diff --git a/.changeset/dull-toys-yawn.md b/.changeset/dull-toys-yawn.md
new file mode 100644
index 0000000..d554c65
--- /dev/null
+++ b/.changeset/dull-toys-yawn.md
@@ -0,0 +1,5 @@
+---
+"create-better-t-stack": patch
+---
+
+refactor(cli): improve Turso database setup workflow
diff --git a/apps/cli/src/helpers/db-setup.ts b/apps/cli/src/helpers/db-setup.ts
index f8908ba..1d8ae4c 100644
--- a/apps/cli/src/helpers/db-setup.ts
+++ b/apps/cli/src/helpers/db-setup.ts
@@ -7,6 +7,11 @@ import ora, { type Ora } from "ora";
 import { logger } from "../utils/logger";
 import { isTursoInstalled, isTursoLoggedIn } from "../utils/turso-cli";
 
+interface TursoConfig {
+	dbUrl: string;
+	authToken: string;
+}
+
 async function loginToTurso(spinner: Ora) {
 	try {
 		spinner.start("Logging in to Turso...");
@@ -25,74 +30,74 @@ async function installTursoCLI(isMac: boolean, spinner: Ora) {
 		if (isMac) {
 			await execa("brew", ["install", "tursodatabase/tap/turso"]);
 		} else {
-			const installScript = await execa("curl", [
+			const { stdout: installScript } = await execa("curl", [
 				"-sSfL",
 				"https://get.tur.so/install.sh",
 			]);
-			await execa("bash", [], { input: installScript.stdout });
+			await execa("bash", [], { input: installScript });
 		}
 
 		spinner.succeed("Turso CLI installed successfully!");
 	} catch (error) {
 		if (error instanceof Error && error.message.includes("User force closed")) {
 			spinner.stop();
-			console.log("\n");
-			logger.warn("Turso CLI installation cancelled by user");
-			throw error;
+			logger.warn("\nTurso CLI installation cancelled by user");
+			throw new Error("Installation cancelled");
 		}
 		spinner.fail("Failed to install Turso CLI");
 		throw error;
 	}
 }
 
-async function createTursoDatabase(projectDir: string, spinner: Ora) {
+async function createTursoDatabase(dbName: string): Promise<TursoConfig> {
 	try {
-		const defaultDbName = path.basename(projectDir);
-		const dbName = await input({
-			message: `Enter database name (default: ${defaultDbName}):`,
-			default: defaultDbName,
-		});
-
-		spinner.start(`Creating Turso database "${dbName}"...`);
 		await execa("turso", ["db", "create", dbName]);
-
-		const { stdout: dbUrl } = await execa("turso", [
-			"db",
-			"show",
-			dbName,
-			"--url",
-		]);
-		const { stdout: authToken } = await execa("turso", [
-			"db",
-			"tokens",
-			"create",
-			dbName,
-		]);
-
-		const envPath = path.join(projectDir, "packages/server", ".env");
-		const envContent = `TURSO_DATABASE_URL="${dbUrl.trim()}"
-TURSO_AUTH_TOKEN="${authToken.trim()}"`;
-
-		await fs.writeFile(envPath, envContent);
-		spinner.succeed("Turso database configured successfully!");
 	} catch (error) {
-		spinner.fail("Failed to create Turso database");
+		if (error instanceof Error && error.message.includes("already exists")) {
+			throw new Error("DATABASE_EXISTS");
+		}
 		throw error;
 	}
+
+	const { stdout: dbUrl } = await execa("turso", [
+		"db",
+		"show",
+		dbName,
+		"--url",
+	]);
+
+	const { stdout: authToken } = await execa("turso", [
+		"db",
+		"tokens",
+		"create",
+		dbName,
+	]);
+
+	return {
+		dbUrl: dbUrl.trim(),
+		authToken: authToken.trim(),
+	};
 }
 
-async function setupManualConfig(projectDir: string) {
+async function writeEnvFile(projectDir: string, config?: TursoConfig) {
 	const envPath = path.join(projectDir, "packages/server", ".env");
-	const envContent = `TURSO_DATABASE_URL=
+	const envContent = config
+		? `TURSO_DATABASE_URL="${config.dbUrl}"
+TURSO_AUTH_TOKEN="${config.authToken}"`
+		: `TURSO_DATABASE_URL=
 TURSO_AUTH_TOKEN=`;
 
 	await fs.writeFile(envPath, envContent);
+}
 
+function displayManualSetupInstructions() {
 	logger.info("\n📝 Manual Turso Setup Instructions:");
 	logger.info("1. Visit https://turso.tech and create an account");
 	logger.info("2. Create a new database from the dashboard");
 	logger.info("3. Get your database URL and authentication token");
-	logger.info("4. Add these credentials to the .env file in your project root");
+	logger.info(
+		"4. Add these credentials to the .env file in packages/server/.env",
+	);
 	logger.info("\nThe .env file has been created with placeholder variables:");
 	logger.info("TURSO_DATABASE_URL=your_database_url");
 	logger.info("TURSO_AUTH_TOKEN=your_auth_token");
@@ -105,7 +110,8 @@ export async function setupTurso(projectDir: string) {
 	const canInstallCLI = platform !== "win32";
 
 	if (!canInstallCLI) {
-		await setupManualConfig(projectDir);
+		await writeEnvFile(projectDir);
+		displayManualSetupInstructions();
 		return;
 	}
 
@@ -119,7 +125,8 @@ export async function setupTurso(projectDir: string) {
 			});
 
 			if (!shouldInstall) {
-				await setupManualConfig(projectDir);
+				await writeEnvFile(projectDir);
+				displayManualSetupInstructions();
 				return;
 			}
 
@@ -131,9 +138,35 @@ export async function setupTurso(projectDir: string) {
 			await loginToTurso(spinner);
 		}
 
-		await createTursoDatabase(projectDir, spinner);
+		const defaultDbName = path.basename(projectDir);
+		let dbName = await input({
+			message: `Enter database name (default: ${defaultDbName}):`,
+			default: defaultDbName,
+		});
+
+		let success = false;
+		while (!success) {
+			try {
+				spinner.start(`Creating Turso database "${dbName}"...`);
+				const config = await createTursoDatabase(dbName);
+				await writeEnvFile(projectDir, config);
+				spinner.succeed("Turso database configured successfully!");
+				success = true;
+			} catch (error) {
+				if (error instanceof Error && error.message === "DATABASE_EXISTS") {
+					spinner.warn(`Database "${dbName}" already exists`);
+					dbName = await input({
+						message: "Please enter a different database name:",
+						default: `${dbName}-${Math.floor(Math.random() * 1000)}`,
+					});
+				} else {
+					throw error;
+				}
+			}
+		}
 	} catch (error) {
 		logger.error("Error during Turso setup:", error);
-		await setupManualConfig(projectDir);
+		await writeEnvFile(projectDir);
+		displayManualSetupInstructions();
 	}
 }