diff --git a/packages/create-payload-app/src/lib/create-project.ts b/packages/create-payload-app/src/lib/create-project.ts
index 54b24179f53..36041509d61 100644
--- a/packages/create-payload-app/src/lib/create-project.ts
+++ b/packages/create-payload-app/src/lib/create-project.ts
@@ -19,6 +19,8 @@ import { configurePayloadConfig } from './configure-payload-config.js'
 import { configurePluginProject } from './configure-plugin-project.js'
 import { downloadExample } from './download-example.js'
 import { downloadTemplate } from './download-template.js'
+import { generateSecret } from './generate-secret.js'
+import { manageEnvFiles } from './manage-env-files.js'
 
 const filename = fileURLToPath(import.meta.url)
 const dirname = path.dirname(filename)
@@ -142,6 +144,18 @@ export async function createProject(
     }
   }
 
+  // Call manageEnvFiles before initializing Git
+  if (dbDetails) {
+    await manageEnvFiles({
+      cliArgs,
+      databaseType: dbDetails.type,
+      databaseUri: dbDetails.dbUri,
+      payloadSecret: generateSecret(),
+      projectDir,
+      template: 'template' in args ? args.template : undefined,
+    })
+  }
+
   // Remove yarn.lock file. This is only desired in Payload Cloud.
   const lockPath = path.resolve(projectDir, 'pnpm-lock.yaml')
   if (fse.existsSync(lockPath)) {
diff --git a/packages/create-payload-app/src/main.ts b/packages/create-payload-app/src/main.ts
index c3411d35c03..38f7c7df186 100644
--- a/packages/create-payload-app/src/main.ts
+++ b/packages/create-payload-app/src/main.ts
@@ -255,7 +255,6 @@ export class Main {
           }
           case 'starter': {
             const dbDetails = await selectDb(this.args, projectName)
-            const payloadSecret = generateSecret()
 
             await createProject({
               cliArgs: this.args,
@@ -266,15 +265,6 @@ export class Main {
               template,
             })
 
-            await manageEnvFiles({
-              cliArgs: this.args,
-              databaseType: dbDetails.type,
-              databaseUri: dbDetails.dbUri,
-              payloadSecret,
-              projectDir,
-              template,
-            })
-
             break
           }
         }
diff --git a/templates/_template/.env.example b/templates/_template/.env.example
index 441b33e686e..566f44738d4 100644
--- a/templates/_template/.env.example
+++ b/templates/_template/.env.example
@@ -1,2 +1,2 @@
-DATABASE_URI=mongodb://127.0.0.1/payload-template-blank-3-0
+DATABASE_URI=mongodb://127.0.0.1/your-database-name
 PAYLOAD_SECRET=YOUR_SECRET_HERE
diff --git a/templates/blank/.env.example b/templates/blank/.env.example
index 441b33e686e..566f44738d4 100644
--- a/templates/blank/.env.example
+++ b/templates/blank/.env.example
@@ -1,2 +1,2 @@
-DATABASE_URI=mongodb://127.0.0.1/payload-template-blank-3-0
+DATABASE_URI=mongodb://127.0.0.1/your-database-name
 PAYLOAD_SECRET=YOUR_SECRET_HERE
diff --git a/templates/website/.env.example b/templates/website/.env.example
index 210d1ca4ba5..87499e5283a 100644
--- a/templates/website/.env.example
+++ b/templates/website/.env.example
@@ -1,8 +1,8 @@
 # Database connection string
-DATABASE_URI=mongodb://127.0.0.1/payload-template-website
+DATABASE_URI=mongodb://127.0.0.1/your-database-name
 
 # Or use a PG connection string
-#DATABASE_URI=postgresql://127.0.0.1:5432/payload-template-website
+#DATABASE_URI=postgresql://127.0.0.1:5432/your-database-name
 
 # Used to encrypt JWT tokens
 PAYLOAD_SECRET=YOUR_SECRET_HERE
diff --git a/templates/with-payload-cloud/.env.example b/templates/with-payload-cloud/.env.example
index 0cb45aaa666..566f44738d4 100644
--- a/templates/with-payload-cloud/.env.example
+++ b/templates/with-payload-cloud/.env.example
@@ -1,2 +1,2 @@
-DATABASE_URI=mongodb://127.0.0.1/payload-template-blank-3-0
-PAYLOAD_SECRET=YOUR_SECRET_HERE
\ No newline at end of file
+DATABASE_URI=mongodb://127.0.0.1/your-database-name
+PAYLOAD_SECRET=YOUR_SECRET_HERE