diff --git a/src/server.ts b/src/server.ts
index 539a22c..b2caf05 100644
--- a/src/server.ts
+++ b/src/server.ts
@@ -881,7 +881,7 @@ function buildGateConnectorYaml(upstreamPort: number, resourceName: string, hasP
   lines.push(
     "",
     "recording:",
-    "  dir: \".data/gate-mcp-recordings\"",
+    "  dir: \"../.data/gate-mcp-recordings\"",
     "",
     "logging:",
     "  level: \"info\"",
diff --git a/test/cli.test.ts b/test/cli.test.ts
index e48af12..728164a 100644
--- a/test/cli.test.ts
+++ b/test/cli.test.ts
@@ -42,6 +42,7 @@ test("generate command creates project files", async () => {
   assert.match(gateReadme, /Point your MCP client at Gate/);
   assert.match(gateConnector, /protocol: "mcp"/);
   assert.match(gateConnector, /path: "policies\/mcp_tool_allowlist\.rego"/);
+  assert.match(gateConnector, /dir: "\.\.\/\.data\/gate-mcp-recordings"/);
   assert.match(gatePolicy, /approved_tools/);
   assert.match(gatePolicy, /getHealth/);
   assert.match(gatePolicy, /postEcho/);
@@ -61,4 +62,5 @@ test("init command creates Gate scaffold files", async () => {
 
   assert.match(gateReadme, /Gate MCP Gateway/);
   assert.match(gateConnector, /endpoint_path: "\/mcp"/);
+  assert.match(gateConnector, /dir: "\.\.\/\.data\/gate-mcp-recordings"/);
 });