diff --git a/fastapi_vue_setup.py b/fastapi_vue_setup.py
index 833c386..43d9545 100644
--- a/fastapi_vue_setup.py
+++ b/fastapi_vue_setup.py
@@ -1347,13 +1347,15 @@ def cmd_setup(args: argparse.Namespace) -> int:
         app_file, app_var = app_info
         print(f"📍 Found FastAPI app: {app_var} in {app_file.name}")
         tpl_vars["APP_VAR"] = app_var
-        tpl_vars["APP_MODULE"] = app_file.stem
+        # Dotted module path relative to project dir (e.g. "paskia.fastapi.mainapp")
+        app_module = ".".join(app_file.relative_to(project_dir).with_suffix("").parts)
+        tpl_vars["APP_MODULE"] = app_module
     else:
         print("📍 No existing FastAPI app found, will create new one")
         app_file = None
         app_var = "app"
         tpl_vars["APP_VAR"] = app_var
-        tpl_vars["APP_MODULE"] = "app"
+        tpl_vars["APP_MODULE"] = f"{module_name}.app"
 
     # Create directories
     if not dry:
diff --git a/template/backend/__main__.py b/template/backend/__main__.py
index 8b4cc2d..34e26eb 100644
--- a/template/backend/__main__.py
+++ b/template/backend/__main__.py
@@ -17,12 +17,12 @@ def main():
         help=(f"Endpoint (default: localhost:{DEFAULT_PORT})."),
     )
     args = parser.parse_args()
-    dev = {"reload": True, "reload_dirs": ["MODULE_NAME"]}
+    dev = {"reload": True, "reload_dirs": ["paskia"]} if DEVMODE else {}
     server.run(
-        "MODULE_NAME.APP_MODULE:APP_VAR",
+        "APP_MODULE:APP_VAR",
         listen=args.listen,
         default_port=DEFAULT_PORT,
-        **(dev if DEVMODE else {}),
+        **dev,
     )