diff --git a/src/components/common/TreeExplorer.vue b/src/components/common/TreeExplorer.vue
index c7d8c140a..53c5d60fe 100644
--- a/src/components/common/TreeExplorer.vue
+++ b/src/components/common/TreeExplorer.vue
@@ -44,9 +44,10 @@ import { useI18n } from 'vue-i18n'
 
 import TreeExplorerTreeNode from '@/components/common/TreeExplorerTreeNode.vue'
 import { useErrorHandling } from '@/composables/useErrorHandling'
-import type {
-  RenderedTreeExplorerNode,
-  TreeExplorerNode
+import {
+  InjectKeyHandleEditLabelFunction,
+  type RenderedTreeExplorerNode,
+  type TreeExplorerNode
 } from '@/types/treeExplorerTypes'
 
 const expandedKeys = defineModel<Record<string, boolean>>('expandedKeys')
@@ -95,7 +96,8 @@ const fillNodeInfo = (node: TreeExplorerNode): RenderedTreeExplorerNode => {
     children,
     type: node.leaf ? 'node' : 'folder',
     totalLeaves,
-    badgeText: node.getBadgeText ? node.getBadgeText() : null
+    badgeText: node.getBadgeText ? node.getBadgeText() : null,
+    isEditingLabel: node.key === renameEditingNode.value?.key
   }
 }
 const onNodeContentClick = async (
@@ -121,7 +123,22 @@ const extraMenuItems = computed(() => {
     : []
 })
 const renameEditingNode = ref<RenderedTreeExplorerNode | null>(null)
-provide('renameEditingNode', renameEditingNode)
+const errorHandling = useErrorHandling()
+const handleNodeLabelEdit = async (
+  node: RenderedTreeExplorerNode,
+  newName: string
+) => {
+  await errorHandling.wrapWithErrorHandlingAsync(
+    async () => {
+      await node.handleRename(newName)
+    },
+    node.handleError,
+    () => {
+      renameEditingNode.value = null
+    }
+  )()
+}
+provide(InjectKeyHandleEditLabelFunction, handleNodeLabelEdit)
 
 const { t } = useI18n()
 const renameCommand = (node: RenderedTreeExplorerNode) => {
@@ -163,7 +180,6 @@ const handleContextMenu = (e: MouseEvent, node: RenderedTreeExplorerNode) => {
   }
 }
 
-const errorHandling = useErrorHandling()
 const wrapCommandWithErrorHandler = (
   command: (event: MenuItemCommandEvent) => void,
   { isAsync = false }: { isAsync: boolean }
diff --git a/src/components/common/TreeExplorerTreeNode.vue b/src/components/common/TreeExplorerTreeNode.vue
index 50bcdd925..4da9a0d34 100644
--- a/src/components/common/TreeExplorerTreeNode.vue
+++ b/src/components/common/TreeExplorerTreeNode.vue
@@ -38,18 +38,17 @@
 <script setup lang="ts">
 import { setCustomNativeDragPreview } from '@atlaskit/pragmatic-drag-and-drop/element/set-custom-native-drag-preview'
 import Badge from 'primevue/badge'
-import { Ref, computed, inject, ref } from 'vue'
+import { computed, inject, ref } from 'vue'
 
 import EditableText from '@/components/common/EditableText.vue'
-import { useErrorHandling } from '@/composables/useErrorHandling'
 import {
   usePragmaticDraggable,
   usePragmaticDroppable
 } from '@/composables/usePragmaticDragAndDrop'
-import type {
-  RenderedTreeExplorerNode,
-  TreeExplorerDragAndDropData,
-  TreeExplorerNode
+import {
+  InjectKeyHandleEditLabelFunction,
+  type RenderedTreeExplorerNode,
+  type TreeExplorerDragAndDropData
 } from '@/types/treeExplorerTypes'
 
 const props = defineProps<{
@@ -77,22 +76,12 @@ const nodeBadgeText = computed<string>(() => {
 })
 const showNodeBadgeText = computed<boolean>(() => nodeBadgeText.value !== '')
 
-const labelEditable = computed<boolean>(() => !!props.node.handleRename)
-const renameEditingNode =
-  inject<Ref<TreeExplorerNode | null>>('renameEditingNode')
-const isEditing = computed(
-  () => labelEditable.value && renameEditingNode.value?.key === props.node.key
-)
-const errorHandling = useErrorHandling()
-const handleRename = errorHandling.wrapWithErrorHandlingAsync(
-  async (newName: string) => {
-    await props.node.handleRename(newName)
-  },
-  props.node.handleError,
-  () => {
-    renameEditingNode.value = null
-  }
-)
+const isEditing = computed<boolean>(() => props.node.isEditingLabel)
+const handleEditLabel = inject(InjectKeyHandleEditLabelFunction)
+const handleRename = (newName: string) => {
+  handleEditLabel(props.node, newName)
+}
+
 const container = ref<HTMLElement | null>(null)
 const canDrop = ref(false)
 
diff --git a/src/components/common/__tests__/TreeExplorerTreeNode.spec.ts b/src/components/common/__tests__/TreeExplorerTreeNode.spec.ts
index 4bc95000d..eb51aa961 100644
--- a/src/components/common/__tests__/TreeExplorerTreeNode.spec.ts
+++ b/src/components/common/__tests__/TreeExplorerTreeNode.spec.ts
@@ -10,8 +10,10 @@ import { createI18n } from 'vue-i18n'
 
 import EditableText from '@/components/common/EditableText.vue'
 import TreeExplorerTreeNode from '@/components/common/TreeExplorerTreeNode.vue'
-import { useToastStore } from '@/stores/toastStore'
-import { RenderedTreeExplorerNode } from '@/types/treeExplorerTypes'
+import {
+  InjectKeyHandleEditLabelFunction,
+  RenderedTreeExplorerNode
+} from '@/types/treeExplorerTypes'
 
 // Create a mock i18n instance
 const i18n = createI18n({
@@ -47,7 +49,6 @@ describe('TreeExplorerTreeNode', () => {
       props: { node: mockNode },
       global: {
         components: { EditableText, Badge },
-        provide: { renameEditingNode: { value: null } },
         plugins: [createTestingPinia(), i18n]
       }
     })
@@ -63,10 +64,14 @@ describe('TreeExplorerTreeNode', () => {
 
   it('makes node label editable when renamingEditingNode matches', async () => {
     const wrapper = mount(TreeExplorerTreeNode, {
-      props: { node: mockNode },
+      props: {
+        node: {
+          ...mockNode,
+          isEditingLabel: true
+        }
+      },
       global: {
         components: { EditableText, Badge, InputText },
-        provide: { renameEditingNode: { value: { key: '1' } } },
         plugins: [createTestingPinia(), i18n, PrimeVue]
       }
     })
@@ -75,62 +80,25 @@ describe('TreeExplorerTreeNode', () => {
     expect(editableText.props('isEditing')).toBe(true)
   })
 
-  it('triggers handleRename callback when editing is finished', async () => {
-    const handleRenameMock = vi.fn()
-    const nodeWithMockRename = {
-      ...mockNode,
-      handleRename: handleRenameMock
-    }
+  it('triggers handleEditLabel callback when editing is finished', async () => {
+    const handleEditLabelMock = vi.fn()
 
     const wrapper = mount(TreeExplorerTreeNode, {
-      props: { node: nodeWithMockRename },
+      props: {
+        node: {
+          ...mockNode,
+          isEditingLabel: true
+        }
+      },
       global: {
         components: { EditableText, Badge, InputText },
-        provide: { renameEditingNode: { value: { key: '1' } } },
+        provide: { [InjectKeyHandleEditLabelFunction]: handleEditLabelMock },
         plugins: [createTestingPinia(), i18n, PrimeVue]
       }
     })
 
     const editableText = wrapper.findComponent(EditableText)
     editableText.vm.$emit('edit', 'New Node Name')
-    expect(handleRenameMock).toHaveBeenCalledOnce()
-  })
-
-  it('shows error toast when handleRename promise rejects', async () => {
-    const handleRenameMock = vi
-      .fn()
-      .mockRejectedValue(new Error('Rename failed'))
-    const nodeWithMockRename = {
-      ...mockNode,
-      handleRename: handleRenameMock
-    }
-
-    const wrapper = mount(TreeExplorerTreeNode, {
-      props: { node: nodeWithMockRename },
-      global: {
-        components: { EditableText, Badge, InputText },
-        provide: { renameEditingNode: { value: { key: '1' } } },
-        plugins: [createTestingPinia(), i18n, PrimeVue]
-      }
-    })
-
-    const toastStore = useToastStore()
-    const addToastSpy = vi.spyOn(toastStore, 'add')
-
-    const editableText = wrapper.findComponent(EditableText)
-    editableText.vm.$emit('edit', 'New Node Name')
-
-    // Wait for the promise to reject and the toast to be added
-    vi.runAllTimers()
-
-    // Wait for any pending promises to resolve
-    await new Promise(process.nextTick)
-
-    expect(handleRenameMock).toHaveBeenCalledOnce()
-    expect(addToastSpy).toHaveBeenCalledWith({
-      severity: 'error',
-      summary: 'Error',
-      detail: 'Rename failed'
-    })
+    expect(handleEditLabelMock).toHaveBeenCalledOnce()
   })
 })
diff --git a/src/types/treeExplorerTypes.ts b/src/types/treeExplorerTypes.ts
index ee7a7b504..cbbe2acdc 100644
--- a/src/types/treeExplorerTypes.ts
+++ b/src/types/treeExplorerTypes.ts
@@ -1,4 +1,5 @@
 import type { MenuItem } from 'primevue/menuitem'
+import type { InjectionKey } from 'vue'
 
 export interface TreeExplorerNode<T = any> {
   key: string
@@ -58,9 +59,15 @@ export interface RenderedTreeExplorerNode<T = any> extends TreeExplorerNode<T> {
   totalLeaves: number
   /** Text to display on the leaf-count badge. Empty string means no badge. */
   badgeText?: string
+  /** Whether the node label is currently being edited */
+  isEditingLabel?: boolean
 }
 
 export type TreeExplorerDragAndDropData<T = any> = {
   type: 'tree-explorer-node'
   data: RenderedTreeExplorerNode<T>
 }
+
+export const InjectKeyHandleEditLabelFunction: InjectionKey<
+  (node: RenderedTreeExplorerNode, newName: string) => void
+> = Symbol()