diff --git a/openpype/hosts/blender/api/plugin.py b/openpype/hosts/blender/api/plugin.py
index 568d8f6695..b1ff3e4a09 100644
--- a/openpype/hosts/blender/api/plugin.py
+++ b/openpype/hosts/blender/api/plugin.py
@@ -36,6 +36,12 @@ def prepare_scene_name(
     if namespace:
         name = f"{name}_{namespace}"
     name = f"{name}_{subset}"
+
+    # Blender name for a collection or object cannot be longer than 63
+    # characters. If the name is longer, it will raise an error.
+    if len(name) > 63:
+        raise ValueError(f"Scene name '{name}' would be too long.")
+
     return name
 
 
@@ -226,7 +232,7 @@ class BaseCreator(Creator):
 
         # Create asset group
         if AYON_SERVER_ENABLED:
-            asset_name = instance_data["folderPath"]
+            asset_name = instance_data["folderPath"].split("/")[-1]
         else:
             asset_name = instance_data["asset"]
 
@@ -305,12 +311,16 @@ class BaseCreator(Creator):
                 )
                 return
 
-            # Rename the instance node in the scene if subset or asset changed
+            # Rename the instance node in the scene if subset or asset changed.
+            # Do not rename the instance if the family is workfile, as the
+            # workfile instance is included in the AVALON_CONTAINER collection.
             if (
                 "subset" in changes.changed_keys
                 or asset_name_key in changes.changed_keys
-            ):
+            ) and created_instance.family != "workfile":
                 asset_name = data[asset_name_key]
+                if AYON_SERVER_ENABLED:
+                    asset_name = asset_name.split("/")[-1]
                 name = prepare_scene_name(
                     asset=asset_name, subset=data["subset"]
                 )
diff --git a/openpype/hosts/blender/plugins/load/load_animation.py b/openpype/hosts/blender/plugins/load/load_animation.py
index 3e7f808903..fd087553f0 100644
--- a/openpype/hosts/blender/plugins/load/load_animation.py
+++ b/openpype/hosts/blender/plugins/load/load_animation.py
@@ -61,5 +61,10 @@ class BlendAnimationLoader(plugin.AssetLoader):
 
         bpy.data.objects.remove(container)
 
-        library = bpy.data.libraries.get(bpy.path.basename(libpath))
+        filename = bpy.path.basename(libpath)
+        # Blender has a limit of 63 characters for any data name.
+        # If the filename is longer, it will be truncated.
+        if len(filename) > 63:
+            filename = filename[:63]
+        library = bpy.data.libraries.get(filename)
         bpy.data.libraries.remove(library)
diff --git a/openpype/hosts/blender/plugins/load/load_blend.py b/openpype/hosts/blender/plugins/load/load_blend.py
index f437e66795..2d5ac18149 100644
--- a/openpype/hosts/blender/plugins/load/load_blend.py
+++ b/openpype/hosts/blender/plugins/load/load_blend.py
@@ -106,7 +106,12 @@ class BlendLoader(plugin.AssetLoader):
             bpy.context.scene.collection.objects.link(obj)
 
         # Remove the library from the blend file
-        library = bpy.data.libraries.get(bpy.path.basename(libpath))
+        filepath = bpy.path.basename(libpath)
+        # Blender has a limit of 63 characters for any data name.
+        # If the filepath is longer, it will be truncated.
+        if len(filepath) > 63:
+            filepath = filepath[:63]
+        library = bpy.data.libraries.get(filepath)
         bpy.data.libraries.remove(library)
 
         return container, members
diff --git a/openpype/hosts/blender/plugins/load/load_blendscene.py b/openpype/hosts/blender/plugins/load/load_blendscene.py
index 6cc7f39d03..fba0245af1 100644
--- a/openpype/hosts/blender/plugins/load/load_blendscene.py
+++ b/openpype/hosts/blender/plugins/load/load_blendscene.py
@@ -60,7 +60,12 @@ class BlendSceneLoader(plugin.AssetLoader):
         bpy.context.scene.collection.children.link(container)
 
         # Remove the library from the blend file
-        library = bpy.data.libraries.get(bpy.path.basename(libpath))
+        filepath = bpy.path.basename(libpath)
+        # Blender has a limit of 63 characters for any data name.
+        # If the filepath is longer, it will be truncated.
+        if len(filepath) > 63:
+            filepath = filepath[:63]
+        library = bpy.data.libraries.get(filepath)
         bpy.data.libraries.remove(library)
 
         return container, members