diff --git a/extensions/sql-database-projects/package.json b/extensions/sql-database-projects/package.json
index 84e339dcad..651724d1dd 100644
--- a/extensions/sql-database-projects/package.json
+++ b/extensions/sql-database-projects/package.json
@@ -206,6 +206,11 @@
         "command": "sqlDatabaseProjects.addSqlCmdVariable",
         "title": "%sqlDatabaseProjects.addSqlCmdVariable%",
         "category": "%sqlDatabaseProjects.displayName%"
+      },
+      {
+        "command": "sqlDatabaseProjects.rename",
+        "title": "%sqlDatabaseProjects.rename%",
+        "category": "%sqlDatabaseProjects.displayName%"
       }
     ],
     "menus": {
@@ -333,6 +338,10 @@
         {
           "command": "sqlDatabaseProjects.addSqlCmdVariable",
           "when": "false"
+        },
+        {
+          "command": "sqlDatabaseProjects.rename",
+          "when": "false"
         }
       ],
       "view/item/context": [
@@ -426,6 +435,11 @@
           "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.folder || viewItem =~ /^databaseProject.itemType.file/ || viewItem == databaseProject.itemType.reference || viewItem == databaseProject.itemType.sqlcmdVariable",
           "group": "9_dbProjectsLast@2"
         },
+        {
+          "command": "sqlDatabaseProjects.rename",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^databaseProject.itemType.file/",
+          "group": "9_dbProjectsLast@3"
+        },
         {
           "command": "sqlDatabaseProjects.changeTargetPlatform",
           "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
diff --git a/extensions/sql-database-projects/package.nls.json b/extensions/sql-database-projects/package.nls.json
index ff6edda831..4beced28f6 100644
--- a/extensions/sql-database-projects/package.nls.json
+++ b/extensions/sql-database-projects/package.nls.json
@@ -15,6 +15,7 @@
 	"sqlDatabaseProjects.delete": "Delete",
 	"sqlDatabaseProjects.exclude": "Exclude from project",
 	"sqlDatabaseProjects.edit": "Edit",
+	"sqlDatabaseProjects.rename": "Rename",
 	"sqlDatabaseProjects.validateExternalStreamingJob": "Validate External Streaming Job",
 
 	"sqlDatabaseProjects.newScript": "Add Script",
diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 9c4c7b4e5a..fa71a509b8 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -110,6 +110,7 @@ export function currentTargetPlatform(projectName: string, currentTargetPlatform
 export function projectUpdatedToSdkStyle(projectName: string) { return localize('projectUpdatedToSdkStyle', "The project {0} has been updated to be an SDK-style project. Click 'Learn More' for details on the Microsoft.Build.Sql SDK and ways to simplify the project file.", projectName); }
 export function convertToSdkStyleConfirmation(projectName: string) { return localize('convertToSdkStyleConfirmation', "The project '{0}' will not be fully compatible with SSDT after conversion. A backup copy of the project file will be created in the project folder prior to conversion. More information is available at https://aka.ms/sqlprojsdk. Continue with converting to SDK-style project?", projectName); }
 export function updatedToSdkStyleError(projectName: string) { return localize('updatedToSdkStyleError', "Converting the project {0} to SDK-style was unsuccessful. Changes to the .sqlproj have been rolled back.", projectName); }
+export const enterNewName = localize('enterNewName', "Enter new name");
 
 // Publish dialog strings
 export const publishDialogName = localize('publishDialogName', "Publish project");
diff --git a/extensions/sql-database-projects/src/controllers/mainController.ts b/extensions/sql-database-projects/src/controllers/mainController.ts
index c68b038def..9dc7619d05 100644
--- a/extensions/sql-database-projects/src/controllers/mainController.ts
+++ b/extensions/sql-database-projects/src/controllers/mainController.ts
@@ -85,6 +85,7 @@ export default class MainController implements vscode.Disposable {
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.convertToSdkStyleProject', async (node: WorkspaceTreeItem) => { return this.projectsController.convertToSdkStyleProject(node); }));
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.delete', async (node: WorkspaceTreeItem) => { return this.projectsController.delete(node); }));
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.exclude', async (node: WorkspaceTreeItem) => { return this.projectsController.exclude(node); }));
+		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.rename', async (node: WorkspaceTreeItem) => { return this.projectsController.rename(node); }));
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.editSqlCmdVariable', async (node: WorkspaceTreeItem) => { return this.projectsController.editSqlCmdVariable(node); }));
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.addSqlCmdVariable', async (node: WorkspaceTreeItem) => { return this.projectsController.addSqlCmdVariable(node); }));
 		this.context.subscriptions.push(vscode.commands.registerCommand('sqlDatabaseProjects.changeTargetPlatform', async (node: WorkspaceTreeItem) => { return this.projectsController.changeTargetPlatform(node); }));
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 5e51a76271..bc2df8638d 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -839,6 +839,41 @@ export class ProjectsController {
 		}
 	}
 
+	public async rename(context: dataworkspace.WorkspaceTreeItem): Promise<void> {
+		const node = context.element as BaseProjectTreeItem;
+		const project = this.getProjectFromContext(node);
+		const file = this.getFileProjectEntry(project, node);
+
+		// need to use quickpick because input box isn't supported in treeviews
+		// https://github.com/microsoft/vscode/issues/117502 and https://github.com/microsoft/vscode/issues/97190
+		const newFileName = await vscode.window.showInputBox(
+			{
+				title: constants.enterNewName,
+				value: path.basename(node.friendlyName, constants.sqlFileExtension),
+				ignoreFocusOut: true,
+				validateInput: async (value) => {
+					return await this.fileAlreadyExists(value, file?.fsUri.fsPath!) ? constants.fileAlreadyExists(value) : undefined;
+				}
+			});
+
+		if (!newFileName) {
+			return;
+		}
+
+		// TODO: swap this out and hookup to "Move" file/folder api
+		// rename the file
+		const newFilePath = path.join(path.dirname(file?.fsUri.fsPath!), `${newFileName}.sql`);
+		await fs.rename(file?.fsUri.fsPath!, newFilePath);
+		await project.exclude(file!);
+		await project.addExistingItem(newFilePath);
+
+		this.refreshProjectsTree(context);
+	}
+
+	private fileAlreadyExists(newFileName: string, previousFilePath: string): Promise<boolean> {
+		return utils.exists(path.join(path.dirname(previousFilePath), `${newFileName}.sql`));
+	}
+
 	/**
 	 * Opens a quickpick to edit the value of the SQLCMD variable launched from
 	 * @param context