diff --git a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
index a90e2bd2..6fd86342 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/Collection/CollectionItem/index.js
@@ -306,28 +306,26 @@ const CollectionItem = ({ item, collection, searchText }) => {
               >
                 Rename
               </div>
+              <div
+                className="dropdown-item"
+                onClick={(e) => {
+                  dropdownTippyRef.current.hide();
+                  setCloneItemModalOpen(true);
+                }}
+              >
+                Clone
+              </div>
               {!isFolder && (
-                <>
-                  <div
-                    className="dropdown-item"
-                    onClick={(e) => {
-                      dropdownTippyRef.current.hide();
-                      setCloneItemModalOpen(true);
-                    }}
-                  >
-                    Clone
-                  </div>
-                  <div
-                    className="dropdown-item"
-                    onClick={(e) => {
-                      dropdownTippyRef.current.hide();
-                      handleClick(null);
-                      handleRun();
-                    }}
-                  >
-                    Run
-                  </div>
-                </>
+                <div
+                  className="dropdown-item"
+                  onClick={(e) => {
+                    dropdownTippyRef.current.hide();
+                    handleClick(null);
+                    handleRun();
+                  }}
+                >
+                  Run
+                </div>
               )}
               {!isFolder && item.type === 'http-request' && (
                 <div
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
index 2ef10795..bebabbb3 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/actions.js
@@ -319,7 +319,18 @@ export const cloneItem = (newName, itemUid, collectionUid) => (dispatch, getStat
     }
 
     if (isItemAFolder(item)) {
-      throw new Error('Cloning folders is not supported yet');
+      const folderWithSameNameExists = find(
+        collection.items,
+        (i) => i.type === 'folder' && trim(i.name) === trim(newName)
+      );
+
+      if (folderWithSameNameExists) {
+        return reject(new Error('Duplicate folder names under same parent folder are not allowed'));
+      }
+
+      const collectionPath = `${collection.pathname}${PATH_SEPARATOR}${newName}`;
+      ipcRenderer.invoke('renderer:clone-folder', newName, item, collectionPath).then(resolve).catch(reject);
+      return;
     }
 
     const parentItem = findParentItemInCollection(collectionCopy, itemUid);
diff --git a/packages/bruno-electron/src/ipc/collection.js b/packages/bruno-electron/src/ipc/collection.js
index be6afbea..f3eb7845 100644
--- a/packages/bruno-electron/src/ipc/collection.js
+++ b/packages/bruno-electron/src/ipc/collection.js
@@ -12,7 +12,8 @@ const {
   browseDirectory,
   createDirectory,
   searchForBruFiles,
-  sanitizeDirectoryName
+  sanitizeDirectoryName,
+  parseCollectionItems
 } = require('../utils/filesystem');
 const { stringifyJson } = require('../utils/common');
 const { openCollectionDialog } = require('../app/collections');
@@ -335,25 +336,6 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
         throw new Error(`collection: ${collectionPath} already exists`);
       }
 
-      // Recursive function to parse the collection items and create files/folders
-      const parseCollectionItems = (items = [], currentPath) => {
-        items.forEach((item) => {
-          if (['http-request', 'graphql-request'].includes(item.type)) {
-            const content = jsonToBru(item);
-            const filePath = path.join(currentPath, `${item.name}.bru`);
-            fs.writeFileSync(filePath, content);
-          }
-          if (item.type === 'folder') {
-            const folderPath = path.join(currentPath, item.name);
-            fs.mkdirSync(folderPath);
-
-            if (item.items && item.items.length) {
-              parseCollectionItems(item.items, folderPath);
-            }
-          }
-        });
-      };
-
       const parseEnvironments = (environments = [], collectionPath) => {
         const envDirPath = path.join(collectionPath, 'environments');
         if (!fs.existsSync(envDirPath)) {
@@ -391,6 +373,21 @@ const registerRendererEventHandlers = (mainWindow, watcher, lastOpenedCollection
     }
   });
 
+  ipcMain.handle('renderer:clone-folder', async (event, itemFolder, collectionPath) => {
+    try {
+      if (fs.existsSync(collectionPath)) {
+        throw new Error(`folder: ${collectionPath} already exists`);
+      }
+
+      await createDirectory(collectionPath);
+
+      // create folder and files based on another folder
+      await parseCollectionItems(itemFolder.items, collectionPath);
+    } catch (error) {
+      return Promise.reject(error);
+    }
+  });
+
   ipcMain.handle('renderer:resequence-items', async (event, itemsToResequence) => {
     try {
       for (let item of itemsToResequence) {
diff --git a/packages/bruno-electron/src/utils/filesystem.js b/packages/bruno-electron/src/utils/filesystem.js
index 4f3ea980..ab3a8d88 100644
--- a/packages/bruno-electron/src/utils/filesystem.js
+++ b/packages/bruno-electron/src/utils/filesystem.js
@@ -134,6 +134,25 @@ const sanitizeDirectoryName = (name) => {
   return name.replace(/[<>:"/\\|?*\x00-\x1F]+/g, '-');
 };
 
+// Recursive function to parse the folder and create files/folders
+const parseCollectionItems = (items = [], currentPath) => {
+  items.forEach((item) => {
+    if (['http-request', 'graphql-request'].includes(item.type)) {
+      const content = jsonToBru(item);
+      const filePath = path.join(currentPath, `${item.name}.bru`);
+      fs.writeFileSync(filePath, content);
+    }
+    if (item.type === 'folder') {
+      const folderPath = path.join(currentPath, item.name);
+      fs.mkdirSync(folderPath);
+
+      if (item.items && item.items.length) {
+        parseCollectionItems(item.items, folderPath);
+      }
+    }
+  });
+};
+
 module.exports = {
   isValidPathname,
   exists,
@@ -150,5 +169,6 @@ module.exports = {
   chooseFileToSave,
   searchForFiles,
   searchForBruFiles,
-  sanitizeDirectoryName
+  sanitizeDirectoryName,
+  parseCollectionItems
 };