diff --git a/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalLanguageServices.java b/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalLanguageServices.java
index 3e6c740f..d8e4f5ca 100644
--- a/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalLanguageServices.java
+++ b/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalLanguageServices.java
@@ -241,64 +241,21 @@ private ISourceLocation sourceLocationFromUri(String uri) {
         }
     }
 
-    private ISourceLocation findContainingWorkspaceFolder(ISourceLocation loc, List<ISourceLocation> workspaceFolders) {
-        var containingFolder = workspaceFolders.stream()
-            .filter(folderLoc -> URIUtil.isParentOf(folderLoc, loc))
-            .findFirst();
-
-        if (containingFolder.isEmpty()) {
-            throw new RuntimeException(String.format("Cannot automatically change uses of %s, since it is outside the current workspace.", loc));
-        }
-        return containingFolder.get();
-    }
-
-    private ISet qualfiedNameChangesFromRenames(List<FileRename> renames, Set<ISourceLocation> workspaceFolders, Function<ISourceLocation, PathConfig> getPathConfig) {
-        // Sort workspace folders so we get the most specific folders first
-        List<ISourceLocation> sortedWorkspaceFolders = workspaceFolders.stream()
-            .sorted((o1, o2) -> o1.toString().compareTo(o2.toString()))
-            .collect(Collectors.toList());
-
-        return renames.parallelStream()
-            .map(rename -> {
-                ISourceLocation currentLoc = sourceLocationFromUri(rename.getOldUri());
-                ISourceLocation newLoc = sourceLocationFromUri(rename.getNewUri());
-
-                ISourceLocation currentWsFolder = findContainingWorkspaceFolder(currentLoc, sortedWorkspaceFolders);
-                ISourceLocation newWsFolder = findContainingWorkspaceFolder(newLoc, sortedWorkspaceFolders);
-
-                if (!currentWsFolder.equals(newWsFolder)) {
-                    String commonProjPrefix = StringUtils.getCommonPrefix(currentWsFolder.toString(), newWsFolder.toString());
-                    String currentProject = StringUtils.removeStart(currentWsFolder.toString(), commonProjPrefix);
-                    String newProject = StringUtils.removeStart(newWsFolder.toString(), commonProjPrefix);
-
-                    throw new RuntimeException(String.format("Cannot automatically change uses of %s, since moving files between projects (from %s to %s) is not supported", currentLoc, currentProject, newProject));
-                }
-
-                PathConfig pcfg = getPathConfig.apply(currentWsFolder);
-                try {
-                    IString currentName = VF.string(pcfg.getModuleName(currentLoc));
-                    IString newName = VF.string(pcfg.getModuleName(newLoc));
-
-                    return VF.tuple(currentName, newName, addResources(pcfg));
-                } catch (IOException e) {
-                    throw new RuntimeException(e.getMessage());
-                }
-            })
-            .collect(VF.setWriter());
-    }
-
     public CompletableFuture<ITuple> getModuleRenames(List<FileRename> fileRenames, Set<ISourceLocation> workspaceFolders, Function<ISourceLocation, PathConfig> getPathConfig, Map<ISourceLocation, TextDocumentState> documents) {
         var emptyResult = VF.tuple(VF.list(), VF.map());
         if (fileRenames.isEmpty()) {
             return CompletableFuture.completedFuture(emptyResult);
         }
 
-        return CompletableFuture.supplyAsync(() -> qualfiedNameChangesFromRenames(fileRenames, workspaceFolders, getPathConfig))
-            .thenCompose(qualifiedNameChanges -> {
+        return CompletableFuture.supplyAsync(() -> fileRenames.stream()
+                .map(r -> VF.tuple(sourceLocationFromUri(r.getOldUri()), sourceLocationFromUri(r.getNewUri())))
+                .collect(VF.listWriter())
+            )
+            .thenCompose(renames -> {
                 return runEvaluator("Rascal module rename", semanticEvaluator, eval -> {
                     IFunction rascalGetPathConfig = eval.getFunctionValueFactory().function(getPathConfigType, (t, u) -> addResources(getPathConfig.apply((ISourceLocation) t[0])));
                     try {
-                        return (ITuple) eval.call("rascalRenameModule", qualifiedNameChanges, VF.set(workspaceFolders.toArray(ISourceLocation[]::new)), rascalGetPathConfig);
+                        return (ITuple) eval.call("rascalRenameModule", renames, VF.set(workspaceFolders.toArray(ISourceLocation[]::new)), rascalGetPathConfig);
                     } catch (Throw e) {
                         throw new RuntimeException(e.getMessage());
                     }
diff --git a/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalWorkspaceService.java b/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalWorkspaceService.java
index 786c4b2f..84dae0f0 100644
--- a/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalWorkspaceService.java
+++ b/rascal-lsp/src/main/java/org/rascalmpl/vscode/lsp/rascal/RascalWorkspaceService.java
@@ -66,7 +66,7 @@ public void initialize(ClientCapabilities clientCap, @Nullable List<WorkspaceFol
 
         var fileCap = new FileOperationsServerCapabilities();
         fileCap.setDidRename(new FileOperationOptions(
-            List.of(new FileOperationFilter(new FileOperationPattern("**/*.rsc")))
+            List.of(new FileOperationFilter(new FileOperationPattern("**")))
         ));
 
         capabilities.getWorkspace().setFileOperations(fileCap);
diff --git a/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/Rename.rsc b/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/Rename.rsc
index b86ec289..aba8a8c2 100644
--- a/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/Rename.rsc
+++ b/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/Rename.rsc
@@ -653,8 +653,8 @@ Edits rascalRenameSymbol(Tree cursorT, set[loc] workspaceFolders, str newName, P
     return <changes + renames, changeAnnotations>;
 }, totalWork = 7);
 
-Edits rascalRenameModule(rel[str oldName, str newName, PathConfig pcfg] qualifiedNameChanges, set[loc] workspaceFolders, PathConfig(loc) getPathConfig) =
-    propagateModuleRenames(qualifiedNameChanges, workspaceFolders, getPathConfig);
+Edits rascalRenameModule(list[tuple[loc old, loc new]] renames, set[loc] workspaceFolders, PathConfig(loc) getPathConfig) =
+    propagateModuleRenames(renames, workspaceFolders, getPathConfig);
 
 //// WORKAROUNDS
 
diff --git a/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/rename/Modules.rsc b/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/rename/Modules.rsc
index cc43053e..d7cce970 100644
--- a/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/rename/Modules.rsc
+++ b/rascal-lsp/src/main/rascal/lang/rascal/lsp/refactor/rename/Modules.rsc
@@ -73,7 +73,28 @@ list[TextEdit] getChanges(loc f, PathConfig wsProject, rel[str oldName, str newN
     return changes;
 }
 
-Edits propagateModuleRenames(rel[str oldName, str newName, PathConfig pcfg] qualifiedNameChanges, set[loc] workspaceFolders, PathConfig(loc) getPathConfig) {
+set[tuple[str, str, PathConfig]] getQualifiedNameChanges(loc old, loc new, PathConfig(loc) getPathConfig) {
+    PathConfig oldPcfg = getPathConfig(old);
+    PathConfig newPcfg = getPathConfig(new);
+    if (isFile(new) && endsWith(new.file, ".rsc")) {
+        return {<getModuleName(old, oldPcfg), getModuleName(new, newPcfg), newPcfg>};
+    }
+
+    return {
+        <getModuleName(oldFile, oldPcfg), getModuleName(newFile, newPcfg), newPcfg>
+        | loc newFile <- find(new, "rsc")
+        , loc relFilePath := relativize(new, newFile)
+        , loc oldFile := old + relFilePath.path
+    };
+}
+
+Edits propagateModuleRenames(list[tuple[loc old, loc new]] renames, set[loc] workspaceFolders, PathConfig(loc) getPathConfig) {
+    rel[str oldName, str newName, PathConfig pcfg] qualifiedNameChanges = {
+        rename
+        | <oldLoc, newLoc> <- renames
+        , tuple[str, str, PathConfig] rename <- getQualifiedNameChanges(oldLoc, newLoc, getPathConfig)
+    };
+
     set[PathConfig] projectWithRenamedModule = qualifiedNameChanges.pcfg;
     set[DocumentEdit] edits = flatMap(workspaceFolders, set[DocumentEdit](loc wsFolder) {
         PathConfig wsFolderPcfg = getPathConfig(wsFolder);