diff --git a/create-agentic-app/index.js b/create-agentic-app/index.js
index b9f5d0a..d87b8f8 100644
--- a/create-agentic-app/index.js
+++ b/create-agentic-app/index.js
@@ -100,6 +100,15 @@ async function main() {
       await fs.copy(envExamplePath, envPath);
     }
 
+    // Rename _gitignore to .gitignore (npm excludes .gitignore by default)
+    const gitignoreTemplatePath = path.join(targetDir, '_gitignore');
+    const gitignorePath = path.join(targetDir, '.gitignore');
+
+    if (fs.existsSync(gitignoreTemplatePath)) {
+      spinner.text = 'Setting up .gitignore file...';
+      await fs.move(gitignoreTemplatePath, gitignorePath, { overwrite: true });
+    }
+
     // Update package.json name if not current directory
     if (projectDir !== '.') {
       const packageJsonPath = path.join(targetDir, 'package.json');
diff --git a/create-agentic-app/package-lock.json b/create-agentic-app/package-lock.json
index 01797e7..dacc0e7 100644
--- a/create-agentic-app/package-lock.json
+++ b/create-agentic-app/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "create-agentic-app",
-  "version": "1.1.5",
+  "version": "1.1.7",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "create-agentic-app",
-      "version": "1.1.5",
+      "version": "1.1.7",
       "license": "MIT",
       "dependencies": {
         "chalk": "^5.3.0",
diff --git a/create-agentic-app/package.json b/create-agentic-app/package.json
index b9d4fb1..384eb49 100644
--- a/create-agentic-app/package.json
+++ b/create-agentic-app/package.json
@@ -1,6 +1,6 @@
 {
   "name": "create-agentic-app",
-  "version": "1.1.5",
+  "version": "1.1.7",
   "description": "Scaffold a new agentic AI application with Next.js, Better Auth, and AI SDK",
   "type": "module",
   "bin": {
diff --git a/create-agentic-app/scripts/sync-templates.js b/create-agentic-app/scripts/sync-templates.js
index 27247ac..a92d2aa 100644
--- a/create-agentic-app/scripts/sync-templates.js
+++ b/create-agentic-app/scripts/sync-templates.js
@@ -78,6 +78,17 @@ async function sync() {
     console.log(`${colors.cyan}📦 Copying project files...${colors.reset}`);
     await copyWithExclusions(projectRoot, templateDir);
 
+    // Explicitly copy .gitignore file as _gitignore (npm excludes .gitignore by default)
+    console.log(`${colors.cyan}📄 Copying .gitignore as _gitignore...${colors.reset}`);
+    const gitignoreSrc = path.join(projectRoot, '.gitignore');
+    const gitignoreDest = path.join(templateDir, '_gitignore');
+    if (await fs.pathExists(gitignoreSrc)) {
+      await fs.copy(gitignoreSrc, gitignoreDest, { overwrite: true });
+      console.log(`${colors.green}✓${colors.reset} .gitignore copied as _gitignore`);
+    } else {
+      console.log(`${colors.yellow}⚠${colors.reset} .gitignore not found in project root`);
+    }
+
     // Process template package.json
     console.log(`${colors.cyan}⚙️  Updating template package.json...${colors.reset}`);
     const templatePackageJsonPath = path.join(templateDir, 'package.json');
diff --git a/create-agentic-app/template/_gitignore b/create-agentic-app/template/_gitignore
new file mode 100644
index 0000000..10c46df
--- /dev/null
+++ b/create-agentic-app/template/_gitignore
@@ -0,0 +1,43 @@
+# See https://help.github.com/articles/ignoring-files/ for more about ignoring files.
+
+# dependencies
+/node_modules
+/.pnp
+.pnp.*
+.yarn/*
+!.yarn/patches
+!.yarn/plugins
+!.yarn/releases
+!.yarn/versions
+.pnpm-lock.yaml
+
+# testing
+/coverage
+/.playwright-mcp
+
+# next.js
+/.next/
+/out/
+
+# production
+/build
+
+# misc
+.DS_Store
+*.pem
+
+# debug
+npm-debug.log*
+yarn-debug.log*
+yarn-error.log*
+.pnpm-debug.log*
+
+# env files (can opt-in for committing if needed)
+.env*
+
+# vercel
+.vercel
+
+# typescript
+*.tsbuildinfo
+next-env.d.ts