diff --git a/src/app/workspace/page.tsx b/src/app/workspace/page.tsx
index d9a4302..7615d84 100644
--- a/src/app/workspace/page.tsx
+++ b/src/app/workspace/page.tsx
@@ -14,8 +14,18 @@ import {
 } from "@/lib/workspace";
 
 export default function Workspace() {
-  const { workspace, loadWorkspace, updateEntity, setWorkspace } =
-    useWorkspace();
+  const {
+    workspace,
+    loadWorkspace,
+    updateEntity,
+    setWorkspace,
+    addEntity,
+    addGroup,
+    renameEntity,
+    deleteEntity,
+    removeNode,
+    renameGroup,
+  } = useWorkspace();
 
   const [route, setRoute] = useState<Route>({});
 
@@ -120,6 +130,12 @@ export default function Workspace() {
       workspace={workspace}
       setRoute={setRoute}
       setWorkspace={setWorkspace}
+      addEntity={addEntity}
+      addGroup={addGroup}
+      renameEntity={renameEntity}
+      deleteEntity={deleteEntity}
+      removeNode={removeNode}
+      renameGroup={renameGroup}
     >
       <SidebarTrigger className="w-full px-4">
         <div className="px-4">
diff --git a/src/components/sidebar/AppSidebar.tsx b/src/components/sidebar/AppSidebar.tsx
index c22bb41..aecb03a 100644
--- a/src/components/sidebar/AppSidebar.tsx
+++ b/src/components/sidebar/AppSidebar.tsx
@@ -36,7 +36,6 @@ import { ChevronDown } from "lucide-react";
 import { Route, SetState, Workspace } from "@/lib/types";
 import { listWorkspaces, saveWorkspaceToLocalStorage } from "@/lib/workspace";
 import { openFileDialog } from "@/lib/import";
-import { useWorkspace } from "@/hooks/workspace";
 
 // Simple ID generator
 const id = (prefix = "t") =>
@@ -47,7 +46,17 @@ type AppSidebarProps = {
   workspace: Workspace;
   setRoute: SetState<Route>;
   /** optional setter for the current workspace, used for rename */
-  setWorkspace?: React.Dispatch<React.SetStateAction<Workspace | undefined>>;
+  setWorkspace: React.Dispatch<React.SetStateAction<Workspace | undefined>>;
+  addEntity: (
+    type: "todo" | "doc",
+    parentGroupId: string | null,
+    name?: string,
+  ) => string | undefined;
+  addGroup: (name: string | undefined, parentGroupId: string | null) => string;
+  renameEntity: (entityId: string, newName: string) => void;
+  deleteEntity: (entityId: string) => void;
+  removeNode: (id: string) => void;
+  renameGroup: (id: string, name: string) => void;
 };
 
 export default function AppSidebar({
@@ -55,8 +64,14 @@ export default function AppSidebar({
   workspace,
   setRoute,
   setWorkspace,
+  addEntity,
+  addGroup,
+  renameEntity,
+  deleteEntity,
+  removeNode,
+  renameGroup,
 }: AppSidebarProps) {
-  const { addEntity, addGroup, renameEntity } = useWorkspace();
+  // actions are passed from parent `useWorkspace` instance
 
   const [availableWorkspaces, setAvailableWorkspaces] = React.useState<
     Workspace[]
@@ -64,6 +79,11 @@ export default function AppSidebar({
 
   const [isRenameOpen, setIsRenameOpen] = React.useState(false);
   const [proposedName, setProposedName] = React.useState(workspace.name);
+  const [isCreateOpen, setIsCreateOpen] = React.useState(false);
+  const [createMode, setCreateMode] = React.useState<"list" | "doc" | "group">(
+    "list",
+  );
+  const [createValue, setCreateValue] = React.useState("");
 
   React.useEffect(() => {
     setProposedName(workspace.name);
@@ -163,44 +183,27 @@ export default function AppSidebar({
                   <DropdownMenuSeparator />
                   <DropdownMenuItem
                     onSelect={() => {
-                      const name = window.prompt(
-                        "Name for new list",
-                        "New list",
-                      );
-                      const id = addEntity("todo", null);
-                      if (id && name) {
-                        // rename newly created entity
-                        // obtain hook function
-                        // import renameEntity above
-                        renameEntity(id, name);
-                      }
-                      if (id) setRoute({ workspace: workspace.id, entity: id });
+                      setCreateMode("list");
+                      setCreateValue("New list");
+                      setIsCreateOpen(true);
                     }}
                   >
                     New list (root)
                   </DropdownMenuItem>
                   <DropdownMenuItem
                     onSelect={() => {
-                      const name = window.prompt(
-                        "Name for new document",
-                        "New doc",
-                      );
-                      const id = addEntity("doc", null);
-                      if (id && name) {
-                        renameEntity(id, name);
-                      }
-                      if (id) setRoute({ workspace: workspace.id, entity: id });
+                      setCreateMode("doc");
+                      setCreateValue("New doc");
+                      setIsCreateOpen(true);
                     }}
                   >
                     New doc (root)
                   </DropdownMenuItem>
                   <DropdownMenuItem
                     onSelect={() => {
-                      const name = window.prompt(
-                        "Name for new group",
-                        "New group",
-                      );
-                      addGroup(name || "New group", null);
+                      setCreateMode("group");
+                      setCreateValue("New group");
+                      setIsCreateOpen(true);
                     }}
                   >
                     New group (root)
@@ -231,6 +234,12 @@ export default function AppSidebar({
                 node={node}
                 workspace={workspace}
                 setRoute={setRoute}
+                addEntity={addEntity}
+                addGroup={addGroup}
+                renameEntity={renameEntity}
+                deleteEntity={deleteEntity}
+                removeNode={removeNode}
+                renameGroup={renameGroup}
               />
             ))}
           </SidebarMenu>
@@ -270,6 +279,55 @@ export default function AppSidebar({
           </DialogFooter>
         </DialogContent>
       </Dialog>
+      {/* create dialog */}
+      <Dialog open={isCreateOpen} onOpenChange={setIsCreateOpen}>
+        <DialogContent>
+          <DialogHeader>
+            <DialogTitle>
+              {createMode === "group"
+                ? "Create group"
+                : createMode === "doc"
+                  ? "Create document"
+                  : "Create list"}
+            </DialogTitle>
+            <DialogDescription>
+              {createMode === "group" && "Provide a name for the new group."}
+              {createMode === "doc" && "Provide a name for the new document."}
+              {createMode === "list" && "Provide a name for the new list."}
+            </DialogDescription>
+          </DialogHeader>
+          <Input
+            value={createValue}
+            onChange={(e) => setCreateValue(e.target.value)}
+            className="w-full"
+          />
+          <DialogFooter>
+            <Button variant="outline" onClick={() => setIsCreateOpen(false)}>
+              Cancel
+            </Button>
+            <Button
+              onClick={() => {
+                if (createMode === "group") {
+                  addGroup?.(createValue || "New group", null);
+                } else if (createMode === "doc") {
+                  const id = addEntity?.("doc", null, createValue || "New doc");
+                  if (id) setRoute({ workspace: workspace.id, entity: id });
+                } else {
+                  const id = addEntity?.(
+                    "todo",
+                    null,
+                    createValue || "New list",
+                  );
+                  if (id) setRoute({ workspace: workspace.id, entity: id });
+                }
+                setIsCreateOpen(false);
+              }}
+            >
+              Create
+            </Button>
+          </DialogFooter>
+        </DialogContent>
+      </Dialog>
     </SidebarProvider>
   );
 }
diff --git a/src/components/sidebar/Entity.tsx b/src/components/sidebar/Entity.tsx
index 2ea73e6..cfc1993 100644
--- a/src/components/sidebar/Entity.tsx
+++ b/src/components/sidebar/Entity.tsx
@@ -12,7 +12,6 @@ import {
 import { Collapsible, CollapsibleContent } from "../ui/collapsible";
 import { ChevronDown, MoreHorizontal } from "lucide-react";
 import { Route, Workspace, LayoutNode } from "@/lib/types";
-import { useWorkspace } from "@/hooks/workspace";
 import {
   DropdownMenu,
   DropdownMenuContent,
@@ -36,18 +35,29 @@ type Props = {
   node: LayoutNode;
   workspace: Workspace;
   setRoute: (route: Route) => void;
+  addEntity: (
+    type: "todo" | "doc",
+    parentGroupId: string | null,
+    name?: string,
+  ) => string | undefined;
+  addGroup: (name: string | undefined, parentGroupId: string | null) => string;
+  renameEntity: (entityId: string, newName: string) => void;
+  deleteEntity: (entityId: string) => void;
+  removeNode: (id: string) => void;
+  renameGroup: (id: string, name: string) => void;
 };
 
-export default function EntitySwitch({ node, workspace, setRoute }: Props) {
-  const {
-    renameEntity,
-    deleteEntity,
-    addEntity,
-    addGroup,
-    removeNode,
-    renameGroup,
-  } = useWorkspace();
-
+export default function EntitySwitch({
+  node,
+  workspace,
+  setRoute,
+  addEntity,
+  addGroup,
+  renameEntity,
+  deleteEntity,
+  removeNode,
+  renameGroup,
+}: Props) {
   const [menuOpen, setMenuOpen] = useState(false);
   const [dialogOpen, setDialogOpen] = useState(false);
   const [dialogValue, setDialogValue] = useState("");
@@ -74,11 +84,7 @@ export default function EntitySwitch({ node, workspace, setRoute }: Props) {
       renameEntity(node.entityId, dialogValue);
     } else if (dialogMode === "add-item") {
       const parentId = node.type === "group" ? node.id : null;
-      const id = addEntity("todo", parentId);
-      // optionally could rename newly created entity name
-      if (id && dialogValue) {
-        renameEntity(id, dialogValue);
-      }
+      addEntity("todo", parentId, dialogValue || "New list");
     } else if (dialogMode === "add-group") {
       const parentId = node.type === "group" ? node.id : null;
       addGroup(dialogValue || "New group", parentId);
@@ -144,6 +150,12 @@ export default function EntitySwitch({ node, workspace, setRoute }: Props) {
                       node={child}
                       workspace={workspace}
                       setRoute={setRoute}
+                      addEntity={addEntity}
+                      addGroup={addGroup}
+                      renameEntity={renameEntity}
+                      deleteEntity={deleteEntity}
+                      removeNode={removeNode}
+                      renameGroup={renameGroup}
                     />
                   ))}
                 </SidebarMenu>
diff --git a/src/hooks/workspace.ts b/src/hooks/workspace.ts
index 72a182f..2551d45 100644
--- a/src/hooks/workspace.ts
+++ b/src/hooks/workspace.ts
@@ -13,18 +13,19 @@ export function useWorkspace() {
   const [workspace, setWorkspace] = useState<Workspace>();
 
   const updateEntity = (entityId: EntityId, updater: (e: Entity) => Entity) => {
-    setWorkspace((prev) =>
-      prev
-        ? {
-            ...prev,
-            entities: {
-              ...prev.entities,
-              [entityId]: updater(prev.entities[entityId]),
-            },
-            updatedAt: Date.now(),
-          }
-        : undefined,
-    );
+    setWorkspace((prev) => {
+      if (!prev) return prev;
+      const current = prev.entities[entityId];
+      if (!current) return prev;
+      return {
+        ...prev,
+        entities: {
+          ...prev.entities,
+          [entityId]: updater(current),
+        },
+        updatedAt: Date.now(),
+      };
+    });
   };
 
   const renameEntity = (entityId: EntityId, newName: string) => {
@@ -46,8 +47,11 @@ export function useWorkspace() {
     });
   };
 
-  const addEntity = (type: "todo" | "doc", parentGroupId: string | null) => {
-    if (!workspace) return;
+  const addEntity = (
+    type: "todo" | "doc",
+    parentGroupId: string | null,
+    name?: string,
+  ) => {
     const now = Date.now();
     const id = crypto.randomUUID();
     let entity: Entity;
@@ -55,7 +59,7 @@ export function useWorkspace() {
       entity = {
         id,
         type: "todo",
-        name: "New list",
+        name: name || "New list",
         config: { statuses: [] },
         tags: {},
         tasks: {},
@@ -66,7 +70,7 @@ export function useWorkspace() {
       entity = {
         id,
         type: "doc",
-        name: "New doc",
+        name: name || "New doc",
         content: { version: "2.28.0", time: now, blocks: [] },
         createdAt: now,
         updatedAt: now,