diff --git a/.changeset/giant-knives-wonder.md b/.changeset/giant-knives-wonder.md
new file mode 100644
index 0000000000..c34008d5bf
--- /dev/null
+++ b/.changeset/giant-knives-wonder.md
@@ -0,0 +1,5 @@
+---
+"@blitzjs/generator": patch
+---
+
+Fix: search inside any subdirectory to inside `src|app` directories to find `blitz-server.ts` to use the `BlitzCliConfig` configurations.
diff --git a/packages/generator/src/generator.ts b/packages/generator/src/generator.ts
index e3e08a9df0..8be3df56cc 100644
--- a/packages/generator/src/generator.ts
+++ b/packages/generator/src/generator.ts
@@ -35,7 +35,7 @@ export const customTemplatesBlitzConfig = async (
   codemod = false,
 ) => {
   const {globby} = await import("globby")
-  const blitzServer = await globby(["{app,src}/**/blitz-server.{ts,js}"], {
+  const blitzServer = await globby(["{app,src}/**/**/blitz-server.{ts,js}"], {
     cwd: getProjectRootSync(),
   })
   if (blitzServer.length === 0) {