diff --git a/docs/project-configuration.md b/docs/project-configuration.md
index 81fa26b8d..307e095b7 100644
--- a/docs/project-configuration.md
+++ b/docs/project-configuration.md
@@ -32,8 +32,11 @@ codex-security info -c codex-security.yaml --json
 `init [file]` defaults to `codex-security.yaml`, refuses to overwrite an existing
 file, and accepts `.yaml`, `.yml`, or `.json`. YAML starters show current defaults
 as comments so future releases can still update defaults you have not overridden.
-The editor hint is relative to the chosen file and expects the package to be
-installed in the invocation directory's `node_modules`.
+The editor hint is relative to the chosen file and points at the nearest
+installed `@openai/codex-security`, searching upward from that file so hoisted
+workspaces resolve. With nothing installed yet, it falls back to the invocation
+directory's `node_modules`. JSON starters carry only `$schema`, so `init`
+prints the settings guidance that YAML keeps in comments.
 
 For a project with a `src` directory:
 
diff --git a/sdk/typescript/src/cli.ts b/sdk/typescript/src/cli.ts
index b5f0a1d07..c2caf1fee 100644
--- a/sdk/typescript/src/cli.ts
+++ b/sdk/typescript/src/cli.ts
@@ -4400,20 +4400,25 @@ export async function main(
       }),
       output: z.object({ path: z.string() }).optional(),
       async run({ args }) {
+        const file = args.file ?? "codex-security.yaml";
+        let path = file;
         try {
           const directory = dependencies.currentDirectory();
-          const path = resolveCliPath(
-            directory,
-            args.file ?? "codex-security.yaml",
-          );
-          await writeFile(path, projectConfigStarter(path, directory), {
-            flag: "wx",
-            mode: 0o600,
-          });
+          path = resolveCliPath(directory, file);
+          const starter = projectConfigStarter(path, directory);
+          // Tracked configuration, so let the umask decide who can read it.
+          await writeFile(path, starter.contents, { flag: "wx" });
+          for (const note of starter.notes) errorOutput.write(`${note}\n`);
           return { path };
         } catch (error) {
           exitCode = 2;
-          errorOutput.write(`codex-security: ${errorMessage(error)}\n`);
+          errorOutput.write(
+            `codex-security: ${
+              (error as NodeJS.ErrnoException).code === "EEXIST"
+                ? `${path} already exists. Edit it, or select it with --config ${file}.`
+                : errorMessage(error)
+            }\n`,
+          );
         }
       },
     })
diff --git a/sdk/typescript/src/project-config.ts b/sdk/typescript/src/project-config.ts
index e853bcbee..db42b34a7 100644
--- a/sdk/typescript/src/project-config.ts
+++ b/sdk/typescript/src/project-config.ts
@@ -1,8 +1,10 @@
+import { existsSync } from "node:fs";
 import { readFile } from "node:fs/promises";
 import {
   dirname,
   extname,
   isAbsolute,
+  join,
   relative,
   resolve,
   sep,
@@ -173,53 +175,83 @@ function projectConfigExtension(path: string): string {
   return extension;
 }
 
+const SCHEMA_MODULE_PATH = join(
+  "node_modules",
+  "@openai",
+  "codex-security",
+  "schemas",
+  "project-config.schema.json",
+);
+
+/** Prefer an installed schema so hoisted workspaces get a resolvable hint. */
+function installedSchemaPath(from: string, fallback: string): string {
+  for (let directory = from; ; directory = dirname(directory)) {
+    const candidate = join(directory, SCHEMA_MODULE_PATH);
+    if (existsSync(candidate)) return candidate;
+    if (dirname(directory) === directory) return fallback;
+  }
+}
+
+export interface ProjectConfigStarter {
+  contents: string;
+  /** Guidance a format cannot carry inline, written to stderr. */
+  notes: readonly string[];
+}
+
 export function projectConfigStarter(
   path: string,
   directory = process.cwd(),
-): string {
-  const schemaPath = resolve(
-    directory,
-    "node_modules/@openai/codex-security/schemas/project-config.schema.json",
-  );
-  const relativeSchema = relative(
-    dirname(resolve(directory, path)),
-    schemaPath,
+): ProjectConfigStarter {
+  const fileDirectory = dirname(resolve(directory, path));
+  const schemaPath = installedSchemaPath(
+    fileDirectory,
+    resolve(directory, SCHEMA_MODULE_PATH),
   );
+  const relativeSchema = relative(fileDirectory, schemaPath);
   const schema = isAbsolute(relativeSchema)
     ? pathToFileURL(schemaPath).href
     : `${relativeSchema.startsWith(".") ? "" : "./"}${relativeSchema
         .split(sep)
         .join("/")}`;
   if (projectConfigExtension(path) === ".json")
-    return `${JSON.stringify({ $schema: schema }, null, 2)}\n`;
-  return [
-    "# This file is trusted like CLI options. Keep it outside untrusted inputs.",
-    `$schema: ${schema}`,
-    "",
-    "# Uncomment the settings you want to override. Defaults remain unpinned.",
-    `# auth: ${DEFAULT_SCAN_AUTH}`,
-    "# scan:",
-    `#   mode: ${DEFAULT_SCAN_MODE}`,
-    "#   scope:",
-    "#     paths: [src] # Relative to each selected repository.",
-    "#   knowledge_base: [] # Paths relative to this file.",
-    "#   instructions_file: instructions.md",
-    "#   validation_file: validation.md # Standard mode only.",
-    "#   deep: # Used when mode is deep.",
-    ...DEEP_SCAN_SETTINGS.map(
-      ([name, , key]) => `#     ${key}: ${DEFAULT_DEEP_SCAN_SETTINGS[name]}`,
-    ),
-    "# codex:",
-    `#   model: ${DEFAULT_CODEX_CONFIG["model"]}`,
-    `#   model_reasoning_effort: ${DEFAULT_CODEX_CONFIG["model_reasoning_effort"]}`,
-    "# limits:",
-    "#   max_cost_usd_per_scan: 10 # Optional limit per scan attempt.",
-    "# policy:",
-    "#   fail_on_severity: high # Omitted by default (report only).",
-    "# output:",
-    "#   directory: ../scan-results # Outside the selected repositories.",
-    "",
-  ].join("\n");
+    return {
+      contents: `${JSON.stringify({ $schema: schema }, null, 2)}\n`,
+      notes: [
+        "JSON starters cannot carry comments describing the available settings.",
+        "Run codex-security init codex-security.yaml for a commented template.",
+      ],
+    };
+  return {
+    contents: [
+      "# This file is trusted like CLI options. Keep it outside untrusted inputs.",
+      `$schema: ${schema}`,
+      "",
+      "# Uncomment the settings you want to override. Defaults remain unpinned.",
+      `# auth: ${DEFAULT_SCAN_AUTH}`,
+      "# scan:",
+      `#   mode: ${DEFAULT_SCAN_MODE}`,
+      "#   scope:",
+      "#     paths: [src] # Relative to each selected repository.",
+      "#   knowledge_base: [] # Paths relative to this file.",
+      "#   instructions_file: instructions.md",
+      "#   validation_file: validation.md # Standard mode only.",
+      "#   deep: # Used when mode is deep.",
+      ...DEEP_SCAN_SETTINGS.map(
+        ([name, , key]) => `#     ${key}: ${DEFAULT_DEEP_SCAN_SETTINGS[name]}`,
+      ),
+      "# codex:",
+      `#   model: ${DEFAULT_CODEX_CONFIG["model"]}`,
+      `#   model_reasoning_effort: ${DEFAULT_CODEX_CONFIG["model_reasoning_effort"]}`,
+      "# limits:",
+      "#   max_cost_usd_per_scan: 10 # Optional limit per scan attempt.",
+      "# policy:",
+      "#   fail_on_severity: high # Omitted by default (report only).",
+      "# output:",
+      "#   directory: ../scan-results # Outside the selected repositories.",
+      "",
+    ].join("\n"),
+    notes: [],
+  };
 }
 
 function requireProjectConfig(
diff --git a/sdk/typescript/tests-ts/cli-project-config.test.ts b/sdk/typescript/tests-ts/cli-project-config.test.ts
index a1d6a9cda..dd79358b3 100644
--- a/sdk/typescript/tests-ts/cli-project-config.test.ts
+++ b/sdk/typescript/tests-ts/cli-project-config.test.ts
@@ -4,6 +4,7 @@ import {
   readFile,
   realpath,
   rm,
+  stat,
   symlink,
   writeFile,
 } from "node:fs/promises";
@@ -79,11 +80,89 @@ test.each([
       $schema: `${modules}/@openai/codex-security/schemas/project-config.schema.json`,
     });
     const contents = await readFile(path, "utf8");
-    expect(await main(args, capture().stream, capture().stream, deps)).toBe(2);
+    const refused = capture();
+    expect(await main(args, capture().stream, refused.stream, deps)).toBe(2);
     expect(await readFile(path, "utf8")).toBe(contents);
+    expect(refused.text()).toContain(`${path} already exists.`);
+    expect(refused.text()).not.toContain("EEXIST");
   },
 );
 
+test("init leaves starter permissions to the umask", async () => {
+  const input = await fixture({});
+  const output = capture();
+  const deps = dependencies({
+    currentDirectory: input.root,
+    onConfig: () => {
+      throw new Error("No runtime for init");
+    },
+  });
+  expect(
+    await main(["init", "--json"], output.stream, capture().stream, deps),
+  ).toBe(0);
+  // Tracked configuration should match an ordinary write, not a private file.
+  const reference = join(input.root, "reference.yaml");
+  await writeFile(reference, "");
+  expect((await stat(join(input.root, "codex-security.yaml"))).mode).toBe(
+    (await stat(reference)).mode,
+  );
+});
+
+test("init explains the settings a JSON starter cannot carry inline", async () => {
+  const input = await fixture({});
+  const notes = capture();
+  expect(
+    await main(
+      ["init", "starter.json", "--json"],
+      capture().stream,
+      notes.stream,
+      dependencies({
+        currentDirectory: input.root,
+        onConfig: () => {
+          throw new Error("No runtime for init");
+        },
+      }),
+    ),
+  ).toBe(0);
+  expect(notes.text()).toContain("cannot carry comments");
+  expect(notes.text()).toContain("init codex-security.yaml");
+});
+
+test("init points the editor hint at an installed schema above the file", async () => {
+  const input = await fixture({});
+  const installed = join(
+    input.root,
+    "node_modules",
+    "@openai",
+    "codex-security",
+    "schemas",
+  );
+  await mkdir(installed, { recursive: true });
+  await writeFile(join(installed, "project-config.schema.json"), "{}");
+  const nested = join(input.root, "packages", "app");
+  await mkdir(nested, { recursive: true });
+  expect(
+    await main(
+      ["init", "packages/app/codex-security.yaml", "--json"],
+      capture().stream,
+      capture().stream,
+      dependencies({
+        currentDirectory: input.root,
+        onConfig: () => {
+          throw new Error("No runtime for init");
+        },
+      }),
+    ),
+  ).toBe(0);
+  // Hoisted workspaces resolve upward instead of emitting a broken sibling path.
+  expect(
+    (await readProjectConfig(join(nested, "codex-security.yaml"))).input,
+  ).toEqual({
+    $schema:
+      "../../node_modules/@openai/codex-security/schemas/project-config.schema.json",
+  });
+});
+
 test("info resolves a config and its sources without a target, prompt reads, or runtime", async () => {
   const input = await fixture({
     scan: {