diff --git a/esphome/__main__.py b/esphome/__main__.py
index c1451c5fafd..a0ee5a359f4 100644
--- a/esphome/__main__.py
+++ b/esphome/__main__.py
@@ -1813,11 +1813,32 @@ def command_rename(args: ArgsProtocol, config: ConfigType) -> int | None:
     old_name = yaml[CONF_ESPHOME][CONF_NAME]
     match = re.match(r"^\$\{?([a-zA-Z0-9_]+)\}?$", old_name)
     if match is None:
-        new_raw = re.sub(
-            rf"name:\s+[\"']?{old_name}[\"']?",
-            f'name: "{new_name}"',
-            raw_contents,
+        # Only swap the ``name:`` line that sits directly under the
+        # top-level ``esphome:`` block. A naked ``re.sub`` would
+        # also clobber any other ``name:`` line whose value happens
+        # to match (e.g. a sensor / output / wifi entry sharing the
+        # device's hostname), silently rewriting unrelated user
+        # configuration. The pattern anchors:
+        # - at the start of the line so ``friendly_name:``,
+        #   ``device_name:`` etc. don't match the trailing ``name:``
+        #   substring; and
+        # - at the end of the value (lookahead for whitespace +
+        #   comment + EOL) so ``old_name`` doesn't match as a
+        #   prefix of a longer value (``kitchen`` vs ``kitchen2``).
+        name_pattern = re.compile(
+            rf"^(\s*)name:\s+[\"']?{re.escape(old_name)}[\"']?(?=\s*(?:#|$))"
         )
+        out_lines: list[str] = []
+        in_esphome_block = False
+        for line in raw_contents.splitlines(keepends=True):
+            if line and not line[0].isspace() and line.strip():
+                in_esphome_block = line.lstrip().startswith("esphome:")
+                out_lines.append(line)
+                continue
+            if in_esphome_block:
+                line = name_pattern.sub(rf'\1name: "{new_name}"', line, count=1)
+            out_lines.append(line)
+        new_raw = "".join(out_lines)
     else:
         old_name = yaml[CONF_SUBSTITUTIONS][match.group(1)]
         if (
@@ -1840,7 +1861,40 @@ def command_rename(args: ArgsProtocol, config: ConfigType) -> int | None:
             flags=re.MULTILINE,
         )
 
+    # ``new_name == old_name`` (after substitution resolution) is
+    # a no-op rewrite that would still queue a pointless re-flash.
+    # Catch it before the path-equality check below — covers the
+    # case where the config filename doesn't match the device name
+    # (e.g. ``weird-file.yaml`` whose ``esphome.name`` is
+    # ``kitchen``; running ``esphome rename weird-file.yaml kitchen``
+    # would otherwise just re-flash the same hostname).
+    if new_name == old_name:
+        print(
+            color(
+                AnsiFore.BOLD_RED,
+                f"'{new_name}' is already the device's name.",
+            )
+        )
+        return 1
+
     new_path: Path = CORE.config_dir / (new_name + ".yaml")
+    if new_path.resolve() == CORE.config_path.resolve():
+        print(
+            color(
+                AnsiFore.BOLD_RED,
+                f"'{new_name}' is already the device's name.",
+            )
+        )
+        return 1
+    if new_path.exists():
+        print(
+            color(
+                AnsiFore.BOLD_RED,
+                f"Cannot rename: {new_path} already exists. "
+                "Refusing to overwrite an existing configuration.",
+            )
+        )
+        return 1
     print(
         f"Updating {color(AnsiFore.CYAN, str(CORE.config_path))} to {color(AnsiFore.CYAN, str(new_path))}"
     )
diff --git a/tests/unit_tests/test_main.py b/tests/unit_tests/test_main.py
index 4b0590cf76d..2823310f0e4 100644
--- a/tests/unit_tests/test_main.py
+++ b/tests/unit_tests/test_main.py
@@ -3595,6 +3595,467 @@ esp32:
     assert "Rename failed" in captured.out
 
 
+def test_command_rename_install_failure_reverts(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename when the install (esphome run) step fails."""
+    config_file = tmp_path / "oldname.yaml"
+    config_file.write_text("""
+esphome:
+  name: oldname
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "oldname"}}
+
+    args = MockArgs(name="newname", dashboard=False)
+
+    # First call (config validation) succeeds; second (esphome run) fails.
+    mock_run_external_process.side_effect = [0, 1]
+
+    result = command_rename(args, {})
+
+    assert result == 1
+
+    # New file was unlinked when install failed.
+    new_file = tmp_path / "newname.yaml"
+    assert not new_file.exists()
+
+    # Old file is preserved so the device stays reachable under the
+    # original hostname.
+    assert config_file.exists()
+
+
+def test_command_rename_target_exists_refuses(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename refuses when the target filename already exists.
+
+    Without this guard, the rename would overwrite the unrelated
+    device's YAML and OTA-install our firmware to the wrong device.
+    """
+    config_file = tmp_path / "oldname.yaml"
+    config_file.write_text("""
+esphome:
+  name: oldname
+
+esp32:
+  board: nodemcu-32s
+""")
+    target_file = tmp_path / "newname.yaml"
+    target_file.write_text("""
+esphome:
+  name: someoneelse
+
+esp32:
+  board: nodemcu-32s
+""")
+    target_original = target_file.read_text()
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "oldname"}}
+
+    args = MockArgs(name="newname", dashboard=False)
+
+    result = command_rename(args, {})
+
+    assert result == 1
+    # No subprocess work happened — refusal is up-front.
+    mock_run_external_process.assert_not_called()
+    # Target file untouched: same content, still on disk.
+    assert target_file.exists()
+    assert target_file.read_text() == target_original
+    # Source file untouched.
+    assert config_file.exists()
+
+    captured = capfd.readouterr()
+    assert "already exists" in captured.out
+
+
+def test_command_rename_same_name_refuses(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename refuses when the new name matches the current name.
+
+    A same-name rename would otherwise re-write the YAML and queue
+    a redundant compile + install — wasted work the user almost
+    certainly didn't intend.
+    """
+    config_file = tmp_path / "samename.yaml"
+    config_file.write_text("""
+esphome:
+  name: samename
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "samename"}}
+
+    args = MockArgs(name="samename", dashboard=False)
+
+    result = command_rename(args, {})
+
+    assert result == 1
+    mock_run_external_process.assert_not_called()
+    # File preserved verbatim — no rewrite happened.
+    assert config_file.exists()
+
+    captured = capfd.readouterr()
+    assert "already" in captured.out.lower()
+
+
+def test_command_rename_does_not_touch_friendly_name_substring(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    r"""Test rename does not match the ``name:`` substring of ``friendly_name:``.
+
+    Without anchoring the regex at line start, the pattern
+    ``\s*name:\s+<old>`` could match the trailing ``name:``
+    substring inside ``friendly_name: <old>``. The rewrite would
+    flip both lines to the new name, leaving the user with a
+    silently corrupted ``friendly_name``.
+    """
+    config_file = tmp_path / "oldname.yaml"
+    config_file.write_text("""
+esphome:
+  name: oldname
+  friendly_name: oldname
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "oldname"}}
+
+    args = MockArgs(name="newname", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+    new_file = tmp_path / "newname.yaml"
+    content = new_file.read_text()
+    # esphome.name swapped.
+    assert 'name: "newname"' in content
+    # friendly_name kept verbatim.
+    assert "friendly_name: oldname" in content
+
+
+def test_command_rename_does_not_match_old_name_as_value_prefix(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    r"""Test rename does not match ``old_name`` as a prefix of a longer value.
+
+    With ``old_name = kitchen`` the value ``kitchen2`` (a sensor
+    or wifi entry) would otherwise match the unanchored
+    ``["']?kitchen["']?`` pattern at the prefix and get
+    rewritten to the new name. The end-of-value lookahead keeps
+    the match restricted to whole tokens.
+    """
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: kitchen
+
+esp32:
+  board: nodemcu-32s
+
+wifi:
+  ap:
+    ssid: kitchen2
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="garage", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+    new_file = tmp_path / "garage.yaml"
+    content = new_file.read_text()
+    assert 'name: "garage"' in content
+    # The wifi ssid value is unrelated and stays intact.
+    assert "ssid: kitchen2" in content
+
+
+def test_command_rename_same_resolved_name_refuses(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename refuses when ``new_name`` matches the resolved device name.
+
+    The path-equality check only catches the case where the
+    config filename matches the device name. For a config whose
+    filename and ``esphome.name`` differ (here ``weird-file.yaml``
+    holds ``esphome.name: kitchen``), running
+    ``esphome rename weird-file.yaml kitchen`` would otherwise
+    fall through to the rewrite + install: the YAML's name stays
+    ``kitchen``, the file is renamed to ``kitchen.yaml``, and the
+    device gets a redundant flash. Refuse up-front so the
+    "already the device's name" message matches reality.
+    """
+    config_file = tmp_path / "weird-file.yaml"
+    config_file.write_text("""
+esphome:
+  name: kitchen
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="kitchen", dashboard=False)
+
+    result = command_rename(args, {})
+
+    assert result == 1
+    mock_run_external_process.assert_not_called()
+    # Source file untouched, no derived target written.
+    assert config_file.exists()
+    assert not (tmp_path / "kitchen.yaml").exists()
+
+    captured = capfd.readouterr()
+    assert "already" in captured.out.lower()
+
+
+def test_command_rename_target_path_equals_source_refuses(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename refuses when the new path resolves to the source file.
+
+    Reachable only when the YAML's filename and ``esphome.name``
+    disagree — here ``kitchen.yaml`` holds ``esphome.name: garage``
+    and the user runs ``esphome rename kitchen.yaml kitchen``. The
+    name-equality check above passes (``garage != kitchen``), but
+    ``<config_dir>/kitchen.yaml`` resolves to the source file
+    itself, so the rewrite would clobber the source mid-rename.
+    Refuse rather than silently overwriting.
+    """
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: garage
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "garage"}}
+
+    args = MockArgs(name="kitchen", dashboard=False)
+
+    result = command_rename(args, {})
+
+    assert result == 1
+    mock_run_external_process.assert_not_called()
+    # Source file still present and unmodified.
+    assert config_file.exists()
+    assert "name: garage" in config_file.read_text()
+
+    captured = capfd.readouterr()
+    assert "already" in captured.out.lower()
+
+
+def test_command_rename_does_not_touch_lookalike_name_in_other_blocks(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename only swaps the esphome.name line.
+
+    A device whose name happens to match a sensor's / output's
+    ``name:`` value must not have those other names rewritten —
+    they're independent. Without an anchor for the esphome block
+    a naive regex would clobber every line whose value matches.
+    """
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: kitchen
+
+esp32:
+  board: nodemcu-32s
+
+sensor:
+  - platform: template
+    name: kitchen
+    lambda: 'return 0;'
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="garage", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+
+    new_file = tmp_path / "garage.yaml"
+    content = new_file.read_text()
+    # esphome.name renamed.
+    assert 'name: "garage"' in content
+    # Sensor's name is the user's entity name — must not be touched.
+    assert "    name: kitchen\n" in content
+
+
+def test_command_rename_preserves_trailing_comment(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename preserves a trailing ``# comment`` on the name line."""
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: kitchen  # primary device
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="garage", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+
+    new_file = tmp_path / "garage.yaml"
+    content = new_file.read_text()
+    assert "# primary device" in content
+
+
+def test_command_rename_handles_double_quoted_value(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename matches when the existing value is double-quoted."""
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: "kitchen"
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="garage", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+    new_file = tmp_path / "garage.yaml"
+    assert 'name: "garage"' in new_file.read_text()
+
+
+def test_command_rename_handles_single_quoted_value(
+    tmp_path: Path,
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename matches when the existing value is single-quoted."""
+    config_file = tmp_path / "kitchen.yaml"
+    config_file.write_text("""
+esphome:
+  name: 'kitchen'
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {CONF_ESPHOME: {CONF_NAME: "kitchen"}}
+
+    args = MockArgs(name="garage", dashboard=False)
+    mock_run_external_process.return_value = 0
+
+    result = command_rename(args, {})
+
+    assert result == 0
+    new_file = tmp_path / "garage.yaml"
+    assert 'name: "garage"' in new_file.read_text()
+
+
+def test_command_rename_too_many_substitution_matches_refuses(
+    tmp_path: Path,
+    capfd: CaptureFixture[str],
+    mock_run_external_process: Mock,
+) -> None:
+    """Test rename refuses when ``${var}`` resolves to multiple matches.
+
+    When ``esphome.name: ${device_name}`` and the substitution
+    definition ``device_name: foo`` appears more than once in the
+    YAML (e.g. inside multiple included blocks), the regex rewrite
+    can't tell which one to flip. Rather than silently picking one
+    or rewriting both, the command refuses.
+    """
+    config_file = tmp_path / "oldname.yaml"
+    config_file.write_text("""
+substitutions:
+  device_name: oldname
+
+esphome:
+  name: ${device_name}
+
+# A copy-pasted block that re-declares the substitution at the
+# same indent level - happens when users splice in a packaged
+# fragment without renaming the variable.
+example:
+  device_name: oldname
+
+esp32:
+  board: nodemcu-32s
+""")
+    setup_core(tmp_path=tmp_path)
+    CORE.config_path = config_file
+    CORE.config = {
+        CONF_ESPHOME: {CONF_NAME: "oldname"},
+        CONF_SUBSTITUTIONS: {"device_name": "oldname"},
+    }
+
+    args = MockArgs(name="newname", dashboard=False)
+
+    result = command_rename(args, {})
+
+    assert result == 1
+    mock_run_external_process.assert_not_called()
+    # File untouched.
+    assert config_file.exists()
+    assert "device_name: oldname" in config_file.read_text()
+
+    captured = capfd.readouterr()
+    assert "Too many matches" in captured.out
+
+
 def test_command_update_all_path_string_conversion(
     tmp_path: Path,
     mock_run_external_process: Mock,