diff --git a/pyproject.toml b/pyproject.toml
index 02177ad..6997ef7 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "claudesync"
-version = "0.6.8"
+version = "0.6.9"
 authors = [
     {name = "Jahziah Wagner", email = "540380+jahwag@users.noreply.github.com"},
 ]
diff --git a/src/claudesync/cli/project.py b/src/claudesync/cli/project.py
index 21bd8ed..12bec94 100644
--- a/src/claudesync/cli/project.py
+++ b/src/claudesync/cli/project.py
@@ -23,7 +23,7 @@ def project():
 @click.option(
     "--name",
     default=lambda: os.path.basename(os.getcwd()),
-    prompt="Enter a title for your new project",
+    prompt="Enter a title for your project",
     help="The name of the project (defaults to current directory name)",
     show_default="current directory name",
 )
@@ -42,56 +42,91 @@ def project():
     help="The local path for the project (defaults to current working directory)",
     show_default="current working directory",
 )
+@click.option(
+    "--new",
+    is_flag=True,
+    help="Create a new remote project on Claude.ai",
+)
 @click.option(
     "--provider",
-    prompt="Pick the provider to use for this project",
     type=click.Choice(["claude.ai"], case_sensitive=False),
     default="claude.ai",
     help="The provider to use for this project",
 )
-@click.option(
-    "--organization",
-    default=None,
-    help="The organization ID to use for this project",
-)
 @click.pass_context
 @handle_errors
-def create(ctx, name, description, local_path, provider, organization):
-    """Creates a new project for the selected provider."""
+def init(ctx, name, description, local_path, new, provider):
+    """Initialize a new project configuration.
+
+    If --new is specified, also creates a remote project on Claude.ai.
+    Otherwise, only creates the local configuration. Use 'claudesync organization set'
+    and 'claudesync project set' to link to an existing remote project."""
+
     config = ctx.obj
-    provider_instance = get_provider(config, provider)
 
-    if organization is None:
+    # Create .claudesync directory and save initial config
+    claudesync_dir = os.path.join(local_path, ".claudesync")
+    os.makedirs(claudesync_dir, exist_ok=True)
+
+    # Set basic configuration
+    config.set("active_provider", provider, local=True)
+    config.set("local_path", local_path, local=True)
+
+    if new:
+        # Create remote project if --new flag is specified
+        provider_instance = get_provider(config, provider)
+
+        # Get organization
         organizations = provider_instance.get_organizations()
-        organization_instance = organizations[0] if organizations else None
-        organization = organization_instance["id"]
+        if not organizations:
+            raise ConfigurationError(
+                "No organizations with required capabilities found."
+            )
+        organization = organizations[0]["id"]
 
-    try:
-        new_project = provider_instance.create_project(organization, name, description)
-        click.echo(
-            f"Project '{new_project['name']}' (uuid: {new_project['uuid']}) has been created successfully."
-        )
+        try:
+            new_project = provider_instance.create_project(
+                organization, name, description
+            )
+            click.echo(
+                f"Project '{new_project['name']}' (uuid: {new_project['uuid']}) has been created successfully."
+            )
 
-        # Update configuration
-        config.set("active_provider", provider, local=True)
-        config.set("active_organization_id", organization, local=True)
-        config.set("active_project_id", new_project["uuid"], local=True)
-        config.set("active_project_name", new_project["name"], local=True)
-        config.set("local_path", local_path, local=True)
+            # Update configuration with remote details
+            config.set("active_organization_id", organization, local=True)
+            config.set("active_project_id", new_project["uuid"], local=True)
+            config.set("active_project_name", new_project["name"], local=True)
 
-        # Create .claudesync directory and save config
-        claudesync_dir = os.path.join(local_path, ".claudesync")
-        os.makedirs(claudesync_dir, exist_ok=True)
-        config_file_path = os.path.join(claudesync_dir, "config.local.json")
-        config._save_local_config()
+            click.echo("\nProject created:")
+            click.echo(f"  - Project location: {local_path}")
+            click.echo(
+                f"  - Project config location: {os.path.join(claudesync_dir, 'config.local.json')}"
+            )
+            click.echo(
+                f"  - Remote URL: https://claude.ai/project/{new_project['uuid']}"
+            )
 
-        click.echo("\nProject created:")
+        except (ProviderError, ConfigurationError) as e:
+            click.echo(f"Failed to create remote project: {str(e)}")
+            raise click.Abort()
+    else:
+        config._save_local_config()
+        click.echo("\nLocal project configuration created:")
         click.echo(f"  - Project location: {local_path}")
-        click.echo(f"  - Project config location: {config_file_path}")
-        click.echo(f"  - Remote URL: https://claude.ai/project/{new_project['uuid']}")
+        click.echo(
+            f"  - Project config location: {os.path.join(claudesync_dir, 'config.local.json')}"
+        )
+        click.echo("\nTo link to a remote project:")
+        click.echo("1. Run 'claudesync organization set' to select an organization")
+        click.echo("2. Run 'claudesync project set' to select an existing project")
+
 
-    except (ProviderError, ConfigurationError) as e:
-        click.echo(f"Failed to create project: {str(e)}")
+@project.command()
+@click.pass_context
+def create(ctx, **kwargs):
+    """Create a new project (alias for 'init --new')."""
+    # Forward to init command with --new flag
+    ctx.forward(init, new=True)
 
 
 @project.command()
diff --git a/tests/test_chat_happy_path.py b/tests/test_chat_happy_path.py
index f535f97..7eeae59 100644
--- a/tests/test_chat_happy_path.py
+++ b/tests/test_chat_happy_path.py
@@ -39,12 +39,13 @@ def test_chat_happy_path(self):
         self.assertEqual(result.exit_code, 0)
         self.assertIn("Selected organization: Test Org 1", result.output)
 
-        # Step 3: Create project
+        # Step 3: Create project using init --new
         result = self.runner.invoke(
             cli,
             [
                 "project",
-                "create",
+                "init",
+                "--new",
                 "--name",
                 "Test Project",
                 "--description",
@@ -56,7 +57,7 @@ def test_chat_happy_path(self):
         )
         self.assertEqual(result.exit_code, 0)
         self.assertIn(
-            "Project 'New Project' (uuid: new_proj) has been created successfully.",
+            "Project 'New Project' (uuid: new_proj) has been created successfully",
             result.output,
         )
 
diff --git a/tests/test_happy_path.py b/tests/test_happy_path.py
index 4137a6a..2addab5 100644
--- a/tests/test_happy_path.py
+++ b/tests/test_happy_path.py
@@ -39,12 +39,13 @@ def test_happy_path(self, mock_get_local_files):
         self.assertEqual(0, result.exit_code)
         self.assertIn("Successfully authenticated with claude.ai", result.output)
 
-        # Create project
+        # Create project using init --new
         result = self.runner.invoke(
             cli,
             [
                 "project",
-                "create",
+                "init",
+                "--new",
                 "--name",
                 "New Project",
                 "--description",
@@ -57,7 +58,6 @@ def test_happy_path(self, mock_get_local_files):
             obj=self.config,
         )
         self.assertEqual(result.exit_code, 0)
-
         self.assertIn(
             "Project 'New Project' (uuid: new_proj) has been created successfully",
             result.output,