diff --git a/backend/cmd/cluster.go b/backend/cmd/cluster.go
index f395aba5ae..92fec12c9c 100644
--- a/backend/cmd/cluster.go
+++ b/backend/cmd/cluster.go
@@ -33,4 +33,5 @@ type KubeconfigRequest struct {
 type RenameClusterRequest struct {
 	NewClusterName string `json:"newClusterName"`
 	Source         string `json:"source"`
+	Stateless      bool   `json:"stateless"`
 }
diff --git a/backend/cmd/headlamp.go b/backend/cmd/headlamp.go
index a2629511c0..63555c25ed 100644
--- a/backend/cmd/headlamp.go
+++ b/backend/cmd/headlamp.go
@@ -1066,6 +1066,60 @@ func (c *HeadlampConfig) getClusters() []Cluster {
 	return clusters
 }
 
+// parseCustomNameClusters parses the custom name clusters from the kubeconfig.
+func parseCustomNameClusters(contexts []kubeconfig.Context) ([]Cluster, []error) {
+	clusters := []Cluster{}
+
+	var setupErrors []error
+
+	for _, context := range contexts {
+		context := context
+
+		info := context.KubeContext.Extensions["headlamp_info"]
+		if info != nil {
+			// Convert the runtime.Unknown object to a byte slice
+			unknownBytes, err := json.Marshal(info)
+			if err != nil {
+				logger.Log(logger.LevelError, map[string]string{"cluster": context.Name},
+					err, "unmarshaling context data")
+
+				setupErrors = append(setupErrors, err)
+
+				continue
+			}
+
+			// Now, decode the byte slice into CustomObject
+			var customObj kubeconfig.CustomObject
+
+			err = json.Unmarshal(unknownBytes, &customObj)
+			if err != nil {
+				logger.Log(logger.LevelError, map[string]string{"cluster": context.Name},
+					err, "unmarshaling into CustomObject")
+
+				setupErrors = append(setupErrors, err)
+
+				continue
+			}
+
+			// Check if the CustomName field is present
+			if customObj.CustomName != "" {
+				context.Name = customObj.CustomName
+			}
+		}
+
+		clusters = append(clusters, Cluster{
+			Name:     context.Name,
+			Server:   context.Cluster.Server,
+			AuthType: context.AuthType(),
+			Metadata: map[string]interface{}{
+				"source": "dynamic_cluster",
+			},
+		})
+	}
+
+	return clusters, setupErrors
+}
+
 // parseClusterFromKubeConfig parses the kubeconfig and returns a list of contexts and errors.
 func parseClusterFromKubeConfig(kubeConfigs []string) ([]Cluster, []error) {
 	clusters := []Cluster{}
@@ -1099,17 +1153,7 @@ func parseClusterFromKubeConfig(kubeConfigs []string) ([]Cluster, []error) {
 			continue
 		}
 
-		for _, context := range contexts {
-			context := context
-			clusters = append(clusters, Cluster{
-				Name:     context.Name,
-				Server:   context.Cluster.Server,
-				AuthType: context.AuthType(),
-				Metadata: map[string]interface{}{
-					"source": "dynamic_cluster",
-				},
-			})
-		}
+		clusters, setupErrors = parseCustomNameClusters(contexts)
 	}
 
 	if len(setupErrors) > 0 {
@@ -1299,15 +1343,9 @@ func (c *HeadlampConfig) getKubeConfigPath(source string) (string, error) {
 	return defaultKubeConfigPersistenceFile()
 }
 
-// Handler for renaming a cluster.
-//
-//nolint:funlen
-func (c *HeadlampConfig) renameCluster(w http.ResponseWriter, r *http.Request) {
-	vars := mux.Vars(r)
-	clusterName := vars["name"]
-	// Parse request body
-	var reqBody RenameClusterRequest
-	if err := json.NewDecoder(r.Body).Decode(&reqBody); err != nil {
+// Handler for renaming a stateless cluster.
+func (c *HeadlampConfig) handleStatelessClusterRename(w http.ResponseWriter, r *http.Request, clusterName string) {
+	if err := c.kubeConfigStore.RemoveContext(clusterName); err != nil {
 		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
 			err, "decoding request body")
 		http.Error(w, err.Error(), http.StatusBadRequest)
@@ -1315,97 +1353,51 @@ func (c *HeadlampConfig) renameCluster(w http.ResponseWriter, r *http.Request) {
 		return
 	}
 
-	// Get path of kubeconfig from source
-	path, err := c.getKubeConfigPath(reqBody.Source)
-	if err != nil {
-		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
-			err, "getting kubeconfig file")
-		http.Error(w, "getting kubeconfig file", http.StatusInternalServerError)
-
-		return
-	}
-
-	// Load kubeconfig file
-	config, err := clientcmd.LoadFromFile(path)
-	if err != nil {
-		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
-			err, "loading kubeconfig file")
-		http.Error(w, "loading kubeconfig file", http.StatusInternalServerError)
-
-		return
-	}
-
-	// Find the context with the given cluster name
-	contextName := clusterName
-
-	// Iterate over the contexts to find the context with the given cluster name
-	for k, v := range config.Contexts {
-		info := v.Extensions["headlamp_info"]
-		if info != nil {
-			// Convert the runtime.Unknown object to a byte slice
-			unknownBytes, err := json.Marshal(info)
-			if err != nil {
-				logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
-					err, "unmarshaling context data")
-				http.Error(w, "unmarshaling context data", http.StatusInternalServerError)
-
-				return
-			}
-
-			// Now, decode the byte slice into CustomObject
-			var customObj kubeconfig.CustomObject
-
-			err = json.Unmarshal(unknownBytes, &customObj)
-			if err != nil {
-				logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
-					err, "unmarshaling into CustomObject")
-				http.Error(w, "unmarshaling into CustomObject", http.StatusInternalServerError)
-
-				return
-			}
+	w.WriteHeader(http.StatusCreated)
+	c.getConfig(w, r)
+}
 
-			// Check if the CustomName field matches the cluster name
-			if customObj.CustomName != "" && customObj.CustomName == clusterName {
-				contextName = k
-			}
-		}
-	}
+// customNameToExtenstions writes the custom name to the Extensions map in the kubeconfig.
+func customNameToExtenstions(config *api.Config, contextName, newClusterName, path string) error {
+	var err error
 
 	// Get the context with the given cluster name
 	contextConfig, ok := config.Contexts[contextName]
 	if !ok {
-		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
+		logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
 			err, "getting context from kubeconfig")
-		http.Error(w, "getting context from kubeconfig", http.StatusInternalServerError)
 
-		return
+		return err
 	}
 
 	// Create a CustomObject with CustomName field
 	customObj := &kubeconfig.CustomObject{
 		TypeMeta:   v1.TypeMeta{},
 		ObjectMeta: v1.ObjectMeta{},
-		CustomName: reqBody.NewClusterName,
+		CustomName: newClusterName,
 	}
 
 	// Assign the CustomObject to the Extensions map
 	contextConfig.Extensions["headlamp_info"] = customObj
 
 	if err := clientcmd.WriteToFile(*config, path); err != nil {
-		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
+		logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
 			err, "writing kubeconfig file")
-		http.Error(w, "writing kubeconfig file", http.StatusInternalServerError)
 
-		return
+		return err
 	}
 
+	return nil
+}
+
+// updateCustomContextToCache updates the custom context to the cache.
+func (c *HeadlampConfig) updateCustomContextToCache(config *api.Config, clusterName string) []error {
 	contexts, errs := kubeconfig.LoadContextsFromAPIConfig(config, false)
 	if len(contexts) == 0 {
-		logger.Log(logger.LevelError, nil, errors.New("no contexts found in kubeconfig"),
-			"getting contexts from kubeconfig")
-		http.Error(w, "getting contexts from kubeconfig", http.StatusBadRequest)
+		logger.Log(logger.LevelError, nil, errs, "no contexts found in kubeconfig")
+		errs = append(errs, errors.New("no contexts found in kubeconfig"))
 
-		return
+		return errs
 	}
 
 	for _, context := range contexts {
@@ -1413,19 +1405,102 @@ func (c *HeadlampConfig) renameCluster(w http.ResponseWriter, r *http.Request) {
 
 		// Remove the old context from the store
 		if err := c.kubeConfigStore.RemoveContext(clusterName); err != nil {
+			logger.Log(logger.LevelError, nil, err, "Removing context from the store")
 			errs = append(errs, err)
 		}
 
 		// Add the new context to the store
-		if err = c.kubeConfigStore.AddContext(&context); err != nil {
+		if err := c.kubeConfigStore.AddContext(&context); err != nil {
+			logger.Log(logger.LevelError, nil, err, "Adding context to the store")
 			errs = append(errs, err)
 		}
 	}
 
 	if len(errs) > 0 {
-		logger.Log(logger.LevelError, nil, errs, "setting up contexts from kubeconfig")
-		http.Error(w, "setting up contexts from kubeconfig", http.StatusBadRequest)
+		return errs
+	}
+
+	return nil
+}
+
+// getPathAndLoadKubeconfig gets the path of the kubeconfig file and loads it.
+func (c *HeadlampConfig) getPathAndLoadKubeconfig(source, clusterName string) (string, *api.Config, error) {
+	// Get path of kubeconfig from source
+	path, err := c.getKubeConfigPath(source)
+	if err != nil {
+		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
+			err, "getting kubeconfig file")
+
+		return "", nil, err
+	}
+
+	// Load kubeconfig file
+	config, err := clientcmd.LoadFromFile(path)
+	if err != nil {
+		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
+			err, "loading kubeconfig file")
+
+		return "", nil, err
+	}
+
+	return path, config, nil
+}
 
+// Handler for renaming a cluster.
+func (c *HeadlampConfig) renameCluster(w http.ResponseWriter, r *http.Request) {
+	vars := mux.Vars(r)
+	clusterName := vars["name"]
+	// Parse request body.
+	var reqBody RenameClusterRequest
+	if err := json.NewDecoder(r.Body).Decode(&reqBody); err != nil {
+		logger.Log(logger.LevelError, map[string]string{"cluster": clusterName},
+			err, "decoding request body")
+		http.Error(w, err.Error(), http.StatusBadRequest)
+
+		return
+	}
+
+	if reqBody.Stateless {
+		// For stateless clusters we just need to remove cluster from cache
+		c.handleStatelessClusterRename(w, r, clusterName)
+	}
+
+	// Get path of kubeconfig from source
+	path, config, err := c.getPathAndLoadKubeconfig(reqBody.Source, clusterName)
+	if err != nil {
+		http.Error(w, "getting kubeconfig file", http.StatusInternalServerError)
+		return
+	}
+
+	// Find the context with the given cluster name
+	contextName := clusterName
+
+	// Iterate over the contexts to find the context with the given cluster name
+	for k, v := range config.Contexts {
+		info := v.Extensions["headlamp_info"]
+		if info != nil {
+			customObj, err := MarshalCustomObject(info, contextName)
+			if err != nil {
+				logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
+					err, "marshaling custom object")
+
+				return
+			}
+
+			// Check if the CustomName field matches the cluster name
+			if customObj.CustomName != "" && customObj.CustomName == clusterName {
+				contextName = k
+			}
+		}
+	}
+
+	if err := customNameToExtenstions(config, contextName, reqBody.NewClusterName, path); err != nil {
+		http.Error(w, "writing custom extension to kubeconfig", http.StatusInternalServerError)
+		return
+	}
+
+	if errs := c.updateCustomContextToCache(config, clusterName); len(errs) > 0 {
+		http.Error(w, "setting up contexts from kubeconfig", http.StatusBadRequest)
 		return
 	}
 
diff --git a/backend/cmd/stateless.go b/backend/cmd/stateless.go
index 448263a02b..7d2d7615d9 100644
--- a/backend/cmd/stateless.go
+++ b/backend/cmd/stateless.go
@@ -9,8 +9,60 @@ import (
 	"github.com/gorilla/mux"
 	"github.com/headlamp-k8s/headlamp/backend/pkg/kubeconfig"
 	"github.com/headlamp-k8s/headlamp/backend/pkg/logger"
+	"k8s.io/apimachinery/pkg/runtime"
 )
 
+// MarshalCustomObject marshals the runtime.Unknown object into a CustomObject.
+func MarshalCustomObject(info runtime.Object, contextName string) (kubeconfig.CustomObject, error) {
+	// Convert the runtime.Unknown object to a byte slice
+	unknownBytes, err := json.Marshal(info)
+	if err != nil {
+		logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
+			err, "unmarshaling context data")
+
+		return kubeconfig.CustomObject{}, err
+	}
+
+	// Now, decode the byte slice into CustomObject
+	var customObj kubeconfig.CustomObject
+
+	err = json.Unmarshal(unknownBytes, &customObj)
+	if err != nil {
+		logger.Log(logger.LevelError, map[string]string{"cluster": contextName},
+			err, "unmarshaling into CustomObject")
+
+		return kubeconfig.CustomObject{}, err
+	}
+
+	return customObj, nil
+}
+
+// setKeyInCache sets the context in the cache with the given key.
+func (c *HeadlampConfig) setKeyInCache(key string, context kubeconfig.Context) error {
+	// check context is present
+	_, err := c.kubeConfigStore.GetContext(key)
+	if err != nil && err.Error() == "key not found" {
+		// To ensure stateless clusters are not visible to other users, they are marked as internal clusters.
+		// They are stored in the proxy cache and accessed through the /config endpoint.
+		context.Internal = true
+		if err = c.kubeConfigStore.AddContextWithKeyAndTTL(&context, key, ContextCacheTTL); err != nil {
+			logger.Log(logger.LevelError, map[string]string{"key": key},
+				err, "adding context to cache")
+
+			return err
+		}
+	} else {
+		if err = c.kubeConfigStore.UpdateTTL(key, ContextUpdateChacheTTL); err != nil {
+			logger.Log(logger.LevelError, map[string]string{"key": key},
+				err, "updating context ttl")
+
+			return err
+		}
+	}
+
+	return nil
+}
+
 // Handles stateless cluster requests if kubeconfig is set and dynamic clusters are enabled.
 // It returns context key which is used to store the context in the cache.
 func (c *HeadlampConfig) handleStatelessReq(r *http.Request, kubeConfig string) (string, error) {
@@ -39,30 +91,28 @@ func (c *HeadlampConfig) handleStatelessReq(r *http.Request, kubeConfig string)
 	for _, context := range contexts {
 		context := context
 
-		if context.Name != clusterName {
-			contextKey = clusterName
-			continue
-		}
-
-		// check context is present
-		_, err := c.kubeConfigStore.GetContext(key)
-		if err != nil && err.Error() == "key not found" {
-			// To ensure stateless clusters are not visible to other users, they are marked as internal clusters.
-			// They are stored in the proxy cache and accessed through the /config endpoint.
-			context.Internal = true
-			if err = c.kubeConfigStore.AddContextWithKeyAndTTL(&context, key, ContextCacheTTL); err != nil {
-				logger.Log(logger.LevelError, map[string]string{"key": key},
-					err, "adding context to cache")
+		info := context.KubeContext.Extensions["headlamp_info"]
+		if info != nil {
+			customObj, err := MarshalCustomObject(info, context.Name)
+			if err != nil {
+				logger.Log(logger.LevelError, map[string]string{"cluster": context.Name},
+					err, "marshaling custom object")
 
 				return "", err
 			}
-		} else {
-			if err = c.kubeConfigStore.UpdateTTL(key, ContextUpdateChacheTTL); err != nil {
-				logger.Log(logger.LevelError, map[string]string{"key": key},
-					err, "updating context ttl")
 
-				return "", err
+			// Check if the CustomName field is present
+			if customObj.CustomName != "" {
+				key = customObj.CustomName + userID
 			}
+		} else if context.Name != clusterName {
+			contextKey = clusterName
+			continue
+		}
+
+		// check context is present
+		if err := c.setKeyInCache(key, context); err != nil {
+			return "", err
 		}
 
 		contextKey = key
diff --git a/frontend/src/components/App/Settings/SettingsCluster.tsx b/frontend/src/components/App/Settings/SettingsCluster.tsx
index a10fbc7817..21f0a59366 100644
--- a/frontend/src/components/App/Settings/SettingsCluster.tsx
+++ b/frontend/src/components/App/Settings/SettingsCluster.tsx
@@ -7,8 +7,9 @@ import { useDispatch } from 'react-redux';
 import { useHistory } from 'react-router-dom';
 import helpers, { ClusterSettings } from '../../../helpers';
 import { useCluster, useClustersConf } from '../../../lib/k8s';
-import { deleteCluster, renameCluster } from '../../../lib/k8s/apiProxy';
-import { setConfig } from '../../../redux/configSlice';
+import { deleteCluster, parseKubeConfig, renameCluster } from '../../../lib/k8s/apiProxy';
+import { setConfig, setStatelessConfig } from '../../../redux/configSlice';
+import { findKubeconfigByClusterName, updateStatelessClusterKubeconfig } from '../../../stateless/';
 import { Link, NameValueTable, SectionBox } from '../../common';
 import ConfirmButton from '../../common/ConfirmButton';
 
@@ -57,15 +58,31 @@ export default function SettingsCluster() {
     try {
       storeNewClusterName(newClusterName);
       renameCluster(cluster || '', newClusterName, source)
-        .then(config => {
-          dispatch(setConfig(config));
+        .then(async config => {
+          if (cluster) {
+            const kubeconfig = await findKubeconfigByClusterName(cluster);
+            if (kubeconfig !== null) {
+              await updateStatelessClusterKubeconfig(kubeconfig, newClusterName, cluster);
+              // Make another request for updated kubeconfig
+              const updatedKubeconfig = await findKubeconfigByClusterName(cluster);
+              if (updatedKubeconfig !== null) {
+                parseKubeConfig({ kubeconfig: updatedKubeconfig })
+                  .then((config: any) => {
+                    dispatch(setStatelessConfig(config));
+                  })
+                  .catch((err: Error) => {
+                    console.error('Error updating cluster name:', err.message);
+                  });
+              }
+            } else {
+              dispatch(setConfig(config));
+            }
+          }
           history.push('/');
           window.location.reload();
         })
         .catch((err: Error) => {
-          if (err.message === 'Not Found') {
-            // TODO: create notification with error message
-          }
+          console.error('Error updating cluster name:', err.message);
         });
     } catch (error) {
       console.error('Error updating cluster name:', error);
@@ -372,7 +389,7 @@ export default function SettingsCluster() {
                           }}
                           confirmTitle={t('translation|Change name')}
                           confirmDescription={t(
-                            'translation|This will add an extension field in your kubeconfig file for "{{ clusterName }}. Are you sure"?',
+                            'translation|Are you sure you want to change the name for "{{ clusterName }}"?',
                             { clusterName: cluster }
                           )}
                           disabled={!newClusterName || !isValidCurrentName}
diff --git a/frontend/src/i18n/locales/de/translation.json b/frontend/src/i18n/locales/de/translation.json
index e9db6d77d7..447079d686 100644
--- a/frontend/src/i18n/locales/de/translation.json
+++ b/frontend/src/i18n/locales/de/translation.json
@@ -71,7 +71,7 @@
   "Current name": "",
   "The current name of cluster. You can define custom modified name.": "",
   "Change name": "",
-  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "",
+  "Are you sure you want to change the name for \"{{ clusterName }}\"?": "",
   "Remove Cluster": "Cluster entfernen",
   "Server": "Server",
   "light theme": "helles Design",
diff --git a/frontend/src/i18n/locales/de/translation_old.json b/frontend/src/i18n/locales/de/translation_old.json
new file mode 100644
index 0000000000..a70d69de88
--- /dev/null
+++ b/frontend/src/i18n/locales/de/translation_old.json
@@ -0,0 +1,3 @@
+{
+  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": ""
+}
diff --git a/frontend/src/i18n/locales/en/translation.json b/frontend/src/i18n/locales/en/translation.json
index c52469b937..4abfa03dbf 100644
--- a/frontend/src/i18n/locales/en/translation.json
+++ b/frontend/src/i18n/locales/en/translation.json
@@ -71,7 +71,7 @@
   "Current name": "Current name",
   "The current name of cluster. You can define custom modified name.": "The current name of cluster. You can define custom modified name.",
   "Change name": "Change name",
-  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?",
+  "Are you sure you want to change the name for \"{{ clusterName }}\"?": "Are you sure you want to change the name for \"{{ clusterName }}\"?",
   "Remove Cluster": "Remove Cluster",
   "Server": "Server",
   "light theme": "light theme",
diff --git a/frontend/src/i18n/locales/en/translation_old.json b/frontend/src/i18n/locales/en/translation_old.json
new file mode 100644
index 0000000000..c27703c67d
--- /dev/null
+++ b/frontend/src/i18n/locales/en/translation_old.json
@@ -0,0 +1,3 @@
+{
+  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?"
+}
diff --git a/frontend/src/i18n/locales/es/translation.json b/frontend/src/i18n/locales/es/translation.json
index 2f87cd7fc9..a4c0a6e57d 100644
--- a/frontend/src/i18n/locales/es/translation.json
+++ b/frontend/src/i18n/locales/es/translation.json
@@ -71,7 +71,7 @@
   "Current name": "",
   "The current name of cluster. You can define custom modified name.": "",
   "Change name": "",
-  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "",
+  "Are you sure you want to change the name for \"{{ clusterName }}\"?": "",
   "Remove Cluster": "Eliminar cluster",
   "Server": "Servidor",
   "light theme": "tema claro",
diff --git a/frontend/src/i18n/locales/es/translation_old.json b/frontend/src/i18n/locales/es/translation_old.json
new file mode 100644
index 0000000000..a70d69de88
--- /dev/null
+++ b/frontend/src/i18n/locales/es/translation_old.json
@@ -0,0 +1,3 @@
+{
+  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": ""
+}
diff --git a/frontend/src/i18n/locales/fr/translation.json b/frontend/src/i18n/locales/fr/translation.json
index 17463431bc..d04bbd7fe5 100644
--- a/frontend/src/i18n/locales/fr/translation.json
+++ b/frontend/src/i18n/locales/fr/translation.json
@@ -71,7 +71,7 @@
   "Current name": "",
   "The current name of cluster. You can define custom modified name.": "",
   "Change name": "",
-  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "",
+  "Are you sure you want to change the name for \"{{ clusterName }}\"?": "",
   "Remove Cluster": "Supprimer le cluster",
   "Server": "Serveur",
   "light theme": "thème clair",
diff --git a/frontend/src/i18n/locales/fr/translation_old.json b/frontend/src/i18n/locales/fr/translation_old.json
new file mode 100644
index 0000000000..a70d69de88
--- /dev/null
+++ b/frontend/src/i18n/locales/fr/translation_old.json
@@ -0,0 +1,3 @@
+{
+  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": ""
+}
diff --git a/frontend/src/i18n/locales/pt/translation.json b/frontend/src/i18n/locales/pt/translation.json
index acbd43a7ea..45fe21e5cd 100644
--- a/frontend/src/i18n/locales/pt/translation.json
+++ b/frontend/src/i18n/locales/pt/translation.json
@@ -71,7 +71,7 @@
   "Current name": "",
   "The current name of cluster. You can define custom modified name.": "",
   "Change name": "",
-  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": "",
+  "Are you sure you want to change the name for \"{{ clusterName }}\"?": "",
   "Remove Cluster": "Remover Cluster",
   "Server": "Servidor",
   "light theme": "tema claro",
diff --git a/frontend/src/i18n/locales/pt/translation_old.json b/frontend/src/i18n/locales/pt/translation_old.json
new file mode 100644
index 0000000000..a70d69de88
--- /dev/null
+++ b/frontend/src/i18n/locales/pt/translation_old.json
@@ -0,0 +1,3 @@
+{
+  "This will add an extension field in your kubeconfig file for \"{{ clusterName }}. Are you sure\"?": ""
+}
diff --git a/frontend/src/lib/k8s/apiProxy.ts b/frontend/src/lib/k8s/apiProxy.ts
index 3628d74341..90417694bb 100644
--- a/frontend/src/lib/k8s/apiProxy.ts
+++ b/frontend/src/lib/k8s/apiProxy.ts
@@ -1634,26 +1634,16 @@ export async function testClusterHealth(cluster?: string) {
 
 export async function setCluster(clusterReq: ClusterRequest) {
   const kubeconfig = clusterReq.kubeconfig;
+  let requestURL = '/cluster';
 
   if (kubeconfig) {
     await storeStatelessClusterKubeconfig(kubeconfig);
     // We just send parsed kubeconfig from the backend to the frontend.
-    return request(
-      '/parseKubeConfig',
-      {
-        method: 'POST',
-        body: JSON.stringify(clusterReq),
-        headers: {
-          ...JSON_HEADERS,
-        },
-      },
-      false,
-      false
-    );
+    requestURL = '/parseKubeConfig';
   }
 
   return request(
-    '/cluster',
+    requestURL,
     {
       method: 'POST',
       body: JSON.stringify(clusterReq),
@@ -1693,11 +1683,11 @@ export async function deleteCluster(cluster: string) {
  * @param cluster
  */
 export async function renameCluster(cluster: string, newClusterName: string, source: string) {
+  let stateless = false;
   if (cluster) {
     const kubeconfig = await findKubeconfigByClusterName(cluster);
     if (kubeconfig !== null) {
-      // @TODO: Update kubeconfig in indexDB
-      return window.location.reload();
+      stateless = true;
     }
   }
 
@@ -1706,13 +1696,40 @@ export async function renameCluster(cluster: string, newClusterName: string, sou
     {
       method: 'PUT',
       headers: { ...getHeadlampAPIHeaders() },
-      body: JSON.stringify({ newClusterName, source }),
+      body: JSON.stringify({ newClusterName, source, stateless }),
     },
     false,
     false
   );
 }
 
+/**
+ * parseKubeConfig sends call to backend to parse kubeconfig and send back
+ * the parsed clusters and contexts.
+ * @param clusterReq - The cluster request object.
+ */
+export async function parseKubeConfig(clusterReq: ClusterRequest) {
+  const kubeconfig = clusterReq.kubeconfig;
+
+  if (kubeconfig) {
+    return request(
+      '/parseKubeConfig',
+      {
+        method: 'POST',
+        body: JSON.stringify(clusterReq),
+        headers: {
+          ...JSON_HEADERS,
+          ...getHeadlampAPIHeaders(),
+        },
+      },
+      false,
+      false
+    );
+  }
+
+  return null;
+}
+
 // @todo: Move startPortForward, stopPortForward, and getPortForwardStatus to a portForward.ts
 
 // @todo: the return type is missing for the following functions.
diff --git a/frontend/src/lib/k8s/kubeconfig.ts b/frontend/src/lib/k8s/kubeconfig.ts
index ded95adc59..29163d7522 100644
--- a/frontend/src/lib/k8s/kubeconfig.ts
+++ b/frontend/src/lib/k8s/kubeconfig.ts
@@ -143,7 +143,10 @@ export interface KubeconfigObject {
         /** name is the nickname of the extension. */
         name: string;
         /** Extension holds the extension information */
-        extension: {};
+        extension: {
+          /** customName is the custom name for the cluster. */
+          customName?: string;
+        };
       }>;
     };
   }>;
diff --git a/frontend/src/stateless/index.ts b/frontend/src/stateless/index.ts
index 9d9da9efe5..360834e4eb 100644
--- a/frontend/src/stateless/index.ts
+++ b/frontend/src/stateless/index.ts
@@ -262,12 +262,18 @@ export function findKubeconfigByClusterName(clusterName: string): Promise<string
             const kubeconfig = kubeconfigObject.kubeconfig;
 
             const parsedKubeconfig = jsyaml.load(atob(kubeconfig)) as KubeconfigObject;
+            // Check for "headlamp_info" in extensions
+            const matchingContext = parsedKubeconfig.contexts.find(
+              context =>
+                context.context.extensions?.find(extension => extension.name === 'headlamp_info')
+                  ?.extension.customName === clusterName
+            );
 
             const matchingKubeconfig = parsedKubeconfig.clusters.find(
               cluster => cluster.name === clusterName
             );
 
-            if (matchingKubeconfig) {
+            if (matchingKubeconfig || matchingContext) {
               resolve(kubeconfig);
             } else {
               cursor.continue();
@@ -489,6 +495,122 @@ export async function deleteClusterKubeconfig(clusterName: string): Promise<stri
   });
 }
 
+/**
+ * Update the kubeconfig context extensions in IndexedDB.
+ * @param kubeconfig - The kubeconfig to store.
+ * @param customName - The custom name for the context extension.
+ * @param clusterName - The name of the cluster to update the kubeconfig context for.
+ * @returns promise that resolves when the kubeconfig is successfully updated and stored.
+ * @throws Error if IndexedDB is not supported.
+ * @throws Error if the kubeconfig is invalid.
+ */
+export function updateStatelessClusterKubeconfig(
+  kubeconfig: string,
+  customName: string,
+  clusterName: string
+): Promise<void> {
+  return new Promise<void>(async (resolve, reject) => {
+    try {
+      const request =
+        process.env.NODE_ENV === 'test'
+          ? indexedDBtest.open('kubeconfigs', 1)
+          : indexedDB.open('kubeconfigs', 1);
+      // Parse the kubeconfig from base64
+      const parsedKubeconfig = jsyaml.load(atob(kubeconfig)) as KubeconfigObject;
+
+      // Find the context with the matching cluster name or custom name in headlamp_info
+      const matchingContext = parsedKubeconfig.contexts.find(
+        context =>
+          context.context.cluster === clusterName ||
+          context.context.extensions?.find(extension => extension.name === 'headlamp_info')
+            ?.extension.customName === clusterName
+      );
+
+      if (matchingContext) {
+        const extensions = matchingContext.context.extensions || [];
+        const headlampExtension = extensions.find(extension => extension.name === 'headlamp_info');
+
+        if (matchingContext.context.cluster === clusterName) {
+          // Push the new extension if the cluster name matches
+          extensions.push({
+            extension: {
+              customName: customName,
+            },
+            name: 'headlamp_info',
+          });
+        } else if (headlampExtension) {
+          // Update the existing extension if found
+          headlampExtension.extension.customName = customName;
+        }
+
+        // Ensure the extensions property is updated
+        matchingContext.context.extensions = extensions;
+      } else {
+        console.error('No context found matching the cluster name:', clusterName);
+        reject('No context found matching the cluster name');
+        return;
+      }
+
+      // Convert the updated kubeconfig back to base64
+      const updatedKubeconfig = btoa(jsyaml.dump(parsedKubeconfig));
+
+      // The onupgradeneeded event is fired when the database is created for the first time.
+      request.onupgradeneeded = handleDatabaseUpgrade;
+      // The onsuccess event is fired when the database is opened.
+      // This event is where you specify the actions to take when the database is opened.
+      request.onsuccess = function handleDatabaseSuccess(event: DatabaseEvent) {
+        const db = event.target.result;
+        if (db) {
+          const transaction = db.transaction(['kubeconfigStore'], 'readwrite');
+          const store = transaction.objectStore('kubeconfigStore');
+
+          // Get the existing kubeconfig entry by clusterName
+          store.openCursor().onsuccess = function getSuccess(event: Event) {
+            const successEvent = event as CursorSuccessEvent;
+            const cursor = successEvent.target?.result;
+            if (cursor) {
+              // Update the kubeconfig entry with the new kubeconfig
+              cursor.value.kubeconfig = updatedKubeconfig;
+              // Put the updated kubeconfig entry back into IndexedDB
+              const putRequest = store.put(cursor.value);
+              // The onsuccess event is fired when the request has succeeded.
+              putRequest.onsuccess = function putSuccess() {
+                console.log('Updated kubeconfig with custom name and stored in IndexedDB');
+                resolve(); // Resolve the promise when the kubeconfig is successfully updated and stored
+              };
+
+              // The onerror event is fired when the request has failed.
+              putRequest.onerror = function putError(event: Event) {
+                const errorEvent = event as DatabaseErrorEvent;
+                console.error(errorEvent.target ? errorEvent.target.error : 'An error occurred');
+                reject(errorEvent.target ? errorEvent.target.error : 'An error occurred');
+              };
+            } else {
+              console.error('No kubeconfig entry found for cluster name:', clusterName);
+              reject('No kubeconfig entry found for cluster name');
+            }
+          };
+
+          store.openCursor().onerror = function getError(event: Event) {
+            const errorEvent = event as DatabaseErrorEvent;
+            console.error(errorEvent.target ? errorEvent.target.error : 'An error occurred');
+            reject(errorEvent.target ? errorEvent.target.error : 'An error occurred');
+          };
+        } else {
+          console.error('Failed to open IndexedDB');
+          reject('Failed to open IndexedDB');
+        }
+      };
+
+      // The onerror event is fired when the database is opened.
+      // This is where you handle errors
+      request.onerror = handleDataBaseError;
+    } catch (error) {
+      reject(error);
+    }
+  });
+}
+
 const exportFunctions = {
   storeStatelessClusterKubeconfig,
   getStatelessClusterKubeConfigs,
@@ -497,6 +619,7 @@ const exportFunctions = {
   processClusterComparison,
   fetchStatelessClusterKubeConfigs,
   deleteClusterKubeconfig,
+  updateStatelessClusterKubeconfig,
 };
 
 export default exportFunctions;