diff --git a/src/vs/workbench/contrib/files/browser/views/explorerViewer.ts b/src/vs/workbench/contrib/files/browser/views/explorerViewer.ts
index 79836599b9e613f0383704e7d7706bd3714a00f2..f2f985c8bef6c6745f476e7e0546afe62d4d0fd5 100644
--- a/src/vs/workbench/contrib/files/browser/views/explorerViewer.ts
+++ b/src/vs/workbench/contrib/files/browser/views/explorerViewer.ts
@@ -445,12 +445,15 @@ export class FilesRenderer implements ICompressibleTreeRenderer<ExplorerItem, Fu
 			DOM.addStandardDisposableListener(inputBox.inputElement, DOM.EventType.KEY_UP, (e: IKeyboardEvent) => {
 				showInputBoxNotification();
 			}),
-			DOM.addDisposableListener(inputBox.inputElement, DOM.EventType.BLUR, () => {
-				done(inputBox.isInputValid(), true);
-			}),
 			label,
 			styler
 		];
+		setTimeout(() => {
+			// Do not react immediatly on blur events due to tree refresh potentially causing an early blur #96566
+			toDispose.push(DOM.addDisposableListener(inputBox.inputElement, DOM.EventType.BLUR, () => {
+				done(inputBox.isInputValid(), true);
+			}));
+		}, 100);
 
 		return toDisposable(() => {
 			done(false, false);