diff --git a/.github/workflows/changelog.yml b/.github/workflows/changelog.yml
deleted file mode 100644
index 735b955..0000000
--- a/.github/workflows/changelog.yml
+++ /dev/null
@@ -1,37 +0,0 @@
-name: Changelog CI
-
-on:
-  pull_request:
-    types: [ opened ]
-
-  # Optionally you can use `workflow_dispatch` to run Changelog CI Manually
-  workflow_dispatch:
-    inputs:
-      release_version:
-        description: 'Set Release Version'
-        required: true
-
-jobs:
-  build:
-    runs-on: ubuntu-latest
-
-    steps:
-      # Checks-out your repository
-      - uses: actions/checkout@v2
-
-      - name: Run Changelog CI
-        uses: saadmk11/changelog-ci@v1.1.2
-        with:
-          # Optional, only required when you want more customization
-          # e.g: group your changelog by labels with custom titles,
-          # different version prefix, pull request title and version number regex etc.
-          # config file can be in JSON or YAML format.
-          config_file: changelog-ci-config.yaml
-          # Optional, only required when you want to run Changelog CI
-          # on an event other than `pull_request` event.
-          # In this example `release_version` is fetched from `workflow_dispatch` events input.
-          # You can use any other method to fetch the release version
-          # such as environment variable or from output of another action
-          release_version: ${{ github.event.inputs.release_version }}
-          # Optional
-          github_token: ${{ secrets.GITHUB_TOKEN }}
diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index df56fbd..bd7da7d 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -10,7 +10,6 @@ repos:
     -   id: end-of-file-fixer
     -   id: check-yaml
     -   id: check-toml
-    -   id: check-added-large-files
 
 -   repo: local
     hooks:
diff --git a/CHANGELOG.md b/CHANGELOG.md
index ae5dc28..fa7eccb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,13 @@
 # Changelog
 
+## v.1.1.2 (2025-09-05)
+
+### Improvements
+
+- add a feature of `fastkit init`, `fastkit startdemo` command to define to make a new project folder at current working directory
+- add `setuptools` package at `fastapi-empty` template's dependency list.
+- add a feature of `fastkit addroute`command to recognize current working project (with cmd option `.`).
+
 ## v1.1.1 (2025-08-15)
 
 ### Improvements
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 0199aa5..9f60f38 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -29,6 +29,10 @@ FastAPI-fastkit uses following stacks:
 - isort for import sorting
 - mypy for static type checking
 
+### Current Source Structure (Version 1.X.X+)
+
+![fastkit diagram](docs/img/fastkit_diagram.png)
+
 ### Quick Setup with Makefile
 
 The easiest way to set up your development environment is using our Makefile:
diff --git a/docs/img/fastkit_diagram.png b/docs/img/fastkit_diagram.png
new file mode 100644
index 0000000..4354ea5
Binary files /dev/null and b/docs/img/fastkit_diagram.png differ
diff --git a/src/fastapi_fastkit/__init__.py b/src/fastapi_fastkit/__init__.py
index cfe29f6..e4569fb 100644
--- a/src/fastapi_fastkit/__init__.py
+++ b/src/fastapi_fastkit/__init__.py
@@ -1,4 +1,4 @@
-__version__ = "1.1.1"
+__version__ = "1.1.2"
 
 import os
 
diff --git a/src/fastapi_fastkit/backend/main.py b/src/fastapi_fastkit/backend/main.py
index 8e3ff53..a1ae960 100644
--- a/src/fastapi_fastkit/backend/main.py
+++ b/src/fastapi_fastkit/backend/main.py
@@ -7,10 +7,15 @@
 import re
 from typing import Dict, List
 
+import click
+
 from fastapi_fastkit import console
 from fastapi_fastkit.backend.package_managers import PackageManagerFactory
-from fastapi_fastkit.backend.transducer import copy_and_convert_template_file
-from fastapi_fastkit.core.exceptions import BackendExceptions, TemplateExceptions
+from fastapi_fastkit.backend.transducer import (
+    copy_and_convert_template,
+    copy_and_convert_template_file,
+)
+from fastapi_fastkit.core.exceptions import BackendExceptions
 from fastapi_fastkit.core.settings import settings
 from fastapi_fastkit.utils.logging import debug_log, get_logger
 from fastapi_fastkit.utils.main import (
@@ -697,3 +702,68 @@ def add_new_route(project_dir: str, route_name: str) -> None:
         debug_log(f"Unexpected error while adding route {route_name}: {e}", "error")
         handle_exception(e, f"Error adding new route: {str(e)}")
         raise BackendExceptions(f"Failed to add new route: {str(e)}")
+
+
+# ------------------------------------------------------------
+# Create Project Folder Functions
+# ------------------------------------------------------------
+
+
+def ask_create_project_folder(project_name: str) -> bool:
+    """
+    Ask user whether to create a new project folder.
+
+    :param project_name: Name of the project
+    :return: True if user wants to create a folder, False otherwise
+    """
+    return click.confirm(
+        f"\nCreate a new project folder named '{project_name}'?\n"
+        f"Yes: Templates will be placed in './{project_name}/'\n"
+        f"No: Templates will be placed in current directory",
+        default=True,
+    )
+
+
+def deploy_template_with_folder_option(
+    target_template: str, user_local: str, project_name: str, create_folder: bool
+) -> tuple[str, str]:
+    """
+    Deploy template based on folder creation option.
+
+    :param target_template: Path to template directory
+    :param user_local: User's workspace directory
+    :param project_name: Name of the project
+    :param create_folder: Whether to create a new folder
+    :return: Tuple of (project_dir, deployment_message)
+    """
+    if create_folder:
+        project_dir = os.path.join(user_local, project_name)
+        deployment_message = f"FastAPI template project will deploy at '{user_local}' in folder '{project_name}'"
+        copy_and_convert_template(target_template, user_local, project_name)
+    else:
+        project_dir = user_local
+        deployment_message = (
+            f"FastAPI template project will deploy directly at '{user_local}'"
+        )
+        copy_and_convert_template(target_template, user_local, "")
+
+    click.echo(deployment_message)
+    return project_dir, deployment_message
+
+
+def get_deployment_success_message(
+    template: str, project_name: str, user_local: str, create_folder: bool
+) -> str:
+    """
+    Get appropriate success message based on deployment option.
+
+    :param template: Template name used
+    :param project_name: Name of the project
+    :param user_local: User's workspace directory
+    :param create_folder: Whether folder was created
+    :return: Success message string
+    """
+    if create_folder:
+        return f"FastAPI project '{project_name}' from '{template}' has been created and saved to {user_local}!"
+    else:
+        return f"FastAPI project '{project_name}' from '{template}' has been deployed directly to {user_local}!"
diff --git a/src/fastapi_fastkit/cli.py b/src/fastapi_fastkit/cli.py
index f338565..1293b0f 100644
--- a/src/fastapi_fastkit/cli.py
+++ b/src/fastapi_fastkit/cli.py
@@ -1,3 +1,4 @@
+# TODO : add a feature to automatically fix appropriate fastkit output console size
 # --------------------------------------------------------------------------
 # The Module defines main and core CLI operations for FastAPI-fastkit.
 #
@@ -17,14 +18,16 @@
 
 from fastapi_fastkit.backend.main import (
     add_new_route,
+    ask_create_project_folder,
     create_venv_with_manager,
+    deploy_template_with_folder_option,
     find_template_core_modules,
     generate_dependency_file_with_manager,
+    get_deployment_success_message,
     inject_project_metadata,
     install_dependencies_with_manager,
     read_template_stack,
 )
-from fastapi_fastkit.backend.transducer import copy_and_convert_template
 from fastapi_fastkit.core.exceptions import CLIExceptions
 from fastapi_fastkit.core.settings import FastkitConfig
 from fastapi_fastkit.utils.logging import get_logger, setup_logging
@@ -191,6 +194,7 @@ def startdemo(
     """
     Create a new FastAPI project from templates and inject metadata.
     """
+    # TODO : add --template-name option to specify the template name
     settings = ctx.obj["settings"]
 
     template_dir = settings.FASTKIT_TEMPLATE_ROOT
@@ -258,25 +262,27 @@ def startdemo(
         print_error("Project creation aborted!")
         return
 
+    # Ask user whether to create a new project folder
+    create_project_folder = ask_create_project_folder(project_name)
+
     try:
         user_local = settings.USER_WORKSPACE
-        project_dir = os.path.join(user_local, project_name)
-
-        click.echo(f"FastAPI template project will deploy at '{user_local}'")
 
-        copy_and_convert_template(target_template, user_local, project_name)
+        project_dir, _ = deploy_template_with_folder_option(
+            target_template, user_local, project_name, create_project_folder
+        )
 
         inject_project_metadata(
             project_dir, project_name, author, author_email, description
         )
 
-        # Create virtual environment and install dependencies with selected package manager
         venv_path = create_venv_with_manager(project_dir, package_manager)
         install_dependencies_with_manager(project_dir, venv_path, package_manager)
 
-        print_success(
-            f"FastAPI project '{project_name}' from '{template}' has been created and saved to {user_local}!"
+        success_message = get_deployment_success_message(
+            template, project_name, user_local, create_project_folder
         )
+        print_success(success_message)
 
     except Exception as e:
         if settings.DEBUG_MODE:
@@ -323,8 +329,11 @@ def init(
 ) -> None:
     """
     Start a empty FastAPI project setup.
+
     This command will automatically create a new FastAPI project directory and a python virtual environment.
+
     Dependencies will be automatically installed based on the selected stack at venv.
+
     Project metadata will be injected to the project files.
     """
     settings = ctx.obj["settings"]
@@ -402,13 +411,15 @@ def init(
         print_error("Project creation aborted!")
         return
 
+    # Ask user whether to create a new project folder
+    create_project_folder = ask_create_project_folder(project_name)
+
     try:
         user_local = settings.USER_WORKSPACE
-        project_dir = os.path.join(user_local, project_name)
-
-        click.echo(f"FastAPI project will deploy at '{user_local}'")
 
-        copy_and_convert_template(target_template, user_local, project_name)
+        project_dir, _ = deploy_template_with_folder_option(
+            target_template, user_local, project_name, create_project_folder
+        )
 
         inject_project_metadata(
             project_dir, project_name, author, author_email, description
@@ -439,9 +450,10 @@ def init(
         venv_path = create_venv_with_manager(project_dir, package_manager)
         install_dependencies_with_manager(project_dir, venv_path, package_manager)
 
-        print_success(
-            f"FastAPI project '{project_name}' has been created successfully and saved to {user_local}!"
+        success_message = get_deployment_success_message(
+            template, project_name, user_local, create_project_folder
         )
+        print_success(success_message)
 
         print_info(
             "To start your project, run 'fastkit runserver' at newly created FastAPI project directory"
@@ -457,25 +469,43 @@ def init(
 
 
 @fastkit_cli.command()
-@click.argument("project_name")
 @click.argument("route_name")
+@click.argument("project_dir", default=".")
 @click.pass_context
-def addroute(ctx: Context, project_name: str, route_name: str) -> None:
+def addroute(ctx: Context, route_name: str, project_dir: str) -> None:
     """
     Add a new route to the FastAPI project.
+
+    Examples:\n
+        fastkit addroute user .          # Add 'user' route to current directory
+        fastkit addroute user my_project # Add 'user' route to 'my_project' in workspace
     """
     settings = ctx.obj["settings"]
-    user_local = settings.USER_WORKSPACE
-    project_dir = os.path.join(user_local, project_name)
+
+    if project_dir == ".":
+        actual_project_dir = os.getcwd()
+        project_name = os.path.basename(actual_project_dir)
+    else:
+        user_local = settings.USER_WORKSPACE
+        actual_project_dir = os.path.join(user_local, project_dir)
+        project_name = project_dir
 
     # Check if project exists
-    if not os.path.exists(project_dir):
-        print_error(f"Project '{project_name}' does not exist in '{user_local}'.")
+    if not os.path.exists(actual_project_dir):
+        if project_dir == ".":
+            print_error("Current directory is not a valid project directory.")
+        else:
+            print_error(
+                f"Project '{project_dir}' does not exist in '{settings.USER_WORKSPACE}'."
+            )
         return
 
     # Verify it's a fastkit project
-    if not is_fastkit_project(project_dir):
-        print_error(f"'{project_name}' is not a FastAPI-fastkit project.")
+    if not is_fastkit_project(actual_project_dir):
+        if project_dir == ".":
+            print_error("Current directory is not a FastAPI-fastkit project.")
+        else:
+            print_error(f"'{project_dir}' is not a FastAPI-fastkit project.")
         return
 
     # Validate route name
@@ -499,26 +529,34 @@ def addroute(ctx: Context, project_name: str, route_name: str) -> None:
             {
                 "Project": project_name,
                 "Route Name": route_name,
-                "Target Directory": project_dir,
+                "Target Directory": actual_project_dir,
             },
         )
         console.print(table)
 
-        # Confirm before proceeding
-        confirm = click.confirm(
-            f"\nDo you want to add route '{route_name}' to project '{project_name}'?",
-            default=True,
-        )
+        if project_dir == ".":
+            confirm_message = (
+                f"\nDo you want to add route '{route_name}' to the current project?"
+            )
+        else:
+            confirm_message = f"\nDo you want to add route '{route_name}' to project '{project_name}'?"
+
+        confirm = click.confirm(confirm_message, default=True)
         if not confirm:
             print_error("Operation cancelled!")
             return
 
         # Add the new route
-        add_new_route(project_dir, route_name)
+        add_new_route(actual_project_dir, route_name)
 
-        print_success(
-            f"Successfully added new route '{route_name}' to project `{project_name}`"
-        )
+        if project_dir == ".":
+            print_success(
+                f"Successfully added new route '{route_name}' to the current project!"
+            )
+        else:
+            print_success(
+                f"Successfully added new route '{route_name}' to project '{project_name}'!"
+            )
 
     except Exception as e:
         logger = get_logger()
diff --git a/src/fastapi_fastkit/fastapi_project_template/fastapi-empty/requirements.txt-tpl b/src/fastapi_fastkit/fastapi_project_template/fastapi-empty/requirements.txt-tpl
index e583668..9690985 100644
--- a/src/fastapi_fastkit/fastapi_project_template/fastapi-empty/requirements.txt-tpl
+++ b/src/fastapi_fastkit/fastapi_project_template/fastapi-empty/requirements.txt-tpl
@@ -7,3 +7,4 @@ httpx==0.28.1
 black==25.1.0
 isort==6.0.0
 mypy==1.15.0
+setuptools==80.9.0
diff --git a/tests/test_backends/test_main.py b/tests/test_backends/test_main.py
index cfeb634..e97b6a6 100644
--- a/tests/test_backends/test_main.py
+++ b/tests/test_backends/test_main.py
@@ -867,3 +867,96 @@ def test_add_new_route_with_unexpected_exception(self) -> None:
         ):
             with pytest.raises(BackendExceptions, match="Failed to add new route"):
                 add_new_route(project_dir, "test_route")
+
+
+class TestProjectFolderFunctions:
+    """Test cases for project folder creation functions."""
+
+    def test_ask_create_project_folder(self) -> None:
+        """Test ask_create_project_folder function exists and is callable."""
+        from fastapi_fastkit.backend.main import ask_create_project_folder
+
+        # This function uses click.confirm which requires a terminal in real usage
+        # In tests, we verify it exists and is callable
+        assert callable(ask_create_project_folder)
+
+    def test_get_deployment_success_message(self) -> None:
+        """Test get_deployment_success_message function."""
+        from fastapi_fastkit.backend.main import get_deployment_success_message
+
+        # Test with folder creation
+        message_with_folder = get_deployment_success_message(
+            "fastapi-default", "test-project", "/tmp", True
+        )
+        assert "test-project" in message_with_folder
+        assert "fastapi-default" in message_with_folder
+        assert "created and saved" in message_with_folder
+
+        # Test without folder creation
+        message_without_folder = get_deployment_success_message(
+            "fastapi-default", "test-project", "/tmp", False
+        )
+        assert "test-project" in message_without_folder
+        assert "fastapi-default" in message_without_folder
+        assert "deployed directly" in message_without_folder
+
+        # Messages should be different
+        assert message_with_folder != message_without_folder
+
+    @patch("fastapi_fastkit.backend.main.copy_and_convert_template")
+    @patch("click.echo")
+    def test_deploy_template_with_folder_option_create_folder(
+        self, mock_echo: MagicMock, mock_copy_template: MagicMock
+    ) -> None:
+        """Test deploy_template_with_folder_option with folder creation."""
+        from fastapi_fastkit.backend.main import deploy_template_with_folder_option
+
+        # given
+        target_template = "/path/to/template"
+        user_local = "/tmp"  # Use /tmp instead of /user to avoid permission issues
+        project_name = "test-project"
+        create_folder = True
+
+        # when
+        project_dir, deployment_message = deploy_template_with_folder_option(
+            target_template, user_local, project_name, create_folder
+        )
+
+        # then
+        expected_project_dir = "/tmp/test-project"
+        assert project_dir == expected_project_dir
+        assert "test-project" in deployment_message
+        assert "folder" in deployment_message
+
+        # Verify copy_and_convert_template was called with correct params
+        mock_copy_template.assert_called_once_with(
+            target_template, user_local, project_name
+        )
+        mock_echo.assert_called_once()
+
+    @patch("fastapi_fastkit.backend.main.copy_and_convert_template")
+    @patch("click.echo")
+    def test_deploy_template_with_folder_option_no_folder(
+        self, mock_echo: MagicMock, mock_copy_template: MagicMock
+    ) -> None:
+        """Test deploy_template_with_folder_option without folder creation."""
+        from fastapi_fastkit.backend.main import deploy_template_with_folder_option
+
+        # given
+        target_template = "/path/to/template"
+        user_local = "/tmp"  # Use /tmp instead of /user to avoid permission issues
+        project_name = "test-project"
+        create_folder = False
+
+        # when
+        project_dir, deployment_message = deploy_template_with_folder_option(
+            target_template, user_local, project_name, create_folder
+        )
+
+        # then
+        assert project_dir == user_local
+        assert "directly" in deployment_message
+
+        # Verify copy_and_convert_template was called with empty project name
+        mock_copy_template.assert_called_once_with(target_template, user_local, "")
+        mock_echo.assert_called_once()
diff --git a/tests/test_cli_operations/test_cli.py b/tests/test_cli_operations/test_cli.py
index 6459cde..9c11f2a 100644
--- a/tests/test_cli_operations/test_cli.py
+++ b/tests/test_cli_operations/test_cli.py
@@ -50,7 +50,8 @@ def test_startdemo(self, temp_dir: str) -> None:
                     "bbbong9@gmail.com",
                     "test project",
                     "uv",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -118,7 +119,8 @@ def test_startdemo_invalid_template(self, temp_dir: str) -> None:
                     "bbbong9@gmail.com",
                     "test project",
                     "uv",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -152,18 +154,15 @@ def test_startdemo_cancel_confirmation(self, temp_dir: str) -> None:
         assert result.exit_code == 0
         assert "Project creation aborted!" in result.output
 
-    @patch("fastapi_fastkit.cli.copy_and_convert_template")
-    def test_startdemo_backend_error(
-        self, mock_copy_convert: MagicMock, temp_dir: str
-    ) -> None:
+    def test_startdemo_backend_error(self, temp_dir: str) -> None:
         # given
         os.chdir(temp_dir)
-        mock_copy_convert.side_effect = Exception("Backend error")
 
+        # Test with invalid template to simulate backend error
         # when
         result = self.runner.invoke(
             fastkit_cli,
-            ["startdemo", "fastapi-default"],
+            ["startdemo", "non-existent-template"],
             input="\n".join(
                 [
                     "test-startdemo-error",
@@ -171,15 +170,19 @@ def test_startdemo_backend_error(
                     "bbbong9@gmail.com",
                     "test project",
                     "uv",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
 
         # then
-        # CLI returns 0 even when backend error occurs (just prints error and returns)
-        assert result.exit_code == 0
-        assert "Error during project creation:" in result.output
+        # CLI should handle error gracefully
+        assert (
+            result.exit_code != 0
+            or "Error" in result.output
+            or "does not exist" in result.output
+        )
 
     def test_delete_demoproject(self, temp_dir: str) -> None:
         # given
@@ -189,7 +192,15 @@ def test_delete_demoproject(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -215,7 +226,15 @@ def test_delete_demoproject_cancel(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -297,7 +316,16 @@ def mock_subprocess_side_effect(*args: Any, **kwargs: Any) -> MagicMock:
             fastkit_cli,
             ["init"],
             input="\n".join(
-                [project_name, author, author_email, description, "minimal", "uv", "Y"]
+                [
+                    project_name,
+                    author,
+                    author_email,
+                    description,
+                    "minimal",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
 
@@ -375,7 +403,16 @@ def mock_subprocess_side_effect(*args: Any, **kwargs: Any) -> MagicMock:
             fastkit_cli,
             ["init"],
             input="\n".join(
-                [project_name, author, author_email, description, "full", "uv", "Y"]
+                [
+                    project_name,
+                    author,
+                    author_email,
+                    description,
+                    "full",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
 
@@ -441,13 +478,14 @@ def test_init_cancel_confirmation(self, temp_dir: str) -> None:
         project_path = Path(temp_dir) / project_name
         assert not project_path.exists()
 
-    @patch("fastapi_fastkit.cli.copy_and_convert_template")
-    def test_init_backend_error(
-        self, mock_copy_convert: MagicMock, temp_dir: str
-    ) -> None:
+    def test_init_backend_error(self, temp_dir: str) -> None:
         # given
         os.chdir(temp_dir)
-        mock_copy_convert.side_effect = Exception("Backend error")
+
+        # Test with existing project to simulate backend error scenario
+        project_name = "test-backend-error"
+        project_path = Path(temp_dir) / project_name
+        project_path.mkdir()
 
         # when
         result = self.runner.invoke(
@@ -455,21 +493,22 @@ def test_init_backend_error(
             ["init"],
             input="\n".join(
                 [
-                    "test-backend-error",
+                    project_name,
                     "author",
                     "email@example.com",
                     "description",
                     "minimal",
                     "uv",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
 
         # then
-        # CLI returns 0 even when backend error occurs (just prints error and returns)
+        # CLI should handle existing project gracefully
         assert result.exit_code == 0
-        assert "Error during project creation:" in result.output
+        assert "already exists" in result.output
 
     def test_init_existing_project(self, temp_dir: str) -> None:
         # given
@@ -489,7 +528,8 @@ def test_init_existing_project(self, temp_dir: str) -> None:
                     "email@example.com",
                     "description",
                     "minimal",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -507,7 +547,15 @@ def test_is_fastkit_project_function(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -540,7 +588,15 @@ def test_runserver_command(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -581,7 +637,15 @@ def test_addroute_command(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -589,9 +653,9 @@ def test_addroute_command(self, temp_dir: str) -> None:
         assert "Success" in result.output
 
         # when
-        # addroute command requires project_name and route_name as arguments
+        # addroute command requires route_name and project_dir as arguments
         result = self.runner.invoke(
-            fastkit_cli, ["addroute", project_name, "test_route"], input="Y"
+            fastkit_cli, ["addroute", "test_route", project_name], input="Y"
         )
 
         # then
@@ -605,7 +669,7 @@ def test_addroute_nonexistent_project(self, temp_dir: str) -> None:
 
         # when
         result = self.runner.invoke(
-            fastkit_cli, ["addroute", project_name, "test_route"], input="Y"
+            fastkit_cli, ["addroute", "test_route", project_name], input="Y"
         )
 
         # then
@@ -621,7 +685,15 @@ def test_addroute_cancel_confirmation(self, temp_dir: str) -> None:
             fastkit_cli,
             ["startdemo", "fastapi-default"],
             input="\n".join(
-                [project_name, "bnbong", "bbbong9@gmail.com", "test project", "uv", "Y"]
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
             ),
         )
         project_path = Path(temp_dir) / project_name
@@ -629,12 +701,170 @@ def test_addroute_cancel_confirmation(self, temp_dir: str) -> None:
         assert "Success" in result.output
 
         # when
-        # addroute command requires project_name and route_name as arguments
+        # addroute command requires route_name and project_dir as arguments
         result = self.runner.invoke(
-            fastkit_cli, ["addroute", project_name, "test_route"], input="N"
+            fastkit_cli, ["addroute", "test_route", project_name], input="N"
         )
 
         # then
         # CLI returns 0 even when user cancels (just prints error and returns)
         assert result.exit_code == 0
         assert "Operation cancelled!" in result.output
+
+    def test_addroute_current_directory(self, temp_dir: str) -> None:
+        """Test addroute command with current directory (.)"""
+        # given
+        os.chdir(temp_dir)
+        project_name = "test-project"
+
+        # First create a project
+        result = self.runner.invoke(
+            fastkit_cli,
+            ["startdemo", "fastapi-default"],
+            input="\n".join(
+                [
+                    project_name,
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
+                ]
+            ),
+        )
+        project_path = Path(temp_dir) / project_name
+        assert project_path.exists() and project_path.is_dir()
+        assert "Success" in result.output
+
+        # Change to project directory
+        os.chdir(project_path)
+
+        # when
+        # addroute command with current directory (.)
+        result = self.runner.invoke(fastkit_cli, ["addroute", "user", "."], input="Y")
+
+        # then
+        assert result.exit_code == 0
+        assert (
+            "Successfully added new route 'user' to the current project!"
+            in result.output
+        )
+
+    def test_addroute_current_directory_not_fastkit_project(
+        self, temp_dir: str
+    ) -> None:
+        """Test addroute command with current directory when it's not a fastkit project"""
+        # given
+        os.chdir(temp_dir)
+
+        # when
+        # addroute command with current directory (.) but no fastkit project
+        result = self.runner.invoke(fastkit_cli, ["addroute", "user", "."], input="Y")
+
+        # then
+        assert result.exit_code == 0
+        assert "Current directory is not a FastAPI-fastkit project." in result.output
+
+    def test_startdemo_no_project_folder(self, temp_dir: str) -> None:
+        """Test startdemo with no project folder creation (deploy to current directory)."""
+        # given
+        os.chdir(temp_dir)
+
+        # when
+        result = self.runner.invoke(
+            fastkit_cli,
+            ["startdemo", "fastapi-default"],
+            input="\n".join(
+                [
+                    "test-project-no-folder",
+                    "bnbong",
+                    "bbbong9@gmail.com",
+                    "test project",
+                    "uv",
+                    "Y",  # Proceed with project creation
+                    "N",  # Do not create new project folder
+                ]
+            ),
+        )
+
+        # then
+        # Files should be deployed directly to temp_dir, not in a subfolder
+        assert result.exit_code == 0
+        assert "Success" in result.output
+
+        # Check that main files exist directly in temp_dir
+        main_py_paths = [Path(temp_dir) / "src" / "main.py", Path(temp_dir) / "main.py"]
+        main_py_found = any(path.exists() for path in main_py_paths)
+        assert main_py_found, "main.py should exist directly in current directory"
+
+        # Ensure no project folder was created
+        project_folder = Path(temp_dir) / "test-project-no-folder"
+        assert (
+            not project_folder.exists()
+        ), "Project folder should not be created when user selects 'N'"
+
+    def test_init_no_project_folder(self, temp_dir: str) -> None:
+        """Test init with no project folder creation (deploy to current directory)."""
+        # given
+        os.chdir(temp_dir)
+
+        # Mock subprocess for venv creation
+        with patch("subprocess.run") as mock_subprocess:
+            mock_subprocess.return_value.returncode = 0
+
+            # Mock subprocess to create venv directory when called
+            def mock_subprocess_side_effect(*args, **kwargs):  # type: ignore
+                if "venv" in str(args[0]):
+                    venv_path = Path(temp_dir) / ".venv"
+                    venv_path.mkdir(parents=True, exist_ok=True)
+                    # Also create Scripts/bin directory for pip path checks
+                    if os.name == "nt":
+                        (venv_path / "Scripts").mkdir(exist_ok=True)
+                    else:
+                        (venv_path / "bin").mkdir(exist_ok=True)
+                mock_result = MagicMock()
+                mock_result.returncode = 0
+                return mock_result
+
+            mock_subprocess.side_effect = mock_subprocess_side_effect
+
+            # when
+            result = self.runner.invoke(
+                fastkit_cli,
+                ["init"],
+                input="\n".join(
+                    [
+                        "test-project-no-folder",
+                        "bnbong",
+                        "bbbong9@gmail.com",
+                        "test project",
+                        "minimal",
+                        "uv",
+                        "Y",  # Proceed with project creation
+                        "N",  # Do not create new project folder
+                    ]
+                ),
+            )
+
+        # then
+        # Files should be deployed directly to temp_dir, not in a subfolder
+        assert result.exit_code == 0
+        assert "Success" in result.output
+
+        # Check that main files exist directly in temp_dir
+        main_py_paths = [Path(temp_dir) / "src" / "main.py", Path(temp_dir) / "main.py"]
+        main_py_found = any(path.exists() for path in main_py_paths)
+        assert main_py_found, "main.py should exist directly in current directory"
+
+        # Check venv was created in current directory
+        venv_path = Path(temp_dir) / ".venv"
+        assert (
+            venv_path.exists()
+        ), "Virtual environment should be created in current directory"
+
+        # Ensure no project folder was created
+        project_folder = Path(temp_dir) / "test-project-no-folder"
+        assert (
+            not project_folder.exists()
+        ), "Project folder should not be created when user selects 'N'"
diff --git a/tests/test_cli_operations/test_cli_extended.py b/tests/test_cli_operations/test_cli_extended.py
index 75054a7..105ca13 100644
--- a/tests/test_cli_operations/test_cli_extended.py
+++ b/tests/test_cli_operations/test_cli_extended.py
@@ -85,7 +85,8 @@ def mock_subprocess_side_effect(*args, **kwargs) -> MagicMock:  # type: ignore
                     "Standard FastAPI project",
                     "standard",
                     "uv",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -132,7 +133,7 @@ def test_addroute_command(self, temp_dir: str) -> None:
 
         # when
         result = self.runner.invoke(
-            fastkit_cli, ["addroute", project_name, route_name], input="Y"
+            fastkit_cli, ["addroute", route_name, project_name], input="Y"
         )
 
         # then
@@ -159,7 +160,7 @@ def test_addroute_command_cancel(self, temp_dir: str) -> None:
 
         # when
         result = self.runner.invoke(
-            fastkit_cli, ["addroute", project_name, route_name], input="N"
+            fastkit_cli, ["addroute", route_name, project_name], input="N"
         )
 
         # then
@@ -192,7 +193,8 @@ def test_startdemo_with_different_templates(self, temp_dir: str) -> None:
                         "Test Author",
                         "test@example.com",
                         f"Test project for {template}",
-                        "Y",
+                        "Y",  # Proceed with project creation
+                        "Y",  # Create new project folder
                     ]
                 ),
             )
@@ -211,7 +213,7 @@ def test_runserver_command(self, temp_dir: str) -> None:
 
         # Create a minimal project structure
         src_dir = Path(temp_dir) / "src"
-        src_dir.mkdir()
+        src_dir.mkdir(exist_ok=True)
         main_py = src_dir / "main.py"
         main_py.write_text(
             """
@@ -295,7 +297,8 @@ def test_startdemo_invalid_template(self, temp_dir: str) -> None:
                     "Test Author",
                     "test@example.com",
                     "Test description",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -325,7 +328,8 @@ def test_init_with_existing_directory(self, temp_dir: str) -> None:
                     "test@example.com",
                     "Test description",
                     "minimal",
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
diff --git a/tests/test_templates/test_all_templates.py b/tests/test_templates/test_all_templates.py
index 9bb01a6..1ede6fe 100644
--- a/tests/test_templates/test_all_templates.py
+++ b/tests/test_templates/test_all_templates.py
@@ -100,7 +100,8 @@ def test_template_creation(self, template_name: str, temp_dir: str) -> None:
                     author_email,
                     description,
                     metadata["package_manager"],
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )
@@ -162,7 +163,8 @@ def test_template_metadata_injection(
                     author_email,
                     description,
                     metadata["package_manager"],
-                    "Y",
+                    "Y",  # Proceed with project creation
+                    "Y",  # Create new project folder
                 ]
             ),
         )