diff --git a/src/unix/vpkEnv.Mod b/src/unix/vpkEnv.Mod
index a8864b7..2f2753e 100644
--- a/src/unix/vpkEnv.Mod
+++ b/src/unix/vpkEnv.Mod
@@ -19,31 +19,111 @@ BEGIN
 END getGraphName;
 
 PROCEDURE createIfNotThere*(VAR fileName: ARRAY OF CHAR);
+VAR
+  workName: ARRAY 512 OF CHAR;
+  len: INTEGER;
 BEGIN
-    IF ~UnixFS.ExistsByName(fileName) THEN
-      IF ~UnixFS.mkDir(fileName) THEN
-        Out.String("failed to create directory "); Out.String(fileName); Out.Ln; HALT(1);
-      END;
-    END;
+  COPY(fileName, workName);
 
+  (* Remove trailing slash for directory creation *)
+  len := Strings.Length(workName);
+  IF (len > 1) & (workName[len - 1] = '/') THEN
+    workName[len - 1] := 0X;
+  END;
+
+  IF ~UnixFS.ExistsByName(workName) THEN
+    IF ~UnixFS.mkDir(workName) THEN
+      Out.String("failed to create directory "); Out.String(workName); Out.Ln; HALT(1);
+    END;
+  END;
 END createIfNotThere;
 
-PROCEDURE getSrcRelPath*(VAR depName, domain, path0: ARRAY OF CHAR): strTypes.pstring;
+(* Create directories recursively like mkdir -p *)
+PROCEDURE mkDirRecursive*(VAR fullPath: ARRAY OF CHAR);
+VAR
+  currentPath: ARRAY 512 OF CHAR;
+  component: ARRAY 128 OF CHAR;
+  pos, nextPos: INTEGER;
+  i: INTEGER;
+BEGIN
+  (*
+  Out.String(">>> mkDirRecursive called with: '"); Out.String(fullPath); Out.String("'"); Out.Ln;
+  *)
+
+  COPY("", currentPath);
+  pos := 0;
+
+  (* Handle absolute paths starting with / *)
+  IF (Strings.Length(fullPath) > 0) & (fullPath[0] = '/') THEN
+    COPY("/", currentPath);
+    pos := 1;
+  END;
+
+  WHILE pos < Strings.Length(fullPath) DO
+    (* Find next '/' or end of string *)
+    nextPos := pos;
+    WHILE (nextPos < Strings.Length(fullPath)) & (fullPath[nextPos] # '/') DO
+      INC(nextPos);
+    END;
+
+    (* Extract component *)
+    IF nextPos > pos THEN
+      i := 0;
+      WHILE (pos < nextPos) & (i < LEN(component) - 1) DO
+        component[i] := fullPath[pos];
+        INC(i); INC(pos);
+      END;
+      component[i] := 0X;
+
+      (* Append component to current path *)
+      IF Strings.Length(currentPath) > 0 THEN
+        IF currentPath[Strings.Length(currentPath) - 1] # '/' THEN
+          Strings.Append("/", currentPath);
+        END;
+      END;
+      Strings.Append(component, currentPath);
+
+      (*
+      Out.String(">>> Creating directory: '"); Out.String(currentPath); Out.String("'"); Out.Ln;
+      *)
+
+      (* Create directory if it doesn't exist - createIfNotThere handles trailing slashes *)
+      createIfNotThere(currentPath);
+    END;
+
+    (* Skip the '/' *)
+    IF (pos < Strings.Length(fullPath)) & (fullPath[pos] = '/') THEN
+      INC(pos);
+    END;
+  END;
+
+  (*
+  Out.String(">>> mkDirRecursive completed"); Out.Ln;
+  *)
+END mkDirRecursive;
+
+PROCEDURE getSrcRelPath*(VAR depName, repoPath, path0: ARRAY OF CHAR): strTypes.pstring;
 VAR
   p: strTypes.pstring;
   len: INTEGER;
 BEGIN
-  len := 12 + Strings.Length(depName) + Strings.Length(path0) + Strings.Length(domain);
-  (* 5 chars are ../, /, /, plus a couple of chars  *)
+  (*
+  Out.String("@@@ getSrcRelPath called with:"); Out.Ln;
+  Out.String("@@@   depName: '"); Out.String(depName); Out.String("'"); Out.Ln;
+  Out.String("@@@   repoPath: '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+  Out.String("@@@   path0: '"); Out.String(path0); Out.String("'"); Out.Ln;
+  *)
+  len := 16 + Strings.Length(path0) + Strings.Length(repoPath);
   NEW(p, len);
-  COPY("../", p^);
+  COPY("", p^);  (* Start with empty string instead of "../" *)
   Strings.Append(vpkSettings.vpkDepDir, p^);
   Strings.Append("/", p^);
-  Strings.Append(domain, p^);
-  Strings.Append("/", p^);
-  Strings.Append(depName, p^);
+  Strings.Append(repoPath, p^);
   Strings.Append("/", p^);
   Strings.Append(path0, p^);
+  (*
+  Out.String("@@@   result: '"); Out.String(p^); Out.String("'"); Out.Ln;
+  *)
   RETURN p;
 END getSrcRelPath;
 
@@ -89,42 +169,82 @@ BEGIN
   RETURN builddir
 END mkdefBldDir;
 
-PROCEDURE mkdefPkgDirPath*(VAR domain, name, path: ARRAY OF CHAR);
+PROCEDURE mkdefPkgDirPath*(VAR repoPath, name, path: ARRAY OF CHAR);
 VAR
   home: ARRAY 128 OF CHAR;
+  finalPath: ARRAY 512 OF CHAR;
 BEGIN
   getHome(home);
-  COPY(home, path);
-  Strings.Append("/", path);
-  Strings.Append(vpkSettings.vpkPkgDir, path);
-  createIfNotThere(path);
-  Strings.Append("/", path);
-  Strings.Append(vpkSettings.vpkDepDir, path);
-  createIfNotThere(path);
-  Strings.Append("/", path);
-  Strings.Append(domain, path);
-  createIfNotThere(path);
-  Strings.Append("/", path);
-  Strings.Append(name, path);
-  createIfNotThere(path);
+
+  (* Build: <home>/<vpkPkgDir>/deps/<repoPath>/<name>/ *)
+  COPY(home, finalPath);
+  Strings.Append("/", finalPath);
+  Strings.Append(vpkSettings.vpkPkgDir, finalPath);
+  Strings.Append("/", finalPath);
+  Strings.Append(vpkSettings.vpkDepDir, finalPath);
+  Strings.Append("/", finalPath);
+  Strings.Append(repoPath, finalPath);
+  Strings.Append("/", finalPath);
+  Strings.Append(name, finalPath);
+
+  (* Create all directories recursively *)
+  mkDirRecursive(finalPath);
+
+  (* Return the path with trailing slash *)
+  COPY(finalPath, path);
   Strings.Append("/", path);
 END mkdefPkgDirPath;
 
-PROCEDURE mkPkgDirPath*(VAR domain, name, path: ARRAY OF CHAR);
+PROCEDURE mkPkgDirPath*(VAR repoPath, name, path: ARRAY OF CHAR);
+VAR
+  finalPath: ARRAY 512 OF CHAR;
+  len: INTEGER;
 BEGIN
-  Strings.Append("/", path);
-  createIfNotThere(path);
-  Strings.Append(vpkSettings.vpkDepDir, path);
-  Strings.Append("/", path);
-  createIfNotThere(path);
-  Strings.Append(domain, path);
-  createIfNotThere(path);
-  Strings.Append("/", path);
-  Strings.Append(name, path);
-  createIfNotThere(path);
-  Strings.Append("/", path);
-END mkPkgDirPath;
+  (*
+  Out.String("=== DEBUG mkPkgDirPath START ==="); Out.Ln;
+  Out.String("Input path: '"); Out.String(path); Out.String("'"); Out.Ln;
+  Out.String("Input repoPath: '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+  Out.String("Input name: '"); Out.String(name); Out.String("'"); Out.Ln;
+  *)
 
+  (* Start with clean path *)
+  COPY(path, finalPath);
+
+  (* Remove trailing slashes *)
+  len := Strings.Length(finalPath);
+  WHILE (len > 1) & (finalPath[len - 1] = '/') DO
+    finalPath[len - 1] := 0X;
+    DEC(len);
+  END;
+  (*
+  Out.String("After removing trailing slashes: '"); Out.String(finalPath); Out.String("'"); Out.Ln;
+  *)
+
+  (* Add /deps *)
+  Strings.Append("/", finalPath);
+  Strings.Append(vpkSettings.vpkDepDir, finalPath);
+  (*
+  Out.String("After adding deps: '"); Out.String(finalPath); Out.String("'"); Out.Ln;
+  *)
+
+  (* Add /<repoPath> - this already contains the package name! *)
+  Strings.Append("/", finalPath);
+  Strings.Append(repoPath, finalPath);
+  (*
+  Out.String("After adding repoPath: '"); Out.String(finalPath); Out.String("'"); Out.Ln;
+  *)
+
+  (* Create directories *)
+  mkDirRecursive(finalPath);
+
+  (* Return with trailing slash *)
+  COPY(finalPath, path);
+  Strings.Append("/", path);
+  (*
+  Out.String("Final output path: '"); Out.String(path); Out.String("'"); Out.Ln;
+  Out.String("=== DEBUG mkPkgDirPath END ==="); Out.Ln;
+  *)
+END mkPkgDirPath;
 
 PROCEDURE mkCmd*(VAR p0, p1: ARRAY OF CHAR): strTypes.pstring;
 VAR
diff --git a/src/unix/vpkGit.Mod b/src/unix/vpkGit.Mod
index 7fec876..9b3666b 100644
--- a/src/unix/vpkGit.Mod
+++ b/src/unix/vpkGit.Mod
@@ -4,28 +4,38 @@ IMPORT Out, Strings, Platform, vpkEnv;
 PROCEDURE pull*(VAR url : ARRAY OF CHAR; VAR dst : ARRAY OF CHAR; VAR branch: ARRAY OF CHAR);
 VAR i : INTEGER;
     cmd : ARRAY 2048 OF CHAR;
+    cleanDst: ARRAY 512 OF CHAR;
 BEGIN
-  cmd := "git init ";
-  Strings.Append(dst, cmd);
-  i:=Platform.System(cmd);
-  (*cmd := "git -C ";
-  Strings.Append(dst, cmd);
-  Strings.Append(" remote add origin ", cmd);
+  (* Clean destination path - remove trailing slash *)
+  COPY(dst, cleanDst);
+  IF (Strings.Length(cleanDst) > 1) & (cleanDst[Strings.Length(cleanDst) - 1] = '/') THEN
+    cleanDst[Strings.Length(cleanDst) - 1] := 0X;
+  END;
+
+  Out.String("*** GIT: Cloning to: '"); Out.String(cleanDst); Out.String("'"); Out.Ln;
+
+  (* Remove directory if it exists to avoid conflicts *)
+  cmd := "rm -rf ";
+  Strings.Append(cleanDst, cmd);
+  i := Platform.System(cmd);
+
+  (* Use git clone directly - much simpler *)
+  cmd := "git clone ";
   Strings.Append(url, cmd);
-  i:=Platform.System(cmd);*)
-  cmd := "";
-  cmd := "git -C ";
-  Strings.Append(dst, cmd);
-  Strings.Append(" pull ", cmd);
-  Strings.Append(url, cmd);
-  Out.String("branch: '"); Out.String(branch); Out.String("'."); Out.Ln;
   IF branch # "" THEN
-    Out.String("adding branch to commandline"); Out.Ln;
-    Strings.Append(" ", cmd);
+    Strings.Append(" --branch ", cmd);
     Strings.Append(branch, cmd);
   END;
-  Out.String("fetch command: '"); Out.String(cmd); Out.Char("'"); Out.Ln;
+  Strings.Append(" ", cmd);
+  Strings.Append(cleanDst, cmd);
+
+  Out.String("*** GIT: Executing: '"); Out.String(cmd); Out.String("'"); Out.Ln;
   i := Platform.System(cmd);
+  IF i # 0 THEN
+    Out.String("*** GIT: Command failed with exit code: "); Out.Int(i, 0); Out.Ln;
+  ELSE
+    Out.String("*** GIT: Clone successful"); Out.Ln;
+  END;
 END pull;
 
 PROCEDURE syncTree*(url, branch: ARRAY OF CHAR);
diff --git a/src/vipak.Mod b/src/vipak.Mod
index 69c8673..d4a4d6d 100644
--- a/src/vipak.Mod
+++ b/src/vipak.Mod
@@ -11,7 +11,7 @@ END msgnopkg;
 
 PROCEDURE main;
 VAR
-  deps, sync, fetch, ask, local, init, withDeps: BOOLEAN;
+  deps, sync, fetch, ask, local, init: BOOLEAN;
   package, prefix, pkgTree, localFile: ARRAY 128 OF CHAR;
 
   options: opts.Options;
@@ -86,7 +86,7 @@ BEGIN
   opts.setOptName(opt, "-l");
   opts.setOptLName(opt, "--local");
   opts.setOptHasVal(opt, FALSE);
-  opts.setOptDesc(opt, "build local project from vipak.json file");
+  opts.setOptDesc(opt, "build local project from vipak.json file (includes dependencies)");
   opts.setOptRequired(opt, FALSE);
   options.add(options, opt);
 
@@ -98,14 +98,6 @@ BEGIN
   opts.setOptRequired(opt, FALSE);
   options.add(options, opt);
 
-  opt := opts.createOpt();
-  opts.setOptName(opt, "-w");
-  opts.setOptLName(opt, "--with-deps");
-  opts.setOptHasVal(opt, FALSE);
-  opts.setOptDesc(opt, "also build dependencies when building local project");
-  opts.setOptRequired(opt, FALSE);
-  options.add(options, opt);
-
   foptions := opts.populateOptions(options);
   IF opts.reqsSatisfied(options, foptions) THEN
     Out.String("required options provided"); Out.Ln;
@@ -118,7 +110,7 @@ BEGIN
 
   COPY("", package); COPY("", prefix); COPY("", pkgTree); COPY("vipak.json", localFile);
   deps := FALSE; sync := FALSE; fetch := FALSE; ask := FALSE;
-  local := FALSE; init := FALSE; withDeps := FALSE;
+  local := FALSE; init := FALSE;
 
   fopt := opts.createOpt();
   fopt := opts.findOpt("-d", foptions);
@@ -144,10 +136,6 @@ BEGIN
   fopt := opts.findOpt("-i", foptions);
   IF fopt # NIL THEN init := TRUE END;
 
-  fopt := opts.createOpt();
-  fopt := opts.findOpt("-w", foptions);
-  IF fopt # NIL THEN withDeps := TRUE END;
-
   opts.valOfOpt("-p", foptions, package);
   opts.valOfOpt("-P", foptions, prefix);
   IF prefix = "" THEN
@@ -166,7 +154,7 @@ BEGIN
     vpkLocalBuilder.init
   ELSIF local THEN
     Out.String("Building local project from: "); Out.String(localFile); Out.Ln;
-    vpkLocalBuilder.buildLocal(localFile, withDeps)
+    vpkLocalBuilder.buildLocal(localFile)
   ELSIF sync THEN
     vpkSyncer.sync
   ELSE
@@ -187,4 +175,4 @@ END main;
 
 BEGIN
   main
-END vipak.
\ No newline at end of file
+END vipak.
diff --git a/src/vpkHttp.Mod b/src/vpkHttp.Mod
index 49bbced..ca3ce7c 100644
--- a/src/vpkHttp.Mod
+++ b/src/vpkHttp.Mod
@@ -8,6 +8,7 @@ VAR
   h: http.Client;
   answer: strTypes.pstring;
   domain, path: ARRAY 128 OF CHAR; port: ARRAY 8 OF CHAR;
+  repoPath: ARRAY 256 OF CHAR; (* Added for full repository path *)
   filename: ARRAY 64 OF CHAR;
   i, j: LONGINT;
   node: List.Node;
@@ -25,12 +26,19 @@ BEGIN
       IF node^.obj(vpkdepTree.File) # NIL THEN
         Out.String("getting "); Out.String(node^.obj(vpkdepTree.File)^.URI); Out.Ln;
 
+        (* Extract domain for connection *)
         vpkTools.extractDomainFromUrl(node^.obj(vpkdepTree.File)^.URI, domain);
         Out.String("connecting to "); Out.String(domain); Out.Ln;
+        
+        (* Extract full repository path for directory structure *)
+        vpkTools.extractRepoPathFromUrl(node^.obj(vpkdepTree.File)^.URI, repoPath);
+        Out.String("repo path: "); Out.String(repoPath); Out.Ln;
+        
         vpkTools.extractPathFromUrl(node^.obj(vpkdepTree.File)^.URI, path);
         vpkTools.extractFilenameFromUrl(node^.obj(vpkdepTree.File)^.URI, filename);
 
-        vpkEnv.mkPkgDirPath(domain, dep^.name^, dst);
+        (* Use full repository path instead of just domain *)
+        vpkEnv.mkPkgDirPath(repoPath, dep^.name^, dst);
 
         j := Platform.Chdir(dst);
 
@@ -65,4 +73,4 @@ BEGIN
 
 END fetchFiles;
 
-END vpkHttp.
+END vpkHttp.
\ No newline at end of file
diff --git a/src/vpkHttps.Mod b/src/vpkHttps.Mod
index aafcde9..7bf77fc 100644
--- a/src/vpkHttps.Mod
+++ b/src/vpkHttps.Mod
@@ -8,12 +8,14 @@ VAR
   h: https.TLSClient;
   answer: strTypes.pstring;
   domain, path: ARRAY 128 OF CHAR; port: ARRAY 8 OF CHAR;
+  repoPath: ARRAY 256 OF CHAR; (* Added for full repository path *)
   filename: ARRAY 64 OF CHAR;
   i, j: LONGINT;
   node: List.Node;
   bool, continueFetching: BOOLEAN;
   initialDst: ARRAY 512 OF CHAR;
 BEGIN
+  Out.String("*** HTTPS: fetchFiles called"); Out.Ln;
   COPY(dst, initialDst);
   COPY("443", port);
   i := 0;
@@ -25,12 +27,19 @@ BEGIN
       IF node^.obj(vpkdepTree.File) # NIL THEN
         Out.String("getting "); Out.String(node^.obj(vpkdepTree.File)^.URI); Out.Ln;
 
+        (* Extract domain for connection *)
         vpkTools.extractDomainFromUrl(node^.obj(vpkdepTree.File)^.URI, domain);
         Out.String("connecting to "); Out.String(domain); Out.Ln;
+
+        (* Extract full repository path for directory structure *)
+        vpkTools.extractRepoPathFromUrl(node^.obj(vpkdepTree.File)^.URI, repoPath);
+        Out.String("repo path: "); Out.String(repoPath); Out.Ln;
+
         vpkTools.extractPathFromUrl(node^.obj(vpkdepTree.File)^.URI, path);
         vpkTools.extractFilenameFromUrl(node^.obj(vpkdepTree.File)^.URI, filename);
 
-        vpkEnv.mkPkgDirPath(domain, dep^.name^, dst);
+        (* Use full repository path - DO NOT add package name again *)
+        vpkEnv.mkPkgDirPath(repoPath, dep^.name^, dst);
 
         j := Platform.Chdir(dst);
 
diff --git a/src/vpkInstaller.Mod b/src/vpkInstaller.Mod
index 9f8652f..6b6ada9 100644
--- a/src/vpkInstaller.Mod
+++ b/src/vpkInstaller.Mod
@@ -47,14 +47,23 @@ VAR
   depTree: vpkdepTree.TdepTree;
       dep: vpkdepTree.Tdep;
         i: LONGINT;
+  builddir: StringList.pstring;
 BEGIN
+  (* Create build directory path *)
+  IF prefix # "" THEN
+    builddir := vpkEnv.mkBldDir(prefix)
+  ELSE
+    builddir := vpkEnv.mkdefBldDir();
+  END;
+
   depTree := resolve(package);
   IF a THEN ask END;
   i := 0;
   REPEAT
     dep := vpkdepTree.Get(depTree, i);
     vpkJsonDepRetriever.getURIandType(dep);
-    vpkSyncer.fetch(dep, prefix);
+    (* Pass build directory instead of prefix *)
+    vpkSyncer.fetch(dep, builddir^);
     INC(i)
   UNTIL i = depTree.Count;
 END fetch;
@@ -69,7 +78,7 @@ VAR
   b: BOOLEAN;
   builddir, cmd, srcPath: StringList.pstring;
   res: INTEGER;
-  domain: ARRAY 256 OF CHAR;
+  repoPath: ARRAY 256 OF CHAR; (* Changed from domain to repoPath *)
   node: List.Node;
 BEGIN
   IF prefix # "" THEN
@@ -83,12 +92,13 @@ BEGIN
   REPEAT
     dep := vpkdepTree.Get(depTree, i);
     vpkJsonDepRetriever.getURIandType(dep);
-    vpkSyncer.fetch(dep, prefix);
+    (* Pass build directory instead of prefix *)
+    vpkSyncer.fetch(dep, builddir^);
     b := FALSE;
     b := vpkJsonDepRetriever.getBuildInfo(dep, keys, values);
     IF b THEN
       Out.String("Build info found for the package: "); Out.String(dep.name^); Out.Ln;
-      
+
       (* Ensure keys and values are not NIL *)
       IF keys = NIL THEN
         Out.String("Error: keys list is NIL."); Out.Ln;
@@ -98,17 +108,18 @@ BEGIN
         Out.String("Error: values list is NIL."); Out.Ln;
         HALT(10);
       END;
-      
+
       Out.String("keys.Count = "); Out.Int(keys.Count, 0); Out.Ln;
       Out.String("values.Count = "); Out.Int(values.Count, 0); Out.Ln;
       j := 0;
       REPEAT
         Out.String("Processing build step "); Out.Int(j, 0); Out.Ln;
         IF dep^.rmt IS vpkdepTree.RemoteGit THEN
-          vpkTools.extractDomainFromUrl(dep^.rmt.URI, domain);
+          (* Use extractRepoPathFromUrl instead of extractDomainFromUrl *)
+          vpkTools.extractRepoPathFromUrl(dep^.rmt.URI, repoPath);
         ELSIF dep^.rmt IS vpkdepTree.RemoteHttps THEN
           node := dep^.rmt(vpkdepTree.RemoteHttps)^.Files.Get(dep^.rmt(vpkdepTree.RemoteHttps)^.Files, j);
-          vpkTools.extractDomainFromUrl(node^.obj(vpkdepTree.File)^.URI, domain)
+          vpkTools.extractRepoPathFromUrl(node^.obj(vpkdepTree.File)^.URI, repoPath)
         ELSE
           Out.String("WARNING: building for neither git nor https sources not supported yet"); Out.Ln;
         END;
@@ -120,7 +131,8 @@ BEGIN
         v := values.GetString(values, j);
         Out.String("Got key: "); Out.String(k^); Out.Ln;
         Out.String("Got value: "); Out.String(v^); Out.Ln;
-        srcPath := vpkEnv.getSrcRelPath(dep.name^, domain, v^);
+        (* Use repoPath instead of domain, and deps/ prefix to reflect new structure *)
+        srcPath := vpkEnv.getSrcRelPath(dep.name^, repoPath, v^);
         cmd := vpkEnv.mkCmd(k^, srcPath^);
         Out.String("Command: "); Out.String(cmd^); Out.Ln;
         Out.String("Building in "); Out.String(builddir^); Out.Ln;
diff --git a/src/vpkLocalBuilder.Mod b/src/vpkLocalBuilder.Mod
index 8ae4f37..c987013 100644
--- a/src/vpkLocalBuilder.Mod
+++ b/src/vpkLocalBuilder.Mod
@@ -2,7 +2,7 @@ MODULE vpkLocalBuilder;
 IMPORT Files, Out, Strings, Platform, In,
        Json, StringList, strUtils,
        vpkStorage, vpkSettings, vpkdepTree, vpkInstaller, vpkEnv, vpkJsonDepRetriever,
-       UnixFS;
+       vpkResolver, vpkSyncer, vpkDot, vpkTools, UnixFS;
 
 CONST
   DefaultProjectFile = "vipak.json";
@@ -45,7 +45,7 @@ BEGIN
   COPY("src/", filename);
   Strings.Append(projectName, filename);
   Strings.Append(".Mod", filename);
-  
+
   (* Create template module content *)
   COPY("MODULE ", content);
   Strings.Append(projectName, content);
@@ -96,7 +96,7 @@ VAR
 BEGIN
   (* Use a simple default project name *)
   COPY("myproject", projectName);
-  
+
   (* Create default JSON content *)
   COPY('{', content);
   Strings.Append(eol, content);
@@ -265,12 +265,117 @@ BEGIN
   RETURN TRUE;
 END createBuildDir;
 
-PROCEDURE buildDependencies(VAR projectFile: ARRAY OF CHAR);
+PROCEDURE resolveLocal(VAR projectFile: ARRAY OF CHAR): vpkdepTree.TdepTree;
+VAR
+  localDep: vpkdepTree.Tdep;
+  depsList: StringList.TStringList;
+  depName: StringList.pstring;
+  combinedTree, subTree: vpkdepTree.TdepTree;
+  currentDep: vpkdepTree.Tdep;
+  i, j: LONGINT;
+  found: BOOLEAN;
+  graphName: ARRAY 32 OF CHAR;
+  lst: StringList.TStringList;
+  localName: ARRAY 16 OF CHAR;
 BEGIN
-  (* For now, skip dependency building in local mode *)
-  (* This can be implemented later when the infrastructure is ready *)
-  Out.String("Dependency building for local projects not yet implemented."); Out.Ln;
-  Out.String("Please build dependencies manually using 'vipak -p <package>'"); Out.Ln;
+  Out.Ln; Out.String("resolving dependencies for local project..."); Out.Ln;
+
+  (* Set the local project file for dependency reading *)
+  vpkJsonDepRetriever.setLocalProjectFile(projectFile);
+
+  (* Create a dummy dependency object to read dependencies from local file *)
+  COPY("local-project", localName);
+  localDep := vpkdepTree.CreateDep(localName);
+
+  (* Create combined dependency tree *)
+  combinedTree := vpkdepTree.Create();
+
+  (* Get direct dependencies from the local project file *)
+  IF vpkJsonDepRetriever.getDepsFromFile(localDep, depsList) > 0 THEN
+    Out.String("Found "); Out.Int(depsList.Count, 0); Out.String(" direct dependencies"); Out.Ln;
+
+    (* Resolve each dependency using normal tree-based resolution *)
+    i := 0;
+    REPEAT
+      depName := depsList.GetString(depsList, i);
+      IF depName # NIL THEN
+        Out.String("Resolving: "); Out.String(depName^); Out.Ln;
+
+        (* Use normal vpkResolver.resolve for this dependency (it's in the tree) *)
+        subTree := vpkResolver.resolve(depName^, vpkJsonDepRetriever.getDeps);
+
+        (* Merge this subtree into combined tree (avoiding duplicates) *)
+        j := 0;
+        REPEAT
+          currentDep := vpkdepTree.Get(subTree, j);
+          IF currentDep # NIL THEN
+            (* Check if this dependency is already in combined tree *)
+            found := (combinedTree.GetByName(combinedTree, currentDep.name^) # NIL);
+            IF ~found THEN
+              vpkdepTree.AddCopy(combinedTree, currentDep);
+            END;
+          END;
+          INC(j);
+        UNTIL j = subTree.Count;
+      END;
+      INC(i);
+    UNTIL i = depsList.Count;
+
+    Out.String(" done! (:"); Out.Ln; Out.Ln;
+
+    (* Show dependency graph like normal vipak *)
+    vpkEnv.getGraphName(graphName);
+    lst := vpkDot.tree2dot(combinedTree);
+    Out.String("dependency graph:"); Out.Ln;
+    Out.String("-----------------"); Out.Ln;
+    StringList.DumpOut(lst);
+    lst.Dump(lst, graphName);
+    Out.String("-----------------"); Out.Ln;
+    Out.String("(use 'dot -Tpng deps.dot > deps.png' to get the graph image)"); Out.Ln; Out.Ln;
+    Out.String("dependencies will be installed in the following order:"); Out.Ln;
+    i := 0;
+    REPEAT
+      currentDep := vpkdepTree.Get(combinedTree, i);
+      IF currentDep # NIL THEN
+        Out.String(currentDep.name^); Out.Ln;
+      END;
+      INC(i);
+    UNTIL i = combinedTree.Count;
+  ELSE
+    Out.String("No dependencies found in project file."); Out.Ln;
+  END;
+
+  RETURN combinedTree;
+END resolveLocal;
+
+PROCEDURE buildDependencies(VAR projectFile: ARRAY OF CHAR);
+VAR
+  depTree: vpkdepTree.TdepTree;
+  currentDep: vpkdepTree.Tdep;
+  i: LONGINT;
+  buildDir: ARRAY 128 OF CHAR;
+BEGIN
+  (* Resolve all dependencies for local project *)
+  depTree := resolveLocal(projectFile);
+
+  IF depTree.Count > 0 THEN
+    (* Fetch all resolved dependencies *)
+    COPY("./", buildDir);
+    Strings.Append(DefaultBuildDir, buildDir);
+
+    i := 0;
+    REPEAT
+      currentDep := vpkdepTree.Get(depTree, i);
+      IF currentDep # NIL THEN
+        Out.String("Fetching: "); Out.String(currentDep.name^); Out.Ln;
+        vpkJsonDepRetriever.getURIandType(currentDep);
+        vpkSyncer.fetch(currentDep, buildDir);
+      END;
+      INC(i);
+    UNTIL i = depTree.Count;
+
+    Out.String("All dependencies fetched successfully!"); Out.Ln;
+  END;
 END buildDependencies;
 
 PROCEDURE buildProject(VAR projectFile: ARRAY OF CHAR; info: ProjectInfo): BOOLEAN;
@@ -285,13 +390,13 @@ VAR
 BEGIN
   (* Create a dummy dependency object for build info extraction *)
   dep := vpkdepTree.CreateDep(info.name);
-  
+
   (* Get build information using the procedure from vpkJsonDepRetriever *)
   b := vpkJsonDepRetriever.getBuildInfoFromFile(dep, keys, values, projectFile);
-  
+
   IF b & (keys # NIL) & (values # NIL) THEN
     Out.String("Building project: "); Out.String(info.name); Out.Ln;
-    
+
     (* Change to build directory *)
     COPY(DefaultBuildDir, buildDirVar);
     res := Platform.Chdir(buildDirVar);
@@ -299,18 +404,18 @@ BEGIN
       Out.String("Failed to change to build directory"); Out.Ln;
       RETURN FALSE;
     END;
-    
+
     (* Execute build commands *)
     i := 0;
     REPEAT
       k := keys.GetString(keys, i);
       v := values.GetString(values, i);
-      
+
       (* Create command: copy from parent directory if needed *)
       COPY(k^, cmd);
       Strings.Append(" ../", cmd);
       Strings.Append(v^, cmd);
-      
+
       Out.String("Executing: "); Out.String(cmd); Out.Ln;
       res := Platform.System(cmd);
       IF res # 0 THEN
@@ -321,7 +426,7 @@ BEGIN
       END;
       INC(i);
     UNTIL i = keys.Count;
-    
+
     (* Restore original directory *)
     COPY("..", buildDirVar);
     res := Platform.Chdir(buildDirVar);
@@ -333,7 +438,7 @@ BEGIN
   END;
 END buildProject;
 
-PROCEDURE buildLocal*(VAR projectFile: ARRAY OF CHAR; withDeps: BOOLEAN);
+PROCEDURE buildLocal*(VAR projectFile: ARRAY OF CHAR);
 VAR
   info: ProjectInfo;
   b: BOOLEAN;
@@ -344,27 +449,27 @@ BEGIN
     Out.String("Create one with 'vipak --init'"); Out.Ln;
     HALT(1);
   END;
-  
+
   (* Parse project file *)
   b := parseProjectFile(projectFile, info);
   IF ~b THEN
     Out.String("Failed to parse project file: "); Out.String(projectFile); Out.Ln;
     HALT(1);
   END;
-  
-  Out.String("Building project: "); Out.String(info.name); 
+
+  Out.String("Building project: "); Out.String(info.name);
   Out.String(" v"); Out.String(info.version); Out.Ln;
-  
+
   (* Create build directory *)
   IF ~createBuildDir() THEN
     HALT(1);
   END;
-  
-  (* Build dependencies if requested and available *)
-  IF withDeps & info.hasDeps THEN
+
+  (* Build dependencies if available - default behavior for local projects *)
+  IF info.hasDeps THEN
     buildDependencies(projectFile);
   END;
-  
+
   (* Build the project itself *)
   IF info.hasBuild THEN
     b := buildProject(projectFile, info);
@@ -386,11 +491,11 @@ BEGIN
     Out.String("Project file already exists: "); Out.String(projectFile); Out.Ln;
     HALT(1);
   END;
-  
+
   COPY("myproject", projectName);
   createDefaultProject(projectFile);
   createTemplateModule(projectName);
-  
+
   Out.Ln;
   Out.String("Project initialized! You can now:"); Out.Ln;
   Out.String("  1. Edit src/"); Out.String(projectName); Out.String(".Mod with your code"); Out.Ln;
@@ -400,4 +505,4 @@ END init;
 
 BEGIN
   eol[0] := 0AX; eol[1] := 0X; (* Unix line ending *)
-END vpkLocalBuilder.
\ No newline at end of file
+END vpkLocalBuilder.
diff --git a/src/vpkSyncer.Mod b/src/vpkSyncer.Mod
index 181694b..dd63f1a 100644
--- a/src/vpkSyncer.Mod
+++ b/src/vpkSyncer.Mod
@@ -24,10 +24,14 @@ BEGIN
 END sync;
 
 PROCEDURE fetch*(VAR dep: vpkdepTree.Tdep; dst: ARRAY OF CHAR);
-VAR domain: ARRAY 64 OF CHAR;
+VAR repoPath: ARRAY 256 OF CHAR;
+    workingDst: ARRAY 512 OF CHAR; (* Local copy to modify *)
 BEGIN
-  Out.String("Starting fetch process..."); Out.Ln;
-  Out.String("Destination: "); Out.String(dst); Out.Ln;
+  Out.String("*** SYNCER: Starting fetch process..."); Out.Ln;
+  Out.String("*** SYNCER: Input destination: '"); Out.String(dst); Out.String("'"); Out.Ln;
+  COPY(dst, workingDst); (* Make a local copy to modify *)
+  Out.String("*** SYNCER: Working destination: '"); Out.String(workingDst); Out.String("'"); Out.Ln;
+
   IF dep = NIL THEN
     Out.String("Dependency is NIL"); Out.Ln;
     HALT(1);
@@ -37,33 +41,42 @@ BEGIN
     HALT(5);
   ELSE
     IF dep^.rmt IS vpkdepTree.RemoteGit THEN
-      Out.String("Remote type is Git"); Out.Ln;
-      vpkTools.extractDomainFromUrl(dep^.rmt^.URI, domain);
-      Out.String("Extracted domain: "); Out.String(domain); Out.Ln;
-      (* dst is changed by mkdefPkgDirPath and mkPkgdirPath *)
-      IF dst = "" THEN
-        vpkEnv.mkdefPkgDirPath(domain, dep^.name^, dst);
+      Out.String("*** SYNCER: Remote type is Git"); Out.Ln;
+      Out.String("*** SYNCER: Package name is: '"); Out.String(dep^.name^); Out.String("'"); Out.Ln;
+      Out.String("*** SYNCER: Remote URI is: '"); Out.String(dep^.rmt^.URI); Out.String("'"); Out.Ln;
+
+      vpkTools.extractRepoPathFromUrl(dep^.rmt^.URI, repoPath);
+      Out.String("*** SYNCER: Extracted repo path: '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+
+      Out.String("*** SYNCER: About to call mkPkgDirPath with:"); Out.Ln;
+      Out.String("***   repoPath = '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+      Out.String("***   name = '"); Out.String(dep^.name^); Out.String("'"); Out.Ln;
+      Out.String("***   workingDst = '"); Out.String(workingDst); Out.String("'"); Out.Ln;
+
+      (* Build the proper destination path *)
+      IF Strings.Length(workingDst) = 0 THEN
+        vpkEnv.mkdefPkgDirPath(repoPath, dep^.name^, workingDst);
       ELSE
-        vpkEnv.mkPkgDirPath(domain, dep^.name^, dst);
+        vpkEnv.mkPkgDirPath(repoPath, dep^.name^, workingDst);
       END;
-      Out.String("Final destination path: "); Out.String(dst); Out.Ln;
-      Out.String("Fetching repository..."); Out.Ln;
-      vpkGit.fetchRepo(dep^.rmt^.URI, dst, dep^.rmt(vpkdepTree.RemoteGit).branch);
+
+      Out.String("*** SYNCER: After mkPkgDirPath, workingDst = '"); Out.String(workingDst); Out.String("'"); Out.Ln;
+      Out.String("*** SYNCER: About to call git with destination: '"); Out.String(workingDst); Out.String("'"); Out.Ln;
+
+      vpkGit.fetchRepo(dep^.rmt^.URI, workingDst, dep^.rmt(vpkdepTree.RemoteGit).branch);
     ELSIF dep^.rmt IS vpkdepTree.RemoteHttps THEN
       Out.String("Remote type is HTTPS"); Out.Ln;
-      (* full dst will be determined in vpkHttps.fetchFiles for each file *)
-      vpkHttps.fetchFiles(dep, dst);
+      vpkHttps.fetchFiles(dep, workingDst);
     ELSIF dep^.rmt IS vpkdepTree.RemoteHttp THEN
       Out.String("Remote type is HTTP"); Out.Ln;
-      (* full dst will be determined in vpkHttps.fetchFiles for each file *)
-      vpkHttp.fetchFiles(dep, dst);
+      vpkHttp.fetchFiles(dep, workingDst);
      ELSE
       Out.String("TODO: neither git nor https url"); Out.Ln;
       Out.String("not handled");
       Out.Ln;
     END;
   END;
-  Out.String("Fetch process completed."); Out.Ln;
+  Out.String("*** SYNCER: Fetch process completed."); Out.Ln;
 END fetch;
 
 END vpkSyncer.
diff --git a/src/vpkTools.Mod b/src/vpkTools.Mod
index b13787b..7c90355 100644
--- a/src/vpkTools.Mod
+++ b/src/vpkTools.Mod
@@ -1,5 +1,5 @@
 MODULE vpkTools;
-IMPORT Strings, strUtils;
+IMPORT Strings, strUtils, Out;
 
 
 PROCEDURE extractDomainFromUrl*(VAR url: ARRAY OF CHAR; VAR domain: ARRAY OF CHAR);
@@ -78,5 +78,63 @@ BEGIN
   END;
 END extractFilenameFromUrl;
 
+PROCEDURE extractRepoPathFromUrl*(VAR url: ARRAY OF CHAR; VAR repoPath: ARRAY OF CHAR);
+(* Extracts full repository path from URL like:
+   https://github.com/norayr/strutils -> github.com/norayr/strutils
+   https://codeberg.org/user/project -> codeberg.org/user/project
+*)
+VAR
+  start, i, j: INTEGER;
+  found: BOOLEAN;
+BEGIN
+  Out.String("@@@ extractRepoPathFromUrl input: '"); Out.String(url); Out.String("'"); Out.Ln;
+
+  start := 0;
+  found := FALSE;
+  repoPath[0] := 0X; (* Initialize to empty string *)
+
+  (* Find the "://" pattern to skip protocol *)
+  WHILE (start < LEN(url) - 2) & (url[start] # 0X) & ~found DO
+    IF (url[start] = ':') & (url[start+1] = '/') & (url[start+2] = '/') THEN
+      found := TRUE;
+      start := start + 3; (* Skip "://" *)
+    ELSE
+      INC(start);
+    END;
+  END;
+
+  Out.String("@@@ After skipping protocol, start="); Out.Int(start, 0); Out.Ln;
+
+  IF ~found THEN
+    (* No protocol found, assume the whole URL is the path *)
+    COPY(url, repoPath);
+    Out.String("@@@ No protocol found, using whole URL: '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+    RETURN;
+  END;
+
+  (* Find end of URL (exclude .git suffix if present) *)
+  i := start;
+  WHILE (i < LEN(url)) & (url[i] # 0X) DO
+    INC(i);
+  END;
+
+  Out.String("@@@ End of URL at position: "); Out.Int(i, 0); Out.Ln;
+
+  (* Remove .git suffix if present *)
+  IF (i >= 4) & (url[i-4] = '.') & (url[i-3] = 'g') & (url[i-2] = 'i') & (url[i-1] = 't') THEN
+    i := i - 4;
+    Out.String("@@@ Removed .git suffix, new end: "); Out.Int(i, 0); Out.Ln;
+  END;
+
+  (* Copy domain + path *)
+  j := 0;
+  WHILE (start < i) & (j < LEN(repoPath) - 1) DO
+    repoPath[j] := url[start];
+    INC(j); INC(start);
+  END;
+  repoPath[j] := 0X;
+
+  Out.String("@@@ extractRepoPathFromUrl output: '"); Out.String(repoPath); Out.String("'"); Out.Ln;
+END extractRepoPathFromUrl;
 
 END vpkTools.