diff --git a/backend/src/build-system/__tests__/test.copy-project-template.spec.ts b/backend/src/build-system/__tests__/test.copy-project-template.spec.ts
new file mode 100644
index 00000000..0b59c934
--- /dev/null
+++ b/backend/src/build-system/__tests__/test.copy-project-template.spec.ts
@@ -0,0 +1,17 @@
+import { copyProjectTemplate } from 'src/build-system/utils/files';
+import { promises as fs } from 'fs';
+import { v4 as uuidv4 } from 'uuid';
+import { getTemplatePath } from 'src/config/common-path';
+import { Logger } from '@nestjs/common';
+
+describe('Copy Project Template', () => {
+  it('should copy the template to the specified UUID folder', async () => {
+    const templatePath = getTemplatePath('template-backend');
+    const projectUUID = uuidv4();
+
+    Logger.log('template-path:', templatePath);
+    const projectPath = await copyProjectTemplate(templatePath, projectUUID);
+    expect(await fs.access(projectPath)).toBeUndefined(); // Project folder exists
+    await fs.rm(projectPath, { recursive: true, force: true });
+  });
+});
diff --git a/backend/src/build-system/handlers/project-init.ts b/backend/src/build-system/handlers/project-init.ts
index 88b12746..9a50b63d 100644
--- a/backend/src/build-system/handlers/project-init.ts
+++ b/backend/src/build-system/handlers/project-init.ts
@@ -1,12 +1,15 @@
 import { BuilderContext } from '../context';
 import { BuildHandlerManager } from '../hanlder-manager';
 import { BuildHandler, BuildResult } from '../types';
+import { Logger } from '@nestjs/common';
 
 export class ProjectInitHandler implements BuildHandler {
   readonly id = 'op:PROJECT::STATE:SETUP';
+  private readonly logger = new Logger('ProjectInitHandler');
 
   async run(context: BuilderContext): Promise<BuildResult> {
-    console.log('Setting up project...');
+    this.logger.log('Setting up project...');
+
     const result = {
       projectName: 'online shoping',
       descreption: 'sell products',
@@ -14,6 +17,7 @@ export class ProjectInitHandler implements BuildHandler {
       path: '/path/to/project',
     };
     context.setGlobalContext('projectConfig', result);
+
     return {
       success: true,
       data: result,
diff --git a/backend/src/build-system/utils/files.ts b/backend/src/build-system/utils/files.ts
index 3a72318a..8ae2fc92 100644
--- a/backend/src/build-system/utils/files.ts
+++ b/backend/src/build-system/utils/files.ts
@@ -1,5 +1,6 @@
 import { Logger } from '@nestjs/common';
-import fs from 'fs-extra';
+import * as fs from 'fs-extra';
+import { getProjectPath } from 'src/config/common-path';
 
 const logger = new Logger('file-utils');
 /**
@@ -24,3 +25,42 @@ export async function saveGeneratedCode(
     throw error;
   }
 }
+
+/**
+ * Copies a project template to a specific location under a given UUID folder.
+ *
+ * @param templatePath - The path to the project template containing files.
+ * @param projectUUID - The UUID of the project folder.
+ * @returns The path to the copied project directory.
+ */
+export async function copyProjectTemplate(
+  templatePath: string,
+  projectUUID: string,
+): Promise<string> {
+  try {
+    // Validate the template path
+    const templateExists = await fs
+      .access(templatePath)
+      .then(() => true)
+      .catch(() => false);
+    if (!templateExists) {
+      throw new Error(`Template path does not exist: ${templatePath}`);
+    }
+
+    // Resolve the destination path and ensure path exist
+    const destinationPath = getProjectPath(projectUUID);
+
+    // Copy the template to the destination
+    logger.log(
+      `Copying template from ${templatePath} to ${destinationPath}...`,
+    );
+    await fs.copy(templatePath, destinationPath);
+
+    // Return the destination path
+    logger.log(`Template copied successfully to ${destinationPath}`);
+    return destinationPath;
+  } catch (error) {
+    logger.error('Error copying project template:', error);
+    throw error;
+  }
+}
diff --git a/backend/src/config/common-path.ts b/backend/src/config/common-path.ts
index b51d58e8..6de9809b 100644
--- a/backend/src/config/common-path.ts
+++ b/backend/src/config/common-path.ts
@@ -1,12 +1,15 @@
 import * as path from 'path';
-import * as os from 'os';
 import { existsSync, mkdirSync, promises } from 'fs-extra';
-import { createHash } from 'crypto';
 
 // Constants for base directories
 const APP_NAME = 'codefox';
-const ROOT_DIR = path.join(os.homedir(), `.${APP_NAME}`);
+// TODO: hack way to get the root directory of the workspace
+const WORKSPACE_ROOT = path.resolve(__dirname, '../../../');
+const ROOT_DIR = path.join(WORKSPACE_ROOT, `.${APP_NAME}`);
 
+export const TEMPLATE_PATH = path.join(WORKSPACE_ROOT, 'backend/template');
+export const getTemplatePath = (templateName: string): string =>
+  path.join(TEMPLATE_PATH, templateName);
 // Utility function to ensure a directory exists
 const ensureDir = (dirPath: string): string => {
   if (!existsSync(dirPath)) {
diff --git a/frontend/src/config/common-path.ts b/frontend/src/config/common-path.ts
index 40ca5559..ed989604 100644
--- a/frontend/src/config/common-path.ts
+++ b/frontend/src/config/common-path.ts
@@ -1,4 +1,4 @@
-import path from 'path';
+import * as path from 'path';
 import { existsSync, mkdirSync, promises as fsPromises } from 'fs-extra';
 import { createHash } from 'crypto';