diff --git a/templates/cli/internal/app/install.go.twig b/templates/cli/internal/app/install.go.twig
index 3a67a53e63..f03069689d 100644
--- a/templates/cli/internal/app/install.go.twig
+++ b/templates/cli/internal/app/install.go.twig
@@ -7,6 +7,7 @@ import (
 	"runtime"
 	"strings"
 
+	"github.com/{{ sdk.gitUserName }}/{{ sdk.gitRepoName | caseDash }}/internal/config"
 	"github.com/{{ sdk.gitUserName }}/{{ sdk.gitRepoName | caseDash }}/internal/update"
 )
 
@@ -165,7 +166,7 @@ func UpdateChecker() *update.Checker {
 		return nil
 	}
 
-	home, err := os.UserHomeDir()
+	directory, err := config.GlobalDirectory(ExecutableName)
 	if err != nil {
 		return nil
 	}
@@ -174,7 +175,7 @@ func UpdateChecker() *update.Checker {
 		RegistryURL:           NPMRegistryURL,
 		PrereleaseRegistryURL: NPMPrereleaseRegistryURL,
 		// Beside the preferences, which is already the directory this CLI owns.
-		CachePath: filepath.Join(home, "."+ExecutableName, "update-check.json"),
+		CachePath: filepath.Join(directory, "update-check.json"),
 		Current:   Version,
 	}
 }
diff --git a/templates/cli/internal/cmd/completion_test.go b/templates/cli/internal/cmd/completion_test.go
index 66524c499f..25819766ac 100644
--- a/templates/cli/internal/cmd/completion_test.go
+++ b/templates/cli/internal/cmd/completion_test.go
@@ -23,6 +23,7 @@ func setHome(t *testing.T) string {
 	home := t.TempDir()
 	t.Setenv("HOME", home)
 	t.Setenv("USERPROFILE", home)
+	t.Setenv("XDG_CONFIG_HOME", "")
 
 	return home
 }
diff --git a/templates/cli/internal/cmd/fanout_test.go b/templates/cli/internal/cmd/fanout_test.go
index 4d007a8d8d..413d38748c 100644
--- a/templates/cli/internal/cmd/fanout_test.go
+++ b/templates/cli/internal/cmd/fanout_test.go
@@ -118,6 +118,7 @@ func TestAllSubcommandsNeverPrompt(t *testing.T) {
 			home := t.TempDir()
 			t.Setenv("HOME", home)
 			t.Setenv("USERPROFILE", home)
+			t.Setenv("XDG_CONFIG_HOME", "")
 			inDirectory(t, t.TempDir())
 
 			root := NewRootCommand()
diff --git a/templates/cli/internal/cmd/generate_test.go b/templates/cli/internal/cmd/generate_test.go
index 6520d341dd..5ebe9b470b 100644
--- a/templates/cli/internal/cmd/generate_test.go
+++ b/templates/cli/internal/cmd/generate_test.go
@@ -44,6 +44,7 @@ func TestGenerateEndpointFallsBackToTheDefault(t *testing.T) {
 	home := t.TempDir()
 	t.Setenv("HOME", home)
 	t.Setenv("USERPROFILE", home)
+	t.Setenv("XDG_CONFIG_HOME", "")
 
 	if got := resolveGenerateEndpoint(""); got != config.DefaultEndpoint {
 		t.Errorf("endpoint = %q, want %q", got, config.DefaultEndpoint)
diff --git a/templates/cli/internal/config/config_test.go b/templates/cli/internal/config/config_test.go
index f6bf0a4a01..8405e2e0e8 100644
--- a/templates/cli/internal/config/config_test.go
+++ b/templates/cli/internal/config/config_test.go
@@ -394,3 +394,93 @@ func TestMigrateLegacySessionIgnoresAPartialOrModernFile(t *testing.T) {
 		})
 	}
 }
+
+func TestGlobalPathFollowsXDGConfigHome(t *testing.T) {
+	cases := []struct {
+		name    string
+		legacy  bool
+		missing bool
+		xdg     func(home string) string
+		want    func(home, xdg string) string
+	}{
+		{
+			name:   "existing home directory wins over XDG",
+			legacy: true,
+			xdg:    func(home string) string { return filepath.Join(home, "xdg") },
+			want:   func(home, _ string) string { return filepath.Join(home, ".appwrite", "prefs.json") },
+		},
+		{
+			name: "absolute XDG_CONFIG_HOME",
+			xdg:  func(home string) string { return filepath.Join(home, "xdg") },
+			want: func(_, xdg string) string { return filepath.Join(xdg, "appwrite", "prefs.json") },
+		},
+		{
+			name:    "missing XDG_CONFIG_HOME directory",
+			missing: true,
+			xdg:     func(home string) string { return filepath.Join(home, "xdg") },
+			want:    func(_, xdg string) string { return filepath.Join(xdg, "appwrite", "prefs.json") },
+		},
+		{
+			name: "unset XDG_CONFIG_HOME",
+			xdg:  func(string) string { return "" },
+			want: func(home, _ string) string { return filepath.Join(home, ".appwrite", "prefs.json") },
+		},
+		{
+			name: "relative XDG_CONFIG_HOME",
+			xdg:  func(string) string { return filepath.Join("relative", "config") },
+			want: func(home, _ string) string { return filepath.Join(home, ".appwrite", "prefs.json") },
+		},
+	}
+
+	for _, test := range cases {
+		t.Run(test.name, func(t *testing.T) {
+			home := t.TempDir()
+			t.Setenv("HOME", home)
+			t.Setenv("USERPROFILE", home)
+			xdg := test.xdg(home)
+			t.Setenv("XDG_CONFIG_HOME", xdg)
+
+			if filepath.IsAbs(xdg) && !test.missing {
+				if err := os.MkdirAll(xdg, 0o700); err != nil {
+					t.Fatal(err)
+				}
+			}
+			if test.legacy {
+				if err := os.MkdirAll(filepath.Join(home, ".appwrite"), 0o700); err != nil {
+					t.Fatal(err)
+				}
+			}
+
+			got, err := GlobalPath("appwrite")
+			if err != nil {
+				t.Fatal(err)
+			}
+			if want := test.want(home, xdg); got != want {
+				t.Errorf("GlobalPath = %q, want %q", got, want)
+			}
+		})
+	}
+}
+
+func TestGlobalWriteCreatesTheXDGDirectory(t *testing.T) {
+	home := t.TempDir()
+	xdg := filepath.Join(t.TempDir(), "config")
+	t.Setenv("HOME", home)
+	t.Setenv("USERPROFILE", home)
+	t.Setenv("XDG_CONFIG_HOME", xdg)
+
+	path, err := GlobalPath("appwrite")
+	if err != nil {
+		t.Fatal(err)
+	}
+	if err := LoadGlobal(path).Write(); err != nil {
+		t.Fatal(err)
+	}
+
+	if _, err := os.Stat(filepath.Join(xdg, "appwrite", "prefs.json")); err != nil {
+		t.Errorf("prefs.json was not written under XDG_CONFIG_HOME: %v", err)
+	}
+	if _, err := os.Stat(filepath.Join(home, ".appwrite")); !os.IsNotExist(err) {
+		t.Errorf("the home directory was created alongside XDG_CONFIG_HOME: %v", err)
+	}
+}
diff --git a/templates/cli/internal/config/global.go b/templates/cli/internal/config/global.go
index a79c53aeaa..e1bc37b98a 100644
--- a/templates/cli/internal/config/global.go
+++ b/templates/cli/internal/config/global.go
@@ -52,7 +52,7 @@ var ignoredAttributes = map[string]bool{
 	PreferenceClientID:     true,
 }
 
-// Global is the user-level preferences file, `~/.appwrite/prefs.json`.
+// Global is the user-level preferences file, `prefs.json` in GlobalDirectory.
 type Global struct {
 	path string
 	data *Object
@@ -67,12 +67,30 @@ type Session struct {
 
 // GlobalPath returns the default preferences path for the current user.
 func GlobalPath(executableName string) (string, error) {
+	directory, err := GlobalDirectory(executableName)
+	if err != nil {
+		return "", err
+	}
+
+	return filepath.Join(directory, "prefs.json"), nil
+}
+
+func GlobalDirectory(executableName string) (string, error) {
 	home, err := homeDir()
 	if err != nil {
 		return "", err
 	}
 
-	return filepath.Join(home, "."+executableName, "prefs.json"), nil
+	legacy := filepath.Join(home, "."+executableName)
+	if info, err := os.Stat(legacy); err == nil && info.IsDir() {
+		return legacy, nil
+	}
+
+	if xdg := os.Getenv("XDG_CONFIG_HOME"); filepath.IsAbs(xdg) {
+		return filepath.Join(xdg, executableName), nil
+	}
+
+	return legacy, nil
 }
 
 // LoadGlobal reads the preferences file. A missing or unparseable file yields
diff --git a/tests/e2e/languages/cli/main.go b/tests/e2e/languages/cli/main.go
index e98ca79f54..d6d2687158 100644
--- a/tests/e2e/languages/cli/main.go
+++ b/tests/e2e/languages/cli/main.go
@@ -115,6 +115,7 @@ func (h *harness) command(args ...string) *exec.Cmd {
 	command.Env = append(os.Environ(),
 		"HOME="+h.home,
 		"USERPROFILE="+h.home,
+		"XDG_CONFIG_HOME="+filepath.Join(h.home, ".config"),
 	)
 
 	return command