diff --git a/src/components/ProjectSetupModal.tsx b/src/components/ProjectSetupModal.tsx
index 0d4de0a0..7bf3bc59 100644
--- a/src/components/ProjectSetupModal.tsx
+++ b/src/components/ProjectSetupModal.tsx
@@ -5,7 +5,7 @@ import { generateWorkflowId, useWorkflowStore } from "@/store/workflowStore";
 import { ProviderType, ProviderSettings, NodeDefaultsConfig, LLMProvider, LLMModelType } from "@/types";
 import { CanvasNavigationSettings, PanMode, ZoomMode, SelectionMode } from "@/types/canvas";
 import { EnvStatusResponse } from "@/app/api/env-status/route";
-import { loadNodeDefaults, saveNodeDefaults } from "@/store/utils/localStorage";
+import { loadNodeDefaults, saveNodeDefaults, getLastProjectBaseDir, setLastProjectBaseDir } from "@/store/utils/localStorage";
 import { ProviderModel } from "@/lib/providers/types";
 import { ModelSearchDialog } from "@/components/modals/ModelSearchDialog";
 import { useInlineParameters } from "@/hooks/useInlineParameters";
@@ -199,7 +199,7 @@ export function ProjectSetupModal({
         setExternalStorage(useExternalImageStorage);
       } else if (mode === "new") {
         setName("");
-        setDirectoryPath("");
+        setDirectoryPath(getLastProjectBaseDir() || "");
         setExternalStorage(true);
       }
 
@@ -300,6 +300,8 @@ export function ProjectSetupModal({
       const id = mode === "new" ? generateWorkflowId() : useWorkflowStore.getState().workflowId || generateWorkflowId();
       // Update external storage setting
       setUseExternalImageStorage(externalStorage);
+      // Remember the base directory for next time
+      setLastProjectBaseDir(directoryPath);
       onSave(id, name.trim(), fullProjectPath);
       setIsValidating(false);
     } catch (err) {
diff --git a/src/store/utils/localStorage.ts b/src/store/utils/localStorage.ts
index fb5ed9b9..b2dc42ca 100644
--- a/src/store/utils/localStorage.ts
+++ b/src/store/utils/localStorage.ts
@@ -19,6 +19,7 @@ export const PROVIDER_SETTINGS_KEY = "node-banana-provider-settings";
 export const RECENT_MODELS_KEY = "node-banana-recent-models";
 export const NODE_DEFAULTS_KEY = "node-banana-node-defaults";
 export const CANVAS_NAVIGATION_KEY = "node-banana-canvas-navigation";
+export const LAST_PROJECT_BASE_DIR_KEY = "node-banana-last-project-dir";
 
 // Maximum recent models to store (show 4 in UI, keep 8 for persistence)
 export const MAX_RECENT_MODELS = 8;
@@ -216,6 +217,17 @@ export const saveCanvasNavigationSettings = (settings: CanvasNavigationSettings)
   localStorage.setItem(CANVAS_NAVIGATION_KEY, JSON.stringify(settings));
 };
 
+// Last project base directory helpers
+export const getLastProjectBaseDir = (): string | null => {
+  if (typeof window === "undefined") return null;
+  return localStorage.getItem(LAST_PROJECT_BASE_DIR_KEY);
+};
+
+export const setLastProjectBaseDir = (dir: string): void => {
+  if (typeof window === "undefined") return;
+  localStorage.setItem(LAST_PROJECT_BASE_DIR_KEY, dir);
+};
+
 // Workflow ID generator
 export const generateWorkflowId = (): string =>
   `wf_${Date.now()}_${Math.random().toString(36).substr(2, 9)}`;