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/setup/suite.ts b/community-addon-template/tests/setup/suite.ts
deleted file mode 100644
index 962f3d776..000000000
--- a/community-addon-template/tests/setup/suite.ts
+++ /dev/null
@@ -1,173 +0,0 @@
-import fs from 'node:fs';
-import path from 'node:path';
-import { execSync } from 'node:child_process';
-import * as vitest from 'vitest';
-import { installAddon, type AddonMap, type OptionMap } from 'sv';
-import {
-	createProject,
-	startPreview,
-	addPnpmBuildDependencies,
-	type CreateProject,
-	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));
-
-type Fixtures = {
-	page: Page;
-	cwd(addonTestCase: AddonTestCase<any>): string;
-};
-
-type AddonTestCase<Addons extends AddonMap> = {
-	variant: ProjectVariant;
-	kind: { type: string; options: OptionMap<Addons> };
-};
-
-export function setupTest<Addons extends AddonMap>(
-	addons: Addons,
-	options?: {
-		kinds: Array<AddonTestCase<Addons>['kind']>;
-		filter?: (addonTestCase: AddonTestCase<Addons>) => boolean;
-		browser?: boolean;
-	}
-) {
-	const test = vitest.test.extend<Fixtures>({} as any);
-
-	const withBrowser = options?.browser ?? true;
-
-	let create: CreateProject;
-	let browser: Browser;
-
-	if (withBrowser) {
-		vitest.beforeAll(async () => {
-			browser = await chromium.launch();
-			return async () => {
-				await browser.close();
-			};
-		});
-	}
-
-	const addonTestCases: 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);
-			}
-		}
-	}
-	let testName: string;
-	vitest.beforeAll(async ({ name }) => {
-		testName = path.dirname(name).split('/').at(-1)!;
-
-		// constructs a builder for 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 { variant, kind } of addonTestCases) {
-			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');
-
-			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<Fixtures>(async (ctx) => {
-		let browserCtx: BrowserContext;
-		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, addonTestCases, prepareServer };
-}
-
-type PrepareServerOptions = {
-	cwd: string;
-	page: Page;
-	buildCommand?: string;
-	previewCommand?: string;
-};
-// installs dependencies, builds the project, and spins up the preview server
-async function prepareServer({
-	cwd,
-	page,
-	buildCommand = 'pnpm build',
-	previewCommand = 'pnpm preview'
-}: PrepareServerOptions) {
-	// 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 };
-}
-
-/**
- * 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/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/packages/sv/lib/cli/add/index.ts b/packages/sv/lib/cli/add/index.ts
index 84ce81469..0d10c3de5 100644
--- a/packages/sv/lib/cli/add/index.ts
+++ b/packages/sv/lib/cli/add/index.ts
@@ -62,7 +62,8 @@ export const add = new Command('add')
 	.option('--no-git-check', 'even if some files are dirty, no prompt will be shown')
 	.option('--no-install', 'skip installing dependencies')
 	.addOption(installOption)
-	//.option('--community [add-on...]', 'community addons to install')
+	// TODO JYC: remove the flag
+	.option('--community [add-on...]', 'community addons to install')
 	.configureHelp({
 		...common.helpConfig,
 		formatHelp(cmd, helper) {
@@ -580,7 +581,7 @@ export async function runAddonsApply({
 		workspace,
 		addonSetupResults,
 		addons: addonMap,
-		options: answersOfficial
+		options: { ...answersOfficial, ...answersCommunity }
 	});
 
 	const addonSuccess: string[] = [];
@@ -847,11 +848,12 @@ 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);
-		}
+		// TODO JYC: remove for testing for now
+		// 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)));
diff --git a/packages/sv/lib/cli/create.ts b/packages/sv/lib/cli/create.ts
index e02d2eeb6..d7a305959 100644
--- a/packages/sv/lib/cli/create.ts
+++ b/packages/sv/lib/cli/create.ts
@@ -186,8 +186,9 @@ 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',
@@ -218,10 +219,10 @@ async function createProject(cwd: ProjectPath, options: Options) {
 	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>>(
 			(acc, curr) => {
@@ -251,7 +252,7 @@ async function createProject(cwd: ProjectPath, options: Options) {
 	createKit(projectPath, {
 		name: projectName,
 		template,
-		types: language
+		types: language as LanguageType
 	});
 
 	if (options.fromPlayground) {
@@ -263,7 +264,7 @@ 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,
diff --git a/packages/sv/lib/cli/tests/cli.ts b/packages/sv/lib/cli/tests/cli.ts
index f7088f7b8..2df4e9be9 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: 'create-addon',
+			template: 'addon',
+			args: ['--no-add-ons']
 		}
 	];
 
 	it.for(testCases)(
 		'should create a new project with name $projectName',
-		{ timeout: 10_000 },
+		{ timeout: 20_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 +109,22 @@ describe('cli', () => {
 					`file "${relativeFile}" does not match snapshot`
 				);
 			}
+
+			if (template === 'addon') {
+				const cmds = [
+					// list of cmds to test
+					['i'],
+					['run', 'demo-create'],
+					['run', 'demo-add'],
+					['run', 'test']
+				];
+				for (const cmd of cmds) {
+					const res = await exec('npm', cmd, {
+						nodeOptions: { stdio: 'pipe', cwd: testOutputPath }
+					});
+					expect(res.exitCode, `Error with cmd: '${cmd}' -> ${res.stderr}`).toBe(0);
+				}
+			}
 		}
 	);
 });
diff --git a/packages/sv/lib/cli/tests/snapshots/create-addon/.gitignore b/packages/sv/lib/cli/tests/snapshots/create-addon/.gitignore
new file mode 100644
index 000000000..ace55725e
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-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/community-addon-template/README.md b/packages/sv/lib/cli/tests/snapshots/create-addon/README.md
similarity index 60%
rename from community-addon-template/README.md
rename to packages/sv/lib/cli/tests/snapshots/create-addon/README.md
index 20f69acae..e885e18c3 100644
--- a/community-addon-template/README.md
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/README.md
@@ -1,21 +1,14 @@
-# community-addon-template
+# sv community addon: create-addon
 
 > [!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:create-addon
 ```
 
-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/create-addon/jsconfig.json
similarity index 100%
rename from community-addon-template/jsconfig.json
rename to packages/sv/lib/cli/tests/snapshots/create-addon/jsconfig.json
diff --git a/community-addon-template/package.json b/packages/sv/lib/cli/tests/snapshots/create-addon/package.json
similarity index 60%
rename from community-addon-template/package.json
rename to packages/sv/lib/cli/tests/snapshots/create-addon/package.json
index 349963fe4..fc4c08c0e 100644
--- a/community-addon-template/package.json
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/package.json
@@ -1,12 +1,11 @@
 {
-	"name": "community-addon-template",
-	"private": true,
+	"name": "create-addon",
 	"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 --types ts --template minimal --no-add-ons --no-install",
+		"demo-add": "sv add -C demo --community file:../ --no-git-check --no-install",
 		"test": "vitest run"
 	},
 	"files": [
@@ -15,7 +14,7 @@
 	],
 	"exports": "./src/index.js",
 	"dependencies": {
-		"sv": "workspace:*"
+		"sv": "file:../../packages/sv"
 	},
 	"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/create-addon/src/index.js b/packages/sv/lib/cli/tests/snapshots/create-addon/src/index.js
new file mode 100644
index 000000000..f336c8a15
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/src/index.js
@@ -0,0 +1,48 @@
+import { js, parseSvelte, defineAddon, defineAddonOptions, svelte } 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: 'create-addon',
+	options,
+	setup: ({ kit, unsupported }) => {
+		if (!kit) unsupported('Requires SvelteKit');
+	},
+	run: ({ sv, options, typescript }) => {
+		sv.file(`src/lib/create-addon/addon-template-demo.txt`, (content) => {
+			// if (!options.demo) return content;
+			return `This is a text file made by the Community Addon Template demo! with your add-on: create-addon!`;
+		});
+
+		sv.file(`src/lib/create-addon/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();
+		});
+
+		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, {
+				from: `$lib/create-addon/DemoComponent.svelte`,
+				as: 'DemoComponent'
+			});
+
+			ast.fragment.nodes.push(...svelte.toFragment('<DemoComponent />'));
+
+			return generateCode();
+		});
+	}
+});
diff --git a/packages/sv/lib/cli/tests/snapshots/create-addon/svelte.config.js b/packages/sv/lib/cli/tests/snapshots/create-addon/svelte.config.js
new file mode 100644
index 000000000..10c4eeb27
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/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/create-addon/tests/custom-addon.test.js b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/custom-addon.test.js
new file mode 100644
index 000000000..6fa77191b
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/custom-addon.test.js
@@ -0,0 +1,28 @@
+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, variants, prepareServer } = setupTest({ [id]: addon });
+
+test.concurrent.for(variants)('demo - %s', async (variant, { page, ...ctx }) => {
+	const cwd = await ctx.run(variant, { [id]: { demo: true } });
+
+	// ...add files
+	if (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/packages/sv/lib/cli/tests/snapshots/create-addon/tests/custom-addon.test.ts b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/custom-addon.test.ts
new file mode 100644
index 000000000..6fa77191b
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/custom-addon.test.ts
@@ -0,0 +1,28 @@
+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, variants, prepareServer } = setupTest({ [id]: addon });
+
+test.concurrent.for(variants)('demo - %s', async (variant, { page, ...ctx }) => {
+	const cwd = await ctx.run(variant, { [id]: { demo: true } });
+
+	// ...add files
+	if (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/packages/sv/lib/cli/tests/snapshots/create-addon/tests/fixtures/+page.svelte
similarity index 100%
rename from community-addon-template/tests/fixtures/+page.svelte
rename to packages/sv/lib/cli/tests/snapshots/create-addon/tests/fixtures/+page.svelte
diff --git a/community-addon-template/tests/fixtures/App.svelte b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/fixtures/App.svelte
similarity index 100%
rename from community-addon-template/tests/fixtures/App.svelte
rename to packages/sv/lib/cli/tests/snapshots/create-addon/tests/fixtures/App.svelte
diff --git a/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.js b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.js
new file mode 100644
index 000000000..1c6f4ed94
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.js
@@ -0,0 +1,20 @@
+import { fileURLToPath } from 'node:url';
+import { setup } from 'sv/testing';
+
+const variants = ['kit-js', 'kit-ts', 'vite-js', 'vite-ts'];
+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/community-addon-template/tests/setup/global.ts b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.ts
similarity index 100%
rename from community-addon-template/tests/setup/global.ts
rename to packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.ts
index a9cbb495c..31b2ed100 100644
--- a/community-addon-template/tests/setup/global.ts
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/global.ts
@@ -2,8 +2,8 @@ import { fileURLToPath } from 'node:url';
 import { setup, 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'];
+const TEST_DIR = fileURLToPath(new URL('../../.test-output/', import.meta.url));
 
 export default async function ({ provide }: TestProject) {
 	// global setup (e.g. spin up docker containers)
diff --git a/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/suite.js b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/suite.js
new file mode 100644
index 000000000..9f7daaa72
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/suite.js
@@ -0,0 +1,118 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { execSync } from 'node:child_process';
+import * as vitest from 'vitest';
+import { installAddon } from 'sv';
+import { addPnpmBuildDependencies, createProject, startPreview } from 'sv/testing';
+import { chromium } 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 function setupTest(addons) {
+	let create;
+	let browser;
+
+	const test = vitest.test.extend({});
+
+	vitest.beforeAll(async () => {
+		browser = await chromium.launch();
+		return async () => {
+			await browser.close();
+		};
+	});
+
+	vitest.beforeAll(({ name }) => {
+		const testName = path.parse(name).name.replace('.test', '');
+
+		// constructs a builder for 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
+			})
+		);
+	});
+
+	// runs before each test case
+	vitest.beforeEach(async (ctx) => {
+		const browserCtx = await browser.newContext();
+		ctx.page = await browserCtx.newPage();
+		ctx.run = async (variant, options) => {
+			const cwd = create({ testId: ctx.task.id, variant });
+
+			// test metadata
+			const metaPath = path.resolve(cwd, 'meta.json');
+			fs.writeFileSync(metaPath, JSON.stringify({ variant, options }, null, '\t'), 'utf8');
+
+			// run addon
+			const { pnpmBuildDependencies } = await installAddon({
+				cwd,
+				addons,
+				options,
+				packageManager: 'pnpm'
+			});
+			addPnpmBuildDependencies(cwd, 'pnpm', ['esbuild', ...pnpmBuildDependencies]);
+
+			return cwd;
+		};
+
+		return async () => {
+			await browserCtx.close();
+			// ...other tear downs
+		};
+	});
+
+	return {
+		test,
+		variants,
+		prepareServer
+	};
+}
+
+/**
+ * Installs dependencies, builds the project, and spins up the preview server
+ */
+async function prepareServer({ cwd, page }) {
+	// install deps
+	execSync('pnpm install --no-frozen-lockfile', { cwd, stdio: 'pipe' });
+
+	// ...do commands and any other extra stuff
+
+	// build project
+	execSync('npm run build', { cwd, stdio: 'pipe' });
+
+	// start preview server `vite preview`
+	const { url, close } = await startPreview({ cwd });
+
+	// navigate to the page
+	await page.goto(url);
+
+	return { url, close };
+}
+
+/**
+ * Applies a fixture to the target path
+ */
+export function fixture({ name, target }) {
+	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/cli/tests/snapshots/create-addon/tests/setup/suite.ts b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/suite.ts
new file mode 100644
index 000000000..3b7c04138
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tests/setup/suite.ts
@@ -0,0 +1,129 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { execSync } from 'node:child_process';
+import * as vitest from 'vitest';
+import { installAddon, type AddonMap, type OptionMap } from 'sv';
+import {
+	addPnpmBuildDependencies,
+	createProject,
+	startPreview,
+	type CreateProject,
+	type ProjectVariant
+} from 'sv/testing';
+import { chromium, type Browser, 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));
+
+type Fixtures<Addons extends AddonMap> = {
+	page: Page;
+	run(variant: ProjectVariant, options: OptionMap<Addons>): Promise<string>;
+};
+
+export function setupTest<Addons extends AddonMap>(addons: Addons) {
+	let create: CreateProject;
+	let browser: Browser;
+
+	const test = vitest.test.extend<Fixtures<Addons>>({} as any);
+
+	vitest.beforeAll(async () => {
+		browser = await chromium.launch();
+		return async () => {
+			await browser.close();
+		};
+	});
+
+	vitest.beforeAll(({ name }) => {
+		const testName = path.parse(name).name.replace('.test', '');
+
+		// constructs a builder for 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
+			})
+		);
+	});
+
+	// runs before each test case
+	vitest.beforeEach<Fixtures<Addons>>(async (ctx) => {
+		const browserCtx = await browser.newContext();
+		ctx.page = await browserCtx.newPage();
+		ctx.run = async (variant, options) => {
+			const cwd = create({ testId: ctx.task.id, variant });
+
+			// test metadata
+			const metaPath = path.resolve(cwd, 'meta.json');
+			fs.writeFileSync(metaPath, JSON.stringify({ variant, options }, null, '\t'), 'utf8');
+
+			// run addon
+			const { pnpmBuildDependencies } = await installAddon({
+				cwd,
+				addons,
+				options,
+				packageManager: 'pnpm'
+			});
+			addPnpmBuildDependencies(cwd, 'pnpm', ['esbuild', ...pnpmBuildDependencies]);
+
+			return cwd;
+		};
+
+		return async () => {
+			await browserCtx.close();
+			// ...other tear downs
+		};
+	});
+
+	return {
+		test,
+		variants,
+		prepareServer
+	};
+}
+
+/**
+ * Installs dependencies, builds the project, and spins up the preview server
+ */
+async function prepareServer({ cwd, page }: { cwd: string; page: Page }) {
+	// install deps
+	execSync('pnpm install --no-frozen-lockfile', { cwd, stdio: 'pipe' });
+
+	// ...do commands and any other extra stuff
+
+	// build project
+	execSync('npm run build', { cwd, stdio: 'pipe' });
+
+	// start preview server `vite preview`
+	const { url, close } = await startPreview({ cwd });
+
+	// navigate to the page
+	await page.goto(url);
+
+	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/cli/tests/snapshots/create-addon/tsconfig.json b/packages/sv/lib/cli/tests/snapshots/create-addon/tsconfig.json
new file mode 100644
index 000000000..2c2ed3c4d
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/tsconfig.json
@@ -0,0 +1,20 @@
+{
+	"extends": "./.svelte-kit/tsconfig.json",
+	"compilerOptions": {
+		"rewriteRelativeImportExtensions": true,
+		"allowJs": true,
+		"checkJs": true,
+		"esModuleInterop": true,
+		"forceConsistentCasingInFileNames": true,
+		"resolveJsonModule": true,
+		"skipLibCheck": true,
+		"sourceMap": true,
+		"strict": true,
+		"moduleResolution": "bundler"
+	}
+	// Path aliases are handled by https://svelte.dev/docs/kit/configuration#alias
+	// except $lib which is handled by https://svelte.dev/docs/kit/configuration#files
+	//
+	// To make changes to top-level options such as include and exclude, we recommend extending
+	// the generated config; see https://svelte.dev/docs/kit/configuration#typescript
+}
diff --git a/packages/sv/lib/cli/tests/snapshots/create-addon/vite.config.js b/packages/sv/lib/cli/tests/snapshots/create-addon/vite.config.js
new file mode 100644
index 000000000..bbf8c7da4
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/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/packages/sv/lib/cli/tests/snapshots/create-addon/vite.config.ts b/packages/sv/lib/cli/tests/snapshots/create-addon/vite.config.ts
new file mode 100644
index 000000000..bbf8c7da4
--- /dev/null
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/vite.config.ts
@@ -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/create-addon/vitest.config.js
similarity index 79%
rename from community-addon-template/vitest.config.js
rename to packages/sv/lib/cli/tests/snapshots/create-addon/vitest.config.js
index 5fd114c7c..febf92485 100644
--- a/community-addon-template/vitest.config.js
+++ b/packages/sv/lib/cli/tests/snapshots/create-addon/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/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..39e134995 100644
--- a/packages/sv/lib/create/scripts/build-templates.js
+++ b/packages/sv/lib/create/scripts/build-templates.js
@@ -98,6 +98,13 @@ async function generate_templates(dist, shared) {
 				let contents = fs.readFileSync(path.join(cwd, name), 'utf8');
 				// TODO package-specific versions
 				contents = contents.replace(/workspace:\*/g, 'next');
+
+				// TODO JYC (maybe could be a dev mode and prod mode ?)
+				const pkg = JSON.parse(contents);
+				if (pkg.dependencies && pkg.dependencies['sv'])
+					pkg.dependencies['sv'] = 'file:../../packages/sv';
+				contents = JSON.stringify(pkg, null, '\t');
+
 				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..a6cc8269e
--- /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 --types ts --template minimal --no-add-ons --no-install",
+		"demo-add": "sv add -C demo --community file:../ --no-git-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..a8df619ae
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/src/index.js
@@ -0,0 +1,48 @@
+import { js, parseSvelte, defineAddon, defineAddonOptions, svelte } 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: '~SV-NAME-TODO~',
+	options,
+	setup: ({ kit, unsupported }) => {
+		if (!kit) unsupported('Requires SvelteKit');
+	},
+	run: ({ sv, options, typescript }) => {
+		sv.file(`src/lib/~SV-NAME-TODO~/addon-template-demo.txt`, (content) => {
+			// if (!options.demo) return content;
+			return `This is a text file made by the Community Addon Template demo! with your add-on: ~SV-NAME-TODO~!`;
+		});
+
+		sv.file(`src/lib/~SV-NAME-TODO~/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();
+		});
+
+		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, {
+				from: `$lib/~SV-NAME-TODO~/DemoComponent.svelte`,
+				as: 'DemoComponent'
+			});
+
+			ast.fragment.nodes.push(...svelte.toFragment('<DemoComponent />'));
+
+			return generateCode();
+		});
+	}
+});
diff --git a/packages/sv/lib/create/templates/addon/tests/custom-addon.test.ts b/packages/sv/lib/create/templates/addon/tests/custom-addon.test.ts
new file mode 100644
index 000000000..6fa77191b
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/custom-addon.test.ts
@@ -0,0 +1,28 @@
+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, variants, prepareServer } = setupTest({ [id]: addon });
+
+test.concurrent.for(variants)('demo - %s', async (variant, { page, ...ctx }) => {
+	const cwd = await ctx.run(variant, { [id]: { demo: true } });
+
+	// ...add files
+	if (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/packages/sv/lib/create/templates/addon/tests/fixtures/+page.svelte b/packages/sv/lib/create/templates/addon/tests/fixtures/+page.svelte
new file mode 100644
index 000000000..59a30f613
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/fixtures/+page.svelte
@@ -0,0 +1,5 @@
+<script>
+	import demo from '../../addon-template-demo.txt?raw';
+</script>
+
+<span data-testid="demo">{demo}</span>
diff --git a/packages/sv/lib/create/templates/addon/tests/fixtures/App.svelte b/packages/sv/lib/create/templates/addon/tests/fixtures/App.svelte
new file mode 100644
index 000000000..13271b83e
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/fixtures/App.svelte
@@ -0,0 +1,5 @@
+<script>
+	import demo from '../addon-template-demo.txt?raw';
+</script>
+
+<span data-testid="demo">{demo}</span>
diff --git a/packages/sv/lib/create/templates/addon/tests/setup/global.ts b/packages/sv/lib/create/templates/addon/tests/setup/global.ts
new file mode 100644
index 000000000..31b2ed100
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/setup/global.ts
@@ -0,0 +1,29 @@
+import { fileURLToPath } from 'node:url';
+import { setup, type ProjectVariant } from 'sv/testing';
+import type { TestProject } from 'vitest/node';
+
+const variants: ProjectVariant[] = ['kit-js', 'kit-ts', 'vite-js', 'vite-ts'];
+const TEST_DIR = fileURLToPath(new URL('../../.test-output/', import.meta.url));
+
+export default async function ({ provide }: TestProject) {
+	// 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)
+	};
+}
+
+declare module 'vitest' {
+	export interface ProvidedContext {
+		testDir: string;
+		templatesDir: string;
+		variants: ProjectVariant[];
+	}
+}
diff --git a/packages/sv/lib/create/templates/addon/tests/setup/suite.ts b/packages/sv/lib/create/templates/addon/tests/setup/suite.ts
new file mode 100644
index 000000000..3b7c04138
--- /dev/null
+++ b/packages/sv/lib/create/templates/addon/tests/setup/suite.ts
@@ -0,0 +1,129 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { execSync } from 'node:child_process';
+import * as vitest from 'vitest';
+import { installAddon, type AddonMap, type OptionMap } from 'sv';
+import {
+	addPnpmBuildDependencies,
+	createProject,
+	startPreview,
+	type CreateProject,
+	type ProjectVariant
+} from 'sv/testing';
+import { chromium, type Browser, 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));
+
+type Fixtures<Addons extends AddonMap> = {
+	page: Page;
+	run(variant: ProjectVariant, options: OptionMap<Addons>): Promise<string>;
+};
+
+export function setupTest<Addons extends AddonMap>(addons: Addons) {
+	let create: CreateProject;
+	let browser: Browser;
+
+	const test = vitest.test.extend<Fixtures<Addons>>({} as any);
+
+	vitest.beforeAll(async () => {
+		browser = await chromium.launch();
+		return async () => {
+			await browser.close();
+		};
+	});
+
+	vitest.beforeAll(({ name }) => {
+		const testName = path.parse(name).name.replace('.test', '');
+
+		// constructs a builder for 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
+			})
+		);
+	});
+
+	// runs before each test case
+	vitest.beforeEach<Fixtures<Addons>>(async (ctx) => {
+		const browserCtx = await browser.newContext();
+		ctx.page = await browserCtx.newPage();
+		ctx.run = async (variant, options) => {
+			const cwd = create({ testId: ctx.task.id, variant });
+
+			// test metadata
+			const metaPath = path.resolve(cwd, 'meta.json');
+			fs.writeFileSync(metaPath, JSON.stringify({ variant, options }, null, '\t'), 'utf8');
+
+			// run addon
+			const { pnpmBuildDependencies } = await installAddon({
+				cwd,
+				addons,
+				options,
+				packageManager: 'pnpm'
+			});
+			addPnpmBuildDependencies(cwd, 'pnpm', ['esbuild', ...pnpmBuildDependencies]);
+
+			return cwd;
+		};
+
+		return async () => {
+			await browserCtx.close();
+			// ...other tear downs
+		};
+	});
+
+	return {
+		test,
+		variants,
+		prepareServer
+	};
+}
+
+/**
+ * Installs dependencies, builds the project, and spins up the preview server
+ */
+async function prepareServer({ cwd, page }: { cwd: string; page: Page }) {
+	// install deps
+	execSync('pnpm install --no-frozen-lockfile', { cwd, stdio: 'pipe' });
+
+	// ...do commands and any other extra stuff
+
+	// build project
+	execSync('npm run build', { cwd, stdio: 'pipe' });
+
+	// start preview server `vite preview`
+	const { url, close } = await startPreview({ cwd });
+
+	// navigate to the page
+	await page.goto(url);
+
+	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/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/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'
 		]
 	}
 });