diff --git a/editor/src/UI/StyleTokens.h b/editor/src/UI/StyleTokens.h
index 5c88088a..d4f3e2d2 100644
--- a/editor/src/UI/StyleTokens.h
+++ b/editor/src/UI/StyleTokens.h
@@ -354,6 +354,18 @@ inline float InlineRenameFieldRounding() {
     return 2.0f;
 }
 
+inline ImVec4 InlineRenameFieldBackgroundColor() {
+    return ImVec4(0.25f, 0.25f, 0.25f, 1.0f);
+}
+
+inline ImVec4 InlineRenameFieldHoveredColor() {
+    return InlineRenameFieldBackgroundColor();
+}
+
+inline ImVec4 InlineRenameFieldActiveColor() {
+    return InlineRenameFieldBackgroundColor();
+}
+
 inline float InlineRenameFieldHeight() {
     return ImGui::GetFontSize() + InlineRenameFieldFramePadding().y * 2.0f;
 }
diff --git a/editor/src/UI/Widgets.h b/editor/src/UI/Widgets.h
index d6ba39dc..2f56f9fa 100644
--- a/editor/src/UI/Widgets.h
+++ b/editor/src/UI/Widgets.h
@@ -210,6 +210,9 @@ inline InlineRenameFieldResult DrawInlineRenameField(
     ImGuiInputTextFlags flags = ImGuiInputTextFlags_EnterReturnsTrue | ImGuiInputTextFlags_AutoSelectAll) {
     ImGui::PushStyleVar(ImGuiStyleVar_FramePadding, InlineRenameFieldFramePadding());
     ImGui::PushStyleVar(ImGuiStyleVar_FrameRounding, InlineRenameFieldRounding());
+    ImGui::PushStyleColor(ImGuiCol_FrameBg, InlineRenameFieldBackgroundColor());
+    ImGui::PushStyleColor(ImGuiCol_FrameBgHovered, InlineRenameFieldHoveredColor());
+    ImGui::PushStyleColor(ImGuiCol_FrameBgActive, InlineRenameFieldActiveColor());
     ImGui::SetNextItemWidth(width);
     if (requestFocus) {
         ImGui::SetKeyboardFocusHere();
@@ -219,6 +222,7 @@ inline InlineRenameFieldResult DrawInlineRenameField(
     const bool active = ImGui::IsItemActive();
     const bool deactivated = ImGui::IsItemDeactivated();
     const bool cancelRequested = active && ImGui::IsKeyPressed(ImGuiKey_Escape);
+    ImGui::PopStyleColor(3);
     ImGui::PopStyleVar(2);
 
     return InlineRenameFieldResult{ submitted, cancelRequested, deactivated, active };
diff --git a/editor/src/panels/HierarchyPanel.cpp b/editor/src/panels/HierarchyPanel.cpp
index 32969d5f..de20622b 100644
--- a/editor/src/panels/HierarchyPanel.cpp
+++ b/editor/src/panels/HierarchyPanel.cpp
@@ -29,6 +29,65 @@ void DrawHierarchyTreePrefix(const XCEngine::Editor::UI::TreeNodePrefixContext&
         XCEngine::Editor::UI::AssetIconKind::GameObject);
 }
 
+XCEngine::Editor::UI::TreeNodeDefinition BuildHierarchyNodeDefinition(
+    XCEngine::Editor::IEditorContext& context,
+    XCEngine::Components::GameObject* gameObject,
+    XCEngine::Editor::UI::TargetedPopupState<XCEngine::Components::GameObject*>& itemContextMenu) {
+    XCEngine::Editor::UI::TreeNodeDefinition nodeDefinition;
+    nodeDefinition.options.selected = context.GetSelectionManager().IsSelected(gameObject->GetID());
+    nodeDefinition.options.leaf = gameObject->GetChildCount() == 0;
+    nodeDefinition.style = XCEngine::Editor::UI::HierarchyTreeStyle();
+    nodeDefinition.prefix.width = XCEngine::Editor::UI::NavigationTreePrefixWidth();
+    nodeDefinition.prefix.draw = DrawHierarchyTreePrefix;
+    nodeDefinition.callbacks.onInteraction = [&context, &itemContextMenu, gameObject](const XCEngine::Editor::UI::TreeNodeResult& node) {
+        if (node.clicked) {
+            XCEngine::Editor::Actions::HandleHierarchySelectionClick(
+                context,
+                gameObject->GetID(),
+                ImGui::GetIO().KeyCtrl);
+        }
+
+        if (node.secondaryClicked) {
+            XCEngine::Editor::Actions::HandleHierarchyItemContextRequest(
+                context,
+                gameObject,
+                itemContextMenu);
+        }
+    };
+    nodeDefinition.callbacks.onRenderExtras = [&context, gameObject]() {
+        XCEngine::Editor::Actions::BeginHierarchyEntityDrag(gameObject);
+        XCEngine::Editor::Actions::AcceptHierarchyEntityDrop(context, gameObject);
+    };
+    return nodeDefinition;
+}
+
+void DrawHierarchyRenameFieldAtCurrentRow(
+    XCEngine::Editor::UI::InlineTextEditState<uint64_t, 256>& renameState,
+    const XCEngine::Editor::UI::TreeViewStyle& style) {
+    const ImVec2 itemMin = ImGui::GetItemRectMin();
+    const ImVec2 itemMax = ImGui::GetItemRectMax();
+    const float arrowSlotWidth = ImGui::GetTreeNodeToLabelSpacing();
+    const float prefixWidth = XCEngine::Editor::UI::NavigationTreePrefixWidth();
+    const float prefixGap = XCEngine::Editor::UI::NavigationTreePrefixLabelGap();
+    const float labelMinX =
+        itemMin.x +
+        arrowSlotWidth +
+        style.prefixStartOffset +
+        prefixWidth +
+        prefixGap;
+    const float renameWidth = (std::max)(0.0f, itemMax.x - labelMinX);
+    const float renameY = itemMin.y +
+        (std::max)(0.0f, (itemMax.y - itemMin.y - XCEngine::Editor::UI::InlineRenameFieldHeight()) * 0.5f);
+
+    XCEngine::Editor::UI::DrawInlineRenameFieldAt(
+        "##Rename",
+        ImVec2(labelMinX, renameY),
+        renameState.Buffer(),
+        renameState.BufferSize(),
+        renameWidth,
+        renameState.ConsumeFocusRequest());
+}
+
 } // namespace
 
 namespace XCEngine {
@@ -134,56 +193,37 @@ void HierarchyPanel::RenderEntity(::XCEngine::Components::GameObject* gameObject
 
     ImGui::PushID(static_cast<int>(gameObject->GetID()));
 
-    if (m_renameState.IsEditing(gameObject->GetID())) {
-        const UI::InlineRenameFieldResult renameField = UI::DrawInlineRenameField(
-            "##Rename",
-            m_renameState.Buffer(),
-            m_renameState.BufferSize(),
-            -1.0f,
-            m_renameState.ConsumeFocusRequest());
+    UI::TreeNodeDefinition nodeDefinition =
+        BuildHierarchyNodeDefinition(*m_context, gameObject, m_itemContextMenu);
+    const std::string persistenceKey = std::to_string(gameObject->GetUUID());
+    nodeDefinition.persistenceKey = persistenceKey;
+    const bool editing = m_renameState.IsEditing(gameObject->GetID());
+    const UI::TreeNodeResult node = UI::DrawTreeNode(
+        &m_treeState,
+        (void*)gameObject->GetUUID(),
+        editing ? "" : gameObject->GetName().c_str(),
+        nodeDefinition);
 
-        if (renameField.cancelRequested) {
+    if (editing) {
+        DrawHierarchyRenameFieldAtCurrentRow(m_renameState, nodeDefinition.style);
+
+        const bool active = ImGui::IsItemActive();
+        const bool deactivated = ImGui::IsItemDeactivated();
+        const bool cancelRequested = active && ImGui::IsKeyPressed(ImGuiKey_Escape);
+        if (cancelRequested) {
             CancelRename();
-        } else if (renameField.submitted || renameField.deactivated) {
+        } else if (deactivated || ImGui::IsKeyPressed(ImGuiKey_Enter) || ImGui::IsKeyPressed(ImGuiKey_KeypadEnter)) {
             CommitRename();
         }
-    } else {
-        UI::TreeNodeDefinition nodeDefinition;
-        nodeDefinition.options.selected = m_context->GetSelectionManager().IsSelected(gameObject->GetID());
-        nodeDefinition.options.leaf = gameObject->GetChildCount() == 0;
-        const std::string persistenceKey = std::to_string(gameObject->GetUUID());
-        nodeDefinition.persistenceKey = persistenceKey;
-        nodeDefinition.style = UI::HierarchyTreeStyle();
-        nodeDefinition.prefix.width = UI::NavigationTreePrefixWidth();
-        nodeDefinition.prefix.draw = DrawHierarchyTreePrefix;
-        nodeDefinition.callbacks.onInteraction = [this, gameObject](const UI::TreeNodeResult& node) {
-            if (node.clicked) {
-                Actions::HandleHierarchySelectionClick(*m_context, gameObject->GetID(), ImGui::GetIO().KeyCtrl);
-            }
-
-            if (node.secondaryClicked) {
-                Actions::HandleHierarchyItemContextRequest(*m_context, gameObject, m_itemContextMenu);
-            }
-        };
-        nodeDefinition.callbacks.onRenderExtras = [this, gameObject]() {
-            Actions::BeginHierarchyEntityDrag(gameObject);
-            Actions::AcceptHierarchyEntityDrop(*m_context, gameObject);
-        };
-
-        const UI::TreeNodeResult node = UI::DrawTreeNode(
-            &m_treeState,
-            (void*)gameObject->GetUUID(),
-            gameObject->GetName().c_str(),
-            nodeDefinition);
-        
-        if (node.open) {
-            for (size_t i = 0; i < gameObject->GetChildCount(); i++) {
-                RenderEntity(gameObject->GetChild(i));
-            }
-            UI::EndTreeNode();
-        }
     }
-    
+
+    if (node.open) {
+        for (size_t i = 0; i < gameObject->GetChildCount(); i++) {
+            RenderEntity(gameObject->GetChild(i));
+        }
+        UI::EndTreeNode();
+    }
+
     ImGui::PopID();
 }