diff --git a/src/dspy_cli/commands/new.py b/src/dspy_cli/commands/new.py
index dc81e80..39c1607 100644
--- a/src/dspy_cli/commands/new.py
+++ b/src/dspy_cli/commands/new.py
@@ -51,7 +51,12 @@
     default=None,
     help="LiteLLM model string (e.g., anthropic/claude-sonnet-4-5, openai/gpt-4o)",
 )
-def new(project_name, program_name, signature, module_type, model):
+@click.option(
+    "--api-key",
+    default=None,
+    help="API key for the LLM provider (will be stored in .env)",
+)
+def new(project_name, program_name, signature, module_type, model, api_key):
     """Create a new DSPy project with boilerplate structure.
 
     Creates a directory with PROJECT_NAME and sets up a complete
@@ -162,8 +167,13 @@ def new(project_name, program_name, signature, module_type, model):
         detected_key, env_var_name = detect_api_key(provider)
         api_key_env_var = env_var_name
 
-        # Prompt for API key (will ask to confirm if detected, or enter new one)
-        api_key_value = prompt_api_key(provider_display, env_var_name, detected_key)
+        # Use provided API key or prompt for one
+        if api_key is not None:
+            # API key was provided via CLI
+            api_key_value = api_key
+        else:
+            # Prompt for API key (will ask to confirm if detected, or enter new one)
+            api_key_value = prompt_api_key(provider_display, env_var_name, detected_key)
     else:
         # For local models, optionally prompt for api_base
         click.echo(click.style(f"Detected local model provider: {provider_display}", fg="green"))
diff --git a/tests/test_commands_smoke.py b/tests/test_commands_smoke.py
index 82448e6..aced8d0 100644
--- a/tests/test_commands_smoke.py
+++ b/tests/test_commands_smoke.py
@@ -26,13 +26,29 @@ def tmp_cwd(tmp_path, monkeypatch):
         os.chdir(old)
 
 
+def with_new_defaults(args):
+    """Add default args to 'new' command to make it non-interactive."""
+    out = args[:]
+    if "--program-name" not in out and "-p" not in out:
+        out += ["--program-name", "main"]
+    if "--module-type" not in out and "-m" not in out:
+        out += ["--module-type", "Predict"]
+    if "--signature" not in out and "-s" not in out:
+        out += ["--signature", "question -> answer"]
+    if "--model" not in out:
+        out += ["--model", "openai/gpt-4o-mini"]
+    if "--api-key" not in out:
+        out += ["--api-key", ""]  # Empty string to skip API key prompt
+    return out
+
+
 def test_cli_e2e_smoke(runner, tmp_cwd, monkeypatch):
     """End-to-end smoke test: new -> generate -> serve.
     
     Creates project, generates components, validates serve args.
     """
     # 1. Test 'new' command
-    res = runner.invoke(main, ["new", "acme-app"], catch_exceptions=False)
+    res = runner.invoke(main, with_new_defaults(["new", "acme-app"]), catch_exceptions=False)
     assert res.exit_code == 0
     
     proj = tmp_cwd / "acme-app"
@@ -42,8 +58,8 @@ def test_cli_e2e_smoke(runner, tmp_cwd, monkeypatch):
         assert (proj / name).exists(), f"Missing {name}"
     
     # Verify code structure created
-    assert (proj / "src" / "acme_app" / "modules" / "acme_app_predict.py").exists()
-    assert (proj / "src" / "acme_app" / "signatures" / "acme_app.py").exists()
+    assert (proj / "src" / "acme_app" / "modules" / "main_predict.py").exists()
+    assert (proj / "src" / "acme_app" / "signatures" / "main.py").exists()
     assert (proj / "tests" / "test_modules.py").exists()
     
     # 2. Test 'generate scaffold' command
@@ -114,7 +130,7 @@ def test_new_with_signature(runner, tmp_cwd):
     """Test 'new' command with custom signature."""
     res = runner.invoke(
         main,
-        ["new", "my-project", "-p", "analyzer", "-s", "text, context: list[str] -> summary"],
+        with_new_defaults(["new", "my-project", "-p", "analyzer", "-s", "text, context: list[str] -> summary"]),
         catch_exceptions=False
     )
     assert res.exit_code == 0
@@ -133,7 +149,7 @@ def test_new_with_signature(runner, tmp_cwd):
 def test_generate_different_module_types(runner, tmp_cwd):
     """Test generating different module types."""
     # Create a project first
-    res = runner.invoke(main, ["new", "test-app"], catch_exceptions=False)
+    res = runner.invoke(main, with_new_defaults(["new", "test-app"]), catch_exceptions=False)
     assert res.exit_code == 0
     
     proj = tmp_cwd / "test-app"
diff --git a/tests/test_serve_integration.py b/tests/test_serve_integration.py
index e65c6c9..3b2d6aa 100644
--- a/tests/test_serve_integration.py
+++ b/tests/test_serve_integration.py
@@ -38,15 +38,20 @@ def temp_project(tmp_path, monkeypatch):
     # Change to temp directory
     monkeypatch.chdir(tmp_path)
     
-    # Use actual 'dspy-cli new' command to create project
+    # Use actual 'dspy-cli new' command to create project (with defaults to avoid prompts)
     runner = CliRunner()
-    result = runner.invoke(main, ["new", "testpkg"], catch_exceptions=False)
+    result = runner.invoke(
+        main, 
+        ["new", "testpkg", "--program-name", "main", "--module-type", "Predict", 
+         "--signature", "question -> answer", "--model", "openai/gpt-4o-mini", "--api-key", ""], 
+        catch_exceptions=False
+    )
     assert result.exit_code == 0
     
     project_root = tmp_path / "testpkg"
     
     # Remove the default module and add our no-LLM Echo module
-    default_module = project_root / "src" / "testpkg" / "modules" / "testpkg_predict.py"
+    default_module = project_root / "src" / "testpkg" / "modules" / "main_predict.py"
     if default_module.exists():
         default_module.unlink()