diff --git a/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandler.kt b/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandler.kt
index 25fee69adc6..1cba809683d 100644
--- a/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandler.kt
+++ b/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandler.kt
@@ -128,13 +128,12 @@ class WorkspaceServiceHandler(
             val validRenames = events
                 .filter { it.propertyName == VirtualFile.PROP_NAME }
                 .mapNotNull { event ->
-                    val file = event.file.takeIf { shouldHandleFile(it) } ?: return@mapNotNull null
-                    if (event.newValue !is String) return@mapNotNull null
+                    val renamedFile = event.file.takeIf { shouldHandleFile(it) } ?: return@mapNotNull null
+                    val oldFileName = event.oldValue as? String ?: return@mapNotNull null
+                    val parentFile = renamedFile.parent ?: return@mapNotNull null
 
-                    // Construct old and new URIs
-                    val parentFile = file.parent ?: return@mapNotNull null
-                    val oldUri = toUriString(parentFile)
-                    val newUri = toUriString(file)
+                    val oldUri = toUriString(parentFile)?.let { parentUri -> "$parentUri/$oldFileName" }
+                    val newUri = toUriString(renamedFile)
 
                     FileRename().apply {
                         this.oldUri = oldUri
diff --git a/plugins/amazonq/shared/jetbrains-community/tst/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandlerTest.kt b/plugins/amazonq/shared/jetbrains-community/tst/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandlerTest.kt
index d12527ff790..0435a5c167d 100644
--- a/plugins/amazonq/shared/jetbrains-community/tst/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandlerTest.kt
+++ b/plugins/amazonq/shared/jetbrains-community/tst/software/aws/toolkits/jetbrains/services/amazonq/lsp/workspace/WorkspaceServiceHandlerTest.kt
@@ -393,8 +393,8 @@ class WorkspaceServiceHandlerTest {
         val paramsSlot = slot<RenameFilesParams>()
         verify { mockWorkspaceService.didRenameFiles(capture(paramsSlot)) }
         with(paramsSlot.captured.files[0]) {
-            assertEquals(normalizeFileUri("file:///test/$oldName"), oldUri)
-            assertEquals(normalizeFileUri("file:///test/$newName"), newUri)
+            assertEquals(normalizeFileUri("file:///testDir/$oldName"), oldUri)
+            assertEquals(normalizeFileUri("file:///testDir/$newName"), newUri)
         }
     }
 
@@ -430,8 +430,8 @@ class WorkspaceServiceHandlerTest {
         val paramsSlot = slot<RenameFilesParams>()
         verify { mockWorkspaceService.didRenameFiles(capture(paramsSlot)) }
         with(paramsSlot.captured.files[0]) {
-            assertEquals(normalizeFileUri("file:///test/oldDir"), oldUri)
-            assertEquals(normalizeFileUri("file:///test/newDir"), newUri)
+            assertEquals(normalizeFileUri("file:///testDir/oldDir"), oldUri)
+            assertEquals(normalizeFileUri("file:///testDir/newDir"), newUri)
         }
     }
 
@@ -648,10 +648,10 @@ class WorkspaceServiceHandlerTest {
         newName: String,
         isDirectory: Boolean = false,
     ): VFilePropertyChangeEvent {
-        val oldUri = URI("file:///test/$oldName")
-        val newUri = URI("file:///test/$newName")
+        val parent = createMockVirtualFile(URI("file:///testDir/"), "testDir", true)
+        val newUri = URI("file:///testDir/$newName")
         val file = createMockVirtualFile(newUri, newName, isDirectory)
-        every { file.parent } returns createMockVirtualFile(oldUri, oldName, isDirectory)
+        every { file.parent } returns parent
 
         return mockk<VFilePropertyChangeEvent>().apply {
             every { propertyName } returns VirtualFile.PROP_NAME