diff --git a/.gitignore b/.gitignore
index 2c34bd4..a136c70 100644
--- a/.gitignore
+++ b/.gitignore
@@ -178,7 +178,7 @@ cython_debug/
 
 # Editor runtime state — `workspace/` holds user files (auth-mode per-user
 # folders, no-auth dev's `code/`); the canonical demo source lives under
-# `src/static/bundled-demos/` and is what gets seeded into `workspace/`
+# `src/static/bundled-demos/demo/` seeds into `workspace/demos/` (and per-user `users/.../demos/`)
 # on startup. Nothing under `workspace/` should ever be committed.
 /workspace/
 src/static/.reload-token
diff --git a/LED_TUTORIAL.md b/LED_TUTORIAL.md
index 8643961..3b447a0 100644
--- a/LED_TUTORIAL.md
+++ b/LED_TUTORIAL.md
@@ -5,7 +5,7 @@ This tutorial is for the browser editor's ESP32-style mocks:
 - `machine.Pin`
 - `neopixel.NeoPixel`
 
-Open `code/led_tutorial.py` in the editor while reading this guide. (Source of truth: `src/static/bundled-demos/led_tutorial.py` — the editor's `code/` folder is seeded from there on first run.)
+Open `demos/led_tutorial.py` in the editor while reading this guide. (Source of truth: `src/static/bundled-demos/demo/led_tutorial.py` — the top-level `demos/` folder is seeded from there on first run.)
 
 ## 1) Basic setup
 
diff --git a/README.md b/README.md
index 40af383..969d74f 100644
--- a/README.md
+++ b/README.md
@@ -110,7 +110,7 @@ The browser runtime ships MicroPython-style stubs in repo `lib/` (they appear as
 - `utime` — `ticks_ms`, `ticks_diff`, `ticks_add`, `sleep_ms`, `sleep_us`, `sleep`
 - `micropython.const` — no-op helper for ported constant declarations
 
-Use them from scripts in `code/` (your editor workspace, populated on first run from `src/static/bundled-demos/`) like typical ESP32 / MicroPython examples:
+Use them from the top-level `demos/` folder (sibling of `code/` and `lib/`; first run seeds from `src/static/bundled-demos/demo/`) like typical ESP32 / MicroPython examples:
 
 ```python
 from machine import Pin
@@ -132,7 +132,7 @@ Simulator modes:
   - rows zig-zag left/right.
 - The 16x16 popup closes automatically on **Stop** or when script execution finishes.
 
-Tutorial files (canonical source — committed under `src/static/bundled-demos/`; copies appear in your editor's `code/` folder on first run):
+Tutorial files (canonical source — committed under `src/static/bundled-demos/demo/`; copies appear under top-level `demos/` on first run):
 
 - `LED_TUTORIAL.md` - step-by-step NeoPixel tutorial
 - `led_tutorial.py` - runnable guided LED example
@@ -145,7 +145,7 @@ Tutorial files (canonical source — committed under `src/static/bundled-demos/`
 - `panel16_bounce.py` - 16x16 bouncing pixel with trail
 - `panel16_matrix_rain.py` - 16x16 matrix rain effect
 
-> `workspace/` is gitignored runtime state. To edit the **shipped** demo source, edit `src/static/bundled-demos/<file>.py` and re-run "Reset demos" in the editor (or restart the dev server with an empty `workspace/code/`).
+> `workspace/` is gitignored runtime state. To edit the **shipped** demo source, edit `src/static/bundled-demos/demo/<file>.py` and re-run "Reset demos" in the editor (or restart the dev server with an empty `workspace/demos/`).
 
 ## Dev auto-reload hook
 
diff --git a/src/editor_app/config.py b/src/editor_app/config.py
index 3584b95..e51491f 100644
--- a/src/editor_app/config.py
+++ b/src/editor_app/config.py
@@ -29,9 +29,10 @@ load_env_file(PROJECT_ROOT / ".env")
 _default_workspace = PROJECT_ROOT / "workspace"
 WORKSPACE_ROOT = Path(os.environ.get("WORKSPACE_ROOT", str(_default_workspace))).resolve()
 
-# Canonical demo source. Files here are the single source of truth for the
-# editor's "Reset demos" button and per-user account seeding. They ship with
-# the static bundle (`/static/bundled-demos/...`) so a static-only host
-# also exposes them. `workspace/` is intentionally NOT used for canonical
-# data — it is treated as runtime/user state and is gitignored.
+# Canonical demo bundle root (`manifest.json` lives here). Sample `.py`
+# sources live under `demo/` (same idea as `bundled-lib/` for shared modules).
+# They ship with the static bundle (`/static/bundled-demos/...`) so a
+# static-only host also exposes them. `workspace/` is intentionally NOT used
+# for canonical data — it is treated as runtime/user state and is gitignored.
 BUNDLED_DEMOS_DIR = STATIC_DIR / "bundled-demos"
+BUNDLED_DEMOS_CODE_DIR = BUNDLED_DEMOS_DIR / "demo"
diff --git a/src/editor_app/main.py b/src/editor_app/main.py
index 065ce88..7422187 100644
--- a/src/editor_app/main.py
+++ b/src/editor_app/main.py
@@ -20,10 +20,10 @@ from editor_app.services import accounts, user_workspace
 @asynccontextmanager
 async def lifespan(_app: FastAPI):
     # `workspace/` is gitignored runtime state. On a fresh clone it doesn't
-    # exist, and in no-auth dev mode the file tree's `code/` would otherwise
-    # be empty — seed every bundled demo so `pipenv run dev` after `git
-    # clone` Just Works without needing user accounts. Files already in
-    # `code/` are left alone (user edits are preserved across restarts).
+    # exist, and in no-auth dev mode the file tree would otherwise be empty
+    # — seed every bundled demo under top-level `demos/` (next to `code/`)
+    # so `pipenv run dev` after `git clone` Just Works without needing user
+    # accounts. Existing files are left alone (user edits are preserved).
     WORKSPACE_ROOT.mkdir(parents=True, exist_ok=True)
     user_workspace.seed_all_bundled_demos(WORKSPACE_ROOT)
 
diff --git a/src/editor_app/services/filesystem.py b/src/editor_app/services/filesystem.py
index d7bd40c..e53723e 100644
--- a/src/editor_app/services/filesystem.py
+++ b/src/editor_app/services/filesystem.py
@@ -7,7 +7,7 @@ from editor_app import config
 from editor_app.models import FileInfo
 
 LIB_DIR_NAME = "lib"
-WRITABLE_ROOTS = {"code"}
+WRITABLE_ROOTS = {"code", "demos"}
 
 
 def _workspace_root(workspace_root: Path | None = None) -> Path:
@@ -33,6 +33,9 @@ def normalize_relative_path(relative_path: str) -> str:
     if len(parts) >= 2 and parts[0] == "code":
         while len(parts) >= 2 and parts[0] == parts[1] == "code":
             parts.pop(1)
+    if len(parts) >= 2 and parts[0] == "demos":
+        while len(parts) >= 2 and parts[0] == parts[1] == "demos":
+            parts.pop(1)
     return "/".join(parts)
 
 
@@ -84,7 +87,7 @@ def _ensure_writable_path(target_path: Path, workspace_root: Path | None = None)
     if not _is_writable_path(target_path, workspace_root):
         raise HTTPException(
             status_code=403,
-            detail="Only code/ is writable (lib is read-only)",
+            detail="Only code/ and demos/ are writable (lib is read-only)",
         )
 
 
diff --git a/src/editor_app/services/user_workspace.py b/src/editor_app/services/user_workspace.py
index 9e459f9..0982757 100644
--- a/src/editor_app/services/user_workspace.py
+++ b/src/editor_app/services/user_workspace.py
@@ -6,13 +6,14 @@ from pathlib import Path
 
 from editor_app import config
 
+_BUNDLED_DEMO_PY_DIR = config.BUNDLED_DEMOS_CODE_DIR
+# Top-level workspace folder for shipped samples (sibling of ``code/``, like ``lib/``).
+_EDITOR_DEMOS_ROOT = "demos"
+
 DEFAULT_MAIN_PY = 'print("Hello, World!")\n'
 
-# Self-contained demos copied from shipped `workspace/code/` (stdlib + machine/neopixel/time only).
-# New accounts get a copy of each one in their own `code/` folder so the
-# editor has something to show on first login. They're treated as
-# starting points — users can edit/delete freely without affecting the
-# shipped originals.
+# Self-contained demos copied from static ``bundled-demos/demo/`` (stdlib + machine/neopixel/time only).
+# New accounts get a copy under ``<user_root>/demos/`` (same level as ``code/``).
 _CANONICAL_DEMO_FILENAMES = (
     "pattern_rainbow_demo.py",
     "pattern_twinkle_demo.py",
@@ -20,6 +21,8 @@ _CANONICAL_DEMO_FILENAMES = (
     "adc_slider_demo.py",
     "pin_demo.py",
     "serial_demo.py",
+    "async_fetch_demo.py",
+    "aiohttp_fetch_demo.py",
 )
 
 
@@ -33,17 +36,22 @@ def user_workspace_root(user_id: int, username: str, workspace_root: Path | None
     return root / "users" / safe_workspace_leaf(username, user_id)
 
 
-def _seed_canonical_demos_into_code(code_dir: Path) -> None:
-    """Copy bundled demos into a user's `code/` if missing.
+def _seed_canonical_demos(user_root: Path) -> None:
+    """Copy bundled demos into ``demos/`` if missing.
 
-    Reads from `BUNDLED_DEMOS_DIR` (single source of truth, ships under
-    `src/static/bundled-demos/`), never from `workspace/`, so this works
-    even when `workspace/` is empty (gitignored runtime directory).
+    Reads from `BUNDLED_DEMOS_CODE_DIR` (``src/static/bundled-demos/demo/``).
+    Skips if the file already exists under ``demos/``, legacy ``code/<name>.py``,
+    or old ``code/demos/<name>.py``.
     """
-    src_root = config.BUNDLED_DEMOS_DIR.resolve()
+    src_root = _BUNDLED_DEMO_PY_DIR.resolve()
+    demos_dir = user_root / _EDITOR_DEMOS_ROOT
+    code_dir = user_root / "code"
+    demos_dir.mkdir(parents=True, exist_ok=True)
     for filename in _CANONICAL_DEMO_FILENAMES:
-        dst = code_dir / filename
-        if dst.exists():
+        dst = demos_dir / filename
+        legacy_flat = code_dir / filename
+        legacy_nested = code_dir / "demos" / filename
+        if dst.exists() or legacy_flat.exists() or legacy_nested.exists():
             continue
         src = src_root / filename
         if src.is_file():
@@ -51,9 +59,9 @@ def _seed_canonical_demos_into_code(code_dir: Path) -> None:
 
 
 def ensure_default_code_main(user_root: Path) -> None:
-    """Ensure code/ has main.py and the canonical NeoPixel demos.
+    """Ensure ``code/main.py`` and canonical demos under top-level ``demos/``.
 
-    Demos are sourced from `BUNDLED_DEMOS_DIR` (the single committed home
+    Demos are sourced from `BUNDLED_DEMOS_CODE_DIR` (the single committed home
     for sample scripts). Only files listed in `_CANONICAL_DEMO_FILENAMES`
     get auto-seeded — the rest are available via the editor's "Reset
     demos" button or a manual copy."""
@@ -62,30 +70,34 @@ def ensure_default_code_main(user_root: Path) -> None:
     main_py = code_dir / "main.py"
     if not main_py.exists():
         main_py.write_text(DEFAULT_MAIN_PY, encoding="utf-8")
-    _seed_canonical_demos_into_code(code_dir)
+    _seed_canonical_demos(user_root)
 
 
 def seed_all_bundled_demos(user_root: Path) -> None:
-    """Copy *every* file in `BUNDLED_DEMOS_DIR` into `<user_root>/code/`.
+    """Copy *every* ``.py`` file in `BUNDLED_DEMOS_CODE_DIR` into ``<user_root>/demos/``.
 
-    Used at app startup to populate a fresh `workspace/code/` with the
-    full sample set so a no-auth dev install (`pipenv run dev` after
-    `git clone`) has something to play with. Existing files are not
-    overwritten — user edits are preserved.
+    Used at app startup to populate a fresh workspace with the full sample
+    set so a no-auth dev install (`pipenv run dev` after `git clone`) has
+    something to play with. Existing files are not overwritten — user edits
+    are preserved.
     """
     code_dir = user_root / "code"
     code_dir.mkdir(parents=True, exist_ok=True)
     main_py = code_dir / "main.py"
     if not main_py.exists():
         main_py.write_text(DEFAULT_MAIN_PY, encoding="utf-8")
-    src_root = config.BUNDLED_DEMOS_DIR.resolve()
+    demos_dir = user_root / _EDITOR_DEMOS_ROOT
+    demos_dir.mkdir(parents=True, exist_ok=True)
+    src_root = _BUNDLED_DEMO_PY_DIR.resolve()
     if not src_root.is_dir():
         return
     for src in sorted(src_root.iterdir()):
         if not src.is_file() or not src.name.endswith(".py"):
             continue
-        dst = code_dir / src.name
-        if dst.exists():
+        dst = demos_dir / src.name
+        legacy_flat = code_dir / src.name
+        legacy_nested = code_dir / "demos" / src.name
+        if dst.exists() or legacy_flat.exists() or legacy_nested.exists():
             continue
         try:
             dst.write_text(src.read_text(encoding="utf-8"), encoding="utf-8")
diff --git a/tests/test_auth.py b/tests/test_auth.py
index 2b10740..4f87d70 100644
--- a/tests/test_auth.py
+++ b/tests/test_auth.py
@@ -92,14 +92,16 @@ def test_new_user_workspace_has_default_main_py(tmp_path, monkeypatch):
         assert reg.status_code == 200
         assert reg.json()["username"] == "alice"
         uid = reg.json()["id"]
-        code_root = tmp_path / "users" / f"alice-{uid}" / "code"
+        user_root = tmp_path / "users" / f"alice-{uid}"
+        code_root = user_root / "code"
+        demos_dir = user_root / "demos"
         on_disk = code_root / "main.py"
         assert on_disk.is_file()
         assert on_disk.read_text(encoding="utf-8") == 'print("Hello, World!")\n'
         canonical = ("pattern_rainbow_demo.py", "pattern_twinkle_demo.py", "pattern_chase_demo.py")
         for fname in canonical:
-            cp = code_root / fname
-            assert cp.is_file(), f"missing bundled copy {fname} (workspace/code must ship with app)"
+            cp = demos_dir / fname
+            assert cp.is_file(), f"missing bundled copy demos/{fname} (workspace must ship with app)"
             text = cp.read_text(encoding="utf-8")
             assert len(text.strip()) > 20
             assert "from led_patterns" not in text
@@ -110,7 +112,7 @@ def test_new_user_workspace_has_default_main_py(tmp_path, monkeypatch):
         assert fetched.status_code == 200
         assert fetched.json()["filename"] == "main.py"
         assert 'Hello, World!' in fetched.json()["content"]
-        chase = client.get("/api/file/code/pattern_chase_demo.py")
+        chase = client.get("/api/file/demos/pattern_chase_demo.py")
         assert chase.status_code == 200
         assert "knight_rider_scanner_frame" in chase.json()["content"]
 
@@ -311,14 +313,6 @@ def test_lib_is_shared_read_only_across_users(tmp_path, monkeypatch):
     shared_lib = tmp_path / "lib"
     shared_lib.mkdir(parents=True, exist_ok=True)
     (shared_lib / "shared.py").write_text("VALUE = 42\n", encoding="utf-8")
-    # Mirror canonical demo files so `_seed_canonical_demos_into_code` still works.
-    real_demos = config.PROJECT_ROOT / "workspace" / "code"
-    fake_demos = tmp_path / "workspace" / "code"
-    fake_demos.mkdir(parents=True, exist_ok=True)
-    for fname in ("pattern_rainbow_demo.py", "pattern_twinkle_demo.py", "pattern_chase_demo.py"):
-        src = real_demos / fname
-        if src.is_file():
-            (fake_demos / fname).write_text(src.read_text(encoding="utf-8"), encoding="utf-8")
 
     monkeypatch.setattr(config, "PROJECT_ROOT", tmp_path)
 
diff --git a/tests/test_led_patterns.py b/tests/test_led_patterns.py
index f3f0624..fb99691 100644
--- a/tests/test_led_patterns.py
+++ b/tests/test_led_patterns.py
@@ -5,7 +5,7 @@ from pathlib import Path
 def _load_patterns_module():
     repo_root = Path(__file__).resolve().parents[1]
     # Canonical home for shipped demos — `workspace/` is gitignored.
-    module_path = repo_root / "src" / "static" / "bundled-demos" / "led_patterns.py"
+    module_path = repo_root / "src" / "static" / "bundled-demos" / "demo" / "led_patterns.py"
     spec = importlib.util.spec_from_file_location("led_patterns", module_path)
     module = importlib.util.module_from_spec(spec)
     assert spec is not None and spec.loader is not None