diff --git a/core/handlers/create_note_handler.go b/core/handlers/create_note_handler.go
index 99310a9..35d049a 100644
--- a/core/handlers/create_note_handler.go
+++ b/core/handlers/create_note_handler.go
@@ -3,6 +3,7 @@ package handlers
 import (
 	"context"
 	"encoding/json"
+	"path/filepath"
 
 	"github.com/KristianJBorgwarth/dendrite.daemon/core/frontmatter"
 	"github.com/KristianJBorgwarth/dendrite.daemon/core/models"
@@ -35,7 +36,12 @@ func (h *CreateNoteHandler) Handle(ctx context.Context, raw json.RawMessage) (an
 
 	slug := frontmatter.Slugify(cmd.Title)
 
-	templatePath := store.GetVaultStore().GetTemplatePath(cmd.TemplateName)
+	var templatePath string
+	if cmd.TemplateName != "" {
+		templatePath = store.GetVaultStore().GetTemplatePath(cmd.TemplateName)
+	}
+
+	notePath := filepath.Join(store.GetVaultStore().Config.VaultPath(), cmd.Directory, slug+".md")
 
 	data, err := template.RenderTemplate(templatePath, cmd.Title, slug)
 	if err != nil {
@@ -82,7 +88,7 @@ func (h *CreateNoteHandler) Handle(ctx context.Context, raw json.RawMessage) (an
 
 	tagModels = append(tagModels, dbTags...)
 
-	note := models.CreateNote(cmd.Directory, cmd.Title, slug)
+	note := models.CreateNote(notePath, cmd.Title, slug)
 
 	if err = noteRepo.Upsert(ctx, note); err != nil {
 		return nil, err
@@ -92,11 +98,11 @@ func (h *CreateNoteHandler) Handle(ctx context.Context, raw json.RawMessage) (an
 		return nil, err
 	}
 
-	h.uow.FileStore.Stage(cmd.Directory, data)
+	h.uow.FileStore.Stage(notePath, data)
 
 	if err = h.uow.Commit(); err != nil {
 		return nil, err
 	}
 
-	return cmd.Directory, nil
+	return notePath, nil
 }
diff --git a/dendrite b/dendrite
index 48fff04..24c5ef2 100755
Binary files a/dendrite and b/dendrite differ
diff --git a/persistence/store/file_store.go b/persistence/store/file_store.go
index 1eb94e9..4e0cb8c 100644
--- a/persistence/store/file_store.go
+++ b/persistence/store/file_store.go
@@ -1,6 +1,8 @@
 package store
 
-import "os"
+import (
+	"os"
+)
 
 type FileStore struct {
 	staged    []stagedFile
@@ -28,7 +30,6 @@ func (fs *FileStore) Flush() error {
 		if fs.fileExists(file.path) {
 			continue
 		}
-
 		if err := os.WriteFile(file.path, file.data, 0o644); err != nil {
 			for _, path := range writtenPaths {
 				_ = os.Remove(path)
@@ -58,4 +59,3 @@ func (fs *FileStore) fileExists(path string) bool {
 	_, err := os.Stat(path)
 	return err == nil
 }
-
diff --git a/test/test_integration/create_note_handler_test.go b/test/test_integration/create_note_handler_test.go
index 28f085e..ec71470 100644
--- a/test/test_integration/create_note_handler_test.go
+++ b/test/test_integration/create_note_handler_test.go
@@ -14,11 +14,13 @@ import (
 func TestCreateNoteHandler_NoTemplate_CreatesNoteFileAndReturnsPath(t *testing.T) {
 	// Arrange
 	handler := handlers.NewCreateNoteHandler()
-	
-	notePath := filepath.Join(t.TempDir(), "my-note.md")
+
+	vaultPath := Fixture.VaultStore.Config.VaultPath()
+	notePath := filepath.Join(vaultPath, "my-note.md")
 	params, _ := json.Marshal(map[string]any{
-		"title": "My Note",
-		"path":  notePath,
+		"title":        "My Note",
+		"templateName": "",
+		"directory":    "",
 	})
 
 	// Act
@@ -39,16 +41,23 @@ func TestCreateNoteHandler_NoTemplate_CreatesNoteFileAndReturnsPath(t *testing.T
 func TestCreateNoteHandler_WithTemplate_CreatesNoteFileWithTagsAndReturnsPath(t *testing.T) {
 	// Arrange
 	handler := handlers.NewCreateNoteHandler()
-	dir := t.TempDir()
 
-	templatePath := filepath.Join(dir, "template.md")
+	vaultPath := Fixture.VaultStore.Config.VaultPath()
+	templateDir := Fixture.VaultStore.Config.TemplateDirectory()
+	require.NoError(t, os.MkdirAll(templateDir, 0o755))
+
+	templatePath := filepath.Join(templateDir, "template.md")
 	require.NoError(t, os.WriteFile(templatePath, []byte("---\ntitle: Template\ntags: [go, testing]\n---\n"), 0o644))
+	defer os.Remove(templatePath)
 
-	notePath := filepath.Join(dir, "templated-note.md")
+	subDir := "subdir"
+	require.NoError(t, os.MkdirAll(filepath.Join(vaultPath, subDir), 0o755))
+	defer os.RemoveAll(filepath.Join(vaultPath, subDir))
+	notePath := filepath.Join(vaultPath, subDir, "templated-note.md")
 	params, _ := json.Marshal(map[string]any{
 		"title":        "Templated Note",
-		"path":         notePath,
-		"templatePath": templatePath,
+		"templateName": "template.md",
+		"directory":    subDir,
 	})
 
 	// Act
@@ -80,17 +89,21 @@ func TestCreateNoteHandler_WithTemplate_CreatesNoteFileWithTagsAndReturnsPath(t
 
 func TestCreateNoteHandler_DuplicateSlug_Upserts(t *testing.T) {
 	// Arrange
-	dir := t.TempDir()
 	handler := handlers.NewCreateNoteHandler()
-	
 
-	path1 := filepath.Join(dir, "dup-note.md")
-	params1, _ := json.Marshal(map[string]any{"title": "Dup Note", "path": path1})
+	vaultPath := Fixture.VaultStore.Config.VaultPath()
+	subDir := "dup-dir"
+	require.NoError(t, os.MkdirAll(filepath.Join(vaultPath, subDir), 0o755))
+	defer os.RemoveAll(filepath.Join(vaultPath, subDir))
+
+	params1, _ := json.Marshal(map[string]any{"title": "Dup Note", "templateName": "", "directory": subDir})
 	_, err := handler.Handle(Fixture.TestContext, params1)
 	require.NoError(t, err)
 
-	path2 := filepath.Join(dir, "dup-note-moved.md")
-	params2, _ := json.Marshal(map[string]any{"title": "Dup Note", "path": path2})
+	subDir2 := "dup-dir-moved"
+	require.NoError(t, os.MkdirAll(filepath.Join(vaultPath, subDir2), 0o755))
+	defer os.RemoveAll(filepath.Join(vaultPath, subDir2))
+	params2, _ := json.Marshal(map[string]any{"title": "Dup Note", "templateName": "", "directory": subDir2})
 
 	// Act
 	_, err = handler.Handle(Fixture.TestContext, params2)
@@ -102,15 +115,15 @@ func TestCreateNoteHandler_DuplicateSlug_Upserts(t *testing.T) {
 	require.NoError(t, Fixture.DB.QueryRow(`SELECT COUNT(*) FROM notes WHERE slug = ?`, "dup-note").Scan(&count))
 	assert.Equal(t, 1, count)
 
+	expectedPath := filepath.Join(vaultPath, subDir2, "dup-note.md")
 	var path string
 	require.NoError(t, Fixture.DB.QueryRow(`SELECT path FROM notes WHERE slug = ?`, "dup-note").Scan(&path))
-	assert.Equal(t, path2, path)
+	assert.Equal(t, expectedPath, path)
 }
 
 func TestCreateNoteHandler_InvalidJSON_ReturnsError(t *testing.T) {
 	// Arrange
 	handler := handlers.NewCreateNoteHandler()
-	
 
 	// Act
 	_, err := handler.Handle(Fixture.TestContext, json.RawMessage(`{invalid json}`))
@@ -119,14 +132,14 @@ func TestCreateNoteHandler_InvalidJSON_ReturnsError(t *testing.T) {
 	assert.Error(t, err)
 }
 
-func TestCreateNoteHandler_NonExistentTemplatePath_ReturnsError(t *testing.T) {
+func TestCreateNoteHandler_NonExistentTemplateName_ReturnsError(t *testing.T) {
 	// Arrange
 	handler := handlers.NewCreateNoteHandler()
-	
+
 	params, _ := json.Marshal(map[string]any{
 		"title":        "Ghost Note",
-		"path":         filepath.Join(t.TempDir(), "ghost.md"),
-		"templatePath": "/non/existent/template.md",
+		"templateName": "non-existent-template",
+		"directory":    "",
 	})
 
 	// Act
diff --git a/test/test_integration/main_test.go b/test/test_integration/main_test.go
index 94fd8dd..05acda7 100644
--- a/test/test_integration/main_test.go
+++ b/test/test_integration/main_test.go
@@ -5,11 +5,13 @@ import (
 	"database/sql"
 	"encoding/json"
 	"os"
+	"path"
 	"path/filepath"
 	"testing"
 
 	"github.com/KristianJBorgwarth/dendrite.daemon/core/rpc"
 	"github.com/KristianJBorgwarth/dendrite.daemon/persistence"
+	"github.com/KristianJBorgwarth/dendrite.daemon/persistence/store"
 	_ "modernc.org/sqlite"
 )
 
@@ -17,6 +19,7 @@ type DBFixture struct {
 	DB          *sql.DB
 	DBPath      string
 	TestContext context.Context
+	VaultStore *store.VaultStore
 }
 
 func NewDBFixture() *DBFixture {
@@ -35,6 +38,7 @@ func NewDBFixture() *DBFixture {
 		DB:          dbContext.DB,
 		DBPath:      dbPath,
 		TestContext: context.Background(),
+		VaultStore: store.NewVaultStore(vaultPath, path.Join(vaultPath, "templates")),
 	}
 }