diff --git a/editor/gui/scene_tree_editor.cpp b/editor/gui/scene_tree_editor.cpp
index 575cce96f72..d299e8bb4b8 100644
--- a/editor/gui/scene_tree_editor.cpp
+++ b/editor/gui/scene_tree_editor.cpp
@@ -1439,9 +1439,32 @@ void SceneTreeEditor::rename_node(Node *p_node, const String &p_name, TreeItem *
 		item = _find(tree->get_root(), p_node->get_path());
 	}
 	ERR_FAIL_NULL(item);
-	String new_name = p_name.validate_node_name();
+	bool check_for_unique_name_token = !p_name.is_empty() && p_name[0] == '%';
+	String substr_name = p_name;
 
-	if (new_name != p_name) {
+	if (check_for_unique_name_token) {
+		substr_name = p_name.substr(1);
+
+		// No need to do anything else with this if already unique.
+		if (p_node->is_unique_name_in_owner()) {
+			check_for_unique_name_token = false;
+			// Do not set scene root as unique.
+		} else if (get_tree()->get_edited_scene_root() == p_node) {
+			check_for_unique_name_token = false;
+			String text = TTR("Root nodes cannot be accessed as unique names in their own scene. Instantiate in another scene and set as unique name there.");
+			if (error->is_visible()) {
+				error->set_text(error->get_text() + "\n\n" + text);
+			} else {
+				error->set_text(text);
+				error->popup_centered();
+			}
+		}
+	}
+
+	String new_name = substr_name.validate_node_name();
+
+	// If p_name only has "%" at the beginning and no other invalid characters, do not error.
+	if (new_name != substr_name) {
 		String text = TTR("Invalid node name, the following characters are not allowed:") + "\n" + String::get_invalid_node_name_characters();
 		if (error->is_visible()) {
 			if (!error->get_meta("invalid_character", false)) {
@@ -1482,12 +1505,16 @@ void SceneTreeEditor::rename_node(Node *p_node, const String &p_name, TreeItem *
 	new_name = p_node->get_parent()->prevalidate_child_name(p_node, new_name);
 	if (new_name == p_node->get_name()) {
 		item->set_text(0, new_name);
-		return;
+		// If setting name as unique, check for existing unique node below first.
+		if (!check_for_unique_name_token) {
+			return;
+		}
 	}
 
 	// We previously made sure name is not the same as current name
 	// so that it won't complain about already used unique name when not changing name.
-	if (p_node->is_unique_name_in_owner() && get_tree()->get_edited_scene_root()->get_node_or_null("%" + new_name)) {
+	if ((check_for_unique_name_token || p_node->is_unique_name_in_owner()) && get_tree()->get_edited_scene_root()->get_node_or_null("%" + new_name)) {
+		check_for_unique_name_token = false;
 		String text = vformat(TTR("A node with the unique name %s already exists in this scene."), new_name);
 		if (error->is_visible()) {
 			if (!error->get_meta("same_unique_name", false)) {
@@ -1501,17 +1528,43 @@ void SceneTreeEditor::rename_node(Node *p_node, const String &p_name, TreeItem *
 			error->popup_centered();
 		}
 		item->set_text(0, p_node->get_name());
+		if (p_node->is_unique_name_in_owner()) {
+			return;
+		}
+	}
+
+	// If same name and check_for_unique_name_token is still true, now set as unique.
+	// This is separate from final action so "Rename Node" is not added to undo history.
+	if (new_name == p_node->get_name()) {
+		if (check_for_unique_name_token) {
+			if (!is_scene_tree_dock) {
+				p_node->set_unique_name_in_owner(true);
+			} else {
+				EditorUndoRedoManager *undo_redo = EditorUndoRedoManager::get_singleton();
+				undo_redo->create_action(TTR("Enable Scene Unique Name(s)"));
+				undo_redo->add_undo_method(p_node, "set_unique_name_in_owner", false);
+				undo_redo->add_do_method(p_node, "set_unique_name_in_owner", true);
+				undo_redo->commit_action();
+			}
+		}
 		return;
 	}
 
 	if (!is_scene_tree_dock) {
 		p_node->set_name(new_name);
+		if (check_for_unique_name_token) {
+			p_node->set_unique_name_in_owner(true);
+		}
 		item->set_metadata(0, p_node->get_path());
 		emit_signal(SNAME("node_renamed"));
 	} else {
 		EditorUndoRedoManager *undo_redo = EditorUndoRedoManager::get_singleton();
 		undo_redo->create_action(TTR("Rename Node"), UndoRedo::MERGE_DISABLE, p_node);
 
+		if (check_for_unique_name_token) {
+			undo_redo->add_undo_method(p_node, "set_unique_name_in_owner", false);
+		}
+
 		emit_signal(SNAME("node_prerename"), p_node, new_name);
 
 		undo_redo->add_undo_method(p_node, "set_name", p_node->get_name());
@@ -1523,6 +1576,10 @@ void SceneTreeEditor::rename_node(Node *p_node, const String &p_name, TreeItem *
 		undo_redo->add_do_method(item, "set_metadata", 0, p_node->get_path());
 		undo_redo->add_do_method(item, "set_text", 0, new_name);
 
+		if (check_for_unique_name_token) {
+			undo_redo->add_do_method(p_node, "set_unique_name_in_owner", true);
+		}
+
 		undo_redo->commit_action();
 	}
 }