diff --git a/apps/fabro-web/app/routes/workflow-detail.tsx b/apps/fabro-web/app/routes/workflow-detail.tsx
index df5959421..1ced7fe45 100644
--- a/apps/fabro-web/app/routes/workflow-detail.tsx
+++ b/apps/fabro-web/app/routes/workflow-detail.tsx
@@ -44,7 +44,6 @@ function sampleSettings({
     project: {
       name: null,
       description: null,
-      directory: ".",
       metadata: {},
     },
     workflow: {
diff --git a/docs/public/api-reference/fabro-api.yaml b/docs/public/api-reference/fabro-api.yaml
index f5dd4f27e..bfbb088cc 100644
--- a/docs/public/api-reference/fabro-api.yaml
+++ b/docs/public/api-reference/fabro-api.yaml
@@ -7894,14 +7894,12 @@ components:
 
     ProjectNamespace:
       type: object
-      required: [name, description, directory, metadata]
+      required: [name, description, metadata]
       properties:
         name:
           type: ["string", "null"]
         description:
           type: ["string", "null"]
-        directory:
-          type: string
         metadata:
           $ref: "#/components/schemas/StringMap"
 
diff --git a/docs/superpowers/plans/2026-05-09-fixed-project-workflow-directory.md b/docs/superpowers/plans/2026-05-09-fixed-project-workflow-directory.md
index 7189ab5f1..06a02953f 100644
--- a/docs/superpowers/plans/2026-05-09-fixed-project-workflow-directory.md
+++ b/docs/superpowers/plans/2026-05-09-fixed-project-workflow-directory.md
@@ -1,33 +1,31 @@
 # Fixed Project Workflow Directory Plan
 
 **Summary**
-Remove the `[project].directory` feature entirely so project workflows are always discovered, created, listed, and resolved from `<repo_root>/.fabro/workflows/*`. Because this is greenfield, configs that still contain `[project] directory = ...` should fail schema validation instead of being ignored or migrated. User-level workflows under `~/.fabro/workflows` remain unchanged as an additional fallback/list section.
+Remove the `[project].directory` feature as an effective setting so project workflows are always discovered, created, listed, and resolved from `<repo_root>/.fabro/workflows/*`. Configs that still contain `[project] directory = ...` should continue parsing, but the field is deprecated and ignored. User-level workflows under `~/.fabro/workflows` remain unchanged as an additional fallback/list section.
 
 **Key Changes**
-- Remove `directory` from the project config schema and resolved settings type:
-  - Delete `ProjectLayer::directory` and `ProjectNamespace::directory`.
+- Remove `directory` from the resolved settings/API shape while tolerating old config files:
+  - Keep `ProjectLayer::directory` as a deprecated parse-only field so existing `project.toml` files with the field do not fail schema validation.
+  - Delete `ProjectNamespace::directory`.
   - Remove `[project] directory = "."` from built-in defaults.
-  - Update project resolver/tests so `[project]` only carries `name`, `description`, and `metadata`.
+  - Update project resolver, `fabro-types` fixtures, OpenAPI schema, and generated TypeScript client so resolved `[project]` settings only carry `name`, `description`, and `metadata`.
 - Make project Fabro root fixed:
-  - Change `resolve_fabro_root` to validate `.fabro/project.toml`, then return `config_path.parent()` directly.
-  - Update callers to handle `Result<PathBuf>` and use `<discovered .fabro>/workflows`.
-  - Delete now-unused path normalization code for joining `project.directory`.
-- Update public API shape:
-  - Remove `directory` from `ProjectNamespace` in `docs/public/api-reference/fabro-api.yaml`.
-  - Update `workflow_settings_round_trip` expectations.
-  - Regenerate `lib/packages/fabro-api-client` so TypeScript `ProjectNamespace` no longer has `directory`.
+  - Delete `resolve_fabro_root`; it only exists to apply `project.directory`.
+  - Delete `load_project_config` and project-root path normalization code if they have no remaining callers after `resolve_fabro_root` is removed.
+  - At workflow discovery/create/list call sites, use the discovered config path's parent directory as the Fabro root and append `workflows`.
+  - Do not add a new project-config validation step for workflow directory discovery; settings validation remains the responsibility of settings-loading paths.
 - Update docs and hints:
-  - Remove references to `project.directory` and the old `fabro.root -> project.directory` rename hint.
+  - Remove public references to `project.directory` and replace the old `fabro.root -> project.directory` rename hint with guidance that project workflows now live under `.fabro/workflows`.
   - Add/keep explicit docs that project workflows live at `<repo_root>/.fabro/workflows/<name>/`.
 
 **Test Plan**
 - Config tests:
   - Empty settings still resolve project metadata defaults.
-  - `[project] directory = "..."` is rejected as an unknown field.
-  - `resolve_fabro_root` always returns the `.fabro` directory containing `project.toml`.
+  - `[project] directory = "..."` still parses but is ignored in resolved settings.
+  - Project workflow root calculation uses the `.fabro` directory containing `project.toml`, regardless of any deprecated `project.directory` value.
 - CLI integration tests:
   - Replace custom-root workflow create/list tests with fixed-root assertions.
-  - Confirm `fabro workflow create <name>` writes `.fabro/workflows/<name>/workflow.{fabro,toml}`.
+  - Confirm `fabro workflow create <name>` writes both `.fabro/workflows/<name>/workflow.fabro` and `.fabro/workflows/<name>/workflow.toml`.
   - Confirm named workflow resolution reads `.fabro/workflows/<name>/workflow.toml`.
 - API/client checks:
   - `cargo build -p fabro-api`
@@ -36,6 +34,6 @@ Remove the `[project].directory` feature entirely so project workflows are alway
   - `cd apps/fabro-web && bun run typecheck`
 
 **Assumptions**
-- No backwards compatibility or migration period: old configs with `[project].directory` should fail.
+- Backwards compatibility is parse-only: old configs with `[project].directory` should not fail, but the value has no effect and is not exposed in resolved settings or the API.
 - This change only fixes the project workflow directory. User workflows remain available unless a separate decision removes them later.
 - GitHub retrieval itself is out of scope here; this refactor makes the repo path deterministic for that future work.
diff --git a/lib/crates/fabro-api/tests/workflow_settings_round_trip.rs b/lib/crates/fabro-api/tests/workflow_settings_round_trip.rs
index 4c4212c36..50c05af3a 100644
--- a/lib/crates/fabro-api/tests/workflow_settings_round_trip.rs
+++ b/lib/crates/fabro-api/tests/workflow_settings_round_trip.rs
@@ -32,7 +32,10 @@ approval = "auto"
     .expect("settings should resolve");
 
     let json = serde_json::to_value(&settings).expect("workflow settings should serialize");
-    assert_eq!(json["project"]["directory"], "workspace");
+    assert!(
+        json["project"].get("directory").is_none(),
+        "resolved project settings should not expose deprecated directory"
+    );
     assert_eq!(json["workflow"]["graph"], "ship.fabro");
     assert_eq!(json["run"]["goal"]["type"], "inline");
     assert_eq!(json["run"]["goal"]["value"], "Ship it");
diff --git a/lib/crates/fabro-cli/src/commands/workflow/create.rs b/lib/crates/fabro-cli/src/commands/workflow/create.rs
index 3a23280e5..813ce45ef 100644
--- a/lib/crates/fabro-cli/src/commands/workflow/create.rs
+++ b/lib/crates/fabro-cli/src/commands/workflow/create.rs
@@ -6,7 +6,7 @@
 use std::path::Path;
 
 use anyhow::{Context, Result, bail};
-use fabro_config::project::{discover_project_config, resolve_fabro_root};
+use fabro_config::project::discover_project_config;
 
 use crate::args::WorkflowCreateArgs;
 use crate::command_context::CommandContext;
@@ -23,8 +23,10 @@ pub(super) fn create_command(args: &WorkflowCreateArgs, base_ctx: &CommandContex
         );
     };
 
-    let fabro_root = resolve_fabro_root(&config_path);
-    let created = write_workflow_scaffold(args, &fabro_root)?;
+    let fabro_root = config_path
+        .parent()
+        .expect("project config should have a parent directory");
+    let created = write_workflow_scaffold(args, fabro_root)?;
 
     if base_ctx.json_output() {
         let created: Vec<_> = created.iter().map(|path| relative_path(path)).collect();
diff --git a/lib/crates/fabro-cli/src/commands/workflow/list.rs b/lib/crates/fabro-cli/src/commands/workflow/list.rs
index 16846762d..a65f32360 100644
--- a/lib/crates/fabro-cli/src/commands/workflow/list.rs
+++ b/lib/crates/fabro-cli/src/commands/workflow/list.rs
@@ -3,7 +3,6 @@ use cli_table::format::{Border, Separator};
 use cli_table::{Cell, CellStruct, Color, Style, Table};
 use fabro_config::project::{
     WorkflowInfo, WorkflowSource, discover_project_config, list_workflows_detailed,
-    resolve_fabro_root,
 };
 use fabro_util::printer::Printer;
 use fabro_util::terminal::Styles;
@@ -26,7 +25,9 @@ pub(super) fn list_command(_args: &WorkflowListArgs, base_ctx: &CommandContext)
         );
     };
 
-    let fabro_root = resolve_fabro_root(&config_path);
+    let fabro_root = config_path
+        .parent()
+        .expect("project config should have a parent directory");
     let project_wf_dir = fabro_root.join("workflows");
     let user_wf_dir = Some(fabro_util::Home::from_env().workflows_dir());
 
diff --git a/lib/crates/fabro-cli/tests/it/cmd/attach.rs b/lib/crates/fabro-cli/tests/it/cmd/attach.rs
index 1752cd394..9a9587ab5 100644
--- a/lib/crates/fabro-cli/tests/it/cmd/attach.rs
+++ b/lib/crates/fabro-cli/tests/it/cmd/attach.rs
@@ -915,7 +915,6 @@ fn attach_json_errors_without_prompting_for_human_input() {
           "settings": {
             "project": {
               "description": null,
-              "directory": ".",
               "metadata": {},
               "name": null
             },
diff --git a/lib/crates/fabro-cli/tests/it/cmd/workflow.rs b/lib/crates/fabro-cli/tests/it/cmd/workflow.rs
index c66c89c9d..b3eb7f0f2 100644
--- a/lib/crates/fabro-cli/tests/it/cmd/workflow.rs
+++ b/lib/crates/fabro-cli/tests/it/cmd/workflow.rs
@@ -39,7 +39,7 @@ fn list() {
             "_version = 1\n\n[project]\ndirectory = \"..\"\n",
         )
         .write_temp(
-            "workflows/my_test_wf/workflow.toml",
+            ".fabro/workflows/my_test_wf/workflow.toml",
             "_version = 1\n\n[run]\ngoal = \"A test workflow\"\n",
         );
 
@@ -55,7 +55,7 @@ fn list() {
     User Workflows (~/.fabro/workflows)
       (none)
 
-    Project Workflows (workflows)
+    Project Workflows (.fabro/workflows)
     NAME        DESCRIPTION     
      my_test_wf  A test workflow
     ");
diff --git a/lib/crates/fabro-cli/tests/it/cmd/workflow_create.rs b/lib/crates/fabro-cli/tests/it/cmd/workflow_create.rs
index 96bc7bcaf..046471a0e 100644
--- a/lib/crates/fabro-cli/tests/it/cmd/workflow_create.rs
+++ b/lib/crates/fabro-cli/tests/it/cmd/workflow_create.rs
@@ -160,7 +160,7 @@ fn workflow_create_errors_without_project_config() {
 }
 
 #[test]
-fn workflow_create_json_uses_resolved_custom_root_paths() {
+fn workflow_create_json_ignores_deprecated_project_directory() {
     let context = test_context!();
     let project_dir = context.temp_dir.join("project");
     context.write_temp(
@@ -188,20 +188,24 @@ fn workflow_create_json_uses_resolved_custom_root_paths() {
     {
       "name": "hello-world",
       "created": [
-        "custom/fabro-data/workflows/hello-world/workflow.fabro",
-        "custom/fabro-data/workflows/hello-world/workflow.toml"
+        ".fabro/workflows/hello-world/workflow.fabro",
+        ".fabro/workflows/hello-world/workflow.toml"
       ]
     }
     "#);
 
     assert!(
         project_dir
-            .join("custom/fabro-data/workflows/hello-world/workflow.fabro")
+            .join(".fabro/workflows/hello-world/workflow.fabro")
             .exists()
     );
     assert!(
         project_dir
-            .join("custom/fabro-data/workflows/hello-world/workflow.toml")
+            .join(".fabro/workflows/hello-world/workflow.toml")
             .exists()
     );
+    assert!(
+        !project_dir.join("custom/fabro-data/workflows").exists(),
+        "deprecated project.directory should not redirect workflow creation"
+    );
 }
diff --git a/lib/crates/fabro-config/src/builders.rs b/lib/crates/fabro-config/src/builders.rs
index a18ea8a7c..ab704b1ee 100644
--- a/lib/crates/fabro-config/src/builders.rs
+++ b/lib/crates/fabro-config/src/builders.rs
@@ -1,7 +1,7 @@
 use std::fmt;
 use std::path::Path;
 
-use fabro_types::settings::{ProjectNamespace, RunNamespace, WorkflowNamespace};
+use fabro_types::settings::{RunNamespace, WorkflowNamespace};
 use fabro_types::{ServerSettings, UserSettings, WorkflowSettings};
 use fabro_util::error::SharedError;
 
@@ -419,15 +419,6 @@ impl WorkflowSettingsBuilder {
         )
     }
 
-    pub(crate) fn project_from_layer(
-        layer: &SettingsLayer,
-    ) -> std::result::Result<ProjectNamespace, ResolveErrors> {
-        let layer = layer.clone().combine(DEFAULTS_LAYER.clone());
-        let mut errors = Vec::new();
-        let project = resolve_project(&layer.project.clone().unwrap_or_default(), &mut errors);
-        finish_dense_result(project, errors)
-    }
-
     pub(crate) fn workflow_from_layer(
         layer: &SettingsLayer,
     ) -> std::result::Result<WorkflowNamespace, ResolveErrors> {
diff --git a/lib/crates/fabro-config/src/defaults.toml b/lib/crates/fabro-config/src/defaults.toml
index 11041787e..d6738420b 100644
--- a/lib/crates/fabro-config/src/defaults.toml
+++ b/lib/crates/fabro-config/src/defaults.toml
@@ -2,9 +2,6 @@
 # Dynamic and presence-gated defaults remain in Rust.
 _version = 1
 
-[project]
-directory = "."
-
 [workflow]
 graph = "workflow.fabro"
 
diff --git a/lib/crates/fabro-config/src/layers/project.rs b/lib/crates/fabro-config/src/layers/project.rs
index 51d2c7110..66123cec9 100644
--- a/lib/crates/fabro-config/src/layers/project.rs
+++ b/lib/crates/fabro-config/src/layers/project.rs
@@ -12,8 +12,8 @@ pub struct ProjectLayer {
     pub name:        Option<String>,
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub description: Option<String>,
-    /// The Fabro-managed project directory inside the repo. Defaults to
-    /// `.` after layering when unspecified.
+    /// Deprecated parse-only field. Project workflows always live under the
+    /// `.fabro` directory that contains `project.toml`.
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub directory:   Option<String>,
     #[serde(default, skip_serializing_if = "ReplaceMap::is_empty")]
diff --git a/lib/crates/fabro-config/src/parse.rs b/lib/crates/fabro-config/src/parse.rs
index 7fb3becd9..7fd413a58 100644
--- a/lib/crates/fabro-config/src/parse.rs
+++ b/lib/crates/fabro-config/src/parse.rs
@@ -113,7 +113,7 @@ fn rename_hint(key: &str) -> Option<String> {
         "artifact_storage" => "rename to `[server.artifacts]`",
         "storage_dir" | "data_dir" => "rename to `[server.storage] root`",
         "max_concurrent_runs" => "rename to `[server.scheduler]` field",
-        "fabro" => "rename to `[project]`; `fabro.root` becomes `project.directory`",
+        "fabro" => "rename to `[project]`; project workflows now live under `.fabro/workflows`",
         "git" => "split into `[run.git]` (local git behavior) and `[server.integrations.github]`",
         "github" => {
             "split into `[server.integrations.github]` (App identity/auth) and \
diff --git a/lib/crates/fabro-config/src/project.rs b/lib/crates/fabro-config/src/project.rs
index 3c5bf48a7..75c395cff 100644
--- a/lib/crates/fabro-config/src/project.rs
+++ b/lib/crates/fabro-config/src/project.rs
@@ -10,13 +10,12 @@
 )]
 
 use std::fmt::Write;
-use std::path::{Component, Path, PathBuf};
+use std::path::{Path, PathBuf};
 
 use fabro_types::settings::{InterpString, RunNamespace};
 use serde::Serialize;
 
-use crate::load::load_settings_path;
-use crate::{Error, Result, SettingsLayer, WorkflowSettingsBuilder, run};
+use crate::{Error, Result, WorkflowSettingsBuilder, run};
 
 const CONFIG_FILENAME: &str = ".fabro/project.toml";
 #[derive(Clone, Debug)]
@@ -27,19 +26,6 @@ pub struct WorkflowPathResolution {
     pub workflow_slug:          Option<String>,
 }
 
-/// Load a project config from a file path.
-///
-/// Goes through [`load_settings_path`] so that relative `run.goal.file`
-/// paths are anchored at the directory of `path` at load time.
-fn load_project_config(path: &Path) -> Result<SettingsLayer> {
-    let config = load_settings_path(path)?;
-    let root = WorkflowSettingsBuilder::project_from_layer(&config)
-        .map_err(|errors| Error::resolve("Failed to resolve project settings", errors.into()))?
-        .directory;
-    tracing::debug!(path = %path.display(), root = %root, "Loaded project config");
-    Ok(config)
-}
-
 /// Walk ancestor directories from `start` looking for `.fabro/project.toml`.
 /// Returns the config file path, or `None` if not found.
 pub fn discover_project_config(start: &Path) -> Result<Option<PathBuf>> {
@@ -146,7 +132,9 @@ fn resolve_workflow_arg_impl(
     let name = arg.to_string_lossy();
     match discover_project_config(start_dir) {
         Ok(Some(config_path)) => {
-            let fabro_root = resolve_fabro_root(&config_path);
+            let fabro_root = config_path
+                .parent()
+                .expect("project config should have a parent directory");
             let project_candidate = fabro_root
                 .join("workflows")
                 .join(&*name)
@@ -334,40 +322,6 @@ pub fn resolve_workflow(arg: &Path) -> Result<PathBuf> {
     Ok(resolution.dot_path)
 }
 
-fn normalize_joined_path(base_dir: &Path, reference: &Path) -> PathBuf {
-    if reference.is_absolute() {
-        return reference.to_path_buf();
-    }
-
-    let mut normalized = PathBuf::new();
-    for component in base_dir.join(reference).components() {
-        match component {
-            Component::CurDir => {}
-            Component::Normal(part) => normalized.push(part),
-            Component::ParentDir => {
-                normalized.pop();
-            }
-            Component::RootDir => normalized.push(Path::new("/")),
-            Component::Prefix(prefix) => normalized.push(prefix.as_os_str()),
-        }
-    }
-    normalized
-}
-
-/// Resolve the fabro root directory from a config file path and its config.
-/// The returned path is the config file's parent directory joined with the
-/// `project.directory` value (default: `.`).
-pub fn resolve_fabro_root(config_path: &Path) -> PathBuf {
-    let project_dir = config_path
-        .parent()
-        .expect("config_path should have a parent directory");
-    let config = load_project_config(config_path).expect("project config should load");
-    let root = WorkflowSettingsBuilder::project_from_layer(&config)
-        .expect("project settings should resolve")
-        .directory;
-    normalize_joined_path(project_dir, Path::new(&root))
-}
-
 #[cfg(test)]
 mod tests {
     use std::fs;
@@ -386,19 +340,31 @@ mod tests {
     #[test]
     fn parse_with_project_directory() {
         assert_eq!(
-            WorkflowSettingsBuilder::from_toml(
-                r#"
+            r#"
+_version = 1
+
+[project]
+directory = "custom/"
+"#
+            .parse::<crate::SettingsLayer>()
+            .unwrap()
+            .project
+            .and_then(|project| project.directory),
+            Some("custom/".to_string())
+        );
+
+        let project = WorkflowSettingsBuilder::from_toml(
+            r#"
 _version = 1
 
 [project]
 directory = "custom/"
 "#,
-            )
-            .unwrap()
-            .project
-            .directory,
-            "custom/"
-        );
+        )
+        .unwrap()
+        .project;
+        let json = serde_json::to_value(&project).expect("project settings should serialize");
+        assert!(json.get("directory").is_none());
     }
 
     #[test]
@@ -425,17 +391,6 @@ directory = "custom/"
         );
     }
 
-    #[test]
-    fn load_from_disk() {
-        let tmp = TempDir::new().unwrap();
-        let config_dir = tmp.path().join(".fabro");
-        fs::create_dir_all(&config_dir).unwrap();
-        let path = config_dir.join("project.toml");
-        fs::write(&path, "_version = 1\n").unwrap();
-        let config = load_project_config(&path).unwrap();
-        assert_eq!(config.version, Some(1));
-    }
-
     #[test]
     fn discover_walks_ancestors() {
         let tmp = TempDir::new().unwrap();
@@ -450,50 +405,14 @@ directory = "custom/"
     }
 
     #[test]
-    fn load_project_config_rewrites_relative_goal_file_path() {
-        use crate::RunGoalLayer;
-
-        let tmp = TempDir::new().unwrap();
-        let config_dir = tmp.path().join(".fabro");
-        fs::create_dir_all(&config_dir).unwrap();
-        let path = config_dir.join("project.toml");
-        fs::write(
-            &path,
-            r#"_version = 1
-
-[run.goal]
-file = "prompts/goal.md"
-"#,
-        )
-        .unwrap();
-
-        let config = load_project_config(&path).unwrap();
-        let Some(RunGoalLayer::File { file }) =
-            config.run.as_ref().and_then(|run| run.goal.as_ref())
-        else {
-            panic!("expected file variant");
-        };
-        let expected = config_dir.join("prompts").join("goal.md");
-        assert_eq!(file.as_source(), expected.to_string_lossy());
-    }
-
-    #[test]
-    fn default_directory_resolves_to_config_parent() {
-        let tmp = TempDir::new().unwrap();
-        let config_dir = tmp.path().join(".fabro");
-        fs::create_dir_all(&config_dir).unwrap();
-        let config_path = config_dir.join("project.toml");
-        fs::write(&config_path, "_version = 1\n").unwrap();
-
-        assert_eq!(resolve_fabro_root(&config_path), config_dir);
-    }
-
-    #[test]
-    fn custom_relative_directory_resolves_from_config_parent() {
+    fn deprecated_project_directory_does_not_change_fabro_root() {
         let tmp = TempDir::new().unwrap();
         let config_dir = tmp.path().join(".fabro");
         fs::create_dir_all(&config_dir).unwrap();
         let config_path = config_dir.join("project.toml");
+        let workflow_dir = config_dir.join("workflows/demo");
+        fs::create_dir_all(&workflow_dir).unwrap();
+        fs::write(workflow_dir.join("workflow.toml"), "_version = 1\n").unwrap();
         fs::write(
             &config_path,
             r#"_version = 1
@@ -504,37 +423,9 @@ directory = "../custom"
         )
         .unwrap();
 
-        assert_eq!(resolve_fabro_root(&config_path), tmp.path().join("custom"));
-    }
-
-    #[test]
-    fn relative_goal_file_resolves_from_config_dir() {
-        use crate::RunGoalLayer;
-
-        let tmp = TempDir::new().unwrap();
-        let config_dir = tmp.path().join(".fabro");
-        fs::create_dir_all(&config_dir).unwrap();
-        let config_path = config_dir.join("project.toml");
-        fs::write(
-            &config_path,
-            r#"_version = 1
-
-[run.goal]
-file = "prompts/goal.md"
-"#,
-        )
-        .unwrap();
-
-        let config = load_project_config(&config_path).unwrap();
-        let Some(RunGoalLayer::File { file }) =
-            config.run.as_ref().and_then(|run| run.goal.as_ref())
-        else {
-            panic!("expected file variant");
-        };
-
         assert_eq!(
-            file.as_source(),
-            config_dir.join("prompts").join("goal.md").to_string_lossy()
+            resolve_workflow_arg_impl(Path::new("demo"), tmp.path(), None).unwrap(),
+            config_dir.join("workflows/demo/workflow.toml")
         );
     }
 
diff --git a/lib/crates/fabro-config/src/resolve/project.rs b/lib/crates/fabro-config/src/resolve/project.rs
index 2296acc5c..226784854 100644
--- a/lib/crates/fabro-config/src/resolve/project.rs
+++ b/lib/crates/fabro-config/src/resolve/project.rs
@@ -7,10 +7,6 @@ pub fn resolve_project(layer: &ProjectLayer, _errors: &mut Vec<ResolveError>) ->
     ProjectNamespace {
         name:        layer.name.clone(),
         description: layer.description.clone(),
-        directory:   layer
-            .directory
-            .clone()
-            .expect("defaults.toml should provide project.directory"),
         metadata:    layer.metadata.clone().into_inner(),
     }
 }
diff --git a/lib/crates/fabro-config/src/tests/defaults.rs b/lib/crates/fabro-config/src/tests/defaults.rs
index 5aecf5f68..7bc73a41d 100644
--- a/lib/crates/fabro-config/src/tests/defaults.rs
+++ b/lib/crates/fabro-config/src/tests/defaults.rs
@@ -18,12 +18,13 @@ fn embedded_defaults() -> SettingsLayer {
 fn embedded_defaults_parse_successfully() {
     let defaults = embedded_defaults();
 
-    assert_eq!(
+    assert!(
         defaults
             .project
             .as_ref()
-            .and_then(|project| project.directory.as_deref()),
-        Some(".")
+            .and_then(|project| project.directory.as_deref())
+            .is_none(),
+        "built-in defaults should not materialize deprecated project.directory"
     );
     assert_eq!(
         defaults
@@ -38,12 +39,13 @@ fn embedded_defaults_parse_successfully() {
 fn apply_builtin_defaults_materializes_expected_layer() {
     let layer = SettingsLayer::default().combine(embedded_defaults());
 
-    assert_eq!(
+    assert!(
         layer
             .project
             .as_ref()
-            .and_then(|project| project.directory.as_deref()),
-        Some(".")
+            .and_then(|project| project.directory.as_deref())
+            .is_none(),
+        "built-in defaults should not materialize deprecated project.directory"
     );
     assert_eq!(
         layer
diff --git a/lib/crates/fabro-config/src/tests/resolve_project.rs b/lib/crates/fabro-config/src/tests/resolve_project.rs
index 21c62d00c..b23b0971b 100644
--- a/lib/crates/fabro-config/src/tests/resolve_project.rs
+++ b/lib/crates/fabro-config/src/tests/resolve_project.rs
@@ -8,14 +8,18 @@ fn resolves_project_defaults_from_empty_settings() {
         .expect("empty settings should resolve")
         .project;
 
-    assert_eq!(project.directory, ".");
+    let json = serde_json::to_value(&project).expect("project settings should serialize");
+    assert!(
+        json.get("directory").is_none(),
+        "resolved project settings should not expose deprecated directory"
+    );
     assert!(project.name.is_none());
     assert!(project.description.is_none());
     assert!(project.metadata.is_empty());
 }
 
 #[test]
-fn resolves_project_directory_and_metadata() {
+fn resolves_project_metadata_and_ignores_deprecated_directory() {
     let project = WorkflowSettingsBuilder::from_toml(
         r#"
 _version = 1
@@ -34,7 +38,11 @@ team = "platform"
 
     assert_eq!(project.name.as_deref(), Some("Acme"));
     assert_eq!(project.description.as_deref(), Some("Automation"));
-    assert_eq!(project.directory, ".fabro");
+    let json = serde_json::to_value(&project).expect("project settings should serialize");
+    assert!(
+        json.get("directory").is_none(),
+        "resolved project settings should not expose deprecated directory"
+    );
     assert_eq!(
         project.metadata.get("team").map(String::as_str),
         Some("platform")
diff --git a/lib/crates/fabro-config/src/tests/resolve_root.rs b/lib/crates/fabro-config/src/tests/resolve_root.rs
index 1d75d6221..99fe0fef6 100644
--- a/lib/crates/fabro-config/src/tests/resolve_root.rs
+++ b/lib/crates/fabro-config/src/tests/resolve_root.rs
@@ -92,7 +92,12 @@ name = "gpt-5"
         WorkflowSettingsBuilder::from_toml(source).expect("workflow settings should resolve");
     let server = ServerSettingsBuilder::from_toml(source).expect("server settings should resolve");
 
-    assert_eq!(workflow_settings.project.directory, ".fabro");
+    let project_json = serde_json::to_value(&workflow_settings.project)
+        .expect("project settings should serialize");
+    assert!(
+        project_json.get("directory").is_none(),
+        "resolved project settings should not expose deprecated directory"
+    );
     assert_eq!(workflow_settings.workflow.graph, "graphs/workflow.dot");
     assert_eq!(server.server.storage.root.as_source(), "/srv/fabro");
     assert_eq!(
@@ -121,7 +126,12 @@ fn workflow_settings_resolve_defaults_and_expose_fields() {
     let resolved = fabro_config::WorkflowSettingsBuilder::from_layer(&settings)
         .expect("defaults should resolve");
 
-    assert_eq!(resolved.project.directory, ".");
+    let project_json =
+        serde_json::to_value(&resolved.project).expect("project settings should serialize");
+    assert!(
+        project_json.get("directory").is_none(),
+        "resolved project settings should not expose deprecated directory"
+    );
     assert_eq!(resolved.workflow.graph, "workflow.fabro");
     assert_eq!(resolved.run.execution.mode, RunMode::Normal);
 }
diff --git a/lib/crates/fabro-server/src/demo/mod.rs b/lib/crates/fabro-server/src/demo/mod.rs
index 72f073e41..52da747f9 100644
--- a/lib/crates/fabro-server/src/demo/mod.rs
+++ b/lib/crates/fabro-server/src/demo/mod.rs
@@ -1629,10 +1629,7 @@ mod runs {
 
     pub(super) fn settings() -> serde_json::Value {
         let settings = WorkflowSettings {
-            project:  ProjectNamespace {
-                directory: "/workspace/api-server".into(),
-                ..ProjectNamespace::default()
-            },
+            project:  ProjectNamespace::default(),
             workflow: WorkflowNamespace {
                 graph: "workflow.fabro".into(),
                 ..WorkflowNamespace::default()
diff --git a/lib/crates/fabro-types/src/settings/project.rs b/lib/crates/fabro-types/src/settings/project.rs
index 7e141dbcb..e6ae3ddf3 100644
--- a/lib/crates/fabro-types/src/settings/project.rs
+++ b/lib/crates/fabro-types/src/settings/project.rs
@@ -1,7 +1,4 @@
 //! Project domain: first-class project object.
-//!
-//! `[project]` replaces the old flat `[fabro]` shape. `directory` means the
-//! Fabro-managed project directory inside the repo, defaulting to `.`.
 
 use std::collections::HashMap;
 
@@ -12,6 +9,5 @@ use serde::{Deserialize, Serialize};
 pub struct ProjectNamespace {
     pub name:        Option<String>,
     pub description: Option<String>,
-    pub directory:   String,
     pub metadata:    HashMap<String, String>,
 }
diff --git a/lib/packages/fabro-api-client/src/models/project-namespace.ts b/lib/packages/fabro-api-client/src/models/project-namespace.ts
index c9a062096..d5fc1b7ef 100644
--- a/lib/packages/fabro-api-client/src/models/project-namespace.ts
+++ b/lib/packages/fabro-api-client/src/models/project-namespace.ts
@@ -17,7 +17,6 @@
 export interface ProjectNamespace {
     'name': string | null;
     'description': string | null;
-    'directory': string;
     'metadata': { [key: string]: string; };
 }