diff --git a/install/ccpm.sh b/install/ccpm.sh
index ded501ea..6390ee50 100644
--- a/install/ccpm.sh
+++ b/install/ccpm.sh
@@ -1,16 +1,137 @@
 #!/bin/bash
 
+# CCPM Installation Script
+# Installs Claude Code Project Manager correctly into .claude directory
+# Usage: curl -fsSL https://raw.githubusercontent.com/automazeio/ccpm/main/install/ccpm.sh | bash
+
+set -e  # Exit on error
+
 REPO_URL="https://github.com/automazeio/ccpm.git"
-TARGET_DIR="."
+TEMP_DIR=$(mktemp -d)
+PROJECT_ROOT=$(pwd)
 
-echo "Cloning repository from $REPO_URL..."
-git clone "$REPO_URL" "$TARGET_DIR"
+# Ensure cleanup on exit (success or failure)
+cleanup() {
+    if [ -d "$TEMP_DIR" ]; then
+        rm -rf "$TEMP_DIR"
+    fi
+}
+trap cleanup EXIT
 
-if [ $? -eq 0 ]; then
-    echo "Clone successful. Removing .git directory..."
-    rm -rf .git .gitignore install
-    echo "Git directory removed. Repository is now untracked."
-else
-    echo "Error: Failed to clone repository."
+echo ""
+echo "╔════════════════════════════════════════╗"
+echo "║   CCPM Installation Script v1.0        ║"
+echo "║   Claude Code Project Manager          ║"
+echo "╚════════════════════════════════════════╝"
+echo ""
+
+# Check if we're in a project directory
+if [ ! -w "$PROJECT_ROOT" ]; then
+    echo "❌ Error: No write permission in current directory"
+    exit 1
+fi
+
+echo "📂 Installation directory: $PROJECT_ROOT"
+echo ""
+
+# Step 1: Clone the repository to temp location
+echo "📥 Step 1/5: Downloading CCPM..."
+if ! git clone --quiet --depth 1 "$REPO_URL" "$TEMP_DIR"; then
+    echo "❌ Error: Failed to clone repository from $REPO_URL"
+    rm -rf "$TEMP_DIR"
     exit 1
 fi
+echo "   ✅ Download complete"
+echo ""
+
+# Step 2: Create .claude directory structure
+echo "📁 Step 2/5: Creating directory structure..."
+mkdir -p "$PROJECT_ROOT/.claude/ccpm"
+mkdir -p "$PROJECT_ROOT/.claude/commands"
+echo "   ✅ Directory structure created"
+echo ""
+
+# Step 3: Copy CCPM files to .claude/ccpm/
+echo "📋 Step 3/5: Installing CCPM files..."
+cp -r "$TEMP_DIR/ccpm"/* "$PROJECT_ROOT/.claude/ccpm/"
+echo "   ✅ CCPM files installed to .claude/ccpm/"
+echo ""
+
+# Step 4: Copy commands to .claude/commands/ for Claude Code discovery
+echo "🔗 Step 4/5: Setting up slash commands..."
+if [ -d "$PROJECT_ROOT/.claude/ccpm/commands" ]; then
+    cp -r "$PROJECT_ROOT/.claude/ccpm/commands"/* "$PROJECT_ROOT/.claude/commands/"
+    echo "   ✅ Slash commands installed to .claude/commands/"
+else
+    echo "   ⚠️  No commands directory found in CCPM"
+fi
+echo ""
+
+# Step 5: Update settings if needed
+echo "⚙️  Step 5/5: Configuring permissions..."
+if [ -f "$PROJECT_ROOT/.claude/ccpm/settings.local.json" ]; then
+    cp "$PROJECT_ROOT/.claude/ccpm/settings.local.json" "$PROJECT_ROOT/.claude/settings.local.json"
+    echo "   ✅ Settings configured"
+else
+    echo "   ⚠️  No default settings found, skipping"
+fi
+echo ""
+
+# Note: Cleanup of temp directory handled automatically by trap on exit
+
+# Update .gitignore
+echo "📝 Updating .gitignore..."
+if [ ! -f "$PROJECT_ROOT/.gitignore" ]; then
+    # Create new .gitignore
+    cat > "$PROJECT_ROOT/.gitignore" << 'EOF'
+# CCPM - Local workspace files
+.claude/epics/
+
+# Local settings
+.claude/settings.local.json
+EOF
+    echo "   ✅ .gitignore created"
+else
+    # Append CCPM entries if they don't exist
+    if ! grep -q ".claude/epics/" "$PROJECT_ROOT/.gitignore" 2>/dev/null; then
+        echo "" >> "$PROJECT_ROOT/.gitignore"
+        echo "# CCPM - Local workspace files" >> "$PROJECT_ROOT/.gitignore"
+        echo ".claude/epics/" >> "$PROJECT_ROOT/.gitignore"
+        echo ".claude/settings.local.json" >> "$PROJECT_ROOT/.gitignore"
+        echo "   ✅ .gitignore updated with CCPM exclusions"
+    else
+        echo "   ✅ .gitignore already contains CCPM exclusions"
+    fi
+fi
+echo ""
+
+# Success message
+echo "╔════════════════════════════════════════╗"
+echo "║  ✅ CCPM Installation Complete!        ║"
+echo "╚════════════════════════════════════════╝"
+echo ""
+echo "📊 Installation Summary:"
+echo "   • CCPM files: .claude/ccpm/"
+echo "   • Commands:   .claude/commands/"
+echo "   • Settings:   .claude/settings.local.json"
+echo ""
+echo "🎯 Next Steps:"
+echo ""
+echo "   1. Initialize CCPM:"
+echo "      bash .claude/ccpm/scripts/pm/init.sh"
+echo ""
+echo "   2. Restart Claude Code to load slash commands"
+echo ""
+echo "   3. Verify installation:"
+echo "      /pm:help"
+echo ""
+echo "   4. Create your first PRD:"
+echo "      /pm:prd-new <feature-name>"
+echo ""
+echo "⚠️  IMPORTANT: You must restart Claude Code for slash"
+echo "   commands to be recognized!"
+echo ""
+echo "📚 Documentation: https://github.com/automazeio/ccpm"
+echo ""
+
+exit 0