diff --git a/tools/cli/installers/lib/core/installer.js b/tools/cli/installers/lib/core/installer.js
index 6df7b66a..40daa81c 100644
--- a/tools/cli/installers/lib/core/installer.js
+++ b/tools/cli/installers/lib/core/installer.js
@@ -620,12 +620,88 @@ class Installer {
     }
   }
 
+  /**
+   * Find BMAD installation by searching up the directory tree
+   * Searches for both modern (bmad/) and legacy (.bmad-core, .bmad-method, .bmm, .cis) installations
+   * Prefers modern installation if multiple found
+   * @param {string} startPath - Starting directory to search from
+   * @returns {string|null} Path to BMAD directory, or null if not found
+   */
+  async findInstallation(startPath) {
+    const resolvedPath = path.resolve(startPath);
+    const root = path.parse(resolvedPath).root;
+    let currentPath = resolvedPath;
+
+    // Legacy folder names to check
+    const legacyFolders = ['.bmad-core', '.bmad-method', '.bmm', '.cis'];
+
+    // Search up the directory tree
+    while (currentPath !== root) {
+      // First check for modern bmad/ folder
+      const modernPath = path.join(currentPath, 'bmad');
+      if (await fs.pathExists(modernPath)) {
+        // Verify it's a valid BMAD installation
+        const status = await this.detector.detect(modernPath);
+        if (status.installed || status.hasCore) {
+          return modernPath;
+        }
+      }
+
+      // Then check for legacy folders
+      for (const legacyFolder of legacyFolders) {
+        const legacyPath = path.join(currentPath, legacyFolder);
+        if (await fs.pathExists(legacyPath)) {
+          // Verify it's a valid BMAD installation
+          const status = await this.detector.detect(legacyPath);
+          if (status.installed || status.hasCore) {
+            return legacyPath;
+          }
+        }
+      }
+
+      // Move up one directory
+      const parentPath = path.dirname(currentPath);
+      if (parentPath === currentPath) {
+        // Reached filesystem root
+        break;
+      }
+      currentPath = parentPath;
+    }
+
+    // Not found
+    return null;
+  }
+
   /**
    * Get installation status
+   * Searches directory tree if installation not found at specified location
    */
   async getStatus(directory) {
-    const bmadDir = path.join(path.resolve(directory), 'bmad');
-    return await this.detector.detect(bmadDir);
+    const resolvedDir = path.resolve(directory);
+    let bmadDir = path.join(resolvedDir, 'bmad');
+
+    // First check the exact path
+    let status = await this.detector.detect(bmadDir);
+    if (status.installed || status.hasCore) {
+      return status;
+    }
+
+    // If not found at exact location, search the directory tree
+    const foundPath = await this.findInstallation(resolvedDir);
+    if (foundPath) {
+      return await this.detector.detect(foundPath);
+    }
+
+    // Not found anywhere - return not installed
+    return {
+      installed: false,
+      path: bmadDir,
+      version: null,
+      hasCore: false,
+      modules: [],
+      ides: [],
+      manifest: null,
+    };
   }
 
   /**