diff --git a/src/dso/__init__.py b/src/dso/__init__.py
index 66feadb..cae824a 100644
--- a/src/dso/__init__.py
+++ b/src/dso/__init__.py
@@ -13,6 +13,7 @@
 from .lint import cli as lint_cli
 from .repro import cli as repro_cli
 from .watermark import cli as watermark_cli
+from .rename import cli as rename_cli
 
 click.rich_click.USE_MARKDOWN = True
 
@@ -60,3 +61,4 @@ def cli(quiet: int, verbose: bool):
 cli.add_command(lint_cli)
 cli.add_command(get_config_cli)
 cli.add_command(watermark_cli)
+cli.add_command(rename_cli)
diff --git a/src/dso/rename.py b/src/dso/rename.py
new file mode 100644
index 0000000..319c0b6
--- /dev/null
+++ b/src/dso/rename.py
@@ -0,0 +1,59 @@
+"""Renames an existing stage or folder and update files accordingly"""
+
+import sys
+from os import getcwd
+from pathlib import Path
+import rich_click as click
+from rich.prompt import Prompt
+from dso._logging import log
+from dso._util import get_project_root
+
+check_files = [
+    'params.in.yaml',
+    'dvc.yaml'
+]
+check_directories = [
+    'src',
+]
+
+def update_references(project_root: Path, old_name: str, new_name: str):
+    """Update all references to the old name in the specified project files."""
+    for file_path in project_root.rglob('*'):
+        if file_path.is_file() and (
+            any(part in file_path.parts for part in check_directories) or file_path.name in check_files
+        ):
+            try:
+                content = file_path.read_text()
+                updated_content = content.replace(old_name, new_name)
+                file_path.write_text(updated_content)
+            except Exception as e:
+                log.error(f"[red]Failed to update {file_path}: {e}")
+
+@click.argument("old_name", required=False)
+@click.argument("new_name", required=False)
+@click.command(
+    "rename",
+)
+def cli(old_name: str | None = None, new_name: str | None = None):
+    """Rename an existing stage or folder and update files accordingly."""
+
+    if old_name is None:
+        old_name = Prompt.ask(('[bold]Please enter the directory name of the stage or folder that shall be renamed'))
+    if new_name is None:
+        new_name = Prompt.ask(('[bold]Please enter the new stage or folder name'))
+    project_root = get_project_root(Path(getcwd()))
+    old_path = project_root / old_name
+    new_path = project_root / new_name
+
+    if not old_path.exists():
+        log.error(f"[red]{old_name} does not exist!")
+        sys.exit(1)
+
+    if new_path.exists():
+        log.error(f"[red]{new_name} already exists!")
+        sys.exit(1)
+
+    old_path.rename(new_path)
+    update_references(project_root, old_name, new_name)
+    log.info(f"[green]Renamed from {old_name} to {new_name} successfully.")
+