diff --git a/src/fastapi_new/new.py b/src/fastapi_new/new.py
index 7ac32ac..e7a3776 100644
--- a/src/fastapi_new/new.py
+++ b/src/fastapi_new/new.py
@@ -107,7 +107,7 @@ def _setup(toolkit: RichToolkit, config: ProjectConfig) -> None:
     if config.path == pathlib.Path.cwd():
         init_cmd = ["uv", "init", "--bare"]
     else:
-        init_cmd = ["uv", "init", "--bare", config.name]
+        init_cmd = ["uv", "init", "--bare", str(config.path)]
 
     if config.python:
         init_cmd.extend(["--python", config.python])
@@ -147,10 +147,10 @@ def _write_template_files(toolkit: RichToolkit, config: ProjectConfig) -> None:
 
 def new(
     ctx: typer.Context,
-    project_name: Annotated[
+    project: Annotated[
         str | None,
         typer.Argument(
-            help="The name of the new FastAPI project. If not provided, initializes in the current directory.",
+            help="The name/path of the new FastAPI project. If not provided, initializes in the current directory.",
         ),
     ] = None,
     python: Annotated[
@@ -162,15 +162,15 @@ def new(
         ),
     ] = None,
 ) -> None:
-    if project_name:
-        name = project_name
-        path = pathlib.Path.cwd() / project_name
+    if project:
+        path = (pathlib.Path.cwd() / project).resolve()
     else:
-        name = pathlib.Path.cwd().name
         path = pathlib.Path.cwd()
 
+    current_dir = path == pathlib.Path.cwd()
+
     config = ProjectConfig(
-        name=name,
+        name=path.name,
         path=path,
         python=python,
     )
@@ -180,16 +180,16 @@ def new(
 
         toolkit.print_line()
 
-        if not project_name:
+        if current_dir:
             toolkit.print(
-                f"[yellow]⚠️  No project name provided. Initializing in current directory: {path}[/yellow]",
+                f"[yellow]⚠️ Initializing in current directory: {config.path}[/yellow]",
                 tag="warning",
             )
             toolkit.print_line()
 
         # Check if project directory already exists (only for new subdirectory)
-        if project_name and config.path.exists():
-            _exit_with_error(toolkit, f"Directory '{project_name}' already exists.")
+        if not current_dir and config.path.exists():
+            _exit_with_error(toolkit, f"Directory '{config.name}' already exists.")
 
         if shutil.which("uv") is None:
             _exit_with_error(
@@ -210,16 +210,16 @@ def new(
         toolkit.print_line()
 
         # Print success message
-        if project_name:
+        if not current_dir:
             toolkit.print(
-                f"[bold green]✨ Success![/bold green] Created FastAPI project: [cyan]{project_name}[/cyan]",
+                f"[bold green]✨ Success![/bold green] Created FastAPI project: [cyan]{config.name}[/cyan]",
                 tag="success",
             )
 
             toolkit.print_line()
 
             toolkit.print("[bold]Next steps:[/bold]")
-            toolkit.print(f"  [dim]$[/dim] cd {project_name}")
+            toolkit.print(f"  [dim]$[/dim] cd {config.name}")
             toolkit.print("  [dim]$[/dim] uv run fastapi dev")
         else:
             toolkit.print(
diff --git a/tests/test_new.py b/tests/test_new.py
index 5103b70..d3d13da 100644
--- a/tests/test_new.py
+++ b/tests/test_new.py
@@ -74,11 +74,21 @@ def test_initializes_in_current_directory(temp_project_dir: Path) -> None:
     result = runner.invoke(app, [])
 
     assert result.exit_code == 0
-    assert "No project name provided" in result.output
     assert "Initializing in current directory" in result.output
     _assert_project_created(temp_project_dir)
 
 
+def test_initializes_in_current_directory_with_dot(temp_project_dir: Path) -> None:
+    result = runner.invoke(app, ["."])
+
+    assert result.exit_code == 0
+    assert "Initializing in current directory" in result.output
+    _assert_project_created(temp_project_dir)
+
+    readme_content = (temp_project_dir / "README.md").read_text()
+    assert f"# {temp_project_dir.name}" in readme_content
+
+
 def test_rejects_existing_directory(temp_project_dir: Path) -> None:
     existing_dir = temp_project_dir / "existing_project"
     existing_dir.mkdir()