diff --git a/packages/create-payload-app/package.json b/packages/create-payload-app/package.json
index bb5720263..78bb757db 100644
--- a/packages/create-payload-app/package.json
+++ b/packages/create-payload-app/package.json
@@ -31,7 +31,7 @@
     "detect-package-manager": "^3.0.1",
     "esprima": "^4.0.1",
     "execa": "^5.0.0",
-    "figures": "^3.2.0",
+    "figures": "^6.1.0",
     "fs-extra": "^9.0.1",
     "globby": "11.1.0",
     "terminal-link": "^2.1.1"
diff --git a/packages/create-payload-app/src/lib/create-project.spec.ts b/packages/create-payload-app/src/lib/create-project.spec.ts
index af5b84029..ba57302e0 100644
--- a/packages/create-payload-app/src/lib/create-project.spec.ts
+++ b/packages/create-payload-app/src/lib/create-project.spec.ts
@@ -128,9 +128,4 @@ describe('createProject', () => {
       })
     })
   })
-
-  describe('Templates', () => {
-    it.todo('Verify that all templates are valid')
-    // Loop through all templates.ts that should have replacement comments, and verify that they are present
-  })
 })
diff --git a/packages/create-payload-app/src/lib/init-next.ts b/packages/create-payload-app/src/lib/init-next.ts
index d4c39279a..b8374ef74 100644
--- a/packages/create-payload-app/src/lib/init-next.ts
+++ b/packages/create-payload-app/src/lib/init-next.ts
@@ -25,7 +25,7 @@ import { wrapNextConfig } from './wrap-next-config.js'
 
 type InitNextArgs = Pick<CliArgs, '--debug'> & {
   dbType: DbType
-  nextConfigPath: string
+  nextAppDetails?: NextAppDetails
   packageManager: PackageManager
   projectDir: string
   useDistFiles?: boolean
@@ -43,24 +43,16 @@ type InitNextResult =
 export async function initNext(args: InitNextArgs): Promise<InitNextResult> {
   const { dbType: dbType, packageManager, projectDir } = args
 
-  const isSrcDir = fs.existsSync(path.resolve(projectDir, 'src'))
+  const nextAppDetails = args.nextAppDetails || (await getNextAppDetails(projectDir))
 
-  // Get app directory. Could be top-level or src/app
-  const nextAppDir = (
-    await globby(['**/app'], {
-      absolute: true,
-      cwd: projectDir,
-      onlyDirectories: true,
-    })
-  )?.[0]
+  const { hasTopLevelLayout, isSrcDir, nextAppDir } =
+    nextAppDetails || (await getNextAppDetails(projectDir))
 
   if (!nextAppDir) {
     return { isSrcDir, reason: `Could not find app directory in ${projectDir}`, success: false }
   }
 
-  // Check for top-level layout.tsx
-  const layoutPath = path.resolve(nextAppDir, 'layout.tsx')
-  if (fs.existsSync(layoutPath)) {
+  if (hasTopLevelLayout) {
     // Output directions for user to move all files from app to top-level directory named `(app)`
     p.log.warn(moveMessage({ nextAppDir, projectDir }))
     return {
@@ -76,8 +68,7 @@ export async function initNext(args: InitNextArgs): Promise<InitNextResult> {
 
   const configurationResult = installAndConfigurePayload({
     ...args,
-    isSrcDir,
-    nextAppDir,
+    nextAppDetails,
     useDistFiles: true, // Requires running 'pnpm pack-template-files' in cpa
   })
 
@@ -115,7 +106,10 @@ async function addPayloadConfigToTsConfig(projectDir: string, isSrcDir: boolean)
     userTsConfig.compilerOptions = {}
   }
 
-  if (!userTsConfig.compilerOptions.paths?.['@payload-config']) {
+  if (
+    !userTsConfig.compilerOptions?.paths?.['@payload-config'] &&
+    userTsConfig.compilerOptions?.paths
+  ) {
     userTsConfig.compilerOptions.paths = {
       ...(userTsConfig.compilerOptions.paths || {}),
       '@payload-config': [`./${isSrcDir ? 'src/' : ''}payload.config.ts`],
@@ -125,14 +119,23 @@ async function addPayloadConfigToTsConfig(projectDir: string, isSrcDir: boolean)
 }
 
 function installAndConfigurePayload(
-  args: InitNextArgs & {
-    isSrcDir: boolean
-    nextAppDir: string
-  },
+  args: InitNextArgs & { nextAppDetails: NextAppDetails; useDistFiles?: boolean },
 ):
   | { payloadConfigPath: string; success: true }
   | { payloadConfigPath?: string; reason: string; success: false } {
-  const { '--debug': debug, isSrcDir, nextAppDir, nextConfigPath, projectDir, useDistFiles } = args
+  const {
+    '--debug': debug,
+    nextAppDetails: { isSrcDir, nextAppDir, nextConfigPath } = {},
+    projectDir,
+    useDistFiles,
+  } = args
+
+  if (!nextAppDir || !nextConfigPath) {
+    return {
+      reason: 'Could not find app directory or next.config.js',
+      success: false,
+    }
+  }
 
   const logDebug = (message: string) => {
     if (debug) origDebug(message)
@@ -164,7 +167,6 @@ function installAndConfigurePayload(
   logDebug(`Copying template files from ${templateFilesPath} to ${nextAppDir}`)
 
   const templateSrcDir = path.resolve(templateFilesPath, isSrcDir ? '' : 'src')
-  // const templateSrcDir = path.resolve(templateFilesPath)
 
   logDebug(`templateSrcDir: ${templateSrcDir}`)
   logDebug(`nextAppDir: ${nextAppDir}`)
@@ -218,3 +220,43 @@ async function installDeps(projectDir: string, packageManager: PackageManager, d
 
   return { success: exitCode === 0 }
 }
+
+type NextAppDetails = {
+  hasTopLevelLayout: boolean
+  isSrcDir: boolean
+  nextAppDir?: string
+  nextConfigPath?: string
+}
+
+export async function getNextAppDetails(projectDir: string): Promise<NextAppDetails> {
+  const isSrcDir = fs.existsSync(path.resolve(projectDir, 'src'))
+
+  const nextConfigPath: string | undefined = (
+    await globby('next.config.*js', { absolute: true, cwd: projectDir })
+  )?.[0]
+  if (!nextConfigPath || nextConfigPath.length === 0) {
+    return {
+      hasTopLevelLayout: false,
+      isSrcDir,
+      nextConfigPath: undefined,
+    }
+  }
+
+  let nextAppDir: string | undefined = (
+    await globby(['**/app'], {
+      absolute: true,
+      cwd: projectDir,
+      onlyDirectories: true,
+    })
+  )?.[0]
+
+  if (!nextAppDir || nextAppDir.length === 0) {
+    nextAppDir = undefined
+  }
+
+  const hasTopLevelLayout = nextAppDir
+    ? fs.existsSync(path.resolve(nextAppDir, 'layout.tsx'))
+    : false
+
+  return { hasTopLevelLayout, isSrcDir, nextAppDir, nextConfigPath }
+}
diff --git a/packages/create-payload-app/src/lib/wrap-next-config.ts b/packages/create-payload-app/src/lib/wrap-next-config.ts
index 6964f9842..93722e0c3 100644
--- a/packages/create-payload-app/src/lib/wrap-next-config.ts
+++ b/packages/create-payload-app/src/lib/wrap-next-config.ts
@@ -40,10 +40,10 @@ export function parseAndModifyConfigContent(content: string): {
     throw new Error('Could not find ExportDefaultDeclaration in next.config.js')
   }
 
-  if (exportDefaultDeclaration) {
+  if (exportDefaultDeclaration && exportDefaultDeclaration.declaration?.loc) {
     const modifiedConfigContent = insertBeforeAndAfter(
       content,
-      exportDefaultDeclaration.declaration?.loc,
+      exportDefaultDeclaration.declaration.loc,
     )
     return { modifiedConfigContent, success: true }
   } else if (exportNamedDeclaration) {
@@ -65,13 +65,13 @@ export function parseAndModifyConfigContent(content: string): {
         success: false,
       }
     }
-  } else {
-    warning('Could not automatically wrap next.config.js with withPayload.')
-    warnUserWrapNotSuccessful()
-    return {
-      modifiedConfigContent: content,
-      success: false,
-    }
+  }
+
+  warning('Could not automatically wrap next.config.js with withPayload.')
+  warnUserWrapNotSuccessful()
+  return {
+    modifiedConfigContent: content,
+    success: false,
   }
 }
 
diff --git a/packages/create-payload-app/src/lib/write-env-file.ts b/packages/create-payload-app/src/lib/write-env-file.ts
index bff1b7522..04c10455e 100644
--- a/packages/create-payload-app/src/lib/write-env-file.ts
+++ b/packages/create-payload-app/src/lib/write-env-file.ts
@@ -11,7 +11,7 @@ export async function writeEnvFile(args: {
   databaseUri: string
   payloadSecret: string
   projectDir: string
-  template: ProjectTemplate
+  template?: ProjectTemplate
 }): Promise<void> {
   const { cliArgs, databaseUri, payloadSecret, projectDir, template } = args
 
@@ -21,7 +21,7 @@ export async function writeEnvFile(args: {
   }
 
   try {
-    if (template.type === 'starter' && fs.existsSync(path.join(projectDir, '.env.example'))) {
+    if (template?.type === 'starter' && fs.existsSync(path.join(projectDir, '.env.example'))) {
       // Parse .env file into key/value pairs
       const envFile = await fs.readFile(path.join(projectDir, '.env.example'), 'utf8')
       const envWithValues: string[] = envFile
@@ -47,7 +47,7 @@ export async function writeEnvFile(args: {
       // Write new .env file
       await fs.writeFile(path.join(projectDir, '.env'), envWithValues.join('\n'))
     } else {
-      const content = `MONGODB_URI=${databaseUri}\nPAYLOAD_SECRET=${payloadSecret}`
+      const content = `DATABASE_URI=${databaseUri}\nPAYLOAD_SECRET=${payloadSecret}`
       await fs.outputFile(`${projectDir}/.env`, content)
     }
   } catch (err: unknown) {
diff --git a/packages/create-payload-app/src/main.ts b/packages/create-payload-app/src/main.ts
index c35ce5577..f32e14f75 100644
--- a/packages/create-payload-app/src/main.ts
+++ b/packages/create-payload-app/src/main.ts
@@ -2,8 +2,9 @@ import * as p from '@clack/prompts'
 import slugify from '@sindresorhus/slugify'
 import arg from 'arg'
 import chalk from 'chalk'
+// @ts-expect-error no types
 import { detect } from 'detect-package-manager'
-import globby from 'globby'
+import figures from 'figures'
 import path from 'path'
 
 import type { CliArgs, PackageManager } from './types.js'
@@ -11,14 +12,20 @@ import type { CliArgs, PackageManager } from './types.js'
 import { configurePayloadConfig } from './lib/configure-payload-config.js'
 import { createProject } from './lib/create-project.js'
 import { generateSecret } from './lib/generate-secret.js'
-import { initNext } from './lib/init-next.js'
+import { getNextAppDetails, initNext } from './lib/init-next.js'
 import { parseProjectName } from './lib/parse-project-name.js'
 import { parseTemplate } from './lib/parse-template.js'
 import { selectDb } from './lib/select-db.js'
 import { getValidTemplates, validateTemplate } from './lib/templates.js'
 import { writeEnvFile } from './lib/write-env-file.js'
 import { error, info } from './utils/log.js'
-import { feedbackOutro, helpMessage, successMessage, successfulNextInit } from './utils/messages.js'
+import {
+  feedbackOutro,
+  helpMessage,
+  moveMessage,
+  successMessage,
+  successfulNextInit,
+} from './utils/messages.js'
 
 export class Main {
   args: CliArgs
@@ -62,12 +69,6 @@ export class Main {
   }
 
   async init(): Promise<void> {
-    const initContext: {
-      nextConfigPath: string | undefined
-    } = {
-      nextConfigPath: undefined,
-    }
-
     try {
       if (this.args['--help']) {
         helpMessage()
@@ -77,15 +78,14 @@ export class Main {
       // eslint-disable-next-line no-console
       console.log('\n')
       p.intro(chalk.bgCyan(chalk.black(' create-payload-app ')))
-      p.log.message("Welcome to Payload. Let's create a project!")
-      // Detect if inside Next.js projeckpt
-      const nextConfigPath = (
-        await globby('next.config.*js', { absolute: true, cwd: process.cwd() })
-      )?.[0]
-      initContext.nextConfigPath = nextConfigPath
+      p.note("Welcome to Payload. Let's create a project!")
 
-      if (initContext.nextConfigPath) {
-        this.args['--name'] = slugify(path.basename(path.dirname(initContext.nextConfigPath)))
+      // Detect if inside Next.js project
+      const nextAppDetails = await getNextAppDetails(process.cwd())
+      const { hasTopLevelLayout, nextAppDir, nextConfigPath } = nextAppDetails
+
+      if (nextConfigPath) {
+        this.args['--name'] = slugify(path.basename(path.dirname(nextConfigPath)))
       }
 
       const projectName = await parseProjectName(this.args)
@@ -96,13 +96,23 @@ export class Main {
       const packageManager = await getPackageManager(this.args, projectDir)
 
       if (nextConfigPath) {
-        // p.note('Detected existing Next.js project.')
-        p.log.step(chalk.bold('Detected existing Next.js project.'))
+        p.log.step(
+          chalk.bold(`${chalk.bgBlack(` ${figures.triangleUp} Next.js `)} project detected!`),
+        )
+
         const proceed = await p.confirm({
           initialValue: true,
-          message: 'Install Payload in this project?',
+          message: chalk.bold(`Install ${chalk.green('Payload')} in this project?`),
         })
         if (p.isCancel(proceed) || !proceed) {
+          p.outro(feedbackOutro())
+          process.exit(0)
+        }
+
+        // Check for top-level layout.tsx
+        if (nextAppDir && hasTopLevelLayout) {
+          p.log.warn(moveMessage({ nextAppDir, projectDir }))
+          p.outro(feedbackOutro())
           process.exit(0)
         }
 
@@ -111,12 +121,13 @@ export class Main {
         const result = await initNext({
           ...this.args,
           dbType: dbDetails.type,
-          nextConfigPath,
+          nextAppDetails,
           packageManager,
           projectDir,
         })
 
         if (result.success === false) {
+          p.outro(feedbackOutro())
           process.exit(1)
         }
 
@@ -127,7 +138,14 @@ export class Main {
           },
         })
 
-        info('Payload project successfully created!')
+        await writeEnvFile({
+          cliArgs: this.args,
+          databaseUri: dbDetails.dbUri,
+          payloadSecret: generateSecret(),
+          projectDir,
+        })
+
+        info('Payload project successfully initialized!')
         p.note(successfulNextInit(), chalk.bgGreen(chalk.black(' Documentation ')))
         p.outro(feedbackOutro())
         return
@@ -146,6 +164,7 @@ export class Main {
       const template = await parseTemplate(this.args, validTemplates)
       if (!template) {
         p.log.error('Invalid template given')
+        p.outro(feedbackOutro())
         process.exit(1)
       }
 
diff --git a/packages/create-payload-app/src/utils/copy-recursive-sync.ts b/packages/create-payload-app/src/utils/copy-recursive-sync.ts
index 9acf09798..c2b4eda6a 100644
--- a/packages/create-payload-app/src/utils/copy-recursive-sync.ts
+++ b/packages/create-payload-app/src/utils/copy-recursive-sync.ts
@@ -7,7 +7,7 @@ import path from 'path'
 export function copyRecursiveSync(src: string, dest: string, debug?: boolean) {
   const exists = fs.existsSync(src)
   const stats = exists && fs.statSync(src)
-  const isDirectory = exists && stats.isDirectory()
+  const isDirectory = exists && stats !== false && stats.isDirectory()
   if (isDirectory) {
     fs.mkdirSync(dest, { recursive: true })
     fs.readdirSync(src).forEach((childItemName) => {
diff --git a/packages/create-payload-app/src/utils/messages.ts b/packages/create-payload-app/src/utils/messages.ts
index 9a4cd9890..3d5caa976 100644
--- a/packages/create-payload-app/src/utils/messages.ts
+++ b/packages/create-payload-app/src/utils/messages.ts
@@ -84,18 +84,18 @@ export function moveMessage(args: { nextAppDir: string; projectDir: string }): s
   return `
 ${header('Next Steps:')}
 
-Payload does not support a top-level layout.tsx file in your Next.js app directory.
+Payload does not support a top-level layout.tsx file in the app directory.
 
 ${chalk.bold('To continue:')}
 
-Move all files from ./${relativePath} to a named directory such as ${chalk.bold('(app)')}
+Move all files from ./${relativePath} to a named directory such as ./${relativePath}/${chalk.bold('(app)')}
 
 Once moved, rerun the create-payload-app command again.
 `
 }
 
 export function feedbackOutro(): string {
-  return `${chalk.bgCyan(chalk.black(' Have feedback? '))} Visit ${createTerminalLink('GitHub', 'https://github.com/payloadcms/payload')}`
+  return `${chalk.bgCyan(chalk.black(' Have feedback? '))} Visit us on ${createTerminalLink('GitHub', 'https://github.com/payloadcms/payload')}.`
 }
 
 // Create terminalLink with fallback for unsupported terminals
diff --git a/packages/create-payload-app/tsconfig.json b/packages/create-payload-app/tsconfig.json
index 4ae9b2f4d..271a35b89 100644
--- a/packages/create-payload-app/tsconfig.json
+++ b/packages/create-payload-app/tsconfig.json
@@ -5,7 +5,8 @@
     "noEmit": false /* Do not emit outputs. */,
     "emitDeclarationOnly": true,
     "outDir": "./dist" /* Specify an output folder for all emitted files. */,
-    "rootDir": "./src" /* Specify the root folder within your source files. */
+    "rootDir": "./src" /* Specify the root folder within your source files. */,
+    "strict": true,
   },
   "exclude": ["dist", "build", "tests", "test", "node_modules", ".eslintrc.js"],
   "include": ["src/**/*.ts", "src/**/*.spec.ts", "src/**/*.tsx", "src/**/*.d.ts", "src/**/*.json"]
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 5cc10d7b6..ad9981abd 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -326,8 +326,8 @@ importers:
         specifier: ^5.0.0
         version: 5.1.1
       figures:
-        specifier: ^3.2.0
-        version: 3.2.0
+        specifier: ^6.1.0
+        version: 6.1.0
       fs-extra:
         specifier: ^9.0.1
         version: 9.1.0
@@ -10041,6 +10041,14 @@ packages:
     engines: {node: '>=8'}
     dependencies:
       escape-string-regexp: 1.0.5
+    dev: true
+
+  /figures@6.1.0:
+    resolution: {integrity: sha512-d+l3qxjSesT4V7v2fh+QnmFnUWv9lSpjarhShNTgBOfA0ttejbQUAlHLitbjkoRiDulW0OPoQPYIGhIC8ohejg==}
+    engines: {node: '>=18'}
+    dependencies:
+      is-unicode-supported: 2.0.0
+    dev: false
 
   /file-entry-cache@6.0.1:
     resolution: {integrity: sha512-7Gps/XWymbLk2QLYK4NzpMOrYjMhdIxXuIvy2QBsLE6ljuodKvdkWs/cpyJJ3CVIVpH0Oi1Hvg1ovbMzLdFBBg==}
@@ -11409,7 +11417,6 @@ packages:
   /is-unicode-supported@2.0.0:
     resolution: {integrity: sha512-FRdAyx5lusK1iHG0TWpVtk9+1i+GjrzRffhDg4ovQ7mcidMQ6mj+MhKPmvh7Xwyv5gIS06ns49CA7Sqg7lC22Q==}
     engines: {node: '>=18'}
-    dev: true
 
   /is-weakmap@2.0.1:
     resolution: {integrity: sha512-NSBR4kH5oVj1Uwvv970ruUkCV7O1mzgVFO4/rev2cLRda9Tm9HrL70ZPut4rOHgY0FNrUu9BCbXA2sdQ+x0chA==}
diff --git a/test/create-payload-app/int.spec.ts b/test/create-payload-app/int.spec.ts
index c081b018e..25e3be9a8 100644
--- a/test/create-payload-app/int.spec.ts
+++ b/test/create-payload-app/int.spec.ts
@@ -4,6 +4,7 @@ import * as CommentJson from 'comment-json'
 import { initNext } from 'create-payload-app/commands'
 import execa from 'execa'
 import fs from 'fs'
+import fse from 'fs-extra'
 import path from 'path'
 import shelljs from 'shelljs'
 import tempy from 'tempy'
@@ -66,9 +67,8 @@ describe('create-payload-app', () => {
       const firstResult = await initNext({
         '--debug': true,
         projectDir,
-        nextConfigPath: path.resolve(projectDir, 'next.config.mjs'),
         dbType: 'mongodb',
-        useDistFiles: true, // create-payload-app/dist/app/(payload)
+        useDistFiles: true, // create-payload-app/dist/template
         packageManager: 'pnpm',
       })
 
@@ -91,7 +91,6 @@ describe('create-payload-app', () => {
       const result = await initNext({
         '--debug': true,
         projectDir,
-        nextConfigPath: path.resolve(projectDir, 'next.config.mjs'),
         dbType: 'mongodb',
         useDistFiles: true, // create-payload-app/dist/app/(payload)
         packageManager: 'pnpm',
@@ -117,11 +116,22 @@ describe('create-payload-app', () => {
       const userTsConfig = CommentJson.parse(userTsConfigContent) as {
         compilerOptions?: CompilerOptions
       }
+
+      // Check that `@payload-config` path is added to tsconfig
       expect(userTsConfig.compilerOptions.paths?.['@payload-config']).toStrictEqual([
         `./${result.isSrcDir ? 'src/' : ''}payload.config.ts`,
       ])
 
-      // TODO: Start the Next.js app and check if it runs
+      // Payload dependencies should be installed
+      const packageJson = fse.readJsonSync(path.resolve(projectDir, 'package.json')) as {
+        dependencies: Record<string, string>
+      }
+      expect(packageJson.dependencies).toMatchObject({
+        payload: expect.any(String),
+        '@payloadcms/db-mongodb': expect.any(String),
+        '@payloadcms/richtext-lexical': expect.any(String),
+        '@payloadcms/next': expect.any(String),
+      })
     })
   })
 })