diff --git a/.gitignore b/.gitignore
index 66d62f8..b8696cf 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1 +1,45 @@
+# Build artifacts
+build/
+*.o
+*.exe
+shell
+shell.exe
+
+# System files
+.DS_Store
+Thumbs.db
+
+# IDE/Editor files
+.vscode/
+.idea/
+*.swp
+*.swo
+*~
+.vim/
+
+# Temporary files
+*.tmp
+*.temp
+*.log
+
+# Claude Code local settings
 **/.claude/settings.local.json
+
+# Core dumps and debugging
+core
+*.core
+vgcore.*
+
+# Static analysis
+*.gcov
+*.gcda
+*.gcno
+
+# Archives
+*.tar.gz
+*.zip
+*.tar.bz2
+
+# Personal files
+notes.txt
+todo.txt
diff --git a/Makefile b/Makefile
index 48ad965..7344348 100644
--- a/Makefile
+++ b/Makefile
@@ -1,22 +1,30 @@
 CC = gcc
-CFLAGS = -Wextra -g
+CFLAGS = -Wextra -g -Iinclude
 LIBS = -lm -lncurses
 
-# Get all .c files
-SOURCES = $(wildcard *.c)
-# Generate object file names from source file names
-OBJECTS = $(SOURCES:.c=.o)
+# Directories
+SRC_DIR = src
+INC_DIR = include
+BUILD_DIR = build
+
+# Get all .c files from src directory
+SOURCES = $(wildcard $(SRC_DIR)/*.c)
+# Generate object file names in build directory
+OBJECTS = $(SOURCES:$(SRC_DIR)/%.c=$(BUILD_DIR)/%.o)
 TARGET = shell
 
-all: $(TARGET)
+all: $(BUILD_DIR) $(TARGET)
+
+$(BUILD_DIR):
+	mkdir -p $(BUILD_DIR)
 
 $(TARGET): $(OBJECTS)
 	$(CC) $(CFLAGS) -o $@ $^ $(LIBS)
 
-%.o: %.c
+$(BUILD_DIR)/%.o: $(SRC_DIR)/%.c
 	$(CC) $(CFLAGS) -c $< -o $@
 
 clean:
-	rm -f $(OBJECTS) $(TARGET)
+	rm -rf $(BUILD_DIR) $(TARGET)
 
 .PHONY: all clean
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