diff --git a/.all-contributorsrc b/.all-contributorsrc
index edd5028..6cf9c51 100644
--- a/.all-contributorsrc
+++ b/.all-contributorsrc
@@ -136,7 +136,7 @@
       "login": "LuisHenri",
       "name": "Luís Henrique A. Schünemann",
       "avatar_url": "https://avatars.githubusercontent.com/u/44511825?v=4",
-      "profile": "https://www.instagram.com/LuisHenri_",
+      "profile": "https://github.com/LuisHenri",
       "contributions": [
         "ideas"
       ]
diff --git a/README.md b/README.md
index 9688dd9..667a96e 100644
--- a/README.md
+++ b/README.md
@@ -112,6 +112,8 @@ jobs:
 
 Create a `.templatesyncignore` file. Just like writing a `.gitignore` file, follow the [glob pattern](https://en.wikipedia.org/wiki/Glob_(programming)) in defining the files and folders that should be excluded from syncing with the template repository.
 
+It can also be stored inside `.github` folder.
+
 _Note: It is not possible to sync also the `.templatesyncignore` itself. Any changes from the template repository will be restored automatically._
 
 ## Debug
diff --git a/docs/ARCHITECTURE.md b/docs/ARCHITECTURE.md
index 7db2f18..f25c1f2 100644
--- a/docs/ARCHITECTURE.md
+++ b/docs/ARCHITECTURE.md
@@ -6,7 +6,7 @@ within this section you will find some
 
 ## Code
 
-The architecture and logic within the code
+The architecture and logic within the code:
 
 ```mermaid
 flowchart TD
@@ -17,26 +17,26 @@ GitHubActionEnv{Read GitHubAction env}
 style Start fill:#f9f,stroke:#333,stroke-width:4px
 style Exit fill:#bbf,stroke:#f66,stroke-width:2px,color:#fff,stroke-dasharray: 5 5
 
-EnvCheckEntry{required environment variables exists}
+EnvCheckEntry{Required environment variables exists}
 SshCheckEntry{SSH private key defined}
 SshConfigureEntry[Configure ssh related variables]
 GitConfigureEntry[Configure git global settings]
 
-EnvCheckSync{required environment variables exists}
+EnvCheckSync{Required environment variables exists}
 SshConfigureSync[Configure SSH variables]
 SetVariablesSync[Set the needed variables, e.q. with reading remote repository]
-CheckTemplateFileExists{"Check if the .templatesyncrc file exists in repository"}
+CheckTemplateFileExists{"Check if the .templatesyncrc file exists\n(First inside .github folder, then in root)"}
 WriteTemplateVersionSync["Read and write the template sync version into variable"]
 CompareTemplateVersionSync{"Compare the source repository version"}
-GitCheckoutSync["create git branch <branch_prefix_git_hash>"]
-GitPullSync["pull from remote repository"]
-CheckIgnoreFileExistsSync{"check if .templatesyncignore file exists"}
+GitCheckoutSync["Create git branch <branch_prefix_git_hash>"]
+GitPullSync["Pull from remote repository"]
+CheckIgnoreFileExistsSync{"Check if .templatesyncignore file exists\n(First inside .github folder, then in root)"}
 ResetChangesSync["Reset the changes listed within the ignore file"]
-GitCommitSync["commit the changes"]
+GitCommitSync["Commit the changes"]
 
-CheckIsDryRun{"check if is_dry_run is set to true"}
+CheckIsDryRun{"Check if is_dry_run is set to true"}
 GitPushSync["Push the changes to GitHub"]
-GitPullRequestSync["create a pull request on GitHub"]
+GitPullRequestSync["Create a pull request on GitHub"]
 
 subgraph githubactions["GitHubActions"]
 
@@ -66,15 +66,15 @@ EnvCheckSync -->|do not exist| Exit
 EnvCheckSync -->|do exist| SshConfigureSync
 SshConfigureSync --> SetVariablesSync
 
-subgraph compareVersion["compare the sync version"]
+subgraph compareVersion["Compare the sync version"]
 SetVariablesSync --> CheckTemplateFileExists
 CheckTemplateFileExists -->|exists| WriteTemplateVersionSync
-CheckTemplateFileExists -->|does not exist|CompareTemplateVersionSync
+CheckTemplateFileExists -->|does not exist| CompareTemplateVersionSync
 WriteTemplateVersionSync --> CompareTemplateVersionSync
 CompareTemplateVersionSync -->|equal versions| Exit
 end
 
-subgraph git["Git actions"]
+subgraph git["Git Actions"]
 CompareTemplateVersionSync -->|versions not equal| GitCheckoutSync
 GitCheckoutSync --> GitPullSync
 GitPullSync --> CheckIgnoreFileExistsSync
@@ -83,7 +83,7 @@ CheckIgnoreFileExistsSync -->|exists| ResetChangesSync
 ResetChangesSync --> GitCommitSync
 end
 
-subgraph github["gitHub actions"]
+subgraph github["GitHub Actions"]
 GitCommitSync --> CheckIsDryRun
 CheckIsDryRun -->|is true| Exit
 CheckIsDryRun -->|is not true| GitPushSync
diff --git a/src/sync_template.sh b/src/sync_template.sh
index b750d23..915966a 100755
--- a/src/sync_template.sh
+++ b/src/sync_template.sh
@@ -28,22 +28,26 @@ if [[ -n "${SRC_SSH_PRIVATEKEY_ABS_PATH}" ]]; then
   export GIT_SSH_COMMAND="ssh -i ${SRC_SSH_PRIVATEKEY_ABS_PATH}"
 fi
 
-TEMPLATE_VERSION_FILE_NAME=".templateversionrc"
-TEMPLATE_SYNC_IGNORE_FILE_NAME=".templatesyncignore"
+TEMPLATE_VERSION_FILE_PATH=".templateversionrc"
+TEMPLATE_SYNC_IGNORE_FILE_PATH=".templatesyncignore"
 TEMPLATE_REMOTE_GIT_HASH=$(git ls-remote "${SOURCE_REPO}" HEAD | awk '{print $1}')
 NEW_TEMPLATE_GIT_HASH=$(git rev-parse --short "${TEMPLATE_REMOTE_GIT_HASH}")
 NEW_BRANCH="${PR_BRANCH_NAME_PREFIX}_${NEW_TEMPLATE_GIT_HASH}"
 
 echo "::group::Check new changes"
 echo "::debug::new Git HASH ${NEW_TEMPLATE_GIT_HASH}"
-if [ -r ${TEMPLATE_VERSION_FILE_NAME} ]
-then
-  CURRENT_TEMPLATE_GIT_HASH=$(cat ${TEMPLATE_VERSION_FILE_NAME})
+
+# Check if the Version File exists inside .github folder or if it doesn't exist at all
+if [[ -f ".github/${TEMPLATE_VERSION_FILE_PATH}" || ! -f "${TEMPLATE_VERSION_FILE_PATH}" ]]; then
+  echo "::debug::using version file as in .github folder"
+  TEMPLATE_VERSION_FILE_PATH=".github/${TEMPLATE_VERSION_FILE_PATH}"
+fi
+if [ -r ${TEMPLATE_VERSION_FILE_PATH} ]; then
+  CURRENT_TEMPLATE_GIT_HASH=$(cat ${TEMPLATE_VERSION_FILE_PATH})
   echo "::debug::Current git hash ${CURRENT_TEMPLATE_GIT_HASH}"
 fi
 
-if [ "${NEW_TEMPLATE_GIT_HASH}" == "${CURRENT_TEMPLATE_GIT_HASH}" ]
-then
+if [ "${NEW_TEMPLATE_GIT_HASH}" == "${CURRENT_TEMPLATE_GIT_HASH}" ]; then
   echo "::warn::repository is up to date"
   exit 0
 fi
@@ -66,19 +70,23 @@ fi
 
 echo "::group::persist template version"
 echo "write new template version file"
-echo "${NEW_TEMPLATE_GIT_HASH}" > ${TEMPLATE_VERSION_FILE_NAME}
-echo "::debug::wrote new template version file with content $(cat ${TEMPLATE_VERSION_FILE_NAME})"
+echo "${NEW_TEMPLATE_GIT_HASH}" > ${TEMPLATE_VERSION_FILE_PATH}
+echo "::debug::wrote new template version file with content $(cat ${TEMPLATE_VERSION_FILE_PATH})"
 echo "::endgroup::"
 
 echo "::group::commit and push changes"
 git add .
 
+# Check if the Ignore File exists inside .github folder or if it doesn't exist at all
+if [[ -f ".github/${TEMPLATE_SYNC_IGNORE_FILE_PATH}" || ! -f "${TEMPLATE_SYNC_IGNORE_FILE_PATH}" ]]; then
+  echo "::debug::using ignore file as in .github folder"
+  TEMPLATE_SYNC_IGNORE_FILE_PATH=".github/${TEMPLATE_SYNC_IGNORE_FILE_PATH}"
+fi
 # we are checking the ignore file if it exists or is empty
 # -s is true if the file contains whitespaces
-if [ -s ${TEMPLATE_SYNC_IGNORE_FILE_NAME} ]
-then
+if [ -s ${TEMPLATE_SYNC_IGNORE_FILE_PATH} ]; then
   echo "::debug::unstage files from template sync ignore"
-  git reset --pathspec-from-file="${TEMPLATE_SYNC_IGNORE_FILE_NAME}"
+  git reset --pathspec-from-file="${TEMPLATE_SYNC_IGNORE_FILE_PATH}"
 
   echo "::debug::clean untracked files"
   git clean -df