diff --git a/.changeset/proud-baboons-cheat.md b/.changeset/proud-baboons-cheat.md
new file mode 100644
index 000000000..444101ba9
--- /dev/null
+++ b/.changeset/proud-baboons-cheat.md
@@ -0,0 +1,5 @@
+---
+"sv": patch
+---
+
+fix(cli): `kit` projects were detected incorrectly
diff --git a/packages/addons/prettier/index.ts b/packages/addons/prettier/index.ts
index 813345c02..39de21190 100644
--- a/packages/addons/prettier/index.ts
+++ b/packages/addons/prettier/index.ts
@@ -7,7 +7,7 @@ export default defineAddon({
 	shortDescription: 'formatter',
 	homepage: 'https://prettier.io',
 	options: {},
-	run: ({ sv, dependencyVersion, kit, files }) => {
+	run: ({ sv, dependencyVersion, files }) => {
 		const tailwindcssInstalled = Boolean(dependencyVersion('tailwindcss'));
 		if (tailwindcssInstalled) sv.devDependency('prettier-plugin-tailwindcss', '^0.7.1');
 
@@ -53,7 +53,7 @@ export default defineAddon({
 				if (!plugins.includes('prettier-plugin-tailwindcss')) {
 					data.plugins.unshift('prettier-plugin-tailwindcss');
 				}
-				data.tailwindStylesheet ??= kit ? `${kit?.routesDirectory}/layout.css` : './src/app.css';
+				data.tailwindStylesheet ??= files.getRelative({ to: files.stylesheet });
 			}
 			if (!plugins.includes('prettier-plugin-svelte')) {
 				data.plugins.unshift('prettier-plugin-svelte');
diff --git a/packages/cli/commands/add/workspace.ts b/packages/cli/commands/add/workspace.ts
index b00d13c26..4cb47cb5b 100644
--- a/packages/cli/commands/add/workspace.ts
+++ b/packages/cli/commands/add/workspace.ts
@@ -11,10 +11,14 @@ import { getUserAgent } from '../../utils/package-manager.ts';
 type CreateWorkspaceOptions = {
 	cwd: string;
 	packageManager?: PackageManager;
+	override?: {
+		kit?: Workspace['kit'];
+	};
 };
 export async function createWorkspace({
 	cwd,
-	packageManager
+	packageManager,
+	override
 }: CreateWorkspaceOptions): Promise<Workspace> {
 	const resolvedCwd = path.resolve(cwd);
 
@@ -28,8 +32,8 @@ export async function createWorkspace({
 	const viteConfig = fs.existsSync(viteConfigPath)
 		? commonFilePaths.viteConfigTS
 		: commonFilePaths.viteConfig;
-	const sveteConfigPath = path.join(resolvedCwd, commonFilePaths.svelteConfigTS);
-	const svelteConfig = fs.existsSync(sveteConfigPath)
+	const svelteConfigPath = path.join(resolvedCwd, commonFilePaths.svelteConfigTS);
+	const svelteConfig = fs.existsSync(svelteConfigPath)
 		? commonFilePaths.svelteConfigTS
 		: commonFilePaths.svelteConfig;
 
@@ -59,7 +63,12 @@ export async function createWorkspace({
 		dependencies[key] = value.replaceAll(/[^\d|.]/g, '');
 	}
 
-	const kit = dependencies['@sveltejs/kit'] ? parseKitOptions(resolvedCwd) : undefined;
+	const kit = override?.kit
+		? override.kit
+		: dependencies['@sveltejs/kit']
+			? parseKitOptions(resolvedCwd)
+			: undefined;
+
 	const stylesheet: `${string}/layout.css` | 'src/app.css' = kit
 		? `${kit.routesDirectory}/layout.css`
 		: 'src/app.css';
diff --git a/packages/cli/commands/create.ts b/packages/cli/commands/create.ts
index ddf6e3ba5..c6fd624d9 100644
--- a/packages/cli/commands/create.ts
+++ b/packages/cli/commands/create.ts
@@ -363,7 +363,18 @@ export async function createVirtualWorkspace({
 	packageManager,
 	type
 }: CreateVirtualWorkspaceOptions): Promise<Workspace> {
-	const tentativeWorkspace = await createWorkspace({ cwd, packageManager });
+	const override: { kit?: Workspace['kit'] } = {};
+
+	// These are our default project structure so we know that it's a kit project
+	if (template === 'minimal' || template === 'demo' || template === 'library') {
+		override.kit = {
+			routesDirectory: 'src/routes',
+			libDirectory: 'src/lib'
+		};
+	}
+
+	const tentativeWorkspace = await createWorkspace({ cwd, packageManager, override });
+
 	const virtualWorkspace: Workspace = {
 		...tentativeWorkspace,
 		typescript: type === 'typescript',
@@ -372,17 +383,8 @@ export async function createVirtualWorkspace({
 			viteConfig: type === 'typescript' ? commonFilePaths.viteConfigTS : commonFilePaths.viteConfig,
 			svelteConfig:
 				type === 'typescript' ? commonFilePaths.svelteConfigTS : commonFilePaths.svelteConfig
-		},
-		kit: undefined,
-		dependencyVersion: () => undefined
+		}
 	};
 
-	if (template === 'minimal' || template === 'demo' || template === 'library') {
-		virtualWorkspace.kit = {
-			routesDirectory: 'src/routes',
-			libDirectory: 'src/lib'
-		};
-	}
-
 	return virtualWorkspace;
 }
diff --git a/packages/cli/tests/cli.ts b/packages/cli/tests/cli.ts
index e93a21c4f..156674dec 100644
--- a/packages/cli/tests/cli.ts
+++ b/packages/cli/tests/cli.ts
@@ -16,9 +16,32 @@ beforeAll(() => {
 });
 
 describe('cli', () => {
-	it('should be able to create a new project with cli command', async () => {
+	const testCases = [
+		{ projectName: 'create-only', args: ['--no-add-ons'] },
+		{
+			projectName: 'create-with-all-addons',
+			args: [
+				'--add',
+				'prettier',
+				'eslint',
+				'vitest=usages:unit,component',
+				'playwright',
+				'tailwindcss=plugins:typography,forms',
+				'sveltekit-adapter=adapter:node',
+				'devtools-json',
+				'drizzle=database:sqlite+sqlite:libsql',
+				'lucia=demo:yes',
+				'mdsvex',
+				'paraglide=languageTags:en,es+demo:yes',
+				'mcp=ide:claude-code,cursor,gemini,opencode,vscode,other+setup:local'
+			]
+		}
+	];
+
+	it.for(testCases)('should create a new project with name $projectName', async (testCase) => {
+		const { projectName, args } = testCase;
 		const svBinPath = path.resolve(monoRepoPath, 'packages', 'cli', 'dist', 'bin.js');
-		const testOutputPath = path.resolve(monoRepoPath, '.test-output', 'cli', 'test-project');
+		const testOutputPath = path.resolve(monoRepoPath, '.test-output', 'cli', projectName);
 
 		const result = await exec(
 			'node',
@@ -31,7 +54,7 @@ describe('cli', () => {
 				'--types',
 				'ts',
 				'--no-install',
-				'--no-add-ons'
+				...args
 			],
 			{ nodeOptions: { stdio: 'ignore' } }
 		);
@@ -45,6 +68,6 @@ describe('cli', () => {
 		// package.json has a name
 		const packageJsonPath = path.resolve(testOutputPath, 'package.json');
 		const packageJson = parseJson(fs.readFileSync(packageJsonPath, 'utf-8'));
-		expect(packageJson.name).toBe('test-project');
+		expect(packageJson.name).toBe(projectName);
 	});
 });