For larger apps, grouping by feature is better. A feature folder contains its components, hooks, styles, and tests together, making the feature easier to understand and move than files scattered by type.

Keep configuration files like package.json, bundler config, .env, and .gitignore at the project root. Keep your source code inside a src folder so configuration and code stay clearly separated.

Co-locate CSS files with their components so you can find and remove them easily. Avoid a single giant styles folder for the whole app. If you use Tailwind, most styles live inline with the components.