diff --git a/packages/shadcn/src/commands/init.ts b/packages/shadcn/src/commands/init.ts
index 6eb2fda260..5a1a45a67a 100644
--- a/packages/shadcn/src/commands/init.ts
+++ b/packages/shadcn/src/commands/init.ts
@@ -21,6 +21,7 @@ import {
   templates,
 } from "@/src/templates/index"
 import { addComponents } from "@/src/utils/add-components"
+import { getInitAliasDefaults } from "@/src/utils/alias"
 import { createProject } from "@/src/utils/create-project"
 import { loadEnvFiles } from "@/src/utils/env-loader"
 import * as ERRORS from "@/src/utils/errors"
@@ -905,63 +906,6 @@ async function promptForConfig(defaultConfig: Config | null = null) {
   })
 }
 
-export function getInitAliasDefaults(
-  componentsAlias: string,
-  existingAliases?: Config["aliases"]
-) {
-  const derivedLib =
-    existingAliases?.lib ?? deriveAliasFromComponents(componentsAlias, "lib")
-
-  return {
-    ui: existingAliases?.ui ?? deriveAliasFromComponents(componentsAlias, "ui"),
-    lib: derivedLib,
-    hooks:
-      existingAliases?.hooks ??
-      deriveAliasFromComponents(componentsAlias, "hooks"),
-    utils:
-      existingAliases?.utils ??
-      deriveAliasFromComponents(componentsAlias, "utils", derivedLib),
-  }
-}
-
-function deriveAliasFromComponents(
-  componentsAlias: string,
-  kind: "ui" | "lib" | "hooks" | "utils",
-  libAlias?: string
-) {
-  const alias = componentsAlias || DEFAULT_COMPONENTS
-
-  if (kind === "ui") {
-    return `${alias}/ui`
-  }
-
-  if (kind === "utils") {
-    const resolvedLib = libAlias || replaceComponentsAliasTail(alias, "lib")
-    return resolvedLib ? `${resolvedLib}/utils` : DEFAULT_UTILS
-  }
-
-  return replaceComponentsAliasTail(alias, kind)
-}
-
-function replaceComponentsAliasTail(
-  alias: string,
-  kind: "lib" | "hooks"
-) {
-  if (alias === "components") {
-    return kind
-  }
-
-  if (alias.endsWith("/components")) {
-    return `${alias.slice(0, -"/components".length)}/${kind}`
-  }
-
-  if (alias.endsWith("components") && !alias.includes("/")) {
-    return `${alias.slice(0, -"components".length)}${kind}`
-  }
-
-  return ""
-}
-
 export function shouldRunTemplatePostInit(
   template:
     | { postInit?: (options: { projectPath: string }) => Promise<void> }
diff --git a/packages/shadcn/src/utils/alias.test.ts b/packages/shadcn/src/utils/alias.test.ts
new file mode 100644
index 0000000000..7f4054dd03
--- /dev/null
+++ b/packages/shadcn/src/utils/alias.test.ts
@@ -0,0 +1,78 @@
+import { describe, expect, test } from "vitest"
+
+import {
+  deriveAliasFromComponents,
+  getInitAliasDefaults,
+} from "@/src/utils/alias"
+
+describe("deriveAliasFromComponents", () => {
+  test("derives ui aliases from components", () => {
+    expect(deriveAliasFromComponents("@/components", "ui")).toBe(
+      "@/components/ui"
+    )
+  })
+
+  test("derives utils aliases from lib aliases", () => {
+    expect(deriveAliasFromComponents("#components", "utils")).toBe("#lib/utils")
+    expect(
+      deriveAliasFromComponents("#custom/components", "utils", "#custom/lib")
+    ).toBe("#custom/lib/utils")
+  })
+
+  test("derives sibling lib and hooks aliases from components", () => {
+    expect(deriveAliasFromComponents("@/components", "lib")).toBe("@/lib")
+    expect(deriveAliasFromComponents("#custom/components", "hooks")).toBe(
+      "#custom/hooks"
+    )
+  })
+
+  test("returns an empty string when components alias has no sibling base", () => {
+    expect(deriveAliasFromComponents("#custom/ui", "lib")).toBe("")
+  })
+})
+
+describe("getInitAliasDefaults", () => {
+  test("derives standard aliases from components", () => {
+    expect(getInitAliasDefaults("@/components")).toEqual({
+      ui: "@/components/ui",
+      lib: "@/lib",
+      hooks: "@/hooks",
+      utils: "@/lib/utils",
+    })
+  })
+
+  test("derives package import aliases from #components", () => {
+    expect(getInitAliasDefaults("#components")).toEqual({
+      ui: "#components/ui",
+      lib: "#lib",
+      hooks: "#hooks",
+      utils: "#lib/utils",
+    })
+  })
+
+  test("derives sibling aliases for nested custom aliases", () => {
+    expect(getInitAliasDefaults("#custom/components")).toEqual({
+      ui: "#custom/components/ui",
+      lib: "#custom/lib",
+      hooks: "#custom/hooks",
+      utils: "#custom/lib/utils",
+    })
+  })
+
+  test("preserves existing aliases when components alias is unchanged", () => {
+    expect(
+      getInitAliasDefaults("#components", {
+        components: "#components",
+        ui: "#components/ui",
+        lib: "#lib",
+        hooks: "#hooks",
+        utils: "#lib/utils",
+      })
+    ).toEqual({
+      ui: "#components/ui",
+      lib: "#lib",
+      hooks: "#hooks",
+      utils: "#lib/utils",
+    })
+  })
+})
diff --git a/packages/shadcn/src/utils/alias.ts b/packages/shadcn/src/utils/alias.ts
new file mode 100644
index 0000000000..02185ede94
--- /dev/null
+++ b/packages/shadcn/src/utils/alias.ts
@@ -0,0 +1,65 @@
+import type { Config } from "@/src/utils/get-config"
+import { DEFAULT_COMPONENTS, DEFAULT_UTILS } from "@/src/utils/get-config"
+
+export function getInitAliasDefaults(
+  componentsAlias: string,
+  existingAliases?: Config["aliases"]
+) {
+  // `lib` is the anchor for deriving `utils`, so reuse the existing value first
+  // when init is re-running against the same components alias.
+  const derivedLib =
+    existingAliases?.lib ?? deriveAliasFromComponents(componentsAlias, "lib")
+
+  return {
+    ui: existingAliases?.ui ?? deriveAliasFromComponents(componentsAlias, "ui"),
+    lib: derivedLib,
+    hooks:
+      existingAliases?.hooks ??
+      deriveAliasFromComponents(componentsAlias, "hooks"),
+    utils:
+      existingAliases?.utils ??
+      deriveAliasFromComponents(componentsAlias, "utils", derivedLib),
+  }
+}
+
+export function deriveAliasFromComponents(
+  componentsAlias: string,
+  kind: "ui" | "lib" | "hooks" | "utils",
+  libAlias?: string
+) {
+  const alias = componentsAlias || DEFAULT_COMPONENTS
+
+  if (kind === "ui") {
+    return `${alias}/ui`
+  }
+
+  if (kind === "utils") {
+    // `utils` follows `lib`, not `components`, so derive or reuse the sibling
+    // lib alias before appending `/utils`.
+    const resolvedLib = libAlias || replaceComponentsAliasTail(alias, "lib")
+    return resolvedLib ? `${resolvedLib}/utils` : DEFAULT_UTILS
+  }
+
+  return replaceComponentsAliasTail(alias, kind)
+}
+
+function replaceComponentsAliasTail(
+  alias: string,
+  kind: "lib" | "hooks"
+) {
+  // Handles the common `@/components` and `#custom/components` forms by
+  // swapping the trailing `components` segment for a sibling alias root.
+  if (alias === "components") {
+    return kind
+  }
+
+  if (alias.endsWith("/components")) {
+    return `${alias.slice(0, -"/components".length)}/${kind}`
+  }
+
+  if (alias.endsWith("components") && !alias.includes("/")) {
+    return `${alias.slice(0, -"components".length)}${kind}`
+  }
+
+  return ""
+}
diff --git a/packages/shadcn/test/commands/init.test.ts b/packages/shadcn/test/commands/init.test.ts
index 2b88536a4e..c330ce2118 100644
--- a/packages/shadcn/test/commands/init.test.ts
+++ b/packages/shadcn/test/commands/init.test.ts
@@ -1,55 +1,6 @@
 import { describe, expect, test } from "vitest"
 
-import {
-  getInitAliasDefaults,
-  shouldRunTemplatePostInit,
-} from "../../src/commands/init"
-
-describe("getInitAliasDefaults", () => {
-  test("derives standard aliases from components", () => {
-    expect(getInitAliasDefaults("@/components")).toEqual({
-      ui: "@/components/ui",
-      lib: "@/lib",
-      hooks: "@/hooks",
-      utils: "@/lib/utils",
-    })
-  })
-
-  test("derives package import aliases from #components", () => {
-    expect(getInitAliasDefaults("#components")).toEqual({
-      ui: "#components/ui",
-      lib: "#lib",
-      hooks: "#hooks",
-      utils: "#lib/utils",
-    })
-  })
-
-  test("derives sibling aliases for nested custom aliases", () => {
-    expect(getInitAliasDefaults("#custom/components")).toEqual({
-      ui: "#custom/components/ui",
-      lib: "#custom/lib",
-      hooks: "#custom/hooks",
-      utils: "#custom/lib/utils",
-    })
-  })
-
-  test("preserves existing aliases when components alias is unchanged", () => {
-    expect(
-      getInitAliasDefaults("#components", {
-        components: "#components",
-        ui: "#components/ui",
-        lib: "#lib",
-        hooks: "#hooks",
-        utils: "#lib/utils",
-      })
-    ).toEqual({
-      ui: "#components/ui",
-      lib: "#lib",
-      hooks: "#hooks",
-      utils: "#lib/utils",
-    })
-  })
-})
+import { shouldRunTemplatePostInit } from "../../src/commands/init"
 
 describe("shouldRunTemplatePostInit", () => {
   test("does not run post-init for existing projects with an explicit template", () => {