diff --git a/.changeset/create-project-sharing-into-advanced.md b/.changeset/create-project-sharing-into-advanced.md
new file mode 100644
index 00000000..7dfe2e1a
--- /dev/null
+++ b/.changeset/create-project-sharing-into-advanced.md
@@ -0,0 +1,5 @@
+---
+"@inkeep/open-knowledge": patch
+---
+
+Tuck the config-sharing choice into "Advanced settings" in the Create-new-project dialog. Greenfield projects already default to Shared, so the dialog now leads with just the project name and location; the Shared / Local only cards move under Advanced alongside the AI-tool connections. The open-folder setup dialog is unchanged. It still surfaces the sharing choice at the top level, where the decision is more consequential for an existing folder.
diff --git a/packages/app/src/components/CreateProjectDialog.runtime.dom.test.tsx b/packages/app/src/components/CreateProjectDialog.runtime.dom.test.tsx
index e051affb..4c43110f 100644
--- a/packages/app/src/components/CreateProjectDialog.runtime.dom.test.tsx
+++ b/packages/app/src/components/CreateProjectDialog.runtime.dom.test.tsx
@@ -180,9 +180,10 @@ describe('CreateProjectDialog runtime wiring', () => {
 
     await waitForLocationHydrate();
 
-    expect(screen.getByTestId('create-sharing')).not.toBeNull();
+    expect(screen.queryByTestId('create-sharing')).toBeNull();
     expect(screen.queryByTestId('create-editor-cursor')).toBeNull();
     fireEvent.click(screen.getByTestId('create-advanced-trigger'));
+    expect(screen.getByTestId('create-sharing')).not.toBeNull();
 
     for (const id of ALL_EDITOR_IDS) {
       const checkbox = screen.getByTestId(`create-editor-${id}`);
@@ -215,6 +216,28 @@ describe('CreateProjectDialog runtime wiring', () => {
     expect(stub.onOpenChange).toHaveBeenLastCalledWith(false);
   });
 
+  test('reopening the dialog re-collapses Advanced so sharing is hidden again', async () => {
+    const stub = makeBridge();
+    const onOpenChange = mock(() => {});
+    const { rerender } = render(
+      <CreateProjectDialog open={true} onOpenChange={onOpenChange} bridge={stub.bridge} />,
+    );
+    await screen.findByTestId('create-project-dialog');
+    await waitForLocationHydrate();
+
+    fireEvent.click(screen.getByTestId('create-advanced-trigger'));
+    expect(screen.getByTestId('create-sharing')).not.toBeNull();
+
+    rerender(<CreateProjectDialog open={false} onOpenChange={onOpenChange} bridge={stub.bridge} />);
+    rerender(<CreateProjectDialog open={true} onOpenChange={onOpenChange} bridge={stub.bridge} />);
+    await screen.findByTestId('create-project-dialog');
+
+    await waitFor(() => {
+      expect(screen.queryByTestId('create-sharing')).toBeNull();
+    });
+    expect(screen.getByTestId('create-advanced-trigger')).not.toBeNull();
+  });
+
   test('Location hydrates from defaultProjectsRoot and Browse picks a fresh parent', async () => {
     const stub = await renderDialog();
 
@@ -284,6 +307,7 @@ describe('CreateProjectDialog runtime wiring', () => {
     await typeProjectName(PROJECT_NAME);
     await waitForSubmitEnabled();
 
+    fireEvent.click(screen.getByTestId('create-advanced-trigger'));
     await userEvent.click(screen.getByTestId('create-sharing-local-only'));
 
     fireEvent.click(screen.getByTestId('create-submit'));
@@ -378,6 +402,7 @@ describe('CreateProjectDialog runtime wiring', () => {
     const stub = await renderDialog();
     await waitForLocationHydrate();
 
+    fireEvent.click(screen.getByTestId('create-advanced-trigger'));
     const info = screen.getByTestId('config-sharing-info') as HTMLButtonElement;
     expect(info.type).toBe('button');
 
diff --git a/packages/app/src/components/CreateProjectDialog.tsx b/packages/app/src/components/CreateProjectDialog.tsx
index aa2f1340..7dfee77e 100644
--- a/packages/app/src/components/CreateProjectDialog.tsx
+++ b/packages/app/src/components/CreateProjectDialog.tsx
@@ -555,14 +555,6 @@ export function CreateProjectDialog({ open, onOpenChange, bridge }: CreateProjec
               onConfirmRemoveGit={onConfirmRemoveGit}
             />
 
-            <SharingModeField
-              idPrefix="create"
-              testIdPrefix="create-sharing"
-              value={sharing}
-              onValueChange={setSharing}
-              disabled={busy}
-            />
-
             <Collapsible
               open={advancedOpen}
               onOpenChange={setAdvancedOpen}
@@ -603,6 +595,14 @@ export function CreateProjectDialog({ open, onOpenChange, bridge }: CreateProjec
                     );
                   })}
                 </fieldset>
+
+                <SharingModeField
+                  idPrefix="create"
+                  testIdPrefix="create-sharing"
+                  value={sharing}
+                  onValueChange={setSharing}
+                  disabled={busy}
+                />
               </CollapsibleContent>
             </Collapsible>