diff --git a/RainmeterStudio.Core/Model/Project.cs b/RainmeterStudio.Core/Model/Project.cs
index 363c03e8..9636c4d9 100644
--- a/RainmeterStudio.Core/Model/Project.cs
+++ b/RainmeterStudio.Core/Model/Project.cs
@@ -223,7 +223,7 @@ namespace RainmeterStudio.Core.Model
         /// </summary>
         public Project()
         {
-            Root = new Reference(String.Empty);
+            Root = new Reference(String.Empty, Reference.ReferenceTargetKind.Project);
             VariableFiles = new ObservableCollection<Reference>();
             Version = new Version();
             MinimumRainmeter = new Version("3.1");
diff --git a/RainmeterStudio.Core/Model/Reference.cs b/RainmeterStudio.Core/Model/Reference.cs
index 1412f3da..30a4cd58 100644
--- a/RainmeterStudio.Core/Model/Reference.cs
+++ b/RainmeterStudio.Core/Model/Reference.cs
@@ -2,7 +2,9 @@
 using System.Collections.Generic;
 using System.Collections.ObjectModel;
 using System.Collections.Specialized;
+using System.ComponentModel;
 using System.Diagnostics;
+using System.IO;
 using System.Linq;
 using System.Text;
 using System.Xml.Serialization;
@@ -14,9 +16,52 @@ namespace RainmeterStudio.Core.Model
     /// Reference to a file or folder
     /// </summary>
     [DebuggerDisplay("QualifiedName = {QualifiedName}, StoragePath = {StoragePath}")]
-    public class Reference : INotifyCollectionChanged
+    public class Reference : INotifyCollectionChanged, INotifyPropertyChanged
     {
+        /// <summary>
+        /// The kind of item the reference points to
+        /// </summary>
+        public enum ReferenceTargetKind
+        {
+            /// <summary>
+            /// Invalid state
+            /// </summary>
+            None,
+
+            /// <summary>
+            /// Reference points to a file
+            /// </summary>
+            File,
+
+            /// <summary>
+            /// Reference points to a directory
+            /// </summary>
+            Directory,
+
+            /// <summary>
+            /// Reference points to a project
+            /// </summary>
+            Project
+        }
+
         private Dictionary<string, Reference> _children;
+        private Reference _parent;
+        private string _name, _storagePath;
+        private ReferenceTargetKind _kind;
+        
+        #region Events
+
+        /// <summary>
+        /// Triggered when children are added or removed.
+        /// </summary>
+        public event NotifyCollectionChangedEventHandler CollectionChanged;
+
+        /// <summary>
+        /// Triggered when a property changes its value
+        /// </summary>
+        public event PropertyChangedEventHandler PropertyChanged;
+
+        #endregion
 
         #region Properties
 
@@ -24,7 +69,30 @@ namespace RainmeterStudio.Core.Model
         /// Gets or sets the parent of this reference
         /// </summary>
         [XmlIgnore]
-        public Reference Parent { get; set; }
+        public Reference Parent
+        {
+            get
+            {
+                return _parent;
+            }
+            set
+            {
+                // Unsubscribe from old parent
+                if (_parent != null)
+                    _parent.PropertyChanged -= Parent_PropertyChanged;
+
+                // Set new parent
+                _parent = value;
+
+                // Subscribe to new parent
+                if (_parent != null)
+                    _parent.PropertyChanged += Parent_PropertyChanged;
+
+                // Notify
+                if (PropertyChanged != null)
+                    PropertyChanged(this, new PropertyChangedEventArgs("Parent"));
+            }
+        }
 
         /// <summary>
         /// Gets the children references
@@ -34,7 +102,7 @@ namespace RainmeterStudio.Core.Model
         {
             get
             {
-                return new ReadOnlyDictionary<string,Reference>(_children);
+                return new ReadOnlyDictionary<string, Reference>(_children);
             }
         }
 
@@ -61,7 +129,17 @@ namespace RainmeterStudio.Core.Model
         [XmlAttribute("name")]
         public string Name
         {
-            get; set;
+            get
+            {
+                return _name;
+            }
+            set
+            {
+                _name = value;
+
+                if (PropertyChanged != null)
+                    PropertyChanged(this, new PropertyChangedEventArgs("Name"));
+            }
         }
 
         /// <summary>
@@ -110,8 +188,33 @@ namespace RainmeterStudio.Core.Model
         [XmlAttribute("storagePath")]
         public string StoragePath
         {
-            get;
-            set;
+            get
+            {
+                return _storagePath;
+            }
+            set
+            {
+                _storagePath = value;
+
+                if (PropertyChanged != null)
+                    PropertyChanged(this, new PropertyChangedEventArgs("StoragePath"));
+            }
+        }
+
+        [XmlAttribute("targetKind")]
+        public ReferenceTargetKind TargetKind
+        {
+            get
+            {
+                return _kind;
+            }
+            set
+            {
+                _kind = value;
+
+                if (PropertyChanged != null)
+                    PropertyChanged(this, new PropertyChangedEventArgs("Kind"));
+            }
         }
 
         #endregion
@@ -119,19 +222,31 @@ namespace RainmeterStudio.Core.Model
         #region Constructors
 
         /// <summary>
-        /// Initializes the reference
+        /// Initializes the reference as a file reference
         /// </summary>
         public Reference()
-            : this(null, null)
+            : this(null, null, ReferenceTargetKind.File)
         {
         }
 
         /// <summary>
         /// Initializes the reference
         /// </summary>
-        /// <param name="projectPath">Project path to item referenced</param>
-        public Reference(string name)
-            : this(name, null)
+        /// <param name="name">Name of this reference</param>
+        /// <param name="kind">Reference kind</param>
+        public Reference(string name, ReferenceTargetKind kind)
+            : this(name, null, kind)
+        {
+        }
+
+        /// <summary>
+        /// Initializes the reference.
+        /// Kind is inferred by testing the file on disk.
+        /// </summary>
+        /// <param name="name">Name of reference</param>
+        /// <param name="storagePath">Path to item on disk</param>
+        public Reference(string name, string storagePath)
+            : this(name, storagePath, InferKind(storagePath))
         {
         }
 
@@ -140,24 +255,37 @@ namespace RainmeterStudio.Core.Model
         /// </summary>
         /// <param name="name">Name of reference</param>
         /// <param name="storagePath">Path to item on disk</param>
-        public Reference(string name, string storagePath)
+        /// <param name="kind">Reference kind</param>
+        public Reference(string name, string storagePath, ReferenceTargetKind kind)
         {
             StoragePath = storagePath;
             Name = name;
+            TargetKind = kind;
             _children = new Dictionary<string, Reference>();
         }
 
         #endregion
 
+        #region Exists
+
         /// <summary>
-        /// Checks if the reference has a file on disk
+        /// Checks if the file exists
         /// </summary>
         /// <returns></returns>
-        public bool IsOnStorage()
+        public bool ExistsOnStorage()
         {
-            return (StoragePath != null);
+            if (StoragePath != null)
+            {
+                return File.Exists(StoragePath) || Directory.Exists(StoragePath);
+            }
+
+            return false;
         }
 
+        #endregion
+
+        #region Children/parenting operations
+
         /// <summary>
         /// Adds a child reference
         /// </summary>
@@ -241,6 +369,16 @@ namespace RainmeterStudio.Core.Model
             }
         }
 
+        private void Parent_PropertyChanged(object sender, PropertyChangedEventArgs e)
+        {
+            if (PropertyChanged != null && (e.PropertyName == "Parent" || e.PropertyName == "Name" || e.PropertyName == "QualifiedName"))
+                PropertyChanged(this, new PropertyChangedEventArgs("QualifiedName"));
+        }
+
+        #endregion
+
+        #region Object overrides
+
         /// <summary>
         /// Compares a reference to another objects
         /// </summary>
@@ -275,10 +413,27 @@ namespace RainmeterStudio.Core.Model
             return QualifiedName;
         }
 
-        /// <summary>
-        /// Triggered when children are added or removed.
-        /// </summary>
-        public event NotifyCollectionChangedEventHandler CollectionChanged;
+        #endregion
+
+        #region Helper methods
+
+        private static ReferenceTargetKind InferKind(string storagePath)
+        {
+            ReferenceTargetKind kind = ReferenceTargetKind.None;
+
+            if (Path.GetExtension(storagePath) == ".rsproj")
+                kind = ReferenceTargetKind.Project;
+
+            else if (File.Exists(storagePath))
+                kind = ReferenceTargetKind.File;
+
+            else if (Directory.Exists(storagePath))
+                kind = ReferenceTargetKind.Directory;
+
+            return kind;
+        }
+
+        #endregion
     }
 
     /// <summary>
diff --git a/RainmeterStudio.Tests/Model/ReferenceTest.cs b/RainmeterStudio.Tests/Model/ReferenceTest.cs
index f9573653..f12d6e6e 100644
--- a/RainmeterStudio.Tests/Model/ReferenceTest.cs
+++ b/RainmeterStudio.Tests/Model/ReferenceTest.cs
@@ -20,8 +20,8 @@ namespace RainmeterStudio.Tests.Model
         [TestMethod]
         public void ReferenceConstructorTest()
         {
-            Reference root = new Reference("root", "D:\\Data\\Project");
-            Reference file = new Reference("f ile__asdf.txt");
+            Reference root = new Reference("root", "D:\\Data\\Project", Reference.ReferenceTargetKind.Directory);
+            Reference file = new Reference("f ile__asdf.txt", Reference.ReferenceTargetKind.File);
                         
             // Test root
             Assert.AreEqual("root", root.Name);
@@ -45,11 +45,11 @@ namespace RainmeterStudio.Tests.Model
         public void ReferenceParentingTest()
         {
             Reference root = new Reference(String.Empty, "D:\\Data\\Project");
-            Reference folder1 = new Reference("folder1");
-            Reference folder2 = new Reference("folder 2");
-            Reference file1 = new Reference("file1");
-            Reference file2 = new Reference("file2.txt");
-            Reference file3 = new Reference("file 3.png");
+            Reference folder1 = new Reference("folder1", Reference.ReferenceTargetKind.Directory);
+            Reference folder2 = new Reference("folder 2", Reference.ReferenceTargetKind.Directory);
+            Reference file1 = new Reference("file1", Reference.ReferenceTargetKind.File);
+            Reference file2 = new Reference("file2.txt", Reference.ReferenceTargetKind.File);
+            Reference file3 = new Reference("file 3.png", Reference.ReferenceTargetKind.File);
 
             root.Add(folder1);
             root.Add(file3);
@@ -87,11 +87,11 @@ namespace RainmeterStudio.Tests.Model
         public void ReferenceQualifiedNameTest()
         {
             Reference root = new Reference(String.Empty, "D:\\Data\\Project");
-            Reference folder1 = new Reference("folder1");
-            Reference folder2 = new Reference("folder 2");
-            Reference file1 = new Reference("file1");
-            Reference file2 = new Reference("file2.txt");
-            Reference file3 = new Reference("file 3.png");
+            Reference folder1 = new Reference("folder1", Reference.ReferenceTargetKind.Directory);
+            Reference folder2 = new Reference("folder 2", Reference.ReferenceTargetKind.Directory);
+            Reference file1 = new Reference("file1", Reference.ReferenceTargetKind.File);
+            Reference file2 = new Reference("file2.txt", Reference.ReferenceTargetKind.File);
+            Reference file3 = new Reference("file 3.png", Reference.ReferenceTargetKind.File);
 
             root.Add(folder1);
             root.Add(file3);
@@ -134,11 +134,11 @@ namespace RainmeterStudio.Tests.Model
         public void ReferenceGetReferenceTest()
         {
             Reference root = new Reference(String.Empty, "D:\\Data\\Project");
-            Reference folder1 = new Reference("folder1");
-            Reference folder2 = new Reference("folder 2");
-            Reference file1 = new Reference("file1");
-            Reference file2 = new Reference("file2.txt");
-            Reference file3 = new Reference("file 3.png");
+            Reference folder1 = new Reference("folder1", Reference.ReferenceTargetKind.Directory);
+            Reference folder2 = new Reference("folder 2", Reference.ReferenceTargetKind.Directory);
+            Reference file1 = new Reference("file1", Reference.ReferenceTargetKind.File);
+            Reference file2 = new Reference("file2.txt", Reference.ReferenceTargetKind.File);
+            Reference file3 = new Reference("file 3.png", Reference.ReferenceTargetKind.File);
 
             root.Add(folder1);
             root.Add(file3);
diff --git a/RainmeterStudio/RainmeterStudio.csproj b/RainmeterStudio/RainmeterStudio.csproj
index 6bde3587..bfe10553 100644
--- a/RainmeterStudio/RainmeterStudio.csproj
+++ b/RainmeterStudio/RainmeterStudio.csproj
@@ -98,10 +98,12 @@
     </Compile>
     <Compile Include="Editor\ProjectEditor\ProjectStorage.cs" />
     <Compile Include="UI\Command.cs" />
+    <Compile Include="UI\CommandGroup.cs" />
     <Compile Include="UI\Controller\IconProvider.cs" />
     <Compile Include="UI\Controller\IContextMenuProvider.cs" />
     <Compile Include="UI\Controller\ProjectController.cs" />
     <Compile Include="Business\SettingsProvider.cs" />
+    <Compile Include="UI\Controller\ReferenceContextMenuProvider.cs" />
     <Compile Include="UI\Dialogs\CloseUnsavedDialog.xaml.cs">
       <DependentUpon>CloseUnsavedDialog.xaml</DependentUpon>
     </Compile>
diff --git a/RainmeterStudio/UI/Controller/DocumentController.cs b/RainmeterStudio/UI/Controller/DocumentController.cs
index 14fab78b..d429b0f0 100644
--- a/RainmeterStudio/UI/Controller/DocumentController.cs
+++ b/RainmeterStudio/UI/Controller/DocumentController.cs
@@ -210,7 +210,7 @@ namespace RainmeterStudio.UI.Controller
         /// </summary>
         public bool Save(IDocumentEditor editor)
         {
-            if (editor.AttachedDocument.Reference.IsOnStorage())
+            if (editor.AttachedDocument.Reference != null)
             {
                 DocumentManager.Save(editor.AttachedDocument);
                 return true;
diff --git a/RainmeterStudio/UI/Controller/IconProvider.cs b/RainmeterStudio/UI/Controller/IconProvider.cs
index 8b3f4128..1025985d 100644
--- a/RainmeterStudio/UI/Controller/IconProvider.cs
+++ b/RainmeterStudio/UI/Controller/IconProvider.cs
@@ -33,7 +33,7 @@ namespace RainmeterStudio.UI.Controller
             string key = "ProjectItem";
 
             // Is a file?
-            if (File.Exists(item.StoragePath))
+            if (item.TargetKind == Reference.ReferenceTargetKind.File || item.TargetKind == Reference.ReferenceTargetKind.Project)
             {
                 if (String.IsNullOrEmpty(Path.GetExtension(item.StoragePath)))
                     key += "Unknown";
@@ -43,7 +43,7 @@ namespace RainmeterStudio.UI.Controller
             }
 
             // Not a file, try to figure out if a directory
-            else if (item.Count > 0 || Directory.Exists(item.StoragePath))
+            else if (item.TargetKind == Reference.ReferenceTargetKind.Directory)
             {
                 key += "Directory";
             }
diff --git a/RainmeterStudio/UI/ViewModel/ReferenceViewModel.cs b/RainmeterStudio/UI/ViewModel/ReferenceViewModel.cs
index 0d9533aa..e3126868 100644
--- a/RainmeterStudio/UI/ViewModel/ReferenceViewModel.cs
+++ b/RainmeterStudio/UI/ViewModel/ReferenceViewModel.cs
@@ -35,17 +35,6 @@ namespace RainmeterStudio.UI.ViewModel
             }
         }
 
-        /// <summary>
-        /// Gets or sets the path
-        /// </summary>
-        public string Path
-        {
-            get
-            {
-                return Reference.StoragePath;
-            }
-        }
-
         /// <summary>
         /// Gets an enumerable of this object's children
         /// </summary>
@@ -120,9 +109,16 @@ namespace RainmeterStudio.UI.ViewModel
         {
             Reference = reference;
             Reference.CollectionChanged += Reference_CollectionChanged;
+            Reference.PropertyChanged += Reference_PropertyChanged;
             RefreshChildren();
         }
 
+        private void Reference_PropertyChanged(object sender, PropertyChangedEventArgs e)
+        {
+            if (e.PropertyName == "Name" && PropertyChanged != null)
+                PropertyChanged(this, new PropertyChangedEventArgs("Name"));
+        }
+
         private void Reference_CollectionChanged(object sender, NotifyCollectionChangedEventArgs e)
         {
             List<ReferenceViewModel> newItems = new List<ReferenceViewModel>();