diff --git a/.clinerules b/.clinerules
index 173d58a..5adae5b 100644
--- a/.clinerules
+++ b/.clinerules
@@ -1520,3 +1520,37 @@ Starting with Subtask 1 now..."
 6. **Learn from errors** - If you hit limits, that task was too large
 
 **Remember**: It's better to complete 3 small subtasks successfully than fail on 1 large task repeatedly.
+
+---
+
+## 16. Code Comments Language
+
+**All code comments must be in English**, regardless of the user's language. This ensures:
+
+- Consistent codebase for international collaboration
+- Better compatibility with AI tools
+- Easier code review and maintenance
+
+```typescript
+// ✅ GOOD: English comments
+function calculateTotal(items: Item[]): number {
+  // Sum up all item prices
+  return items.reduce((sum, item) => sum + item.price, 0);
+}
+
+// ❌ BAD: Non-English comments
+function calculateTotal(items: Item[]): number {
+  // Additionner tous les prix des articles
+  return items.reduce((sum, item) => sum + item.price, 0);
+}
+```
+
+This rule applies to:
+
+- Inline comments
+- Function/class documentation (JSDoc)
+- Block comments explaining logic
+- TODO/FIXME notes
+- Commit messages (covered in Git Workflow section)
+
+**Exception**: User-facing strings in UI components may be in any language (they will be localized later).
diff --git a/dev-docs/tasks/phase-3-editor-ux-overhaul/TASK-009-template-system-refactoring/README.md b/dev-docs/tasks/phase-3-editor-ux-overhaul/TASK-009-template-system-refactoring/README.md
new file mode 100644
index 0000000..70706c7
--- /dev/null
+++ b/dev-docs/tasks/phase-3-editor-ux-overhaul/TASK-009-template-system-refactoring/README.md
@@ -0,0 +1,255 @@
+# TASK-009: Template System Refactoring
+
+**Status**: 📋 Planned  
+**Priority**: Medium  
+**Complexity**: Medium  
+**Estimated Effort**: 2-3 days
+
+## Context
+
+The current project template system has several issues:
+
+- Path resolution fails in webpack bundles (`__dirname` doesn't work correctly)
+- No proper template provider for local/bundled templates
+- Template loading depends on external URLs or fragile file paths
+- New projects currently use a programmatic workaround (minimal project.json generation)
+
+## Current Temporary Solution
+
+As of January 2026, new projects are created programmatically in `LocalProjectsModel.ts`:
+
+```typescript
+// Create a minimal Hello World project programmatically
+const minimalProject = {
+  name: name,
+  components: [
+    /* basic App component with Text node */
+  ],
+  settings: {},
+  metadata: {
+    /* ... */
+  }
+};
+```
+
+This works but is not ideal for:
+
+- Creating rich starter templates
+- Allowing custom/community templates
+- Supporting multiple bundled templates (e.g., "Hello World", "Dashboard", "E-commerce")
+
+## Goals
+
+### Primary Goals
+
+1. **Robust Template Loading**: Support templates in both development and production
+2. **Local Templates**: Bundle templates with the editor that work reliably
+3. **Template Gallery**: Support multiple built-in templates
+4. **Custom Templates**: Allow users to create and share templates
+
+### Secondary Goals
+
+1. Template versioning and migration
+2. Template metadata (screenshots, descriptions, categories)
+3. Template validation before project creation
+4. Template marketplace integration (future)
+
+## Proposed Architecture
+
+### 1. Template Storage Options
+
+**Option A: Embedded Templates (Recommended)**
+
+- Store templates as JSON structures in TypeScript files
+- Import and use directly (no file I/O)
+- Bundle with webpack automatically
+- Example:
+
+```typescript
+export const helloWorldTemplate: ProjectTemplate = {
+  name: 'Hello World',
+  components: [
+    /* ... */
+  ],
+  settings: {
+    /* ... */
+  }
+};
+```
+
+**Option B: Asset-Based Templates**
+
+- Store templates in `packages/noodl-editor/assets/templates/`
+- Copy to build output during webpack build
+- Use proper asset loading (webpack copy plugin)
+- Access via runtime asset path resolution
+
+**Option C: Hybrid Approach**
+
+- Small templates: embedded in code
+- Large templates: assets with proper bundling
+- Choose based on template size/complexity
+
+### 2. Template Provider Architecture
+
+```typescript
+interface ProjectTemplate {
+  id: string;
+  name: string;
+  description: string;
+  category: string;
+  version: string;
+  thumbnail?: string;
+
+  // Template content
+  components: ComponentDefinition[];
+  settings: ProjectSettings;
+  metadata?: Record<string, unknown>;
+}
+
+interface TemplateProvider {
+  name: string;
+  list(): Promise<ProjectTemplate[]>;
+  get(id: string): Promise<ProjectTemplate>;
+  canHandle(id: string): boolean;
+}
+
+class EmbeddedTemplateProvider implements TemplateProvider {
+  // Returns templates bundled with the editor
+}
+
+class RemoteTemplateProvider implements TemplateProvider {
+  // Fetches templates from Noodl docs/CDN
+}
+
+class LocalFileTemplateProvider implements TemplateProvider {
+  // Loads templates from user's filesystem (for custom templates)
+}
+```
+
+### 3. Template Manager
+
+```typescript
+class TemplateManager {
+  private providers: TemplateProvider[];
+
+  async listTemplates(filter?: TemplateFilter): Promise<ProjectTemplate[]> {
+    // Aggregates from all providers
+  }
+
+  async getTemplate(id: string): Promise<ProjectTemplate> {
+    // Finds the right provider and fetches template
+  }
+
+  async createProjectFromTemplate(template: ProjectTemplate, projectPath: string, projectName: string): Promise<void> {
+    // Creates project structure from template
+  }
+}
+```
+
+## Implementation Plan
+
+### Phase 1: Foundation (1 day)
+
+- [ ] Define `ProjectTemplate` interface
+- [ ] Create `TemplateProvider` interface
+- [ ] Implement `EmbeddedTemplateProvider`
+- [ ] Create `TemplateManager` class
+
+### Phase 2: Built-in Templates (1 day)
+
+- [ ] Convert current Hello World to embedded template
+- [ ] Add "Blank" template (truly empty)
+- [ ] Add "Dashboard" template (with nav + pages)
+- [ ] Add template metadata and thumbnails
+
+### Phase 3: Integration (0.5 days)
+
+- [ ] Update `LocalProjectsModel` to use `TemplateManager`
+- [ ] Remove programmatic project creation workaround
+- [ ] Update project creation UI to show template gallery
+- [ ] Add template preview/selection dialog
+
+### Phase 4: Advanced Features (0.5 days)
+
+- [ ] Implement template validation
+- [ ] Add template export functionality (for users to create templates)
+- [ ] Support template variables/parameters
+- [ ] Add template upgrade/migration system
+
+## Files to Modify
+
+### New Files
+
+- `packages/noodl-editor/src/editor/src/models/template/ProjectTemplate.ts`
+- `packages/noodl-editor/src/editor/src/models/template/TemplateProvider.ts`
+- `packages/noodl-editor/src/editor/src/models/template/TemplateManager.ts`
+- `packages/noodl-editor/src/editor/src/models/template/providers/EmbeddedTemplateProvider.ts`
+- `packages/noodl-editor/src/editor/src/models/template/templates/` (folder for template definitions)
+  - `hello-world.ts`
+  - `blank.ts`
+  - `dashboard.ts`
+
+### Existing Files to Update
+
+- `packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts`
+  - Replace programmatic project creation with template system
+- `packages/noodl-editor/src/editor/src/pages/ProjectsPage/ProjectsPage.tsx`
+  - Add template selection UI
+- `packages/noodl-editor/src/editor/src/utils/forge/` (might be refactored or replaced)
+
+## Testing Strategy
+
+### Unit Tests
+
+- Template provider loading
+- Template validation
+- Project creation from template
+- Template merging/variables
+
+### Integration Tests
+
+- Create project from each bundled template
+- Verify all templates load correctly
+- Test template provider fallback
+
+### Manual Tests
+
+- Create projects from templates in dev mode
+- Create projects from templates in production build
+- Verify all components and nodes are created correctly
+- Test custom template import/export
+
+## Success Criteria
+
+- [ ] New projects can be created from bundled templates reliably
+- [ ] Templates work identically in dev and production
+- [ ] At least 3 high-quality bundled templates available
+- [ ] Template system is extensible for future templates
+- [ ] No file path resolution issues
+- [ ] User can export their project as a template
+- [ ] Documentation for creating custom templates
+
+## Future Enhancements
+
+- **Template Marketplace**: Browse and download community templates
+- **Template Packages**: Include external dependencies/modules
+- **Template Generator**: AI-powered template creation
+- **Template Forking**: Modify and save as new template
+- **Template Versioning**: Update templates without breaking existing projects
+
+## References
+
+- Current implementation: `packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts` (lines 295-360)
+- Failed attempt: `packages/noodl-editor/src/editor/src/utils/forge/template/providers/local-template-provider.ts`
+- Template registry: `packages/noodl-editor/src/editor/src/utils/forge/index.ts`
+
+## Related Tasks
+
+- None yet (this is the first comprehensive template system task)
+
+---
+
+**Created**: January 8, 2026  
+**Last Updated**: January 8, 2026  
+**Assignee**: TBD
diff --git a/packages/noodl-editor/src/editor/src/contexts/NodeGraphContext/NodeGraphContext.tsx b/packages/noodl-editor/src/editor/src/contexts/NodeGraphContext/NodeGraphContext.tsx
index add9451..6de82a1 100644
--- a/packages/noodl-editor/src/editor/src/contexts/NodeGraphContext/NodeGraphContext.tsx
+++ b/packages/noodl-editor/src/editor/src/contexts/NodeGraphContext/NodeGraphContext.tsx
@@ -86,6 +86,9 @@ export function NodeGraphContextProvider({ children }: NodeGraphContextProviderP
     if (!nodeGraph) return;
 
     function _update(model: ComponentModel) {
+      // Guard against undefined model (happens on empty projects)
+      if (!model) return;
+
       if (isComponentModel_CloudRuntime(model)) {
         setActive('backend');
         if (SidebarModel.instance.ActiveId === 'components') {
diff --git a/packages/noodl-editor/src/editor/src/models/projectmodel.modules.ts b/packages/noodl-editor/src/editor/src/models/projectmodel.modules.ts
index e6c36dd..c0998c7 100644
--- a/packages/noodl-editor/src/editor/src/models/projectmodel.modules.ts
+++ b/packages/noodl-editor/src/editor/src/models/projectmodel.modules.ts
@@ -1,4 +1,5 @@
 import { filesystem } from '@noodl/platform';
+
 import { bugtracker } from '@noodl-utils/bugtracker';
 
 // TODO: Can we merge this with ProjectModules ?
@@ -27,21 +28,32 @@ export async function listProjectModules(project: TSFixme /* ProjectModel */): P
   }[] = [];
 
   const modulesPath = project._retainedProjectDirectory + '/noodl_modules';
-  const files = await filesystem.listDirectory(modulesPath);
 
-  await Promise.all(
-    files.map(async (file) => {
-      if (file.isDirectory) {
-        const manifestPath = filesystem.join(modulesPath, file.name, 'manifest.json');
-        const manifest = await filesystem.readJson(manifestPath);
+  try {
+    const files = await filesystem.listDirectory(modulesPath);
 
-        modules.push({
-          name: file.name,
-          manifest
-        });
-      }
-    })
-  );
+    await Promise.all(
+      files.map(async (file) => {
+        if (file.isDirectory) {
+          const manifestPath = filesystem.join(modulesPath, file.name, 'manifest.json');
+          const manifest = await filesystem.readJson(manifestPath);
+
+          modules.push({
+            name: file.name,
+            manifest
+          });
+        }
+      })
+    );
+  } catch (error) {
+    // noodl_modules folder doesn't exist (fresh/empty project)
+    if (error.code === 'ENOENT') {
+      console.log('noodl_modules folder not found (fresh project), skipping module loading');
+      return [];
+    }
+    // Re-throw other errors
+    throw error;
+  }
 
   return modules;
 }
@@ -50,40 +62,51 @@ export async function readProjectModules(project: TSFixme /* ProjectModel */): P
   bugtracker.debug('ProjectModel.readModules');
 
   const modulesPath = project._retainedProjectDirectory + '/noodl_modules';
-  const files = await filesystem.listDirectory(modulesPath);
 
   project.modules = [];
   project.previews = [];
   project.componentAnnotations = {};
 
-  await Promise.all(
-    files.map(async (file) => {
-      if (file.isDirectory) {
-        const manifestPath = filesystem.join(modulesPath, file.name, 'manifest.json');
-        const manifest = await filesystem.readJson(manifestPath);
+  try {
+    const files = await filesystem.listDirectory(modulesPath);
 
-        if (manifest) {
-          manifest.name = file.name;
-          project.modules.push(manifest);
+    await Promise.all(
+      files.map(async (file) => {
+        if (file.isDirectory) {
+          const manifestPath = filesystem.join(modulesPath, file.name, 'manifest.json');
+          const manifest = await filesystem.readJson(manifestPath);
 
-          if (manifest.componentAnnotations) {
-            for (var comp in manifest.componentAnnotations) {
-              var ca = manifest.componentAnnotations[comp];
+          if (manifest) {
+            manifest.name = file.name;
+            project.modules.push(manifest);
 
-              if (!project.componentAnnotations[comp]) project.componentAnnotations[comp] = {};
-              for (var key in ca) project.componentAnnotations[comp][key] = ca[key];
+            if (manifest.componentAnnotations) {
+              for (var comp in manifest.componentAnnotations) {
+                var ca = manifest.componentAnnotations[comp];
+
+                if (!project.componentAnnotations[comp]) project.componentAnnotations[comp] = {};
+                for (var key in ca) project.componentAnnotations[comp][key] = ca[key];
+              }
+            }
+
+            if (manifest.previews) {
+              project.previews = manifest.previews.concat(project.previews);
             }
           }
-
-          if (manifest.previews) {
-            project.previews = manifest.previews.concat(project.previews);
-          }
         }
-      }
-    })
-  );
+      })
+    );
 
-  console.log(`Loaded ${project.modules.length} modules`);
+    console.log(`Loaded ${project.modules.length} modules`);
+  } catch (error) {
+    // noodl_modules folder doesn't exist (fresh/empty project)
+    if (error.code === 'ENOENT') {
+      console.log('noodl_modules folder not found (fresh project), skipping module loading');
+      return [];
+    }
+    // Re-throw other errors
+    throw error;
+  }
 
   return project.modules;
 }
diff --git a/packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts b/packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts
index c6cdcc8..d602d70 100644
--- a/packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts
+++ b/packages/noodl-editor/src/editor/src/utils/LocalProjectsModel.ts
@@ -260,36 +260,67 @@ export class LocalProjectsModel extends Model {
         });
       });
     } else {
-      // Default template path
-      const defaultTemplatePath = './external/projecttemplates/helloworld.zip';
-
-      // Check if template exists, otherwise create an empty project
-      if (filesystem.exists(defaultTemplatePath)) {
-        this._unzipAndLaunchProject(defaultTemplatePath, dirEntry, fn, options);
-      } else {
-        console.warn('Default project template not found, creating empty project');
-
-        // Create minimal project.json for empty project
-        const minimalProject = {
-          name: name,
-          components: [],
-          settings: {}
-        };
-
-        await filesystem.writeFile(filesystem.join(dirEntry, 'project.json'), JSON.stringify(minimalProject, null, 2));
-
-        // Load the newly created empty project
-        projectFromDirectory(dirEntry, (project) => {
-          if (!project) {
-            fn();
-            return;
+      // Create a minimal Hello World project programmatically
+      // This is a temporary solution until TASK-009-template-system-refactoring is implemented
+      const minimalProject = {
+        name: name,
+        components: [
+          {
+            name: 'App',
+            ports: [],
+            visual: true,
+            visualStateTransitions: [],
+            nodes: [
+              {
+                id: guid(),
+                type: 'Group',
+                x: 0,
+                y: 0,
+                parameters: {},
+                ports: [],
+                children: [
+                  {
+                    id: guid(),
+                    type: 'Text',
+                    x: 50,
+                    y: 50,
+                    parameters: {
+                      text: 'Hello World!'
+                    },
+                    ports: [],
+                    children: []
+                  }
+                ]
+              }
+            ]
           }
+        ],
+        settings: {},
+        metadata: {
+          title: name,
+          description: 'A new Noodl project'
+        }
+      };
 
-          project.name = name;
-          this._addProject(project);
-          fn(project);
+      await filesystem.writeFile(filesystem.join(dirEntry, 'project.json'), JSON.stringify(minimalProject, null, 2));
+
+      // Load the newly created project
+      projectFromDirectory(dirEntry, (project) => {
+        if (!project) {
+          fn();
+          return;
+        }
+
+        project.name = name;
+        this._addProject(project);
+        project.toDirectory(project._retainedProjectDirectory, (res) => {
+          if (res.result === 'success') {
+            fn(project);
+          } else {
+            fn();
+          }
         });
-      }
+      });
     }
   }
 
diff --git a/packages/noodl-editor/src/editor/src/utils/NodeGraph/index.ts b/packages/noodl-editor/src/editor/src/utils/NodeGraph/index.ts
index b5d185d..7dd1354 100644
--- a/packages/noodl-editor/src/editor/src/utils/NodeGraph/index.ts
+++ b/packages/noodl-editor/src/editor/src/utils/NodeGraph/index.ts
@@ -3,6 +3,9 @@ import { NodeGraphNode } from '@noodl-models/nodegraphmodel';
 import { RuntimeType } from '@noodl-models/nodelibrary/NodeLibraryData';
 
 export function getComponentModelRuntimeType(node: ComponentModel) {
+  // Guard against undefined node (happens on empty projects)
+  if (!node) return RuntimeType.Browser;
+
   const name = node.name;
 
   if (name.startsWith('/#__cloud__/')) {
diff --git a/packages/noodl-editor/src/editor/src/utils/compilation/context/pages.ts b/packages/noodl-editor/src/editor/src/utils/compilation/context/pages.ts
index 019a97b..666a63c 100644
--- a/packages/noodl-editor/src/editor/src/utils/compilation/context/pages.ts
+++ b/packages/noodl-editor/src/editor/src/utils/compilation/context/pages.ts
@@ -154,6 +154,11 @@ export async function getPageRoutes(project: ProjectModel, options: IndexedPages
     }
   });
 
+  // Check if traverser has valid root (empty project case)
+  if (!traverser.root) {
+    return { routes: [], pages: [], dynamicHash: {} };
+  }
+
   // Fetch all the Page nodes.
   const pages: TraverseNode[] = traverser.filter((node) => node.node.typename === 'Page');
 
diff --git a/packages/noodl-editor/src/editor/src/utils/forge/template/providers/local-template-provider.ts b/packages/noodl-editor/src/editor/src/utils/forge/template/providers/local-template-provider.ts
new file mode 100644
index 0000000..e460c75
--- /dev/null
+++ b/packages/noodl-editor/src/editor/src/utils/forge/template/providers/local-template-provider.ts
@@ -0,0 +1,54 @@
+import path from 'node:path';
+import { filesystem } from '@noodl/platform';
+
+import FileSystem from '../../../filesystem';
+import { ITemplateProvider, TemplateItem, TemplateListFilter } from '../template';
+
+/**
+ * Provides access to locally bundled project templates.
+ * This provider is used for templates that ship with the editor.
+ */
+export class LocalTemplateProvider implements ITemplateProvider {
+  get name(): string {
+    return 'local-templates';
+  }
+
+  async list(_options: TemplateListFilter): Promise<readonly TemplateItem[]> {
+    // Return only the Hello World template
+    return [
+      {
+        title: 'Hello World',
+        category: 'Getting Started',
+        desc: 'A simple starter project to begin your Noodl journey',
+        iconURL: './assets/template-hello-world-icon.png',
+        projectURL: 'local://hello-world',
+        cloudServicesTemplateURL: undefined
+      }
+    ];
+  }
+
+  canDownload(url: string): Promise<boolean> {
+    // Handle local:// protocol
+    return Promise.resolve(url.startsWith('local://'));
+  }
+
+  async download(url: string, destination: string): Promise<void> {
+    if (url === 'local://hello-world') {
+      // The template is in project-examples folder at the repository root
+      // Use process.cwd() which points to repository root during development
+      const repoRoot = process.cwd();
+      const sourcePath = path.join(repoRoot, 'project-examples', 'version 1.1.0', 'template-project');
+
+      if (!filesystem.exists(sourcePath)) {
+        throw new Error('Hello World template not found at: ' + sourcePath);
+      }
+
+      // Copy the template folder to destination
+      // The destination is expected to be where unzipped content goes
+      // So we copy the folder contents directly
+      FileSystem.instance.copyRecursiveSync(sourcePath, destination);
+    } else {
+      throw new Error(`Unknown local template: ${url}`);
+    }
+  }
+}
diff --git a/packages/noodl-editor/src/editor/src/utils/node-graph-traverser.ts b/packages/noodl-editor/src/editor/src/utils/node-graph-traverser.ts
index 8c5581d..22f7641 100644
--- a/packages/noodl-editor/src/editor/src/utils/node-graph-traverser.ts
+++ b/packages/noodl-editor/src/editor/src/utils/node-graph-traverser.ts
@@ -59,14 +59,24 @@ export class NodeGraphTraverser {
     this.traverseComponent = typeof options.traverseComponent === 'boolean' ? options.traverseComponent : true;
     this.tagSelector = typeof options.tagSelector === 'function' ? options.tagSelector : null;
 
-    this.root = new TraverseNode(this, null, targetNode || project.getRootNode(), null);
+    const rootNode = targetNode || project.getRootNode();
+
+    // Handle empty projects with no root node
+    if (!rootNode) {
+      this.root = null;
+      return;
+    }
+
+    this.root = new TraverseNode(this, null, rootNode, null);
   }
 
   public forEach(callback: (node: TraverseNode) => void) {
+    if (!this.root) return;
     this.root.forEach(callback);
   }
 
   public map<T = any>(callback: (node: TraverseNode) => T) {
+    if (!this.root) return [];
     const items: T[] = [];
     this.forEach((node) => {
       const result = callback(node);
@@ -76,6 +86,7 @@ export class NodeGraphTraverser {
   }
 
   public filter(callback: (node: TraverseNode) => boolean) {
+    if (!this.root) return [];
     const items: TraverseNode[] = [];
     this.forEach((node) => {
       if (callback(node)) items.push(node);