diff --git a/.changeset/fix-repack-init-npm-flow.md b/.changeset/fix-repack-init-npm-flow.md
new file mode 100644
index 000000000..1055b2119
--- /dev/null
+++ b/.changeset/fix-repack-init-npm-flow.md
@@ -0,0 +1,5 @@
+---
+"@callstack/repack-init": patch
+---
+
+Fix npm-based project creation by using `npm exec ... -- rnc-cli` instead of a nested `npx` invocation, and pass a fully qualified React Native patch version to the React Native CLI.
diff --git a/packages/init/src/tasks/createNewProject.ts b/packages/init/src/tasks/createNewProject.ts
index a70e6bc33..d89a42bdc 100644
--- a/packages/init/src/tasks/createNewProject.ts
+++ b/packages/init/src/tasks/createNewProject.ts
@@ -5,6 +5,37 @@ import type { PackageManager } from '../types/pm.js';
 import { RepackInitError } from '../utils/error.js';
 import spinner from '../utils/spinner.js';
 
+function getCreateCommand(packageManager: PackageManager) {
+  if (packageManager.name === 'npm') {
+    // Use `npm exec` with the package's explicit bin name. Nested `npx`
+    // invocations can fail when repack-init itself is launched through `npx`.
+    return {
+      command: packageManager.runCommand,
+      args: [
+        'exec',
+        '--yes',
+        '--package',
+        '@react-native-community/cli@latest',
+        '--',
+        'rnc-cli',
+      ],
+      shell: false,
+    };
+  }
+
+  return {
+    command: packageManager.dlxCommand,
+    args: ['@react-native-community/cli@latest'],
+    shell: true,
+  };
+}
+
+function getReactNativeVersion() {
+  const version = versionsJson['react-native'];
+
+  return /^\d+\.\d+$/.test(version) ? `${version}.0` : version;
+}
+
 export default async function createNewProject(
   cwd: string,
   projectName: string,
@@ -12,14 +43,15 @@ export default async function createNewProject(
   override: boolean
 ) {
   try {
+    const createCommand = getCreateCommand(packageManager);
     const args = [
-      '@react-native-community/cli@latest',
+      ...createCommand.args,
       'init',
       projectName,
       '--directory',
       path.join(cwd, projectName),
       '--version',
-      versionsJson['react-native'],
+      getReactNativeVersion(),
       '--skip-install',
       '--skip-git-init',
     ];
@@ -32,9 +64,9 @@ export default async function createNewProject(
       'Creating new project from the React Native Community Template'
     );
 
-    return await execa(packageManager.dlxCommand, args, {
+    return await execa(createCommand.command, args, {
       stdio: 'ignore',
-      shell: true,
+      shell: createCommand.shell,
     });
   } catch {
     throw new RepackInitError(
diff --git a/packages/init/tsconfig.build.json b/packages/init/tsconfig.build.json
new file mode 100644
index 000000000..e63fac8ca
--- /dev/null
+++ b/packages/init/tsconfig.build.json
@@ -0,0 +1,8 @@
+{
+  "extends": "./tsconfig.json",
+  "compilerOptions": {
+    "rootDir": "src",
+    "outDir": "dist"
+  },
+  "include": ["src/**/*.ts"]
+}
diff --git a/packages/init/tsconfig.json b/packages/init/tsconfig.json
index df59da578..9e25e6ece 100644
--- a/packages/init/tsconfig.json
+++ b/packages/init/tsconfig.json
@@ -1,8 +1,4 @@
 {
   "extends": "../../tsconfig.base.json",
-  "compilerOptions": {
-    "rootDir": "src",
-    "outDir": "dist"
-  },
   "include": ["src/**/*.ts"]
 }