diff --git a/server/index.js b/server/index.js
index 4562f80..28ba951 100755
--- a/server/index.js
+++ b/server/index.js
@@ -69,6 +69,7 @@ import mcpUtilsRoutes from './routes/mcp-utils.js';
 import commandsRoutes from './routes/commands.js';
 import settingsRoutes from './routes/settings.js';
 import agentRoutes from './routes/agent.js';
+import projectsRoutes from './routes/projects.js';
 import { initializeDatabase } from './database/db.js';
 import { validateApiKey, authenticateToken, authenticateWebSocket } from './middleware/auth.js';
 
@@ -201,6 +202,9 @@ app.use('/api', validateApiKey);
 // Authentication routes (public)
 app.use('/api/auth', authRoutes);
 
+// Projects API Routes (protected)
+app.use('/api/projects', authenticateToken, projectsRoutes);
+
 // Git API Routes (protected)
 app.use('/api/git', authenticateToken, gitRoutes);
 
diff --git a/server/routes/projects.js b/server/routes/projects.js
new file mode 100644
index 0000000..042de51
--- /dev/null
+++ b/server/routes/projects.js
@@ -0,0 +1,378 @@
+import express from 'express';
+import { promises as fs } from 'fs';
+import path from 'path';
+import { spawn } from 'child_process';
+import os from 'os';
+import { addProjectManually } from '../projects.js';
+
+const router = express.Router();
+
+// Configure allowed workspace root (defaults to user's home directory)
+const WORKSPACES_ROOT = process.env.WORKSPACES_ROOT || os.homedir();
+
+// System-critical paths that should never be used as workspace directories
+const FORBIDDEN_PATHS = [
+  '/',
+  '/etc',
+  '/bin',
+  '/sbin',
+  '/usr',
+  '/dev',
+  '/proc',
+  '/sys',
+  '/var',
+  '/boot',
+  '/root',
+  '/lib',
+  '/lib64',
+  '/opt',
+  '/tmp',
+  '/run'
+];
+
+/**
+ * Validates that a path is safe for workspace operations
+ * @param {string} requestedPath - The path to validate
+ * @returns {Promise<{valid: boolean, resolvedPath?: string, error?: string}>}
+ */
+async function validateWorkspacePath(requestedPath) {
+  try {
+    // Resolve to absolute path
+    let absolutePath = path.resolve(requestedPath);
+
+    // Check if path is a forbidden system directory
+    const normalizedPath = path.normalize(absolutePath);
+    if (FORBIDDEN_PATHS.includes(normalizedPath) || normalizedPath === '/') {
+      return {
+        valid: false,
+        error: 'Cannot use system-critical directories as workspace locations'
+      };
+    }
+
+    // Additional check for paths starting with forbidden directories
+    for (const forbidden of FORBIDDEN_PATHS) {
+      if (normalizedPath === forbidden ||
+          normalizedPath.startsWith(forbidden + path.sep)) {
+        // Exception: /var/tmp and similar user-accessible paths might be allowed
+        // but /var itself and most /var subdirectories should be blocked
+        if (forbidden === '/var' &&
+            (normalizedPath.startsWith('/var/tmp') ||
+             normalizedPath.startsWith('/var/folders'))) {
+          continue; // Allow these specific cases
+        }
+
+        return {
+          valid: false,
+          error: `Cannot create workspace in system directory: ${forbidden}`
+        };
+      }
+    }
+
+    // Try to resolve the real path (following symlinks)
+    let realPath;
+    try {
+      // Check if path exists to resolve real path
+      await fs.access(absolutePath);
+      realPath = await fs.realpath(absolutePath);
+    } catch (error) {
+      if (error.code === 'ENOENT') {
+        // Path doesn't exist yet - check parent directory
+        let parentPath = path.dirname(absolutePath);
+        try {
+          const parentRealPath = await fs.realpath(parentPath);
+
+          // Reconstruct the full path with real parent
+          realPath = path.join(parentRealPath, path.basename(absolutePath));
+        } catch (parentError) {
+          if (parentError.code === 'ENOENT') {
+            // Parent doesn't exist either - use the absolute path as-is
+            // We'll validate it's within allowed root
+            realPath = absolutePath;
+          } else {
+            throw parentError;
+          }
+        }
+      } else {
+        throw error;
+      }
+    }
+
+    // Resolve the workspace root to its real path
+    const resolvedWorkspaceRoot = await fs.realpath(WORKSPACES_ROOT);
+
+    // Ensure the resolved path is contained within the allowed workspace root
+    if (!realPath.startsWith(resolvedWorkspaceRoot + path.sep) &&
+        realPath !== resolvedWorkspaceRoot) {
+      return {
+        valid: false,
+        error: `Workspace path must be within the allowed workspace root: ${WORKSPACES_ROOT}`
+      };
+    }
+
+    // Additional symlink check for existing paths
+    try {
+      await fs.access(absolutePath);
+      const stats = await fs.lstat(absolutePath);
+
+      if (stats.isSymbolicLink()) {
+        // Verify symlink target is also within allowed root
+        const linkTarget = await fs.readlink(absolutePath);
+        const resolvedTarget = path.resolve(path.dirname(absolutePath), linkTarget);
+        const realTarget = await fs.realpath(resolvedTarget);
+
+        if (!realTarget.startsWith(resolvedWorkspaceRoot + path.sep) &&
+            realTarget !== resolvedWorkspaceRoot) {
+          return {
+            valid: false,
+            error: 'Symlink target is outside the allowed workspace root'
+          };
+        }
+      }
+    } catch (error) {
+      if (error.code !== 'ENOENT') {
+        throw error;
+      }
+      // Path doesn't exist - that's fine for new workspace creation
+    }
+
+    return {
+      valid: true,
+      resolvedPath: realPath
+    };
+
+  } catch (error) {
+    return {
+      valid: false,
+      error: `Path validation failed: ${error.message}`
+    };
+  }
+}
+
+/**
+ * Create a new workspace
+ * POST /api/projects/create-workspace
+ *
+ * Body:
+ * - workspaceType: 'existing' | 'new'
+ * - path: string (workspace path)
+ * - githubUrl?: string (optional, for new workspaces)
+ * - githubTokenId?: number (optional, ID of stored token)
+ * - newGithubToken?: string (optional, one-time token)
+ */
+router.post('/create-workspace', async (req, res) => {
+  try {
+    const { workspaceType, path: workspacePath, githubUrl, githubTokenId, newGithubToken } = req.body;
+
+    // Validate required fields
+    if (!workspaceType || !workspacePath) {
+      return res.status(400).json({ error: 'workspaceType and path are required' });
+    }
+
+    if (!['existing', 'new'].includes(workspaceType)) {
+      return res.status(400).json({ error: 'workspaceType must be "existing" or "new"' });
+    }
+
+    // Validate path safety before any operations
+    const validation = await validateWorkspacePath(workspacePath);
+    if (!validation.valid) {
+      return res.status(400).json({
+        error: 'Invalid workspace path',
+        details: validation.error
+      });
+    }
+
+    const absolutePath = validation.resolvedPath;
+
+    // Handle existing workspace
+    if (workspaceType === 'existing') {
+      // Check if the path exists
+      try {
+        await fs.access(absolutePath);
+        const stats = await fs.stat(absolutePath);
+
+        if (!stats.isDirectory()) {
+          return res.status(400).json({ error: 'Path exists but is not a directory' });
+        }
+      } catch (error) {
+        if (error.code === 'ENOENT') {
+          return res.status(404).json({ error: 'Workspace path does not exist' });
+        }
+        throw error;
+      }
+
+      // Add the existing workspace to the project list
+      const project = await addProjectManually(absolutePath);
+
+      return res.json({
+        success: true,
+        project,
+        message: 'Existing workspace added successfully'
+      });
+    }
+
+    // Handle new workspace creation
+    if (workspaceType === 'new') {
+      // Check if path already exists
+      try {
+        await fs.access(absolutePath);
+        return res.status(400).json({
+          error: 'Path already exists. Please choose a different path or use "existing workspace" option.'
+        });
+      } catch (error) {
+        if (error.code !== 'ENOENT') {
+          throw error;
+        }
+        // Path doesn't exist - good, we can create it
+      }
+
+      // Create the directory
+      await fs.mkdir(absolutePath, { recursive: true });
+
+      // If GitHub URL is provided, clone the repository
+      if (githubUrl) {
+        let githubToken = null;
+
+        // Get GitHub token if needed
+        if (githubTokenId) {
+          // Fetch token from database
+          const token = await getGithubTokenById(githubTokenId, req.user.id);
+          if (!token) {
+            // Clean up created directory
+            await fs.rm(absolutePath, { recursive: true, force: true });
+            return res.status(404).json({ error: 'GitHub token not found' });
+          }
+          githubToken = token.github_token;
+        } else if (newGithubToken) {
+          githubToken = newGithubToken;
+        }
+
+        // Clone the repository
+        try {
+          await cloneGitHubRepository(githubUrl, absolutePath, githubToken);
+        } catch (error) {
+          // Clean up created directory on failure
+          try {
+            await fs.rm(absolutePath, { recursive: true, force: true });
+          } catch (cleanupError) {
+            console.error('Failed to clean up directory after clone failure:', cleanupError);
+            // Continue to throw original error
+          }
+          throw new Error(`Failed to clone repository: ${error.message}`);
+        }
+      }
+
+      // Add the new workspace to the project list
+      const project = await addProjectManually(absolutePath);
+
+      return res.json({
+        success: true,
+        project,
+        message: githubUrl
+          ? 'New workspace created and repository cloned successfully'
+          : 'New workspace created successfully'
+      });
+    }
+
+  } catch (error) {
+    console.error('Error creating workspace:', error);
+    res.status(500).json({
+      error: error.message || 'Failed to create workspace',
+      details: process.env.NODE_ENV === 'development' ? error.stack : undefined
+    });
+  }
+});
+
+/**
+ * Helper function to get GitHub token from database
+ */
+async function getGithubTokenById(tokenId, userId) {
+  const { getDatabase } = await import('../database/db.js');
+  const db = await getDatabase();
+
+  const credential = await db.get(
+    'SELECT * FROM user_credentials WHERE id = ? AND user_id = ? AND credential_type = ? AND is_active = 1',
+    [tokenId, userId, 'github_token']
+  );
+
+  // Return in the expected format (github_token field for compatibility)
+  if (credential) {
+    return {
+      ...credential,
+      github_token: credential.credential_value
+    };
+  }
+
+  return null;
+}
+
+/**
+ * Helper function to clone a GitHub repository
+ */
+function cloneGitHubRepository(githubUrl, destinationPath, githubToken = null) {
+  return new Promise((resolve, reject) => {
+    // Parse GitHub URL and inject token if provided
+    let cloneUrl = githubUrl;
+
+    if (githubToken) {
+      try {
+        const url = new URL(githubUrl);
+        // Format: https://TOKEN@github.com/user/repo.git
+        url.username = githubToken;
+        url.password = '';
+        cloneUrl = url.toString();
+      } catch (error) {
+        return reject(new Error('Invalid GitHub URL format'));
+      }
+    }
+
+    const gitProcess = spawn('git', ['clone', cloneUrl, destinationPath], {
+      stdio: ['ignore', 'pipe', 'pipe'],
+      env: {
+        ...process.env,
+        GIT_TERMINAL_PROMPT: '0' // Disable git password prompts
+      }
+    });
+
+    let stdout = '';
+    let stderr = '';
+
+    gitProcess.stdout.on('data', (data) => {
+      stdout += data.toString();
+    });
+
+    gitProcess.stderr.on('data', (data) => {
+      stderr += data.toString();
+    });
+
+    gitProcess.on('close', (code) => {
+      if (code === 0) {
+        resolve({ stdout, stderr });
+      } else {
+        // Parse git error messages to provide helpful feedback
+        let errorMessage = 'Git clone failed';
+
+        if (stderr.includes('Authentication failed') || stderr.includes('could not read Username')) {
+          errorMessage = 'Authentication failed. Please check your GitHub token.';
+        } else if (stderr.includes('Repository not found')) {
+          errorMessage = 'Repository not found. Please check the URL and ensure you have access.';
+        } else if (stderr.includes('already exists')) {
+          errorMessage = 'Directory already exists';
+        } else if (stderr) {
+          errorMessage = stderr;
+        }
+
+        reject(new Error(errorMessage));
+      }
+    });
+
+    gitProcess.on('error', (error) => {
+      if (error.code === 'ENOENT') {
+        reject(new Error('Git is not installed or not in PATH'));
+      } else {
+        reject(error);
+      }
+    });
+  });
+}
+
+export default router;
diff --git a/src/components/ApiKeysSettings.jsx b/src/components/ApiKeysSettings.jsx
index 8a8c25b..c2d427c 100644
--- a/src/components/ApiKeysSettings.jsx
+++ b/src/components/ApiKeysSettings.jsx
@@ -33,11 +33,11 @@ function ApiKeysSettings() {
       setApiKeys(apiKeysData.apiKeys || []);
 
       // Fetch GitHub tokens
-      const githubRes = await fetch('/api/settings/github-tokens', {
+      const githubRes = await fetch('/api/settings/credentials?type=github_token', {
         headers: { 'Authorization': `Bearer ${token}` }
       });
       const githubData = await githubRes.json();
-      setGithubTokens(githubData.tokens || []);
+      setGithubTokens(githubData.credentials || []);
     } catch (error) {
       console.error('Error fetching settings:', error);
     } finally {
@@ -108,15 +108,16 @@ function ApiKeysSettings() {
 
     try {
       const token = localStorage.getItem('auth-token');
-      const res = await fetch('/api/settings/github-tokens', {
+      const res = await fetch('/api/settings/credentials', {
         method: 'POST',
         headers: {
           'Authorization': `Bearer ${token}`,
           'Content-Type': 'application/json'
         },
         body: JSON.stringify({
-          tokenName: newTokenName,
-          githubToken: newGithubToken
+          credentialName: newTokenName,
+          credentialType: 'github_token',
+          credentialValue: newGithubToken
         })
       });
 
@@ -137,7 +138,7 @@ function ApiKeysSettings() {
 
     try {
       const token = localStorage.getItem('auth-token');
-      await fetch(`/api/settings/github-tokens/${tokenId}`, {
+      await fetch(`/api/settings/credentials/${tokenId}`, {
         method: 'DELETE',
         headers: { 'Authorization': `Bearer ${token}` }
       });
@@ -150,7 +151,7 @@ function ApiKeysSettings() {
   const toggleGithubToken = async (tokenId, isActive) => {
     try {
       const token = localStorage.getItem('auth-token');
-      await fetch(`/api/settings/github-tokens/${tokenId}/toggle`, {
+      await fetch(`/api/settings/credentials/${tokenId}/toggle`, {
         method: 'PATCH',
         headers: {
           'Authorization': `Bearer ${token}`,
@@ -349,7 +350,7 @@ function ApiKeysSettings() {
                 className="flex items-center justify-between p-3 border rounded-lg"
               >
                 <div className="flex-1">
-                  <div className="font-medium">{token.token_name}</div>
+                  <div className="font-medium">{token.credential_name}</div>
                   <div className="text-xs text-muted-foreground mt-1">
                     Added: {new Date(token.created_at).toLocaleDateString()}
                   </div>
diff --git a/src/components/ChatInterface.jsx b/src/components/ChatInterface.jsx
index 8d452d3..e8b1302 100644
--- a/src/components/ChatInterface.jsx
+++ b/src/components/ChatInterface.jsx
@@ -4744,13 +4744,15 @@ function ChatInterface({ selectedProject, selectedSession, ws, sendMessage, mess
             </button>
 
             {/* Hint text inside input box at bottom */}
-            <div className="absolute bottom-1 left-12 right-14 sm:right-40 text-xs text-gray-400 dark:text-gray-500 pointer-events-none hidden sm:block">
+            <div className={`absolute bottom-1 left-12 right-14 sm:right-40 text-xs text-gray-400 dark:text-gray-500 pointer-events-none hidden sm:block transition-opacity duration-200 ${
+              input.trim() ? 'opacity-0' : 'opacity-100'
+            }`}>
               {sendByCtrlEnter
                 ? "Ctrl+Enter to send • Shift+Enter for new line • Tab to change modes • / for slash commands"
                 : "Enter to send • Shift+Enter for new line • Tab to change modes • / for slash commands"}
             </div>
             <div className={`absolute bottom-1 left-12 right-14 text-xs text-gray-400 dark:text-gray-500 pointer-events-none sm:hidden transition-opacity duration-200 ${
-              isInputFocused ? 'opacity-100' : 'opacity-0'
+              isInputFocused && !input.trim() ? 'opacity-100' : 'opacity-0'
             }`}>
               {sendByCtrlEnter
                 ? "Ctrl+Enter to send • Tab for modes • / for commands"
diff --git a/src/components/ProjectCreationWizard.jsx b/src/components/ProjectCreationWizard.jsx
new file mode 100644
index 0000000..38564dc
--- /dev/null
+++ b/src/components/ProjectCreationWizard.jsx
@@ -0,0 +1,570 @@
+import React, { useState, useEffect } from 'react';
+import { X, FolderPlus, GitBranch, Key, ChevronRight, ChevronLeft, Check, Loader2, AlertCircle } from 'lucide-react';
+import { Button } from './ui/button';
+import { Input } from './ui/input';
+import { api } from '../utils/api';
+
+const ProjectCreationWizard = ({ onClose, onProjectCreated }) => {
+  // Wizard state
+  const [step, setStep] = useState(1); // 1: Choose type, 2: Configure, 3: Confirm
+  const [workspaceType, setWorkspaceType] = useState(null); // 'existing' or 'new'
+
+  // Form state
+  const [workspacePath, setWorkspacePath] = useState('');
+  const [githubUrl, setGithubUrl] = useState('');
+  const [selectedGithubToken, setSelectedGithubToken] = useState('');
+  const [tokenMode, setTokenMode] = useState('stored'); // 'stored' | 'new' | 'none'
+  const [newGithubToken, setNewGithubToken] = useState('');
+
+  // UI state
+  const [isCreating, setIsCreating] = useState(false);
+  const [error, setError] = useState(null);
+  const [availableTokens, setAvailableTokens] = useState([]);
+  const [loadingTokens, setLoadingTokens] = useState(false);
+  const [pathSuggestions, setPathSuggestions] = useState([]);
+  const [showPathDropdown, setShowPathDropdown] = useState(false);
+
+  // Load available GitHub tokens when needed
+  useEffect(() => {
+    if (step === 2 && workspaceType === 'new' && githubUrl) {
+      loadGithubTokens();
+    }
+  }, [step, workspaceType, githubUrl]);
+
+  // Load path suggestions
+  useEffect(() => {
+    if (workspacePath.length > 2) {
+      loadPathSuggestions(workspacePath);
+    } else {
+      setPathSuggestions([]);
+      setShowPathDropdown(false);
+    }
+  }, [workspacePath]);
+
+  const loadGithubTokens = async () => {
+    try {
+      setLoadingTokens(true);
+      const response = await api.get('/settings/credentials?type=github_token');
+      const data = await response.json();
+
+      const activeTokens = (data.credentials || []).filter(t => t.is_active);
+      setAvailableTokens(activeTokens);
+
+      // Auto-select first token if available
+      if (activeTokens.length > 0 && !selectedGithubToken) {
+        setSelectedGithubToken(activeTokens[0].id.toString());
+      }
+    } catch (error) {
+      console.error('Error loading GitHub tokens:', error);
+    } finally {
+      setLoadingTokens(false);
+    }
+  };
+
+  const loadPathSuggestions = async (inputPath) => {
+    try {
+      // Extract the directory to browse (parent of input)
+      const lastSlash = inputPath.lastIndexOf('/');
+      const dirPath = lastSlash > 0 ? inputPath.substring(0, lastSlash) : '~';
+
+      const response = await api.browseFilesystem(dirPath);
+      const data = await response.json();
+
+      if (data.suggestions) {
+        // Filter suggestions based on the input
+        const filtered = data.suggestions.filter(s =>
+          s.path.toLowerCase().startsWith(inputPath.toLowerCase())
+        );
+        setPathSuggestions(filtered.slice(0, 5));
+        setShowPathDropdown(filtered.length > 0);
+      }
+    } catch (error) {
+      console.error('Error loading path suggestions:', error);
+    }
+  };
+
+  const handleNext = () => {
+    setError(null);
+
+    if (step === 1) {
+      if (!workspaceType) {
+        setError('Please select whether you have an existing workspace or want to create a new one');
+        return;
+      }
+      setStep(2);
+    } else if (step === 2) {
+      if (!workspacePath.trim()) {
+        setError('Please provide a workspace path');
+        return;
+      }
+
+      // No validation for GitHub token - it's optional (only needed for private repos)
+      setStep(3);
+    }
+  };
+
+  const handleBack = () => {
+    setError(null);
+    setStep(step - 1);
+  };
+
+  const handleCreate = async () => {
+    setIsCreating(true);
+    setError(null);
+
+    try {
+      const payload = {
+        workspaceType,
+        path: workspacePath.trim(),
+      };
+
+      // Add GitHub info if creating new workspace with GitHub URL
+      if (workspaceType === 'new' && githubUrl) {
+        payload.githubUrl = githubUrl.trim();
+
+        if (tokenMode === 'stored' && selectedGithubToken) {
+          payload.githubTokenId = parseInt(selectedGithubToken);
+        } else if (tokenMode === 'new' && newGithubToken) {
+          payload.newGithubToken = newGithubToken.trim();
+        }
+      }
+
+      const response = await api.createWorkspace(payload);
+      const data = await response.json();
+
+      if (!response.ok) {
+        throw new Error(data.error || 'Failed to create workspace');
+      }
+
+      // Success!
+      if (onProjectCreated) {
+        onProjectCreated(data.project);
+      }
+
+      onClose();
+    } catch (error) {
+      console.error('Error creating workspace:', error);
+      setError(error.message || 'Failed to create workspace');
+    } finally {
+      setIsCreating(false);
+    }
+  };
+
+  const selectPathSuggestion = (suggestion) => {
+    setWorkspacePath(suggestion.path);
+    setShowPathDropdown(false);
+  };
+
+  return (
+    <div className="fixed top-0 left-0 right-0 bottom-0 bg-black/50 backdrop-blur-sm flex items-center justify-center z-[60] p-0 sm:p-4">
+      <div className="bg-white dark:bg-gray-800 rounded-none sm:rounded-lg shadow-xl w-full h-full sm:h-auto sm:max-w-2xl border-0 sm:border border-gray-200 dark:border-gray-700 overflow-y-auto">
+        {/* Header */}
+        <div className="flex items-center justify-between p-6 border-b border-gray-200 dark:border-gray-700">
+          <div className="flex items-center gap-3">
+            <div className="w-8 h-8 bg-blue-100 dark:bg-blue-900/50 rounded-lg flex items-center justify-center">
+              <FolderPlus className="w-4 h-4 text-blue-600 dark:text-blue-400" />
+            </div>
+            <h3 className="text-lg font-semibold text-gray-900 dark:text-white">
+              Create New Project
+            </h3>
+          </div>
+          <button
+            onClick={onClose}
+            className="p-2 text-gray-400 hover:text-gray-600 dark:hover:text-gray-300 rounded-md hover:bg-gray-100 dark:hover:bg-gray-700"
+            disabled={isCreating}
+          >
+            <X className="w-5 h-5" />
+          </button>
+        </div>
+
+        {/* Progress Indicator */}
+        <div className="px-6 pt-4 pb-2">
+          <div className="flex items-center justify-between">
+            {[1, 2, 3].map((s) => (
+              <React.Fragment key={s}>
+                <div className="flex items-center gap-2">
+                  <div
+                    className={`w-8 h-8 rounded-full flex items-center justify-center font-medium text-sm ${
+                      s < step
+                        ? 'bg-green-500 text-white'
+                        : s === step
+                        ? 'bg-blue-500 text-white'
+                        : 'bg-gray-200 dark:bg-gray-700 text-gray-500'
+                    }`}
+                  >
+                    {s < step ? <Check className="w-4 h-4" /> : s}
+                  </div>
+                  <span className="text-sm font-medium text-gray-700 dark:text-gray-300 hidden sm:inline">
+                    {s === 1 ? 'Type' : s === 2 ? 'Configure' : 'Confirm'}
+                  </span>
+                </div>
+                {s < 3 && (
+                  <div
+                    className={`flex-1 h-1 mx-2 rounded ${
+                      s < step ? 'bg-green-500' : 'bg-gray-200 dark:bg-gray-700'
+                    }`}
+                  />
+                )}
+              </React.Fragment>
+            ))}
+          </div>
+        </div>
+
+        {/* Content */}
+        <div className="p-6 space-y-6 min-h-[300px]">
+          {/* Error Display */}
+          {error && (
+            <div className="bg-red-50 dark:bg-red-900/20 border border-red-200 dark:border-red-800 rounded-lg p-4 flex items-start gap-3">
+              <AlertCircle className="w-5 h-5 text-red-600 dark:text-red-400 flex-shrink-0 mt-0.5" />
+              <div className="flex-1">
+                <p className="text-sm text-red-800 dark:text-red-200">{error}</p>
+              </div>
+            </div>
+          )}
+
+          {/* Step 1: Choose workspace type */}
+          {step === 1 && (
+            <div className="space-y-4">
+              <div>
+                <h4 className="text-sm font-medium text-gray-700 dark:text-gray-300 mb-3">
+                  Do you already have a workspace, or would you like to create a new one?
+                </h4>
+                <div className="grid grid-cols-1 md:grid-cols-2 gap-4">
+                  {/* Existing Workspace */}
+                  <button
+                    onClick={() => setWorkspaceType('existing')}
+                    className={`p-4 border-2 rounded-lg text-left transition-all ${
+                      workspaceType === 'existing'
+                        ? 'border-blue-500 bg-blue-50 dark:bg-blue-900/20'
+                        : 'border-gray-200 dark:border-gray-700 hover:border-gray-300 dark:hover:border-gray-600'
+                    }`}
+                  >
+                    <div className="flex items-start gap-3">
+                      <div className="w-10 h-10 bg-green-100 dark:bg-green-900/50 rounded-lg flex items-center justify-center flex-shrink-0">
+                        <FolderPlus className="w-5 h-5 text-green-600 dark:text-green-400" />
+                      </div>
+                      <div className="flex-1">
+                        <h5 className="font-semibold text-gray-900 dark:text-white mb-1">
+                          Existing Workspace
+                        </h5>
+                        <p className="text-sm text-gray-600 dark:text-gray-400">
+                          I already have a workspace on my server and just need to add it to the project list
+                        </p>
+                      </div>
+                    </div>
+                  </button>
+
+                  {/* New Workspace */}
+                  <button
+                    onClick={() => setWorkspaceType('new')}
+                    className={`p-4 border-2 rounded-lg text-left transition-all ${
+                      workspaceType === 'new'
+                        ? 'border-blue-500 bg-blue-50 dark:bg-blue-900/20'
+                        : 'border-gray-200 dark:border-gray-700 hover:border-gray-300 dark:hover:border-gray-600'
+                    }`}
+                  >
+                    <div className="flex items-start gap-3">
+                      <div className="w-10 h-10 bg-purple-100 dark:bg-purple-900/50 rounded-lg flex items-center justify-center flex-shrink-0">
+                        <GitBranch className="w-5 h-5 text-purple-600 dark:text-purple-400" />
+                      </div>
+                      <div className="flex-1">
+                        <h5 className="font-semibold text-gray-900 dark:text-white mb-1">
+                          New Workspace
+                        </h5>
+                        <p className="text-sm text-gray-600 dark:text-gray-400">
+                          Create a new workspace, optionally clone from a GitHub repository
+                        </p>
+                      </div>
+                    </div>
+                  </button>
+                </div>
+              </div>
+            </div>
+          )}
+
+          {/* Step 2: Configure workspace */}
+          {step === 2 && (
+            <div className="space-y-4">
+              {/* Workspace Path */}
+              <div>
+                <label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-2">
+                  {workspaceType === 'existing' ? 'Workspace Path' : 'Where should the workspace be created?'}
+                </label>
+                <div className="relative">
+                  <Input
+                    type="text"
+                    value={workspacePath}
+                    onChange={(e) => setWorkspacePath(e.target.value)}
+                    placeholder={workspaceType === 'existing' ? '/path/to/existing/workspace' : '/path/to/new/workspace'}
+                    className="w-full"
+                  />
+                  {showPathDropdown && pathSuggestions.length > 0 && (
+                    <div className="absolute z-10 w-full mt-1 bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg max-h-60 overflow-y-auto">
+                      {pathSuggestions.map((suggestion, index) => (
+                        <button
+                          key={index}
+                          onClick={() => selectPathSuggestion(suggestion)}
+                          className="w-full px-4 py-2 text-left hover:bg-gray-100 dark:hover:bg-gray-700 text-sm"
+                        >
+                          <div className="font-medium text-gray-900 dark:text-white">{suggestion.name}</div>
+                          <div className="text-xs text-gray-500 dark:text-gray-400">{suggestion.path}</div>
+                        </button>
+                      ))}
+                    </div>
+                  )}
+                </div>
+                <p className="mt-1 text-xs text-gray-500 dark:text-gray-400">
+                  {workspaceType === 'existing'
+                    ? 'Full path to your existing workspace directory'
+                    : 'Full path where the new workspace will be created'}
+                </p>
+              </div>
+
+              {/* GitHub URL (only for new workspace) */}
+              {workspaceType === 'new' && (
+                <>
+                  <div>
+                    <label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-2">
+                      GitHub URL (Optional)
+                    </label>
+                    <Input
+                      type="text"
+                      value={githubUrl}
+                      onChange={(e) => setGithubUrl(e.target.value)}
+                      placeholder="https://github.com/username/repository"
+                      className="w-full"
+                    />
+                    <p className="mt-1 text-xs text-gray-500 dark:text-gray-400">
+                      Leave empty to create an empty workspace, or provide a GitHub URL to clone
+                    </p>
+                  </div>
+
+                  {/* GitHub Token (only if GitHub URL is provided) */}
+                  {githubUrl && (
+                    <div className="bg-gray-50 dark:bg-gray-900/50 rounded-lg p-4 border border-gray-200 dark:border-gray-700">
+                      <div className="flex items-start gap-3 mb-4">
+                        <Key className="w-5 h-5 text-gray-600 dark:text-gray-400 flex-shrink-0 mt-0.5" />
+                        <div className="flex-1">
+                          <h5 className="font-medium text-gray-900 dark:text-white mb-1">
+                            GitHub Authentication (Optional)
+                          </h5>
+                          <p className="text-sm text-gray-600 dark:text-gray-400">
+                            Only required for private repositories. Public repos can be cloned without authentication.
+                          </p>
+                        </div>
+                      </div>
+
+                      {loadingTokens ? (
+                        <div className="flex items-center gap-2 text-sm text-gray-500">
+                          <Loader2 className="w-4 h-4 animate-spin" />
+                          Loading stored tokens...
+                        </div>
+                      ) : availableTokens.length > 0 ? (
+                        <>
+                          {/* Token Selection Tabs */}
+                          <div className="grid grid-cols-3 gap-2 mb-4">
+                            <button
+                              onClick={() => setTokenMode('stored')}
+                              className={`px-3 py-2 text-sm font-medium rounded-lg transition-colors ${
+                                tokenMode === 'stored'
+                                  ? 'bg-blue-500 text-white'
+                                  : 'bg-gray-200 dark:bg-gray-700 text-gray-700 dark:text-gray-300'
+                              }`}
+                            >
+                              Stored Token
+                            </button>
+                            <button
+                              onClick={() => setTokenMode('new')}
+                              className={`px-3 py-2 text-sm font-medium rounded-lg transition-colors ${
+                                tokenMode === 'new'
+                                  ? 'bg-blue-500 text-white'
+                                  : 'bg-gray-200 dark:bg-gray-700 text-gray-700 dark:text-gray-300'
+                              }`}
+                            >
+                              New Token
+                            </button>
+                            <button
+                              onClick={() => {
+                                setTokenMode('none');
+                                setSelectedGithubToken('');
+                                setNewGithubToken('');
+                              }}
+                              className={`px-3 py-2 text-sm font-medium rounded-lg transition-colors ${
+                                tokenMode === 'none'
+                                  ? 'bg-green-500 text-white'
+                                  : 'bg-gray-200 dark:bg-gray-700 text-gray-700 dark:text-gray-300'
+                              }`}
+                            >
+                              None (Public)
+                            </button>
+                          </div>
+
+                          {tokenMode === 'stored' ? (
+                            <div>
+                              <label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-2">
+                                Select Token
+                              </label>
+                              <select
+                                value={selectedGithubToken}
+                                onChange={(e) => setSelectedGithubToken(e.target.value)}
+                                className="w-full px-3 py-2 bg-white dark:bg-gray-800 border border-gray-300 dark:border-gray-600 rounded-lg text-sm"
+                              >
+                                <option value="">-- Select a token --</option>
+                                {availableTokens.map((token) => (
+                                  <option key={token.id} value={token.id}>
+                                    {token.credential_name}
+                                  </option>
+                                ))}
+                              </select>
+                            </div>
+                          ) : tokenMode === 'new' ? (
+                            <div>
+                              <label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-2">
+                                GitHub Token
+                              </label>
+                              <Input
+                                type="password"
+                                value={newGithubToken}
+                                onChange={(e) => setNewGithubToken(e.target.value)}
+                                placeholder="ghp_xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx"
+                                className="w-full"
+                              />
+                              <p className="mt-1 text-xs text-gray-500 dark:text-gray-400">
+                                This token will be used only for this operation
+                              </p>
+                            </div>
+                          ) : null}
+                        </>
+                      ) : (
+                        <div className="space-y-4">
+                          <div className="bg-blue-50 dark:bg-blue-900/20 rounded-lg p-3 border border-blue-200 dark:border-blue-800">
+                            <p className="text-sm text-blue-800 dark:text-blue-200">
+                              💡 <strong>Public repositories</strong> don't require authentication. You can skip providing a token if cloning a public repo.
+                            </p>
+                          </div>
+
+                          <div>
+                            <label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-2">
+                              GitHub Token (Optional for Public Repos)
+                            </label>
+                            <Input
+                              type="password"
+                              value={newGithubToken}
+                              onChange={(e) => setNewGithubToken(e.target.value)}
+                              placeholder="ghp_xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (leave empty for public repos)"
+                              className="w-full"
+                            />
+                            <p className="mt-1 text-xs text-gray-500 dark:text-gray-400">
+                              No stored tokens available. You can add tokens in Settings → API Keys for easier reuse.
+                            </p>
+                          </div>
+                        </div>
+                      )}
+                    </div>
+                  )}
+                </>
+              )}
+            </div>
+          )}
+
+          {/* Step 3: Confirm */}
+          {step === 3 && (
+            <div className="space-y-4">
+              <div className="bg-gray-50 dark:bg-gray-900/50 rounded-lg p-4 border border-gray-200 dark:border-gray-700">
+                <h4 className="text-sm font-semibold text-gray-900 dark:text-white mb-3">
+                  Review Your Configuration
+                </h4>
+                <div className="space-y-2">
+                  <div className="flex justify-between text-sm">
+                    <span className="text-gray-600 dark:text-gray-400">Workspace Type:</span>
+                    <span className="font-medium text-gray-900 dark:text-white">
+                      {workspaceType === 'existing' ? 'Existing Workspace' : 'New Workspace'}
+                    </span>
+                  </div>
+                  <div className="flex justify-between text-sm">
+                    <span className="text-gray-600 dark:text-gray-400">Path:</span>
+                    <span className="font-mono text-xs text-gray-900 dark:text-white break-all">
+                      {workspacePath}
+                    </span>
+                  </div>
+                  {workspaceType === 'new' && githubUrl && (
+                    <>
+                      <div className="flex justify-between text-sm">
+                        <span className="text-gray-600 dark:text-gray-400">Clone From:</span>
+                        <span className="font-mono text-xs text-gray-900 dark:text-white break-all">
+                          {githubUrl}
+                        </span>
+                      </div>
+                      <div className="flex justify-between text-sm">
+                        <span className="text-gray-600 dark:text-gray-400">Authentication:</span>
+                        <span className="text-xs text-gray-900 dark:text-white">
+                          {tokenMode === 'stored' && selectedGithubToken
+                            ? `Using stored token: ${availableTokens.find(t => t.id.toString() === selectedGithubToken)?.credential_name || 'Unknown'}`
+                            : tokenMode === 'new' && newGithubToken
+                            ? 'Using provided token'
+                            : 'No authentication'}
+                        </span>
+                      </div>
+                    </>
+                  )}
+                </div>
+              </div>
+
+              <div className="bg-blue-50 dark:bg-blue-900/20 rounded-lg p-4 border border-blue-200 dark:border-blue-800">
+                <p className="text-sm text-blue-800 dark:text-blue-200">
+                  {workspaceType === 'existing'
+                    ? 'The workspace will be added to your project list and will be available for Claude/Cursor sessions.'
+                    : githubUrl
+                    ? 'A new workspace will be created and the repository will be cloned from GitHub.'
+                    : 'An empty workspace directory will be created at the specified path.'}
+                </p>
+              </div>
+            </div>
+          )}
+        </div>
+
+        {/* Footer */}
+        <div className="flex items-center justify-between p-6 border-t border-gray-200 dark:border-gray-700">
+          <Button
+            variant="outline"
+            onClick={step === 1 ? onClose : handleBack}
+            disabled={isCreating}
+          >
+            {step === 1 ? (
+              'Cancel'
+            ) : (
+              <>
+                <ChevronLeft className="w-4 h-4 mr-1" />
+                Back
+              </>
+            )}
+          </Button>
+
+          <Button
+            onClick={step === 3 ? handleCreate : handleNext}
+            disabled={isCreating || (step === 1 && !workspaceType)}
+          >
+            {isCreating ? (
+              <>
+                <Loader2 className="w-4 h-4 mr-2 animate-spin" />
+                Creating...
+              </>
+            ) : step === 3 ? (
+              <>
+                <Check className="w-4 h-4 mr-1" />
+                Create Project
+              </>
+            ) : (
+              <>
+                Next
+                <ChevronRight className="w-4 h-4 ml-1" />
+              </>
+            )}
+          </Button>
+        </div>
+      </div>
+    </div>
+  );
+};
+
+export default ProjectCreationWizard;
diff --git a/src/components/Sidebar.jsx b/src/components/Sidebar.jsx
index f5c3e06..f619e7f 100644
--- a/src/components/Sidebar.jsx
+++ b/src/components/Sidebar.jsx
@@ -1,4 +1,5 @@
 import React, { useState, useEffect, useRef } from 'react';
+import ReactDOM from 'react-dom';
 import { ScrollArea } from './ui/scroll-area';
 import { Button } from './ui/button';
 import { Badge } from './ui/badge';
@@ -9,6 +10,7 @@ import { cn } from '../lib/utils';
 import ClaudeLogo from './ClaudeLogo';
 import CursorLogo from './CursorLogo.jsx';
 import TaskIndicator from './TaskIndicator';
+import ProjectCreationWizard from './ProjectCreationWizard';
 import { api } from '../utils/api';
 import { useTaskMaster } from '../contexts/TaskMasterContext';
 import { useTasksSettings } from '../contexts/TasksSettingsContext';
@@ -64,8 +66,6 @@ function Sidebar({
   const [editingProject, setEditingProject] = useState(null);
   const [showNewProject, setShowNewProject] = useState(false);
   const [editingName, setEditingName] = useState('');
-  const [newProjectPath, setNewProjectPath] = useState('');
-  const [creatingProject, setCreatingProject] = useState(false);
   const [loadingSessions, setLoadingSessions] = useState({});
   const [additionalSessions, setAdditionalSessions] = useState({});
   const [initialSessionsLoaded, setInitialSessionsLoaded] = useState(new Set());
@@ -76,10 +76,6 @@ function Sidebar({
   const [editingSessionName, setEditingSessionName] = useState('');
   const [generatingSummary, setGeneratingSummary] = useState({});
   const [searchFilter, setSearchFilter] = useState('');
-  const [showPathDropdown, setShowPathDropdown] = useState(false);
-  const [pathList, setPathList] = useState([]);
-  const [filteredPaths, setFilteredPaths] = useState([]);
-  const [selectedPathIndex, setSelectedPathIndex] = useState(-1);
 
   // TaskMaster context
   const { setCurrentProject, mcpServerStatus } = useTaskMaster();
@@ -184,123 +180,6 @@ function Sidebar({
     };
   }, []);
 
-  // Load available paths for suggestions
-  useEffect(() => {
-    const loadPaths = async () => {
-      try {
-        // Get recent paths from localStorage
-        const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
-        
-        // Load common/home directory paths
-        const response = await api.browseFilesystem();
-        const data = await response.json();
-        
-        if (data.suggestions) {
-          const homePaths = data.suggestions.map(s => ({ name: s.name, path: s.path }));
-          const allPaths = [...recentPaths.map(path => ({ name: path.split('/').pop(), path })), ...homePaths];
-          setPathList(allPaths);
-        } else {
-          setPathList(recentPaths.map(path => ({ name: path.split('/').pop(), path })));
-        }
-      } catch (error) {
-        console.error('Error loading paths:', error);
-        const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
-        setPathList(recentPaths.map(path => ({ name: path.split('/').pop(), path })));
-      }
-    };
-
-    loadPaths();
-  }, []);
-
-  // Handle input change and path filtering with dynamic browsing (ChatInterface pattern + dynamic browsing)
-  useEffect(() => {
-    const inputValue = newProjectPath.trim();
-    
-    if (inputValue.length === 0) {
-      setShowPathDropdown(false);
-      return;
-    }
-    
-    // Show dropdown when user starts typing
-    setShowPathDropdown(true);
-    
-    const updateSuggestions = async () => {
-      // First show filtered existing suggestions from pathList
-      const staticFiltered = pathList.filter(pathItem => 
-        pathItem.name.toLowerCase().includes(inputValue.toLowerCase()) ||
-        pathItem.path.toLowerCase().includes(inputValue.toLowerCase())
-      );
-
-      // Check if input looks like a directory path for dynamic browsing
-      const isDirPath = inputValue.includes('/') && inputValue.length > 1;
-      
-      if (isDirPath) {
-        try {
-          let dirToSearch;
-          
-          // Determine which directory to search
-          if (inputValue.endsWith('/')) {
-            // User typed "/home/simos/" - search inside /home/simos
-            dirToSearch = inputValue.slice(0, -1);
-          } else {
-            // User typed "/home/simos/con" - search inside /home/simos for items starting with "con"
-            const lastSlashIndex = inputValue.lastIndexOf('/');
-            dirToSearch = inputValue.substring(0, lastSlashIndex);
-          }
-          
-          // Only search if we have a valid directory path (not root only)
-          if (dirToSearch && dirToSearch !== '') {
-            const response = await api.browseFilesystem(dirToSearch);
-            const data = await response.json();
-            
-            if (data.suggestions) {
-              // Filter directories that match the current input
-              const partialName = inputValue.substring(inputValue.lastIndexOf('/') + 1);
-              const dynamicPaths = data.suggestions
-                .filter(suggestion => {
-                  const dirName = suggestion.name;
-                  return partialName ? dirName.toLowerCase().startsWith(partialName.toLowerCase()) : true;
-                })
-                .map(s => ({ name: s.name, path: s.path }))
-                .slice(0, 8);
-              
-              // Combine static and dynamic suggestions, prioritize dynamic
-              const combined = [...dynamicPaths, ...staticFiltered].slice(0, 8);
-              setFilteredPaths(combined);
-              setSelectedPathIndex(-1);
-              return;
-            }
-          }
-        } catch (error) {
-          console.debug('Dynamic browsing failed:', error.message);
-        }
-      }
-
-      // Fallback to just static filtered suggestions
-      setFilteredPaths(staticFiltered.slice(0, 8));
-      setSelectedPathIndex(-1);
-    };
-
-    updateSuggestions();
-  }, [newProjectPath, pathList]);
-
-  // Select path from dropdown (ChatInterface pattern)
-  const selectPath = (pathItem) => {
-    setNewProjectPath(pathItem.path);
-    setShowPathDropdown(false);
-    setSelectedPathIndex(-1);
-  };
-
-  // Save path to recent paths
-  const saveToRecentPaths = (path) => {
-    try {
-      const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
-      const updatedPaths = [path, ...recentPaths.filter(p => p !== path)].slice(0, 10);
-      localStorage.setItem('recentProjectPaths', JSON.stringify(updatedPaths));
-    } catch (error) {
-      console.error('Error saving recent paths:', error);
-    }
-  };
 
   const toggleProject = (projectName) => {
     const newExpanded = new Set();
@@ -569,10 +448,27 @@ function Sidebar({
   };
 
   return (
-    <div 
-      className="h-full flex flex-col bg-card md:select-none"
-      style={isPWA && isMobile ? { paddingTop: '44px' } : {}}
-    >
+    <>
+      {/* Project Creation Wizard Modal - Rendered via Portal at document root for full-screen on mobile */}
+      {showNewProject && ReactDOM.createPortal(
+        <ProjectCreationWizard
+          onClose={() => setShowNewProject(false)}
+          onProjectCreated={(project) => {
+            // Refresh projects list after creation
+            if (window.refreshProjects) {
+              window.refreshProjects();
+            } else {
+              window.location.reload();
+            }
+          }}
+        />,
+        document.body
+      )}
+
+      <div
+        className="h-full flex flex-col bg-card md:select-none"
+        style={isPWA && isMobile ? { paddingTop: '44px' } : {}}
+      >
       {/* Header */}
       <div className="md:p-4 md:border-b md:border-border">
         {/* Desktop Header */}
@@ -646,263 +542,7 @@ function Sidebar({
           </div>
         </div>
       </div>
-      
 
-      {/* New Project Form */}
-      {showNewProject && (
-        <div className="md:p-3 md:border-b md:border-border md:bg-muted/30">
-          {/* Desktop Form */}
-          <div className="hidden md:block space-y-2">
-            <div className="flex items-center gap-2 text-sm font-medium text-foreground">
-              <FolderPlus className="w-4 h-4" />
-              Create New Project
-            </div>
-            <div className="relative">
-              <Input
-                value={newProjectPath}
-                onChange={(e) => setNewProjectPath(e.target.value)}
-                placeholder="/path/to/project or relative/path"
-                className="text-sm focus:ring-2 focus:ring-primary/20"
-                autoFocus
-                onKeyDown={(e) => {
-                  // Handle path dropdown navigation (ChatInterface pattern)
-                  if (showPathDropdown && filteredPaths.length > 0) {
-                    if (e.key === 'ArrowDown') {
-                      e.preventDefault();
-                      setSelectedPathIndex(prev => 
-                        prev < filteredPaths.length - 1 ? prev + 1 : 0
-                      );
-                    } else if (e.key === 'ArrowUp') {
-                      e.preventDefault();
-                      setSelectedPathIndex(prev => 
-                        prev > 0 ? prev - 1 : filteredPaths.length - 1
-                      );
-                    } else if (e.key === 'Enter') {
-                      e.preventDefault();
-                      if (selectedPathIndex >= 0) {
-                        selectPath(filteredPaths[selectedPathIndex]);
-                      } else if (filteredPaths.length > 0) {
-                        selectPath(filteredPaths[0]);
-                      } else {
-                        createNewProject();
-                      }
-                      return;
-                    } else if (e.key === 'Escape') {
-                      e.preventDefault();
-                      setShowPathDropdown(false);
-                      return;
-                    } else if (e.key === 'Tab') {
-                      e.preventDefault();
-                      if (selectedPathIndex >= 0) {
-                        selectPath(filteredPaths[selectedPathIndex]);
-                      } else if (filteredPaths.length > 0) {
-                        selectPath(filteredPaths[0]);
-                      }
-                      return;
-                    }
-                  }
-
-                  // Regular input handling
-                  if (e.key === 'Enter') {
-                    createNewProject();
-                  }
-                  if (e.key === 'Escape') {
-                    cancelNewProject();
-                  }
-                }}
-              />
-              
-              {/* Path dropdown (ChatInterface pattern) */}
-              {showPathDropdown && filteredPaths.length > 0 && (
-                <div className="absolute top-full left-0 right-0 mt-1 bg-popover border border-border rounded-md shadow-lg max-h-48 overflow-y-auto z-50">
-                  {filteredPaths.map((pathItem, index) => (
-                    <div
-                      key={pathItem.path}
-                      className={`px-3 py-2 cursor-pointer border-b border-border last:border-b-0 ${
-                        index === selectedPathIndex
-                          ? 'bg-accent text-accent-foreground'
-                          : 'hover:bg-accent/50'
-                      }`}
-                      onMouseDown={(e) => {
-                        e.preventDefault();
-                        e.stopPropagation();
-                      }}
-                      onClick={(e) => {
-                        e.preventDefault();
-                        e.stopPropagation();
-                        selectPath(pathItem);
-                      }}
-                    >
-                      <div className="flex items-center gap-2">
-                        <Folder className="w-3 h-3 text-muted-foreground flex-shrink-0" />
-                        <div>
-                          <div className="font-medium text-sm">{pathItem.name}</div>
-                          <div className="text-xs text-muted-foreground font-mono">
-                            {pathItem.path}
-                          </div>
-                        </div>
-                      </div>
-                    </div>
-                  ))}
-                </div>
-              )}
-            </div>
-            <div className="flex gap-2">
-              <Button
-                size="sm"
-                onClick={createNewProject}
-                disabled={!newProjectPath.trim() || creatingProject}
-                className="flex-1 h-8 text-xs hover:bg-primary/90 transition-colors"
-              >
-                {creatingProject ? 'Creating...' : 'Create Project'}
-              </Button>
-              <Button
-                size="sm"
-                variant="outline"
-                onClick={cancelNewProject}
-                disabled={creatingProject}
-                className="h-8 text-xs hover:bg-accent transition-colors"
-              >
-                Cancel
-              </Button>
-            </div>
-          </div>
-          
-          {/* Mobile Form - Simple Overlay */}
-          <div className="md:hidden fixed inset-0 z-[70] bg-black/50 backdrop-blur-sm flex items-end justify-center px-4 pb-24">
-            <div className="w-full max-w-sm bg-card rounded-t-lg border-t border-border p-4 space-y-4 animate-in slide-in-from-bottom duration-300">
-              <div className="flex items-center justify-between">
-                <div className="flex items-center gap-2">
-                  <div className="w-6 h-6 bg-primary/10 rounded-md flex items-center justify-center">
-                    <FolderPlus className="w-3 h-3 text-primary" />
-                  </div>
-                  <div>
-                    <h2 className="text-base font-semibold text-foreground">New Project</h2>
-                  </div>
-                </div>
-                <button
-                  onClick={cancelNewProject}
-                  disabled={creatingProject}
-                  className="w-6 h-6 rounded-md bg-muted flex items-center justify-center active:scale-95 transition-transform"
-                >
-                  <X className="w-3 h-3" />
-                </button>
-              </div>
-              
-              <div className="space-y-3">
-                <div className="relative">
-                  <Input
-                    value={newProjectPath}
-                    onChange={(e) => setNewProjectPath(e.target.value)}
-                    placeholder="/path/to/project or relative/path"
-                    className="text-sm h-10 rounded-md focus:border-primary transition-colors"
-                    autoFocus
-                    onKeyDown={(e) => {
-                      // Handle path dropdown navigation (same as desktop)
-                      if (showPathDropdown && filteredPaths.length > 0) {
-                        if (e.key === 'ArrowDown') {
-                          e.preventDefault();
-                          setSelectedPathIndex(prev => 
-                            prev < filteredPaths.length - 1 ? prev + 1 : 0
-                          );
-                        } else if (e.key === 'ArrowUp') {
-                          e.preventDefault();
-                          setSelectedPathIndex(prev => 
-                            prev > 0 ? prev - 1 : filteredPaths.length - 1
-                          );
-                        } else if (e.key === 'Enter') {
-                          e.preventDefault();
-                          if (selectedPathIndex >= 0) {
-                            selectPath(filteredPaths[selectedPathIndex]);
-                          } else if (filteredPaths.length > 0) {
-                            selectPath(filteredPaths[0]);
-                          } else {
-                            createNewProject();
-                          }
-                          return;
-                        } else if (e.key === 'Escape') {
-                          e.preventDefault();
-                          setShowPathDropdown(false);
-                          return;
-                        }
-                      }
-
-                      // Regular input handling
-                      if (e.key === 'Enter') {
-                        createNewProject();
-                      }
-                      if (e.key === 'Escape') {
-                        cancelNewProject();
-                      }
-                    }}
-                    style={{
-                      fontSize: '16px', // Prevents zoom on iOS
-                      WebkitAppearance: 'none'
-                    }}
-                  />
-                  
-                  {/* Mobile Path dropdown */}
-                  {showPathDropdown && filteredPaths.length > 0 && (
-                    <div className="absolute bottom-full left-0 right-0 mb-2 bg-popover border border-border rounded-md shadow-lg max-h-40 overflow-y-auto">
-                      {filteredPaths.map((pathItem, index) => (
-                        <div
-                          key={pathItem.path}
-                          className={`px-3 py-2.5 cursor-pointer border-b border-border last:border-b-0 active:scale-95 transition-all ${
-                            index === selectedPathIndex
-                              ? 'bg-accent text-accent-foreground'
-                              : 'hover:bg-accent/50'
-                          }`}
-                          onMouseDown={(e) => {
-                            e.preventDefault();
-                            e.stopPropagation();
-                          }}
-                          onClick={(e) => {
-                            e.preventDefault();
-                            e.stopPropagation();
-                            selectPath(pathItem);
-                          }}
-                        >
-                          <div className="flex items-center gap-2">
-                            <Folder className="w-3 h-3 text-muted-foreground flex-shrink-0" />
-                            <div>
-                              <div className="font-medium text-sm">{pathItem.name}</div>
-                              <div className="text-xs text-muted-foreground font-mono">
-                                {pathItem.path}
-                              </div>
-                            </div>
-                          </div>
-                        </div>
-                      ))}
-                    </div>
-                  )}
-                </div>
-                
-                <div className="flex gap-2">
-                  <Button
-                    onClick={cancelNewProject}
-                    disabled={creatingProject}
-                    variant="outline"
-                    className="flex-1 h-9 text-sm rounded-md active:scale-95 transition-transform"
-                  >
-                    Cancel
-                  </Button>
-                  <Button
-                    onClick={createNewProject}
-                    disabled={!newProjectPath.trim() || creatingProject}
-                    className="flex-1 h-9 text-sm rounded-md bg-primary hover:bg-primary/90 active:scale-95 transition-all"
-                  >
-                    {creatingProject ? 'Creating...' : 'Create'}
-                  </Button>
-                </div>
-              </div>
-              
-              {/* Safe area for mobile */}
-              <div className="h-4" />
-            </div>
-          </div>
-        </div>
-      )}
-      
       {/* Search Filter and Actions */}
       {projects.length > 0 && !isLoading && (
         <div className="px-3 md:px-4 py-2 border-b border-border space-y-2">
@@ -1691,6 +1331,7 @@ function Sidebar({
         </Button>
       </div>
     </div>
+    </>
   );
 }
 
diff --git a/src/contexts/AuthContext.jsx b/src/contexts/AuthContext.jsx
index 77acb6c..c227814 100644
--- a/src/contexts/AuthContext.jsx
+++ b/src/contexts/AuthContext.jsx
@@ -34,12 +34,14 @@ export const AuthProvider = ({ children }) => {
 
   const checkAuthStatus = async () => {
     try {
+      console.log('[AuthContext] Checking auth status...');
       setIsLoading(true);
       setError(null);
-      
+
       // Check if system needs setup
       const statusResponse = await api.auth.status();
       const statusData = await statusResponse.json();
+      console.log('[AuthContext] Status response:', statusData);
       
       if (statusData.needsSetup) {
         setNeedsSetup(true);
@@ -70,9 +72,10 @@ export const AuthProvider = ({ children }) => {
         }
       }
     } catch (error) {
-      console.error('Auth status check failed:', error);
+      console.error('[AuthContext] Auth status check failed:', error);
       setError('Failed to check authentication status');
     } finally {
+      console.log('[AuthContext] Auth check complete, isLoading=false');
       setIsLoading(false);
     }
   };
diff --git a/src/index.css b/src/index.css
index d47186a..90abc99 100644
--- a/src/index.css
+++ b/src/index.css
@@ -79,7 +79,7 @@
     --destructive: 0 62.8% 30.6%;
     --destructive-foreground: 210 40% 98%;
     --border: 217.2 32.6% 17.5%;
-    --input: 217.2 32.6% 17.5%;
+    --input: 220 13% 46%;
     --ring: 217.2 91.2% 59.8%;
   }
 }
diff --git a/src/utils/api.js b/src/utils/api.js
index e3a93d3..9459417 100644
--- a/src/utils/api.js
+++ b/src/utils/api.js
@@ -71,6 +71,11 @@ export const api = {
       method: 'POST',
       body: JSON.stringify({ path }),
     }),
+  createWorkspace: (workspaceData) =>
+    authenticatedFetch('/api/projects/create-workspace', {
+      method: 'POST',
+      body: JSON.stringify(workspaceData),
+    }),
   readFile: (projectName, filePath) =>
     authenticatedFetch(`/api/projects/${projectName}/file?filePath=${encodeURIComponent(filePath)}`),
   saveFile: (projectName, filePath, content) =>