diff --git a/.gitignore b/.gitignore
index 3ce05225..8ad9a4c7 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,8 +1,8 @@
 /.crystal
 /.shards
-/libs
+/lib
 /bin/shards
 /test/.repositories
 /test/.shards
-/test/.libs
+/test/.lib
 /tmp
diff --git a/SPEC.md b/SPEC.md
index 527ab8e7..6fc836b5 100644
--- a/SPEC.md
+++ b/SPEC.md
@@ -235,7 +235,7 @@ installed or upgraded in a project that requires it. This may be used to compile
 a C library, to build tools to help working on the project, or anything else.
 
 The script will be run from the dependency's installation directory, for example
-`libs/foo` for a Shard named `foo`.
+`lib/foo` for a Shard named `foo`.
 
 ```yaml
 scripts:
diff --git a/src/config.cr b/src/config.cr
index 23dc0de0..236de2f6 100644
--- a/src/config.cr
+++ b/src/config.cr
@@ -13,7 +13,7 @@ module Shards
   end
 
   def self.install_path
-    @@install_path ||= ENV.fetch("SHARDS_INSTALL_PATH") { File.join(Dir.current, "libs") }
+    @@install_path ||= ENV.fetch("SHARDS_INSTALL_PATH") { File.join(Dir.current, "lib") }
   end
 
   def self.install_path=(@@install_path : String)
diff --git a/src/man/shards.1 b/src/man/shards.1
index 0caf632b..5fd282cf 100644
--- a/src/man/shards.1
+++ b/src/man/shards.1
@@ -48,7 +48,7 @@ Prints the Shards version.
 .PP
 \fBinstall\fR
 .RS 4
-Resolves and installs dependencies into the \fIlibs\fR folder. If not already
+Resolves and installs dependencies into the \fIlib\fR folder. If not already
 present, generates a \fIshard.lock\fR file from resolved dependencies, locking
 version numbers or Git commits.
 .PP
@@ -60,7 +60,7 @@ doesn't generate a conflict, thus generating a new \fIshard.lock\fR file.
 .PP
 \fBupdate\fR
 .RS 4
-Resolves and updates all dependencies into the \fIlibs\fR folder again,
+Resolves and updates all dependencies into the \fIlib\fR folder again,
 whatever the locked versions and commits in the \fIshard.lock\fR file.
 Eventually generates a new \fIshard.lock\fR file.
 .RE
diff --git a/test/integration/install_test.cr b/test/integration/install_test.cr
index 44066e5b..b7ea9dae 100644
--- a/test/integration/install_test.cr
+++ b/test/integration/install_test.cr
@@ -225,7 +225,7 @@ class InstallCommandTest < Minitest::Test
   def test_runs_postinstall_script
     with_shard({ dependencies: { post: "*" } }) do
       run "shards install"
-      assert File.exists?(File.join(application_path, "libs", "post", "made.txt"))
+      assert File.exists?(File.join(application_path, "lib", "post", "made.txt"))
     end
   end
 
@@ -234,7 +234,7 @@ class InstallCommandTest < Minitest::Test
       ex = assert_raises(FailedCommand) { run "shards install --no-color" }
       assert_match "E: Failed make:\n", ex.stdout
       assert_match "test -n ''\n", ex.stdout
-      refute Dir.exists?(File.join(application_path, "libs", "fails"))
+      refute Dir.exists?(File.join(application_path, "lib", "fails"))
     end
   end
 
diff --git a/test/integration/prune_test.cr b/test/integration/prune_test.cr
index 6731a3e4..19107dbd 100644
--- a/test/integration/prune_test.cr
+++ b/test/integration/prune_test.cr
@@ -20,18 +20,18 @@ class PruneCommandTest < Minitest::Test
   end
 
   def test_removes_directories
-    Dir.mkdir(File.join(application_path, "libs", "test"))
+    Dir.mkdir(File.join(application_path, "lib", "test"))
     Dir.cd(application_path) { run "shards prune" }
     assert_equal ["web"], installed_dependencies
   end
 
   def test_wont_remove_files
-    File.write(File.join(application_path, "libs", ".keep"), "")
+    File.write(File.join(application_path, "lib", ".keep"), "")
     Dir.cd(application_path) { run "shards prune" }
     assert_equal [".keep", "web"], installed_dependencies.sort
   end
 
   private def installed_dependencies
-    Dir[File.join(application_path, "libs", "*")].map { |path| File.basename(path) }
+    Dir[File.join(application_path, "lib", "*")].map { |path| File.basename(path) }
   end
 end
diff --git a/test/integration_helper.cr b/test/integration_helper.cr
index fb1791ae..61a7e4cb 100644
--- a/test/integration_helper.cr
+++ b/test/integration_helper.cr
@@ -113,7 +113,7 @@ class Minitest::Test
   end
 
   def install_path(project, *path_names)
-    File.join(application_path, "libs", project, *path_names)
+    File.join(application_path, "lib", project, *path_names)
   end
 
   def debug(command)
diff --git a/test/test_helper.cr b/test/test_helper.cr
index 5ee04205..9d417ed9 100644
--- a/test/test_helper.cr
+++ b/test/test_helper.cr
@@ -4,7 +4,7 @@ require "../src/logger"
 require "../src/manager"
 
 Shards.cache_path = File.join(__DIR__, ".shards")
-Shards.install_path = File.join(__DIR__, ".libs")
+Shards.install_path = File.join(__DIR__, ".lib")
 
 require "./support/factories"
 require "./support/mock_resolver"