diff --git a/.changeset/modern-pumas-cheer.md b/.changeset/modern-pumas-cheer.md
new file mode 100644
index 00000000..e5713b1c
--- /dev/null
+++ b/.changeset/modern-pumas-cheer.md
@@ -0,0 +1,5 @@
+---
+"@perfect-abstractions/compose-cli": patch
+---
+
+fix(cli): print correct init output path
diff --git a/cli/src/modules/init/output.ts b/cli/src/modules/init/output.ts
index 2257578d..f0558193 100644
--- a/cli/src/modules/init/output.ts
+++ b/cli/src/modules/init/output.ts
@@ -1,3 +1,4 @@
+import path from "node:path";
 import { ComposeContext } from "../../context/types";
 import { cyan, dim, green, yellow } from "../../utils/terminal";
 import { COMPOSE_HEADER, COMPOSE_DOCS_URL } from "../../utils/metadata";
@@ -43,8 +44,9 @@ export function showSuccess(ctx: ComposeContext): void {
   console.log(green("Next steps:"));
 
   let stepCount = 1;
-  if (projectRoot !== process.cwd()) {
-    console.log(green(`${stepCount}.`) + ` cd ${projectName}`);
+  const projectPath = path.relative(process.cwd(), projectRoot);
+  if (projectPath) {
+    console.log(green(`${stepCount}.`) + ` cd "${projectPath}"`);
     stepCount++;
   }
 
diff --git a/cli/test/modules/init/output.test.ts b/cli/test/modules/init/output.test.ts
new file mode 100644
index 00000000..0c895ca2
--- /dev/null
+++ b/cli/test/modules/init/output.test.ts
@@ -0,0 +1,39 @@
+import path from "node:path";
+import { afterEach, describe, expect, it, vi } from "vitest";
+import { Context } from "../../../src/context/context";
+import { showSuccess } from "../../../src/modules/init/output";
+
+describe("init success output", () => {
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
+  it("prints the path relative to the current directory when --out is elsewhere", () => {
+    const projectRoot = path.resolve(process.cwd(), "..", "generated-projects", "my-diamond");
+    const ctx = Context.create();
+    ctx.param = {
+      projectName: "my-diamond",
+      projectRoot,
+      framework: "foundry",
+    };
+    const log = vi.spyOn(console, "log").mockImplementation(() => undefined);
+
+    showSuccess(ctx);
+
+    expect(log.mock.calls.flat().join("\n")).toContain('cd "../generated-projects/my-diamond"');
+  });
+
+  it("omits the directory change when already in the project directory", () => {
+    const ctx = Context.create();
+    ctx.param = {
+      projectName: "my-diamond",
+      projectRoot: process.cwd(),
+      framework: "foundry",
+    };
+    const log = vi.spyOn(console, "log").mockImplementation(() => undefined);
+
+    showSuccess(ctx);
+
+    expect(log.mock.calls.flat().join("\n")).not.toContain("cd ");
+  });
+});