diff --git a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryManager.java b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryManager.java
index 06e7b307146..d35c562ea30 100644
--- a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryManager.java
+++ b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryManager.java
@@ -30,6 +30,7 @@
 import java.util.stream.Collectors;
 
 import static com.google.common.base.MoreObjects.firstNonNull;
+import static com.google.common.base.Strings.isNullOrEmpty;
 import static java.util.Objects.requireNonNull;
 import static org.eclipse.che.api.factory.shared.Constants.HTML_SNIPPET_TYPE;
 import static org.eclipse.che.api.factory.shared.Constants.IFRAME_SNIPPET_TYPE;
@@ -42,8 +43,12 @@
 @Singleton
 public class FactoryManager {
 
+    private final FactoryDao factoryDao;
+
     @Inject
-    private FactoryDao factoryDao;
+    public FactoryManager(FactoryDao factoryDao) {
+        this.factoryDao = factoryDao;
+    }
 
     /**
      * Stores {@link Factory} instance.
@@ -82,6 +87,9 @@ public Factory saveFactory(Factory factory, Set<FactoryImage> images) throws Con
         requireNonNull(factory);
         final FactoryImpl newFactory = new FactoryImpl(factory, images);
         newFactory.setId(NameGenerator.generate("factory", 16));
+        if (isNullOrEmpty(newFactory.getName())) {
+           newFactory.setName(NameGenerator.generate("f", 9));
+        }
         return factoryDao.create(newFactory);
     }
 
diff --git a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryManagerTest.java b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryManagerTest.java
new file mode 100644
index 00000000000..ec4ba6aa695
--- /dev/null
+++ b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryManagerTest.java
@@ -0,0 +1,49 @@
+/*******************************************************************************
+ * Copyright (c) 2012-2017 Codenvy, S.A.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ *   Codenvy, S.A. - initial API and implementation
+ *******************************************************************************/
+package org.eclipse.che.api.factory.server;
+
+import org.eclipse.che.api.factory.server.model.impl.FactoryImpl;
+import org.eclipse.che.api.factory.server.spi.FactoryDao;
+import org.mockito.ArgumentCaptor;
+import org.mockito.Captor;
+import org.mockito.InjectMocks;
+import org.mockito.Mock;
+import org.mockito.testng.MockitoTestNGListener;
+import org.testng.annotations.Listeners;
+import org.testng.annotations.Test;
+
+import static com.google.common.base.Strings.isNullOrEmpty;
+import static org.mockito.Mockito.verify;
+import static org.testng.Assert.assertFalse;
+
+/**
+ * @author Max Shaposhnik (mshaposhnik@codenvy.com) on 3/20/17.
+ */
+@Listeners(value = {MockitoTestNGListener.class})
+public class FactoryManagerTest {
+
+    @Mock
+    private FactoryDao factoryDao;
+
+    @InjectMocks
+    private FactoryManager factoryManager;
+
+    @Captor
+    private ArgumentCaptor<FactoryImpl> factoryCaptor;
+
+    @Test
+    public void shouldGenerateNameOnFactoryCreation() throws Exception {
+        final FactoryImpl factory = FactoryImpl.builder().generateId().build();
+        factoryManager.saveFactory(factory);
+        verify(factoryDao).create(factoryCaptor.capture());
+        assertFalse(isNullOrEmpty(factoryCaptor.getValue().getName()));
+    }
+}
diff --git a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/spi/tck/FactoryDaoTest.java b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/spi/tck/FactoryDaoTest.java
index dd9d1d2ad2f..5dd1beb6283 100644
--- a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/spi/tck/FactoryDaoTest.java
+++ b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/spi/tck/FactoryDaoTest.java
@@ -131,15 +131,14 @@ public void shouldThrowConflictExceptionWhenCreatingFactoryWithExistingId() thro
         factoryDao.create(factory);
     }
 
-    // TODO fix after issue: https://github.com/eclipse/che/issues/2110
-//    @Test(expectedExceptions = ConflictException.class)
-//    public void shouldThrowConflictExceptionWhenCreatingFactoryWithExistingNameAndUserId() throws Exception {
-//        final FactoryImpl factory = createFactory(10, users[0].getId());
-//        final FactoryImpl existing = factories[0];
-//        factory.getCreator().setUserId(existing.getCreator().getUserId());
-//        factory.setName(existing.getName());
-//        factoryDao.create(factory);
-//    }
+    @Test(expectedExceptions = ConflictException.class)
+    public void shouldThrowConflictExceptionWhenCreatingFactoryWithExistingNameAndUserId() throws Exception {
+        final FactoryImpl factory = createFactory(10, users[0].getId());
+        final FactoryImpl existing = factories[0];
+        factory.getCreator().setUserId(existing.getCreator().getUserId());
+        factory.setName(existing.getName());
+        factoryDao.create(factory);
+    }
 
     @Test
     public void shouldUpdateFactory() throws Exception {
@@ -160,14 +159,13 @@ public void shouldUpdateFactory() throws Exception {
         assertEquals(factoryDao.getById(update.getId()), update);
     }
 
-// TODO fix after issue: https://github.com/eclipse/che/issues/2110
-//    @Test(expectedExceptions = ConflictException.class)
-//    public void shouldThrowConflictExceptionWhenUpdateFactoryWithExistingNameAndUserId() throws Exception {
-//        final FactoryImpl update = factories[0];
-//        update.setName(factories[1].getName());
-//        update.getCreator().setUserId(factories[1].getCreator().getUserId());
-//        factoryDao.update(update);
-//    }
+    @Test(expectedExceptions = ConflictException.class)
+    public void shouldThrowConflictExceptionWhenUpdateFactoryWithExistingNameAndUserId() throws Exception {
+        final FactoryImpl update = factories[0];
+        update.setName(factories[1].getName());
+        update.getCreator().setUserId(factories[1].getCreator().getUserId());
+        factoryDao.update(update);
+    }
 
     @Test(expectedExceptions = NullPointerException.class)
     public void shouldThrowNpeWhenFactoryUpdateIsNull() throws Exception {
diff --git a/wsmaster/che-core-sql-schema/src/main/resources/che-schema/5.6.0/1__add_factory.sql b/wsmaster/che-core-sql-schema/src/main/resources/che-schema/5.6.0/1__add_factory.sql
index 821562cd2d6..1dd19a523d7 100644
--- a/wsmaster/che-core-sql-schema/src/main/resources/che-schema/5.6.0/1__add_factory.sql
+++ b/wsmaster/che-core-sql-schema/src/main/resources/che-schema/5.6.0/1__add_factory.sql
@@ -150,6 +150,7 @@ ALTER TABLE che_factory ADD CONSTRAINT fk_che_f_user_id FOREIGN KEY (user_id) RE
 ALTER TABLE che_factory ADD CONSTRAINT fk_che_f_workspace_id FOREIGN KEY (workspace_id) REFERENCES workspaceconfig (id);
 ALTER TABLE che_factory ADD CONSTRAINT fk_che_f_button_id FOREIGN KEY (button_id) REFERENCES che_factory_button (id);
 ALTER TABLE che_factory ADD CONSTRAINT fk_che_f_ide_id FOREIGN KEY (ide_id) REFERENCES che_factory_ide (id);
+CREATE UNIQUE INDEX index_che_factory_name_user_id ON che_factory (user_id, name);
 --------------------------------------------------------------------------------