diff --git a/vscode/src/extension.ts b/vscode/src/extension.ts
index ea022727..503b4ebc 100644
--- a/vscode/src/extension.ts
+++ b/vscode/src/extension.ts
@@ -15,7 +15,8 @@ import { activateReporter, reportEvent, analytics } from "./analytics";
 import { showFirstRunPrivacyNotice, showPrivacySettings } from "./privacyNotice";
 
 import { Template, getTemplates, scaffoldTemplate } from "./templateUtils";
-
+import { activateUpdateImportsOnFileMove } from "./updateImportsOnFileMove";
+import { activateUpdateImportsOnFileMove } from "./updateImportsOnFileMove";
 // the application insights key (also known as instrumentation key)
 
 
@@ -29,6 +30,7 @@ let process: execa.ExecaChildProcess | undefined;
 const FLYDE_DEFAULT_SERVER_PORT = 8545;
 
 export function activate(context: vscode.ExtensionContext) {
+    activateUpdateImportsOnFileMove(context);
   // eslint-disable-next-line @typescript-eslint/naming-convention
   const { Uri } = vscode;
   const { fs } = vscode.workspace;
diff --git a/vscode/src/updateImportsOnFileMove.ts b/vscode/src/updateImportsOnFileMove.ts
new file mode 100644
index 00000000..bc25027a
--- /dev/null
+++ b/vscode/src/updateImportsOnFileMove.ts
@@ -0,0 +1,58 @@
+import * as vscode from "vscode";
+import * as path from "path";
+
+export function activateUpdateImportsOnFileMove(context: vscode.ExtensionContext) {
+  const disposable = vscode.workspace.onDidRenameFiles(async (event) => {
+    for (const { oldUri, newUri } of event.files) {
+      if (!oldUri.fsPath.endsWith(".flyde")) continue;
+
+      const flydeFiles = await vscode.workspace.findFiles(
+        "**/*.flyde",
+        "**/node_modules/**"
+      );
+
+      const oldPath = vscode.workspace.asRelativePath(oldUri, false);
+      const newPath = vscode.workspace.asRelativePath(newUri, false);
+      const oldBaseName = path.basename(oldUri.fsPath, ".flyde");
+      const newBaseName = path.basename(newUri.fsPath, ".flyde");
+
+      for (const file of flydeFiles) {
+        if (file.fsPath === newUri.fsPath) continue;
+
+        try {
+          const doc = await vscode.workspace.openTextDocument(file);
+          const text = doc.getText();
+
+          if (text.includes(oldPath) || text.includes(oldBaseName)) {
+            let updatedText = text;
+            updatedText = updatedText.split(oldPath).join(newPath);
+            if (oldBaseName !== newBaseName) {
+              updatedText = updatedText.split(oldBaseName).join(newBaseName);
+            }
+
+            if (updatedText !== text) {
+              const edit = new vscode.WorkspaceEdit();
+              edit.replace(
+                file,
+                new vscode.Range(
+                  new vscode.Position(0, 0),
+                  new vscode.Position(doc.lineCount, 0)
+                ),
+                updatedText
+              );
+              await vscode.workspace.applyEdit(edit);
+              await doc.save();
+              vscode.window.showInformationMessage(
+                `Updated imports in ${path.basename(file.fsPath)} after file move.`
+              );
+            }
+          }
+        } catch (err) {
+          console.error(`Failed to update imports in ${file.fsPath}:`, err);
+        }
+      }
+    }
+  });
+
+  context.subscriptions.push(disposable);
+}