diff --git a/tools/cli/installers/lib/ide/_base-ide.js b/tools/cli/installers/lib/ide/_base-ide.js
index 936629045..fb392bd82 100644
--- a/tools/cli/installers/lib/ide/_base-ide.js
+++ b/tools/cli/installers/lib/ide/_base-ide.js
@@ -15,7 +15,7 @@ class BaseIdeSetup {
     this.configDir = null; // Override in subclasses (e.g., '.windsurf/workflows/wds')
     this.configFile = null; // Override in subclasses when detection is file-based
     this.detectionPaths = []; // Additional paths that indicate the IDE is configured
-    this.wdsFolderName = '_wds'; // Default, can be overridden
+    this.wdsFolderName = '_bmad/wds'; // Default, can be overridden
   }
 
   /**
diff --git a/tools/cli/installers/lib/ide/manager.js b/tools/cli/installers/lib/ide/manager.js
index 2ef2c2c9f..2b068ab36 100644
--- a/tools/cli/installers/lib/ide/manager.js
+++ b/tools/cli/installers/lib/ide/manager.js
@@ -10,7 +10,7 @@ class IdeManager {
   constructor() {
     this.handlers = new Map();
     this.loadHandlers();
-    this.wdsFolderName = '_wds'; // Default, can be overridden
+    this.wdsFolderName = '_bmad/wds'; // Default, can be overridden
   }
 
   /**
diff --git a/tools/cli/lib/compiler.js b/tools/cli/lib/compiler.js
index a0209f22b..e42471e1f 100644
--- a/tools/cli/lib/compiler.js
+++ b/tools/cli/lib/compiler.js
@@ -346,7 +346,7 @@ function rewritePaths(content, wdsFolder) {
 // --- Main Compilation ---
 
 function compileAgentFile(yamlPath, options = {}) {
-  const wdsFolder = options.wdsFolder || '_wds';
+  const wdsFolder = options.wdsFolder || '_bmad/wds';
   const rawContent = fs.readFileSync(yamlPath, 'utf8');
 
   // Rewrite paths before parsing
diff --git a/tools/cli/lib/installer.js b/tools/cli/lib/installer.js
index ab853f48c..8be038448 100644
--- a/tools/cli/lib/installer.js
+++ b/tools/cli/lib/installer.js
@@ -26,8 +26,28 @@ class Installer {
   async install(config) {
     const { projectDir, wdsFolder, root_folder } = config;
     const wdsDir = path.join(projectDir, wdsFolder);
+    const detection = config._detection || { type: 'fresh' };
 
-    // Check if already installed
+    // Handle legacy _wds/ → _bmad/wds/ migration
+    if (detection.type === 'legacy' && wdsFolder !== '_wds') {
+      const legacyDir = path.join(projectDir, '_wds');
+      const legacyConfigPath = path.join(legacyDir, 'config.yaml');
+
+      // Save config from legacy location
+      if (await fs.pathExists(legacyConfigPath)) {
+        let savedConfig = await fs.readFile(legacyConfigPath, 'utf8');
+        // Update wds_folder in saved config to new path
+        savedConfig = savedConfig.replace(/wds_folder:.*/, `wds_folder: ${wdsFolder}`);
+        config._savedConfigYaml = savedConfig;
+      }
+
+      const migrateSpinner = ora(`Migrating _wds/ → ${wdsFolder}/...`).start();
+      await fs.ensureDir(path.dirname(wdsDir));
+      await fs.remove(legacyDir);
+      migrateSpinner.succeed(`Legacy _wds/ removed — installing fresh at ${wdsFolder}/`);
+    }
+
+    // Check if already installed at target path
     if (await fs.pathExists(wdsDir)) {
       console.log(chalk.yellow(`\n  ${wdsFolder}/ already exists.`));
       const { action } = await inquirer.prompt([
@@ -68,6 +88,9 @@ class Installer {
       }
     }
 
+    // Ensure parent directory exists (for _bmad/wds/)
+    await fs.ensureDir(path.dirname(wdsDir));
+
     console.log('');
 
     // Step 1: Copy source files
diff --git a/tools/cli/lib/ui.js b/tools/cli/lib/ui.js
index 028925ee5..c7ca0294f 100644
--- a/tools/cli/lib/ui.js
+++ b/tools/cli/lib/ui.js
@@ -6,6 +6,10 @@ const chalk = require('chalk');
 const figlet = require('figlet');
 const inquirer = require('inquirer').default || require('inquirer');
 const path = require('node:path');
+const fs = require('fs-extra');
+
+const WDS_FOLDER = '_bmad/wds';
+const LEGACY_WDS_FOLDER = '_wds';
 
 class UI {
   /**
@@ -22,6 +26,26 @@ class UI {
     console.log(chalk.dim('  Strategic design methodology for AI-powered workflows\n'));
   }
 
+  /**
+   * Detect existing WDS installation and determine folder path
+   */
+  async detectInstallation(projectDir) {
+    const hasBmadWds = await fs.pathExists(path.join(projectDir, WDS_FOLDER));
+    const hasLegacyWds = await fs.pathExists(path.join(projectDir, LEGACY_WDS_FOLDER));
+    const hasBmadDir = await fs.pathExists(path.join(projectDir, '_bmad'));
+
+    if (hasBmadWds) {
+      return { type: 'bmad', folder: WDS_FOLDER };
+    }
+    if (hasLegacyWds) {
+      return { type: 'legacy', folder: LEGACY_WDS_FOLDER };
+    }
+    if (hasBmadDir) {
+      return { type: 'bmad-ready', folder: WDS_FOLDER };
+    }
+    return { type: 'fresh', folder: WDS_FOLDER };
+  }
+
   /**
    * Run the full prompt flow and return config
    */
@@ -30,9 +54,35 @@ class UI {
 
     const projectDir = process.cwd();
     const defaultProjectName = path.basename(projectDir);
+    const detection = await this.detectInstallation(projectDir);
 
     console.log(chalk.white(`  Target: ${chalk.cyan(projectDir)}`));
-    console.log(chalk.dim(`  Agents and workflows will be installed in ${chalk.white('_wds/')}\n`));
+
+    // Handle legacy _wds/ detection
+    let wdsFolder = detection.folder;
+    if (detection.type === 'legacy') {
+      console.log(chalk.yellow(`\n  Found legacy installation at ${chalk.white(LEGACY_WDS_FOLDER + '/')}`));
+      console.log(chalk.dim(`  BMAD standard path is ${chalk.white(WDS_FOLDER + '/')}\n`));
+
+      const { migrationChoice } = await inquirer.prompt([
+        {
+          type: 'list',
+          name: 'migrationChoice',
+          message: 'How would you like to proceed?',
+          choices: [
+            { name: `Migrate to ${WDS_FOLDER}/ (recommended)`, value: 'migrate' },
+            { name: `Keep at ${LEGACY_WDS_FOLDER}/ (legacy)`, value: 'keep' },
+          ],
+        },
+      ]);
+
+      if (migrationChoice === 'keep') {
+        wdsFolder = LEGACY_WDS_FOLDER;
+      }
+      // 'migrate' keeps the default WDS_FOLDER — installer.js handles the actual move
+    } else {
+      console.log(chalk.dim(`  Agents and workflows will be installed in ${chalk.white(wdsFolder + '/')}\n`));
+    }
 
     // 5-question installer
     const answers = await inquirer.prompt([
@@ -102,7 +152,8 @@ class UI {
     return {
       projectDir,
       ...answers,
-      wdsFolder: '_wds',
+      wdsFolder,
+      _detection: detection,
       cancelled: false,
     };
   }