diff --git a/cli/src/build_project.rs b/cli/src/build_project.rs
index f68ab4a..6681311 100644
--- a/cli/src/build_project.rs
+++ b/cli/src/build_project.rs
@@ -1,8 +1,10 @@
-use std::process::{Command, Stdio};
-
+use crate::workspace::*;
 use crate::BuildArgs;
+use std::process::{Command, Stdio};
 
 pub fn build_project(_args: BuildArgs) -> anyhow::Result<()> {
+    verify_steel_workspace()?;
+
     Command::new("cargo")
         .arg("build-sbf")
         .stdout(Stdio::inherit())
diff --git a/cli/src/main.rs b/cli/src/main.rs
index 8c9d46b..199138d 100644
--- a/cli/src/main.rs
+++ b/cli/src/main.rs
@@ -6,6 +6,7 @@ mod new_project;
 mod program_keys;
 mod test_project;
 mod utils;
+mod workspace;
 
 use args::*;
 use build_project::*;
diff --git a/cli/src/test_project.rs b/cli/src/test_project.rs
index b1a44de..d2f61ec 100644
--- a/cli/src/test_project.rs
+++ b/cli/src/test_project.rs
@@ -1,16 +1,18 @@
+use crate::workspace::*;
 use std::process::{Command, Stdio};
 
 use crate::TestArgs;
 
 pub fn test_project(args: TestArgs) -> anyhow::Result<()> {
+    verify_steel_workspace()?;
     let mut command = Command::new("cargo");
-        command.arg("test-sbf");
+    command.arg("test-sbf");
 
-        if args.nocapture {
-            command.arg("--").arg("--nocapture");
-        }
+    if args.nocapture {
+        command.arg("--").arg("--nocapture");
+    }
 
-        command
+    command
         .stdout(Stdio::inherit())
         .stderr(Stdio::inherit())
         .status()
diff --git a/cli/src/workspace.rs b/cli/src/workspace.rs
new file mode 100644
index 0000000..2405e02
--- /dev/null
+++ b/cli/src/workspace.rs
@@ -0,0 +1,23 @@
+// src/utils.rs or src/workspace.rs
+use anyhow::{Context, Result};
+use std::fs;
+use std::path::PathBuf;
+
+pub fn verify_steel_workspace() -> Result<PathBuf> {
+    let current_dir = std::env::current_dir().context("Failed to get current directory")?;
+
+    let cargo_toml_path = current_dir.join("Cargo.toml");
+
+    if !cargo_toml_path.exists() {
+        anyhow::bail!("Error: Not in a Steel workspace.\n\nNo Cargo.toml found. Run 'steel new <name>' to create a new Steel project.");
+    }
+
+    let cargo_toml_content =
+        fs::read_to_string(&cargo_toml_path).context("Failed to read Cargo.toml")?;
+
+    if !cargo_toml_content.contains("steel") {
+        anyhow::bail!("Error: Not in a Steel workspace.\n\n. Run 'steel new <name>' to create a new Steel project.");
+    }
+
+    Ok(current_dir)
+}