diff --git a/hgext/mq.py b/hgext/mq.py
--- a/hgext/mq.py
+++ b/hgext/mq.py
@@ -1651,13 +1651,6 @@ def rename(ui, repo, patch, name=None, *
         name = patch
         patch = None
 
-    if name in q.series:
-        raise util.Abort(_('A patch named %s already exists in the series file') % name)
-
-    absdest = q.join(name)
-    if os.path.exists(absdest):
-        raise util.Abort(_('%s already exists') % absdest)
-    
     if patch:
         patch = q.lookup(patch)
     else:
@@ -1665,6 +1658,15 @@ def rename(ui, repo, patch, name=None, *
             ui.write(_('No patches applied\n'))
             return
         patch = q.lookup('qtip')
+    absdest = q.join(name)
+    if os.path.isdir(absdest):
+        name = os.path.join(name, os.path.basename(patch))
+        absdest = q.join(name)
+    if os.path.exists(absdest):
+        raise util.Abort(_('%s already exists') % absdest)
+    
+    if name in q.series:
+        raise util.Abort(_('A patch named %s already exists in the series file') % name)
 
     if ui.verbose:
         ui.write('Renaming %s to %s\n' % (patch, name))
diff --git a/tests/test-mq-qrename b/tests/test-mq-qrename
new file mode 100755
--- /dev/null
+++ b/tests/test-mq-qrename
@@ -0,0 +1,25 @@
+#!/bin/sh
+
+echo "[extensions]" >> $HGRCPATH
+echo "mq=" >> $HGRCPATH
+
+hg init a
+cd a
+
+echo 'base' > base
+hg ci -Ambase -d '1 0'
+
+hg qnew -mmqbase mqbase
+hg qrename mqbase renamed
+mkdir .hg/patches/foo
+hg qrename renamed foo
+hg qseries
+ls .hg/patches/foo
+mkdir .hg/patches/bar
+hg qrename foo/renamed bar
+hg qseries
+ls .hg/patches/bar
+hg qrename bar/renamed baz
+hg qseries
+ls .hg/patches/baz
+
diff --git a/tests/test-mq-qrename.out b/tests/test-mq-qrename.out
new file mode 100644
--- /dev/null
+++ b/tests/test-mq-qrename.out
@@ -0,0 +1,7 @@
+adding base
+foo/renamed
+renamed
+bar/renamed
+renamed
+baz
+.hg/patches/baz