diff --git a/pkg/git/client.go b/pkg/git/client.go
index 61b67a7f..97203f63 100644
--- a/pkg/git/client.go
+++ b/pkg/git/client.go
@@ -10,6 +10,7 @@ import (
 type Client interface {
 	Checkout(repo Repository, commit string) error
 	Clone(url, dst string) (*Repository, error)
+	OpenRepository(path string) (*Repository, error)
 }
 
 type ClientImpl struct{}
@@ -46,3 +47,11 @@ func (c *ClientImpl) Clone(url, dst string) (*Repository, error) {
 	}
 	return NewLocalRepository(dst)
 }
+
+func (c *ClientImpl) OpenRepository(path string) (*Repository, error) {
+	_, err := git.PlainOpen(path)
+	if err != nil {
+		return nil, fmt.Errorf("failed to open git repository at %s: %w", path, err)
+	}
+	return NewLocalRepository(path)
+}
diff --git a/pkg/git/mocks/mock_client.go b/pkg/git/mocks/mock_client.go
index 26c4106b..03863f1b 100644
--- a/pkg/git/mocks/mock_client.go
+++ b/pkg/git/mocks/mock_client.go
@@ -25,6 +25,12 @@ func (m *MockClient) Clone(url, dst string) (*git.Repository, error) {
 	return args.Get(0).(*git.Repository), args.Error(1)
 }
 
+// OpenRepository mocks the OpenRepository method of the Client interface
+func (m *MockClient) OpenRepository(path string) (*git.Repository, error) {
+	args := m.Called(path)
+	return args.Get(0).(*git.Repository), args.Error(1)
+}
+
 // NewMockClient creates and returns a new instance of MockClient
 func NewMockClient() *MockClient {
 	return new(MockClient)
diff --git a/pkg/git/repository.go b/pkg/git/repository.go
index 102d69be..3decbec9 100644
--- a/pkg/git/repository.go
+++ b/pkg/git/repository.go
@@ -29,3 +29,7 @@ func NewLocalRepository(path string) (*Repository, error) {
 	}
 	return &Repository{URL: *u}, nil
 }
+
+func (r Repository) IsLocal() bool {
+	return r.URL.Scheme == "file"
+}
diff --git a/pkg/lsp/mocks/mock_language_detector.go b/pkg/lsp/mocks/mock_language_detector.go
new file mode 100644
index 00000000..81626681
--- /dev/null
+++ b/pkg/lsp/mocks/mock_language_detector.go
@@ -0,0 +1,29 @@
+package mocks
+
+import (
+	"github.com/hide-org/hide/pkg/model"
+	"github.com/stretchr/testify/mock"
+)
+
+type MockLanguageDetector struct {
+	mock.Mock
+}
+
+func (m *MockLanguageDetector) DetectLanguage(file *model.File) string {
+	args := m.Called(file)
+	return args.String(0)
+}
+
+func (m *MockLanguageDetector) DetectMainLanguage(files []*model.File) string {
+	args := m.Called(files)
+	return args.String(0)
+}
+
+func (m *MockLanguageDetector) DetectLanguages(files []*model.File) map[string]int {
+	args := m.Called(files)
+	var result map[string]int
+	if r := args.Get(0); r != nil {
+		result = r.(map[string]int)
+	}
+	return result
+}
diff --git a/pkg/project/manager.go b/pkg/project/manager.go
index 52643421..03b30c8a 100644
--- a/pkg/project/manager.go
+++ b/pkg/project/manager.go
@@ -5,6 +5,7 @@ import (
 	"errors"
 	"fmt"
 	"io/fs"
+	"net/url"
 	"os"
 	"path"
 	"sync"
@@ -102,20 +103,44 @@ func NewProjectManager(
 func (pm ManagerImpl) CreateProject(ctx context.Context, request CreateProjectRequest) (*model.Project, error) {
 	log.Debug().Msgf("Creating project for repo %s", request.Repository.Url)
 
+	var (
+		r           *git.Repository
+		err         error
+		projectPath string
+	)
+
+	// Generate unique project ID
 	projectId := pm.randomString(10)
-	projectPath := path.Join(pm.projectsRoot, projectId)
 
-	// Clone git repo
-	if err := pm.createProjectDir(projectPath); err != nil {
-		log.Error().Err(err).Msg("Failed to create project directory")
-		return nil, fmt.Errorf("Failed to create project directory: %w", err)
+	repoUrl, err := url.Parse(request.Repository.Url)
+	if err != nil {
+		log.Error().Err(err).Msg("Failed to parse repository URL")
+		return nil, fmt.Errorf("Failed to parse repository URL: %w", err)
 	}
+	repo := git.NewRepository(*repoUrl)
 
-	r, err := pm.git.Clone(request.Repository.Url, projectPath)
-	if err != nil {
-		log.Error().Err(err).Msg("Failed to clone git repo")
-		removeProjectDir(projectPath)
-		return nil, fmt.Errorf("Failed to clone git repo: %w", err)
+	if repo.IsLocal() {
+		// For local repositories, use the existing directory
+		r, err = pm.git.OpenRepository(repo.URL.Path)
+		if err != nil {
+			log.Error().Err(err).Msg("Failed to open local git repo")
+			return nil, fmt.Errorf("Failed to open local git repo: %w", err)
+		}
+		projectPath = repo.URL.Path
+	} else {
+		// For remote repositories, create directory and clone
+		projectPath = path.Join(pm.projectsRoot, projectId)
+
+		if err := pm.createProjectDir(projectPath); err != nil {
+			log.Error().Err(err).Msg("Failed to create project directory")
+			return nil, fmt.Errorf("Failed to create project directory: %w", err)
+		}
+		r, err = pm.git.Clone(request.Repository.Url, projectPath)
+		if err != nil {
+			log.Error().Err(err).Msg("Failed to clone git repo")
+			removeProjectDir(projectPath)
+			return nil, fmt.Errorf("Failed to clone git repo: %w", err)
+		}
 	}
 
 	if request.Repository.Commit != nil {
@@ -126,30 +151,26 @@ func (pm ManagerImpl) CreateProject(ctx context.Context, request CreateProjectRe
 		}
 	}
 
-	// Start devcontainer
-	var devContainerConfig devcontainer.Config
-
-	if request.DevContainer != nil {
-		devContainerConfig = *request.DevContainer
-	} else {
+	// Configure devcontainer
+	devContainerConfig := request.DevContainer
+	if devContainerConfig == nil {
 		config, err := pm.configFromProject(os.DirFS(projectPath))
 		if err != nil {
 			log.Error().Err(err).Msgf("Failed to get devcontainer config from repository %s", request.Repository.Url)
 			removeProjectDir(projectPath)
 			return nil, fmt.Errorf("Failed to read devcontainer.json: %w", err)
 		}
-
-		devContainerConfig = config
+		devContainerConfig = &config
 	}
 
-	containerId, err := pm.devContainerRunner.Run(ctx, projectPath, devContainerConfig)
+	containerId, err := pm.devContainerRunner.Run(ctx, projectPath, *devContainerConfig)
 	if err != nil {
 		log.Error().Err(err).Msg("Failed to launch devcontainer")
 		removeProjectDir(projectPath)
 		return nil, fmt.Errorf("Failed to launch devcontainer: %w", err)
 	}
 
-	project := model.NewProject(projectId, projectPath, model.Config{DevContainerConfig: devContainerConfig}, containerId, request.Repository)
+	project := model.NewProject(projectId, projectPath, model.Config{DevContainerConfig: *devContainerConfig}, containerId, request.Repository)
 
 	languages := request.Languages
 	if len(languages) == 0 {