diff --git a/.changeset/nine-steaks-rule.md b/.changeset/nine-steaks-rule.md
new file mode 100644
index 0000000000..08b9c10721
--- /dev/null
+++ b/.changeset/nine-steaks-rule.md
@@ -0,0 +1,5 @@
+---
+"shadcn": minor
+---
+
+add Next.js 16 support for init command
diff --git a/packages/shadcn/src/commands/init.ts b/packages/shadcn/src/commands/init.ts
index eed354146b..2832c3297b 100644
--- a/packages/shadcn/src/commands/init.ts
+++ b/packages/shadcn/src/commands/init.ts
@@ -80,7 +80,8 @@ export const initOptionsSchema = z.object({
         return true
       },
       {
-        message: "Invalid template. Please use 'next' or 'next-monorepo'.",
+        message:
+          "Invalid template. Please use 'next', 'next-16' or 'next-monorepo'.",
       }
     ),
   baseColor: z
@@ -109,7 +110,7 @@ export const init = new Command()
   .argument("[components...]", "names, url or local path to component")
   .option(
     "-t, --template <template>",
-    "the template to use. (next, next-monorepo)"
+    "the template to use. (next, next-16, next-monorepo)"
   )
   .option(
     "-b, --base-color <base-color>",
diff --git a/packages/shadcn/src/utils/create-project.test.ts b/packages/shadcn/src/utils/create-project.test.ts
index e09078a082..4614cf4eca 100644
--- a/packages/shadcn/src/utils/create-project.test.ts
+++ b/packages/shadcn/src/utils/create-project.test.ts
@@ -121,7 +121,33 @@ describe("createProject", () => {
 
     expect(execa).toHaveBeenCalledWith(
       "npx",
-      expect.arrayContaining(["create-next-app@latest", "/test/my-app"]),
+      expect.arrayContaining(["create-next-app@15", "/test/my-app"]),
+      expect.any(Object)
+    )
+  })
+
+  it("should create a Next.js 16 project when next-16 template is selected", async () => {
+    vi.mocked(prompts).mockResolvedValue({ type: "next-16", name: "my-app" })
+
+    const result = await createProject({
+      cwd: "/test",
+      force: false,
+      srcDir: false,
+    })
+
+    expect(result).toEqual({
+      projectPath: "/test/my-app",
+      projectName: "my-app",
+      template: TEMPLATES["next-16"],
+    })
+
+    expect(execa).toHaveBeenCalledWith(
+      "npx",
+      expect.arrayContaining([
+        "create-next-app@latest",
+        "/test/my-app",
+        "--no-react-compiler",
+      ]),
       expect.any(Object)
     )
   })
@@ -195,4 +221,38 @@ describe("createProject", () => {
 
     expect(mockExit).toHaveBeenCalledWith(1)
   })
+
+  it("should include --no-react-compiler flag for Next.js 16 (latest)", async () => {
+    vi.mocked(prompts).mockResolvedValue({ type: "next-16", name: "my-app" })
+
+    await createProject({
+      cwd: "/test",
+      force: false,
+      srcDir: false,
+    })
+
+    expect(execa).toHaveBeenCalledWith(
+      "npx",
+      expect.arrayContaining(["--no-react-compiler"]),
+      expect.any(Object)
+    )
+  })
+
+  it("should not include --no-react-compiler flag for Next.js 15", async () => {
+    vi.mocked(prompts).mockResolvedValue({ type: "next", name: "my-app" })
+
+    await createProject({
+      cwd: "/test",
+      force: false,
+      srcDir: false,
+    })
+
+    const execaCalls = vi.mocked(execa).mock.calls
+    const createNextCall = execaCalls.find(
+      (call) => Array.isArray(call[1]) && call[1].includes("create-next-app@15")
+    )
+
+    expect(createNextCall).toBeDefined()
+    expect(createNextCall?.[1]).not.toContain("--no-react-compiler")
+  })
 })
diff --git a/packages/shadcn/src/utils/create-project.ts b/packages/shadcn/src/utils/create-project.ts
index 3473e26835..2e6154663f 100644
--- a/packages/shadcn/src/utils/create-project.ts
+++ b/packages/shadcn/src/utils/create-project.ts
@@ -17,6 +17,7 @@ const MONOREPO_TEMPLATE_URL =
 
 export const TEMPLATES = {
   next: "next",
+  "next-16": "next-16",
   "next-monorepo": "next-monorepo",
 } as const
 
@@ -37,7 +38,7 @@ export async function createProject(
       : "next"
   let projectName: string =
     template === TEMPLATES.next ? "my-app" : "my-monorepo"
-  let nextVersion = "latest"
+  let nextVersion = "15"
 
   const isRemoteComponent =
     options.components?.length === 1 &&
@@ -72,7 +73,8 @@ export async function createProject(
           options.cwd
         )} does not contain a package.json file.\n  Would you like to start a new project?`,
         choices: [
-          { title: "Next.js", value: "next" },
+          { title: "Next.js 15", value: "next" },
+          { title: "Next.js 16", value: "next-16" },
           { title: "Next.js (Monorepo)", value: "next-monorepo" },
         ],
         initial: 0,
@@ -92,6 +94,10 @@ export async function createProject(
 
     template = type ?? template
     projectName = name
+
+    if (type === "next-16") {
+      nextVersion = "latest"
+    }
   }
 
   const packageManager = await getPackageManager(options.cwd, {
@@ -125,7 +131,7 @@ export async function createProject(
     process.exit(1)
   }
 
-  if (template === TEMPLATES.next) {
+  if (template === TEMPLATES.next || template === TEMPLATES["next-16"]) {
     await createNextProject(projectPath, {
       version: nextVersion,
       cwd: options.cwd,
@@ -157,7 +163,9 @@ async function createNextProject(
   }
 ) {
   const createSpinner = spinner(
-    `Creating a new Next.js project. This may take a few minutes.`
+    `Creating a new Next.js ${
+      options.version.startsWith("latest") ? "16" : "15"
+    } project. This may take a few minutes.`
   ).start()
 
   // Note: pnpm fails here. Fallback to npx with --use-PACKAGE-MANAGER.
@@ -179,6 +187,13 @@ async function createNextProject(
     args.push("--turbopack")
   }
 
+  if (
+    options.version.startsWith("latest") ||
+    options.version.startsWith("canary")
+  ) {
+    args.push("--no-react-compiler")
+  }
+
   try {
     await execa(
       "npx",
@@ -195,7 +210,11 @@ async function createNextProject(
     process.exit(1)
   }
 
-  createSpinner?.succeed("Creating a new Next.js project.")
+  createSpinner?.succeed(
+    `Creating a new Next.js ${
+      options.version.startsWith("latest") ? "16" : "15"
+    } project.`
+  )
 }
 
 async function createMonorepoProject(