diff --git a/README.md b/README.md
index c7c7ce0..789e367 100644
--- a/README.md
+++ b/README.md
@@ -85,10 +85,14 @@ This is a tutorial project of [Pocket Flow](https://github.com/The-Pocket/Pocket
 
 7. Generate a complete codebase tutorial by running the main script:
     ```bash
-    python main.py https://github.com/username/repo --include "*.py" "*.js" --exclude "tests/*" --max-size 50000
+    # Analyze a GitHub repository
+    python main.py --repo https://github.com/username/repo --include "*.py" "*.js" --exclude "tests/*" --max-size 50000
+
+    # Or, analyze a local directory
+    python main.py --dir /path/to/your/codebase --include "*.py" --exclude "*test*"
     ```
-    - `repo_url` - URL of the GitHub repository (required)
-    - `-n, --name` - Project name (optional, derived from URL if omitted)
+    - `--repo` or `--dir` - Specify either a GitHub repo URL or a local directory path (required, mutually exclusive)
+    - `-n, --name` - Project name (optional, derived from URL/directory if omitted)
     - `-t, --token` - GitHub token (or set GITHUB_TOKEN environment variable)
     - `-o, --output` - Output directory (default: ./output)
     - `-i, --include` - Files to include (e.g., "*.py" "*.js")
diff --git a/docs/design.md b/docs/design.md
index e70decd..3cd5d92 100644
--- a/docs/design.md
+++ b/docs/design.md
@@ -68,8 +68,12 @@ flowchart TD
 1.  **`crawl_github_files`** (`utils/crawl_github_files.py`) - *External Dependency: requests*
     *   *Input*: `repo_url` (str), `token` (str, optional), `max_file_size` (int, optional), `use_relative_paths` (bool, optional), `include_patterns` (set, optional), `exclude_patterns` (set, optional)
     *   *Output*: `dict` containing `files` (dict[str, str]) and `stats`.
-    *   *Necessity*: Required by `FetchRepo` to download and read the source code from GitHub. Handles cloning logic implicitly via API calls, filtering, and file reading.
-2.  **`call_llm`** (`utils/call_llm.py`) - *External Dependency: LLM Provider API (e.g., OpenAI, Anthropic)*
+    *   *Necessity*: Required by `FetchRepo` to download and read source code from GitHub if a `repo_url` is provided. Handles cloning logic implicitly via API calls, filtering, and file reading.
+2.  **`crawl_local_files`** (`utils/crawl_local_files.py`) - *External Dependency: None*
+    *   *Input*: `directory` (str), `max_file_size` (int, optional), `use_relative_paths` (bool, optional), `include_patterns` (set, optional), `exclude_patterns` (set, optional)
+    *   *Output*: `dict` containing `files` (dict[str, str]).
+    *   *Necessity*: Required by `FetchRepo` to read source code from a local directory if a `local_dir` path is provided. Handles directory walking, filtering, and file reading.
+3.  **`call_llm`** (`utils/call_llm.py`) - *External Dependency: LLM Provider API (e.g., OpenAI, Anthropic)*
     *   *Input*: `prompt` (str)
     *   *Output*: `response` (str)
     *   *Necessity*: Used by `IdentifyAbstractions`, `AnalyzeRelationships`, `OrderChapters`, and `WriteChapters` for code analysis and content generation. Needs careful prompt engineering and YAML validation (implicit via `yaml.safe_load` which raises errors).
@@ -105,11 +109,11 @@ shared = {
 > Notes for AI: Carefully decide whether to use Batch/Async Node/Flow. Removed explicit try/except in exec, relying on Node's built-in fault tolerance.
 
 1.  **`FetchRepo`**
-    *   *Purpose*: Download the repository code and load relevant files into memory using the crawler utility.
+    *   *Purpose*: Download the repository code (from GitHub) or read from a local directory, loading relevant files into memory using the appropriate crawler utility.
     *   *Type*: Regular
     *   *Steps*:
-        *   `prep`: Read `repo_url`, optional `github_token`, `output_dir` from shared store. Define `include_patterns` (e.g., `{"*.py", "*.js", "*.md"}`) and `exclude_patterns` (e.g., `{"*test*", "docs/*"}`). Set `max_file_size` and `use_relative_paths` flags. Determine `project_name` from `repo_url` if not present in shared.
-        *   `exec`: Call `crawl_github_files(shared["repo_url"], token=shared["github_token"], include_patterns=..., exclude_patterns=..., max_file_size=..., use_relative_paths=True)`. Convert the resulting `files` dictionary into a list of `(path, content)` tuples.
+        *   `prep`: Read `repo_url` (if provided), `local_dir` (if provided), optional `github_token`, `output_dir` from shared store. Define `include_patterns` (e.g., `{"*.py", "*.js", "*.md"}`) and `exclude_patterns` (e.g., `{"*test*", "docs/*"}`). Set `max_file_size` and `use_relative_paths` flags. Determine `project_name` from `repo_url` or `local_dir` if not present in shared.
+        *   `exec`: If `repo_url` is present, call `crawl_github_files(...)`. Otherwise, call `crawl_local_files(...)`. Convert the resulting `files` dictionary into a list of `(path, content)` tuples.
         *   `post`: Write the list of `files` tuples and the derived `project_name` (if applicable) to the shared store.
 
 2.  **`IdentifyAbstractions`**
diff --git a/nodes.py b/nodes.py
index 879c9d7..4623333 100644
--- a/nodes.py
+++ b/nodes.py
@@ -5,17 +5,6 @@ from utils.crawl_github_files import crawl_github_files
 from utils.call_llm import call_llm 
 from utils.crawl_local_files import crawl_local_files
 
-# Helper to create context from files, respecting limits (basic example)
-def create_llm_context(files_data):
-    context = ""
-    file_info = [] # Store tuples of (index, path)
-    for i, (path, content) in enumerate(files_data):
-        entry = f"--- File Index {i}: {path} ---\n{content}\n\n"
-        context += entry
-        file_info.append((i, path))
-
-    return context, file_info # file_info is list of (index, path)
-
 # Helper to get content for specific file indices
 def get_content_for_indices(files_data, indices):
     content_map = {}
@@ -87,6 +76,18 @@ class IdentifyAbstractions(Node):
     def prep(self, shared):
         files_data = shared["files"]
         project_name = shared["project_name"]  # Get project name
+        
+        # Helper to create context from files, respecting limits (basic example)
+        def create_llm_context(files_data):
+            context = ""
+            file_info = [] # Store tuples of (index, path)
+            for i, (path, content) in enumerate(files_data):
+                entry = f"--- File Index {i}: {path} ---\n{content}\n\n"
+                context += entry
+                file_info.append((i, path))
+
+            return context, file_info # file_info is list of (index, path)
+
         context, file_info = create_llm_context(files_data)
         # Format file info for the prompt (comment is just a hint for LLM)
         file_listing_for_prompt = "\n".join([f"- {idx} # {path}" for idx, path in file_info])