diff --git a/skills/baoyu-article-illustrator/SKILL.md b/skills/baoyu-article-illustrator/SKILL.md
index 80fa001..2ad52b9 100644
--- a/skills/baoyu-article-illustrator/SKILL.md
+++ b/skills/baoyu-article-illustrator/SKILL.md
@@ -133,7 +133,7 @@ Full procedures: [references/workflow.md](references/workflow.md#step-5-generate
 
 ### Step 6: Finalize
 
-Insert `![description](path/NN-{type}-{slug}.png)` after paragraphs.
+Insert `![description]({relative-path}/NN-{type}-{slug}.png)` after paragraphs. Path computed relative to article file based on output directory setting.
 
 ```
 Article Illustration Complete!
@@ -143,15 +143,27 @@ Images: X/N generated
 
 ## Output Directory
 
+Output directory is determined by `default_output_dir` in EXTEND.md (set during first-time setup):
+
+| `default_output_dir` | Output Path | Markdown Insert Path |
+|----------------------|-------------|----------------------|
+| `imgs-subdir` (default) | `{article-dir}/imgs/` | `imgs/NN-{type}-{slug}.png` |
+| `same-dir` | `{article-dir}/` | `NN-{type}-{slug}.png` |
+| `illustrations-subdir` | `{article-dir}/illustrations/` | `illustrations/NN-{type}-{slug}.png` |
+| `independent` | `illustrations/{topic-slug}/` | `illustrations/{topic-slug}/NN-{type}-{slug}.png` (relative to cwd) |
+
+All auxiliary files (outline, prompts) are saved inside the output directory:
+
 ```
-illustrations/{topic-slug}/
-├── source-{slug}.{ext}
-├── references/           # if provided
+{output-dir}/
 ├── outline.md
 ├── prompts/
+│   └── NN-{type}-{slug}.md
 └── NN-{type}-{slug}.png
 ```
 
+When input is **pasted content** (no file path), always uses `illustrations/{topic-slug}/` with `source-{slug}.{ext}` saved alongside.
+
 **Slug**: 2-4 words, kebab-case. **Conflict**: append `-YYYYMMDD-HHMMSS`.
 
 ## Modification
diff --git a/skills/baoyu-article-illustrator/references/config/first-time-setup.md b/skills/baoyu-article-illustrator/references/config/first-time-setup.md
index e8ece88..bc2d79c 100644
--- a/skills/baoyu-article-illustrator/references/config/first-time-setup.md
+++ b/skills/baoyu-article-illustrator/references/config/first-time-setup.md
@@ -69,7 +69,23 @@ options:
     description: "Friendly, approachable, personal"
 ```
 
-### Question 3: Save Location
+### Question 3: Output Directory
+
+```
+header: "Output Directory"
+question: "Where to save generated illustrations when illustrating a file?"
+options:
+  - label: "imgs-subdir (Recommended)"
+    description: "{article-dir}/imgs/ — images in a subdirectory next to the article"
+  - label: "same-dir"
+    description: "{article-dir}/ — images alongside the article file"
+  - label: "illustrations-subdir"
+    description: "{article-dir}/illustrations/ — separate illustrations subdirectory"
+  - label: "independent"
+    description: "illustrations/{topic-slug}/ — standalone directory in cwd"
+```
+
+### Question 4: Save Location
 
 ```
 header: "Save"
@@ -108,6 +124,7 @@ watermark:
 preferred_style:
   name: [selected style or null]
   description: ""
+default_output_dir: imgs-subdir  # same-dir | imgs-subdir | illustrations-subdir | independent
 language: null
 custom_styles: []
 ---
diff --git a/skills/baoyu-article-illustrator/references/workflow.md b/skills/baoyu-article-illustrator/references/workflow.md
index c7bfc99..deaa498 100644
--- a/skills/baoyu-article-illustrator/references/workflow.md
+++ b/skills/baoyu-article-illustrator/references/workflow.md
@@ -55,7 +55,7 @@ Reference Style Extracted (no file):
 
 | Input | Output Directory | Next |
 |-------|------------------|------|
-| File path | Ask user (1.2) | → 1.2 |
+| File path | EXTEND.md `default_output_dir` (default: `imgs-subdir`). If not configured, confirm in 1.2. | → 1.2 |
 | Pasted content | `illustrations/{topic-slug}/` | → 1.4 |
 
 **Backup rule for pasted content**: If `source.md` exists in target directory, rename to `source-backup-YYYYMMDD-HHMMSS.md` before saving.
@@ -68,7 +68,7 @@ Check preferences and existing state, then ask ALL needed questions in ONE AskUs
 
 | Question | When to Ask | Options |
 |----------|-------------|---------|
-| Output directory | No `default_output_dir` in EXTEND.md | `{article-dir}/`, `{article-dir}/imgs/` (Recommended), `{article-dir}/illustrations/`, `illustrations/{topic-slug}/` |
+| Output directory | No `default_output_dir` in EXTEND.md | `{article-dir}/imgs/` (Recommended), `{article-dir}/`, `{article-dir}/illustrations/`, `illustrations/{topic-slug}/` |
 | Existing images | Target dir has `.png/.jpg/.webp` files | `supplement`, `overwrite`, `regenerate` |
 | Article update | Always (file path input) | `update`, `copy` |
 
@@ -237,7 +237,7 @@ Reference Images:
 
 ## Step 4: Generate Outline
 
-Save as `outline.md`:
+Save as `{output-dir}/outline.md` (all paths below are relative to the output directory determined in Step 1.1/1.2):
 
 ```yaml
 ---
@@ -285,7 +285,7 @@ references:                    # Only if references provided
 
 For each illustration in the outline:
 
-1. **Create prompt file**: `prompts/NN-{type}-{slug}.md`
+1. **Create prompt file**: `{output-dir}/prompts/NN-{type}-{slug}.md`
 2. **Include YAML frontmatter**:
    ```yaml
    ---
@@ -381,10 +381,14 @@ Add: `Include a subtle watermark "[content]" at [position].`
 
 ### 6.1 Update Article
 
-Insert after corresponding paragraph:
-```markdown
-![description](illustrations/{slug}/NN-{type}-{slug}.png)
-```
+Insert after corresponding paragraph, using path relative to article file:
+
+| `default_output_dir` | Insert Path |
+|----------------------|-------------|
+| `imgs-subdir` | `![description](imgs/NN-{type}-{slug}.png)` |
+| `same-dir` | `![description](NN-{type}-{slug}.png)` |
+| `illustrations-subdir` | `![description](illustrations/NN-{type}-{slug}.png)` |
+| `independent` | `![description](illustrations/{topic-slug}/NN-{type}-{slug}.png)` (relative to cwd) |
 
 Alt text: concise description in article's language.