Renaming conflicts occur during a folder merge when the same file or folder has been renamed differently in each location being merged (like two different branches or directories). Unlike simple file content conflicts, these involve discrepancies in the name or path of an item. The merge tool recognizes that a file in one location matches the content (or origin) of a file in another location but has a different name, creating ambiguity about which name should prevail. Resolving requires deciding which name is correct.

For example, in cloud storage like Dropbox or OneDrive, a conflict arises if you rename 'report_v1.docx' to 'Final_Report.docx' on your laptop while simultaneously renaming it to 'Client_Report_v1.docx' on your phone before syncing. Similarly, in Git, merging a branch where 'src/utility.js' was renamed to 'src/utils/helper.js' into a branch where the same file was renamed to 'src/tools.js' triggers a renaming conflict.

Handling these conflicts correctly allows merging valid changes without data loss, preserving collaboration flow. However, resolution can require manual inspection to determine the intended final name, which can be error-prone. Relying solely on automated tools might lead to unexpected or incorrect naming results, highlighting the importance of good communication within teams to reduce conflicts. Improved merge algorithms increasingly try to detect potential renames automatically.