diff --git a/core/config/workspace/workspaceBlocks.ts b/core/config/workspace/workspaceBlocks.ts
index 7dcdecf634f..ace83605109 100644
--- a/core/config/workspace/workspaceBlocks.ts
+++ b/core/config/workspace/workspaceBlocks.ts
@@ -3,6 +3,7 @@ import {
   ConfigYaml,
   createPromptMarkdown,
   createRuleMarkdown,
+  sanitizeRuleName,
 } from "@continuedev/config-yaml";
 import * as YAML from "yaml";
 import { IDE } from "../..";
@@ -116,13 +117,31 @@ export async function findAvailableFilename(
   fileExists: (uri: string) => Promise<boolean>,
   extension?: string,
   isGlobal?: boolean,
+  baseFilenameOverride?: string,
 ): Promise<string> {
-  // Differentiate filename based on whether its a global rule or a workspace rule
-  const baseFilename =
-    blockType === "rules" && isGlobal
-      ? "global-rule"
-      : `new-${BLOCK_TYPE_CONFIG[blockType]?.filename}`;
   const fileExtension = extension ?? getFileExtension(blockType);
+  let baseFilename: string;
+
+  const trimmedOverride = baseFilenameOverride?.trim();
+  if (trimmedOverride) {
+    if (blockType === "rules") {
+      const withoutExtension = trimmedOverride.replace(/\.[^./\\]+$/, "");
+      const sanitized = sanitizeRuleName(withoutExtension);
+      baseFilename =
+        sanitized ||
+        (isGlobal
+          ? "global-rule"
+          : `new-${BLOCK_TYPE_CONFIG[blockType]?.filename}`);
+    } else {
+      baseFilename = trimmedOverride;
+    }
+  } else {
+    baseFilename =
+      blockType === "rules" && isGlobal
+        ? "global-rule"
+        : `new-${BLOCK_TYPE_CONFIG[blockType]?.filename}`;
+  }
+
   let counter = 0;
   let fileUri: string;
 
@@ -141,6 +160,7 @@ export async function findAvailableFilename(
 export async function createNewWorkspaceBlockFile(
   ide: IDE,
   blockType: BlockType,
+  baseFilename?: string,
 ): Promise<void> {
   const workspaceDirs = await ide.getWorkspaceDirs();
   if (workspaceDirs.length === 0) {
@@ -155,6 +175,9 @@ export async function createNewWorkspaceBlockFile(
     baseDirUri,
     blockType,
     ide.fileExists.bind(ide),
+    undefined,
+    false,
+    baseFilename,
   );
 
   const fileContent = getFileContent(blockType);
@@ -163,7 +186,10 @@ export async function createNewWorkspaceBlockFile(
   await ide.openFile(fileUri);
 }
 
-export async function createNewGlobalRuleFile(ide: IDE): Promise<void> {
+export async function createNewGlobalRuleFile(
+  ide: IDE,
+  baseFilename?: string,
+): Promise<void> {
   try {
     const globalDir = localPathToUri(getContinueGlobalPath());
 
@@ -176,6 +202,7 @@ export async function createNewGlobalRuleFile(ide: IDE): Promise<void> {
       ide.fileExists.bind(ide),
       undefined,
       true, // isGlobal = true for global rules
+      baseFilename,
     );
 
     const fileContent = getFileContent("rules");
diff --git a/core/core.ts b/core/core.ts
index c73996a4951..2985c04860c 100644
--- a/core/core.ts
+++ b/core/core.ts
@@ -409,7 +409,11 @@ export class Core {
     });
 
     on("config/addLocalWorkspaceBlock", async (msg) => {
-      await createNewWorkspaceBlockFile(this.ide, msg.data.blockType);
+      await createNewWorkspaceBlockFile(
+        this.ide,
+        msg.data.blockType,
+        msg.data.baseFilename,
+      );
       await this.configHandler.reloadConfig(
         "Local block created (config/addLocalWorkspaceBlock message)",
       );
@@ -417,7 +421,7 @@ export class Core {
 
     on("config/addGlobalRule", async (msg) => {
       try {
-        await createNewGlobalRuleFile(this.ide);
+        await createNewGlobalRuleFile(this.ide, msg.data?.baseFilename);
         await this.configHandler.reloadConfig(
           "Global rule created (config/addGlobalRule message)",
         );
diff --git a/core/protocol/core.ts b/core/protocol/core.ts
index b03b0e11a77..bfa85870987 100644
--- a/core/protocol/core.ts
+++ b/core/protocol/core.ts
@@ -90,8 +90,11 @@ export type ToCoreFromIdeOrWebviewProtocol = {
     },
     void,
   ];
-  "config/addLocalWorkspaceBlock": [{ blockType: BlockType }, void];
-  "config/addGlobalRule": [undefined, void];
+  "config/addLocalWorkspaceBlock": [
+    { blockType: BlockType; baseFilename?: string },
+    void,
+  ];
+  "config/addGlobalRule": [undefined | { baseFilename?: string }, void];
   "config/newPromptFile": [undefined, void];
   "config/newAssistantFile": [undefined, void];
   "config/ideSettingsUpdate": [IdeSettings, void];
diff --git a/gui/src/components/dialogs/AddRuleDialog.tsx b/gui/src/components/dialogs/AddRuleDialog.tsx
new file mode 100644
index 00000000000..49a6e672348
--- /dev/null
+++ b/gui/src/components/dialogs/AddRuleDialog.tsx
@@ -0,0 +1,100 @@
+import { useContext, useLayoutEffect, useRef, useState } from "react";
+import { useDispatch } from "react-redux";
+import { Input, SecondaryButton } from "..";
+import { IdeMessengerContext } from "../../context/IdeMessenger";
+import { setDialogMessage, setShowDialog } from "../../redux/slices/uiSlice";
+
+function AddRuleDialog({ mode }: { mode: "workspace" | "global" }) {
+  const dispatch = useDispatch();
+  const ideMessenger = useContext(IdeMessengerContext);
+  const [name, setName] = useState("new-rule");
+  const [error, setError] = useState<string | undefined>();
+  const [isSubmitting, setIsSubmitting] = useState(false);
+  const inputRef = useRef<HTMLInputElement>(null);
+
+  useLayoutEffect(() => {
+    // focus on input after a short delay
+    const timer = setTimeout(() => {
+      if (inputRef.current) {
+        inputRef.current.focus();
+      }
+    }, 100);
+    return () => clearTimeout(timer);
+  }, []);
+
+  const closeDialog = () => {
+    dispatch(setShowDialog(false));
+    dispatch(setDialogMessage(undefined));
+  };
+
+  const handleSubmit = (e: React.FormEvent) => {
+    e.preventDefault();
+    const trimmed = name.trim();
+    if (!trimmed) {
+      setError("File name is required");
+      return;
+    }
+    setError(undefined);
+    setIsSubmitting(true);
+    try {
+      if (mode === "global") {
+        ideMessenger.post("config/addGlobalRule", {
+          baseFilename: trimmed,
+        });
+      } else {
+        ideMessenger.post("config/addLocalWorkspaceBlock", {
+          blockType: "rules",
+          baseFilename: trimmed,
+        });
+      }
+      closeDialog();
+    } catch (err) {
+      setIsSubmitting(false);
+      setError("Failed to create rule file");
+    }
+  };
+
+  const title = mode === "global" ? "Add global rule file" : "Add rule file";
+
+  return (
+    <div className="px-2 pt-4 sm:px-4">
+      <div>
+        <h1 className="mb-0">{title}</h1>
+        <p className="m-0 mt-2 p-0 text-stone-500">
+          Choose a name for the new rule file.
+        </p>
+        <form onSubmit={handleSubmit} className="mt-3 flex flex-col gap-2">
+          <label className="flex w-full flex-col gap-1">
+            <span>File name</span>
+            <Input
+              ref={inputRef}
+              type="text"
+              placeholder="ex: api-guidelines"
+              value={name}
+              onChange={(e) => setName(e.target.value)}
+            />
+          </label>
+          {error && <p className="text-xs text-red-500">{error}</p>}
+          <div className="mt-2 flex flex-row justify-end gap-2">
+            <SecondaryButton
+              className="min-w-16"
+              disabled={isSubmitting}
+              type="submit"
+            >
+              Create
+            </SecondaryButton>
+            <SecondaryButton
+              type="button"
+              className="min-w-16"
+              onClick={closeDialog}
+            >
+              Cancel
+            </SecondaryButton>
+          </div>
+        </form>
+      </div>
+    </div>
+  );
+}
+
+export default AddRuleDialog;
diff --git a/gui/src/pages/config/sections/RulesSection.tsx b/gui/src/pages/config/sections/RulesSection.tsx
index 4e9741bb51c..08bdb6da775 100644
--- a/gui/src/pages/config/sections/RulesSection.tsx
+++ b/gui/src/pages/config/sections/RulesSection.tsx
@@ -20,6 +20,7 @@ import {
 import { getRuleDisplayName } from "core/llm/rules/rules-utils";
 import { useContext, useMemo, useState } from "react";
 import { DropdownButton } from "../../../components/DropdownButton";
+import AddRuleDialog from "../../../components/dialogs/AddRuleDialog";
 import HeaderButtonWithToolTip from "../../../components/gui/HeaderButtonWithToolTip";
 import Switch from "../../../components/gui/Switch";
 import {
@@ -393,19 +394,21 @@ function RulesSubSection() {
   const config = useAppSelector((store) => store.config.config);
   const mode = useAppSelector((store) => store.session.mode);
   const ideMessenger = useContext(IdeMessengerContext);
+  const dispatch = useAppDispatch();
   const isLocal = selectedProfile?.profileType === "local";
   const [globalRulesMode, setGlobalRulesMode] = useState<string>("workspace");
 
   const handleAddRule = (mode?: string) => {
     const currentMode = mode || globalRulesMode;
     if (isLocal) {
-      if (currentMode === "global") {
-        void ideMessenger.request("config/addGlobalRule", undefined);
-      } else {
-        void ideMessenger.request("config/addLocalWorkspaceBlock", {
-          blockType: "rules",
-        });
-      }
+      dispatch(setShowDialog(true));
+      dispatch(
+        setDialogMessage(
+          <AddRuleDialog
+            mode={currentMode === "global" ? "global" : "workspace"}
+          />,
+        ),
+      );
     } else {
       void ideMessenger.request("controlPlane/openUrl", {
         path: "?type=rules",