diff --git a/.story_kit/specs/00_CONTEXT.md b/.story_kit/specs/00_CONTEXT.md
index 3fb68d9..7fc1aa3 100644
--- a/.story_kit/specs/00_CONTEXT.md
+++ b/.story_kit/specs/00_CONTEXT.md
@@ -29,5 +29,5 @@ To build a standalone **Agentic AI Code Assistant** application as a single Rust
 ## Glossary
 *   **SDSW:** Story-Driven Spec Workflow.
 *   **Web Server Binary:** The Rust binary that serves the Vite/React frontend and exposes the WebSocket API.
-*   **Living Spec:** The collection of Markdown files in `.living_spec/` that define the project.
-*   **Tool Call:** A structured request from the LLM to execute a specific native function.
\ No newline at end of file
+*   **Living Spec:** The collection of Markdown files in `.story_kit/` that define the project.
+*   **Tool Call:** A structured request from the LLM to execute a specific native function.
diff --git a/server/src/llm/prompts.rs b/server/src/llm/prompts.rs
index 65870d4..0eca931 100644
--- a/server/src/llm/prompts.rs
+++ b/server/src/llm/prompts.rs
@@ -18,7 +18,7 @@ You have the following tools available:
 
 YOUR WORKFLOW:
 When the user requests a feature or change:
-1.  **Understand:** Read `.living_spec/README.md` if you haven't already to understand the development process
+1.  **Understand:** Read `.story_kit/README.md` if you haven't already to understand the development process
 2.  **Explore:** Use `read_file` and `list_directory` to understand the current codebase structure
 3.  **Implement:** Use `write_file` to create or modify files directly
 4.  **Verify:** Use `exec_shell` to run tests, linters, or build commands to verify your changes work