diff --git a/README.md b/README.md
index 7c6ddb9..ca5efb3 100644
--- a/README.md
+++ b/README.md
@@ -32,6 +32,7 @@ banderole bundle /path/to/project --output /path/to/my-app --name my-app
 
 - [x] Support Linux, MacOS, and Windows for both x64 and arm64 architectures.
 - [x] Support custom node.js version based on project's `.nvmrc` and `.node-version`
+- [x] Support TypeScript projects with automatic detection of compiled output directories
 - [ ] Support workspaces (currently you need to install dependencies directly)
 
 ## License
diff --git a/simple-app/index.js b/simple-app/index.js
deleted file mode 100644
index 69ae7c8..0000000
--- a/simple-app/index.js
+++ /dev/null
@@ -1,3 +0,0 @@
-console.log("Hello from simple-app!");
-console.log("Node.js version:", process.version);
-console.log("Arguments:", process.argv.slice(2));
\ No newline at end of file
diff --git a/simple-app/package.json b/simple-app/package.json
deleted file mode 100644
index 2fcb1d1..0000000
--- a/simple-app/package.json
+++ /dev/null
@@ -1,5 +0,0 @@
-{
-  "name": "simple-app",
-  "version": "1.0.0",
-  "main": "index.js"
-}
\ No newline at end of file
diff --git a/src/bundler_simple.rs b/src/bundler.rs
similarity index 59%
rename from src/bundler_simple.rs
rename to src/bundler.rs
index c4fcdce..20db488 100644
--- a/src/bundler_simple.rs
+++ b/src/bundler.rs
@@ -25,32 +25,34 @@ pub async fn bundle_project(project_path: PathBuf, output_path: Option<PathBuf>,
     let pkg_json = project_path.join("package.json");
     anyhow::ensure!(pkg_json.exists(), "package.json not found in {}", project_path.display());
 
-    // 2. Read `package.json` for name/version (best-effort – fall back if absent).
-    let (app_name, app_version) = {
-        let content = fs::read_to_string(&pkg_json).context("Failed to read package.json")?;
-        let value: Value = serde_json::from_str(&content).context("Failed to parse package.json")?;
-        (
-            value["name"].as_str().unwrap_or("app").to_string(),
-            value["version"].as_str().unwrap_or("0.0.0").to_string(),
-        )
-    };
+    // 2. Read `package.json` for name/version and detect project structure
+    let package_content = fs::read_to_string(&pkg_json).context("Failed to read package.json")?;
+    let package_value: Value = serde_json::from_str(&package_content).context("Failed to parse package.json")?;
+    
+    let (app_name, app_version) = (
+        package_value["name"].as_str().unwrap_or("app").to_string(),
+        package_value["version"].as_str().unwrap_or("0.0.0").to_string(),
+    );
 
-    // 3. Determine Node version (via .nvmrc / .node-version or default to LTS 22.17.1).
+    // 3. Determine the correct source directory to bundle
+    let source_dir = determine_source_directory(&project_path, &package_value)?;
+    
+    // 4. Determine Node version (via .nvmrc / .node-version or default to LTS 22.17.1).
     let node_version = detect_node_version(&project_path).unwrap_or_else(|_| "22.17.1".into());
 
     println!(
         "Bundling {app_name} v{app_version} using Node.js v{node_version} for {plat}",
         plat = Platform::current()
     );
+    
+    if source_dir != project_path {
+        println!("Using source directory: {}", source_dir.display());
+    }
 
-    // 4. Resolve output path.
-    let output_path = output_path.unwrap_or_else(|| {
-        let ext = if Platform::current().is_windows() { ".exe" } else { "" };
-        let base_name = custom_name.as_ref().unwrap_or(&app_name);
-        PathBuf::from(format!("{base_name}{ext}"))
-    });
+    // 5. Resolve output path with collision handling
+    let output_path = resolve_output_path(output_path, &app_name, custom_name.as_deref())?;
 
-    // 5. Ensure portable Node binary is available.
+    // 6. Ensure portable Node binary is available.
     let node_downloader = NodeDownloader::new_with_persistent_cache(node_version.clone())?;
     let node_executable = node_downloader.ensure_node_binary().await?;
     let node_root = node_executable
@@ -59,21 +61,45 @@ pub async fn bundle_project(project_path: PathBuf, output_path: Option<PathBuf>,
         .parent()
         .unwrap_or_else(|| panic!("Unexpected node layout for {}", node_executable.display()));
 
-    // 6. Create an in-memory zip archive containing `/app` and `/node` directories.
+    // 7. Create an in-memory zip archive containing `/app` and `/node` directories.
     let mut zip_data: Vec<u8> = Vec::new();
     {
         let mut zip = ZipWriter::new(std::io::Cursor::new(&mut zip_data));
         let opts: zip::write::FileOptions<'static, ()> = zip::write::FileOptions::default()
             .compression_method(zip::CompressionMethod::Stored);
 
-        // Copy project directory.
-        add_dir_to_zip(&mut zip, &project_path, Path::new("app"), opts)?;
+        // Copy the determined source directory
+        add_dir_to_zip(&mut zip, &source_dir, Path::new("app"), opts)?;
+        
+        // If we're using a subdirectory, also copy the root package.json with adjusted paths
+        if source_dir != project_path {
+            let root_package_json = project_path.join("package.json");
+            if root_package_json.exists() {
+                zip.start_file("app/package.json", opts)?;
+                
+                // Read and modify package.json to adjust the main path
+                let content = fs::read_to_string(&root_package_json).context("Failed to read root package.json")?;
+                let mut package_value: Value = serde_json::from_str(&content).context("Failed to parse root package.json")?;
+                
+                // Adjust the main field if it points to the source directory
+                if let Some(main) = package_value["main"].as_str() {
+                    let main_path = project_path.join(main);
+                    if let Ok(relative_to_source) = main_path.strip_prefix(&source_dir) {
+                        package_value["main"] = Value::String(relative_to_source.to_string_lossy().to_string());
+                    }
+                }
+                
+                let modified_content = serde_json::to_string_pretty(&package_value)
+                    .context("Failed to serialize modified package.json")?;
+                zip.write_all(modified_content.as_bytes())?;
+            }
+        }
         // Copy Node runtime directory.
         add_dir_to_zip(&mut zip, node_root, Path::new("node"), opts)?;
         zip.finish()?;
     }
 
-    // 7. Build self-extracting launcher using a more reliable approach.
+    // 8. Build self-extracting launcher using a more reliable approach.
     create_self_extracting_executable(&output_path, zip_data, &app_name)?;
 
     println!("Bundle created at {}", output_path.display());
@@ -96,6 +122,150 @@ fn normalise_node_version(raw: &str) -> String {
     raw.trim_start_matches('v').to_owned()
 }
 
+/// Determine the correct source directory to bundle for the project.
+/// This handles TypeScript projects and other build configurations.
+fn determine_source_directory(project_path: &Path, package_json: &Value) -> Result<PathBuf> {
+    // Check if there's a specific main entry point that indicates a built project
+    if let Some(main) = package_json["main"].as_str() {
+        let main_path = project_path.join(main);
+        if let Some(parent) = main_path.parent() {
+            // If main points to a file in a subdirectory like dist/index.js or build/index.js
+            let parent_name = parent.file_name()
+                .and_then(|name| name.to_str())
+                .unwrap_or("");
+            
+            if ["dist", "build", "lib", "out"].contains(&parent_name) && parent.exists() {
+                return Ok(parent.to_path_buf());
+            }
+        }
+    }
+
+    // Check for TypeScript configuration
+    let tsconfig_path = project_path.join("tsconfig.json");
+    if tsconfig_path.exists() {
+        if let Ok(tsconfig) = read_tsconfig(&tsconfig_path) {
+            if let Some(out_dir) = tsconfig["compilerOptions"]["outDir"].as_str() {
+                let out_path = project_path.join(out_dir);
+                if out_path.exists() {
+                    return Ok(out_path);
+                }
+            }
+        }
+    }
+
+    // Check for common build output directories
+    for dir_name in ["dist", "build", "lib", "out"] {
+        let dir_path = project_path.join(dir_name);
+        if dir_path.exists() && dir_path.is_dir() {
+            // Verify it contains JavaScript files or a package.json
+            if contains_js_files(&dir_path) || dir_path.join("package.json").exists() {
+                return Ok(dir_path);
+            }
+        }
+    }
+
+    // Default to the project root
+    Ok(project_path.to_path_buf())
+}
+
+/// Read and parse tsconfig.json, handling extends configuration
+fn read_tsconfig(tsconfig_path: &Path) -> Result<Value> {
+    let content = fs::read_to_string(tsconfig_path)
+        .context("Failed to read tsconfig.json")?;
+    
+    // Remove comments for JSON parsing (simple approach)
+    let cleaned_content = content
+        .lines()
+        .filter(|line| !line.trim_start().starts_with("//"))
+        .collect::<Vec<_>>()
+        .join("\n");
+    
+    let mut config: Value = serde_json::from_str(&cleaned_content)
+        .context("Failed to parse tsconfig.json")?;
+
+    // Handle extends configuration
+    if let Some(extends) = config["extends"].as_str() {
+        let base_path = if extends.starts_with('.') {
+            tsconfig_path.parent().unwrap().join(extends)
+        } else {
+            // Could be a package reference, but for now we'll skip
+            return Ok(config);
+        };
+
+        // Add .json extension if not present
+        let base_path = if base_path.extension().is_none() {
+            base_path.with_extension("json")
+        } else {
+            base_path
+        };
+
+        if base_path.exists() {
+            if let Ok(base_config) = read_tsconfig(&base_path) {
+                // Merge base config with current config (simple merge)
+                if let (Some(base_obj), Some(current_obj)) = (base_config.as_object(), config.as_object()) {
+                    let mut merged = base_obj.clone();
+                    for (key, value) in current_obj {
+                        merged.insert(key.clone(), value.clone());
+                    }
+                    config = Value::Object(merged);
+                }
+            }
+        }
+    }
+
+    Ok(config)
+}
+
+/// Check if a directory contains JavaScript files
+fn contains_js_files(dir: &Path) -> bool {
+    if let Ok(entries) = fs::read_dir(dir) {
+        for entry in entries.flatten() {
+            if let Some(name) = entry.file_name().to_str() {
+                if name.ends_with(".js") || name.ends_with(".mjs") || name.ends_with(".cjs") {
+                    return true;
+                }
+            }
+        }
+    }
+    false
+}
+
+/// Resolve the output path, handling naming conflicts
+fn resolve_output_path(
+    output_path: Option<PathBuf>,
+    app_name: &str,
+    custom_name: Option<&str>,
+) -> Result<PathBuf> {
+    if let Some(path) = output_path {
+        // If explicit output path is provided, use it as-is
+        return Ok(path);
+    }
+
+    let ext = if Platform::current().is_windows() { ".exe" } else { "" };
+    let base_name = custom_name.unwrap_or(app_name);
+    let mut output_path = PathBuf::from(format!("{base_name}{ext}"));
+
+    // Check for conflicts and resolve them
+    let mut counter = 1;
+    while output_path.exists() {
+        if output_path.is_dir() {
+            // If it's a directory, append a suffix
+            output_path = PathBuf::from(format!("{base_name}-bundle{ext}"));
+            if !output_path.exists() {
+                break;
+            }
+        }
+        
+        // If it still exists (file or another directory), add a counter
+        if output_path.exists() {
+            output_path = PathBuf::from(format!("{base_name}-bundle-{counter}{ext}"));
+            counter += 1;
+        }
+    }
+
+    Ok(output_path)
+}
+
 // ────────────────────────────────────────────────────────────────────────────
 // Self-extracting executable generation using a more reliable approach
 // ────────────────────────────────────────────────────────────────────────────
diff --git a/src/main.rs b/src/main.rs
index c88c2a2..d212c28 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -1,4 +1,4 @@
-mod bundler_simple;
+mod bundler;
 mod node_downloader;
 mod platform;
 
@@ -38,7 +38,7 @@ async fn main() -> anyhow::Result<()> {
 
     match cli.command {
         Commands::Bundle { path, output, name } => {
-            bundler_simple::bundle_project(path, output, name).await?;
+            bundler::bundle_project(path, output, name).await?;
         }
     }
 
diff --git a/tests/integration_test.rs b/tests/integration_test.rs
index 4a1bc1f..bc59d4d 100644
--- a/tests/integration_test.rs
+++ b/tests/integration_test.rs
@@ -97,7 +97,7 @@ process.exit(0);"#;
         .args(["bundle", test_app_path.to_str().unwrap()])
         .current_dir(temp_dir.path());
 
-    let bundle_output = run_with_timeout(&mut bundle_cmd, Duration::from_secs(300))?;
+    let bundle_output = bundle_cmd.output()?;
 
     if !bundle_output.status.success() {
         println!(
@@ -341,6 +341,531 @@ process.exit(0);"#;
     );
 }
 
+#[tokio::test]
+async fn test_output_path_collision_handling() -> Result<(), Box<dyn std::error::Error>> {
+    let temp_dir = TempDir::new()?;
+    let test_app_path = temp_dir.path().join("collision-test-app");
+
+    // Create a simple test app
+    std::fs::create_dir_all(&test_app_path)?;
+
+    let package_json = r#"{
+  "name": "collision-test-app",
+  "version": "1.0.0",
+  "main": "index.js"
+}"#;
+
+    let index_js = r#"console.log("Hello from collision test app!");"#;
+
+    std::fs::write(test_app_path.join("package.json"), package_json)?;
+    std::fs::write(test_app_path.join("index.js"), index_js)?;
+
+    // Create a directory with the same name as the app to cause collision
+    std::fs::create_dir_all(temp_dir.path().join("collision-test-app"))?;
+
+    // Build banderole
+    let target_dir = std::env::current_dir()?.join("target");
+    let banderole_path = target_dir.join("debug/banderole");
+    
+    if !banderole_path.exists() {
+        let output = Command::new("cargo")
+            .args(["build"])
+            .output()
+            .expect("Failed to build banderole");
+
+        assert!(
+            output.status.success(),
+            "Failed to build banderole: {}",
+            String::from_utf8_lossy(&output.stderr)
+        );
+    }
+
+    // Bundle the test app
+    println!("Testing output path collision handling...");
+    
+    let mut bundle_cmd = Command::new(&banderole_path);
+    bundle_cmd
+        .args(["bundle", test_app_path.to_str().unwrap()])
+        .current_dir(temp_dir.path());
+
+    let bundle_output = run_with_timeout(&mut bundle_cmd, Duration::from_secs(300))?;
+
+    if !bundle_output.status.success() {
+        println!(
+            "Bundle stdout: {}",
+            String::from_utf8_lossy(&bundle_output.stdout)
+        );
+        println!(
+            "Bundle stderr: {}",
+            String::from_utf8_lossy(&bundle_output.stderr)
+        );
+        return Err("Bundle command failed".into());
+    }
+
+    // Verify that a bundle was created with collision-avoided name
+    let expected_executable = temp_dir.path().join(if cfg!(windows) {
+        "collision-test-app-bundle.exe"
+    } else {
+        "collision-test-app-bundle"
+    });
+
+    assert!(
+        expected_executable.exists(),
+        "Executable was not created with collision-avoided name: {}. Directory contents: {:?}",
+        expected_executable.display(),
+        std::fs::read_dir(temp_dir.path())
+            .unwrap()
+            .filter_map(Result::ok)
+            .map(|e| e.file_name())
+            .collect::<Vec<_>>()
+    );
+
+    // Test that the executable works
+    let output = Command::new(&expected_executable)
+        .output()?;
+
+    let stdout = String::from_utf8_lossy(&output.stdout);
+    println!("Collision test output: {}", stdout);
+
+    assert!(output.status.success(), "Collision test executable failed");
+    assert!(
+        stdout.contains("Hello from collision test app!"),
+        "Expected greeting not found in collision test output"
+    );
+
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_typescript_project_with_dist() -> Result<(), Box<dyn std::error::Error>> {
+    let temp_dir = TempDir::new()?;
+    let test_app_path = temp_dir.path().join("ts-test-app");
+
+    // Create a TypeScript project structure
+    std::fs::create_dir_all(&test_app_path)?;
+    std::fs::create_dir_all(test_app_path.join("dist"))?;
+
+    let package_json = r#"{
+  "name": "ts-test-app",
+  "version": "1.0.0",
+  "main": "dist/index.js",
+  "scripts": {
+    "build": "tsc"
+  }
+}"#;
+
+    let tsconfig_json = r#"{
+  "compilerOptions": {
+    "target": "ES2020",
+    "module": "commonjs",
+    "outDir": "./dist",
+    "rootDir": "./src",
+    "strict": true
+  }
+}"#;
+
+    let src_index_ts = r#"console.log("Hello from TypeScript app!");
+console.log("Node version:", process.version);
+console.log("This should come from the dist directory");"#;
+
+    let dist_index_js = r#"console.log("Hello from TypeScript app!");
+console.log("Node version:", process.version);
+console.log("This should come from the dist directory");
+try {
+    const marker = require('./marker.js');
+    console.log("Marker file found:", marker.source);
+} catch (e) {
+    console.log("Marker file not found");
+}"#;
+
+    // Create a distinctive file in dist to verify it was used as source
+    let dist_marker = r#"module.exports = { source: "dist" };"#;
+
+    // Write project files
+    std::fs::write(test_app_path.join("package.json"), package_json)?;
+    std::fs::write(test_app_path.join("tsconfig.json"), tsconfig_json)?;
+    std::fs::create_dir_all(test_app_path.join("src"))?;
+    std::fs::write(test_app_path.join("src/index.ts"), src_index_ts)?;
+    std::fs::write(test_app_path.join("dist/index.js"), dist_index_js)?;
+    std::fs::write(test_app_path.join("dist/marker.js"), dist_marker)?;
+
+    // Build banderole
+    let target_dir = std::env::current_dir()?.join("target");
+    let banderole_path = target_dir.join("debug/banderole");
+    
+    if !banderole_path.exists() {
+        let output = Command::new("cargo")
+            .args(["build"])
+            .output()
+            .expect("Failed to build banderole");
+
+        assert!(
+            output.status.success(),
+            "Failed to build banderole: {}",
+            String::from_utf8_lossy(&output.stderr)
+        );
+    }
+
+    // Bundle the TypeScript project
+    println!("Testing TypeScript project bundling...");
+    
+    let mut bundle_cmd = Command::new(&banderole_path);
+    bundle_cmd
+        .args(["bundle", test_app_path.to_str().unwrap()])
+        .current_dir(temp_dir.path());
+
+    let bundle_output = run_with_timeout(&mut bundle_cmd, Duration::from_secs(300))?;
+
+    if !bundle_output.status.success() {
+        println!(
+            "Bundle stdout: {}",
+            String::from_utf8_lossy(&bundle_output.stdout)
+        );
+        println!(
+            "Bundle stderr: {}",
+            String::from_utf8_lossy(&bundle_output.stderr)
+        );
+        return Err("TypeScript bundle command failed".into());
+    }
+
+    // We'll verify that the dist directory was used by running the executable
+    // and checking that it includes our marker file
+
+    // Find the created executable (may have collision avoidance suffix)
+    let mut executable_path = temp_dir.path().join(if cfg!(windows) {
+        "ts-test-app.exe"
+    } else {
+        "ts-test-app"
+    });
+    
+    // Check if collision avoidance was used (need to check if it's a file, not just exists)
+    if !executable_path.exists() || !executable_path.is_file() {
+        executable_path = temp_dir.path().join(if cfg!(windows) {
+            "ts-test-app-bundle.exe"
+        } else {
+            "ts-test-app-bundle"
+        });
+    }
+    
+
+
+    assert!(
+        executable_path.exists(),
+        "TypeScript executable was not created: {}. Found files: {:?}",
+        executable_path.display(),
+        std::fs::read_dir(temp_dir.path()).unwrap()
+            .filter_map(Result::ok)
+            .map(|e| e.file_name())
+            .collect::<Vec<_>>()
+    );
+
+    // Make executable on Unix
+    #[cfg(unix)]
+    {
+        use std::os::unix::fs::PermissionsExt;
+        let perms = std::fs::metadata(&executable_path)?.permissions();
+        let mut perms = perms.clone();
+        perms.set_mode(0o755);
+        std::fs::set_permissions(&executable_path, perms)?;
+    }
+
+    // Test the executable
+    let output = Command::new(&executable_path)
+        .output()?;
+
+    let stdout = String::from_utf8_lossy(&output.stdout);
+    println!("TypeScript test output: {}", stdout);
+
+    assert!(output.status.success(), "TypeScript executable failed");
+    assert!(
+        stdout.contains("Hello from TypeScript app!"),
+        "Expected greeting not found in TypeScript output"
+    );
+    assert!(
+        stdout.contains("This should come from the dist directory"),
+        "Should be running from dist directory"
+    );
+    assert!(
+        stdout.contains("Marker file found: dist"),
+        "Should have included marker file from dist directory, indicating dist was used as source"
+    );
+
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_typescript_project_with_tsconfig_outdir() -> Result<(), Box<dyn std::error::Error>> {
+    let temp_dir = TempDir::new()?;
+    let test_app_path = temp_dir.path().join("ts-outdir-test");
+
+    // Create a TypeScript project with custom outDir
+    std::fs::create_dir_all(&test_app_path)?;
+    std::fs::create_dir_all(test_app_path.join("build"))?;
+
+    let package_json = r#"{
+  "name": "ts-outdir-test",
+  "version": "1.0.0",
+  "main": "index.js"
+}"#;
+
+    let tsconfig_json = r#"{
+  "compilerOptions": {
+    "target": "ES2020",
+    "module": "commonjs",
+    "outDir": "./build",
+    "rootDir": "./src"
+  }
+}"#;
+
+    let build_index_js = r#"console.log("Hello from custom outDir!");
+console.log("This comes from the build directory");
+try {
+    const marker = require('./marker.js');
+    console.log("Marker file found:", marker.source);
+} catch (e) {
+    console.log("Marker file not found");
+}"#;
+
+    let build_marker = r#"module.exports = { source: "build" };"#;
+
+    // Write project files
+    std::fs::write(test_app_path.join("package.json"), package_json)?;
+    std::fs::write(test_app_path.join("tsconfig.json"), tsconfig_json)?;
+    std::fs::write(test_app_path.join("build/index.js"), build_index_js)?;
+    std::fs::write(test_app_path.join("build/marker.js"), build_marker)?;
+
+    // Build banderole
+    let target_dir = std::env::current_dir()?.join("target");
+    let banderole_path = target_dir.join("debug/banderole");
+    
+    if !banderole_path.exists() {
+        let output = Command::new("cargo")
+            .args(["build"])
+            .output()
+            .expect("Failed to build banderole");
+
+        assert!(
+            output.status.success(),
+            "Failed to build banderole: {}",
+            String::from_utf8_lossy(&output.stderr)
+        );
+    }
+
+    // Bundle the project
+    println!("Testing TypeScript project with custom outDir...");
+    
+    let mut bundle_cmd = Command::new(&banderole_path);
+    bundle_cmd
+        .args(["bundle", test_app_path.to_str().unwrap()])
+        .current_dir(temp_dir.path());
+
+    let bundle_output = bundle_cmd.output()?;
+
+    if !bundle_output.status.success() {
+        println!(
+            "Bundle stdout: {}",
+            String::from_utf8_lossy(&bundle_output.stdout)
+        );
+        println!(
+            "Bundle stderr: {}",
+            String::from_utf8_lossy(&bundle_output.stderr)
+        );
+        return Err("Custom outDir bundle command failed".into());
+    }
+
+    // We'll verify that the build directory was used by checking the marker file
+
+    // Find the created executable (may have collision avoidance suffix)
+    let mut executable_path = temp_dir.path().join(if cfg!(windows) {
+        "ts-outdir-test.exe"
+    } else {
+        "ts-outdir-test"
+    });
+    
+    // Check if collision avoidance was used (need to check if it's a file, not just exists)
+    if !executable_path.exists() || !executable_path.is_file() {
+        executable_path = temp_dir.path().join(if cfg!(windows) {
+            "ts-outdir-test-bundle.exe"
+        } else {
+            "ts-outdir-test-bundle"
+        });
+    }
+
+    assert!(executable_path.exists(), "Custom outDir executable was not created");
+
+    // Make executable on Unix
+    #[cfg(unix)]
+    {
+        use std::os::unix::fs::PermissionsExt;
+        let perms = std::fs::metadata(&executable_path)?.permissions();
+        let mut perms = perms.clone();
+        perms.set_mode(0o755);
+        std::fs::set_permissions(&executable_path, perms)?;
+    }
+
+    let output = Command::new(&executable_path)
+        .output()?;
+
+    let stdout = String::from_utf8_lossy(&output.stdout);
+    println!("Custom outDir test output: {}", stdout);
+
+    assert!(output.status.success(), "Custom outDir executable failed");
+    assert!(
+        stdout.contains("Hello from custom outDir!"),
+        "Expected greeting not found"
+    );
+    assert!(
+        stdout.contains("This comes from the build directory"),
+        "Should be running from build directory"
+    );
+    assert!(
+        stdout.contains("Marker file found: build"),
+        "Should have included marker file from build directory, indicating build was used as source"
+    );
+
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_typescript_project_with_extends() -> Result<(), Box<dyn std::error::Error>> {
+    let temp_dir = TempDir::new()?;
+    let test_app_path = temp_dir.path().join("ts-extends-test");
+
+    // Create a TypeScript project with extends configuration
+    std::fs::create_dir_all(&test_app_path)?;
+    std::fs::create_dir_all(test_app_path.join("lib"))?;
+
+    let package_json = r#"{
+  "name": "ts-extends-test",
+  "version": "1.0.0",
+  "main": "index.js"
+}"#;
+
+    let base_tsconfig = r#"{
+  "compilerOptions": {
+    "target": "ES2020",
+    "module": "commonjs",
+    "outDir": "./lib"
+  }
+}"#;
+
+    let tsconfig_json = r#"{
+  "extends": "./tsconfig.base.json",
+  "compilerOptions": {
+    "strict": true
+  }
+}"#;
+
+    let lib_index_js = r#"console.log("Hello from extended tsconfig!");
+console.log("This comes from the lib directory via extends");
+try {
+    const marker = require('./marker.js');
+    console.log("Marker file found:", marker.source);
+} catch (e) {
+    console.log("Marker file not found");
+}"#;
+
+    let lib_marker = r#"module.exports = { source: "lib" };"#;
+
+    // Write project files
+    std::fs::write(test_app_path.join("package.json"), package_json)?;
+    std::fs::write(test_app_path.join("tsconfig.base.json"), base_tsconfig)?;
+    std::fs::write(test_app_path.join("tsconfig.json"), tsconfig_json)?;
+    std::fs::write(test_app_path.join("lib/index.js"), lib_index_js)?;
+    std::fs::write(test_app_path.join("lib/marker.js"), lib_marker)?;
+
+    // Build banderole
+    let target_dir = std::env::current_dir()?.join("target");
+    let banderole_path = target_dir.join("debug/banderole");
+    
+    if !banderole_path.exists() {
+        let output = Command::new("cargo")
+            .args(["build"])
+            .output()
+            .expect("Failed to build banderole");
+
+        assert!(
+            output.status.success(),
+            "Failed to build banderole: {}",
+            String::from_utf8_lossy(&output.stderr)
+        );
+    }
+
+    // Bundle the project
+    println!("Testing TypeScript project with extends...");
+    
+    let mut bundle_cmd = Command::new(&banderole_path);
+    bundle_cmd
+        .args(["bundle", test_app_path.to_str().unwrap()])
+        .current_dir(temp_dir.path());
+
+    let bundle_output = bundle_cmd.output()?;
+
+    if !bundle_output.status.success() {
+        println!(
+            "Bundle stdout: {}",
+            String::from_utf8_lossy(&bundle_output.stdout)
+        );
+        println!(
+            "Bundle stderr: {}",
+            String::from_utf8_lossy(&bundle_output.stderr)
+        );
+        return Err("Extends tsconfig bundle command failed".into());
+    }
+
+    // We'll verify that the lib directory was used by checking the marker file
+
+    // Find the created executable (may have collision avoidance suffix)
+    let mut executable_path = temp_dir.path().join(if cfg!(windows) {
+        "ts-extends-test.exe"
+    } else {
+        "ts-extends-test"
+    });
+    
+    // Check if collision avoidance was used (need to check if it's a file, not just exists)
+    if !executable_path.exists() || !executable_path.is_file() {
+        executable_path = temp_dir.path().join(if cfg!(windows) {
+            "ts-extends-test-bundle.exe"
+        } else {
+            "ts-extends-test-bundle"
+        });
+    }
+
+    assert!(executable_path.exists(), "Extends tsconfig executable was not created");
+
+    // Make executable on Unix
+    #[cfg(unix)]
+    {
+        use std::os::unix::fs::PermissionsExt;
+        let perms = std::fs::metadata(&executable_path)?.permissions();
+        let mut perms = perms.clone();
+        perms.set_mode(0o755);
+        std::fs::set_permissions(&executable_path, perms)?;
+    }
+
+    let output = Command::new(&executable_path)
+        .output()?;
+
+    let stdout = String::from_utf8_lossy(&output.stdout);
+    println!("Extends tsconfig test output: {}", stdout);
+
+    assert!(output.status.success(), "Extends tsconfig executable failed");
+    assert!(
+        stdout.contains("Hello from extended tsconfig!"),
+        "Expected greeting not found"
+    );
+    assert!(
+        stdout.contains("This comes from the lib directory via extends"),
+        "Should be running from lib directory"
+    );
+    assert!(
+        stdout.contains("Marker file found: lib"),
+        "Should have included marker file from lib directory, indicating lib was used as source"
+    );
+
+    Ok(())
+}
+
 fn run_with_timeout(cmd: &mut Command, timeout: Duration) -> std::io::Result<std::process::Output> {
     use std::sync::mpsc;
     use std::thread;