diff --git a/excalidraw-app/vite.config.mts b/excalidraw-app/vite.config.mts
index 627b75710..f10e742f5 100644
--- a/excalidraw-app/vite.config.mts
+++ b/excalidraw-app/vite.config.mts
@@ -47,14 +47,6 @@ export default defineConfig(({ mode }) => {
           find: /^@excalidraw\/excalidraw\/(.*?)/,
           replacement: path.resolve(__dirname, "../packages/excalidraw/$1"),
         },
-        {
-          find: /^@excalidraw\/utils$/,
-          replacement: path.resolve(__dirname, "../packages/utils/index.ts"),
-        },
-        {
-          find: /^@excalidraw\/utils\/(.*?)/,
-          replacement: path.resolve(__dirname, "../packages/utils/$1"),
-        },
         {
           find: /^@excalidraw\/math$/,
           replacement: path.resolve(__dirname, "../packages/math/src/index.ts"),
@@ -63,6 +55,14 @@ export default defineConfig(({ mode }) => {
           find: /^@excalidraw\/math\/(.*?)/,
           replacement: path.resolve(__dirname, "../packages/math/src/$1"),
         },
+        {
+          find: /^@excalidraw\/utils$/,
+          replacement: path.resolve(__dirname, "../packages/utils/src/index.ts"),
+        },
+        {
+          find: /^@excalidraw\/utils\/(.*?)/,
+          replacement: path.resolve(__dirname, "../packages/utils/src/$1"),
+        },
       ],
     },
     build: {
diff --git a/packages/element/src/bounds.ts b/packages/element/src/bounds.ts
index 8cf04c4cd..bab1a1871 100644
--- a/packages/element/src/bounds.ts
+++ b/packages/element/src/bounds.ts
@@ -11,7 +11,7 @@ import {
   pointRotateRads,
 } from "@excalidraw/math";
 
-import { getCurvePathOps } from "@excalidraw/utils/geometry/shape";
+import { getCurvePathOps } from "@excalidraw/utils/shape";
 
 import type {
   Degrees,
diff --git a/packages/element/src/collision.ts b/packages/element/src/collision.ts
index 258c0dbc8..1c830b6f3 100644
--- a/packages/element/src/collision.ts
+++ b/packages/element/src/collision.ts
@@ -16,7 +16,7 @@ import {
 } from "@excalidraw/math/ellipse";
 
 import { isPointInShape, isPointOnShape } from "@excalidraw/utils/collision";
-import { getPolygonShape } from "@excalidraw/utils/geometry/shape";
+import { getPolygonShape } from "@excalidraw/utils/shape";
 
 import type {
   GlobalPoint,
@@ -26,7 +26,7 @@ import type {
   Radians,
 } from "@excalidraw/math";
 
-import type { GeometricShape } from "@excalidraw/utils/geometry/shape";
+import type { GeometricShape } from "@excalidraw/utils/shape";
 
 import type { FrameNameBounds } from "@excalidraw/excalidraw/types";
 
diff --git a/packages/element/src/linearElementEditor.ts b/packages/element/src/linearElementEditor.ts
index 3f157f3d8..b960ab4b4 100644
--- a/packages/element/src/linearElementEditor.ts
+++ b/packages/element/src/linearElementEditor.ts
@@ -9,7 +9,7 @@ import {
   vectorFromPoint,
 } from "@excalidraw/math";
 
-import { getCurvePathOps } from "@excalidraw/utils/geometry/shape";
+import { getCurvePathOps } from "@excalidraw/utils/shape";
 
 import {
   DRAGGING_THRESHOLD,
@@ -20,7 +20,7 @@ import {
   tupleToCoors,
 } from "@excalidraw/common";
 
-// TODO: remove the dependency on the scene
+// TODO: remove direct dependency on the scene, should be passed in or injected instead
 import Scene from "@excalidraw/excalidraw/scene/Scene";
 
 import type { Store } from "@excalidraw/excalidraw/store";
diff --git a/packages/element/src/mutateElement.ts b/packages/element/src/mutateElement.ts
index 7de80ef43..5cff9a58a 100644
--- a/packages/element/src/mutateElement.ts
+++ b/packages/element/src/mutateElement.ts
@@ -5,7 +5,7 @@ import {
   toBrandedType,
 } from "@excalidraw/common";
 
-// TODO_SEP: should be passed in or injected instead
+// TODO: remove direct dependency on the scene, should be passed in or injected instead
 import Scene from "@excalidraw/excalidraw/scene/Scene";
 
 import type { Radians } from "@excalidraw/math";
diff --git a/packages/element/src/shapes.ts b/packages/element/src/shapes.ts
index 43b06ad98..1d6e13340 100644
--- a/packages/element/src/shapes.ts
+++ b/packages/element/src/shapes.ts
@@ -23,7 +23,7 @@ import {
   getFreedrawShape,
   getPolygonShape,
   type GeometricShape,
-} from "@excalidraw/utils/geometry/shape";
+} from "@excalidraw/utils/shape";
 
 import type { NormalizedZoomValue, Zoom } from "@excalidraw/excalidraw/types";
 
diff --git a/packages/element/tests/elbowArrow.test.tsx b/packages/element/tests/elbowArrow.test.tsx
index eb50249d4..b8b5a8b85 100644
--- a/packages/element/tests/elbowArrow.test.tsx
+++ b/packages/element/tests/elbowArrow.test.tsx
@@ -17,12 +17,12 @@ import {
   render,
 } from "@excalidraw/excalidraw/tests/test-utils";
 
+import "@excalidraw/utils/test-utils";
+
 import type { LocalPoint } from "@excalidraw/math";
 
 import { bindLinearElement } from "../src/binding";
 
-import "../../utils/test-utils";
-
 import type {
   ExcalidrawArrowElement,
   ExcalidrawBindableElement,
diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index ef8fdd48a..f8f15e81b 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -18,7 +18,7 @@ import {
   vectorNormalize,
 } from "@excalidraw/math";
 import { isPointInShape } from "@excalidraw/utils/collision";
-import { getSelectionBoxShape } from "@excalidraw/utils/geometry/shape";
+import { getSelectionBoxShape } from "@excalidraw/utils/shape";
 
 import {
   COLOR_PALETTE,
diff --git a/packages/excalidraw/components/UserList.scss b/packages/excalidraw/components/UserList.scss
index fdcadef7e..025f4d16e 100644
--- a/packages/excalidraw/components/UserList.scss
+++ b/packages/excalidraw/components/UserList.scss
@@ -1,4 +1,4 @@
-@import "../css/variables.module";
+@import "../css/variables.module.scss";
 
 .excalidraw {
   --avatar-size: 1.75rem;
diff --git a/packages/excalidraw/tests/history.test.tsx b/packages/excalidraw/tests/history.test.tsx
index c26204f3a..8dd65c7a5 100644
--- a/packages/excalidraw/tests/history.test.tsx
+++ b/packages/excalidraw/tests/history.test.tsx
@@ -21,6 +21,8 @@ import {
   DEFAULT_ELEMENT_STROKE_COLOR_INDEX,
 } from "@excalidraw/common";
 
+import "@excalidraw/utils/test-utils";
+
 import type { LocalPoint, Radians } from "@excalidraw/math";
 
 import type {
@@ -35,7 +37,6 @@ import type {
 } from "@excalidraw/element/types";
 
 import "../global.d.ts";
-import "../../utils/test-utils";
 
 import {
   actionSendBackward,
diff --git a/packages/excalidraw/tests/move.test.tsx b/packages/excalidraw/tests/move.test.tsx
index 823056da8..cf05e072d 100644
--- a/packages/excalidraw/tests/move.test.tsx
+++ b/packages/excalidraw/tests/move.test.tsx
@@ -5,6 +5,8 @@ import { bindOrUnbindLinearElement } from "@excalidraw/element/binding";
 
 import { KEYS, reseed } from "@excalidraw/common";
 
+import "@excalidraw/utils/test-utils";
+
 import type {
   ExcalidrawLinearElement,
   NonDeleted,
@@ -17,7 +19,6 @@ import { Excalidraw } from "../index";
 import * as InteractiveCanvas from "../renderer/interactiveScene";
 import * as StaticScene from "../renderer/staticScene";
 
-import "../../utils/test-utils";
 
 import { UI, Pointer, Keyboard } from "./helpers/ui";
 import { render, fireEvent, act, unmountComponent } from "./test-utils";
diff --git a/packages/math/tests/curve.test.ts b/packages/math/tests/curve.test.ts
index 753ab5bef..739562096 100644
--- a/packages/math/tests/curve.test.ts
+++ b/packages/math/tests/curve.test.ts
@@ -1,4 +1,4 @@
-import "../../utils/test-utils";
+import "@excalidraw/utils/test-utils";
 
 import {
   curve,
diff --git a/packages/tsconfig.base.json b/packages/tsconfig.base.json
index cde00d3fc..18f7fcb36 100644
--- a/packages/tsconfig.base.json
+++ b/packages/tsconfig.base.json
@@ -19,8 +19,8 @@
       "@excalidraw/excalidraw/*": ["./excalidraw/*"],
       "@excalidraw/math": ["./math/src/index.ts"],
       "@excalidraw/math/*": ["./math/src/*"],
-      "@excalidraw/utils": ["./utils/index.ts"],
-      "@excalidraw/utils/*": ["./utils/*"]
+      "@excalidraw/utils": ["./utils/src/index.ts"],
+      "@excalidraw/utils/*": ["./utils/src/*"]
     }
   },
   "exclude": ["**/*.test.*", "tests", "types", "examples", "dist"]
diff --git a/packages/utils/bbox.ts b/packages/utils/src/bbox.ts
similarity index 100%
rename from packages/utils/bbox.ts
rename to packages/utils/src/bbox.ts
diff --git a/packages/utils/collision.ts b/packages/utils/src/collision.ts
similarity index 96%
rename from packages/utils/collision.ts
rename to packages/utils/src/collision.ts
index f90019418..47431511b 100644
--- a/packages/utils/collision.ts
+++ b/packages/utils/src/collision.ts
@@ -12,13 +12,9 @@ import {
 
 import type { Curve } from "@excalidraw/math";
 
-import {
-  pointInEllipse,
-  pointOnEllipse,
-  type GeometricShape,
-} from "./geometry/shape";
+import { pointInEllipse, pointOnEllipse, type GeometricShape } from "./shape";
 
-import type { Polycurve, Polyline } from "./geometry/shape";
+import type { Polycurve, Polyline } from "./shape";
 
 // check if the given point is considered on the given shape's border
 export const isPointOnShape = <Point extends GlobalPoint | LocalPoint>(
diff --git a/packages/utils/export.ts b/packages/utils/src/export.ts
similarity index 100%
rename from packages/utils/export.ts
rename to packages/utils/src/export.ts
diff --git a/packages/utils/index.ts b/packages/utils/src/index.ts
similarity index 100%
rename from packages/utils/index.ts
rename to packages/utils/src/index.ts
diff --git a/packages/utils/geometry/shape.ts b/packages/utils/src/shape.ts
similarity index 100%
rename from packages/utils/geometry/shape.ts
rename to packages/utils/src/shape.ts
diff --git a/packages/utils/test-utils.ts b/packages/utils/src/test-utils.ts
similarity index 100%
rename from packages/utils/test-utils.ts
rename to packages/utils/src/test-utils.ts
diff --git a/packages/utils/withinBounds.ts b/packages/utils/src/withinBounds.ts
similarity index 100%
rename from packages/utils/withinBounds.ts
rename to packages/utils/src/withinBounds.ts
diff --git a/packages/utils/__snapshots__/export.test.ts.snap b/packages/utils/tests/__snapshots__/export.test.ts.snap
similarity index 100%
rename from packages/utils/__snapshots__/export.test.ts.snap
rename to packages/utils/tests/__snapshots__/export.test.ts.snap
diff --git a/packages/utils/__snapshots__/utils.test.ts.snap b/packages/utils/tests/__snapshots__/utils.test.ts.snap
similarity index 100%
rename from packages/utils/__snapshots__/utils.test.ts.snap
rename to packages/utils/tests/__snapshots__/utils.test.ts.snap
diff --git a/packages/utils/collision.test.ts b/packages/utils/tests/collision.test.ts
similarity index 96%
rename from packages/utils/collision.test.ts
rename to packages/utils/tests/collision.test.ts
index 24f96e985..35bc28b34 100644
--- a/packages/utils/collision.test.ts
+++ b/packages/utils/tests/collision.test.ts
@@ -9,9 +9,9 @@ import {
 
 import type { Curve, Degrees, GlobalPoint } from "@excalidraw/math";
 
-import { pointOnCurve, pointOnPolyline } from "./collision";
+import { pointOnCurve, pointOnPolyline } from "../src/collision";
 
-import type { Polyline } from "./geometry/shape";
+import type { Polyline } from "../src/shape";
 
 describe("point and curve", () => {
   const c: Curve<GlobalPoint> = curve(
diff --git a/packages/utils/export.test.ts b/packages/utils/tests/export.test.ts
similarity index 99%
rename from packages/utils/export.test.ts
rename to packages/utils/tests/export.test.ts
index 8566315b6..47b9398ab 100644
--- a/packages/utils/export.test.ts
+++ b/packages/utils/tests/export.test.ts
@@ -3,7 +3,7 @@ import * as mockedSceneExportUtils from "@excalidraw/excalidraw/scene/export";
 import { diagramFactory } from "@excalidraw/excalidraw/tests/fixtures/diagramFixture";
 import { vi } from "vitest";
 
-import * as utils from ".";
+import * as utils from "../src";
 
 const exportToSvgSpy = vi.spyOn(mockedSceneExportUtils, "exportToSvg");
 
diff --git a/packages/utils/geometry/geometry.test.ts b/packages/utils/tests/geometry.test.ts
similarity index 98%
rename from packages/utils/geometry/geometry.test.ts
rename to packages/utils/tests/geometry.test.ts
index 6ddab71b0..8a2f95d3f 100644
--- a/packages/utils/geometry/geometry.test.ts
+++ b/packages/utils/tests/geometry.test.ts
@@ -15,7 +15,7 @@ import type {
   Radians,
 } from "@excalidraw/math";
 
-import { pointInEllipse, pointOnEllipse, type Ellipse } from "./shape";
+import { pointInEllipse, pointOnEllipse, type Ellipse } from "../src/shape";
 
 describe("point and line", () => {
   // const l: Line<GlobalPoint> = line(point(1, 0), point(1, 2));
diff --git a/packages/utils/utils.unmocked.test.ts b/packages/utils/tests/utils.unmocked.test.ts
similarity index 98%
rename from packages/utils/utils.unmocked.test.ts
rename to packages/utils/tests/utils.unmocked.test.ts
index 417eabda1..b77bc37d1 100644
--- a/packages/utils/utils.unmocked.test.ts
+++ b/packages/utils/tests/utils.unmocked.test.ts
@@ -4,7 +4,7 @@ import { API } from "@excalidraw/excalidraw/tests/helpers/api";
 
 import type { ImportedDataState } from "@excalidraw/excalidraw/data/types";
 
-import * as utils from "./index";
+import * as utils from "../src";
 
 // NOTE this test file is using the actual API, unmocked. Hence splitting it
 // from the other test file, because I couldn't figure out how to test
diff --git a/packages/utils/withinBounds.test.ts b/packages/utils/tests/withinBounds.test.ts
similarity index 99%
rename from packages/utils/withinBounds.test.ts
rename to packages/utils/tests/withinBounds.test.ts
index bbc0aa62a..d1af75de8 100644
--- a/packages/utils/withinBounds.test.ts
+++ b/packages/utils/tests/withinBounds.test.ts
@@ -6,7 +6,7 @@ import {
   elementPartiallyOverlapsWithOrContainsBBox,
   elementsOverlappingBBox,
   isElementInsideBBox,
-} from "./withinBounds";
+} from "../src/withinBounds";
 
 const makeElement = (x: number, y: number, width: number, height: number) =>
   API.createElement({
diff --git a/scripts/buildPackage.js b/scripts/buildPackage.js
index bfe96ddc2..baf20615f 100644
--- a/scripts/buildPackage.js
+++ b/scripts/buildPackage.js
@@ -32,7 +32,7 @@ const getConfig = (outdir) => ({
     "@excalidraw/element": path.resolve(__dirname, "../packages/element/src"),
     "@excalidraw/excalidraw": path.resolve(__dirname, "../packages/excalidraw"),
     "@excalidraw/math": path.resolve(__dirname, "../packages/math/src"),
-    "@excalidraw/utils": path.resolve(__dirname, "../packages/utils"),
+    "@excalidraw/utils": path.resolve(__dirname, "../packages/utils/src"),
   },
   loader: {
     ".woff2": "file",
diff --git a/scripts/buildShared.js b/scripts/buildShared.js
index 19ac5d049..01db34c24 100644
--- a/scripts/buildShared.js
+++ b/scripts/buildShared.js
@@ -10,7 +10,7 @@ const getConfig = (outdir) => ({
   outdir,
   bundle: true,
   format: "esm",
-  entryPoints: ["index.ts"],
+  entryPoints: ["src/index.ts"],
   entryNames: "[name]",
   assetNames: "[dir]/[name]",
   alias: {
@@ -18,7 +18,7 @@ const getConfig = (outdir) => ({
     "@excalidraw/element": path.resolve(__dirname, "../packages/element/src"),
     "@excalidraw/excalidraw": path.resolve(__dirname, "../packages/excalidraw"),
     "@excalidraw/math": path.resolve(__dirname, "../packages/math/src"),
-    "@excalidraw/utils": path.resolve(__dirname, "../packages/utils"),
+    "@excalidraw/utils": path.resolve(__dirname, "../packages/utils/src"),
   },
 });
 
diff --git a/tsconfig.json b/tsconfig.json
index 1cde33248..45a29dd61 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -27,8 +27,8 @@
       "@excalidraw/element/*": ["./packages/element/src/*"],
       "@excalidraw/math": ["./packages/math/src/index.ts"],
       "@excalidraw/math/*": ["./packages/math/src/*"],
-      "@excalidraw/utils": ["./packages/utils/index.ts"],
-      "@excalidraw/utils/*": ["./packages/utils/*"]
+      "@excalidraw/utils": ["./packages/utils/src/index.ts"],
+      "@excalidraw/utils/*": ["./packages/utils/src/*"]
     }
   },
   "include": ["packages", "excalidraw-app"],
diff --git a/vitest.config.mts b/vitest.config.mts
index 4f230090e..353f84ccf 100644
--- a/vitest.config.mts
+++ b/vitest.config.mts
@@ -29,14 +29,6 @@ export default defineConfig({
         find: /^@excalidraw\/excalidraw\/(.*?)/,
         replacement: path.resolve(__dirname, "./packages/excalidraw/$1"),
       },
-      {
-        find: /^@excalidraw\/utils$/,
-        replacement: path.resolve(__dirname, "./packages/utils/index.ts"),
-      },
-      {
-        find: /^@excalidraw\/utils\/(.*?)/,
-        replacement: path.resolve(__dirname, "./packages/utils/$1"),
-      },
       {
         find: /^@excalidraw\/math$/,
         replacement: path.resolve(__dirname, "./packages/math/src/index.ts"),
@@ -45,6 +37,14 @@ export default defineConfig({
         find: /^@excalidraw\/math\/(.*?)/,
         replacement: path.resolve(__dirname, "./packages/math/src/$1"),
       },
+      {
+        find: /^@excalidraw\/utils$/,
+        replacement: path.resolve(__dirname, "./packages/utils/src/index.ts"),
+      },
+      {
+        find: /^@excalidraw\/utils\/(.*?)/,
+        replacement: path.resolve(__dirname, "./packages/utils/src/$1"),
+      },
     ],
   },
   //@ts-ignore