diff --git a/dll/win32/shell32/utils.cpp b/dll/win32/shell32/utils.cpp
index 746ca144036..5b044082662 100644
--- a/dll/win32/shell32/utils.cpp
+++ b/dll/win32/shell32/utils.cpp
@@ -2262,6 +2262,84 @@ SHELL32_ReparentAsAliasPidl(
     return (*ppidlNew != NULL);
 }
 
+/*************************************************************************
+ *              SHSetLocalizedName (SHELL32.@)
+ *
+ * https://learn.microsoft.com/en-us/windows/win32/api/shellapi/nf-shellapi-shsetlocalizedname
+ */
+EXTERN_C
+HRESULT WINAPI
+SHSetLocalizedName(
+    _In_ PCWSTR pszPath,
+    _In_ PCWSTR pszResModule,
+    _In_ INT idsRes)
+{
+    HRESULT hr;
+    IShellFolder *pDesktop = NULL, *pParent = NULL;
+    LPITEMIDLIST pidl = NULL;
+    LPCITEMIDLIST pidlLast;
+    HANDLE hProcessHeap;
+    INT cchShortMax, cchShort, cchName;
+    PWSTR pszShortPath = NULL, pszName = NULL;
+
+    hr = SHCoInitializeAnyApartment();
+    if (FAILED_UNEXPECTEDLY(hr))
+        return hr;
+
+    hr = SHGetDesktopFolder(&pDesktop);
+    if (FAILED_UNEXPECTEDLY(hr))
+        goto Cleanup;
+
+    hr = pDesktop->ParseDisplayName(NULL, NULL, (PWSTR)pszPath, NULL, &pidl, NULL);
+    if (FAILED_UNEXPECTEDLY(hr))
+        goto Cleanup;
+
+    hr = SHBindToParent(pidl, IID_PPV_ARG(IShellFolder, &pParent), &pidlLast);
+    if (FAILED_UNEXPECTEDLY(hr))
+        goto Cleanup;
+
+    hProcessHeap = GetProcessHeap();
+    cchShortMax = lstrlenW(pszResModule) + 1;
+    pszShortPath = (PWSTR)HeapAlloc(hProcessHeap, 0, cchShortMax * sizeof(WCHAR));
+    if (!pszShortPath)
+    {
+        hr = E_OUTOFMEMORY;
+        goto Cleanup;
+    }
+
+    cchShort = GetShortPathNameW(pszResModule, pszShortPath, cchShortMax);
+    if (cchShort)
+        pszResModule = pszShortPath;
+    else
+        cchShort = cchShortMax;
+
+    /* 14 == '@' + ',' + '-' + (digits of max width 10) + NUL */
+    cchName = cchShort + 14;
+    pszName = (PWSTR)HeapAlloc(hProcessHeap, 0, cchName * sizeof(WCHAR));
+    if (!pszName)
+    {
+        hr = E_OUTOFMEMORY;
+        goto Cleanup;
+    }
+
+    wnsprintfW(pszName, cchName, L"@%s,%d", pszResModule, -idsRes);
+    hr = pParent->SetNameOf(NULL, pidlLast, pszName, 0, NULL);
+
+Cleanup:
+    if (pszName)
+        HeapFree(hProcessHeap, 0, pszName);
+    if (pszShortPath)
+        HeapFree(hProcessHeap, 0, pszShortPath);
+    if (pParent)
+        pParent->Release();
+    if (pidl)
+        SHFree(pidl);
+    if (pDesktop)
+        pDesktop->Release();
+    CoUninitialize();
+    return hr;
+}
+
 //! Translate a PIDL to an "alias" PIDL.
 EXTERN_C HRESULT
 SHELL32_AliasTranslatePidl(
diff --git a/dll/win32/shell32/wine/shellord.c b/dll/win32/shell32/wine/shellord.c
index 1a39573a372..a613afeb81c 100644
--- a/dll/win32/shell32/wine/shellord.c
+++ b/dll/win32/shell32/wine/shellord.c
@@ -2630,6 +2630,8 @@ HRESULT WINAPI SHStartNetConnectionDialog(HWND hwnd, LPCSTR pszRemoteName, DWORD
     return S_OK;
 #endif
 }
+
+#ifndef __REACTOS__ /* See ../utils.cpp */
 /*************************************************************************
  *              SHSetLocalizedName (SHELL32.@)
  */
@@ -2639,6 +2641,7 @@ HRESULT WINAPI SHSetLocalizedName(LPCWSTR pszPath, LPCWSTR pszResModule, int ids
 
     return S_OK;
 }
+#endif
 
 #ifndef __REACTOS__ // See ../utils.cpp
 /*************************************************************************
diff --git a/sdk/include/psdk/shellapi.h b/sdk/include/psdk/shellapi.h
index ba9fda4585e..331da984854 100644
--- a/sdk/include/psdk/shellapi.h
+++ b/sdk/include/psdk/shellapi.h
@@ -684,6 +684,12 @@ SHGetUnreadMailCountW(
     _Out_writes_opt_(cchShellExecuteCommand) PWSTR pszShellExecuteCommand,
     _In_ INT cchShellExecuteCommand);
 
+HRESULT WINAPI
+SHSetLocalizedName(
+    _In_ PCWSTR pszPath,
+    _In_ PCWSTR pszResModule,
+    _In_ INT idsRes);
+
 #ifdef UNICODE
 #define NOTIFYICONDATA_V1_SIZE NOTIFYICONDATAW_V1_SIZE
 #define NOTIFYICONDATA_V2_SIZE NOTIFYICONDATAW_V2_SIZE