diff --git a/packages/core/src/ast.ts b/packages/core/src/ast.ts
index 050025d158..5501a919ae 100644
--- a/packages/core/src/ast.ts
+++ b/packages/core/src/ast.ts
@@ -1,6 +1,10 @@
 /// <reference path="./types/prompt_template.d.ts" />
 // Import necessary regular expressions for file type detection and host utilities
-import { GENAI_ANYJS_REGEX, GENAI_ANYTS_REGEX } from "./constants"
+import {
+    GENAI_ANYJS_REGEX,
+    GENAI_ANYTS_REGEX,
+    PROMPTY_REGEX,
+} from "./constants"
 import { host } from "./host"
 
 // Type alias for PromptScript used globally
@@ -73,7 +77,8 @@ export class Project {
             { dirname: string; js?: boolean; ts?: boolean }
         > = {}
         for (const t of Object.values(this.templates).filter(
-            (t) => t.filename // Filter templates that have a filename set
+            // must have a filename and not propmty
+            (t) => t.filename && !PROMPTY_REGEX.test(t.filename)
         )) {
             const dirname = host.path.dirname(t.filename) // Get directory name from the filename
             const folder = folders[dirname] || (folders[dirname] = { dirname })
diff --git a/packages/core/src/prompty.ts b/packages/core/src/prompty.ts
index 6577b21a45..8cbaa02c4e 100644
--- a/packages/core/src/prompty.ts
+++ b/packages/core/src/prompty.ts
@@ -84,8 +84,7 @@ function promptyFrontmatterToMeta(frontmatter: PromptyFrontmatter): PromptArgs {
     let modelName: string = undefined
     if (api !== "chat") throw new Error("completion api not supported")
     if (modelParameters?.n > 1) throw new Error("multi-turn not supported")
-    if (modelParameters?.tools?.length)
-        throw new Error("streaming not supported")
+    if (modelParameters?.tools?.length) throw new Error("tools not supported")
 
     // resolve model
     if (
@@ -120,11 +119,11 @@ function promptyFrontmatterToMeta(frontmatter: PromptyFrontmatter): PromptArgs {
     return meta
 }
 
-export function promptyParse(text: string): PromptyDocument {
+export function promptyParse(filename: string, text: string): PromptyDocument {
     const { frontmatter = "", content = "" } = splitMarkdown(text)
     const fm = YAMLTryParse(frontmatter) ?? {}
-    const meta = fm ? promptyFrontmatterToMeta(fm) : {}
-    // todo: validate frontmatter?
+    const meta: PromptArgs = fm ? promptyFrontmatterToMeta(fm) : {}
+    meta.filename = filename
     const messages: ChatCompletionMessageParam[] = []
 
     // split
diff --git a/packages/core/src/template.ts b/packages/core/src/template.ts
index 7a189adbd4..cfdfe134ec 100644
--- a/packages/core/src/template.ts
+++ b/packages/core/src/template.ts
@@ -411,7 +411,7 @@ export async function parsePromptScript(
     prj: Project
 ) {
     if (PROMPTY_REGEX.test(filename)) {
-        const doc = await promptyParse(content)
+        const doc = await promptyParse(filename, content)
         content = await promptyToGenAIScript(doc)
     }
 
diff --git a/packages/core/src/types/prompt_template.d.ts b/packages/core/src/types/prompt_template.d.ts
index 07dcd2cbcd..6673357d99 100644
--- a/packages/core/src/types/prompt_template.d.ts
+++ b/packages/core/src/types/prompt_template.d.ts
@@ -747,10 +747,7 @@ interface ExpansionVariables {
 
 type MakeOptional<T, P extends keyof T> = Partial<Pick<T, P>> & Omit<T, P>
 
-type PromptArgs = Omit<
-    PromptScript,
-    "text" | "id" | "jsSource" | "activation" | "defTools"
->
+type PromptArgs = Omit<PromptScript, "text" | "id" | "jsSource" | "defTools">
 
 type PromptSystemArgs = Omit<
     PromptArgs,
diff --git a/packages/sample/genaisrc/defrange.genai.mjs b/packages/sample/genaisrc/defrange.genai.mjs
index 37e10e8b35..287412388c 100644
--- a/packages/sample/genaisrc/defrange.genai.mjs
+++ b/packages/sample/genaisrc/defrange.genai.mjs
@@ -1,6 +1,6 @@
 script({
     model: "small",
-    files: "src/basic.prompty",
+    files: "src/templates/basic.prompty",
     tests: {
         keywords: ["CORRECT1", "CORRECT2", "CORRECT3"],
     },
diff --git a/packages/sample/genaisrc/import-prompty.genai.mjs b/packages/sample/genaisrc/import-prompty.genai.mjs
index 3e5443772f..2e34897da3 100644
--- a/packages/sample/genaisrc/import-prompty.genai.mjs
+++ b/packages/sample/genaisrc/import-prompty.genai.mjs
@@ -6,14 +6,14 @@ script({
 })
 
 const res = await runPrompt((ctx) => {
-    ctx.importTemplate("src/basic.prompty", {
+    ctx.importTemplate("src/templates/basic.prompty", {
         question: "what is the capital of france?",
         hint: "starts with p",
     })
 })
 console.log(`inline: ${res.text}`)
 
-importTemplate("src/basic.prompty", {
+importTemplate("src/templates/basic.prompty", {
     question: "what is the capital of france?",
     hint: "starts with p",
 })
diff --git a/packages/sample/genaisrc/import-template.genai.mts b/packages/sample/genaisrc/import-template.genai.mts
index a563c9edb2..d63c8dd060 100644
--- a/packages/sample/genaisrc/import-template.genai.mts
+++ b/packages/sample/genaisrc/import-template.genai.mts
@@ -8,4 +8,4 @@ const question = "What is the capital of France?"
 const hint = () => {
     return "Also add 'abracadabra' to the answer."
 }
-importTemplate("src/basic.prompty", { question, hint })
+importTemplate("src/templates/basic.prompty", { question, hint })
diff --git a/packages/sample/src/basic.prompty b/packages/sample/src/templates/basic.prompty
similarity index 100%
rename from packages/sample/src/basic.prompty
rename to packages/sample/src/templates/basic.prompty