diff --git a/src/workato_platform_cli/cli/commands/profiles.py b/src/workato_platform_cli/cli/commands/profiles.py
index 5da767f..5a9dcb4 100644
--- a/src/workato_platform_cli/cli/commands/profiles.py
+++ b/src/workato_platform_cli/cli/commands/profiles.py
@@ -3,6 +3,7 @@
 import json
 import os
 
+from pathlib import Path
 from typing import Any
 
 import asyncclick as click
@@ -345,6 +346,164 @@ async def status(
             click.echo("   💡 Or set WORKATO_API_TOKEN environment variable")
 
 
+def _format_file_path(file_path: Path) -> str:
+    """Format file path for display, showing relative to current directory."""
+    try:
+        rel_path = file_path.relative_to(Path.cwd())
+        return f"./{rel_path}"
+    except ValueError:
+        # File is outside current directory (shouldn't happen with cwd search)
+        return str(file_path)
+
+
+def _update_workatoenv_files(old_name: str, new_name: str) -> list[Path]:
+    """Find and update all .workatoenv files that reference the old profile name.
+
+    Searches recursively from current directory.
+    Returns list of updated file paths.
+    """
+    updated_files = []
+    current_dir = Path.cwd()
+
+    # Search from current directory for .workatoenv files
+    for workatoenv_file in current_dir.rglob(".workatoenv"):
+        try:
+            # Open for reading and writing
+            with open(workatoenv_file, "r+") as f:
+                data = json.load(f)
+
+                # Check if profile field matches old name
+                if data.get("profile") == old_name:
+                    # Update to new name
+                    data["profile"] = new_name
+
+                    # Write back (truncate and write from beginning)
+                    f.seek(0)
+                    f.truncate()
+                    json.dump(data, f, indent=2)
+                    f.write("\n")  # Add trailing newline
+
+                    updated_files.append(workatoenv_file)
+        except (OSError, json.JSONDecodeError):
+            # Skip files we can't read or parse
+            continue
+
+    return updated_files
+
+
+@profiles.command()
+@click.argument("old_name")
+@click.argument("new_name")
+@click.option(
+    "--output-mode",
+    type=click.Choice(["table", "json"]),
+    default="table",
+    help="Output format: table (default) or json",
+)
+@click.option(
+    "--yes",
+    is_flag=True,
+    help="Skip confirmation prompt",
+)
+@handle_cli_exceptions
+@inject
+async def rename(
+    old_name: str,
+    new_name: str,
+    output_mode: str = "table",
+    yes: bool = False,
+    config_manager: ConfigManager = Provide[Container.config_manager],
+) -> None:
+    """Rename a profile"""
+    # Check if old profile exists
+    old_profile = config_manager.profile_manager.get_profile(old_name)
+    if not old_profile:
+        if output_mode == "json":
+            error_msg = f"Profile '{old_name}' not found"
+            output_data: dict[str, Any] = {"status": "error", "error": error_msg}
+            click.echo(json.dumps(output_data))
+        else:
+            click.echo(f"❌ Profile '{old_name}' not found")
+            click.echo("💡 Use 'workato profiles list' to see available profiles")
+        return
+
+    # Check if new name already exists
+    if config_manager.profile_manager.get_profile(new_name):
+        if output_mode == "json":
+            error_msg = f"Profile '{new_name}' already exists"
+            output_data = {"status": "error", "error": error_msg}
+            click.echo(json.dumps(output_data))
+        else:
+            click.echo(f"❌ Profile '{new_name}' already exists")
+            click.echo(
+                "💡 Choose a different name or delete the existing profile first"
+            )
+        return
+
+    # Show confirmation prompt (skip in JSON mode or if --yes flag)
+    if (
+        not yes
+        and output_mode != "json"
+        and not click.confirm(f"Rename profile '{old_name}' to '{new_name}'?")
+    ):
+        click.echo("❌ Rename cancelled")
+        return
+
+    # Get the token from keyring
+    old_token = config_manager.profile_manager._get_token_from_keyring(old_name)
+
+    # Create new profile with same data and token
+    try:
+        config_manager.profile_manager.set_profile(new_name, old_profile, old_token)
+    except ValueError as e:
+        if output_mode == "json":
+            output_data = {"status": "error", "error": str(e)}
+            click.echo(json.dumps(output_data))
+        else:
+            click.echo(f"❌ Failed to create new profile: {e}")
+        return
+
+    # If old profile was current, set new profile as current
+    current_profile = config_manager.profile_manager.get_current_profile_name()
+    was_current = current_profile == old_name
+    if was_current:
+        config_manager.profile_manager.set_current_profile(new_name)
+
+    # Delete old profile
+    config_manager.profile_manager.delete_profile(old_name)
+
+    # Update all .workatoenv files that reference the old profile
+    if output_mode == "table":
+        click.echo("🔄 Updating project configurations...")
+    updated_files = _update_workatoenv_files(old_name, new_name)
+
+    # JSON output mode
+    if output_mode == "json":
+        output_data = {
+            "status": "success",
+            "old_name": old_name,
+            "new_name": new_name,
+            "was_current_profile": was_current,
+            "updated_files": [str(f) for f in updated_files],
+            "updated_files_count": len(updated_files),
+        }
+        click.echo(json.dumps(output_data))
+        return
+
+    # Table output mode (default)
+    click.echo("✅ Profile renamed successfully")
+    if was_current:
+        click.echo(f"✅ Set '{new_name}' as the active profile")
+
+    # Display updated files
+    if not updated_files:
+        return
+
+    click.echo(f"✅ Updated {len(updated_files)} project configuration(s)")
+    for file_path in updated_files:
+        click.echo(f"   • {_format_file_path(file_path)}")
+
+
 @profiles.command()
 @click.argument("profile_name")
 @click.confirmation_option(prompt="Are you sure you want to delete this profile?")
diff --git a/tests/conftest.py b/tests/conftest.py
index 4530a87..b37b5d9 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -1,8 +1,9 @@
 """Pytest configuration and shared fixtures."""
 
+import json
 import tempfile
 
-from collections.abc import Generator
+from collections.abc import Callable, Generator
 from pathlib import Path
 from typing import Any
 from unittest.mock import MagicMock, Mock, patch
@@ -144,3 +145,80 @@ def prevent_keyring_errors() -> None:
         minimal_keyring.delete_password.return_value = None
 
         sys.modules["keyring"] = minimal_keyring
+
+
+# Shared test helpers
+
+
+def parse_json_output(capsys: pytest.CaptureFixture[str]) -> dict[str, Any]:
+    """Parse JSON output from capsys."""
+    output = capsys.readouterr().out
+    result: dict[str, Any] = json.loads(output)
+    return result
+
+
+def create_workatoenv_file(
+    tmp_path: Path,
+    dir_name: str,
+    profile: str,
+    project_id: int = 123,
+    **extra_fields: Any,
+) -> Path:
+    """Create a test .workatoenv file.
+
+    Args:
+        tmp_path: Temporary directory path
+        dir_name: Name of the project directory to create
+        profile: Profile name to set in the workatoenv file
+        project_id: Project ID (default: 123)
+        **extra_fields: Additional fields to include in the workatoenv file
+    """
+    project_dir = tmp_path / dir_name
+    project_dir.mkdir()
+    workatoenv = project_dir / ".workatoenv"
+
+    data = {"project_id": project_id, "profile": profile}
+    data.update(extra_fields)
+
+    workatoenv.write_text(json.dumps(data))
+    return workatoenv
+
+
+def _make_workatoenv_updater(tmp_path: Path) -> Callable[[str, str], list[Path]]:
+    """Create a mock _update_workatoenv_files function for testing.
+
+    Returns a function that searches tmp_path instead of home directory.
+    """
+
+    def mock_update(old_name: str, new_name: str) -> list[Path]:
+        updated_files = []
+        for workatoenv_file in tmp_path.rglob(".workatoenv"):
+            try:
+                with open(workatoenv_file, "r+") as f:
+                    data = json.load(f)
+                    if data.get("profile") == old_name:
+                        data["profile"] = new_name
+                        f.seek(0)
+                        f.truncate()
+                        json.dump(data, f, indent=2)
+                        f.write("\n")
+                        updated_files.append(workatoenv_file)
+            except (OSError, json.JSONDecodeError):
+                continue
+        return updated_files
+
+    return mock_update
+
+
+def mock_workatoenv_updates(tmp_path: Path) -> Any:
+    """Context manager for mocking workatoenv file updates.
+
+    Use this to mock the _update_workatoenv_files function in profiles module.
+    Must import profiles_module in your test file to use this helper.
+    """
+    from workato_platform_cli.cli.commands import profiles as profiles_module
+
+    mock_update = _make_workatoenv_updater(tmp_path)
+    return patch.object(
+        profiles_module, "_update_workatoenv_files", side_effect=mock_update
+    )
diff --git a/tests/unit/commands/test_profiles.py b/tests/unit/commands/test_profiles.py
index a12809f..a7a831a 100644
--- a/tests/unit/commands/test_profiles.py
+++ b/tests/unit/commands/test_profiles.py
@@ -9,10 +9,16 @@
 import asyncclick as click
 import pytest
 
+from tests.conftest import (
+    create_workatoenv_file,
+    mock_workatoenv_updates,
+    parse_json_output,
+)
 from workato_platform_cli.cli.commands.profiles import (
     create,
     delete,
     list_profiles,
+    rename,
     show,
     status,
     use,
@@ -68,6 +74,40 @@ def _factory(**profile_methods: Mock) -> Mock:
     return _factory
 
 
+# Test-specific fixtures
+
+
+@pytest.fixture
+def make_rename_config_manager(
+    profile_data_factory: Callable[..., ProfileData],
+    make_config_manager: Callable[..., Mock],
+) -> Callable:
+    """Factory for creating config managers for rename tests."""
+
+    def _factory(
+        is_current: bool = False, **overrides: Mock
+    ) -> tuple[Mock, ProfileData]:
+        old_profile = profile_data_factory()
+        current = "old" if is_current else "other"
+
+        defaults = {
+            "get_profile": Mock(
+                side_effect=lambda name: old_profile if name == "old" else None
+            ),
+            "_get_token_from_keyring": Mock(return_value="test_token"),
+            "set_profile": Mock(),
+            "get_current_profile_name": Mock(return_value=current),
+            "delete_profile": Mock(),
+        }
+        if is_current:
+            defaults["set_current_profile"] = Mock()
+
+        defaults.update(overrides)
+        return make_config_manager(**defaults), old_profile
+
+    return _factory
+
+
 @pytest.mark.asyncio
 async def test_list_profiles_displays_profile_details(
     capsys: pytest.CaptureFixture[str],
@@ -668,10 +708,7 @@ async def test_list_profiles_json_output_mode(
     assert list_profiles.callback
     await list_profiles.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-
-    # Parse JSON output
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["current_profile"] == "dev"
     assert "dev" in parsed["profiles"]
@@ -696,10 +733,7 @@ async def test_list_profiles_json_output_mode_empty(
     assert list_profiles.callback
     await list_profiles.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-
-    # Parse JSON output
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["current_profile"] is None
     assert parsed["profiles"] == {}
@@ -718,8 +752,7 @@ async def test_status_json_no_profile(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["profile"] is None
     assert parsed["error"] == "No active profile configured"
@@ -760,8 +793,7 @@ async def test_status_json_with_project_override(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["profile"]["name"] == "dev-profile"
     assert parsed["profile"]["source"]["type"] == "project_override"
@@ -804,8 +836,7 @@ async def test_status_json_with_env_profile(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["profile"]["name"] == "env-profile"
     assert parsed["profile"]["source"]["type"] == "environment_variable"
@@ -843,8 +874,7 @@ async def test_status_json_with_env_token(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["authentication"]["configured"] is True
     assert parsed["authentication"]["source"]["type"] == "environment_variable"
@@ -878,8 +908,7 @@ async def test_status_json_no_token(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["authentication"]["configured"] is False
 
@@ -919,8 +948,7 @@ async def test_status_json_project_path_none(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["project"]["configured"] is False
 
@@ -951,8 +979,7 @@ async def test_status_json_exception_handling(
     assert status.callback
     await status.callback(output_mode="json", config_manager=config_manager)
 
-    output = capsys.readouterr().out
-    parsed = json.loads(output)
+    parsed = parse_json_output(capsys)
 
     assert parsed["project"]["configured"] is False
 
@@ -1157,3 +1184,333 @@ async def test_create_profile_non_interactive(
     config_manager.profile_manager.set_current_profile.assert_called_once_with(
         "test_profile"
     )
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_success(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test successful profile rename."""
+    config_manager, old_profile = make_rename_config_manager(is_current=False)
+
+    assert rename.callback
+    with patch("asyncclick.confirm", return_value=True):
+        await rename.callback(
+            old_name="old", new_name="new", config_manager=config_manager
+        )
+
+    output = capsys.readouterr().out
+    assert "✅ Profile renamed successfully" in output
+
+    # Verify profile was created with new name and old profile deleted
+    config_manager.profile_manager.set_profile.assert_called_once_with(
+        "new", old_profile, "test_token"
+    )
+    config_manager.profile_manager.delete_profile.assert_called_once_with("old")
+
+
+@pytest.mark.asyncio
+async def test_rename_current_profile(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test renaming the current profile updates current profile setting."""
+    config_manager, _ = make_rename_config_manager(is_current=True)
+
+    assert rename.callback
+    with patch("asyncclick.confirm", return_value=True):
+        await rename.callback(
+            old_name="old", new_name="new", config_manager=config_manager
+        )
+
+    output = capsys.readouterr().out
+    assert "✅ Profile renamed successfully" in output
+    assert "✅ Set 'new' as the active profile" in output
+
+    # Verify current profile was updated
+    config_manager.profile_manager.set_current_profile.assert_called_once_with("new")
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_not_found(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test renaming a profile that doesn't exist."""
+    config_manager, _ = make_rename_config_manager(
+        get_profile=Mock(return_value=None)  # Profile doesn't exist
+    )
+
+    assert rename.callback
+    await rename.callback(
+        old_name="missing", new_name="new", config_manager=config_manager
+    )
+
+    output = capsys.readouterr().out
+    assert "❌ Profile 'missing' not found" in output
+    assert "Use 'workato profiles list'" in output
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_new_name_exists(
+    capsys: pytest.CaptureFixture[str],
+    profile_data_factory: Callable[..., ProfileData],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test renaming to a profile name that already exists."""
+    # Create both profiles first to avoid circular dependency
+    config_manager, old_profile = make_rename_config_manager()
+    new_profile = profile_data_factory()
+
+    # Override get_profile to return new_profile for non-"old" names
+    config_manager.profile_manager.get_profile = Mock(
+        side_effect=lambda name: old_profile if name == "old" else new_profile
+    )
+
+    assert rename.callback
+    await rename.callback(
+        old_name="old", new_name="existing", config_manager=config_manager
+    )
+
+    output = capsys.readouterr().out
+    assert "❌ Profile 'existing' already exists" in output
+    assert "Choose a different name" in output
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_cancelled(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test cancelling profile rename."""
+    config_manager, _ = make_rename_config_manager()
+
+    assert rename.callback
+    with patch("asyncclick.confirm", return_value=False):  # User cancels
+        await rename.callback(
+            old_name="old", new_name="new", config_manager=config_manager
+        )
+
+    output = capsys.readouterr().out
+    assert "❌ Rename cancelled" in output
+
+    # Verify profile was not modified
+    config_manager.profile_manager.set_profile.assert_not_called()
+    config_manager.profile_manager.delete_profile.assert_not_called()
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_set_profile_failure(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test handling of set_profile failure during rename."""
+    config_manager, _ = make_rename_config_manager(
+        set_profile=Mock(side_effect=ValueError("Keyring error"))
+    )
+
+    assert rename.callback
+    with patch("asyncclick.confirm", return_value=True):
+        await rename.callback(
+            old_name="old", new_name="new", config_manager=config_manager
+        )
+
+    output = capsys.readouterr().out
+    assert "❌ Failed to create new profile:" in output
+    assert "Keyring error" in output
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_updates_workatoenv_files(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+    tmp_path: Path,
+) -> None:
+    """Test that rename updates .workatoenv files that reference the old profile."""
+    config_manager, _ = make_rename_config_manager()
+
+    # Create test .workatoenv files
+    workatoenv1 = create_workatoenv_file(
+        tmp_path, "project1", "old", project_name="Project 1", folder_id=456
+    )
+    workatoenv2 = create_workatoenv_file(
+        tmp_path,
+        "project2",
+        "other",
+        project_id=789,
+        project_name="Project 2",
+        folder_id=101,
+    )
+
+    with mock_workatoenv_updates(tmp_path):
+        assert rename.callback
+        with patch("asyncclick.confirm", return_value=True):
+            await rename.callback(
+                old_name="old", new_name="new", config_manager=config_manager
+            )
+
+    # Verify workatoenv1 was updated
+    with open(workatoenv1) as f:
+        data1 = json.load(f)
+    assert data1["profile"] == "new"
+
+    # Verify workatoenv2 was NOT updated
+    with open(workatoenv2) as f:
+        data2 = json.load(f)
+    assert data2["profile"] == "other"
+
+    output = capsys.readouterr().out
+    assert "✅ Updated 1 project configuration(s)" in output
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_skips_malformed_workatoenv_files(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+    tmp_path: Path,
+) -> None:
+    """Test that rename skips malformed .workatoenv files."""
+    config_manager, _ = make_rename_config_manager()
+
+    # Create malformed .workatoenv file
+    project1 = tmp_path / "project1"
+    project1.mkdir()
+    workatoenv1 = project1 / ".workatoenv"
+    workatoenv1.write_text("invalid json {")
+
+    # Create valid .workatoenv file
+    workatoenv2 = create_workatoenv_file(
+        tmp_path,
+        "project2",
+        "old",
+        project_id=789,
+        project_name="Project 2",
+        folder_id=101,
+    )
+
+    with mock_workatoenv_updates(tmp_path):
+        assert rename.callback
+        with patch("asyncclick.confirm", return_value=True):
+            await rename.callback(
+                old_name="old", new_name="new", config_manager=config_manager
+            )
+
+    # Verify valid file was updated
+    with open(workatoenv2) as f:
+        data2 = json.load(f)
+    assert data2["profile"] == "new"
+
+    # Verify malformed file was skipped (still invalid)
+    assert workatoenv1.read_text() == "invalid json {"
+
+    output = capsys.readouterr().out
+    assert "✅ Updated 1 project configuration(s)" in output
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_json_output_success(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+    tmp_path: Path,
+) -> None:
+    """Test rename with JSON output mode."""
+    config_manager, _ = make_rename_config_manager(is_current=True)
+
+    # Create test .workatoenv file
+    create_workatoenv_file(tmp_path, "project1", "old")
+
+    with mock_workatoenv_updates(tmp_path):
+        assert rename.callback
+        await rename.callback(
+            old_name="old",
+            new_name="new",
+            output_mode="json",
+            config_manager=config_manager,
+        )
+
+    parsed = parse_json_output(capsys)
+
+    assert parsed["status"] == "success"
+    assert parsed["old_name"] == "old"
+    assert parsed["new_name"] == "new"
+    assert parsed["was_current_profile"] is True
+    assert parsed["updated_files_count"] == 1
+    assert len(parsed["updated_files"]) == 1
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_json_output_error_not_found(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test rename JSON output when profile not found."""
+    config_manager, _ = make_rename_config_manager(get_profile=Mock(return_value=None))
+
+    assert rename.callback
+    await rename.callback(
+        old_name="missing",
+        new_name="new",
+        output_mode="json",
+        config_manager=config_manager,
+    )
+
+    parsed = parse_json_output(capsys)
+
+    assert parsed["status"] == "error"
+    assert "not found" in parsed["error"]
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_json_output_error_exists(
+    capsys: pytest.CaptureFixture[str],
+    profile_data_factory: Callable[..., ProfileData],
+    make_rename_config_manager: Callable,
+) -> None:
+    """Test rename JSON output when new name already exists."""
+    # Create both profiles first to avoid circular dependency
+    config_manager, old_profile = make_rename_config_manager()
+    new_profile = profile_data_factory()
+
+    # Override get_profile to return new_profile for non-"old" names
+    config_manager.profile_manager.get_profile = Mock(
+        side_effect=lambda name: old_profile if name == "old" else new_profile
+    )
+
+    assert rename.callback
+    await rename.callback(
+        old_name="old",
+        new_name="existing",
+        output_mode="json",
+        config_manager=config_manager,
+    )
+
+    parsed = parse_json_output(capsys)
+
+    assert parsed["status"] == "error"
+    assert "already exists" in parsed["error"]
+
+
+@pytest.mark.asyncio
+async def test_rename_profile_yes_flag_skips_confirmation(
+    capsys: pytest.CaptureFixture[str],
+    make_rename_config_manager: Callable,
+    tmp_path: Path,
+) -> None:
+    """Test that --yes flag skips confirmation prompt."""
+    config_manager, _ = make_rename_config_manager()
+
+    with mock_workatoenv_updates(tmp_path):
+        # Should not prompt with --yes flag
+        assert rename.callback
+        await rename.callback(
+            old_name="old",
+            new_name="new",
+            yes=True,
+            config_manager=config_manager,
+        )
+
+    output = capsys.readouterr().out
+    assert "✅ Profile renamed successfully" in output
+    # Verify no confirmation prompt was shown
+    assert "Rename profile" not in output