diff --git a/packages/shadcn/src/commands/init.ts b/packages/shadcn/src/commands/init.ts
index 544f48a597..6fa3fda23d 100644
--- a/packages/shadcn/src/commands/init.ts
+++ b/packages/shadcn/src/commands/init.ts
@@ -234,7 +234,7 @@ export const init = new Command()
               value: "create",
             },
             {
-              title: "No. Use defaults.",
+              title: "No. Continue without a preset.",
               value: "defaults",
             },
           ],
@@ -252,10 +252,7 @@ export const init = new Command()
           process.exit(0)
         }
 
-        // User chose defaults — continue with default init flow.
-        opts.defaults = true
-        opts.template = opts.template || "next"
-        opts.baseColor = opts.baseColor || "neutral"
+        // User chose no preset — continue with normal init flow.
       }
 
       const options = initOptionsSchema.parse({
diff --git a/packages/shadcn/src/utils/presets.test.ts b/packages/shadcn/src/utils/presets.test.ts
index cf4ccb779b..49841f8dc3 100644
--- a/packages/shadcn/src/utils/presets.test.ts
+++ b/packages/shadcn/src/utils/presets.test.ts
@@ -177,4 +177,70 @@ describe("handlePresetOption", () => {
 
     expect(result).toBeNull()
   })
+
+  it("should exit with error when preset name is empty string", async () => {
+    vi.mocked(getPreset).mockResolvedValue(null)
+    mockExit = vi
+      .spyOn(process, "exit")
+      .mockImplementation(() => undefined as never)
+
+    await handlePresetOption("", false)
+
+    expect(mockExit).toHaveBeenCalledWith(1)
+  })
+
+  it("should list available presets in error when not found", async () => {
+    const { logger } = await import("@/src/utils/logger")
+    const secondPreset = { ...mockPreset, name: "minimal", title: "Minimal" }
+    vi.mocked(getPreset).mockResolvedValue(null)
+    vi.mocked(getPresets).mockResolvedValue([mockPreset, secondPreset])
+    mockExit = vi
+      .spyOn(process, "exit")
+      .mockImplementation(() => undefined as never)
+
+    await handlePresetOption("nonexistent", false)
+
+    expect(logger.error).toHaveBeenCalledWith(
+      expect.stringContaining("default, minimal")
+    )
+  })
+
+  it("should pass rtl to create url when custom is selected", async () => {
+    vi.mocked(prompts).mockResolvedValue({ selectedPreset: "custom" })
+
+    await handlePresetOption(true, true)
+
+    expect(open).toHaveBeenCalledWith(expect.stringContaining("rtl=true"))
+  })
+
+  it("should select correct preset from multiple options", async () => {
+    const secondPreset = {
+      ...mockPreset,
+      name: "minimal",
+      title: "Minimal",
+      baseColor: "zinc",
+    }
+    vi.mocked(getPresets).mockResolvedValue([mockPreset, secondPreset])
+    vi.mocked(prompts).mockResolvedValue({ selectedPreset: "minimal" })
+
+    const result = await handlePresetOption(true, false)
+
+    expect(result).toEqual(secondPreset)
+  })
+
+  it("should propagate error when getPresets fails", async () => {
+    vi.mocked(getPresets).mockRejectedValue(new Error("Network error"))
+
+    await expect(handlePresetOption(true, false)).rejects.toThrow(
+      "Network error"
+    )
+  })
+
+  it("should propagate error when getPreset fails", async () => {
+    vi.mocked(getPreset).mockRejectedValue(new Error("Network error"))
+
+    await expect(handlePresetOption("default", false)).rejects.toThrow(
+      "Network error"
+    )
+  })
 })