diff --git a/README.md b/README.md
index 41cda24..4d587b5 100644
--- a/README.md
+++ b/README.md
@@ -1,19 +1,18 @@
-# Python Library Template
+# Python App Template
 
-A [Cookiecutter](https://github.com/cookiecutter/cookiecutter) template for creating modern Python libraries with uv, ruff, mypy, and pytest.
+A Cookiecutter template for building CLI-first Python applications with uv, Typer, Pydantic, and strict typing.
 
 ## Features
 
-- **Modern Python setup** with Python 3.12+ support
-- **uv** for fast dependency management
-- **Ruff** for linting and formatting
-- **MyPy** for type checking
+- **CLI-first** architecture with Typer
+- **Local-first config** (XDG paths) with env override
+- **uv** for fast dependency management and reproducible installs
+- **Ruff** for linting/formatting
+- **MyPy** with strict typing
 - **Pytest** with coverage support
-- **bump-my-version** for automated version management
 - **Invoke** tasks for common operations
-- **Pre-configured** development workflow
-- **Type hints** support with py.typed marker
-- **CLAUDE.md** guidance for Claude Code integration
+- **py.typed** marker for typed packages
+- **Example command** wired from core `commands/` into CLI
 
 ## Quick Start
 
@@ -24,12 +23,12 @@ A [Cookiecutter](https://github.com/cookiecutter/cookiecutter) template for crea
 
 2. Generate a new project:
    ```bash
-   cruft create https://gitlab.com/roxautomation/templates/python-lib-template
+   cruft create https://gitlab.com/roxautomation/templates/python-app-template
    ```
 
    Or locally:
    ```bash
-   cookiecutter /path/to/python-lib-template
+   cookiecutter /path/to/python-app-template
    ```
 
 3. The template will prompt for project details and automatically:
@@ -42,10 +41,10 @@ A [Cookiecutter](https://github.com/cookiecutter/cookiecutter) template for crea
 
 | Variable | Description | Example |
 |----------|-------------|---------|
-| `project_name` | Human-readable project name | "My Python Library" |
-| `project_slug` | Repository/directory name | "my-python-library" |
-| `package_name` | Python package name | "my_python_library" |
-| `description` | Short project description | "A modern Python library" |
+| `project_name` | Human-readable project name | "My CLI App" |
+| `project_slug` | Repository/directory name | "my-cli-app" |
+| `package_name` | Python package name | "my_cli_app" |
+| `description` | Short project description | "A modern CLI tool" |
 | `author_name` | Author's full name | "Your Name" |
 | `author_email` | Author's email | "your.email@example.com" |
 | `version` | Initial version | "0.1.0" |
@@ -55,49 +54,58 @@ A [Cookiecutter](https://github.com/cookiecutter/cookiecutter) template for crea
 
 ```
 your-project/
-├── CLAUDE.md                    # Claude Code guidance
-├── README.md                    # Project documentation
-├── pyproject.toml               # Project configuration
-├── tasks.py                     # Invoke tasks
+├── README.md
+├── pyproject.toml
+├── tasks.py
 ├── src/
 │   └── your_package/
 │       ├── __init__.py
-│       ├── core.py
-│       └── py.typed
+│       ├── py.typed
+│       ├── cli/
+│       │   ├── __init__.py
+│       │   ├── app.py
+│       │   ├── common.py
+│       │   ├── config.py
+│       │   └── hello.py
+│       ├── config/
+│       │   ├── __init__.py
+│       │   ├── paths.py
+│       │   └── settings.py
+│       ├── commands/
+│       │   ├── __init__.py
+│       │   └── hello.py
+│       ├── models/
+│       │   └── __init__.py
+│       └── utils/
+│           ├── __init__.py
+│           └── logging.py
 ├── tests/
-│   └── test_your_package.py
+│   ├── conftest.py
+│   ├── test_public.py
+│   └── test_internals.py
 └── examples/
-    └── basic_usage.py
+    └── config_init.sh
 ```
 
 ## Development Workflow
 
-The generated project includes these common tasks:
-
 ### Setup
 ```bash
-uv sync
+uv sync --group dev
 ```
 
 ### Code Quality
 ```bash
-uv run ruff check --fix    # Linting
-uv run ruff format         # Formatting
-uv run mypy .              # Type checking
-uv run invoke lint         # All quality checks
+uv run ruff check src tests
+uv run ruff format src tests
+uv run mypy src
+uv run invoke lint
 ```
 
 ### Testing
 ```bash
-uv run pytest                    # Run tests
-uv run invoke test               # Run tests with coverage
-```
-
-### Version Management
-```bash
-uv run bump-my-version bump patch    # 0.1.0 → 0.1.1
-uv run bump-my-version bump minor    # 0.1.0 → 0.2.0
-uv run bump-my-version bump major    # 0.1.0 → 1.0.0
+uv run pytest
+uv run invoke test
 ```
 
 ## Template Development
diff --git a/cookiecutter.json b/cookiecutter.json
index dccf19f..83eae8c 100644
--- a/cookiecutter.json
+++ b/cookiecutter.json
@@ -1,11 +1,11 @@
 {
-    "project_name": "My Python Library",
+    "project_name": "My CLI App",
     "project_slug": "{{ cookiecutter.project_name.lower().replace(' ', '-').replace('_', '-') }}",
     "package_name": "{{ cookiecutter.project_slug.replace('-', '_') }}",
-    "description": "A modern Python library",
+    "description": "A modern CLI tool",
     "author_name": "Your Name",
     "author_email": "your.email@example.com",
     "version": "0.1.0",
     "python_version": "3.12",
     "year": "{% now 'utc', '%Y' %}"
-}
\ No newline at end of file
+}
diff --git a/hooks/post_gen_project.py b/hooks/post_gen_project.py
index 2fd0fd8..12141b8 100755
--- a/hooks/post_gen_project.py
+++ b/hooks/post_gen_project.py
@@ -29,11 +29,14 @@ def main():
     run_command(["git", "init"], "git init")
     
     # Sync dependencies with uv
-    run_command(["uv", "sync"], "uv sync")
+    run_command(["uv", "sync", "--group", "dev"], "uv sync --group dev")
     
     # Run initial formatting and linting
-    run_command(["uv", "run", "ruff", "format", "src"], "ruff format")
-    run_command(["uv", "run", "ruff", "check", "--fix", "src"], "ruff check --fix")
+    run_command(["uv", "run", "ruff", "format", "src", "tests"], "ruff format")
+    run_command(
+        ["uv", "run", "ruff", "check", "--fix", "src", "tests"],
+        "ruff check --fix",
+    )
     
     # Run type checking
     try:
@@ -52,10 +55,10 @@ def main():
     print("Next steps:")
     print("1. Review and customize the generated files")
     print("2. Add your actual dependencies to pyproject.toml")
-    print("3. Implement your library functionality in src/")
+    print("3. Implement your core logic in src/")
     print("4. Update tests as needed")
     print("5. Update README.md with proper documentation")
 
 
 if __name__ == "__main__":
-    main()
\ No newline at end of file
+    main()
diff --git a/test.sh b/test.sh
index beb4467..fd27998 100755
--- a/test.sh
+++ b/test.sh
@@ -44,30 +44,56 @@ check_tool() {
 # Main test function
 main() {
     print_status "Starting template test..."
-    
+
+    # Get the template directory
+    TEMPLATE_DIR="$(cd "$(dirname "$0")" && pwd)"
+
     # Check which template tool is available
+    CRUFT_AVAILABLE=0
+    COOKIECUTTER_AVAILABLE=0
     if command -v cruft &> /dev/null; then
-        TEMPLATE_TOOL="cruft"
-        print_status "Using cruft for template generation"
-    elif command -v cookiecutter &> /dev/null; then
-        TEMPLATE_TOOL="cookiecutter"
-        print_status "Using cookiecutter for template generation"
-    else
+        CRUFT_AVAILABLE=1
+    fi
+    if command -v cookiecutter &> /dev/null; then
+        COOKIECUTTER_AVAILABLE=1
+    fi
+
+    if [ "$CRUFT_AVAILABLE" -eq 0 ] && [ "$COOKIECUTTER_AVAILABLE" -eq 0 ]; then
         print_error "Neither cruft nor cookiecutter is installed. Please install one of them."
         print_status "Install with: pip install cruft or pip install cookiecutter"
         exit 1
     fi
-    
+
+    if git -C "$TEMPLATE_DIR" rev-parse --is-inside-work-tree &> /dev/null; then
+        if [ -n "$(git -C "$TEMPLATE_DIR" status --porcelain)" ]; then
+            if [ "$COOKIECUTTER_AVAILABLE" -eq 1 ]; then
+                TEMPLATE_TOOL="cookiecutter"
+                print_warning "Working tree is dirty; using cookiecutter to include local changes"
+            else
+                TEMPLATE_TOOL="cruft"
+                print_warning "Working tree is dirty but cookiecutter is unavailable; using cruft"
+            fi
+        fi
+    fi
+
+    if [ -z "${TEMPLATE_TOOL:-}" ]; then
+        if [ "$CRUFT_AVAILABLE" -eq 1 ]; then
+            TEMPLATE_TOOL="cruft"
+            print_status "Using cruft for template generation"
+        else
+            TEMPLATE_TOOL="cookiecutter"
+            print_status "Using cookiecutter for template generation"
+        fi
+    fi
+
     # Check for uv
     check_tool "uv"
-    
-    # Get the template directory
-    TEMPLATE_DIR="$(cd "$(dirname "$0")" && pwd)"
+
     print_status "Template directory: $TEMPLATE_DIR"
-    
+
     # Set up build directory
     TEMP_DIR="$TEMPLATE_DIR/build"
-    
+
     # Check if build directory exists and ask for confirmation
     if [ -d "$TEMP_DIR" ]; then
         print_warning "Build directory already exists: $TEMP_DIR"
@@ -80,17 +106,17 @@ main() {
         print_status "Removing existing build directory..."
         rm -rf "$TEMP_DIR"
     fi
-    
+
     # Create build directory
     mkdir -p "$TEMP_DIR"
     print_status "Created build directory: $TEMP_DIR"
-    
+
     # Generate project from template
     print_status "Generating example project from template..."
-    
+
     # Default values for the template
     PROJECT_NAME="test-project"
-    
+
     if [ "$TEMPLATE_TOOL" = "cruft" ]; then
         cd "$TEMP_DIR"
         cruft create "$TEMPLATE_DIR" \
@@ -111,55 +137,55 @@ main() {
             python_version="3.12" \
             || { print_error "Failed to generate project with cookiecutter"; exit 1; }
     fi
-    
+
     # Navigate to generated project
     cd "$TEMP_DIR/$PROJECT_NAME"
     print_status "Generated project at: $(pwd)"
-    
+
     # List generated files
     print_status "Generated files:"
     ls -la
-    
+
     # Install dependencies
     print_status "Installing dependencies with uv..."
-    uv sync || { print_error "Failed to install dependencies"; exit 1; }
-    
+    uv sync --group dev || { print_error "Failed to install dependencies"; exit 1; }
+
     # Run ruff check
     print_status "Running ruff check..."
-    uv run ruff check src || { print_error "Ruff check failed"; exit 1; }
-    
+    uv run ruff check src tests || { print_error "Ruff check failed"; exit 1; }
+
     # Run ruff format check
     print_status "Running ruff format check..."
-    uv run ruff format --check src || { print_error "Ruff format check failed"; exit 1; }
-    
+    uv run ruff format --check src tests || { print_error "Ruff format check failed"; exit 1; }
+
     # Run mypy
     print_status "Running mypy type checking..."
     uv run mypy src || { print_error "Mypy type checking failed"; exit 1; }
-    
+
     # Run tests
     print_status "Running tests..."
     uv run pytest || { print_error "Tests failed"; exit 1; }
-    
+
     # Run tests with coverage
     print_status "Running tests with coverage..."
     uv run pytest --cov=src --cov-report=term-missing || { print_error "Tests with coverage failed"; exit 1; }
-    
+
     # Try running invoke tasks
     print_status "Testing invoke lint task..."
     uv run invoke lint || { print_error "Invoke lint task failed"; exit 1; }
-    
+
     print_status "Testing invoke test task..."
     uv run invoke test || { print_error "Invoke test task failed"; exit 1; }
-    
+
     # Check if example script runs
-    if [ -f "examples/basic_usage.py" ]; then
+    if [ -f "examples/config_init.sh" ]; then
         print_status "Running example script..."
-        uv run python examples/basic_usage.py || print_warning "Example script failed (this may be expected if it's a placeholder)"
+        bash examples/config_init.sh || print_warning "Example script failed (this may be expected if it's a placeholder)"
     fi
-    
+
     print_status "✅ All tests passed successfully!"
     print_status "Template is working correctly."
 }
 
 # Run main function
-main "$@"
\ No newline at end of file
+main "$@"
diff --git a/{{cookiecutter.project_slug}}/CLAUDE.md b/{{cookiecutter.project_slug}}/CLAUDE.md
deleted file mode 100644
index e5e58bf..0000000
--- a/{{cookiecutter.project_slug}}/CLAUDE.md
+++ /dev/null
@@ -1,49 +0,0 @@
-# CLAUDE.md
-
-This file provides guidance to Claude Code (claude.ai/code) when working with code in this repository.
-
-## Project Overview
-
-`{{ cookiecutter.project_slug }}` is a Python library for {{ cookiecutter.description.lower() }}.
-
-## Development Commands
-
-### Setup
-```bash
-uv sync
-```
-
-### Code Quality
-- **Linting and formatting**: `uv run ruff check --fix` and `uv run ruff format`
-- **Type checking**: `uv run mypy .`
-- **Combined linting**: `uv run invoke lint`
-
-### Testing
-- **Run tests**: `uv run pytest`
-- **Run tests with coverage**: `uv run invoke test`
-
-### Maintenance
-- **Clean untracked files**: `uv run invoke clean` (interactive)
-- **Version bumping**: `uv run bump-my-version bump [patch|minor|major]`
-
-## Project Structure
-
-```
-src/{{ cookiecutter.package_name }}/
-├── __init__.py              # Package initialization
-├── core.py                  # Main functionality
-└── py.typed                 # Type hints marker
-
-examples/
-└── basic_usage.py           # Usage examples
-
-tests/
-└── test_{{ cookiecutter.package_name }}.py    # Test suite
-```
-
-## Development Notes
-
-- Uses Python {{ cookiecutter.python_version }}+ with modern type hints
-- Configured with ruff for linting/formatting and mypy for type checking
-- Built with uv for dependency management
-- Includes invoke tasks for common operations
\ No newline at end of file
diff --git a/{{cookiecutter.project_slug}}/README.md b/{{cookiecutter.project_slug}}/README.md
index 19c034b..dd15613 100644
--- a/{{cookiecutter.project_slug}}/README.md
+++ b/{{cookiecutter.project_slug}}/README.md
@@ -5,52 +5,52 @@
 ## Installation
 
 ```bash
-pip install {{ cookiecutter.project_slug }}
+uv sync
+```
+
+## Usage
+
+```bash
+{{ cookiecutter.project_slug }} --help
+{{ cookiecutter.project_slug }} config show
+{{ cookiecutter.project_slug }} config init
+```
+
+## Configuration
+
+Default config path (XDG):
+
+```
+~/.config/{{ cookiecutter.project_slug }}/config.toml
+```
+
+Override with:
+
+```bash
+export {{ cookiecutter.package_name | upper }}_CONFIG=/path/to/config.toml
 ```
 
 ## Development
 
-This project uses `uv` for dependency management and the following tools:
-
 ### Setup
 ```bash
-uv sync
+uv sync --group dev
 ```
 
 ### Code Quality
-- **Ruff**: Linting and formatting
-  ```bash
-  uv run ruff check --fix
-  uv run ruff format
-  ```
-
-- **MyPy**: Type checking
-  ```bash
-  uv run mypy .
-  ```
+```bash
+uv run ruff check src tests
+uv run ruff format src tests
+uv run mypy src
+uv run invoke lint
+```
 
 ### Testing
 ```bash
 uv run pytest
-```
-
-### Version Management
-- **bump-my-version**: Automated version bumping with git tags
-  ```bash
-  uv run bump-my-version bump patch    # {{ cookiecutter.version }} → 0.1.1
-  uv run bump-my-version bump minor    # {{ cookiecutter.version }} → 0.2.0
-  uv run bump-my-version bump major    # {{ cookiecutter.version }} → 1.0.0
-  ```
-
-## Usage
-
-```python
-from {{ cookiecutter.package_name }}.core import say_hello
-
-say_hello()  # prints: Hello, World!
-say_hello("Alice")  # prints: Hello, Alice!
+uv run invoke test
 ```
 
 ## License
 
-MIT License - see LICENSE file for details.
\ No newline at end of file
+MIT License - see LICENSE file for details.
diff --git a/{{cookiecutter.project_slug}}/examples/basic_usage.py b/{{cookiecutter.project_slug}}/examples/basic_usage.py
deleted file mode 100644
index 260e91a..0000000
--- a/{{cookiecutter.project_slug}}/examples/basic_usage.py
+++ /dev/null
@@ -1,16 +0,0 @@
-"""Basic usage example for {{ cookiecutter.project_name }}."""
-
-from {{ cookiecutter.package_name }}.core import say_hello
-
-
-def main():
-    """Demonstrate basic usage."""
-    # Basic hello
-    say_hello()
-
-    # Hello with a name
-    say_hello("{{ cookiecutter.project_name }}")
-
-
-if __name__ == "__main__":
-    main()
\ No newline at end of file
diff --git a/{{cookiecutter.project_slug}}/examples/config_init.sh b/{{cookiecutter.project_slug}}/examples/config_init.sh
new file mode 100644
index 0000000..03e7df0
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/examples/config_init.sh
@@ -0,0 +1,6 @@
+#!/usr/bin/env bash
+
+set -euo pipefail
+
+uv run {{ cookiecutter.project_slug }} config init
+uv run {{ cookiecutter.project_slug }} config show
diff --git a/{{cookiecutter.project_slug}}/pyproject.toml b/{{cookiecutter.project_slug}}/pyproject.toml
index 1d4f7ef..9c77b3b 100644
--- a/{{cookiecutter.project_slug}}/pyproject.toml
+++ b/{{cookiecutter.project_slug}}/pyproject.toml
@@ -8,35 +8,39 @@ authors = [
 ]
 requires-python = ">={{ cookiecutter.python_version }}"
 dependencies = [
-    # Add your project dependencies here
+    "coloredlogs>=15.0",
+    "pydantic>=2.0",
+    "typer>=0.12",
 ]
 
+[project.scripts]
+{{ cookiecutter.project_slug }} = "{{ cookiecutter.package_name }}.cli.app:app"
+
 [build-system]
 requires = ["uv_build>=0.8.8,<0.9.0"]
 build-backend = "uv_build"
 
 [dependency-groups]
 dev = [
-    "bump-my-version>=1.2.1",
     "invoke>=2.2.0",
-    "mypy>=1.17.1",
-    "pytest>=8.4.1",
-    "pytest-cov>=6.1.0",
-    "ruff>=0.12.8",
+    "mypy>=1.10",
+    "pytest>=8.0",
+    "pytest-cov>=4.0",
+    "ruff>=0.4",
 ]
 
-[tool.bumpversion]
-current_version = "{{ cookiecutter.version }}"
-commit = true
-tag = true
-tag_name = "v{new_version}"
+[tool.mypy]
+python_version = "{{ cookiecutter.python_version }}"
+strict = true
+files = ["src"]
 
-[[tool.bumpversion.files]]
-filename = "pyproject.toml"
-search = "version = \"{current_version}\""
-replace = "version = \"{new_version}\""
+[tool.pytest.ini_options]
+testpaths = ["tests"]
+
+[tool.ruff]
+target-version = "py312"
+line-length = 100
 
-#------------------ruff configuration----------------
 [tool.ruff.lint]
 extend-select = ["B", "I", "C4", "TID", "SIM", "PLE", "RUF"]
 ignore = [
@@ -48,4 +52,4 @@ ignore = [
 ]
 
 [tool.ruff.lint.per-file-ignores]
-"tests/*" = ["ARG001"]  # Allow unused arguments in tests
\ No newline at end of file
+"tests/*" = ["ARG001"]  # Allow unused arguments in tests
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/__init__.py
index a37e042..7f516b5 100644
--- a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/__init__.py
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/__init__.py
@@ -1,3 +1,12 @@
 """{{ cookiecutter.project_name }} - {{ cookiecutter.description }}"""
 
-__version__ = "{{ cookiecutter.version }}"
\ No newline at end of file
+from __future__ import annotations
+
+from importlib.metadata import PackageNotFoundError, version
+
+try:
+    __version__ = version("{{ cookiecutter.project_slug }}")
+except PackageNotFoundError:  # pragma: no cover - only in editable/uninstalled mode
+    __version__ = "0.0.0"
+
+__all__ = ["__version__"]
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/__init__.py
new file mode 100644
index 0000000..c2a0794
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/__init__.py
@@ -0,0 +1 @@
+"""CLI package for {{ cookiecutter.project_name }}."""
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/app.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/app.py
new file mode 100644
index 0000000..bbd727d
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/app.py
@@ -0,0 +1,33 @@
+from __future__ import annotations
+
+from typing import Annotated
+
+import typer
+
+from {{ cookiecutter.package_name }}.cli.config import app as config_app
+from {{ cookiecutter.package_name }}.cli.hello import app as hello_app
+from {{ cookiecutter.package_name }}.utils.logging import setup_logging
+
+app = typer.Typer(no_args_is_help=True)
+app.add_typer(config_app, name="config")
+app.add_typer(hello_app, name="hello")
+
+
+@app.callback(invoke_without_command=True)
+def main(
+    version: Annotated[
+        bool,
+        typer.Option("--version", "-v", help="Show version and exit."),
+    ] = False,
+) -> None:
+    """Run the CLI application."""
+    setup_logging()
+    if version:
+        from importlib.metadata import version as get_version
+
+        print(get_version("{{ cookiecutter.project_slug }}"))
+        raise typer.Exit()
+
+
+if __name__ == "__main__":
+    app()
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/common.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/common.py
new file mode 100644
index 0000000..630398b
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/common.py
@@ -0,0 +1,17 @@
+from __future__ import annotations
+
+import typer
+
+from {{ cookiecutter.package_name }}.config import get_config
+from {{ cookiecutter.package_name }}.config.settings import Settings
+
+
+def load_config() -> Settings:
+    """Load configuration once at the CLI boundary."""
+    return get_config()
+
+
+def exit_with_error(message: str, code: int = 1) -> None:
+    """Print a concise error and exit with a non-zero status."""
+    typer.secho(message, fg=typer.colors.RED, err=True)
+    raise typer.Exit(code)
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/config.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/config.py
new file mode 100644
index 0000000..07c23fc
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/config.py
@@ -0,0 +1,53 @@
+from __future__ import annotations
+
+import json
+from pathlib import Path
+from typing import Annotated
+
+import typer
+
+from {{ cookiecutter.package_name }}.cli.common import exit_with_error
+from {{ cookiecutter.package_name }}.config import get_config, get_config_source
+from {{ cookiecutter.package_name }}.config.paths import config_file_path
+from {{ cookiecutter.package_name }}.config.settings import write_default_config
+
+app = typer.Typer(no_args_is_help=True)
+
+
+@app.command()
+def show() -> None:
+    """Print the effective configuration and source path."""
+    try:
+        config = get_config()
+    except (FileNotFoundError, ValueError) as exc:
+        exit_with_error(str(exc))
+        return
+
+    source = get_config_source()
+    payload = {
+        "source": str(source) if source else "<defaults>",
+        "config": config.model_dump(),
+    }
+    print(json.dumps(payload, indent=2, sort_keys=True))
+
+
+@app.command()
+def init(
+    path: Annotated[
+        Path | None,
+        typer.Option(
+            "--path",
+            help="Write the default config to a specific path.",
+        ),
+    ] = None,
+    overwrite: Annotated[
+        bool,
+        typer.Option("--overwrite", help="Overwrite existing file."),
+    ] = False,
+) -> None:
+    """Write a default config to the XDG location."""
+    target = path or config_file_path()
+    if target.exists() and not overwrite:
+        exit_with_error(f"Config already exists at {target}. Use --overwrite to replace it.")
+    write_default_config(target)
+    typer.secho(f"Wrote default config to {target}", fg=typer.colors.GREEN)
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/hello.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/hello.py
new file mode 100644
index 0000000..49fe434
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/cli/hello.py
@@ -0,0 +1,17 @@
+from __future__ import annotations
+
+from typing import Annotated
+
+import typer
+
+from {{ cookiecutter.package_name }}.commands import format_greeting
+
+app = typer.Typer(no_args_is_help=True)
+
+
+@app.command()
+def say(
+    name: Annotated[str, typer.Option("--name", "-n", help="Name to greet.")] = "World",
+) -> None:
+    """Print a greeting."""
+    print(format_greeting(name))
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/__init__.py
new file mode 100644
index 0000000..ccaee63
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/__init__.py
@@ -0,0 +1,5 @@
+"""Command implementations for {{ cookiecutter.project_name }}."""
+
+from {{ cookiecutter.package_name }}.commands.hello import format_greeting
+
+__all__ = ["format_greeting"]
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/hello.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/hello.py
new file mode 100644
index 0000000..3f3104a
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/commands/hello.py
@@ -0,0 +1,6 @@
+from __future__ import annotations
+
+
+def format_greeting(name: str) -> str:
+    """Return a greeting message."""
+    return f"Hello, {name}!"
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/__init__.py
new file mode 100644
index 0000000..1cbc882
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/__init__.py
@@ -0,0 +1,29 @@
+from __future__ import annotations
+
+from functools import lru_cache
+from pathlib import Path
+
+from .settings import Settings, load_settings
+
+CONFIG_SOURCE: Path | None = None
+
+
+@lru_cache
+def get_config() -> Settings:
+    """Return the cached Settings instance."""
+    global CONFIG_SOURCE
+    settings, source = load_settings()
+    CONFIG_SOURCE = source
+    return settings
+
+
+def get_config_source() -> Path | None:
+    """Return the path used to load config, if any."""
+    return CONFIG_SOURCE
+
+
+def clear_config_cache() -> None:
+    """Clear cached settings for tests or reload scenarios."""
+    global CONFIG_SOURCE
+    CONFIG_SOURCE = None
+    get_config.cache_clear()
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/paths.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/paths.py
new file mode 100644
index 0000000..f088bf6
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/paths.py
@@ -0,0 +1,29 @@
+from __future__ import annotations
+
+import os
+from pathlib import Path
+
+APP_NAME = "{{ cookiecutter.project_slug }}"
+ENV_CONFIG_VAR = "{{ cookiecutter.package_name | upper }}_CONFIG"
+
+
+def xdg_config_dir() -> Path:
+    """Return the XDG config directory."""
+    root = os.environ.get("XDG_CONFIG_HOME")
+    return Path(root) if root else Path.home() / ".config"
+
+
+def xdg_data_dir() -> Path:
+    """Return the XDG data directory."""
+    root = os.environ.get("XDG_DATA_HOME")
+    return Path(root) if root else Path.home() / ".local" / "share"
+
+
+def config_file_path() -> Path:
+    """Return the default config file path."""
+    return xdg_config_dir() / APP_NAME / "config.toml"
+
+
+def data_dir_path() -> Path:
+    """Return the default data directory path."""
+    return xdg_data_dir() / APP_NAME
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/settings.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/settings.py
new file mode 100644
index 0000000..5ffb9ad
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/config/settings.py
@@ -0,0 +1,65 @@
+from __future__ import annotations
+
+import os
+import tomllib
+from pathlib import Path
+
+from pydantic import BaseModel
+
+from .paths import ENV_CONFIG_VAR, config_file_path
+
+
+class Settings(BaseModel):
+    model_config = {"frozen": True, "extra": "forbid"}
+
+    greeting: str = "Hello"
+
+
+def load_settings() -> tuple[Settings, Path | None]:
+    """Load settings and return the source path, if any."""
+    env_path = os.environ.get(ENV_CONFIG_VAR)
+    if env_path:
+        path = Path(env_path).expanduser()
+        if not path.exists():
+            raise FileNotFoundError(f"Config file not found: {path}")
+        data = tomllib.loads(path.read_text())
+        return Settings.model_validate(data), path
+
+    default_path = config_file_path()
+    if default_path.exists():
+        data = tomllib.loads(default_path.read_text())
+        return Settings.model_validate(data), default_path
+
+    return Settings(), None
+
+
+def write_default_config(path: Path) -> None:
+    """Write default config to a file."""
+    path.parent.mkdir(parents=True, exist_ok=True)
+    payload = Settings().model_dump()
+    content = _to_toml(payload)
+    path.write_text(content)
+
+
+def _to_toml(payload: dict[str, object]) -> str:
+    lines: list[str] = []
+    for section, values in payload.items():
+        if isinstance(values, dict):
+            lines.append(f"[{section}]")
+            for key, value in values.items():
+                lines.append(f"{key} = {_toml_value(value)}")
+            lines.append("")
+        else:
+            lines.append(f"{section} = {_toml_value(values)}")
+    return "\n".join(lines).rstrip() + "\n"
+
+
+def _toml_value(value: object) -> str:
+    if isinstance(value, str):
+        escaped = value.replace("\\", "\\\\").replace('"', "\\\"")
+        return f'"{escaped}"'
+    if isinstance(value, bool):
+        return "true" if value else "false"
+    if isinstance(value, (int, float)):
+        return str(value)
+    raise TypeError(f"Unsupported TOML value: {value!r}")
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/core.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/core.py
deleted file mode 100644
index 12bf740..0000000
--- a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/core.py
+++ /dev/null
@@ -1,6 +0,0 @@
-"""Core functionality for {{ cookiecutter.project_name }}."""
-
-
-def say_hello(name: str = "World") -> None:
-    """Print a hello message."""
-    print(f"Hello, {name}!")
\ No newline at end of file
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/models/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/models/__init__.py
new file mode 100644
index 0000000..4501fca
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/models/__init__.py
@@ -0,0 +1 @@
+"""Data models for {{ cookiecutter.project_name }}."""
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/__init__.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/__init__.py
new file mode 100644
index 0000000..296f638
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/__init__.py
@@ -0,0 +1 @@
+"""Utility helpers for {{ cookiecutter.project_name }}."""
diff --git a/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/logging.py b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/logging.py
new file mode 100644
index 0000000..a807748
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/src/{{cookiecutter.package_name}}/utils/logging.py
@@ -0,0 +1,17 @@
+from __future__ import annotations
+
+import logging
+import os
+
+import coloredlogs  # type: ignore[import-untyped]
+
+
+def setup_logging(level: str | None = None) -> None:
+    """Configure application logging."""
+    level = level or os.environ.get("LOGLEVEL", "INFO")
+    coloredlogs.install(
+        level=level,
+        fmt="%(asctime)s %(name)s %(levelname)s %(message)s",
+        datefmt="%H:%M:%S",
+    )
+    logging.getLogger("httpx").setLevel(logging.WARNING)
diff --git a/{{cookiecutter.project_slug}}/tasks.py b/{{cookiecutter.project_slug}}/tasks.py
index 999f586..dee4891 100644
--- a/{{cookiecutter.project_slug}}/tasks.py
+++ b/{{cookiecutter.project_slug}}/tasks.py
@@ -3,37 +3,34 @@ from invoke import task
 
 
 @task
-def clean(ctx):
-    """
-    Remove all files and directories that are not under version control to ensure a pristine working environment.
-    Use caution as this operation cannot be undone and might remove untracked files.
-
-    """
-
-    ctx.run("git clean -nfdx")
-
-    response = (
-        input("Are you sure you want to remove all untracked files? (y/n) [n]: ")
-        .strip()
-        .lower()
-    )
-    if response == "y":
-        ctx.run("git clean -fdx")
+def venv(c):
+    """Sync dependencies."""
+    c.run("uv sync --group dev")
 
 
 @task
-def lint(ctx):
-    """
-    Perform static analysis on the source code to check for syntax errors and enforce style consistency.
-    """
-    ctx.run("ruff check src", pty=True)
-    ctx.run("ruff format --check src", pty=True)
-    ctx.run("mypy src", pty=True)
+def format(c):
+    """Format code."""
+    c.run("uv run ruff format src tests")
 
 
 @task
-def test(ctx):
-    """
-    Run tests with coverage information.
-    """
-    ctx.run("pytest --cov=src --cov-report=term-missing", pty=True)
\ No newline at end of file
+def lint(c):
+    """Run linters."""
+    c.run("uv run ruff check src tests")
+    c.run("uv run ruff format --check src tests")
+    c.run("uv run mypy src")
+
+
+@task
+def test(c):
+    """Run tests with coverage."""
+    c.run("uv run pytest --cov=src --cov-report=term-missing")
+
+
+@task
+def clean(c):
+    """Preview files to delete (safe mode)."""
+    c.run("git clean -nfdx")
+    if input("Delete? [y/N] ").lower() == "y":
+        c.run("git clean -fdx")
diff --git a/{{cookiecutter.project_slug}}/tests/conftest.py b/{{cookiecutter.project_slug}}/tests/conftest.py
new file mode 100644
index 0000000..67fef55
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/tests/conftest.py
@@ -0,0 +1,22 @@
+from __future__ import annotations
+
+import pytest
+
+from {{ cookiecutter.package_name }}.config import clear_config_cache
+from {{ cookiecutter.package_name }}.config.paths import ENV_CONFIG_VAR
+
+
+@pytest.fixture(autouse=True)
+def _isolate_xdg_paths(monkeypatch, tmp_path_factory) -> None:
+    temp_root = tmp_path_factory.mktemp("xdg")
+    monkeypatch.setenv("XDG_CONFIG_HOME", str(temp_root / "config"))
+    monkeypatch.setenv("XDG_DATA_HOME", str(temp_root / "data"))
+    monkeypatch.delenv(ENV_CONFIG_VAR, raising=False)
+    yield
+
+
+@pytest.fixture(autouse=True)
+def _clear_config_cache() -> None:
+    clear_config_cache()
+    yield
+    clear_config_cache()
diff --git a/{{cookiecutter.project_slug}}/tests/test_internals.py b/{{cookiecutter.project_slug}}/tests/test_internals.py
new file mode 100644
index 0000000..ca0950b
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/tests/test_internals.py
@@ -0,0 +1,32 @@
+from __future__ import annotations
+
+from {{ cookiecutter.package_name }}.commands import format_greeting
+from {{ cookiecutter.package_name }}.config import get_config, get_config_source
+from {{ cookiecutter.package_name }}.config.paths import ENV_CONFIG_VAR
+
+
+def test_env_config_override(tmp_path, monkeypatch) -> None:
+    config_path = tmp_path / "config.toml"
+    config_path.write_text("greeting = \"Hi\"\n")
+    monkeypatch.setenv(ENV_CONFIG_VAR, str(config_path))
+
+    settings = get_config()
+
+    assert settings.greeting == "Hi"
+    assert get_config_source() == config_path
+
+
+def test_missing_env_config_raises(tmp_path, monkeypatch) -> None:
+    missing = tmp_path / "missing.toml"
+    monkeypatch.setenv(ENV_CONFIG_VAR, str(missing))
+
+    try:
+        get_config()
+    except FileNotFoundError as exc:
+        assert str(missing) in str(exc)
+    else:
+        raise AssertionError("Expected FileNotFoundError")
+
+
+def test_format_greeting() -> None:
+    assert format_greeting("Ada") == "Hello, Ada!"
diff --git a/{{cookiecutter.project_slug}}/tests/test_public.py b/{{cookiecutter.project_slug}}/tests/test_public.py
new file mode 100644
index 0000000..c0a1acf
--- /dev/null
+++ b/{{cookiecutter.project_slug}}/tests/test_public.py
@@ -0,0 +1,13 @@
+from __future__ import annotations
+
+from {{ cookiecutter.package_name }} import __version__
+from {{ cookiecutter.package_name }}.config import get_config
+
+
+def test_public_version_is_string() -> None:
+    assert isinstance(__version__, str)
+
+
+def test_get_config_defaults() -> None:
+    settings = get_config()
+    assert settings.greeting == "Hello"
diff --git a/{{cookiecutter.project_slug}}/tests/test_{{cookiecutter.package_name}}.py b/{{cookiecutter.project_slug}}/tests/test_{{cookiecutter.package_name}}.py
deleted file mode 100644
index 3499afb..0000000
--- a/{{cookiecutter.project_slug}}/tests/test_{{cookiecutter.package_name}}.py
+++ /dev/null
@@ -1,24 +0,0 @@
-"""Tests for {{ cookiecutter.package_name }}."""
-
-from io import StringIO
-import sys
-
-from {{ cookiecutter.package_name }}.core import say_hello
-
-
-def test_say_hello():
-    """Test say_hello function."""
-    captured_output = StringIO()
-    sys.stdout = captured_output
-    say_hello()
-    sys.stdout = sys.__stdout__
-    assert captured_output.getvalue() == "Hello, World!\n"
-
-
-def test_say_hello_with_name():
-    """Test say_hello function with custom name."""
-    captured_output = StringIO()
-    sys.stdout = captured_output
-    say_hello("Alice")
-    sys.stdout = sys.__stdout__
-    assert captured_output.getvalue() == "Hello, Alice!\n"
\ No newline at end of file