving a collection, this option allows the caller to specify to ignore any draft changes while still saving rest of the collection.
+      // This is useful for performing rename request/collections while still leaving changes in draft not making its way into the indexeddb
+      if(si.draft && !options.ignoreDraft) {
         if(si.draft.request) {
           di.request = {
             url: si.draft.request.url,