diff --git a/.changeset/config.json b/.changeset/config.json
index 581533f27..f2091dd84 100644
--- a/.changeset/config.json
+++ b/.changeset/config.json
@@ -6,6 +6,5 @@
 	"linked": [],
 	"access": "public",
 	"baseBranch": "main",
-	"updateInternalDependencies": "patch",
-	"ignore": ["community-addon-template"]
+	"updateInternalDependencies": "patch"
 }
diff --git a/community-addon-template/.gitignore b/community-addon-template/.gitignore
deleted file mode 100644
index a9e1699a5..000000000
--- a/community-addon-template/.gitignore
+++ /dev/null
@@ -1,4 +0,0 @@
-node_modules
-temp
-.outputs
-.test-output
diff --git a/community-addon-template/src/index.js b/community-addon-template/src/index.js
deleted file mode 100644
index 3c2f5ee50..000000000
--- a/community-addon-template/src/index.js
+++ /dev/null
@@ -1,33 +0,0 @@
-import { defineAddon, defineAddonOptions, js, svelte, parseSvelte } from 'sv/core';
-
-export const options = defineAddonOptions()
-	.add('demo', {
-		question: 'Do you want to use a demo?',
-		type: 'boolean',
-		default: false
-	})
-	.build();
-
-export default defineAddon({
-	id: 'community-addon',
-	options,
-	setup: ({ kit, unsupported }) => {
-		if (!kit) unsupported('Requires SvelteKit');
-	},
-	run: ({ sv, options, typescript }) => {
-		sv.file('addon-template-demo.txt', (content) => {
-			if (options.demo) {
-				return 'This is a text file made by the Community Addon Template demo!';
-			}
-			return content;
-		});
-
-		sv.file('src/DemoComponent.svelte', (content) => {
-			if (!options.demo) return content;
-			const { ast, generateCode } = parseSvelte(content);
-			const scriptAst = svelte.ensureScript(ast, { langTs: typescript });
-			js.imports.addDefault(scriptAst, { from: '../addon-template-demo.txt?raw', as: 'demo' });
-			return generateCode();
-		});
-	}
-});
diff --git a/community-addon-template/tests/custom-addon.test.ts b/community-addon-template/tests/custom-addon.test.ts
deleted file mode 100644
index 8cc944167..000000000
--- a/community-addon-template/tests/custom-addon.test.ts
+++ /dev/null
@@ -1,34 +0,0 @@
-import path from 'node:path';
-import { expect } from '@playwright/test';
-import { fixture, setupTest } from './setup/suite.js';
-import addon from '../src/index.js';
-
-const id = addon.id;
-const { test, addonTestCases, prepareServer } = setupTest(
-	{ [id]: addon },
-	{ kinds: [{ type: 'default', options: { [id]: { demo: true } } }] }
-);
-
-test.concurrent.for(addonTestCases)(
-	'community-addon $variant',
-	async (addonTestCase, { page, ...ctx }) => {
-		const cwd = ctx.cwd(addonTestCase);
-
-		// ...add files
-		if (addonTestCase.variant.startsWith('kit')) {
-			const target = path.resolve(cwd, 'src', 'routes', '+page.svelte');
-			fixture({ name: '+page.svelte', target });
-		} else {
-			const target = path.resolve(cwd, 'src', 'App.svelte');
-			fixture({ name: 'App.svelte', target });
-		}
-
-		const { close } = await prepareServer({ cwd, page });
-		// kill server process when we're done
-		ctx.onTestFinished(async () => await close());
-
-		// expectations
-		const textContent = await page.getByTestId('demo').textContent();
-		expect(textContent).toContain('This is a text file made by the Community Addon Template demo!');
-	}
-);
diff --git a/community-addon-template/tests/fixtures/+page.svelte b/community-addon-template/tests/fixtures/+page.svelte
deleted file mode 100644
index 59a30f613..000000000
--- a/community-addon-template/tests/fixtures/+page.svelte
+++ /dev/null
@@ -1,5 +0,0 @@
-<script>
-	import demo from '../../addon-template-demo.txt?raw';
-</script>
-
-<span data-testid="demo">{demo}</span>
diff --git a/community-addon-template/tests/fixtures/App.svelte b/community-addon-template/tests/fixtures/App.svelte
deleted file mode 100644
index 13271b83e..000000000
--- a/community-addon-template/tests/fixtures/App.svelte
+++ /dev/null
@@ -1,5 +0,0 @@
-<script>
-	import demo from '../addon-template-demo.txt?raw';
-</script>
-
-<span data-testid="demo">{demo}</span>
diff --git a/community-addons/unocss.ts b/community-addons/unocss.ts
deleted file mode 100644
index 2fcf820cd..000000000
--- a/community-addons/unocss.ts
+++ /dev/null
@@ -1,5 +0,0 @@
-import type { CommunityAddon } from '../packages/addons/_config/community.ts';
-
-export default {
-	id: 'unocss-svelte-add-on'
-} satisfies CommunityAddon;
diff --git a/community-addons/unplugin-icons.ts b/community-addons/unplugin-icons.ts
deleted file mode 100644
index 2593656fb..000000000
--- a/community-addons/unplugin-icons.ts
+++ /dev/null
@@ -1,5 +0,0 @@
-import type { CommunityAddon } from '../packages/addons/_config/community.ts';
-
-export default {
-	id: 'unplugin-icons-svelte-add-on'
-} satisfies CommunityAddon;
diff --git a/documentation/docs/20-commands/10-sv-create.md b/documentation/docs/20-commands/10-sv-create.md
index 2ac49088c..24ca665a0 100644
--- a/documentation/docs/20-commands/10-sv-create.md
+++ b/documentation/docs/20-commands/10-sv-create.md
@@ -29,6 +29,7 @@ Which project template to use:
 - `minimal` — barebones scaffolding for your new app
 - `demo` — showcase app with a word guessing game that works without JavaScript
 - `library` — template for a Svelte library, set up with `svelte-package`
+- `addon` — template for a community add-on, ready to be tested & published
 
 ### `--types <option>`
 
diff --git a/eslint.config.js b/eslint.config.js
index fbd4ea2e6..2646086ff 100644
--- a/eslint.config.js
+++ b/eslint.config.js
@@ -31,8 +31,7 @@ export default [
 			'packages/sv/lib/create/scripts/**/*',
 			'packages/sv/lib/create/templates/**/*',
 			'packages/sv/lib/cli/tests/snapshots/*',
-			'packages/sv/lib/**/tests/**/{output,input}.ts',
-			'community-addon-template/tests/*'
+			'packages/sv/lib/**/tests/**/{output,input}.ts'
 		]
 	}
 ];
diff --git a/package.json b/package.json
index da00a049f..89b66ad2e 100644
--- a/package.json
+++ b/package.json
@@ -11,6 +11,7 @@
 		"build": "tsdown",
 		"changeset:publish": "changeset publish",
 		"check": "pnpm --parallel check",
+		"check:w": "pnpm --parallel check -w",
 		"dev": "tsdown -w",
 		"format": "pnpm --parallel format",
 		"lint": "pnpm --parallel lint && eslint --cache --cache-location node_modules/.eslintcache",
diff --git a/packages/sv/lib/addons/_config/community.ts b/packages/sv/lib/addons/_config/community.ts
deleted file mode 100644
index 6869de3f1..000000000
--- a/packages/sv/lib/addons/_config/community.ts
+++ /dev/null
@@ -1,11 +0,0 @@
-export type CommunityAddon = {
-	id: string; // the npm package name
-};
-
-/** EVALUATED AT BUILD TIME */
-export const communityAddonIds: string[] = [];
-
-export async function getCommunityAddon(name: string): Promise<CommunityAddon> {
-	const { default: details } = await import(`../../../community-addons/${name}.ts`);
-	return details;
-}
diff --git a/packages/sv/lib/addons/_config/index.ts b/packages/sv/lib/addons/_config/index.ts
index c7994318a..057f01b43 100644
--- a/packages/sv/lib/addons/_config/index.ts
+++ b/packages/sv/lib/addons/_config/index.ts
@@ -1,2 +1 @@
 export { officialAddons, getAddonDetails } from './official.ts';
-export { getCommunityAddon, communityAddonIds } from './community.ts';
diff --git a/packages/sv/lib/addons/_tests/_setup/global.ts b/packages/sv/lib/addons/_tests/_setup/global.ts
index 11b1de57f..37381d607 100644
--- a/packages/sv/lib/addons/_tests/_setup/global.ts
+++ b/packages/sv/lib/addons/_tests/_setup/global.ts
@@ -1,11 +1,10 @@
 import { fileURLToPath } from 'node:url';
-import { setup, type ProjectVariant } from 'sv/testing';
+import { setup, variants, type ProjectVariant } from '../../../testing.ts';
 import type { TestProject } from 'vitest/node';
 import process from 'node:process';
 import { exec } from 'tinyexec';
 
 const TEST_DIR = fileURLToPath(new URL('../../../../.test-output/addons/', import.meta.url));
-const variants: ProjectVariant[] = ['kit-js', 'kit-ts', 'vite-js', 'vite-ts'];
 const CI = Boolean(process.env.CI);
 
 export default async function ({ provide }: TestProject) {
diff --git a/packages/sv/lib/cli/add/index.ts b/packages/sv/lib/cli/add/index.ts
index 84ce81469..7a1c9a8d5 100644
--- a/packages/sv/lib/cli/add/index.ts
+++ b/packages/sv/lib/cli/add/index.ts
@@ -2,12 +2,7 @@ import fs from 'node:fs';
 import path from 'node:path';
 import process from 'node:process';
 import * as p from '@clack/prompts';
-import {
-	officialAddons as _officialAddons,
-	communityAddonIds,
-	getAddonDetails,
-	getCommunityAddon
-} from '../../addons/index.ts';
+import { officialAddons as _officialAddons, getAddonDetails } from '../../addons/index.ts';
 import type {
 	AddonSetupResult,
 	AddonWithoutExplicitArgs,
@@ -29,40 +24,38 @@ import {
 	installOption,
 	packageManagerPrompt
 } from '../utils/package-manager.ts';
-import { Directive, downloadPackage, getPackageJSON } from './fetch-packages.ts';
+import { downloadPackage, getPackageJSON } from './fetch-packages.ts';
 import { formatFiles, getHighlighter } from './utils.ts';
 import { createWorkspace } from './workspace.ts';
 
 const officialAddons = Object.values(_officialAddons);
-const aliases = officialAddons.map((c) => c.alias).filter((v) => v !== undefined);
 const addonOptions = getAddonOptionFlags();
-const communityDetails: AddonWithoutExplicitArgs[] = [];
 
-const AddonsSchema = v.array(v.string());
 const OptionsSchema = v.strictObject({
 	cwd: v.string(),
 	install: v.union([v.boolean(), v.picklist(AGENT_NAMES)]),
 	gitCheck: v.boolean(),
-	community: v.optional(v.union([AddonsSchema, v.boolean()])),
+	downloadCheck: v.boolean(),
 	addons: v.record(v.string(), v.optional(v.array(v.string())))
 });
 type Options = v.InferOutput<typeof OptionsSchema>;
 
-export type AddonArgs = { id: string; options: string[] | undefined };
+type AddonArgsIn = { id: string; options?: string[] };
+type AddonArgsOut = AddonArgsIn & { options: string[]; kind: 'official' | 'file' };
 
 // infers the workspace cwd if a `package.json` resides in a parent directory
 const defaultPkgPath = pkg.up();
 const defaultCwd = defaultPkgPath ? path.dirname(defaultPkgPath) : undefined;
 export const add = new Command('add')
 	.description('applies specified add-ons into a project')
-	.argument('[add-on...]', `add-ons to install`, (value: string, previous: AddonArgs[] = []) =>
+	.argument('[add-on...]', `add-ons to install`, (value: string, previous: AddonArgsOut[] = []) =>
 		addonArgsHandler(previous, value)
 	)
 	.option('-C, --cwd <path>', 'path to working directory', defaultCwd)
 	.option('--no-git-check', 'even if some files are dirty, no prompt will be shown')
+	.option('--no-download-check', 'skip all download confirmation prompts')
 	.option('--no-install', 'skip installing dependencies')
 	.addOption(installOption)
-	//.option('--community [add-on...]', 'community addons to install')
 	.configureHelp({
 		...common.helpConfig,
 		formatHelp(cmd, helper) {
@@ -149,7 +142,7 @@ export const add = new Command('add')
 			return output.join('\n');
 		}
 	})
-	.action(async (addonArgs: AddonArgs[], opts) => {
+	.action(async (addonArgs: AddonArgsIn[], opts) => {
 		// validate workspace
 		if (opts.cwd === undefined) {
 			common.errorAndExit(
@@ -162,25 +155,67 @@ export const add = new Command('add')
 			);
 		}
 
+		const options = v.parse(OptionsSchema, { ...opts, addons: {} });
 		const selectedAddonArgs = sanitizeAddons(addonArgs);
 
-		const options = v.parse(OptionsSchema, { ...opts, addons: {} });
-		selectedAddonArgs.forEach((addon) => (options.addons[addon.id] = addon.options));
+		const officialAddons = selectedAddonArgs.filter((addon) => addon.kind === 'official');
+		officialAddons.forEach((addon) => {
+			options.addons[addon.id] = addon.options;
+		});
 
 		const workspace = await createWorkspace({ cwd: options.cwd });
 
 		common.runCommand(async () => {
-			const selectedAddonIds = selectedAddonArgs.map(({ id }) => id);
+			const nonOfficialAddons = selectedAddonArgs.filter((addon) => addon.kind !== 'official');
+			// Store options for non-official addons before resolution
+			nonOfficialAddons.forEach((addon) => {
+				options.addons[addon.id] = addon.options;
+			});
+			let nonOfficialAddonDetails: AddonWithoutExplicitArgs[] = [];
+			// Map from original specifier (e.g., "file:../cli/hello") to resolved addon ID (e.g., "hello")
+			const specifierToResolvedId = new Map<string, string>();
+
+			if (nonOfficialAddons.length > 0) {
+				const originalSpecifiers = nonOfficialAddons.map((addon) => addon.id);
+				nonOfficialAddonDetails = await resolveNonOfficialAddons(
+					options.cwd,
+					originalSpecifiers,
+					options.downloadCheck
+				);
 
-			const { answersCommunity, answersOfficial, selectedAddons } = await promptAddonQuestions({
+				// Create mapping from original specifier to resolved addon ID
+				// Match by position since they're resolved in the same order
+				originalSpecifiers.forEach((specifier, index) => {
+					const resolvedAddon = nonOfficialAddonDetails[index];
+					if (resolvedAddon) {
+						specifierToResolvedId.set(specifier, resolvedAddon.id);
+						// Update options.addons to use resolved ID instead of specifier
+						const resolvedId = resolvedAddon.id;
+						const originalOptions = options.addons[specifier];
+						if (originalOptions !== undefined) {
+							options.addons[resolvedId] = originalOptions;
+							delete options.addons[specifier];
+						} else {
+							options.addons[resolvedId] = [];
+						}
+					}
+				});
+			}
+
+			// Map selectedAddonIds to use resolved IDs for non-official addons
+			const selectedAddonIds = selectedAddonArgs.map(({ id }) => {
+				return specifierToResolvedId.get(id) ?? id;
+			});
+
+			const { answers, selectedAddons } = await promptAddonQuestions({
 				options,
 				selectedAddonIds,
+				nonOfficialAddonDetails,
 				workspace
 			});
 
 			const { nextSteps } = await runAddonsApply({
-				answersOfficial,
-				answersCommunity,
+				answers,
 				options,
 				selectedAddons,
 				workspace,
@@ -193,211 +228,202 @@ export const add = new Command('add')
 		});
 	});
 
-export type SelectedAddon = { type: 'official' | 'community'; addon: AddonWithoutExplicitArgs };
+export type SelectedAddon = AddonWithoutExplicitArgs;
+
+/**
+ * Creates a unified lookup map for addons by ID.
+ * Checks official addons first, then falls back to the provided non-official addons map.
+ */
+function getAddonById(
+	id: string,
+	nonOfficialAddonsMap: Map<string, AddonWithoutExplicitArgs>
+): AddonWithoutExplicitArgs | undefined {
+	// Check official addons first
+	const official = officialAddons.find((a) => a.id === id);
+	if (official) {
+		return getAddonDetails(id);
+	}
+	// Fall back to non-official addons
+	return nonOfficialAddonsMap.get(id);
+}
 
 export async function promptAddonQuestions({
 	options,
 	selectedAddonIds,
+	nonOfficialAddonDetails,
 	workspace
 }: {
 	options: Options;
 	selectedAddonIds: string[];
+	nonOfficialAddonDetails: AddonWithoutExplicitArgs[];
 	workspace: Workspace;
 }) {
-	const selectedOfficialAddons: Array<SelectedAddon['addon']> = [];
+	// Create a unified lookup map for non-official addons
+	const nonOfficialAddonsMap = new Map(nonOfficialAddonDetails.map((addon) => [addon.id, addon]));
 
-	// Find which official addons were specified in the args
-	selectedAddonIds.map((id) => {
-		if (officialAddons.find((a) => a.id === id)) {
-			selectedOfficialAddons.push(getAddonDetails(id));
+	const selectedAddons: SelectedAddon[] = [];
+
+	// Find addons by ID using unified lookup
+	for (const id of selectedAddonIds) {
+		const addon = getAddonById(id, nonOfficialAddonsMap);
+		if (addon) {
+			selectedAddons.push(addon);
 		}
-	});
+	}
 
 	const emptyAnswersReducer = (acc: Record<string, OptionValues<any>>, id: string) => {
 		acc[id] = {};
 		return acc;
 	};
 
-	const answersOfficial: Record<string, OptionValues<any>> = selectedOfficialAddons
+	const answers: Record<string, OptionValues<any>> = selectedAddons
 		.map(({ id }) => id)
 		.reduce(emptyAnswersReducer, {});
 
 	// apply specified options from CLI, inquire about the rest
-	for (const addonOption of addonOptions) {
-		const addonId = addonOption.id;
+	for (const addonId of Object.keys(options.addons)) {
 		const specifiedOptions = options.addons[addonId];
 		if (!specifiedOptions) continue;
 
-		const details = getAddonDetails(addonId);
-		if (!selectedOfficialAddons.find((d) => d === details)) {
-			selectedOfficialAddons.push(details);
+		// Get addon details using unified lookup
+		const details = getAddonById(addonId, nonOfficialAddonsMap);
+
+		if (!details) continue;
+
+		if (!selectedAddons.find((d) => d.id === details.id)) {
+			selectedAddons.push(details);
 		}
 
-		answersOfficial[addonId] ??= {};
+		answers[addonId] ??= {};
 
 		const optionEntries = Object.entries(details.options);
 		const specifiedOptionsObject = Object.fromEntries(
 			specifiedOptions.map((option) => option.split(':', 2))
 		);
-		for (const option of specifiedOptions) {
-			const [optionId, optionValue] = option.split(':', 2);
-
-			// validates that the option exists
-			const optionEntry = optionEntries.find(([id, question]) => {
-				// simple ID match
-				if (id === optionId) return true;
-
-				// group match - need to check conditions and value validity
-				if (question.group === optionId) {
-					// does the value exist for this option?
-					if (question.type === 'select') {
-						const isValidValue = question.options.some((opt) => opt.value === optionValue);
-						if (!isValidValue) return false;
-					} else if (question.type === 'multiselect') {
-						// For multiselect, split by comma and validate each value
-						const values = optionValue === 'none' ? [] : optionValue.split(',');
-						const isValidValue = values.every((val) =>
-							question.options.some((opt) => opt.value === val.trim())
-						);
-						if (!isValidValue) return false;
+		// Only process CLI options if any were actually specified
+		if (specifiedOptions.length > 0) {
+			for (const option of specifiedOptions) {
+				const [optionId, optionValue] = option.split(':', 2);
+
+				// validates that the option exists
+				const optionEntry = optionEntries.find(([id, question]) => {
+					// simple ID match
+					if (id === optionId) return true;
+
+					// group match - need to check conditions and value validity
+					if (question.group === optionId) {
+						// does the value exist for this option?
+						if (question.type === 'select') {
+							const isValidValue = question.options.some((opt) => opt.value === optionValue);
+							if (!isValidValue) return false;
+						} else if (question.type === 'multiselect') {
+							// For multiselect, split by comma and validate each value
+							const values = optionValue === 'none' ? [] : optionValue.split(',');
+							const isValidValue = values.every((val) =>
+								question.options.some((opt) => opt.value === val.trim())
+							);
+							if (!isValidValue) return false;
+						}
+
+						// if there's a condition, does it pass?
+						if (question.condition) {
+							return question.condition(specifiedOptionsObject);
+						}
+
+						// finally, unconditional
+						return true;
 					}
 
-					// if there's a condition, does it pass?
-					if (question.condition) {
-						return question.condition(specifiedOptionsObject);
-					}
+					// unrecognized optionId
+					return false;
+				});
 
-					// finally, unconditional
-					return true;
+				if (!optionEntry) {
+					const { choices } = getOptionChoices(details);
+					common.errorAndExit(
+						`Invalid '${addonId}' add-on option: '${option}'\nAvailable options: ${choices.join(', ')}`
+					);
+					throw new Error();
 				}
 
-				// unrecognized optionId
-				return false;
-			});
+				const [questionId, question] = optionEntry;
 
-			if (!optionEntry) {
-				const { choices } = getOptionChoices(details);
-				common.errorAndExit(
-					`Invalid '${addonId}' add-on option: '${option}'\nAvailable options: ${choices.join(', ')}`
-				);
-				throw new Error();
-			}
-
-			const [questionId, question] = optionEntry;
-
-			// Validate multiselect values for simple ID matches (already validated for group matches above)
-			if (question.type === 'multiselect' && questionId === optionId) {
-				const values = optionValue === 'none' || optionValue === '' ? [] : optionValue.split(',');
-				const invalidValues = values.filter(
-					(val) => !question.options.some((opt) => opt.value === val.trim())
-				);
-				if (invalidValues.length > 0) {
-					const validValues = question.options.map((opt) => opt.value).join(', ');
-					common.errorAndExit(
-						`Invalid '${addonId}' add-on option: '${option}'\nInvalid values: ${invalidValues.join(', ')}\nAvailable values: ${validValues}`
+				// Validate multiselect values for simple ID matches (already validated for group matches above)
+				if (question.type === 'multiselect' && questionId === optionId) {
+					const values = optionValue === 'none' || optionValue === '' ? [] : optionValue.split(',');
+					const invalidValues = values.filter(
+						(val) => !question.options.some((opt) => opt.value === val.trim())
 					);
+					if (invalidValues.length > 0) {
+						const validValues = question.options.map((opt) => opt.value).join(', ');
+						common.errorAndExit(
+							`Invalid '${addonId}' add-on option: '${option}'\nInvalid values: ${invalidValues.join(', ')}\nAvailable values: ${validValues}`
+						);
+					}
 				}
-			}
 
-			// validate that there are no conflicts
-			let existingOption = answersOfficial[addonId][questionId];
-			if (existingOption !== undefined) {
-				if (typeof existingOption === 'boolean') {
-					// need to transform the boolean back to `yes` or `no`
-					existingOption = existingOption ? 'yes' : 'no';
+				// validate that there are no conflicts
+				let existingOption = answers[addonId][questionId];
+				if (existingOption !== undefined) {
+					if (typeof existingOption === 'boolean') {
+						// need to transform the boolean back to `yes` or `no`
+						existingOption = existingOption ? 'yes' : 'no';
+					}
+					common.errorAndExit(
+						`Conflicting '${addonId}' option: '${option}' conflicts with '${questionId}:${existingOption}'`
+					);
 				}
-				common.errorAndExit(
-					`Conflicting '${addonId}' option: '${option}' conflicts with '${questionId}:${existingOption}'`
-				);
-			}
 
-			if (question.type === 'boolean') {
-				answersOfficial[addonId][questionId] = optionValue === 'yes';
-			} else if (question.type === 'number') {
-				answersOfficial[addonId][questionId] = Number(optionValue);
-			} else if (question.type === 'multiselect') {
-				// multiselect options can be specified with a `none` option, which equates to an empty array
-				if (optionValue === 'none' || optionValue === '') {
-					answersOfficial[addonId][questionId] = [];
+				if (question.type === 'boolean') {
+					answers[addonId][questionId] = optionValue === 'yes';
+				} else if (question.type === 'number') {
+					answers[addonId][questionId] = Number(optionValue);
+				} else if (question.type === 'multiselect') {
+					// multiselect options can be specified with a `none` option, which equates to an empty array
+					if (optionValue === 'none' || optionValue === '') {
+						answers[addonId][questionId] = [];
+					} else {
+						// split by comma and trim each value
+						answers[addonId][questionId] = optionValue.split(',').map((v) => v.trim());
+					}
 				} else {
-					// split by comma and trim each value
-					answersOfficial[addonId][questionId] = optionValue.split(',').map((v) => v.trim());
+					answers[addonId][questionId] = optionValue;
 				}
-			} else {
-				answersOfficial[addonId][questionId] = optionValue;
 			}
-		}
 
-		// apply defaults to unspecified options
-		for (const [id, question] of Object.entries(details.options)) {
-			// we'll only apply defaults to options that don't explicitly fail their conditions
-			if (question.condition?.(answersOfficial[addonId]) !== false) {
-				answersOfficial[addonId][id] ??= question.default;
-			} else {
-				// we'll also error out if a specified option is incompatible with other options.
-				// (e.g. `libsql` isn't a valid client for a `mysql` database: `sv add drizzle=database:mysql2,client:libsql`)
-				if (answersOfficial[addonId][id] !== undefined) {
-					throw new Error(
-						`Incompatible '${addonId}' option specified: '${answersOfficial[addonId][id]}'`
-					);
+			// apply defaults to unspecified options (only if CLI options were specified)
+			for (const [id, question] of Object.entries(details.options)) {
+				// we'll only apply defaults to options that don't explicitly fail their conditions
+				if (question.condition?.(answers[addonId]) !== false) {
+					answers[addonId][id] ??= question.default;
+				} else {
+					// we'll also error out if a specified option is incompatible with other options.
+					// (e.g. `libsql` isn't a valid client for a `mysql` database: `sv add drizzle=database:mysql2,client:libsql`)
+					if (answers[addonId][id] !== undefined) {
+						throw new Error(
+							`Incompatible '${addonId}' option specified: '${answers[addonId][id]}'`
+						);
+					}
 				}
 			}
 		}
 	}
 
-	// we'll let the user choose community addons when `--community` is specified without args
-	if (options.community === true) {
-		const communityAddons = await Promise.all(
-			communityAddonIds.map(async (id) => await getCommunityAddon(id))
-		);
-
-		const promptOptions = communityAddons.map((addon) => ({
-			value: addon.id,
-			label: addon.id,
-			hint: 'https://www.npmjs.com/package/' + addon.id
-		}));
-
-		const selected = await p.multiselect({
-			message: 'Which community tools would you like to add to your project?',
-			options: promptOptions,
-			required: false
-		});
-
-		if (p.isCancel(selected)) {
-			p.cancel('Operation cancelled.');
-			process.exit(1);
-		} else if (selected.length === 0) {
-			p.cancel('No add-ons selected. Exiting.');
-			process.exit(1);
-		}
-
-		options.community = selected;
-	}
-
-	// we'll prepare empty answers for selected community addons
-	const selectedCommunityAddons: Array<SelectedAddon['addon']> = [];
-	const answersCommunity: Record<string, OptionValues<any>> = selectedCommunityAddons
-		.map(({ id }) => id)
-		.reduce(emptyAnswersReducer, {});
-
-	// Find community addons specified in the --community option as well as
-	// the ones selected above
-	if (Array.isArray(options.community) && options.community.length > 0) {
-		selectedCommunityAddons.push(...(await resolveCommunityAddons(options.cwd, options.community)));
+	// Process all selected addons (including those without CLI options) to ensure they're initialized
+	// Note: We don't apply defaults here - defaults will be used as initial values when asking questions
+	for (const addon of selectedAddons) {
+		const addonId = addon.id;
+		answers[addonId] ??= {};
 	}
 
-	const selectedAddons: SelectedAddon[] = [
-		...selectedOfficialAddons.map((addon) => ({ type: 'official' as const, addon })),
-		...selectedCommunityAddons.map((addon) => ({ type: 'community' as const, addon }))
-	];
-
 	// run setup if we have access to workspace
-	// prepare official addons
-	const setups = selectedAddons.length ? selectedAddons.map(({ addon }) => addon) : officialAddons;
-	const addonSetupResults = setupAddons(setups, workspace);
+	// prepare addons (both official and non-official)
+	let setups = selectedAddons.length ? selectedAddons : officialAddons;
+	let addonSetupResults = setupAddons(setups, workspace);
 
-	// prompt which addons to apply
-	if (selectedAddons.length === 0) {
+	// prompt which addons to apply (only when no addons were specified)
+	// Only show selection prompt if no addons were specified at all
+	if (selectedAddonIds.length === 0) {
 		const allSetupResults = setupAddons(officialAddons, workspace);
 		const addonOptions = officialAddons
 			// only display supported addons relative to the current environment
@@ -420,19 +446,24 @@ export async function promptAddonQuestions({
 
 		for (const id of selected) {
 			const addon = getAddonDetails(id);
-			selectedAddons.push({ type: 'official', addon });
+			selectedAddons.push(addon);
+			answers[id] = {};
 		}
+
+		// Re-run setup for the newly selected addons
+		setups = selectedAddons;
+		addonSetupResults = setupAddons(setups, workspace);
 	}
 
 	// add inter-addon dependencies
-	for (const { addon } of selectedAddons) {
+	for (const addon of selectedAddons) {
 		const setupResult = addonSetupResults[addon.id];
 		const missingDependencies = setupResult.dependsOn.filter(
-			(depId) => !selectedAddons.some((a) => a.addon.id === depId)
+			(depId) => !selectedAddons.some((a) => a.id === depId)
 		);
 
 		for (const depId of missingDependencies) {
-			// TODO: this will have to be adjusted when we work on community add-ons
+			// Dependencies are always official addons
 			const dependency = officialAddons.find((a) => a.id === depId);
 			if (!dependency) throw new Error(`'${addon.id}' depends on an invalid add-on: '${depId}'`);
 
@@ -444,12 +475,14 @@ export async function promptAddonQuestions({
 				p.cancel('Operation cancelled.');
 				process.exit(1);
 			}
-			selectedAddons.push({ type: 'official', addon: dependency });
+			const depAddon = getAddonDetails(depId);
+			selectedAddons.push(depAddon);
+			answers[depId] = {};
 		}
 	}
 
 	// run all setups after inter-addon deps have been added
-	const addons = selectedAddons.map(({ addon }) => addon);
+	const addons = selectedAddons;
 	const verifications = [
 		...verifyCleanWorkingDirectory(options.cwd, options.gitCheck),
 		...verifyUnsupportedAddons(addons, addonSetupResults)
@@ -479,19 +512,12 @@ export async function promptAddonQuestions({
 	}
 
 	// ask remaining questions
-	for (const { addon, type } of selectedAddons) {
+	for (const addon of selectedAddons) {
 		const addonId = addon.id;
 		const questionPrefix = selectedAddons.length > 1 ? `${addon.id}: ` : '';
 
-		let values: OptionValues<any> = {};
-		if (type === 'official') {
-			answersOfficial[addonId] ??= {};
-			values = answersOfficial[addonId];
-		}
-		if (type === 'community') {
-			answersCommunity[addonId] ??= {};
-			values = answersCommunity[addonId];
-		}
+		answers[addonId] ??= {};
+		const values = answers[addonId];
 
 		for (const [questionId, question] of Object.entries(addon.options)) {
 			const shouldAsk = question.condition?.(values);
@@ -520,7 +546,7 @@ export async function promptAddonQuestions({
 			if (question.type === 'string' || question.type === 'number') {
 				answer = await p.text({
 					message,
-					initialValue: question.default.toString(),
+					initialValue: question.default?.toString() ?? (question.type === 'number' ? '0' : ''),
 					placeholder: question.placeholder,
 					validate: question.validate
 				});
@@ -537,20 +563,18 @@ export async function promptAddonQuestions({
 		}
 	}
 
-	return { selectedAddons, answersOfficial, answersCommunity };
+	return { selectedAddons, answers };
 }
 
 export async function runAddonsApply({
-	answersOfficial,
-	answersCommunity,
+	answers,
 	options,
 	selectedAddons,
 	addonSetupResults,
 	workspace,
 	fromCommand
 }: {
-	answersOfficial: Record<string, OptionValues<any>>;
-	answersCommunity: Record<string, OptionValues<any>>;
+	answers: Record<string, OptionValues<any>>;
 	options: Options;
 	selectedAddons: SelectedAddon[];
 	addonSetupResults?: Record<string, AddonSetupResult>;
@@ -558,9 +582,7 @@ export async function runAddonsApply({
 	fromCommand: 'create' | 'add';
 }): Promise<{ nextSteps: string[]; argsFormattedAddons: string[]; filesToFormat: string[] }> {
 	if (!addonSetupResults) {
-		const setups = selectedAddons.length
-			? selectedAddons.map(({ addon }) => addon)
-			: officialAddons;
+		const setups = selectedAddons.length ? selectedAddons : officialAddons;
 		addonSetupResults = setupAddons(setups, workspace);
 	}
 	// we'll return early when no addons are selected,
@@ -569,18 +591,12 @@ export async function runAddonsApply({
 		return { nextSteps: [], argsFormattedAddons: [], filesToFormat: [] };
 
 	// apply addons
-	const officialDetails = Object.keys(answersOfficial).map((id) => getAddonDetails(id));
-	const commDetails = Object.keys(answersCommunity).map(
-		(id) => communityDetails.find((a) => a.id === id)!
-	);
-	const details = officialDetails.concat(commDetails);
-
-	const addonMap: AddonMap = Object.assign({}, ...details.map((a) => ({ [a.id]: a })));
+	const addonMap: AddonMap = Object.assign({}, ...selectedAddons.map((a) => ({ [a.id]: a })));
 	const { filesToFormat, pnpmBuildDependencies, status } = await applyAddons({
 		workspace,
 		addonSetupResults,
 		addons: addonMap,
-		options: answersOfficial
+		options: answers
 	});
 
 	const addonSuccess: string[] = [];
@@ -588,7 +604,7 @@ export async function runAddonsApply({
 		if (info === 'success') addonSuccess.push(addonId);
 		else {
 			p.log.warn(`Canceled ${addonId}: ${info.join(', ')}`);
-			selectedAddons = selectedAddons.filter((a) => a.addon.id !== addonId);
+			selectedAddons = selectedAddons.filter((a) => a.id !== addonId);
 		}
 	}
 
@@ -615,18 +631,17 @@ export async function runAddonsApply({
 	]);
 
 	const argsFormattedAddons: string[] = [];
-	for (const { addon, type } of selectedAddons) {
+	for (const addon of selectedAddons) {
 		const addonId = addon.id;
-		const answers = type === 'official' ? answersOfficial[addonId] : answersCommunity[addonId];
-		if (!answers) continue;
+		const addonAnswers = answers[addonId];
+		if (!addonAnswers) continue;
 
-		const addonDetails = type === 'official' ? getAddonDetails(addonId) : addon;
 		const optionParts: string[] = [];
 
-		for (const [optionId, value] of Object.entries(answers)) {
+		for (const [optionId, value] of Object.entries(addonAnswers)) {
 			if (value === undefined) continue;
 
-			const question = addonDetails.options[optionId];
+			const question = addon.options[optionId];
 			if (!question) continue;
 
 			let formattedValue: string;
@@ -658,6 +673,9 @@ export async function runAddonsApply({
 		}
 	}
 
+	if (!options.downloadCheck) argsFormattedAddons.push('--no-download-check');
+	if (!options.gitCheck) argsFormattedAddons.push('--no-git-check');
+
 	if (fromCommand === 'add') common.logArgs(packageManager, 'add', argsFormattedAddons);
 
 	if (packageManager) {
@@ -670,9 +688,9 @@ export async function runAddonsApply({
 
 	// print next steps
 	const nextSteps = selectedAddons
-		.map(({ addon }) => {
+		.map((addon) => {
 			if (!addon.nextSteps) return;
-			const addonOptions = answersOfficial[addon.id];
+			const addonOptions = answers[addon.id];
 			const addonNextSteps = addon.nextSteps({ ...workspace, options: addonOptions, highlighter });
 			if (addonNextSteps.length === 0) return;
 
@@ -685,26 +703,43 @@ export async function runAddonsApply({
 	return { nextSteps, argsFormattedAddons, filesToFormat };
 }
 
-/**
- * Sanitizes the add-on arguments by checking for invalid add-ons and transforming aliases.
- * @param addonArgs The add-on arguments to sanitize.
- * @returns The sanitized add-on arguments.
- */
-export function sanitizeAddons(addonArgs: AddonArgs[]): AddonArgs[] {
-	const officialAddonIds = officialAddons.map((addon) => addon.id);
-	const invalidAddons = addonArgs
-		.filter(({ id }) => !officialAddonIds.includes(id) && !aliases.includes(id))
-		.map(({ id }) => id);
+export function sanitizeAddons(addonArgs: AddonArgsIn[]): AddonArgsOut[] {
+	const toRet = new Map<string, AddonArgsOut>();
+
+	const invalidAddons: string[] = [];
+	for (const addon of addonArgs) {
+		const official = officialAddons.find((a) => a.id === addon.id || a.alias === addon.id);
+		if (official) {
+			toRet.set(official.id, {
+				id: official.id,
+				options: addon.options ?? [],
+				kind: 'official'
+			});
+		} else if (addon.id.startsWith('file:')) {
+			const id = addon.id.replace('file:', '').trim();
+			if (!id) {
+				invalidAddons.push('file:');
+				continue;
+			}
+			toRet.set(addon.id, { id: addon.id, options: addon.options ?? [], kind: 'file' });
+		} else {
+			invalidAddons.push(addon.id);
+		}
+	}
 	if (invalidAddons.length > 0) {
-		common.errorAndExit(`Invalid add-ons specified: ${invalidAddons.join(', ')}`);
+		const highlighter = getHighlighter();
+		common.errorAndExit(
+			`Invalid add-ons specified: ${invalidAddons.map((id) => highlighter.command(id)).join(', ')}`
+		);
 	}
-	return transformAliases(addonArgs);
+
+	return Array.from(toRet.values());
 }
 
 /**
  * Handles passed add-on arguments, accumulating them into an array of {@link AddonArgs}.
  */
-export function addonArgsHandler(acc: AddonArgs[], current: string): AddonArgs[] {
+export function addonArgsHandler(acc: AddonArgsIn[], current: string): AddonArgsIn[] {
 	const [addonId, optionFlags] = current.split('=', 2);
 
 	// validates that there are no repeated add-ons (e.g. `sv add foo=demo:yes foo=demo:no`)
@@ -727,23 +762,6 @@ export function addonArgsHandler(acc: AddonArgs[], current: string): AddonArgs[]
 	return acc;
 }
 
-/**
- * Dedupes and transforms aliases into their respective addon id
- */
-function transformAliases(addons: AddonArgs[]): AddonArgs[] {
-	const set = new Map<string, AddonArgs>();
-
-	for (const addon of addons) {
-		if (aliases.includes(addon.id)) {
-			const officialAddon = officialAddons.find((a) => a.alias === addon.id)!;
-			set.set(officialAddon.id, { id: officialAddon.id, options: addon.options });
-		} else {
-			set.set(addon.id, addon);
-		}
-	}
-	return Array.from(set.values());
-}
-
 function getAddonOptionFlags() {
 	const options: Array<{ id: string; choices: string; preset: string }> = [];
 	for (const addon of officialAddons) {
@@ -792,7 +810,7 @@ function getOptionChoices(details: AddonWithoutExplicitArgs) {
 		}
 		if (question.type === 'string' || question.type === 'number') {
 			values = ['<user-input>'];
-			if (applyDefault) {
+			if (applyDefault && question.default !== undefined) {
 				options[id] = question.default;
 				defaults.push(question.default.toString());
 			}
@@ -807,24 +825,17 @@ function getOptionChoices(details: AddonWithoutExplicitArgs) {
 	return { choices, defaults, groups };
 }
 
-async function resolveCommunityAddons(cwd: string, community: string[]) {
-	const selectedAddons: Array<SelectedAddon['addon']> = [];
-	const addons = community.map((id) => {
-		// ids with directives are passed unmodified so they can be processed during downloads
-		const hasDirective = Object.values(Directive).some((directive) => id.startsWith(directive));
-		if (hasDirective) return id;
-
-		const validAddon = communityAddonIds.includes(id);
-		if (!validAddon) {
-			throw new Error(
-				`Invalid community add-on specified: '${id}'\nAvailable options: ${communityAddonIds.join(', ')}`
-			);
-		}
-		return id;
-	});
+export async function resolveNonOfficialAddons(
+	cwd: string,
+	addons: string[],
+	downloadCheck: boolean
+) {
+	const selectedAddons: SelectedAddon[] = [];
+	const highlighter = getHighlighter();
 	const { start, stop } = p.spinner();
+
 	try {
-		start('Resolving community add-on packages');
+		start(`Resolving ${addons.map((id) => highlighter.addon(id)).join(', ')} packages`);
 		const pkgs = await Promise.all(
 			addons.map(async (id) => {
 				return await getPackageJSON({ cwd, packageName: id });
@@ -833,7 +844,7 @@ async function resolveCommunityAddons(cwd: string, community: string[]) {
 		stop('Resolved community add-on packages');
 
 		p.log.warn(
-			'The Svelte maintainers have not reviewed community add-ons for malicious code. Use at your discretion.'
+			'Svelte maintainers have not reviewed community add-ons for malicious code. Use at your discretion.'
 		);
 
 		const paddingName = common.getPadding(pkgs.map(({ pkg }) => pkg.name));
@@ -847,22 +858,25 @@ async function resolveCommunityAddons(cwd: string, community: string[]) {
 		});
 		p.log.message(packageInfos.join('\n'));
 
-		const confirm = await p.confirm({ message: 'Would you like to continue?' });
-		if (confirm !== true) {
-			p.cancel('Operation cancelled.');
-			process.exit(1);
+		if (downloadCheck) {
+			const confirm = await p.confirm({ message: 'Would you like to continue?' });
+			if (confirm !== true) {
+				p.cancel('Operation cancelled.');
+				process.exit(1);
+			}
 		}
 
 		start('Downloading community add-on packages');
 		const details = await Promise.all(pkgs.map(async (opts) => downloadPackage(opts)));
 		for (const addon of details) {
-			communityDetails.push(addon);
 			selectedAddons.push(addon);
 		}
 		stop('Downloaded community add-on packages');
 	} catch (err) {
-		stop('Failed to resolve community add-on packages', 1);
-		throw err;
+		const msg = err instanceof Error ? err.message : 'Unknown error';
+		common.errorAndExit(
+			`Failed to resolve ${addons.map((id) => highlighter.addon(id)).join(', ')}\n${highlighter.optional(msg)}`
+		);
 	}
 	return selectedAddons;
 }
diff --git a/packages/sv/lib/cli/create.ts b/packages/sv/lib/cli/create.ts
index e02d2eeb6..60ec56c45 100644
--- a/packages/sv/lib/cli/create.ts
+++ b/packages/sv/lib/cli/create.ts
@@ -2,7 +2,7 @@ import fs from 'node:fs';
 import path from 'node:path';
 import process from 'node:process';
 import * as p from '@clack/prompts';
-import type { OptionValues, Workspace } from '../core/index.ts';
+import type { AddonWithoutExplicitArgs, OptionValues, Workspace } from '../core/index.ts';
 import {
 	create as createKit,
 	templates,
@@ -33,6 +33,7 @@ import {
 import {
 	addonArgsHandler,
 	promptAddonQuestions,
+	resolveNonOfficialAddons,
 	runAddonsApply,
 	sanitizeAddons,
 	type SelectedAddon
@@ -66,7 +67,8 @@ const OptionsSchema = v.strictObject({
 	install: v.union([v.boolean(), v.picklist(AGENT_NAMES)]),
 	template: v.optional(v.picklist(templateChoices)),
 	fromPlayground: v.optional(v.string()),
-	dirCheck: v.boolean()
+	dirCheck: v.boolean(),
+	downloadCheck: v.boolean()
 });
 type Options = v.InferOutput<typeof OptionsSchema>;
 type ProjectPath = v.InferOutput<typeof ProjectPathSchema>;
@@ -82,6 +84,7 @@ export const create = new Command('create')
 	.option('--no-install', 'skip installing dependencies')
 	.option('--from-playground <url>', 'create a project from the svelte playground')
 	.option('--no-dir-check', 'even if the folder is not empty, no prompt will be shown')
+	.option('--no-download-check', 'skip all download confirmation prompts')
 	.addOption(installOption)
 	.configureHelp(common.helpConfig)
 	.action((projectPath, opts) => {
@@ -186,8 +189,9 @@ async function createProject(cwd: ProjectPath, options: Options) {
 					options: templates.map((t) => ({ label: t.title, value: t.name, hint: t.description }))
 				});
 			},
-			language: () => {
+			language: (o) => {
 				if (options.types) return Promise.resolve(options.types);
+				if (o.results.template === 'addon') return Promise.resolve('none');
 				return p.select<LanguageType>({
 					message: 'Add type checking with TypeScript?',
 					initialValue: 'typescript',
@@ -211,19 +215,19 @@ async function createProject(cwd: ProjectPath, options: Options) {
 	const projectName = path.basename(projectPath);
 
 	let selectedAddons: SelectedAddon[] = [];
-	let answersOfficial: Record<string, OptionValues<any>> = {};
-	let answersCommunity: Record<string, OptionValues<any>> = {};
+	let answers: Record<string, OptionValues<any>> = {};
 	let sanitizedAddonsMap: Record<string, string[] | undefined> = {};
 
 	const workspace = await createVirtualWorkspace({
 		cwd: projectPath,
 		template,
-		type: language
+		type: language as LanguageType
 	});
 
-	if (options.addOns || options.add.length > 0) {
+	if (options.template !== 'addon' && (options.addOns || options.add.length > 0)) {
 		const addons = options.add.reduce(addonArgsHandler, []);
-		sanitizedAddonsMap = sanitizeAddons(addons).reduce<Record<string, string[] | undefined>>(
+		const sanitizedAddons = sanitizeAddons(addons);
+		sanitizedAddonsMap = sanitizedAddons.reduce<Record<string, string[] | undefined>>(
 			(acc, curr) => {
 				acc[curr.id] = curr.options;
 				return acc;
@@ -231,27 +235,43 @@ async function createProject(cwd: ProjectPath, options: Options) {
 			{}
 		);
 
+		// Resolve non-official addons early
+		const nonOfficialAddons = sanitizedAddons.filter((addon) => addon.kind !== 'official');
+		let nonOfficialAddonDetails: AddonWithoutExplicitArgs[] = [];
+		if (nonOfficialAddons.length > 0) {
+			nonOfficialAddonDetails = await resolveNonOfficialAddons(
+				projectPath,
+				nonOfficialAddons.map((addon) => addon.id),
+				options.downloadCheck
+			);
+			nonOfficialAddons.forEach((addon) => {
+				sanitizedAddonsMap[addon.id] = (nonOfficialAddonDetails.find(
+					(detail) => detail.id === addon.id
+				)?.options ?? []) as string[];
+			});
+		}
+
 		const result = await promptAddonQuestions({
 			options: {
 				cwd: projectPath,
 				install: false,
 				gitCheck: false,
-				community: [],
+				downloadCheck: options.downloadCheck,
 				addons: sanitizedAddonsMap
 			},
 			selectedAddonIds: Object.keys(sanitizedAddonsMap),
+			nonOfficialAddonDetails,
 			workspace
 		});
 
 		selectedAddons = result.selectedAddons;
-		answersOfficial = result.answersOfficial;
-		answersCommunity = result.answersCommunity;
+		answers = result.answers;
 	}
 
 	createKit(projectPath, {
 		name: projectName,
 		template,
-		types: language
+		types: language as LanguageType
 	});
 
 	if (options.fromPlayground) {
@@ -263,20 +283,19 @@ async function createProject(cwd: ProjectPath, options: Options) {
 	let addOnNextSteps: string[] = [];
 	let argsFormattedAddons: string[] = [];
 	let addOnFilesToFormat: string[] = [];
-	if (options.addOns || options.add.length > 0) {
+	if (options.template !== 'addon' && (options.addOns || options.add.length > 0)) {
 		const {
 			nextSteps,
 			argsFormattedAddons: argsFormatted,
 			filesToFormat
 		} = await runAddonsApply({
-			answersOfficial,
-			answersCommunity,
+			answers,
 			options: {
 				cwd: projectPath,
 				// in the create command, we don't want to install dependencies, we want to do it after the project is created
 				install: false,
 				gitCheck: false,
-				community: [],
+				downloadCheck: options.downloadCheck,
 				addons: sanitizedAddonsMap
 			},
 			selectedAddons,
diff --git a/packages/sv/lib/cli/tests/addon.ts b/packages/sv/lib/cli/tests/addon.ts
new file mode 100644
index 000000000..3388eb093
--- /dev/null
+++ b/packages/sv/lib/cli/tests/addon.ts
@@ -0,0 +1,31 @@
+import { describe, expect, it } from 'vitest';
+import { sanitizeAddons } from '../add/index.ts';
+
+describe('sanitizeAddons', () => {
+	it('should find official addon', () => {
+		expect(sanitizeAddons([{ id: 'eslint' }])).toEqual([
+			{ id: 'eslint', options: [], kind: 'official' }
+		]);
+	});
+	it('should find official addon with alias', () => {
+		expect(sanitizeAddons([{ id: 'tailwind' }])).toEqual([
+			{ id: 'tailwindcss', options: [], kind: 'official' }
+		]);
+	});
+	it('should have 2', () => {
+		expect(sanitizeAddons([{ id: 'eslint' }, { id: 'tailwindcss' }])).toEqual([
+			{ id: 'eslint', options: [], kind: 'official' },
+			{ id: 'tailwindcss', options: [], kind: 'official' }
+		]);
+	});
+	it('should dedupe even with alias', () => {
+		expect(sanitizeAddons([{ id: 'tailwind' }, { id: 'tailwindcss' }])).toEqual([
+			{ id: 'tailwindcss', options: [], kind: 'official' }
+		]);
+	});
+	it('should find file addons', () => {
+		expect(sanitizeAddons([{ id: 'file:../' }])).toEqual([
+			{ id: 'file:../', options: [], kind: 'file' }
+		]);
+	});
+});
diff --git a/packages/sv/lib/cli/tests/cli.ts b/packages/sv/lib/cli/tests/cli.ts
index f7088f7b8..c9f1896e7 100644
--- a/packages/sv/lib/cli/tests/cli.ts
+++ b/packages/sv/lib/cli/tests/cli.ts
@@ -6,6 +6,7 @@ import fs from 'node:fs';
 import { parseJson } from '../../core/tooling/index.ts';
 
 const monoRepoPath = path.resolve(__dirname, '..', '..', '..', '..', '..');
+const svBinPath = path.resolve(monoRepoPath, 'packages', 'sv', 'dist', 'bin.mjs');
 
 beforeAll(() => {
 	const testOutputCliPath = path.resolve(monoRepoPath, '.test-output', 'cli');
@@ -36,15 +37,19 @@ describe('cli', () => {
 				'mcp=ide:claude-code,cursor,gemini,opencode,vscode,other+setup:local'
 				// 'storybook' // No storybook addon during tests!
 			]
+		},
+		{
+			projectName: 'sv-hello',
+			template: 'addon',
+			args: ['--no-add-ons']
 		}
 	];
 
 	it.for(testCases)(
 		'should create a new project with name $projectName',
-		{ timeout: 10_000 },
+		{ timeout: 37_000 },
 		async (testCase) => {
-			const { projectName, args } = testCase;
-			const svBinPath = path.resolve(monoRepoPath, 'packages', 'sv', 'dist', 'bin.mjs');
+			const { projectName, args, template = 'minimal' } = testCase;
 			const testOutputPath = path.resolve(monoRepoPath, '.test-output', 'cli', projectName);
 
 			const result = await exec(
@@ -54,9 +59,8 @@ describe('cli', () => {
 					'create',
 					testOutputPath,
 					'--template',
-					'minimal',
-					'--types',
-					'ts',
+					template,
+					...(template === 'addon' ? ['--no-types'] : ['--types', 'ts']),
 					'--no-install',
 					...args
 				],
@@ -64,7 +68,7 @@ describe('cli', () => {
 			);
 
 			// cli finished well
-			expect(result.exitCode).toBe(0);
+			expect(result.exitCode, `Error with cli: '${result.stderr}'`).toBe(0);
 
 			// test output path exists
 			expect(fs.existsSync(testOutputPath)).toBe(true);
@@ -105,6 +109,34 @@ describe('cli', () => {
 					`file "${relativeFile}" does not match snapshot`
 				);
 			}
+
+			if (template === 'addon') {
+				// replace sv version in package.json for tests
+				const packageJsonPath = path.resolve(testOutputPath, 'package.json');
+				const packageJson = parseJson(fs.readFileSync(packageJsonPath, 'utf-8'));
+				packageJson.dependencies['sv'] = 'file:../../../packages/sv';
+				fs.writeFileSync(
+					packageJsonPath,
+					JSON.stringify(packageJson, null, 3).replaceAll('   ', '\t')
+				);
+
+				const cmds = [
+					// list of cmds to test
+					['i'],
+					['run', 'demo-create'],
+					['run', 'demo-add'],
+					['run', 'test']
+				];
+				for (const cmd of cmds) {
+					const res = await exec('npm', cmd, {
+						nodeOptions: { stdio: 'pipe', cwd: testOutputPath }
+					});
+					expect(
+						res.exitCode,
+						`Error addon test: '${cmd}' -> ${JSON.stringify(res, null, 2)}`
+					).toBe(0);
+				}
+			}
 		}
 	);
 });
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/.gitignore b/packages/sv/lib/cli/tests/snapshots/sv-hello/.gitignore
new file mode 100644
index 000000000..ace55725e
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/.gitignore
@@ -0,0 +1,26 @@
+node_modules
+demo/
+
+# Output
+.output
+.vercel
+.netlify
+.wrangler
+/.svelte-kit
+/build
+/dist
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Env
+.env
+.env.*
+!.env.example
+!.env.test
+
+# Vite
+vite.config.js.timestamp-*
+vite.config.ts.timestamp-*
+
diff --git a/community-addon-template/README.md b/packages/sv/lib/cli/tests/snapshots/sv-hello/README.md
similarity index 60%
rename from community-addon-template/README.md
rename to packages/sv/lib/cli/tests/snapshots/sv-hello/README.md
index 20f69acae..a4433df5c 100644
--- a/community-addon-template/README.md
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/README.md
@@ -1,21 +1,14 @@
-# community-addon-template
+# sv community addon: sv-hello
 
 > [!IMPORTANT]
 > Community add-ons are currently not supported. Please see [#184](https://github.com/sveltejs/cli/issues/184) for details.
 
 > [!IMPORTANT]
 > This template's dependencies may not be up-to-date; be sure to update them to the latest!
-> If you get stuck, check out the [implementations of official add-ons](https://github.com/sveltejs/cli/tree/main/packages/add-ons).
 
-The add-on template for community add-ons for [`sv`](https://github.com/sveltejs/cli).
+> If you get stuck, check out the [implementations of official add-ons](https://github.com/sveltejs/cli/tree/main/packages/addons).
 
-## Cloning the template
-
-Use [`degit`](https://github.com/Rich-Harris/degit) to clone the template:
-
-```shell
-npx degit sveltejs/cli/community-addon-template addon-name
-```
+created with [`sv`](https://svelte.dev/docs/cli/sv-create#Options-template-name).
 
 ## Using the add-on
 
@@ -24,15 +17,15 @@ To run the add-on, we'll first need a project to apply it to.
 Create the project with the following script:
 
 ```shell
-npm run create-temp
+npm run demo-create
 ```
 
-This will create a SvelteKit project in the `temp` directory.
+This will create a SvelteKit project in the `demo` directory.
 
 To execute the add-on, run:
 
 ```shell
-npm start
+npm run demo-add
 ```
 
 ## Sharing your add-on
@@ -48,11 +41,9 @@ Your published add-on can now be used by anyone!
 To execute the newly published package with `sv`, run:
 
 ```shell
-npx sv add --community npm:addon-package-name
+npx sv add npm:sv-hello
 ```
 
-After that, feel free to open a pull request to [`sv`](https://github.com/sveltejs/cli) and add your add-on to the [community list](/community-addons/).
-
 ## Things to be aware of
 
 Community add-ons are **not permitted** to have any external dependencies outside of `sv`. If the use of a dependency is absolutely necessary, then they can be bundled using a bundler of your choosing (e.g. Rollup, Rolldown, tsup, etc.).
diff --git a/community-addon-template/jsconfig.json b/packages/sv/lib/cli/tests/snapshots/sv-hello/jsconfig.json
similarity index 100%
rename from community-addon-template/jsconfig.json
rename to packages/sv/lib/cli/tests/snapshots/sv-hello/jsconfig.json
diff --git a/community-addon-template/package.json b/packages/sv/lib/cli/tests/snapshots/sv-hello/package.json
similarity index 54%
rename from community-addon-template/package.json
rename to packages/sv/lib/cli/tests/snapshots/sv-hello/package.json
index 349963fe4..68d13a1c9 100644
--- a/community-addon-template/package.json
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/package.json
@@ -1,12 +1,11 @@
 {
-	"name": "community-addon-template",
-	"private": true,
+	"name": "sv-hello",
 	"version": "0.0.0",
 	"type": "module",
 	"license": "MIT",
 	"scripts": {
-		"create-temp": "sv create temp --types ts --template minimal --no-add-ons --no-install",
-		"start": "sv add -C temp --community file:../",
+		"demo-create": "sv create demo-sv-hello --types ts --template minimal --no-add-ons --no-install",
+		"demo-add": "sv add file:../=who:you --cwd demo-sv-hello --no-git-check --no-download-check --no-install",
 		"test": "vitest run"
 	},
 	"files": [
@@ -15,7 +14,7 @@
 	],
 	"exports": "./src/index.js",
 	"dependencies": {
-		"sv": "workspace:*"
+		"sv": "latest"
 	},
 	"devDependencies": {
 		"@playwright/test": "^1.56.1",
@@ -23,6 +22,7 @@
 	},
 	"keywords": [
 		"svelte-add-on",
-		"sv"
+		"sv",
+		"sv-add-on"
 	]
 }
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/src/index.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/src/index.js
new file mode 100644
index 000000000..079a7fce3
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/src/index.js
@@ -0,0 +1,52 @@
+import { js, parseSvelte, defineAddon, defineAddonOptions, svelte } from 'sv/core';
+
+const options = defineAddonOptions()
+	.add('who', {
+		question: 'To whom should the addon say hello?',
+		type: 'string',
+		default: ''
+	})
+	.build();
+
+export default defineAddon({
+	id: 'sv-hello',
+	options,
+	setup: ({ kit, unsupported }) => {
+		if (!kit) unsupported('Requires SvelteKit');
+	},
+	run: ({ kit, sv, options, typescript }) => {
+		if (!kit) throw new Error('SvelteKit is required');
+
+		sv.file(`src/lib/sv-hello/content.txt`, (content) => {
+			return `This is a text file made by the Community Addon Template demo for the add-on: 'sv-hello'!`;
+		});
+
+		sv.file(`src/lib/sv-hello/HelloComponent.svelte`, (content) => {
+			// if (!options.demo) return content;
+			const { ast, generateCode } = parseSvelte(content);
+			const scriptAst = svelte.ensureScript(ast, { langTs: typescript });
+
+			js.imports.addDefault(scriptAst, { as: 'content', from: './content.txt?raw' });
+
+			ast.fragment.nodes.push(...svelte.toFragment('<p>{content}</p>'));
+			ast.fragment.nodes.push(...svelte.toFragment(`<h2>Hello ${options.who}!</h2>`));
+
+			return generateCode();
+		});
+
+		sv.file('src/routes/+page.svelte', (content) => {
+			// if (!options.demo) return content;
+			const { ast, generateCode } = parseSvelte(content);
+			const scriptAst = svelte.ensureScript(ast, { langTs: typescript });
+
+			js.imports.addDefault(scriptAst, {
+				as: 'HelloComponent',
+				from: `$lib/sv-hello/HelloComponent.svelte`
+			});
+
+			ast.fragment.nodes.push(...svelte.toFragment('<HelloComponent />'));
+
+			return generateCode();
+		});
+	}
+});
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/svelte.config.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/svelte.config.js
new file mode 100644
index 000000000..10c4eeb27
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/svelte.config.js
@@ -0,0 +1,13 @@
+import adapter from '@sveltejs/adapter-auto';
+
+/** @type {import('@sveltejs/kit').Config} */
+const config = {
+	kit: {
+		// adapter-auto only supports some environments, see https://svelte.dev/docs/kit/adapter-auto for a list.
+		// If your environment is not supported, or you settled on a specific environment, switch out the adapter.
+		// See https://svelte.dev/docs/kit/adapters for more information about adapters.
+		adapter: adapter()
+	}
+};
+
+export default config;
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/addon.test.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/addon.test.js
new file mode 100644
index 000000000..f66ac8db5
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/addon.test.js
@@ -0,0 +1,51 @@
+import { expect } from '@playwright/test';
+import { setupTest } from './setup/suite.js';
+import addon from '../src/index.js';
+import path from 'node:path';
+import fs from 'node:fs';
+
+const id = addon.id;
+
+// set to true to enable browser testing
+const browser = false;
+
+const { test, prepareServer, testCases } = setupTest(
+	{ addon },
+	{
+		kinds: [{ type: 'default', options: { [id]: addon } }],
+		filter: (testCase) => testCase.variant.includes('kit'),
+		browser
+	}
+);
+
+test.concurrent.for(testCases)(
+	'sv-hello $kind.type $variant',
+	async (testCase, { page, ...ctx }) => {
+		const cwd = ctx.cwd(testCase);
+
+		const msg =
+			"This is a text file made by the Community Addon Template demo for the add-on: 'sv-hello'!";
+
+		const contentPath = path.resolve(cwd, `src/lib/sv-hello/content.txt`);
+		const contentContent = fs.readFileSync(contentPath, 'utf8');
+
+		// Check if we have the imports
+		expect(contentContent).toContain(msg);
+
+		// For browser testing
+		if (browser) {
+			const { close } = await prepareServer({ cwd, page });
+			// kill server process when we're done
+			ctx.onTestFinished(async () => await close());
+
+			// expectations
+			const textContent = await page.locator('p').last().textContent();
+			if (testCase.variant.includes('kit')) {
+				expect(textContent).toContain(msg);
+			} else {
+				// it's not a kit plugin!
+				expect(textContent).not.toContain(msg);
+			}
+		}
+	}
+);
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/global.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/global.js
new file mode 100644
index 000000000..39d97e30a
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/global.js
@@ -0,0 +1,19 @@
+import { fileURLToPath } from 'node:url';
+import { setup, variants } from 'sv/testing';
+
+const TEST_DIR = fileURLToPath(new URL('../../.test-output/', import.meta.url));
+
+export default async function ({ provide }) {
+	// global setup (e.g. spin up docker containers)
+
+	// downloads different project configurations (sveltekit, js/ts, vite-only, etc)
+	const { templatesDir } = await setup({ cwd: TEST_DIR, variants, clean: true });
+
+	provide('testDir', TEST_DIR);
+	provide('templatesDir', templatesDir);
+	provide('variants', variants);
+
+	return async () => {
+		// tear down... (e.g. cleanup docker containers)
+	};
+}
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/suite.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/suite.js
new file mode 100644
index 000000000..2fab2e873
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/tests/setup/suite.js
@@ -0,0 +1,137 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { promisify } from 'node:util';
+import { exec, execSync } from 'node:child_process';
+import * as vitest from 'vitest';
+import { installAddon } from 'sv';
+import { createProject, startPreview, addPnpmBuildDependencies } from 'sv/testing';
+import { chromium } from '@playwright/test';
+
+const cwd = vitest.inject('testDir');
+const templatesDir = vitest.inject('templatesDir');
+const variants = vitest.inject('variants');
+
+export const execAsync = promisify(exec);
+
+export function setupTest(addons, options) {
+	const test = vitest.test.extend({});
+
+	const withBrowser = options?.browser ?? true;
+
+	let create;
+	let browser;
+
+	if (withBrowser) {
+		vitest.beforeAll(async () => {
+			browser = await chromium.launch();
+			return async () => {
+				await browser.close();
+			};
+		});
+	}
+
+	const testCases = [];
+	for (const kind of options?.kinds ?? []) {
+		for (const variant of variants) {
+			const addonTestCase = { variant, kind };
+			if (options?.filter === undefined || options.filter(addonTestCase)) {
+				testCases.push(addonTestCase);
+			}
+		}
+	}
+	let testName;
+	vitest.beforeAll(async ({ name }) => {
+		testName = path.dirname(name).split('/').at(-1);
+
+		// constructs a builder to create test projects
+		create = createProject({ cwd, templatesDir, testName });
+
+		// creates a pnpm workspace in each addon dir
+		fs.writeFileSync(
+			path.resolve(cwd, testName, 'pnpm-workspace.yaml'),
+			"packages:\n  - '**/*'",
+			'utf8'
+		);
+
+		// creates a barebones package.json in each addon dir
+		fs.writeFileSync(
+			path.resolve(cwd, testName, 'package.json'),
+			JSON.stringify({
+				name: `${testName}-workspace-root`,
+				private: true
+			})
+		);
+
+		for (const addonTestCase of testCases) {
+			const { variant, kind } = addonTestCase;
+			const cwd = create({ testId: `${kind.type}-${variant}`, variant });
+
+			// test metadata
+			const metaPath = path.resolve(cwd, 'meta.json');
+			fs.writeFileSync(metaPath, JSON.stringify({ variant, kind }, null, '\t'), 'utf8');
+
+			if (options?.preInstallAddon) {
+				await options.preInstallAddon({ addonTestCase, cwd });
+			}
+			const { pnpmBuildDependencies } = await installAddon({
+				cwd,
+				addons,
+				options: kind.options,
+				packageManager: 'pnpm'
+			});
+			await addPnpmBuildDependencies(cwd, 'pnpm', ['esbuild', ...pnpmBuildDependencies]);
+		}
+
+		execSync('pnpm install', { cwd: path.resolve(cwd, testName), stdio: 'pipe' });
+	});
+
+	// runs before each test case
+	vitest.beforeEach(async (ctx) => {
+		let browserCtx;
+		if (withBrowser) {
+			browserCtx = await browser.newContext();
+			ctx.page = await browserCtx.newPage();
+		}
+
+		ctx.cwd = (addonTestCase) => {
+			return path.join(cwd, testName, `${addonTestCase.kind.type}-${addonTestCase.variant}`);
+		};
+
+		return async () => {
+			if (withBrowser) {
+				await browserCtx.close();
+			}
+			// ...other tear downs
+		};
+	});
+
+	return { test, testCases, prepareServer };
+}
+
+// installs dependencies, builds the project, and spins up the preview server
+async function prepareServer({
+	cwd,
+	page,
+	buildCommand = 'pnpm build',
+	previewCommand = 'pnpm preview'
+}) {
+	// build project
+	if (buildCommand) execSync(buildCommand, { cwd, stdio: 'pipe' });
+
+	// start preview server
+	const { url, close } = await startPreview({ cwd, command: previewCommand });
+
+	// increases timeout as 30s is not always enough when running the full suite
+	page.setDefaultNavigationTimeout(60_000);
+
+	try {
+		// navigate to the page
+		await page.goto(url);
+	} catch (e) {
+		// cleanup in the instance of a timeout
+		await close();
+		throw e;
+	}
+
+	return { url, close };
+}
diff --git a/packages/sv/lib/cli/tests/snapshots/sv-hello/vite.config.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/vite.config.js
new file mode 100644
index 000000000..bbf8c7da4
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/vite.config.js
@@ -0,0 +1,6 @@
+import { sveltekit } from '@sveltejs/kit/vite';
+import { defineConfig } from 'vite';
+
+export default defineConfig({
+	plugins: [sveltekit()]
+});
diff --git a/community-addon-template/vitest.config.js b/packages/sv/lib/cli/tests/snapshots/sv-hello/vitest.config.js
similarity index 79%
rename from community-addon-template/vitest.config.js
rename to packages/sv/lib/cli/tests/snapshots/sv-hello/vitest.config.js
index 5fd114c7c..febf92485 100644
--- a/community-addon-template/vitest.config.js
+++ b/packages/sv/lib/cli/tests/snapshots/sv-hello/vitest.config.js
@@ -4,12 +4,11 @@ const ONE_MINUTE = 1000 * 60;
 
 export default defineConfig({
 	test: {
-		name: 'community-addon-template',
 		include: ['tests/**/*.test.{js,ts}'],
 		exclude: ['tests/setup/*'],
 		testTimeout: ONE_MINUTE * 3,
 		hookTimeout: ONE_MINUTE * 3,
-		globalSetup: ['tests/setup/global.ts'],
+		globalSetup: ['tests/setup/global.js'],
 		expect: {
 			requireAssertions: true
 		}
diff --git a/packages/sv/lib/cli/utils/common.ts b/packages/sv/lib/cli/utils/common.ts
index d377525f2..8414d2948 100644
--- a/packages/sv/lib/cli/utils/common.ts
+++ b/packages/sv/lib/cli/utils/common.ts
@@ -155,6 +155,7 @@ export function logArgs(
 
 export function errorAndExit(message: string) {
 	p.log.error(message);
+	p.log.message();
 	p.cancel('Operation failed.');
 	process.exit(1);
 }
diff --git a/packages/sv/lib/create/index.ts b/packages/sv/lib/create/index.ts
index 59b1ba8fb..32abe0ed1 100644
--- a/packages/sv/lib/create/index.ts
+++ b/packages/sv/lib/create/index.ts
@@ -1,11 +1,11 @@
 import fs from 'node:fs';
 import path from 'node:path';
-import { mkdirp, copy, dist, getSharedFiles } from './utils.ts';
+import { mkdirp, copy, dist, getSharedFiles, replace } from './utils.ts';
 
 export type TemplateType = (typeof templateTypes)[number];
 export type LanguageType = (typeof languageTypes)[number];
 
-const templateTypes = ['minimal', 'demo', 'library'] as const;
+const templateTypes = ['minimal', 'demo', 'library', 'addon'] as const;
 const languageTypes = ['typescript', 'checkjs', 'none'] as const;
 
 export type Options = {
@@ -49,10 +49,16 @@ export const templates: TemplateMetadata[] = templateTypes.map((dir) => {
 	};
 });
 
+const kv = (name: string) => {
+	return {
+		'~SV-NAME-TODO~': name
+	};
+};
+
 function write_template_files(template: string, types: LanguageType, name: string, cwd: string) {
 	const dir = dist(`templates/${template}`);
-	copy(`${dir}/assets`, cwd, (name: string) => name.replace('DOT-', '.'));
-	copy(`${dir}/package.json`, `${cwd}/package.json`);
+	copy(`${dir}/assets`, cwd, (name: string) => name.replace('DOT-', '.'), kv(name));
+	copy(`${dir}/package.json`, `${cwd}/package.json`, undefined, kv(name));
 
 	const manifest = `${dir}/files.types=${types}.json`;
 	const files = JSON.parse(fs.readFileSync(manifest, 'utf-8')) as File[];
@@ -60,8 +66,7 @@ function write_template_files(template: string, types: LanguageType, name: strin
 	files.forEach((file) => {
 		const dest = path.join(cwd, file.name);
 		mkdirp(path.dirname(dest));
-
-		fs.writeFileSync(dest, file.contents.replace(/~TODO~/g, name));
+		fs.writeFileSync(dest, replace(file.contents, kv(name)));
 	});
 }
 
@@ -69,7 +74,7 @@ function write_common_files(cwd: string, options: Options, name: string) {
 	const files = getSharedFiles();
 
 	const pkg_file = path.join(cwd, 'package.json');
-	const pkg = /** @type {any} */ JSON.parse(fs.readFileSync(pkg_file, 'utf-8'));
+	const pkg = JSON.parse(fs.readFileSync(pkg_file, 'utf-8'));
 
 	sort_files(files).forEach((file) => {
 		const include = file.include.every((condition) => matches_condition(condition, options));
@@ -83,7 +88,7 @@ function write_common_files(cwd: string, options: Options, name: string) {
 		} else {
 			const dest = path.join(cwd, file.name);
 			mkdirp(path.dirname(dest));
-			fs.writeFileSync(dest, file.contents);
+			fs.writeFileSync(dest, replace(file.contents, kv(name)));
 		}
 	});
 
diff --git a/packages/sv/lib/create/scripts/build-templates.js b/packages/sv/lib/create/scripts/build-templates.js
index d348d32de..552108e3a 100644
--- a/packages/sv/lib/create/scripts/build-templates.js
+++ b/packages/sv/lib/create/scripts/build-templates.js
@@ -96,8 +96,8 @@ async function generate_templates(dist, shared) {
 			// package.json in newly created projects (based on package.template.json)
 			if (name === 'package.template.json') {
 				let contents = fs.readFileSync(path.join(cwd, name), 'utf8');
-				// TODO package-specific versions
-				contents = contents.replace(/workspace:\*/g, 'next');
+				contents = contents.replace(/workspace:\*/g, 'latest');
+
 				fs.writeFileSync(path.join(dir, 'package.json'), contents);
 				continue;
 			}
diff --git a/packages/sv/lib/create/shared/+addon-typescript-checkjs/jsconfig.json b/packages/sv/lib/create/shared/+addon-typescript-checkjs/jsconfig.json
new file mode 100644
index 000000000..316d21865
--- /dev/null
+++ b/packages/sv/lib/create/shared/+addon-typescript-checkjs/jsconfig.json
@@ -0,0 +1,10 @@
+{
+	"exclude": ["**/temp/**"],
+	"compilerOptions": {
+		"strict": true,
+		"skipLibCheck": true,
+		"checkJs": true,
+		"module": "Node16",
+		"moduleResolution": "Node16"
+	}
+}
diff --git a/packages/sv/lib/create/shared/+addon/README.md b/packages/sv/lib/create/shared/+addon/README.md
new file mode 100644
index 000000000..3c165020e
--- /dev/null
+++ b/packages/sv/lib/create/shared/+addon/README.md
@@ -0,0 +1,49 @@
+# sv community addon: ~SV-NAME-TODO~
+
+> [!IMPORTANT]
+> Community add-ons are currently not supported. Please see [#184](https://github.com/sveltejs/cli/issues/184) for details.
+
+> [!IMPORTANT]
+> This template's dependencies may not be up-to-date; be sure to update them to the latest!
+
+> If you get stuck, check out the [implementations of official add-ons](https://github.com/sveltejs/cli/tree/main/packages/addons).
+
+created with [`sv`](https://svelte.dev/docs/cli/sv-create#Options-template-name).
+
+## Using the add-on
+
+To run the add-on, we'll first need a project to apply it to.
+
+Create the project with the following script:
+
+```shell
+npm run demo-create
+```
+
+This will create a SvelteKit project in the `demo` directory.
+
+To execute the add-on, run:
+
+```shell
+npm run demo-add
+```
+
+## Sharing your add-on
+
+When you're ready to publish your add-on to npm, run:
+
+```shell
+npm publish
+```
+
+Your published add-on can now be used by anyone!
+
+To execute the newly published package with `sv`, run:
+
+```shell
+npx sv add npm:~SV-NAME-TODO~
+```
+
+## Things to be aware of
+
+Community add-ons are **not permitted** to have any external dependencies outside of `sv`. If the use of a dependency is absolutely necessary, then they can be bundled using a bundler of your choosing (e.g. Rollup, Rolldown, tsup, etc.).
diff --git a/packages/sv/lib/create/templates/addon/.gitignore b/packages/sv/lib/create/templates/addon/.gitignore
new file mode 100644
index 000000000..ace55725e
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/.gitignore
@@ -0,0 +1,26 @@
+node_modules
+demo/
+
+# Output
+.output
+.vercel
+.netlify
+.wrangler
+/.svelte-kit
+/build
+/dist
+
+# OS
+.DS_Store
+Thumbs.db
+
+# Env
+.env
+.env.*
+!.env.example
+!.env.test
+
+# Vite
+vite.config.js.timestamp-*
+vite.config.ts.timestamp-*
+
diff --git a/packages/sv/lib/create/templates/addon/.ignore b/packages/sv/lib/create/templates/addon/.ignore
new file mode 100644
index 000000000..449d6440c
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/.ignore
@@ -0,0 +1,3 @@
+package.json
+.meta.json
+.turbo
\ No newline at end of file
diff --git a/packages/sv/lib/create/templates/addon/.meta.json b/packages/sv/lib/create/templates/addon/.meta.json
new file mode 100644
index 000000000..ca10b19a7
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/.meta.json
@@ -0,0 +1,4 @@
+{
+	"title": "sv community add-on",
+	"description": "scaffolding an empty community add-on, ready to be tested and published"
+}
diff --git a/packages/sv/lib/create/templates/addon/package.template.json b/packages/sv/lib/create/templates/addon/package.template.json
new file mode 100644
index 000000000..c2786816f
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/package.template.json
@@ -0,0 +1,21 @@
+{
+	"name": "~SV-NAME-TODO~",
+	"version": "0.0.0",
+	"type": "module",
+	"license": "MIT",
+	"scripts": {
+		"demo-create": "sv create demo-sv-hello --types ts --template minimal --no-add-ons --no-install",
+		"demo-add": "sv add file:../=who:you --cwd demo-sv-hello --no-git-check --no-download-check --no-install",
+		"test": "vitest run"
+	},
+	"files": ["src", "!src/**/*.test.*"],
+	"exports": "./src/index.js",
+	"dependencies": {
+		"sv": "workspace:*"
+	},
+	"devDependencies": {
+		"@playwright/test": "^1.56.1",
+		"vitest": "4.0.7"
+	},
+	"keywords": ["svelte-add-on", "sv", "sv-add-on"]
+}
diff --git a/packages/sv/lib/create/templates/addon/src/index.js b/packages/sv/lib/create/templates/addon/src/index.js
new file mode 100644
index 000000000..565d2494d
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/src/index.js
@@ -0,0 +1,52 @@
+import { js, parseSvelte, defineAddon, defineAddonOptions, svelte } from 'sv/core';
+
+const options = defineAddonOptions()
+	.add('who', {
+		question: 'To whom should the addon say hello?',
+		type: 'string',
+		default: ''
+	})
+	.build();
+
+export default defineAddon({
+	id: '~SV-NAME-TODO~',
+	options,
+	setup: ({ kit, unsupported }) => {
+		if (!kit) unsupported('Requires SvelteKit');
+	},
+	run: ({ kit, sv, options, typescript }) => {
+		if (!kit) throw new Error('SvelteKit is required');
+
+		sv.file(`src/lib/~SV-NAME-TODO~/content.txt`, (content) => {
+			return `This is a text file made by the Community Addon Template demo for the add-on: '~SV-NAME-TODO~'!`;
+		});
+
+		sv.file(`src/lib/~SV-NAME-TODO~/HelloComponent.svelte`, (content) => {
+			// if (!options.demo) return content;
+			const { ast, generateCode } = parseSvelte(content);
+			const scriptAst = svelte.ensureScript(ast, { langTs: typescript });
+
+			js.imports.addDefault(scriptAst, { as: 'content', from: './content.txt?raw' });
+
+			ast.fragment.nodes.push(...svelte.toFragment('<p>{content}</p>'));
+			ast.fragment.nodes.push(...svelte.toFragment(`<h2>Hello ${options.who}!</h2>`));
+
+			return generateCode();
+		});
+
+		sv.file('src/routes/+page.svelte', (content) => {
+			// if (!options.demo) return content;
+			const { ast, generateCode } = parseSvelte(content);
+			const scriptAst = svelte.ensureScript(ast, { langTs: typescript });
+
+			js.imports.addDefault(scriptAst, {
+				as: 'HelloComponent',
+				from: `$lib/~SV-NAME-TODO~/HelloComponent.svelte`
+			});
+
+			ast.fragment.nodes.push(...svelte.toFragment('<HelloComponent />'));
+
+			return generateCode();
+		});
+	}
+});
diff --git a/packages/sv/lib/create/templates/addon/tests/addon.test.ts b/packages/sv/lib/create/templates/addon/tests/addon.test.ts
new file mode 100644
index 000000000..6c3b7d38a
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/addon.test.ts
@@ -0,0 +1,51 @@
+import { expect } from '@playwright/test';
+import { setupTest } from './setup/suite.js';
+import addon from '../src/index.js';
+import path from 'node:path';
+import fs from 'node:fs';
+
+const id = addon.id;
+
+// set to true to enable browser testing
+const browser = false;
+
+const { test, prepareServer, testCases } = setupTest(
+	{ addon },
+	{
+		kinds: [{ type: 'default', options: { [id]: addon } }],
+		filter: (testCase) => testCase.variant.includes('kit'),
+		browser
+	}
+);
+
+test.concurrent.for(testCases)(
+	'~SV-NAME-TODO~ $kind.type $variant',
+	async (testCase, { page, ...ctx }) => {
+		const cwd = ctx.cwd(testCase);
+
+		const msg =
+			"This is a text file made by the Community Addon Template demo for the add-on: '~SV-NAME-TODO~'!";
+
+		const contentPath = path.resolve(cwd, `src/lib/~SV-NAME-TODO~/content.txt`);
+		const contentContent = fs.readFileSync(contentPath, 'utf8');
+
+		// Check if we have the imports
+		expect(contentContent).toContain(msg);
+
+		// For browser testing
+		if (browser) {
+			const { close } = await prepareServer({ cwd, page });
+			// kill server process when we're done
+			ctx.onTestFinished(async () => await close());
+
+			// expectations
+			const textContent = await page.locator('p').last().textContent();
+			if (testCase.variant.includes('kit')) {
+				expect(textContent).toContain(msg);
+			} else {
+				// it's not a kit plugin!
+				expect(textContent).not.toContain(msg);
+			}
+		}
+	}
+);
diff --git a/community-addon-template/tests/setup/global.ts b/packages/sv/lib/create/templates/addon/tests/setup/global.ts
similarity index 85%
rename from community-addon-template/tests/setup/global.ts
rename to packages/sv/lib/create/templates/addon/tests/setup/global.ts
index a9cbb495c..cb345fca4 100644
--- a/community-addon-template/tests/setup/global.ts
+++ b/packages/sv/lib/create/templates/addon/tests/setup/global.ts
@@ -1,9 +1,8 @@
 import { fileURLToPath } from 'node:url';
-import { setup, type ProjectVariant } from 'sv/testing';
+import { setup, variants, type ProjectVariant } from 'sv/testing';
 import type { TestProject } from 'vitest/node';
 
 const TEST_DIR = fileURLToPath(new URL('../../.test-output/', import.meta.url));
-const variants: ProjectVariant[] = ['kit-js', 'kit-ts', 'vite-js', 'vite-ts'];
 
 export default async function ({ provide }: TestProject) {
 	// global setup (e.g. spin up docker containers)
diff --git a/community-addon-template/tests/setup/suite.ts b/packages/sv/lib/create/templates/addon/tests/setup/suite.ts
similarity index 82%
rename from community-addon-template/tests/setup/suite.ts
rename to packages/sv/lib/create/templates/addon/tests/setup/suite.ts
index 962f3d776..ff0d4192a 100644
--- a/community-addon-template/tests/setup/suite.ts
+++ b/packages/sv/lib/create/templates/addon/tests/setup/suite.ts
@@ -1,6 +1,7 @@
 import fs from 'node:fs';
 import path from 'node:path';
-import { execSync } from 'node:child_process';
+import { promisify } from 'node:util';
+import { exec, execSync } from 'node:child_process';
 import * as vitest from 'vitest';
 import { installAddon, type AddonMap, type OptionMap } from 'sv';
 import {
@@ -11,13 +12,12 @@ import {
 	type ProjectVariant
 } from 'sv/testing';
 import { chromium, type Browser, type BrowserContext, type Page } from '@playwright/test';
-import { fileURLToPath } from 'node:url';
 
 const cwd = vitest.inject('testDir');
 const templatesDir = vitest.inject('templatesDir');
 const variants = vitest.inject('variants');
 
-const SETUP_DIR = fileURLToPath(new URL('.', import.meta.url));
+export const execAsync = promisify(exec);
 
 type Fixtures = {
 	page: Page;
@@ -35,6 +35,10 @@ export function setupTest<Addons extends AddonMap>(
 		kinds: Array<AddonTestCase<Addons>['kind']>;
 		filter?: (addonTestCase: AddonTestCase<Addons>) => boolean;
 		browser?: boolean;
+		preInstallAddon?: (o: {
+			addonTestCase: AddonTestCase<Addons>;
+			cwd: string;
+		}) => Promise<void> | void;
 	}
 ) {
 	const test = vitest.test.extend<Fixtures>({} as any);
@@ -53,12 +57,12 @@ export function setupTest<Addons extends AddonMap>(
 		});
 	}
 
-	const addonTestCases: Array<AddonTestCase<Addons>> = [];
+	const testCases: Array<AddonTestCase<Addons>> = [];
 	for (const kind of options?.kinds ?? []) {
 		for (const variant of variants) {
 			const addonTestCase = { variant, kind };
-			if (!options?.filter || options?.filter?.(addonTestCase)) {
-				addonTestCases.push(addonTestCase);
+			if (options?.filter === undefined || options.filter(addonTestCase)) {
+				testCases.push(addonTestCase);
 			}
 		}
 	}
@@ -66,7 +70,7 @@ export function setupTest<Addons extends AddonMap>(
 	vitest.beforeAll(async ({ name }) => {
 		testName = path.dirname(name).split('/').at(-1)!;
 
-		// constructs a builder for create test projects
+		// constructs a builder to create test projects
 		create = createProject({ cwd, templatesDir, testName });
 
 		// creates a pnpm workspace in each addon dir
@@ -85,13 +89,17 @@ export function setupTest<Addons extends AddonMap>(
 			})
 		);
 
-		for (const { variant, kind } of addonTestCases) {
+		for (const addonTestCase of testCases) {
+			const { variant, kind } = addonTestCase;
 			const cwd = create({ testId: `${kind.type}-${variant}`, variant });
 
 			// test metadata
 			const metaPath = path.resolve(cwd, 'meta.json');
 			fs.writeFileSync(metaPath, JSON.stringify({ variant, kind }, null, '\t'), 'utf8');
 
+			if (options?.preInstallAddon) {
+				await options.preInstallAddon({ addonTestCase, cwd });
+			}
 			const { pnpmBuildDependencies } = await installAddon({
 				cwd,
 				addons,
@@ -124,7 +132,7 @@ export function setupTest<Addons extends AddonMap>(
 		};
 	});
 
-	return { test, addonTestCases, prepareServer };
+	return { test, testCases, prepareServer };
 }
 
 type PrepareServerOptions = {
@@ -160,14 +168,3 @@ async function prepareServer({
 
 	return { url, close };
 }
-
-/**
- * Applies a fixture to the target path
- */
-export function fixture({ name, target }: { name: string; target: string }) {
-	const fixturePath = path.resolve(SETUP_DIR, '..', 'fixtures', name);
-	if (!fs.existsSync(fixturePath)) {
-		throw new Error(`Fixture does not exist at: ${fixturePath}`);
-	}
-	fs.copyFileSync(fixturePath, target);
-}
diff --git a/packages/sv/lib/create/templates/addon/vitest.config.js b/packages/sv/lib/create/templates/addon/vitest.config.js
new file mode 100644
index 000000000..febf92485
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/vitest.config.js
@@ -0,0 +1,16 @@
+import { defineConfig } from 'vitest/config';
+
+const ONE_MINUTE = 1000 * 60;
+
+export default defineConfig({
+	test: {
+		include: ['tests/**/*.test.{js,ts}'],
+		exclude: ['tests/setup/*'],
+		testTimeout: ONE_MINUTE * 3,
+		hookTimeout: ONE_MINUTE * 3,
+		globalSetup: ['tests/setup/global.js'],
+		expect: {
+			requireAssertions: true
+		}
+	}
+});
diff --git a/packages/sv/lib/create/templates/demo/package.template.json b/packages/sv/lib/create/templates/demo/package.template.json
index e8ff06979..3f90b8f37 100644
--- a/packages/sv/lib/create/templates/demo/package.template.json
+++ b/packages/sv/lib/create/templates/demo/package.template.json
@@ -1,5 +1,5 @@
 {
-	"name": "~TODO~",
+	"name": "~SV-NAME-TODO~",
 	"private": true,
 	"version": "0.0.1",
 	"type": "module",
diff --git a/packages/sv/lib/create/templates/library/package.template.json b/packages/sv/lib/create/templates/library/package.template.json
index 90561b203..2d70b6d16 100644
--- a/packages/sv/lib/create/templates/library/package.template.json
+++ b/packages/sv/lib/create/templates/library/package.template.json
@@ -1,5 +1,5 @@
 {
-	"name": "~TODO~",
+	"name": "~SV-NAME-TODO~",
 	"version": "0.0.1",
 	"scripts": {
 		"dev": "vite dev",
diff --git a/packages/sv/lib/create/templates/minimal/package.template.json b/packages/sv/lib/create/templates/minimal/package.template.json
index bd3b6b805..e7dea8aff 100644
--- a/packages/sv/lib/create/templates/minimal/package.template.json
+++ b/packages/sv/lib/create/templates/minimal/package.template.json
@@ -1,5 +1,5 @@
 {
-	"name": "~TODO~",
+	"name": "~SV-NAME-TODO~",
 	"private": true,
 	"version": "0.0.1",
 	"type": "module",
diff --git a/packages/sv/lib/create/test/check.ts b/packages/sv/lib/create/test/check.ts
index 268bdeddf..331ebe7cd 100644
--- a/packages/sv/lib/create/test/check.ts
+++ b/packages/sv/lib/create/test/check.ts
@@ -11,7 +11,7 @@ import { installAddon, officialAddons } from '../../../../sv/lib/index.ts';
 const resolve_path = (path: string) => fileURLToPath(new URL(path, import.meta.url));
 
 // use a directory outside of packages to ensure it isn't added to the pnpm workspace
-const test_workspace_dir = resolve_path('../../../.test-output/create/');
+const test_workspace_dir = resolve_path('../../../../../.test-output/create/');
 
 // prepare test pnpm workspace
 fs.rmSync(test_workspace_dir, { recursive: true, force: true });
@@ -35,7 +35,7 @@ const script_test_map = new Map<string, Array<[string, () => PromiseWithChild<an
 
 const templates = fs.readdirSync(resolve_path('../templates/')) as TemplateType[];
 
-for (const template of templates) {
+for (const template of templates.filter((t) => t !== 'addon')) {
 	if (template[0] === '.') continue;
 
 	for (const types of ['checkjs', 'typescript', 'none'] as LanguageType[]) {
diff --git a/packages/sv/lib/create/utils.ts b/packages/sv/lib/create/utils.ts
index 08dd6891e..f428fde8d 100644
--- a/packages/sv/lib/create/utils.ts
+++ b/packages/sv/lib/create/utils.ts
@@ -17,22 +17,29 @@ function identity<T>(x: T): T {
 	return x;
 }
 
+export function replace(contents: string, kv: Record<string, string>): string {
+	for (const [key, value] of Object.entries(kv)) {
+		contents = contents.replaceAll(key, value);
+	}
+	return contents;
+}
+
 export function copy(
 	from: string,
 	to: string,
-	rename: (basename: string) => string = identity
+	rename: (basename: string) => string = identity,
+	kv: Record<string, string> = {}
 ): void {
 	if (!fs.existsSync(from)) return;
-
 	const stats = fs.statSync(from);
 
 	if (stats.isDirectory()) {
 		fs.readdirSync(from).forEach((file) => {
-			copy(path.join(from, file), path.join(to, rename(file)));
+			copy(path.join(from, file), path.join(to, rename(file)), rename, kv);
 		});
 	} else {
 		mkdirp(path.dirname(to));
-		fs.copyFileSync(from, to);
+		fs.writeFileSync(to, replace(fs.readFileSync(from, 'utf-8'), kv));
 	}
 }
 
diff --git a/packages/sv/lib/testing.ts b/packages/sv/lib/testing.ts
index 1fa1532b8..c48ba0c3d 100644
--- a/packages/sv/lib/testing.ts
+++ b/packages/sv/lib/testing.ts
@@ -8,6 +8,7 @@ import pstree, { type PS } from 'ps-tree';
 
 export { addPnpmBuildDependencies } from './cli/utils/package-manager.ts';
 export type ProjectVariant = 'kit-js' | 'kit-ts' | 'vite-js' | 'vite-ts';
+export const variants: ProjectVariant[] = ['kit-js', 'kit-ts', 'vite-js', 'vite-ts'];
 
 const TEMPLATES_DIR = '.templates';
 
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index af0ba23a7..2636931ed 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -66,19 +66,6 @@ importers:
         specifier: 4.0.7
         version: 4.0.7(@types/node@22.19.1)(@vitest/ui@4.0.7)(jiti@2.6.1)(yaml@2.8.1)
 
-  community-addon-template:
-    dependencies:
-      sv:
-        specifier: workspace:*
-        version: link:../packages/sv
-    devDependencies:
-      '@playwright/test':
-        specifier: ^1.56.1
-        version: 1.56.1
-      vitest:
-        specifier: 4.0.7
-        version: 4.0.7(@types/node@22.19.1)(@vitest/ui@4.0.7)(jiti@2.6.1)(yaml@2.8.1)
-
   packages/migrate:
     dependencies:
       '@clack/prompts':
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
index 6e0eb8cb7..3536d76ec 100644
--- a/pnpm-workspace.yaml
+++ b/pnpm-workspace.yaml
@@ -1,6 +1,5 @@
 packages:
   - 'packages/*'
-  - 'community-addon-template'
   - '!.test-tmp/**'
 
 onlyBuiltDependencies:
diff --git a/vitest.config.ts b/vitest.config.ts
index 5be35e58f..be8291ca3 100644
--- a/vitest.config.ts
+++ b/vitest.config.ts
@@ -7,8 +7,7 @@ export default defineConfig({
 			'packages/sv/lib/cli/vitest.config.ts',
 			'packages/sv/lib/addons/vitest.config.ts',
 			'packages/sv/lib/create/vitest.config.ts',
-			'packages/sv/lib/core/vitest.config.ts',
-			'community-addon-template'
+			'packages/sv/lib/core/vitest.config.ts'
 		]
 	}
 });