diff --git a/apps/builder/app/builder/shared/tree/index.tsx b/apps/builder/app/builder/shared/tree/index.tsx
index bf3760c4f6..5ee06ab54f 100644
--- a/apps/builder/app/builder/shared/tree/index.tsx
+++ b/apps/builder/app/builder/shared/tree/index.tsx
@@ -88,7 +88,7 @@ export const InstanceTree = (
       const isEditing = props.itemData.id === editingItemId;
 
       return (
-        <TreeItemBody {...props} selectionEvent="focus" isEditing={isEditing}>
+        <TreeItemBody {...props} selectionEvent="focus">
           <TreeItem
             isEditable={true}
             isEditing={isEditing}
@@ -146,7 +146,13 @@ const TreeItem = ({
   const { ref, handlers } = useContentEditable({
     isEditable,
     isEditing,
-    onChangeValue,
+    onChangeValue: (value: string) => {
+      onChangeValue(value);
+      const button = ref.current?.closest(
+        "[data-item-button-id]"
+      ) as HTMLElement;
+      button?.focus();
+    },
     onChangeEditing,
   });
 
diff --git a/packages/design-system/src/components/tree/tree-node.tsx b/packages/design-system/src/components/tree/tree-node.tsx
index f5c9d27ab4..fcac94c039 100644
--- a/packages/design-system/src/components/tree/tree-node.tsx
+++ b/packages/design-system/src/components/tree/tree-node.tsx
@@ -263,14 +263,12 @@ export const TreeItemBody = <Data extends { id: string }>({
   forceFocus = false,
   selectionEvent = "click",
   onToggle,
-  isEditing = false,
 }: TreeItemRenderProps<Data> & {
   children: React.ReactNode;
   suffix?: React.ReactNode;
   suffixWidth?: string;
   alwaysShowSuffix?: boolean;
   forceFocus?: boolean;
-  isEditing?: boolean;
   selectionEvent?: "click" | "focus";
 }) => {
   const [focusTarget, setFocusTarget] = useState<