diff --git a/README.md b/README.md
index 6187d273..a9e66c85 100644
--- a/README.md
+++ b/README.md
@@ -45,19 +45,14 @@ Configure Compodium in your Nuxt project by customizing the settings in your `nu
 ```ts
 export default defineNuxtConfig({
   compodium: {
-    /* Customize your component collections */
-    collections: [
-      { name: 'Components', path: 'components/' }
-    ],
+    /* Customize compodium's base directory */
+    dir: 'compodium/',
 
-    /* Whether to include default collections for third-party libraries. */
-    includeDefaultCollections: true,
-
-    /* Customize the directory for preview examples */
-    examples: 'compodium/',
+    /* List of glob patterns to exclude components */
+    exclude: [],
 
-    /* Customize the preview component path. */
-    previewComponent: 'compodium/preview.vue',
+    /* Whether to include default collections for third-party libraries. */
+    includeLibraryCollections: true,
 
     extras: {
       ui: {
@@ -110,37 +105,13 @@ body {
 > [!NOTE]
 > Compodium renders outside of your `app.vue` component. This is useful if you need to inject CSS or provide parent components.
 
-### Collections
-
-You can control which components are added to the preview using the `collections` configuration. All components inside the specified `path` of your collection will be scanned and added to it.
-
-```ts
-{
-  name: 'Components',
-  path: 'components',
-  /* Add a prefix to all components, similar to Nuxt's components.prefix option */
-  prefix: '',
-  /* Glob patterns for components to ignore */
-  ignore: [],
-  /* If true, the path will be resolved from your node_modules/ folder */
-  external: false,
-  /* Specify a function to generate the components' documentation URL. This will display a button to go to the component's documentation in the preview if specified */
-  getDocUrl?: (componentName: string) => string | null
-}
-```
-
-By default, Compodium will detect the UI libraries you have installed and automatically add a collection with examples for all components. You can disable this by setting `includeDefaultCollections` to `false`.
-
-> [!NOTE]
-> Currently, this feature supports Nuxt UI. More libraries will be added soon!
-
 ### Component Examples
 
-You can provide examples for your components in the `compodium/examples` folder. Examples will be matched to components based on the filename. Each example must be named after its corresponding component, followed by the `Example` keyword and an optional label.
+You can provide examples for your components in the `compodium/examples/` folder. Examples will be matched to components based on the filename. Each example must be named after its corresponding component, followed by the `Example` keyword and an optional label.
 
 ```bash
 compodium
-└── components                          # The collection's name
+└── examples
     ├── BaseInputExampleDisabled.vue    # Will be added to the BaseInput component.
     ├── BaseButtonExample.vue           # Will be the main example for the BaseButton component.
     └── BaseButtonExampleWithLabel.vue  # Will be added to the BaseButton component.
diff --git a/playground/compodium/components/CompodiumWelcomeExample.vue b/playground/compodium/examples/CompodiumWelcomeExample.vue
similarity index 100%
rename from playground/compodium/components/CompodiumWelcomeExample.vue
rename to playground/compodium/examples/CompodiumWelcomeExample.vue
diff --git a/playground/compodium/components/CompodiumWelcomeExampleWithShake.vue b/playground/compodium/examples/CompodiumWelcomeExampleWithShake.vue
similarity index 100%
rename from playground/compodium/components/CompodiumWelcomeExampleWithShake.vue
rename to playground/compodium/examples/CompodiumWelcomeExampleWithShake.vue
diff --git a/playground/compodium/components/CompodiumWelcomeExampleWithSpin.vue b/playground/compodium/examples/CompodiumWelcomeExampleWithSpin.vue
similarity index 100%
rename from playground/compodium/components/CompodiumWelcomeExampleWithSpin.vue
rename to playground/compodium/examples/CompodiumWelcomeExampleWithSpin.vue
diff --git a/playground/components/InputProps.vue b/playground/components/InputProps.vue
deleted file mode 100644
index 4eb0ed7d..00000000
--- a/playground/components/InputProps.vue
+++ /dev/null
@@ -1,57 +0,0 @@
-<script setup lang="ts">
-const _props = defineProps<{
-  string?: string
-  number?: number
-  boolean?: boolean
-  primitiveUnion?: string | number | boolean
-  stringArray?: string[]
-  /**
-    Icon example
-    @IconifyIcon
-   */
-  icon?: string
-  /**
-   * This is a very long description of things I don't know yet what I'm going to say but it just needs to be long, not to make sense.
-   */
-  numberArray?: number[]
-  /**
-   * This is a very long description of things I don't know yet what I'm going to say but it just needs to be long, not to make sense.
-   */
-  booleanArray?: boolean[]
-  /**
-   * This is a very long description of things I don't know yet what I'm going to say but it just needs to be long, not to make sense.
-   */
-  object?: { foo: string }
-  /**
-   * This is a very long description of things I don't know yet what I'm going to say but it just needs to be long, not to make sense.
-   */
-  objectArray?: ({ foo: string | number } | { fee: string })[]
-  /**
-   * This is a very long description of things I don't know yet what I'm going to say but it just needs to be long, not to make sense.
-   */
-  arrayOfMultipleObjects?: ({ foo: string | number } | { fee: string })[]
-  multipleArrayOfMultipleObjects?: ({ foo: string | number } | { fee: string })[] | ({ foo: number } | { fee: string })[]
-  objectMatrix?: (({ foo: string | number } | { fee: string })[] | ({ foo: number } | { fee: string })[])[]
-  numberMatrix?: number[][]
-  literalMatrix?: (number | string | boolean)[][]
-  aVeryVeryVeryLongPropNameWithLongType?: ({ foo: string | number } | { fee: string })[] | ({ foo: number } | { fee: string })[][]
-}>()
-
-extendCompodiumMeta<typeof _props>({
-  defaultProps: {
-    string: 'hello',
-    primitiveUnion: 42,
-    objectArray: [{ foo: 'bar' }],
-    object: { foo: 'bar' },
-    arrayOfMultipleObjects: [{ foo: 'bar' }, { fee: 'bar' }],
-    multipleArrayOfMultipleObjects: [{ foo: 'bar' }, { fee: 'bar' }],
-    objectMatrix: [[{ foo: 'bar' }, { fee: 'bar' }], [{ foo: 42 }]],
-    numberMatrix: [[42, 42], [42]],
-    literalMatrix: [['string', true], [42]]
-  }
-})
-</script>
-
-<template>
-  <p> Supported prop types </p>
-</template>
diff --git a/playground/components/SupportedProps.vue b/playground/components/SupportedProps.vue
new file mode 100644
index 00000000..be110040
--- /dev/null
+++ b/playground/components/SupportedProps.vue
@@ -0,0 +1,52 @@
+<script setup lang="ts">
+const _props = defineProps<{
+  // Basic types
+  string?: string
+  number?: number
+  boolean?: boolean
+  primitiveUnion?: string | number | boolean
+
+  // Arrays
+  stringArray?: string[]
+  numberArray?: number[]
+  booleanArray?: boolean[]
+
+  /**
+   * @IconifyIcon
+   */
+  icon?: string
+
+  // Objects
+  object?: { foo: string }
+  objectArray?: ({ foo: string | number } | { fee: string })[]
+  arrayOfMultipleObjects?: ({ foo: string | number } | { fee: string })[]
+
+  // Complex types
+  multipleArrayOfMultipleObjects?:
+    | ({ foo: string | number } | { fee: string })[]
+    | ({ foo: number } | { fee: string })[]
+  objectMatrix?:
+    | (({ foo: string | number } | { fee: string })[]
+      | ({ foo: number } | { fee: string })[])[]
+  numberMatrix?: number[][]
+  literalMatrix?: (number | string | boolean)[][]
+}>()
+
+extendCompodiumMeta<typeof _props>({
+  defaultProps: {
+    string: 'hello',
+    primitiveUnion: 42,
+    objectArray: [{ foo: 'bar' }],
+    object: { foo: 'bar' },
+    arrayOfMultipleObjects: [{ foo: 'bar' }, { fee: 'bar' }],
+    multipleArrayOfMultipleObjects: [{ foo: 'bar' }, { fee: 'bar' }],
+    objectMatrix: [[{ foo: 'bar' }, { fee: 'bar' }], [{ foo: 42 }]],
+    numberMatrix: [[42, 42], [42]],
+    literalMatrix: [['string', true], [42]]
+  }
+})
+</script>
+
+<template>
+  <p>Supported prop types</p>
+</template>
diff --git a/src/module.ts b/src/module.ts
index a888f74f..97aeedba 100644
--- a/src/module.ts
+++ b/src/module.ts
@@ -14,21 +14,19 @@ import { watch } from 'chokidar'
 import { compodiumVite } from './vite'
 import { colors } from 'consola/utils'
 import { version } from '../package.json'
-import { joinURL } from 'ufo'
+import { joinURL, withTrailingSlash } from 'ufo'
 import { getLibraryCollections } from './runtime/libs'
+import micromatch from 'micromatch'
 
 export interface ModuleOptions {
-  /* Customize your component collections */
-  collections?: CollectionConfig[]
-
   /* Whether to include default collections for third-party libraries. */
-  includeDefaultCollections: boolean
+  includeLibraryCollections: boolean
 
-  /* Customize the directory for preview examples. Defaults to 'compodium/' */
-  examples: string
+  /* Customize compodium's base directory. Defaults to 'compodium/' */
+  dir: string
 
-  /* Customize the preview component path. Defaults to compodium/preview.vue */
-  previewComponent: string
+  /* List of glob patterns to exclude components */
+  exclude: string[]
 
   extras: {
     ui: {
@@ -44,9 +42,8 @@ export default defineNuxtModule<ModuleOptions>({
     configKey: 'compodium'
   },
   defaults: {
-    previewComponent: 'compodium/preview.vue',
-    examples: 'compodium/',
-    includeDefaultCollections: true,
+    dir: 'compodium/',
+    includeLibraryCollections: true,
     extras: {
       ui: {
         matchColors: true
@@ -63,17 +60,13 @@ export default defineNuxtModule<ModuleOptions>({
 
     if (!nuxt.options.dev) return
 
-    addComponentsDir({ path: resolve('./runtime/components') })
+    const compodiumComponentsDir = resolve('./runtime/components')
+    addComponentsDir({ path: compodiumComponentsDir, priority: -1 })
 
     const appResolver = createResolver(nuxt.options.rootDir)
+    const libraryCollections = options.includeLibraryCollections ? await getLibraryCollections(nuxt.options, appResolver) : []
 
-    options.collections ??= [
-      { name: 'Components', path: nuxt.options.future?.compatibilityVersion === 4 ? 'app/components/' : 'components/' }
-    ]
-
-    const libraryCollections = options.includeDefaultCollections ? await getLibraryCollections(nuxt.options, appResolver) : []
-
-    let previewComponent = appResolver.resolve(options.previewComponent)
+    let previewComponent = appResolver.resolve(joinURL(options.dir, 'preview.vue'))
     if (!existsSync(previewComponent)) {
       previewComponent = resolve('./runtime/preview.vue')
     }
@@ -83,13 +76,13 @@ export default defineNuxtModule<ModuleOptions>({
       getContents: () => `export { default } from '${previewComponent}'`
     })
 
-    nuxt.options.appConfig.compodium = {
-      collections: options.collections.map(c => ({ ...c, id: c.id ?? camelCase(c.name), path: appResolver.resolve(c.path) })).concat(libraryCollections),
-      matchUIColors: options.extras?.ui?.matchColors
-    }
-
     const appConfig = nuxt.options.appConfig
-    appConfig.compodium = defu(nuxt.options.appConfig.compodium as any, { defaultProps })
+
+    appConfig.compodium = defu(appConfig.compodium as any, {
+      matchUIColors: options.extras?.ui?.matchColors,
+      defaultProps,
+      componentsPath: join(nuxt.options.buildDir, '/compodium/components.json')
+    })
 
     nuxt.hooks.hookOnce('app:resolve', (app) => {
       const rootComponent = app.rootComponent
@@ -106,84 +99,134 @@ export default defineNuxtModule<ModuleOptions>({
       if (pages.length) pages.push({ path: '/__compodium__/renderer', file: resolve('./runtime/renderer-placeholder.vue') })
     })
 
-    const examplesDirs = [
-      appResolver.resolve(options.examples),
-      ...options.collections.filter(c => c.examplesPath).map(c => appResolver.resolve(c.examplesPath as string))
-    ]
-
-    const libraryExampleDirs = libraryCollections.map(c => ({ path: resolve(c.examplePath), pattern: '**/*.{vue,ts,tsx}', prefix: c.prefix }))
-
-    const exampleComponents = options.examples
-      ? (await scanComponents([...examplesDirs.map(examplesDir => ({
-          path: examplesDir,
-          pattern: '**/*.{vue,ts,tsx}'
-        })), ...libraryExampleDirs], nuxt.options.rootDir)).map(c => ({ ...c, isExample: true }))
-      : []
-
-    // Watch for changes in example directory
-    const examplesWatcher = watch([...examplesDirs, ...libraryExampleDirs.map(e => e.path)], {
-      persistent: true,
-      awaitWriteFinish: {
-        stabilityThreshold: 200,
-        pollInterval: 100
+    // This file will be read directly server side. This is a hack after realising that virtual module didn't work with HMR server side.
+    nuxt.options.nitro.virtual = nuxt.options.nitro.virtual || {}
+    nuxt.options.nitro.virtual['#compodium/nitro/dirs'] = () => {
+      return readFileSync(join(nuxt.options.buildDir, '/compodium/dirs.mjs'), 'utf-8')
+    }
+    nuxt.options.nitro.virtual['#compodium/nitro/collections'] = () => {
+      return readFileSync(join(nuxt.options.buildDir, '/compodium/collections.mjs'), 'utf-8')
+    }
+
+    nuxt.hooks.hookOnce('components:dirs', async (dirs) => {
+      const collections = dirs.map((dir) => {
+        const path = typeof dir === 'string' ? dir : dir.path
+        return {
+          ...typeof dir === 'string' ? {} : dir,
+          path,
+          name: 'Components',
+          id: 'components'
+        }
+      }).filter(collection => !micromatch.isMatch(
+        withTrailingSlash(collection.path),
+        [compodiumComponentsDir, 'node_modules/**'],
+        { contains: true })
+      )
+
+      const examplesDir = {
+        path: appResolver.resolve(joinURL(options.dir, 'examples/')),
+        pattern: '**/*.{vue,ts,tsx}'
       }
-    })
 
-    // FIXME: This might cause a race condition with the vite plugin.
-    examplesWatcher.on('add', async (path) => {
-      const comps = await scanComponents(examplesDirs.map(examplesDir => ({ path: examplesDir, pattern: '**/*.{vue,ts,tsx}' })), nuxt.options.rootDir)
-      const newExample = comps.find(c => c.filePath === path)
-      if (newExample) {
-        exampleComponents.push({ ...newExample, isExample: true })
+      const libraryExampleDirs = libraryCollections.map(c => ({
+        path: resolve(c.examplePath),
+        pattern: '**/*.{vue,ts,tsx}',
+        prefix: c.prefix
+      }))
+
+      // @ts-expect-error type not resolved
+      appConfig.compodium.collections = collections.concat(libraryCollections)
+
+      const exampleComponents = (await scanComponents([
+        examplesDir,
+        ...libraryExampleDirs
+      ], nuxt.options.rootDir) ?? []).map(c => ({ ...c, isExample: true }))
+
+      // Watch for changes in example directory
+      const examplesWatcher = watch([examplesDir, ...libraryExampleDirs].map(e => e.path), {
+        persistent: true,
+        awaitWriteFinish: {
+          stabilityThreshold: 200,
+          pollInterval: 100
+        }
+      })
+
+      examplesWatcher.on('add', async (path) => {
+        const comps = await scanComponents([examplesDir], nuxt.options.rootDir)
+        const newExample = comps.find(c => c.filePath === path)
+        if (newExample) {
+          exampleComponents.push({ ...newExample, isExample: true })
+          await updateTemplates({
+            filter: template => template.filename === 'compodium/components.json'
+          })
+        }
+      })
+
+      examplesWatcher.on('unlink', async (path) => {
+        const index = exampleComponents.findIndex(c => c.filePath === path)
+        if (index !== -1) exampleComponents.splice(index, 1)
         await updateTemplates({
           filter: template => template.filename === 'compodium/components.json'
         })
-      }
-    })
-
-    examplesWatcher.on('unlink', async (path) => {
-      const index = exampleComponents.findIndex(c => c.filePath === path)
-      if (index !== -1) exampleComponents.splice(index, 1)
-      await updateTemplates({
-        filter: template => template.filename === 'compodium/components.json'
       })
-    })
 
-    addTemplate({
-      filename: 'compodium/components.json',
-      write: true,
-      getContents: ({ nuxt, app }) => {
-        const collections = (nuxt.options.appConfig.compodium as any).collections
-        const components = [...app.components, ...exampleComponents]
-        return JSON.stringify(components.reduce((acc, component) => {
-          const collection = getComponentCollection<CollectionConfig & Collection>(component, collections)
-
-          const componentId = camelCase(component.kebabName)
-          const baseName = collection?.prefix
-            ? component.pascalName.replace(new RegExp(`^${pascalCase(collection?.prefix)}`), '')
-            : component.pascalName
-
-          acc[componentId] = {
-            ...component,
-            baseName,
-            componentId,
-            collectionId: collection?.id,
-            docUrl: collection?.getDocUrl?.(component.pascalName)
-          }
-          return acc
-        }, {} as Record<string, any>), null, 2)
-      }
-    })
+      addTemplate({
+        filename: 'compodium/components.json',
+        write: true,
+        getContents: ({ app }) => {
+          const collections = (appConfig.compodium as any).collections
+          const components = [...app.components, ...exampleComponents].reduce((acc, component) => {
+            if (options?.exclude?.length && micromatch.isMatch(component.filePath, options.exclude, { contains: true })) {
+              return acc
+            }
+
+            const collection = getComponentCollection<CollectionConfig & Collection>(component, collections)
+            const componentId = camelCase(component.kebabName)
+            const baseName = collection?.prefix
+              ? component.pascalName.replace(new RegExp(`^${pascalCase(collection?.prefix)}`), '')
+              : component.pascalName
+
+            acc[componentId] = {
+              ...component,
+              baseName,
+              componentId,
+              collectionId: collection?.id,
+              docUrl: collection?.getDocUrl?.(component.pascalName)
+            }
+            return acc
+          }, {} as Record<string, any>)
+
+          return JSON.stringify(components, null, 2)
+        }
+      })
 
-    nuxt.hooks.hookOnce('components:dirs', (dirs) => {
       addTemplate({
         filename: 'compodium/dirs.mjs',
         write: true,
         getContents: () => {
-          return `export default ${JSON.stringify([...dirs, ...examplesDirs, ...libraryExampleDirs])}`
+          return `export default ${JSON.stringify([...dirs, examplesDir, ...libraryExampleDirs])}`
         }
       })
-      addVitePlugin(compodiumVite({ dirs: [...dirs, ...examplesDirs, ...libraryExampleDirs] }))
+
+      addTemplate({
+        filename: 'compodium/collections.mjs',
+        write: true,
+        getContents: () => {
+          return `export default ${JSON.stringify(collections.concat(libraryCollections))}`
+        }
+      })
+
+      // This file will be read directly server side. This is a hack after realising that virtual module didn't work with HMR server side.
+      nuxt.options.nitro.virtual!['#compodium/nitro/dirs'] = () => {
+        return readFileSync(join(nuxt.options.buildDir, '/compodium/dirs.mjs'), 'utf-8')
+      }
+      nuxt.options.nitro.virtual!['#compodium/nitro/collections'] = () => {
+        return readFileSync(join(nuxt.options.buildDir, '/compodium/collections.mjs'), 'utf-8')
+      }
+
+      addVitePlugin(compodiumVite({
+        dirs: [...dirs, examplesDir, ...libraryExampleDirs]
+      }))
     })
 
     if (process.env.COMPODIUM_LOCAL === 'true') {
@@ -225,14 +268,6 @@ export default defineNuxtModule<ModuleOptions>({
       })
     }
 
-    // This file will be read directly server side. This is a hack after realising that virtual module didn't work with HMR server side.
-    nuxt.options.nitro.virtual = nuxt.options.nitro.virtual || {}
-    nuxt.options.nitro.virtual['#compodium/nitro/dirs'] = () => {
-      return readFileSync(join(nuxt.options.buildDir, '/compodium/dirs.mjs'), 'utf-8')
-    }
-
-    (appConfig.compodium as any).componentsPath = join(nuxt.options.buildDir, '/compodium/components.json')
-
     addServerHandler({
       method: 'get',
       route: '/__compodium__/api/collections',
diff --git a/src/runtime/server/api/collections.get.ts b/src/runtime/server/api/collections.get.ts
index f7c8ba02..1563463b 100644
--- a/src/runtime/server/api/collections.get.ts
+++ b/src/runtime/server/api/collections.get.ts
@@ -2,12 +2,12 @@ import fs from 'node:fs/promises'
 import { defineEventHandler } from 'h3'
 import type { Component, ComponentCollection, Collection, ComponentExample } from '../../../types'
 import { useAppConfig } from '#imports'
-import { pascalCase } from 'scule'
 import { getComponentCollection } from '../../utils'
 
 export default defineEventHandler(async () => {
-  const config = useAppConfig().compodium as any
-  const collections = config.collections as Collection[]
+  const config = (useAppConfig().compodium) as any
+  // @ts-expect-error virtual file
+  const collections: Collection[] = await import('#compodium/nitro/collections').then(i => i.default)
 
   const componentsRaw = await fs.readFile(config.componentsPath, 'utf-8')
   const components = Object.values(JSON.parse(componentsRaw)) as (Component | ComponentExample)[]
@@ -17,10 +17,8 @@ export default defineEventHandler(async () => {
     const collection = getComponentCollection(component, collections)
     if (!collection || component.isExample) return acc
 
-    const collectionPrefix = collection.external ? '' : pascalCase(collection.name)
-
-    const componentExamples = examples?.filter(e => e.pascalName.match(`${collectionPrefix}${component.pascalName}Example`))
-    const mainExample = componentExamples.find(e => e.pascalName === `${collectionPrefix}${component.pascalName}Example`)
+    const componentExamples = examples?.filter(e => e.pascalName.startsWith(`${component.pascalName}Example`))
+    const mainExample = componentExamples.find(e => e.pascalName === `${component.pascalName}Example`)
 
     acc[collection.id] ??= { ...collection, components: {} }
     acc[collection.id].components[component.componentId] = {
@@ -30,7 +28,7 @@ export default defineEventHandler(async () => {
       componentId: component.componentId,
       collectionId: collection.id,
       examples: componentExamples.filter(e => e.pascalName !== mainExample?.pascalName).map(e => ({
-        name: e.pascalName.replace(`${collectionPrefix}${component.pascalName}Example`, ''),
+        name: e.pascalName.replace(`${component.pascalName}Example`, ''),
         ...e,
         collectionId: collection.id,
         componentId: component.componentId
diff --git a/src/types.d.ts b/src/types.d.ts
index cffdba46..73d7cc93 100644
--- a/src/types.d.ts
+++ b/src/types.d.ts
@@ -67,7 +67,6 @@ export type Collection = {
   icon?: string
   prefix?: string
   ignore?: string[]
-  examplesPath?: string
 }
 
 export type ComponentCollection = Collection & {
diff --git a/src/utils.ts b/src/utils.ts
index c96c29ac..7568d440 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -12,7 +12,7 @@ import micromatch from 'micromatch'
 export function getComponentCollection<T = Collection | CollectionConfig>(component: Component, collections: T[]) {
   return collections.find((c: any) => {
     if (!c.external && component.filePath?.match('node_modules/')) return false
-    return micromatch.isMatch(component.filePath, [c.path], { ignore: c.ignore, contains: true })
+    return micromatch.isMatch(component.filePath, [c.path], { contains: true })
   })
 }
 
diff --git a/test/basic.test.ts b/test/basic.test.ts
index cb50f248..25ac4859 100644
--- a/test/basic.test.ts
+++ b/test/basic.test.ts
@@ -41,13 +41,13 @@ describe('basic', async () => {
       const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
       expect(collections.components.components.basicComponent.examples).toEqual([
         expect.objectContaining({
-          baseName: 'ComponentsBasicComponentExampleWithSuffix',
+          baseName: 'BasicComponentExampleWithSuffix',
           collectionId: 'components',
           componentId: 'basicComponent',
-          shortPath: 'compodium/components/BasicComponentExampleWithSuffix.vue',
+          shortPath: 'compodium/examples/BasicComponentExampleWithSuffix.vue',
           isExample: true,
           name: 'WithSuffix',
-          pascalName: 'ComponentsBasicComponentExampleWithSuffix'
+          pascalName: 'BasicComponentExampleWithSuffix'
         })
       ])
     })
@@ -55,17 +55,22 @@ describe('basic', async () => {
     it('overrides component with main example', async () => {
       const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
       expect(collections.components.components.basicComponent).toEqual(expect.objectContaining({
-        pascalName: 'ComponentsBasicComponentExample',
-        shortPath: 'compodium/components/BasicComponentExample.vue',
+        pascalName: 'BasicComponentExample',
+        shortPath: 'compodium/examples/BasicComponentExample.vue',
         collectionId: 'components',
         componentId: 'basicComponent'
       }))
     })
+
+    it('ignores excluded components', async () => {
+      const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
+      expect(collections.components.components.excludedComponent).toBeUndefined()
+    })
   })
 
   describe('examples api', () => {
     it('works', async () => {
-      const example = await $fetch('/__compodium__/api/example/componentsBasicComponentExample')
+      const example = await $fetch('/__compodium__/api/example/basicComponentExample')
       expect(example).toMatchInlineSnapshot(`
         "<template>
           <BasicComponent />
diff --git a/test/custom-compodium-dir.test.ts b/test/custom-compodium-dir.test.ts
new file mode 100644
index 00000000..6e040e8e
--- /dev/null
+++ b/test/custom-compodium-dir.test.ts
@@ -0,0 +1,33 @@
+import { resolve } from 'pathe'
+import { describe, it, expect } from 'vitest'
+import { setup, $fetch } from '@nuxt/test-utils/e2e'
+import type { ComponentCollection } from '~/src/types'
+
+describe('custom compodium dir', async () => {
+  await setup({
+    // FIXME: TypeError: The URL must be of scheme file
+    // rootDir: fileURLToPath(new URL('./fixtures/basic', import.meta.url)),
+    rootDir: resolve('./test/fixtures/custom-compodium-dir'),
+    dev: true,
+    env: {
+      COMPODIUM_TEST: 'true'
+    }
+  })
+
+  describe('renderer', () => {
+    it('is mounted inside custom preview', async () => {
+      const html = await $fetch('/__compodium__/renderer')
+      expect(html).toContain('<div id="custom-preview">')
+    })
+  })
+
+  it('resolves examples', async () => {
+    const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
+    expect(collections.components.components.basicComponent).toEqual(expect.objectContaining({
+      pascalName: 'BasicComponentExample',
+      shortPath: 'play/examples/BasicComponentExample.vue',
+      collectionId: 'components',
+      componentId: 'basicComponent'
+    }))
+  })
+})
diff --git a/test/custom-component-dirs.test.ts b/test/custom-component-dirs.test.ts
new file mode 100644
index 00000000..f72cde85
--- /dev/null
+++ b/test/custom-component-dirs.test.ts
@@ -0,0 +1,42 @@
+import { resolve } from 'pathe'
+import { describe, it, expect } from 'vitest'
+import { setup, $fetch } from '@nuxt/test-utils/e2e'
+import type { ComponentCollection } from '~/src/types'
+
+describe('custom components dirs', async () => {
+  await setup({
+    rootDir: resolve('./test/fixtures/custom-component-dirs'),
+    dev: true,
+    env: {
+      COMPODIUM_TEST: 'true'
+    }
+  })
+
+  describe('collections api', () => {
+    it('works', async () => {
+      const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
+      expect(collections).toEqual({
+        components: expect.objectContaining({
+          name: 'Components',
+          id: 'components',
+          components: expect.objectContaining({
+            basicComponent: expect.objectContaining({ componentId: 'basicComponent', collectionId: 'components' }),
+            uButton: expect.objectContaining({ componentId: 'uButton' })
+          })
+        })
+      })
+    })
+
+    describe('collections api', () => {
+      it('resolves examples', async () => {
+        const collections = await $fetch<Record<string, ComponentCollection>>('/__compodium__/api/collections')
+        expect(collections.components.components.basicComponent).toEqual(expect.objectContaining({
+          pascalName: 'BasicComponentExample',
+          shortPath: 'compodium/examples/BasicComponentExample.vue',
+          collectionId: 'components',
+          componentId: 'basicComponent'
+        }))
+      })
+    })
+  })
+})
diff --git a/test/custom-preview.test.ts b/test/custom-preview.test.ts
deleted file mode 100644
index f17c889d..00000000
--- a/test/custom-preview.test.ts
+++ /dev/null
@@ -1,22 +0,0 @@
-import { resolve } from 'pathe'
-import { describe, it, expect } from 'vitest'
-import { setup, $fetch } from '@nuxt/test-utils/e2e'
-
-describe('custom-preview', async () => {
-  await setup({
-    // FIXME: TypeError: The URL must be of scheme file
-    // rootDir: fileURLToPath(new URL('./fixtures/basic', import.meta.url)),
-    rootDir: resolve('./test/fixtures/custom-preview'),
-    dev: true,
-    env: {
-      COMPODIUM_TEST: 'true'
-    }
-  })
-
-  describe('renderer', () => {
-    it('is mounted inside custom preview', async () => {
-      const html = await $fetch('/__compodium__/renderer')
-      expect(html).toContain('<div id="custom-preview">')
-    })
-  })
-})
diff --git a/test/fixtures/basic/compodium/components/BasicComponentExample.vue b/test/fixtures/basic/compodium/examples/BasicComponentExample.vue
similarity index 100%
rename from test/fixtures/basic/compodium/components/BasicComponentExample.vue
rename to test/fixtures/basic/compodium/examples/BasicComponentExample.vue
diff --git a/test/fixtures/basic/compodium/components/BasicComponentExampleWithSuffix.vue b/test/fixtures/basic/compodium/examples/BasicComponentExampleWithSuffix.vue
similarity index 100%
rename from test/fixtures/basic/compodium/components/BasicComponentExampleWithSuffix.vue
rename to test/fixtures/basic/compodium/examples/BasicComponentExampleWithSuffix.vue
diff --git a/test/fixtures/custom-preview/app.vue b/test/fixtures/basic/components/ExcludedComponent.vue
similarity index 54%
rename from test/fixtures/custom-preview/app.vue
rename to test/fixtures/basic/components/ExcludedComponent.vue
index 8371b274..a154d08e 100644
--- a/test/fixtures/custom-preview/app.vue
+++ b/test/fixtures/basic/components/ExcludedComponent.vue
@@ -1,3 +1,3 @@
 <template>
-  <div>basic</div>
+  <span />
 </template>
diff --git a/test/fixtures/basic/nuxt.config.ts b/test/fixtures/basic/nuxt.config.ts
index 0e4403a8..34fd721f 100644
--- a/test/fixtures/basic/nuxt.config.ts
+++ b/test/fixtures/basic/nuxt.config.ts
@@ -1,3 +1,9 @@
 export default defineNuxtConfig({
-  modules: ['../../../src/module']
+  modules: ['../../../src/module'],
+
+  compodium: {
+    exclude: [
+      'ExcludedComponent'
+    ]
+  }
 })
diff --git a/test/fixtures/basic/ui/Button.vue b/test/fixtures/basic/ui/Button.vue
new file mode 100644
index 00000000..a154d08e
--- /dev/null
+++ b/test/fixtures/basic/ui/Button.vue
@@ -0,0 +1,3 @@
+<template>
+  <span />
+</template>
diff --git a/test/fixtures/custom-compodium-dir/app.vue b/test/fixtures/custom-compodium-dir/app.vue
new file mode 100644
index 00000000..05cbdc5c
--- /dev/null
+++ b/test/fixtures/custom-compodium-dir/app.vue
@@ -0,0 +1,3 @@
+<template>
+  <div>custom dir</div>
+</template>
diff --git a/test/fixtures/custom-preview/components/TestBasic.vue b/test/fixtures/custom-compodium-dir/components/BasicComponent.vue
similarity index 100%
rename from test/fixtures/custom-preview/components/TestBasic.vue
rename to test/fixtures/custom-compodium-dir/components/BasicComponent.vue
diff --git a/test/fixtures/custom-preview/nuxt.config.ts b/test/fixtures/custom-compodium-dir/nuxt.config.ts
similarity index 71%
rename from test/fixtures/custom-preview/nuxt.config.ts
rename to test/fixtures/custom-compodium-dir/nuxt.config.ts
index 3369c959..c957d2ee 100644
--- a/test/fixtures/custom-preview/nuxt.config.ts
+++ b/test/fixtures/custom-compodium-dir/nuxt.config.ts
@@ -1,6 +1,6 @@
 export default defineNuxtConfig({
   modules: ['../../../src/module'],
   compodium: {
-    rootComponent: 'custom-root.vue'
+    dir: 'play'
   }
 })
diff --git a/test/fixtures/custom-preview/package.json b/test/fixtures/custom-compodium-dir/package.json
similarity index 100%
rename from test/fixtures/custom-preview/package.json
rename to test/fixtures/custom-compodium-dir/package.json
diff --git a/test/fixtures/custom-compodium-dir/play/examples/BasicComponentExample.vue b/test/fixtures/custom-compodium-dir/play/examples/BasicComponentExample.vue
new file mode 100644
index 00000000..a154d08e
--- /dev/null
+++ b/test/fixtures/custom-compodium-dir/play/examples/BasicComponentExample.vue
@@ -0,0 +1,3 @@
+<template>
+  <span />
+</template>
diff --git a/test/fixtures/custom-preview/compodium/preview.vue b/test/fixtures/custom-compodium-dir/play/preview.vue
similarity index 100%
rename from test/fixtures/custom-preview/compodium/preview.vue
rename to test/fixtures/custom-compodium-dir/play/preview.vue
diff --git a/test/fixtures/custom-component-dirs/app.vue b/test/fixtures/custom-component-dirs/app.vue
new file mode 100644
index 00000000..f6b91380
--- /dev/null
+++ b/test/fixtures/custom-component-dirs/app.vue
@@ -0,0 +1,3 @@
+<template>
+  <div>custom collection</div>
+</template>
diff --git a/test/fixtures/custom-component-dirs/compodium/examples/BasicComponentExample.vue b/test/fixtures/custom-component-dirs/compodium/examples/BasicComponentExample.vue
new file mode 100644
index 00000000..e69de29b
diff --git a/test/fixtures/custom-component-dirs/components/BasicComponent.vue b/test/fixtures/custom-component-dirs/components/BasicComponent.vue
new file mode 100644
index 00000000..aa064cea
--- /dev/null
+++ b/test/fixtures/custom-component-dirs/components/BasicComponent.vue
@@ -0,0 +1,7 @@
+<script setup lang="ts">
+defineProps<{ foo: string }>()
+</script>
+
+<template>
+  <span data-testid="basic"> {{ foo }} </span>
+</template>
diff --git a/test/fixtures/custom-component-dirs/my-ui/Button.vue b/test/fixtures/custom-component-dirs/my-ui/Button.vue
new file mode 100644
index 00000000..a154d08e
--- /dev/null
+++ b/test/fixtures/custom-component-dirs/my-ui/Button.vue
@@ -0,0 +1,3 @@
+<template>
+  <span />
+</template>
diff --git a/test/fixtures/custom-component-dirs/nuxt.config.ts b/test/fixtures/custom-component-dirs/nuxt.config.ts
new file mode 100644
index 00000000..499ed6f9
--- /dev/null
+++ b/test/fixtures/custom-component-dirs/nuxt.config.ts
@@ -0,0 +1,7 @@
+export default defineNuxtConfig({
+  modules: ['../../../src/module'],
+  components: [
+    { path: 'components/' },
+    { path: 'my-ui/', prefix: 'U' }
+  ]
+})
diff --git a/test/fixtures/custom-component-dirs/package.json b/test/fixtures/custom-component-dirs/package.json
new file mode 100644
index 00000000..decd4334
--- /dev/null
+++ b/test/fixtures/custom-component-dirs/package.json
@@ -0,0 +1,5 @@
+{
+  "private": true,
+  "name": "basic",
+  "type": "module"
+}