diff --git a/packages/app/src/components/dialog-edit-project.tsx b/packages/app/src/components/dialog-edit-project.tsx
new file mode 100644
index 00000000000..27ce3903cdc
--- /dev/null
+++ b/packages/app/src/components/dialog-edit-project.tsx
@@ -0,0 +1,180 @@
+import { Button } from "@opencode-ai/ui/button"
+import { useDialog } from "@opencode-ai/ui/context/dialog"
+import { Dialog } from "@opencode-ai/ui/dialog"
+import { TextField } from "@opencode-ai/ui/text-field"
+import { Icon } from "@opencode-ai/ui/icon"
+import { createMemo, createSignal, For, Show } from "solid-js"
+import { createStore } from "solid-js/store"
+import { useGlobalSDK } from "@/context/global-sdk"
+import { type LocalProject, getAvatarColors } from "@/context/layout"
+import { Avatar } from "@opencode-ai/ui/avatar"
+
+const AVATAR_COLOR_KEYS = ["pink", "mint", "orange", "purple", "cyan", "lime"] as const
+
+function getFilename(input: string) {
+  const parts = input.split("/")
+  return parts[parts.length - 1] || input
+}
+
+export function DialogEditProject(props: { project: LocalProject }) {
+  const dialog = useDialog()
+  const globalSDK = useGlobalSDK()
+
+  const folderName = createMemo(() => getFilename(props.project.worktree))
+  const defaultName = createMemo(() => props.project.name || folderName())
+
+  const [store, setStore] = createStore({
+    name: defaultName(),
+    color: props.project.icon?.color || "pink",
+    iconUrl: props.project.icon?.url || "",
+    saving: false,
+  })
+
+  const [dragOver, setDragOver] = createSignal(false)
+
+  function handleFileSelect(file: File) {
+    if (!file.type.startsWith("image/")) return
+    const reader = new FileReader()
+    reader.onload = (e) => setStore("iconUrl", e.target?.result as string)
+    reader.readAsDataURL(file)
+  }
+
+  function handleDrop(e: DragEvent) {
+    e.preventDefault()
+    setDragOver(false)
+    const file = e.dataTransfer?.files[0]
+    if (file) handleFileSelect(file)
+  }
+
+  function handleDragOver(e: DragEvent) {
+    e.preventDefault()
+    setDragOver(true)
+  }
+
+  function handleDragLeave() {
+    setDragOver(false)
+  }
+
+  function handleInputChange(e: Event) {
+    const input = e.target as HTMLInputElement
+    const file = input.files?.[0]
+    if (file) handleFileSelect(file)
+  }
+
+  function clearIcon() {
+    setStore("iconUrl", "")
+  }
+
+  async function handleSubmit(e: SubmitEvent) {
+    e.preventDefault()
+    if (!props.project.id) return
+
+    setStore("saving", true)
+    const name = store.name.trim() === folderName() ? "" : store.name.trim()
+    await globalSDK.client.project.update({
+      projectID: props.project.id,
+      name,
+      icon: { color: store.color, url: store.iconUrl },
+    })
+    setStore("saving", false)
+    dialog.close()
+  }
+
+  return (
+    <Dialog title="Edit project">
+      <form onSubmit={handleSubmit} class="flex flex-col gap-6 px-2.5 pb-3">
+        <div class="flex flex-col gap-4">
+          <TextField
+            autofocus
+            type="text"
+            label="Name"
+            placeholder={folderName()}
+            value={store.name}
+            onChange={(v) => setStore("name", v)}
+          />
+
+          <div class="flex flex-col gap-2">
+            <label class="text-12-medium text-text-weak">Icon</label>
+            <div class="flex gap-3 items-start">
+              <div class="relative">
+                <div
+                  class="size-16 rounded-lg overflow-hidden border border-dashed transition-colors cursor-pointer"
+                  classList={{
+                    "border-text-interactive-base bg-surface-info-base/20": dragOver(),
+                    "border-border-base hover:border-border-strong": !dragOver(),
+                  }}
+                  onDrop={handleDrop}
+                  onDragOver={handleDragOver}
+                  onDragLeave={handleDragLeave}
+                  onClick={() => document.getElementById("icon-upload")?.click()}
+                >
+                  <Show
+                    when={store.iconUrl}
+                    fallback={
+                      <div class="size-full flex items-center justify-center">
+                        <Avatar
+                          fallback={store.name || defaultName()}
+                          {...getAvatarColors(store.color)}
+                          class="size-full"
+                        />
+                      </div>
+                    }
+                  >
+                    <img src={store.iconUrl} alt="Project icon" class="size-full object-cover" />
+                  </Show>
+                </div>
+                <Show when={store.iconUrl}>
+                  <button
+                    type="button"
+                    class="absolute -top-1.5 -right-1.5 size-5 rounded-full bg-surface-raised-base border border-border-base flex items-center justify-center hover:bg-surface-raised-base-hover"
+                    onClick={clearIcon}
+                  >
+                    <Icon name="close" class="size-3 text-icon-base" />
+                  </button>
+                </Show>
+              </div>
+              <input id="icon-upload" type="file" accept="image/*" class="hidden" onChange={handleInputChange} />
+              <div class="flex flex-col gap-1.5 text-12-regular text-text-weak">
+                <span>Click or drag an image</span>
+                <span>Recommended: 128x128px</span>
+              </div>
+            </div>
+          </div>
+
+          <Show when={!store.iconUrl}>
+            <div class="flex flex-col gap-2">
+              <label class="text-12-medium text-text-weak">Color</label>
+              <div class="flex gap-2">
+                <For each={AVATAR_COLOR_KEYS}>
+                  {(color) => (
+                    <button
+                      type="button"
+                      class="relative size-8 rounded-md transition-all"
+                      classList={{
+                        "ring-2 ring-offset-2 ring-offset-surface-base ring-text-interactive-base":
+                          store.color === color,
+                      }}
+                      style={{ background: getAvatarColors(color).background }}
+                      onClick={() => setStore("color", color)}
+                    >
+                      <Avatar fallback={store.name || defaultName()} {...getAvatarColors(color)} class="size-full" />
+                    </button>
+                  )}
+                </For>
+              </div>
+            </div>
+          </Show>
+        </div>
+
+        <div class="flex justify-end gap-2">
+          <Button type="button" variant="ghost" size="large" onClick={() => dialog.close()}>
+            Cancel
+          </Button>
+          <Button type="submit" variant="primary" size="large" disabled={store.saving}>
+            {store.saving ? "Saving..." : "Save"}
+          </Button>
+        </div>
+      </form>
+    </Dialog>
+  )
+}
diff --git a/packages/app/src/context/layout.tsx b/packages/app/src/context/layout.tsx
index c6ba5fef5a1..4ccab98e3ff 100644
--- a/packages/app/src/context/layout.tsx
+++ b/packages/app/src/context/layout.tsx
@@ -70,6 +70,7 @@ export const { use: useLayout, provider: LayoutProvider } = createSimpleContext(
         {
           ...project,
           ...(metadata ?? {}),
+          icon: { url: metadata?.icon?.url, color: metadata?.icon?.color },
         },
       ]
     }
diff --git a/packages/app/src/pages/layout.tsx b/packages/app/src/pages/layout.tsx
index 2bc0c313149..0b917894809 100644
--- a/packages/app/src/pages/layout.tsx
+++ b/packages/app/src/pages/layout.tsx
@@ -49,6 +49,7 @@ import { Header } from "@/components/header"
 import { useDialog } from "@opencode-ai/ui/context/dialog"
 import { useTheme, type ColorScheme } from "@opencode-ai/ui/theme"
 import { DialogSelectProvider } from "@/components/dialog-select-provider"
+import { DialogEditProject } from "@/components/dialog-edit-project"
 import { useCommand, type CommandOption } from "@/context/command"
 import { ConstrainDragXAxis } from "@/utils/solid-dnd"
 
@@ -522,7 +523,7 @@ export default function Layout(props: ParentProps) {
     const notification = useNotification()
     const notifications = createMemo(() => notification.project.unseen(props.project.worktree))
     const hasError = createMemo(() => notifications().some((n) => n.type === "error"))
-    const name = createMemo(() => getFilename(props.project.worktree))
+    const name = createMemo(() => props.project.name || getFilename(props.project.worktree))
     const mask = "radial-gradient(circle 5px at calc(100% - 2px) 2px, transparent 5px, black 5.5px)"
     const opencode = "4b0ea68d7af9a6031a7ffda7ad66e0cb83315750"
 
@@ -558,7 +559,7 @@ export default function Layout(props: ParentProps) {
   }
 
   const ProjectVisual = (props: { project: LocalProject; class?: string }): JSX.Element => {
-    const name = createMemo(() => getFilename(props.project.worktree))
+    const name = createMemo(() => props.project.name || getFilename(props.project.worktree))
     const current = createMemo(() => base64Decode(params.dir ?? ""))
     return (
       <Switch>
@@ -701,7 +702,7 @@ export default function Layout(props: ParentProps) {
     const sortable = createSortable(props.project.worktree)
     const showExpanded = createMemo(() => props.mobile || layout.sidebar.opened())
     const slug = createMemo(() => base64Encode(props.project.worktree))
-    const name = createMemo(() => getFilename(props.project.worktree))
+    const name = createMemo(() => props.project.name || getFilename(props.project.worktree))
     const [store, setProjectStore] = globalSync.child(props.project.worktree)
     const sessions = createMemo(() => store.session.toSorted(sortSessions))
     const rootSessions = createMemo(() => sessions().filter((s) => !s.parentID))
@@ -747,6 +748,11 @@ export default function Layout(props: ParentProps) {
                     <DropdownMenu.Trigger as={IconButton} icon="dot-grid" variant="ghost" />
                     <DropdownMenu.Portal>
                       <DropdownMenu.Content>
+                        <DropdownMenu.Item
+                          onSelect={() => dialog.show(() => <DialogEditProject project={props.project} />)}
+                        >
+                          <DropdownMenu.ItemLabel>Edit project</DropdownMenu.ItemLabel>
+                        </DropdownMenu.Item>
                         <DropdownMenu.Item onSelect={() => closeProject(props.project.worktree)}>
                           <DropdownMenu.ItemLabel>Close project</DropdownMenu.ItemLabel>
                         </DropdownMenu.Item>