diff --git a/bin/index.js b/bin/index.js
index b0f9c1d..6fc5ebf 100755
--- a/bin/index.js
+++ b/bin/index.js
@@ -161,7 +161,7 @@ async function init() {
     {
       type: 'password',
       name: 'seedPhrase',
-      message: 'Enter your Farcaster custody account seed phrase to generate a signed manifest for your frame\n(optional -- leave blank to create an unsigned frame)\n(seed phrase is only ever stored locally)\n\nSeed phrase:',
+      message: 'Enter your Farcaster custody account seed phrase to generate a signed manifest for your frame\n(optional -- leave blank to create an unsigned frame)\n(seed phrase is only ever stored in .env.local)\n\nSeed phrase:',
       default: null
     }
   ]);
@@ -301,12 +301,12 @@ async function init() {
   // Handle .env file
   console.log('\nSetting up environment variables...');
   const envExamplePath = path.join(projectPath, '.env.example');
-  const envPath = path.join(projectPath, '.env');
+  const envLocalPath = path.join(projectPath, '.env.local');
   if (fs.existsSync(envExamplePath)) {
     // Read the example file content
     const envExampleContent = fs.readFileSync(envExamplePath, 'utf8');
-    // Write it to .env
-    fs.writeFileSync(envPath, envExampleContent);
+    // Write it to .env.local
+    fs.writeFileSync(envLocalPath, envExampleContent);
     
     // Generate custody address from seed phrase
     if (answers.seedPhrase) {
@@ -318,27 +318,32 @@ async function init() {
       const neynarApiKey = answers.useNeynar ? answers.neynarApiKey : 'FARCASTER_V2_FRAMES_DEMO';
       const fid = await lookupFidByCustodyAddress(custodyAddress, neynarApiKey);
 
-      // Write seed phrase and FID to .env for manifest signature generation
-      fs.appendFileSync(envPath, `\nSEED_PHRASE="${answers.seedPhrase}"`);
-      fs.appendFileSync(envPath, `\nFID="${fid}"`);
+      // Write seed phrase and FID to .env.local for manifest signature generation
+      fs.appendFileSync(envLocalPath, `\nSEED_PHRASE="${answers.seedPhrase}"`);
+      fs.appendFileSync(envLocalPath, `\nFID="${fid}"`);
     }
 
     if (answers.splashImageUrl) {
-      fs.appendFileSync(envPath, `\nNEXT_PUBLIC_FRAME_SPLASH_IMAGE_URL="${answers.splashImageUrl}"`);
+      fs.appendFileSync(envLocalPath, `\nNEXT_PUBLIC_FRAME_SPLASH_IMAGE_URL="${answers.splashImageUrl}"`);
     }
 
     if (answers.iconImageUrl) {
-      fs.appendFileSync(envPath, `\nNEXT_PUBLIC_FRAME_ICON_IMAGE_URL="${answers.iconImageUrl}"`);
+      fs.appendFileSync(envLocalPath, `\nNEXT_PUBLIC_FRAME_ICON_IMAGE_URL="${answers.iconImageUrl}"`);
     }
 
     // Append all remaining environment variables
-    fs.appendFileSync(envPath, `\nNEXT_PUBLIC_FRAME_NAME="${answers.projectName}"`);
-    fs.appendFileSync(envPath, `\nNEXT_PUBLIC_FRAME_DESCRIPTION="${answers.description}"`);
-    fs.appendFileSync(envPath, `\nNEXT_PUBLIC_FRAME_BUTTON_TEXT="${answers.buttonText}"`);
-    fs.appendFileSync(envPath, `\nNEYNAR_API_KEY="${answers.useNeynar ? answers.neynarApiKey : 'FARCASTER_V2_FRAMES_DEMO'}"`);
+    fs.appendFileSync(envLocalPath, `\nNEXT_PUBLIC_FRAME_NAME="${answers.projectName}"`);
+    fs.appendFileSync(envLocalPath, `\nNEXT_PUBLIC_FRAME_DESCRIPTION="${answers.description}"`);
+    fs.appendFileSync(envLocalPath, `\nNEXT_PUBLIC_FRAME_BUTTON_TEXT="${answers.buttonText}"`);
+    fs.appendFileSync(envLocalPath, `\nNEYNAR_API_KEY="${answers.useNeynar ? answers.neynarApiKey : 'FARCASTER_V2_FRAMES_DEMO'}"`);
     
     fs.unlinkSync(envExamplePath);
-    console.log('\nCreated .env file from .env.example');
+    console.log('\nCreated .env.local file from .env.example');
+
+    // Add .env.local to .gitignore
+    const gitignorePath = path.join(projectPath, '.gitignore');
+    fs.appendFileSync(gitignorePath, '\n\n# Local environment variables\n.env.local\n.env.local.*');
+    console.log('Added .env.local to .gitignore');
   } else {
     console.log('\n.env.example does not exist, skipping copy and remove operations');
   }