diff --git a/crates/ui-egui/src/dialogs/variables_panel.rs b/crates/ui-egui/src/dialogs/variables_panel.rs
index 067d54ea9..21889fe29 100644
--- a/crates/ui-egui/src/dialogs/variables_panel.rs
+++ b/crates/ui-egui/src/dialogs/variables_panel.rs
@@ -594,23 +594,40 @@ fn group_rows(app: &mut FigApp, ui: &mut Ui, view: &View, coll: &Collection, st:
     }
 }
 
-/// Rename the last part of group `g` of a collection (its variables `members`) to `new`: every
-/// variable under it moves along (one undo step).
-fn rename_group(app: &mut FigApp, members: &[&Variable], g: &str, new: &str, st: &mut Editor) {
-    let new = new.trim().replace('/', "-");
+/// What renaming group `g` (of the variables `members`) to `new` does: the group's new path and
+/// each moved variable's (id, new name). `new` replaces the group's last part; a `/` in it nests
+/// the group, as in Figma ("Palette/Orange" puts it in a group Palette, made if there is none).
+/// Each part is trimmed and empty parts are dropped. The renames come deepest name first, so a
+/// variable moving into the group's own new path ("Orange" to "Orange/Warm") never takes a name
+/// another moved variable still holds. None when nothing changes.
+fn group_renames(members: &[&Variable], g: &str, new: &str) -> Option<(String, Vec<(String, String)>)> {
+    let new = new.split('/').map(str::trim).filter(|p| !p.is_empty()).collect::<Vec<_>>().join("/");
     if new.is_empty() {
-        return;
+        return None;
     }
     let renamed = match g.rsplit_once('/') {
         Some((parent, _)) => format!("{parent}/{new}"),
         None => new,
     };
+    if renamed == g {
+        return None;
+    }
+    let prefix = format!("{g}/");
+    let mut moved: Vec<(&Variable, &str)> = members.iter().filter_map(|v| Some((*v, v.name.strip_prefix(&prefix)?))).collect();
+    // A longer name can only be one a shorter one moves to: rename those out of the way first.
+    moved.sort_by_key(|(_, rest)| std::cmp::Reverse(rest.len()));
+    Some((renamed.clone(), moved.into_iter().map(|(v, rest)| (v.id.clone(), format!("{renamed}/{rest}"))).collect()))
+}
+
+/// Rename group `g` of a collection (its variables `members`) to `new` (see [`group_renames`]):
+/// every variable under it moves along, in one undo step.
+fn rename_group(app: &mut FigApp, members: &[&Variable], g: &str, new: &str, st: &mut Editor) {
+    let Some((renamed, moves)) = group_renames(members, g, new) else {
+        return;
+    };
+    let steps: Vec<serde_json::Value> =
+        moves.iter().map(|(id, name)| json!({"command": "variable.update", "params": {"variable": id, "name": name}})).collect();
     let prefix = format!("{g}/");
-    let steps: Vec<serde_json::Value> = members
-        .iter()
-        .filter(|v| v.name.starts_with(&prefix))
-        .map(|v| json!({"command": "variable.update", "params": {"variable": v.id, "name": format!("{renamed}/{}", &v.name[prefix.len()..])}}))
-        .collect();
     if app.run("command.batch", json!({"label": "Rename group", "commands": steps})).is_some()
         && st.group.as_deref().is_some_and(|s| s == g || s.starts_with(&prefix))
     {
@@ -1308,7 +1325,7 @@ fn bulk_details(app: &mut FigApp, ctx: &Context, vars: &Variables, st: &mut Edit
 
 #[cfg(test)]
 mod tests {
-    use super::{groups, tri};
+    use super::{group_renames, groups, tri};
 
     #[test]
     fn tri_is_checked_empty_or_mixed() {
@@ -1330,4 +1347,47 @@ mod tests {
         assert_eq!(groups(names.into_iter()), ["color", "color/brand", "space"]);
         assert!(groups(["a", "b"].into_iter()).is_empty());
     }
+
+    /// The renames of group `g` among `names` (numbers in one collection) typed as `new`, by name.
+    fn renames(names: &[&str], g: &str, new: &str) -> Option<(String, Vec<(String, String)>)> {
+        let mut s = figcraft_engine::Session::new();
+        s.execute("variable.createCollection", &serde_json::json!({"name": "Theme"})).unwrap();
+        for n in names {
+            s.execute("variable.create", &serde_json::json!({"collection": "Theme", "name": n, "type": "number", "value": 1})).unwrap();
+        }
+        let vars = &s.doc().unwrap().variables.variables;
+        let members: Vec<_> = vars.iter().collect();
+        let (renamed, moves) = group_renames(&members, g, new)?;
+        let by_name = |id: &str| vars.iter().find(|v| v.id == id).unwrap().name.clone();
+        Some((renamed, moves.into_iter().map(|(id, n)| (by_name(&id), n)).collect()))
+    }
+
+    #[test]
+    fn a_slash_in_a_group_rename_nests_the_group_keeping_its_parent() {
+        let pair = |a: &str, b: &str| (a.to_string(), b.to_string());
+        assert_eq!(
+            renames(&["Orange/100", "Orange/200", "Blue/100"], "Orange", "Palette/Orange"),
+            Some(("Palette/Orange".into(), vec![pair("Orange/100", "Palette/Orange/100"), pair("Orange/200", "Palette/Orange/200")]))
+        );
+        assert_eq!(
+            renames(&["a/b/x"], "a/b", " / Warm //  c / "),
+            Some(("a/Warm/c".into(), vec![pair("a/b/x", "a/Warm/c/x")])),
+            "parts are trimmed, empty parts dropped, and the parent stays"
+        );
+    }
+
+    #[test]
+    fn a_group_rename_to_nothing_or_to_itself_does_nothing() {
+        for new in ["", "  ", "/", " / // ", "Orange", " Orange ", "/Orange/"] {
+            assert_eq!(renames(&["Orange/100"], "Orange", new), None, "{new:?}");
+        }
+        assert_eq!(renames(&["a/b/x"], "a/b", "b/"), None);
+    }
+
+    #[test]
+    fn a_group_moved_into_its_own_subgroup_renames_the_deeper_names_first() {
+        let (_, moves) = renames(&["Orange/100", "Orange/Warm/100"], "Orange", "Orange/Warm").unwrap();
+        let order: Vec<&str> = moves.iter().map(|(old, _)| old.as_str()).collect();
+        assert_eq!(order, ["Orange/Warm/100", "Orange/100"]);
+    }
 }
diff --git a/crates/ui-egui/src/variables_select_tests.rs b/crates/ui-egui/src/variables_select_tests.rs
index 3b32dc49d..c2b699eb8 100644
--- a/crates/ui-egui/src/variables_select_tests.rs
+++ b/crates/ui-egui/src/variables_select_tests.rs
@@ -332,6 +332,85 @@ fn a_second_duplicate_group_takes_the_next_free_name() {
     assert_eq!(n.len(), 6);
 }
 
+/// A collection with the variables `names` (numbers).
+fn named_window(names: &[&str]) -> Ui {
+    let mut s = Session::new();
+    s.execute("variable.createCollection", &json!({"name": "Theme"})).unwrap();
+    for n in names {
+        s.execute("variable.create", &json!({"collection": "Theme", "name": n, "type": "number", "value": 1})).unwrap();
+    }
+    let mut u = Ui::new(s);
+    u.app.ui.variables = Some(Default::default());
+    for _ in 0..10 {
+        u.frame(vec![]);
+    }
+    u
+}
+
+/// Right-click the group row `name`, choose Rename group, type `to` and press Enter.
+fn rename_group(u: &mut Ui, name: &str, to: &str) {
+    let p = row(u, name);
+    click(u, p, PointerButton::Secondary, Modifiers::NONE);
+    let menu = flat(&u.frame_output(vec![]).shapes);
+    click(u, text_center(&menu, "Rename group"), PointerButton::Primary, Modifiers::NONE);
+    u.frame(vec![Event::Text(to.into())]);
+    for pressed in [true, false] {
+        u.frame(vec![Event::Key { key: Key::Enter, physical_key: None, pressed, repeat: false, modifiers: Modifiers::NONE }]);
+    }
+    for _ in 0..5 {
+        u.frame(vec![]);
+    }
+}
+
+fn sorted_names(u: &Ui) -> Vec<String> {
+    let mut n = names(u);
+    n.sort();
+    n
+}
+
+#[test]
+fn renaming_a_group_with_a_slash_nests_it_in_a_new_parent_group_in_one_undo_step() {
+    let mut u = named_window(&["Orange/100", "Orange/200", "Blue/100"]);
+    let before = u.app.session.undo_labels(100).len();
+    rename_group(&mut u, "Orange", "Palette/Orange");
+    assert!(u.app.ui.last_error.is_none(), "{:?}", u.app.ui.last_error);
+    assert_eq!(sorted_names(&u), ["Blue/100", "Palette/Orange/100", "Palette/Orange/200"]);
+    assert_eq!(u.app.session.undo_labels(100).len(), before + 1, "one undo step");
+    assert_eq!(u.app.session.undo_labels(1), ["Rename group"]);
+    // The sidebar lists Palette with Orange indented under it.
+    let shapes = flat(&u.frame_output(vec![]).shapes);
+    let (parent, child) = (text_center(&shapes, "Palette"), text_center(&shapes, "Orange"));
+    assert!(child.y > parent.y && child.x > parent.x, "Orange is indented under Palette: {parent:?} {child:?}");
+    assert!(!has_text(&shapes, "Palette-Orange"));
+    u.app.session.undo().unwrap();
+    assert_eq!(sorted_names(&u), ["Blue/100", "Orange/100", "Orange/200"]);
+}
+
+#[test]
+fn a_nested_groups_new_path_stays_in_its_parent_and_drops_empty_parts() {
+    let mut u = named_window(&["Palette/Orange/100", "Palette/Orange/200"]);
+    rename_group(&mut u, "Orange", " /Warm // Orange / ");
+    assert!(u.app.ui.last_error.is_none(), "{:?}", u.app.ui.last_error);
+    assert_eq!(sorted_names(&u), ["Palette/Warm/Orange/100", "Palette/Warm/Orange/200"]);
+}
+
+#[test]
+fn renaming_a_group_into_its_own_new_subgroup_moves_the_deeper_names_first() {
+    // Orange/100 takes Orange/Warm/100, which itself moves on to Orange/Warm/Warm/100.
+    let mut u = named_window(&["Orange/100", "Orange/Warm/100"]);
+    rename_group(&mut u, "Orange", "Orange/Warm");
+    assert!(u.app.ui.last_error.is_none(), "{:?}", u.app.ui.last_error);
+    assert_eq!(sorted_names(&u), ["Orange/Warm/100", "Orange/Warm/Warm/100"]);
+}
+
+#[test]
+fn a_group_rename_onto_a_variable_name_that_stays_changes_nothing() {
+    let mut u = named_window(&["Orange/100", "Orange/200", "Palette/Orange/100"]);
+    rename_group(&mut u, "Orange", "Palette/Orange");
+    assert!(u.app.ui.last_error.as_deref().is_some_and(|e| e.contains("Palette/Orange/100")), "{:?}", u.app.ui.last_error);
+    assert_eq!(sorted_names(&u), ["Orange/100", "Orange/200", "Palette/Orange/100"]);
+}
+
 fn open_edit_variables(u: &mut Ui) -> Vec<egui::Shape> {
     let menu = select_three_and_open_menu(u);
     assert!(has_text(&menu, "Edit variables"), "the bulk menu offers Edit variables");
diff --git a/docs/components-parity.md b/docs/components-parity.md
index 3d23800b0..8b7219b81 100644
--- a/docs/components-parity.md
+++ b/docs/components-parity.md
@@ -1,6 +1,6 @@
 # Components, variants, styles and variables parity
 
-> **Last reviewed:** 2026-10-10 · **Last updated:** 2026-11-12 · **Change:** minor (a group's context menu in the Local variables window has Duplicate group, a copy named after it plus " 2" holding a copy of every variable, in one undo step (#2084); pages take a variable mode: with nothing selected the Design panel's Page section shows a Variable modes section, Auto or a mode of each collection that has more than one, as the help center says ("Apply variable mode" in the Page section of the right sidebar) (#2215); a text style binds a number variable to its weight (#2174); an instance lists only the properties its variant's layers use and long property names are cut to one line (#2022); with several layers selected the Design panel header's component button offers Create multiple components (#2088); the Local variables window selects several variables (click, Shift+click for a range, Cmd/Ctrl+click to toggle, Escape to clear) and delete, move to a group and scope act on the selected local variables in one undo step (#2002); text styles carry paragraph spacing and indent, the list style and the OpenType features, as the Supported in text styles table of Create and apply text styles says (#1829); a layer's effect binding takes only a field its effect has; Go to main component on an instance of a library component opens the library file in a tab and selects the main there; glass effects take variables; Delete on a layer inside an instance hides it as an override instead of being refused, as the help center says: "Figma will only toggle the layer's visibility instead of removing it"; library analytics list how many layers and files use each style and variable; SwiftUI and Compose code names a bound variable by its iOS or Android code syntax; library analytics count insertions and show insertions and detachments over the past 30 days, 90 days or year; a collection of this file can be extended (Extend collection on its row, `variable.extendCollection`), its extension following its edits at once, and extended collections extend again in the file; a typed or stored variable, collection or mode id names only the object with that id (#1613); colour variables can be calculated from other colours per mode — `{alpha}` replaces a colour's alpha, `{mix}` blends two — and follow them (#1280); stored variable and collection references keep their identity when another object is named like their id (follow-up to #1542); a component set's property rows fit the 240 px right panel: variant values wrap two to a line there and every + and − stays in view; opening a file contacts no team library server it names until you check it (#1097); an explicit variables file path (`variable.import`, the `variables` of `file.open` and `file.import`) is refused past 256 MiB or when it isn't a regular file, as the sibling `variables.json` already was (part of #1114); component properties keep the order they were made in when one is renamed, and Make slot asks for the slot's name first (#1536, #1537); components can't contain their own instances, directly or through others (#1084); the instance-swap menus have a search field (#1338); an instance-swap property's default menu scrolls (#1338); variables on a text style's fields from the style editor; instance-swap properties in the component playground; duplicating or Alt-dragging a main component makes an instance of it (#892); a bound colour variable's alpha applies once (#802); variables import reads `variables` outside `meta` and warns when it imports none (#790); variant properties reorder by drag; library files saved right after a read are read again; Hide when publishing note corrected; size and resizing overrides of layers inside instances (#731); variables export in the browser as a download; core editor leftovers: component playground, variables inside styles; layers and assets panels behaviour suite and fixes; extended collections tail; styles and variables behaviour suite and fixes; components behaviour suite and fixes; team libraries on the server, library usage and swapping a library; extended collections, variables import/export, gradient stops and variant properties bound to variables) · **Target:** Figma Design (desktop app 126.10.7)
+> **Last reviewed:** 2026-10-10 · **Last updated:** 2026-11-14 · **Change:** minor (renaming a variable group to a path with `/` nests it under a parent group instead of turning the slash into a hyphen (#2353); a group's context menu in the Local variables window has Duplicate group, a copy named after it plus " 2" holding a copy of every variable, in one undo step (#2084); pages take a variable mode: with nothing selected the Design panel's Page section shows a Variable modes section, Auto or a mode of each collection that has more than one, as the help center says ("Apply variable mode" in the Page section of the right sidebar) (#2215); a text style binds a number variable to its weight (#2174); an instance lists only the properties its variant's layers use and long property names are cut to one line (#2022); with several layers selected the Design panel header's component button offers Create multiple components (#2088); the Local variables window selects several variables (click, Shift+click for a range, Cmd/Ctrl+click to toggle, Escape to clear) and delete, move to a group and scope act on the selected local variables in one undo step (#2002); text styles carry paragraph spacing and indent, the list style and the OpenType features, as the Supported in text styles table of Create and apply text styles says (#1829); a layer's effect binding takes only a field its effect has; Go to main component on an instance of a library component opens the library file in a tab and selects the main there; glass effects take variables; Delete on a layer inside an instance hides it as an override instead of being refused, as the help center says: "Figma will only toggle the layer's visibility instead of removing it"; library analytics list how many layers and files use each style and variable; SwiftUI and Compose code names a bound variable by its iOS or Android code syntax; library analytics count insertions and show insertions and detachments over the past 30 days, 90 days or year; a collection of this file can be extended (Extend collection on its row, `variable.extendCollection`), its extension following its edits at once, and extended collections extend again in the file; a typed or stored variable, collection or mode id names only the object with that id (#1613); colour variables can be calculated from other colours per mode — `{alpha}` replaces a colour's alpha, `{mix}` blends two — and follow them (#1280); stored variable and collection references keep their identity when another object is named like their id (follow-up to #1542); a component set's property rows fit the 240 px right panel: variant values wrap two to a line there and every + and − stays in view; opening a file contacts no team library server it names until you check it (#1097); an explicit variables file path (`variable.import`, the `variables` of `file.open` and `file.import`) is refused past 256 MiB or when it isn't a regular file, as the sibling `variables.json` already was (part of #1114); component properties keep the order they were made in when one is renamed, and Make slot asks for the slot's name first (#1536, #1537); components can't contain their own instances, directly or through others (#1084); the instance-swap menus have a search field (#1338); an instance-swap property's default menu scrolls (#1338); variables on a text style's fields from the style editor; instance-swap properties in the component playground; duplicating or Alt-dragging a main component makes an instance of it (#892); a bound colour variable's alpha applies once (#802); variables import reads `variables` outside `meta` and warns when it imports none (#790); variant properties reorder by drag; library files saved right after a read are read again; Hide when publishing note corrected; size and resizing overrides of layers inside instances (#731); variables export in the browser as a download; core editor leftovers: component playground, variables inside styles; layers and assets panels behaviour suite and fixes; extended collections tail; styles and variables behaviour suite and fixes; components behaviour suite and fixes; team libraries on the server, library usage and swapping a library; extended collections, variables import/export, gradient stops and variant properties bound to variables) · **Target:** Figma Design (desktop app 126.10.7)
 
 Design systems are why teams adopt Figma. **Components: breadth ~96%, ready ~72%. Styles and
 variables: breadth ~95%, ready ~76% (estimated).** QA'd with a synthetic design system of ~300
@@ -81,6 +81,7 @@ updates with overrides kept: `library_tests.rs`, `components_scale_tests.rs`.
 
 | Date | Change | Summary |
 |---|---|---|
+| 2026-11-14 | patch | M3, #2353: renaming a group in the Local variables window to a path with `/` nests it, as in Figma: `Orange` renamed to `Palette/Orange` moves its variables to `Palette/Orange/100`… and the sidebar shows Orange indented under a new Palette group, where the slash used to become a hyphen (`Palette-Orange`). The typed path replaces the group's last part (a nested group stays in its parent), each part is trimmed and empty parts are dropped; a rename onto a variable name that stays is refused with nothing changed, and it is one undo step. Tests: `variables_select_tests::renaming_a_group_with_a_slash_nests_it_in_a_new_parent_group_in_one_undo_step` and the group rename tests beside it, `variables_panel::tests`. Grade unchanged. |
 | 2026-11-07 | minor | M3, #2084: a group's context menu in the Local variables window has Duplicate group (after Rename group, before Delete group). It adds a group named after the original plus " 2" (the next free number when taken: " 3"), whose variables are copies of the originals with the same leaf names, values in every mode, description, scopes, hidden-from-publishing and code syntax, each sent as `variable.duplicate` plus a rename in one `command.batch` labelled Duplicate group, so one undo step. Measured in the incumbent with one mode; an alias to a variable of the same group keeps pointing at the original. Ungroup is not built. Tests: `variables_select_tests` (headless UI). Grade unchanged |
 | 2026-11-07 | minor | M3, #2082: Edit variables in the context menu of a selection of several local variables opens the reference's compact editor with two tabs: Details holds only Hide from publishing, Scope the scopes every selected variable's type has (All supported properties and one box per scope; a selection that shares none says so). Each box is checked when all selected variables have it, empty when none, and shows a dash when they differ; a click sets it on all (or clears it when checked on all), each change one `command.batch`, so one undo step. Names, descriptions and code syntax stay single-variable, as in the reference. The Scope: menu entries stay. A tri-state `widgets::checkbox_tri` draws the dash. Tests: `variables_select_tests` (headless UI). Grade unchanged |
 | 2026-11-12 | minor | M7, #2215: pages take a variable mode: with nothing selected the Design panel's Page section shows a Variable modes section, Auto or a mode of each collection that has more than one, as the help center says ("Apply variable mode" in the Page section of the right sidebar) (#2215). The same section the frames' Variable modes use (`variable.setMode` without layers sets the page's mode), one undo step per pick. Binding the page background to a variable is not in the reference and is not offered |