diff --git a/.changeset/smarter-project-name-handling.md b/.changeset/smarter-project-name-handling.md
new file mode 100644
index 00000000..ff29090a
--- /dev/null
+++ b/.changeset/smarter-project-name-handling.md
@@ -0,0 +1,5 @@
+---
+"clerk": patch
+---
+
+Auto-increment the default project name in `clerk init` when a directory with that name already exists, and re-prompt instead of erroring out when the chosen name collides.
diff --git a/packages/cli-core/src/commands/init/bootstrap.test.ts b/packages/cli-core/src/commands/init/bootstrap.test.ts
index 10ce08e1..9690ba15 100644
--- a/packages/cli-core/src/commands/init/bootstrap.test.ts
+++ b/packages/cli-core/src/commands/init/bootstrap.test.ts
@@ -1,6 +1,13 @@
 import { test, expect, describe, spyOn, afterAll } from "bun:test";
+import { mkdtempSync, mkdirSync, rmSync } from "node:fs";
+import { tmpdir } from "node:os";
+import { join } from "node:path";
 import { BOOTSTRAP_REGISTRY } from "./bootstrap-registry.ts";
-import { promptAndBootstrap, resolvePackageManager } from "./bootstrap.ts";
+import {
+  findAvailableProjectName,
+  promptAndBootstrap,
+  resolvePackageManager,
+} from "./bootstrap.ts";
 
 function entryFor(dep: string) {
   const entry = BOOTSTRAP_REGISTRY.find((e) => e.dep === dep);
@@ -167,6 +174,28 @@ describe("resolvePackageManager", () => {
   });
 });
 
+describe("findAvailableProjectName", () => {
+  test("returns the base name when no collision exists", async () => {
+    const tmp = mkdtempSync(join(tmpdir(), "clerk-bootstrap-"));
+    try {
+      expect(await findAvailableProjectName(tmp, "my-app")).toBe("my-app");
+    } finally {
+      rmSync(tmp, { recursive: true, force: true });
+    }
+  });
+
+  test("increments suffix until an unused name is found", async () => {
+    const tmp = mkdtempSync(join(tmpdir(), "clerk-bootstrap-"));
+    try {
+      mkdirSync(join(tmp, "my-app"));
+      mkdirSync(join(tmp, "my-app-2"));
+      expect(await findAvailableProjectName(tmp, "my-app")).toBe("my-app-3");
+    } finally {
+      rmSync(tmp, { recursive: true, force: true });
+    }
+  });
+});
+
 describe("promptAndBootstrap", () => {
   test("throws a usage-exit CliError when skipConfirm is set without a framework override", async () => {
     await expect(
@@ -178,6 +207,24 @@ describe("promptAndBootstrap", () => {
     });
   });
 
+  test("nameOverride collision still throws (explicit name)", async () => {
+    const tmp = mkdtempSync(join(tmpdir(), "clerk-bootstrap-"));
+    try {
+      mkdirSync(join(tmp, "my-app"));
+      await expect(
+        promptAndBootstrap(tmp, { name: "Next.js", dep: "next" } as never, {
+          skipConfirm: true,
+          nameOverride: "my-app",
+        }),
+      ).rejects.toMatchObject({
+        name: "CliError",
+        message: expect.stringContaining("already exists"),
+      });
+    } finally {
+      rmSync(tmp, { recursive: true, force: true });
+    }
+  });
+
   test("guard still fires when implicitBootstrap is combined with skipConfirm", async () => {
     // --starter -y path: implicitBootstrap + skipConfirm. Guard still applies.
     await expect(
diff --git a/packages/cli-core/src/commands/init/bootstrap.ts b/packages/cli-core/src/commands/init/bootstrap.ts
index 1f6b0fe4..b90ec502 100644
--- a/packages/cli-core/src/commands/init/bootstrap.ts
+++ b/packages/cli-core/src/commands/init/bootstrap.ts
@@ -91,11 +91,32 @@ function validateProjectName(value: string): string | true {
   return true;
 }
 
-async function askProjectName(entry: BootstrapEntry): Promise<string> {
+/**
+ * Find an unused project name by appending -2, -3, … until the directory does not exist.
+ * Returns the original name when nothing collides.
+ */
+export async function findAvailableProjectName(cwd: string, base: string): Promise<string> {
+  if (!(await dirExists(join(cwd, base)))) return base;
+  for (let i = 2; i < 1000; i++) {
+    const candidate = `${base}-${i}`;
+    if (!(await dirExists(join(cwd, candidate)))) return candidate;
+  }
+  throw new CliError(`Could not find an available project name based on '${base}'.`);
+}
+
+async function askProjectName(entry: BootstrapEntry, cwd: string): Promise<string> {
+  const defaultName = await findAvailableProjectName(cwd, entry.defaultProjectName);
   const name = await input({
     message: "Project name:",
-    default: entry.defaultProjectName,
-    validate: validateProjectName,
+    default: defaultName,
+    validate: async (value) => {
+      const valid = validateProjectName(value);
+      if (valid !== true) return valid;
+      if (await dirExists(join(cwd, value.trim()))) {
+        return `Directory '${value.trim()}' already exists. Pick a different name.`;
+      }
+      return true;
+    },
   });
   return name.trim();
 }
@@ -190,9 +211,14 @@ export async function promptAndBootstrap(
   const entry = await pickFramework(frameworkOverride);
   const pm = pmOverride ?? (skipConfirm ? resolvePackageManager() : await pickPackageManager());
   const projectName =
-    nameOverride ?? (skipConfirm ? entry.defaultProjectName : await askProjectName(entry));
+    nameOverride ??
+    (skipConfirm
+      ? await findAvailableProjectName(cwd, entry.defaultProjectName)
+      : await askProjectName(entry, cwd));
   const projectDir = join(cwd, projectName);
 
+  // `askProjectName` and `findAvailableProjectName` already guarantee an unused dir;
+  // this guard only fires for an explicit `--name` collision.
   if (await dirExists(projectDir)) {
     throw new CliError(
       `Directory '${projectName}' already exists. Pick a different name or remove it first.`,