diff --git a/.changeset/gold-beans-kiss.md b/.changeset/gold-beans-kiss.md
new file mode 100644
index 0000000000..1988a2d824
--- /dev/null
+++ b/.changeset/gold-beans-kiss.md
@@ -0,0 +1,5 @@
+---
+"create-t3-app": patch
+---
+
+fix: cli cancel not working
diff --git a/cli/src/helpers/scaffoldProject.ts b/cli/src/helpers/scaffoldProject.ts
index d4e6730798..f258ddd76d 100644
--- a/cli/src/helpers/scaffoldProject.ts
+++ b/cli/src/helpers/scaffoldProject.ts
@@ -53,22 +53,22 @@ export const scaffoldProject = async ({
         ],
         initialValue: "abort",
       });
-      if (overwriteDir === "abort") {
+
+      if (p.isCancel(overwriteDir) || overwriteDir === "abort") {
         spinner.fail("Aborting installation...");
         process.exit(1);
       }
 
-      const overwriteAction =
-        overwriteDir === "clear"
-          ? "clear the directory"
-          : "overwrite conflicting files";
-
       const confirmOverwriteDir = await p.confirm({
-        message: `Are you sure you want to ${overwriteAction}?`,
+        message: `Are you sure you want to ${
+          overwriteDir === "clear"
+            ? "clear the directory"
+            : "overwrite conflicting files"
+        }?`,
         initialValue: false,
       });
 
-      if (!confirmOverwriteDir) {
+      if (p.isCancel(confirmOverwriteDir) || !confirmOverwriteDir) {
         spinner.fail("Aborting installation...");
         process.exit(1);
       }