diff --git a/.gitignore b/.gitignore
index 3e1246f..f64b66b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -44,7 +44,5 @@ htmlcov/
 # Generated version file
 src/cocoindex_code/_version.py
 
-# CocoIndex
-.cocoindex_code/
 # CocoIndex Code (ccc)
 /.cocoindex_code/
diff --git a/src/cocoindex_code/cli.py b/src/cocoindex_code/cli.py
index 76f0914..f8e1706 100644
--- a/src/cocoindex_code/cli.py
+++ b/src/cocoindex_code/cli.py
@@ -209,35 +209,6 @@ def remove_from_gitignore(project_root: Path) -> None:
     gitignore.write_text("".join(new_lines))
 
 
-def auto_init_project() -> Path:
-    """Auto-initialize project from CWD.
-
-    Runs core ``init`` logic without parent-directory confirmation and without
-    the "run ``ccc index``" prompt.  Returns the project root (CWD).
-    """
-    from .settings import project_settings_path
-
-    cwd = Path.cwd().resolve()
-    settings_file = project_settings_path(cwd)
-
-    if not settings_file.is_file():
-        # Create user settings if missing
-        user_path = user_settings_path()
-        if not user_path.is_file():
-            save_user_settings(default_user_settings())
-            _typer.echo(f"Created user settings: {user_path}")
-
-        # Create project settings
-        save_project_settings(cwd, default_project_settings())
-        _typer.echo(f"Created project settings: {settings_file}")
-        _typer.echo("You can edit the settings files to customize indexing behavior.")
-
-        # Update .gitignore
-        add_to_gitignore(cwd)
-
-    return cwd
-
-
 # ---------------------------------------------------------------------------
 # Commands
 # ---------------------------------------------------------------------------
@@ -289,19 +260,7 @@ def init(
 @app.command()
 def index() -> None:
     """Create/update index for the codebase."""
-    from .client import ensure_daemon
-
-    # Auto-init if not in an initialized project
-    root = find_project_root(Path.cwd())
-    if root is None:
-        root = auto_init_project()
-
-    try:
-        client = ensure_daemon()
-    except Exception as e:
-        _typer.echo(f"Error: Failed to connect to daemon: {e}", err=True)
-        raise _typer.Exit(code=1)
-    project_root = str(root)
+    client, project_root = require_daemon_for_project()
 
     _run_index_with_progress(client, project_root)
 
diff --git a/tests/test_cli_helpers.py b/tests/test_cli_helpers.py
index 1e5187b..10a16df 100644
--- a/tests/test_cli_helpers.py
+++ b/tests/test_cli_helpers.py
@@ -8,7 +8,6 @@
 
 from cocoindex_code.cli import (
     add_to_gitignore,
-    auto_init_project,
     remove_from_gitignore,
     require_project_root,
     resolve_default_path,
@@ -126,24 +125,3 @@ def test_remove_from_gitignore_no_entry(tmp_path: Path) -> None:
     gitignore.write_text(original)
     remove_from_gitignore(tmp_path)
     assert gitignore.read_text() == original
-
-
-def test_auto_init_project(tmp_path: Path, monkeypatch: pytest.MonkeyPatch) -> None:
-    (tmp_path / ".git").mkdir()
-    monkeypatch.chdir(tmp_path)
-    # Monkeypatch user settings dir to avoid touching real home
-    monkeypatch.setattr(
-        "cocoindex_code.cli.user_settings_path",
-        lambda: tmp_path / ".cocoindex_code_user" / "global_settings.yml",
-    )
-    monkeypatch.setattr(
-        "cocoindex_code.settings.user_settings_dir",
-        lambda: tmp_path / ".cocoindex_code_user",
-    )
-
-    result = auto_init_project()
-
-    assert result == tmp_path
-    assert (tmp_path / ".cocoindex_code" / "settings.yml").is_file()
-    assert (tmp_path / ".gitignore").is_file()
-    assert "/.cocoindex_code/" in (tmp_path / ".gitignore").read_text()
diff --git a/tests/test_e2e.py b/tests/test_e2e.py
index 80833c7..8cff764 100644
--- a/tests/test_e2e.py
+++ b/tests/test_e2e.py
@@ -14,9 +14,9 @@
 from pathlib import Path
 
 import pytest
+from cocoindex.connectors import sqlite as coco_sqlite
 from typer.testing import CliRunner
 
-from cocoindex.connectors import sqlite as coco_sqlite
 from cocoindex_code.cli import app
 from cocoindex_code.client import stop_daemon
 from cocoindex_code.settings import find_parent_with_marker
@@ -319,8 +319,7 @@ def test_session_respects_gitignore(e2e_project: Path) -> None:
     try:
         with conn.readonly() as db:
             file_paths = {
-                row[0]
-                for row in db.execute("SELECT DISTINCT file_path FROM code_chunks_vec")
+                row[0] for row in db.execute("SELECT DISTINCT file_path FROM code_chunks_vec")
             }
     finally:
         conn.close()
@@ -382,17 +381,12 @@ def test_session_search_refresh() -> None:
     assert "main.py" in result.output
 
 
-def test_session_index_auto_init(e2e_project: Path) -> None:
-    """Running ``ccc index`` from uninitialized dir auto-inits, then search works."""
-    # Do NOT call init — just run index directly
-    result = runner.invoke(app, ["index"], catch_exceptions=False)
-    assert result.exit_code == 0, result.output
-    assert (e2e_project / ".cocoindex_code" / "settings.yml").exists()
-
-    # Search should work
-    result = runner.invoke(app, ["search", "fibonacci"], catch_exceptions=False)
-    assert result.exit_code == 0
-    assert "main.py" in result.output
+@pytest.mark.usefixtures("e2e_project")
+def test_session_index_not_initialized_errors() -> None:
+    """Running ``ccc index`` from uninitialized dir should error."""
+    result = runner.invoke(app, ["index"])
+    assert result.exit_code != 0
+    assert "ccc init" in result.output
 
 
 def test_session_subdirectory_path_default(e2e_project: Path) -> None: