diff --git a/apps/chat/src/components/Chatbar/ChatFolders.tsx b/apps/chat/src/components/Chatbar/ChatFolders.tsx
index f4a4764f7d..0f434f3bf9 100644
--- a/apps/chat/src/components/Chatbar/ChatFolders.tsx
+++ b/apps/chat/src/components/Chatbar/ChatFolders.tsx
@@ -60,6 +60,10 @@ const ChatFolderTemplate = ({
       searchTerm,
     ),
   );
+  const allConversations = useAppSelector(
+    ConversationsSelectors.selectConversations,
+  );
+  const allFolders = useAppSelector(ConversationsSelectors.selectFolders);
   const conversationFolders = useAppSelector((state) =>
     ConversationsSelectors.selectFilteredFolders(
       state,
@@ -116,7 +120,6 @@ const ChatFolderTemplate = ({
     },
     [dispatch],
   );
-
   const onDropBetweenFolders = useCallback(
     (folder: FolderInterface, parentFolderId: string | undefined) => {
       dispatch(
@@ -152,7 +155,9 @@ const ChatFolderTemplate = ({
         currentFolder={folder}
         itemComponent={ConversationComponent}
         allItems={conversations}
+        allItemsWithoutFilters={allConversations}
         allFolders={conversationFolders}
+        allFoldersWithoutFilters={allFolders}
         highlightedFolders={highlightedFolders}
         openedFoldersIds={openedFoldersIds}
         handleDrop={handleDrop}
diff --git a/apps/chat/src/components/Chatbar/Conversation.tsx b/apps/chat/src/components/Chatbar/Conversation.tsx
index 68d288256d..11ec918ed0 100644
--- a/apps/chat/src/components/Chatbar/Conversation.tsx
+++ b/apps/chat/src/components/Chatbar/Conversation.tsx
@@ -11,8 +11,14 @@ import {
   useState,
 } from 'react';
 
+import { useTranslation } from 'next-i18next';
+
 import classNames from 'classnames';
 
+import {
+  isEntityNameOnSameLevelUnique,
+  prepareEntityName,
+} from '@/src/utils/app/common';
 import { notAllowedSymbolsRegex } from '@/src/utils/app/file';
 import { hasParentWithFloatingOverlay } from '@/src/utils/app/modals';
 import { MoveType, getDragImage } from '@/src/utils/app/move';
@@ -22,6 +28,7 @@ import { isEntityOrParentsExternal } from '@/src/utils/app/share';
 import { Conversation, ConversationInfo } from '@/src/types/chat';
 import { FeatureType, isNotLoaded } from '@/src/types/common';
 import { SharingType } from '@/src/types/share';
+import { Translation } from '@/src/types/translation';
 
 import {
   ConversationsActions,
@@ -96,6 +103,8 @@ interface Props {
 }
 
 export const ConversationComponent = ({ item: conversation, level }: Props) => {
+  const { t } = useTranslation(Translation.Chat);
+
   const dispatch = useAppDispatch();
 
   const modelsMap = useAppSelector(ModelsSelectors.selectModelsMap);
@@ -141,6 +150,9 @@ export const ConversationComponent = ({ item: conversation, level }: Props) => {
   const newFolderName = useAppSelector((state) =>
     ConversationsSelectors.selectNewFolderName(state, conversation.folderId),
   );
+  const allConversations = useAppSelector(
+    ConversationsSelectors.selectConversations,
+  );
 
   const { refs, context } = useFloating({
     open: isContextMenu,
@@ -166,22 +178,46 @@ export const ConversationComponent = ({ item: conversation, level }: Props) => {
 
   const handleRename = useCallback(
     (conversation: ConversationInfo) => {
-      if (renameValue.trim().length > 0) {
+      const newName = prepareEntityName(renameValue);
+      setRenameValue(newName);
+
+      if (
+        !isEntityNameOnSameLevelUnique(newName, conversation, allConversations)
+      ) {
+        dispatch(
+          UIActions.showToast({
+            message: t(
+              'Conversation with name "{{newName}}" already exists in this folder.',
+              {
+                ns: 'chat',
+                newName,
+              },
+            ),
+            type: 'error',
+          }),
+        );
+
+        return;
+      }
+
+      if (newName.length > 0) {
         dispatch(
           ConversationsActions.updateConversation({
             id: conversation.id,
             values: {
-              name: renameValue.trim(),
+              name: newName,
               isNameChanged: true,
             },
           }),
         );
+
         setRenameValue('');
-        setIsRenaming(false);
         setIsContextMenu(false);
       }
+
+      setIsRenaming(false);
     },
-    [dispatch, renameValue],
+    [allConversations, dispatch, renameValue, t],
   );
 
   const handleEnterDown = useCallback(
@@ -217,11 +253,10 @@ export const ConversationComponent = ({ item: conversation, level }: Props) => {
             conversationIds: [conversation.id],
           }),
         );
+        setIsDeleting(false);
       } else if (isRenaming) {
         handleRename(conversation);
       }
-      setIsDeleting(false);
-      setIsRenaming(false);
     },
     [conversation, dispatch, handleRename, isDeleting, isRenaming],
   );
diff --git a/apps/chat/src/components/Folder/Folder.tsx b/apps/chat/src/components/Folder/Folder.tsx
index bfef62fb97..4f24bc4ead 100644
--- a/apps/chat/src/components/Folder/Folder.tsx
+++ b/apps/chat/src/components/Folder/Folder.tsx
@@ -19,6 +19,10 @@ import { useTranslation } from 'next-i18next';
 
 import classNames from 'classnames';
 
+import {
+  isEntityNameOnSameLevelUnique,
+  prepareEntityName,
+} from '@/src/utils/app/common';
 import { notAllowedSymbolsRegex } from '@/src/utils/app/file';
 import {
   compareEntitiesByName,
@@ -28,6 +32,7 @@ import {
 import { hasParentWithFloatingOverlay } from '@/src/utils/app/modals';
 import {
   getDragImage,
+  getEntityMoveType,
   getFolderMoveType,
   hasDragEventAnyData,
 } from '@/src/utils/app/move';
@@ -90,6 +95,8 @@ export interface FolderProps<T, P = unknown> {
   maxDepth?: number;
   highlightTemporaryFolders?: boolean;
   withBorderHighlight?: boolean;
+  allFoldersWithoutFilters?: FolderInterface[];
+  allItemsWithoutFilters?: T[];
 }
 
 const Folder = <T extends ConversationInfo | PromptInfo | DialFile>({
@@ -97,7 +104,9 @@ const Folder = <T extends ConversationInfo | PromptInfo | DialFile>({
   searchTerm,
   itemComponent,
   allItems,
+  allItemsWithoutFilters = [],
   allFolders,
+  allFoldersWithoutFilters = [],
   highlightedFolders,
   openedFoldersIds,
   level = 0,
@@ -229,11 +238,45 @@ const Folder = <T extends ConversationInfo | PromptInfo | DialFile>({
     if (!onRenameFolder) {
       return;
     }
-    renameValue.trim() && onRenameFolder(renameValue, currentFolder.id);
+
+    const newName = prepareEntityName(renameValue);
+    setRenameValue(newName);
+
+    if (
+      !isEntityNameOnSameLevelUnique(
+        newName,
+        currentFolder,
+        allFoldersWithoutFilters,
+      )
+    ) {
+      dispatch(
+        UIActions.showToast({
+          message: t(
+            'Folder with name "{{folderName}}" already exists in this folder.',
+            {
+              ns: 'folder',
+              folderName: newName,
+            },
+          ),
+          type: 'error',
+        }),
+      );
+
+      return;
+    }
+
+    newName && onRenameFolder(newName, currentFolder.id);
     setRenameValue('');
     setIsRenaming(false);
     setIsContextMenu(false);
-  }, [onRenameFolder, renameValue, currentFolder]);
+  }, [
+    onRenameFolder,
+    renameValue,
+    currentFolder,
+    allFoldersWithoutFilters,
+    dispatch,
+    t,
+  ]);
 
   const handleEnterDown = useCallback(
     (e: KeyboardEvent<HTMLDivElement>) => {
@@ -297,19 +340,79 @@ const Folder = <T extends ConversationInfo | PromptInfo | DialFile>({
             );
             return;
           }
+
+          if (
+            !isEntityNameOnSameLevelUnique(
+              draggedFolder.name,
+              { ...draggedFolder, folderId: currentFolder.id },
+              allFoldersWithoutFilters,
+            )
+          ) {
+            dispatch(
+              UIActions.showToast({
+                message: t(
+                  'Folder with name "{{folderName}}" already exists in this folder.',
+                  {
+                    ns: 'folder',
+                    folderName: draggedFolder.name,
+                  },
+                ),
+                type: 'error',
+              }),
+            );
+
+            return;
+          }
         }
+
+        const entityData = e.dataTransfer.getData(
+          getEntityMoveType(featureType),
+        );
+        if (entityData) {
+          const draggedEntity = JSON.parse(entityData);
+
+          if (
+            !isEntityNameOnSameLevelUnique(
+              draggedEntity.name,
+              { ...draggedEntity, folderId: currentFolder.id },
+              allItemsWithoutFilters,
+            )
+          ) {
+            dispatch(
+              UIActions.showToast({
+                message: t(
+                  '{{entityType}} with name "{{entityName}}" already exists in this folder.',
+                  {
+                    ns: 'common',
+                    entityType:
+                      featureType === FeatureType.Chat
+                        ? 'Conversation'
+                        : 'Prompt',
+                    entityName: draggedEntity.name,
+                  },
+                ),
+                type: 'error',
+              }),
+            );
+
+            return;
+          }
+        }
+
         handleDrop(e, currentFolder);
       }
     },
     [
-      handleDrop,
-      isExternal,
-      dispatch,
+      allFolders,
+      allFoldersWithoutFilters,
+      allItemsWithoutFilters,
       currentFolder,
+      dispatch,
       featureType,
-      allFolders,
-      maxDepth,
+      handleDrop,
+      isExternal,
       level,
+      maxDepth,
       t,
     ],
   );
@@ -680,7 +783,9 @@ const Folder = <T extends ConversationInfo | PromptInfo | DialFile>({
                     currentFolder={item}
                     itemComponent={itemComponent}
                     allItems={allItems}
+                    allItemsWithoutFilters={allItemsWithoutFilters}
                     allFolders={allFolders}
+                    allFoldersWithoutFilters={allFoldersWithoutFilters}
                     highlightedFolders={highlightedFolders}
                     openedFoldersIds={openedFoldersIds}
                     loadingFolderIds={loadingFolderIds}
diff --git a/apps/chat/src/components/Promptbar/components/PromptFolders.tsx b/apps/chat/src/components/Promptbar/components/PromptFolders.tsx
index 3d9a1dc294..8d778626a3 100644
--- a/apps/chat/src/components/Promptbar/components/PromptFolders.tsx
+++ b/apps/chat/src/components/Promptbar/components/PromptFolders.tsx
@@ -54,9 +54,11 @@ const PromptFolderTemplate = ({
   const highlightedFolders = useAppSelector(
     PromptsSelectors.selectSelectedPromptFoldersIds,
   );
+  const allPrompts = useAppSelector(PromptsSelectors.selectPrompts);
   const prompts = useAppSelector((state) =>
     PromptsSelectors.selectFilteredPrompts(state, filters, searchTerm),
   );
+  const allFolders = useAppSelector(PromptsSelectors.selectFolders);
   const promptFolders = useAppSelector((state) =>
     PromptsSelectors.selectFilteredFolders(
       state,
@@ -147,7 +149,9 @@ const PromptFolderTemplate = ({
         currentFolder={folder}
         itemComponent={PromptComponent}
         allItems={prompts}
+        allItemsWithoutFilters={allPrompts}
         allFolders={promptFolders}
+        allFoldersWithoutFilters={allFolders}
         highlightedFolders={highlightedFolders}
         openedFoldersIds={openedFoldersIds}
         handleDrop={handleDrop}
diff --git a/apps/chat/src/components/Promptbar/components/PromptModal.tsx b/apps/chat/src/components/Promptbar/components/PromptModal.tsx
index f0c7cf72d1..d37dbb9e04 100644
--- a/apps/chat/src/components/Promptbar/components/PromptModal.tsx
+++ b/apps/chat/src/components/Promptbar/components/PromptModal.tsx
@@ -13,14 +13,19 @@ import { useTranslation } from 'next-i18next';
 
 import classNames from 'classnames';
 
+import {
+  isEntityNameOnSameLevelUnique,
+  prepareEntityName,
+} from '@/src/utils/app/common';
 import { notAllowedSymbolsRegex } from '@/src/utils/app/file';
 import { onBlur } from '@/src/utils/app/style-helpers';
 
 import { Prompt } from '@/src/types/prompt';
 import { Translation } from '@/src/types/translation';
 
-import { useAppSelector } from '@/src/store/hooks';
+import { useAppDispatch, useAppSelector } from '@/src/store/hooks';
 import { PromptsSelectors } from '@/src/store/prompts/prompts.reducers';
+import { UIActions } from '@/src/store/ui/ui.reducers';
 
 import { NotFoundEntity } from '@/src/components/Common/NotFoundEntity';
 
@@ -35,8 +40,11 @@ interface Props {
 }
 
 export const PromptModal: FC<Props> = ({ isOpen, onClose, onUpdatePrompt }) => {
+  const dispatch = useAppDispatch();
+
   const selectedPrompt = useAppSelector(PromptsSelectors.selectSelectedPrompt);
   const isLoading = useAppSelector(PromptsSelectors.isPromptLoading);
+  const allPrompts = useAppSelector(PromptsSelectors.selectPrompts);
 
   const { t } = useTranslation(Translation.PromptBar);
   const [name, setName] = useState<string>('');
@@ -68,44 +76,70 @@ export const PromptModal: FC<Props> = ({ isOpen, onClose, onUpdatePrompt }) => {
     setContent(e.target.value);
   };
 
-  const handleSubmit = useCallback(
-    (e: MouseEvent<HTMLButtonElement>, selectedPrompt: Prompt) => {
-      e.preventDefault();
-      e.stopPropagation();
+  const updatePrompt = useCallback(
+    (selectedPrompt: Prompt) => {
+      const newName = prepareEntityName(name);
+      setName(newName);
 
-      setSubmitted(true);
+      if (!newName) return;
+
+      if (!isEntityNameOnSameLevelUnique(newName, selectedPrompt, allPrompts)) {
+        dispatch(
+          UIActions.showToast({
+            message: t(
+              'Prompt with name "{{newName}}" already exists in this folder.',
+              {
+                ns: 'prompt',
+                newName,
+              },
+            ),
+            type: 'error',
+          }),
+        );
 
-      if (!name || name.trim() === '') {
         return;
       }
-      const updatedPrompt = {
+
+      onUpdatePrompt({
         ...selectedPrompt,
-        name: name.trim(),
+        name: newName,
         description: description?.trim(),
         content: content.trim(),
-      };
-
-      onUpdatePrompt(updatedPrompt);
+      });
       setSubmitted(false);
       onClose();
     },
-    [name, description, content, onUpdatePrompt, onClose],
+    [
+      allPrompts,
+      content,
+      description,
+      dispatch,
+      name,
+      onClose,
+      onUpdatePrompt,
+      t,
+    ],
+  );
+
+  const handleSubmit = useCallback(
+    (e: MouseEvent<HTMLButtonElement>, selectedPrompt: Prompt) => {
+      e.preventDefault();
+      e.stopPropagation();
+
+      setSubmitted(true);
+
+      updatePrompt(selectedPrompt);
+    },
+    [updatePrompt],
   );
 
   const handleEnter = useCallback(
     (e: KeyboardEvent<HTMLDivElement>, selectedPrompt: Prompt) => {
       if (e.key === 'Enter' && !e.shiftKey) {
-        onUpdatePrompt({
-          ...selectedPrompt,
-          name,
-          description,
-          content: content.trim(),
-        });
-        setSubmitted(false);
-        onClose();
+        updatePrompt(selectedPrompt);
       }
     },
-    [onUpdatePrompt, name, description, content, onClose],
+    [updatePrompt],
   );
 
   useEffect(() => {
diff --git a/apps/chat/src/constants/default-settings.ts b/apps/chat/src/constants/default-settings.ts
index 73c58dd2c6..2e7485c67d 100644
--- a/apps/chat/src/constants/default-settings.ts
+++ b/apps/chat/src/constants/default-settings.ts
@@ -8,6 +8,7 @@ export const DIAL_API_HOST = process.env.DIAL_API_HOST;
 export const DEFAULT_TEMPERATURE = parseFloat(
   process.env.NEXT_PUBLIC_DEFAULT_TEMPERATURE || '1',
 );
+export const MAX_ENTITY_LENGTH = 160;
 
 export const DEFAULT_CONVERSATION_NAME = 'New conversation';
 export const DEFAULT_PROMPT_NAME = 'New prompt';
diff --git a/apps/chat/src/utils/app/common.ts b/apps/chat/src/utils/app/common.ts
index ca8783c6a5..20b18a78a8 100644
--- a/apps/chat/src/utils/app/common.ts
+++ b/apps/chat/src/utils/app/common.ts
@@ -1,4 +1,4 @@
-import { getNextDefaultName } from '@/src/utils/app/folders';
+import { notAllowedSymbolsRegex } from '@/src/utils/app/file';
 import { getFoldersFromPaths } from '@/src/utils/app/folders';
 
 import { Conversation } from '@/src/types/chat';
@@ -8,6 +8,8 @@ import { FolderInterface, FolderType } from '@/src/types/folder';
 import { Prompt } from '@/src/types/prompt';
 import { PromptInfo } from '@/src/types/prompt';
 
+import { MAX_ENTITY_LENGTH } from '@/src/constants/default-settings';
+
 /**
  * Combine entities. If there are the same ids then will be used entity from entities1 i.e. first in array
  * @param entities1
@@ -26,28 +28,19 @@ export const combineEntities = <T extends Entity>(
     );
 };
 
-export const getSameLevelEntitiesWithUniqueNames = <
-  T extends Prompt | Conversation,
+export const isEntityNameOnSameLevelUnique = <
+  T extends Conversation | Prompt | FolderInterface,
 >(
+  nameToBeUnique: string,
+  entity: T,
   entities: T[],
-) => {
-  const folderGroups: Record<string, Record<string, number>> = {};
-
-  entities.forEach((entity) => {
-    const folderId = entity.folderId || '';
-
-    if (!folderGroups[folderId]) {
-      folderGroups[folderId] = {};
-    }
-    if (!folderGroups[folderId][entity.name]) {
-      folderGroups[folderId][entity.name] = 1;
-    } else {
-      folderGroups[folderId][entity.name]++;
-      entity.name = getNextDefaultName(entity.name, entities);
-    }
-  });
-
-  return entities;
+): boolean => {
+  const sameLevelEntities = entities.filter(
+    (e) =>
+      entity.id !== e.id &&
+      (e.folderId === entity.folderId || (!entity.folderId && !e.folderId)),
+  );
+  return !sameLevelEntities.some((e) => nameToBeUnique === e.name);
 };
 
 export const filterOnlyMyEntities = <
@@ -97,3 +90,13 @@ export const updateEntitiesFoldersAndIds = (
 
   return { updatedFolders, updatedOpenedFoldersIds };
 };
+
+export const prepareEntityName = (name: string) => {
+  const clearName = name.trim().replace(notAllowedSymbolsRegex, '');
+
+  if (clearName.length > MAX_ENTITY_LENGTH) {
+    return clearName.substring(0, MAX_ENTITY_LENGTH - 3) + '...';
+  }
+
+  return clearName;
+};
diff --git a/apps/chat/src/utils/app/conversation.ts b/apps/chat/src/utils/app/conversation.ts
index 8a60018599..129ad17426 100644
--- a/apps/chat/src/utils/app/conversation.ts
+++ b/apps/chat/src/utils/app/conversation.ts
@@ -1,3 +1,5 @@
+import { prepareEntityName } from '@/src/utils/app/common';
+
 import {
   Conversation,
   ConversationInfo,
@@ -9,7 +11,7 @@ import { EntityType, PartialBy, UploadStatus } from '@/src/types/common';
 import { OpenAIEntityAddon, OpenAIEntityModel } from '@/src/types/openai';
 
 import { getConversationApiKey, parseConversationApiKey } from '../server/api';
-import { constructPath, notAllowedSymbolsRegex } from './file';
+import { constructPath } from './file';
 import { compareEntitiesByName, splitPath } from './folders';
 
 export const getAssitantModelId = (
@@ -79,24 +81,24 @@ export const getNewConversationName = (
   message: Message,
   updatedMessages: Message[],
 ): string => {
+  const convName = prepareEntityName(conversation.name);
+
   if (
     conversation.replay.isReplay ||
     updatedMessages.length !== 2 ||
     conversation.isNameChanged
   ) {
-    return conversation.name;
+    return convName;
   }
-  const content = message.content
-    .replaceAll(notAllowedSymbolsRegex, ' ')
-    .trim();
+  const content = prepareEntityName(message.content);
   if (content.length > 0) {
-    return content.length > 160 ? content.substring(0, 157) + '...' : content;
+    return content;
   } else if (message.custom_content?.attachments?.length) {
     const files = message.custom_content.attachments;
     return files[0].title;
   }
 
-  return conversation.name;
+  return convName;
 };
 
 export const getGeneratedConversationId = <T extends ConversationInfo>(