diff --git a/create-app.ts b/create-app.ts
index 3379ceec..8683ee9a 100644
--- a/create-app.ts
+++ b/create-app.ts
@@ -41,8 +41,9 @@ export async function createApp({
   vectorDb,
   externalPort,
   postInstallAction,
-  dataSource,
+  dataSources,
   tools,
+  useLlamaParse,
   observability,
 }: InstallAppArgs): Promise<void> {
   const root = path.resolve(appPath);
@@ -89,8 +90,9 @@ export async function createApp({
     vectorDb,
     externalPort,
     postInstallAction,
-    dataSource,
+    dataSources,
     tools,
+    useLlamaParse,
     observability,
   };
 
diff --git a/helpers/env-variables.ts b/helpers/env-variables.ts
index 06d27197..660b17a2 100644
--- a/helpers/env-variables.ts
+++ b/helpers/env-variables.ts
@@ -107,7 +107,7 @@ export const createBackendEnvFile = async (
     model?: string;
     embeddingModel?: string;
     framework?: TemplateFramework;
-    dataSource?: TemplateDataSource;
+    dataSources?: TemplateDataSource[];
     port?: number;
   },
 ) => {
@@ -126,19 +126,13 @@ export const createBackendEnvFile = async (
       description: "The OpenAI API key to use.",
       value: opts.openAiKey,
     },
-
+    {
+      name: "LLAMA_CLOUD_API_KEY",
+      description: `The Llama Cloud API key.`,
+      value: opts.llamaCloudKey,
+    },
     // Add vector database environment variables
     ...(opts.vectorDb ? getVectorDBEnvs(opts.vectorDb) : []),
-    // Add LlamaCloud API key
-    ...(opts.llamaCloudKey
-      ? [
-          {
-            name: "LLAMA_CLOUD_API_KEY",
-            description: `The Llama Cloud API key.`,
-            value: opts.llamaCloudKey,
-          },
-        ]
-      : []),
   ];
   let envVars: EnvVar[] = [];
   if (opts.framework === "fastapi") {
diff --git a/helpers/index.ts b/helpers/index.ts
index 6a217346..de28a18f 100644
--- a/helpers/index.ts
+++ b/helpers/index.ts
@@ -1,10 +1,9 @@
-import { copy } from "./copy";
 import { callPackageManager } from "./install";
 
-import fs from "fs/promises";
 import path from "path";
 import { cyan } from "picocolors";
 
+import fsExtra from "fs-extra";
 import { templatesDir } from "./dir";
 import { createBackendEnvFile, createFrontendEnvFile } from "./env-variables";
 import { PackageManager } from "./get-pkg-manager";
@@ -27,8 +26,8 @@ async function generateContextData(
   packageManager?: PackageManager,
   openAiKey?: string,
   vectorDb?: TemplateVectorDB,
-  dataSource?: TemplateDataSource,
   llamaCloudKey?: string,
+  useLlamaParse?: boolean,
 ) {
   if (packageManager) {
     const runGenerate = `${cyan(
@@ -37,8 +36,7 @@ async function generateContextData(
         : `${packageManager} run generate`,
     )}`;
     const openAiKeyConfigured = openAiKey || process.env["OPENAI_API_KEY"];
-    const llamaCloudKeyConfigured = (dataSource?.config as FileSourceConfig)
-      ?.useLlamaParse
+    const llamaCloudKeyConfigured = useLlamaParse
       ? llamaCloudKey || process.env["LLAMA_CLOUD_API_KEY"]
       : true;
     const hasVectorDb = vectorDb && vectorDb !== "none";
@@ -76,47 +74,16 @@ async function generateContextData(
 
 const copyContextData = async (
   root: string,
-  dataSource?: TemplateDataSource,
+  dataSources: TemplateDataSource[],
 ) => {
-  const destPath = path.join(root, "data");
-
-  const dataSourceConfig = dataSource?.config as FileSourceConfig;
-
-  // Copy file
-  if (dataSource?.type === "file") {
-    if (dataSourceConfig.paths) {
-      await fs.mkdir(destPath, { recursive: true });
-      console.log(
-        "Copying data from files:",
-        dataSourceConfig.paths.toString(),
-      );
-      for (const p of dataSourceConfig.paths) {
-        await fs.copyFile(p, path.join(destPath, path.basename(p)));
-      }
-    } else {
-      console.log("Missing file path in config");
-      process.exit(1);
-    }
-    return;
-  }
-
-  // Copy folder
-  if (dataSource?.type === "folder") {
-    // Example data does not have path config, set the default path
-    const srcPaths = dataSourceConfig.paths ?? [
-      path.join(templatesDir, "components", "data"),
-    ];
-    console.log("Copying data from folders: ", srcPaths);
-    for (const p of srcPaths) {
-      const folderName = path.basename(p);
-      const destFolderPath = path.join(destPath, folderName);
-      await fs.mkdir(destFolderPath, { recursive: true });
-      await copy("**", destFolderPath, {
-        parents: true,
-        cwd: p,
-      });
-    }
-    return;
+  for (const dataSource of dataSources) {
+    const dataSourceConfig = dataSource?.config as FileSourceConfig;
+    // Copy local data
+    const dataPath =
+      dataSourceConfig.path ?? path.join(templatesDir, "components", "data");
+    const destPath = path.join(root, "data", path.basename(dataPath));
+    console.log("Copying data from path:", dataPath);
+    await fsExtra.copy(dataPath, destPath);
   }
 };
 
@@ -166,12 +133,13 @@ export const installTemplate = async (
       model: props.model,
       embeddingModel: props.embeddingModel,
       framework: props.framework,
-      dataSource: props.dataSource,
+      dataSources: props.dataSources,
       port: props.externalPort,
     });
 
     if (props.engine === "context") {
-      await copyContextData(props.root, props.dataSource);
+      console.log("\nGenerating context data...\n");
+      await copyContextData(props.root, props.dataSources);
       if (
         props.postInstallAction === "runApp" ||
         props.postInstallAction === "dependencies"
@@ -181,14 +149,14 @@ export const installTemplate = async (
           props.packageManager,
           props.openAiKey,
           props.vectorDb,
-          props.dataSource,
           props.llamaCloudKey,
+          props.useLlamaParse,
         );
       }
     }
   } else {
     // this is a frontend for a full-stack app, create .env file with model information
-    createFrontendEnvFile(props.root, {
+    await createFrontendEnvFile(props.root, {
       model: props.model,
       customApiPath: props.customApiPath,
     });
diff --git a/helpers/python.ts b/helpers/python.ts
index 9687f371..b4427c24 100644
--- a/helpers/python.ts
+++ b/helpers/python.ts
@@ -8,7 +8,6 @@ import { templatesDir } from "./dir";
 import { isPoetryAvailable, tryPoetryInstall } from "./poetry";
 import { Tool } from "./tools";
 import {
-  FileSourceConfig,
   InstallTemplateArgs,
   TemplateDataSource,
   TemplateVectorDB,
@@ -65,7 +64,7 @@ const getAdditionalDependencies = (
 
   // Add data source dependencies
   const dataSourceType = dataSource?.type;
-  if (dataSourceType === "file" || dataSourceType === "folder") {
+  if (dataSourceType === "file") {
     // llama-index-readers-file (pdf, excel, csv) is already included in llama_index package
     dependencies.push({
       name: "docx2txt",
@@ -180,9 +179,10 @@ export const installPythonTemplate = async ({
   framework,
   engine,
   vectorDb,
-  dataSource,
+  dataSources,
   tools,
   postInstallAction,
+  useLlamaParse,
 }: Pick<
   InstallTemplateArgs,
   | "root"
@@ -190,8 +190,9 @@ export const installPythonTemplate = async ({
   | "template"
   | "engine"
   | "vectorDb"
-  | "dataSource"
+  | "dataSources"
   | "tools"
+  | "useLlamaParse"
   | "postInstallAction"
 >) => {
   console.log("\nInitializing Python project with template:", template, "\n");
@@ -256,51 +257,52 @@ export const installPythonTemplate = async ({
       });
     }
 
-    // Write loader configs
-    if (dataSource?.type === "web") {
-      const config = dataSource.config as WebSourceConfig[];
-      const webLoaderConfig = config.map((c) => {
-        return {
-          base_url: c.baseUrl,
-          prefix: c.prefix || c.baseUrl,
-          depth: c.depth || 1,
-        };
-      });
-      const loaderConfigPath = path.join(root, "config/loaders.json");
-      await fs.mkdir(path.join(root, "config"), { recursive: true });
-      await fs.writeFile(
-        loaderConfigPath,
-        JSON.stringify(
-          {
-            web: webLoaderConfig,
-          },
-          null,
-          2,
-        ),
-      );
-    }
+    if (dataSources.length > 0) {
+      const loaderConfigs: Record<string, any> = {};
+      const loaderPath = path.join(enginePath, "loaders");
 
-    const dataSourceType = dataSource?.type;
-    if (dataSourceType !== undefined && dataSourceType !== "none") {
-      let loaderFolder: string;
-      if (dataSourceType === "file" || dataSourceType === "folder") {
-        const dataSourceConfig = dataSource?.config as FileSourceConfig;
-        loaderFolder = dataSourceConfig.useLlamaParse ? "llama_parse" : "file";
-      } else {
-        loaderFolder = dataSourceType;
-      }
-      await copy("**", enginePath, {
+      // Copy loaders to enginePath
+      await copy("**", loaderPath, {
         parents: true,
-        cwd: path.join(compPath, "loaders", "python", loaderFolder),
+        cwd: path.join(compPath, "loaders", "python"),
       });
+
+      // Generate loaders config
+      // Web loader config
+      if (dataSources.some((ds) => ds.type === "web")) {
+        const webLoaderConfig = dataSources
+          .filter((ds) => ds.type === "web")
+          .map((ds) => {
+            const dsConfig = ds.config as WebSourceConfig;
+            return {
+              base_url: dsConfig.baseUrl,
+              prefix: dsConfig.prefix,
+              depth: dsConfig.depth,
+            };
+          });
+        loaderConfigs["web"] = webLoaderConfig;
+      }
+      // File loader config
+      if (dataSources.some((ds) => ds.type === "file")) {
+        loaderConfigs["file"] = {
+          use_llama_parse: useLlamaParse,
+        };
+      }
+      // Write loaders config
+      if (Object.keys(loaderConfigs).length > 0) {
+        const loaderConfigPath = path.join(root, "config/loaders.json");
+        await fs.mkdir(path.join(root, "config"), { recursive: true });
+        await fs.writeFile(
+          loaderConfigPath,
+          JSON.stringify(loaderConfigs, null, 2),
+        );
+      }
     }
   }
 
-  const addOnDependencies = getAdditionalDependencies(
-    vectorDb,
-    dataSource,
-    tools,
-  );
+  const addOnDependencies = dataSources
+    .map((ds) => getAdditionalDependencies(vectorDb, ds, tools))
+    .flat();
   await addDependencies(root, addOnDependencies);
 
   if (postInstallAction === "runApp" || postInstallAction === "dependencies") {
diff --git a/helpers/types.ts b/helpers/types.ts
index d093c099..0c5a30f0 100644
--- a/helpers/types.ts
+++ b/helpers/types.ts
@@ -15,12 +15,11 @@ export type TemplateDataSource = {
   type: TemplateDataSourceType;
   config: TemplateDataSourceConfig;
 };
-export type TemplateDataSourceType = "none" | "file" | "folder" | "web";
+export type TemplateDataSourceType = "file" | "web";
 export type TemplateObservability = "none" | "opentelemetry";
 // Config for both file and folder
 export type FileSourceConfig = {
-  paths?: string[];
-  useLlamaParse?: boolean;
+  path?: string;
 };
 export type WebSourceConfig = {
   baseUrl?: string;
@@ -28,7 +27,7 @@ export type WebSourceConfig = {
   depth?: number;
 };
 
-export type TemplateDataSourceConfig = FileSourceConfig | WebSourceConfig[];
+export type TemplateDataSourceConfig = FileSourceConfig | WebSourceConfig;
 
 export type CommunityProjectConfig = {
   owner: string;
@@ -46,11 +45,12 @@ export interface InstallTemplateArgs {
   framework: TemplateFramework;
   engine: TemplateEngine;
   ui: TemplateUI;
-  dataSource?: TemplateDataSource;
+  dataSources: TemplateDataSource[];
   eslint: boolean;
   customApiPath?: string;
   openAiKey?: string;
   llamaCloudKey?: string;
+  useLlamaParse?: boolean;
   model: string;
   embeddingModel: string;
   communityProjectConfig?: CommunityProjectConfig;
diff --git a/helpers/typescript.ts b/helpers/typescript.ts
index 4fdbca98..4aefb531 100644
--- a/helpers/typescript.ts
+++ b/helpers/typescript.ts
@@ -6,7 +6,7 @@ import { copy } from "../helpers/copy";
 import { callPackageManager } from "../helpers/install";
 import { templatesDir } from "./dir";
 import { PackageManager } from "./get-pkg-manager";
-import { FileSourceConfig, InstallTemplateArgs } from "./types";
+import { InstallTemplateArgs } from "./types";
 
 const rename = (name: string) => {
   switch (name) {
@@ -65,7 +65,8 @@ export const installTSTemplate = async ({
   backend,
   observability,
   tools,
-  dataSource,
+  dataSources,
+  useLlamaParse,
 }: InstallTemplateArgs & { backend: boolean }) => {
   console.log(bold(`Using ${packageManager}.`));
 
@@ -173,15 +174,10 @@ export const installTSTemplate = async ({
     });
 
     // copy loader component
-    const dataSourceType = dataSource?.type;
-    if (dataSourceType && dataSourceType !== "none") {
+    const dataSourceType = dataSources[0]?.type;
+    if (dataSourceType) {
       let loaderFolder: string;
-      if (dataSourceType === "file" || dataSourceType === "folder") {
-        const dataSourceConfig = dataSource?.config as FileSourceConfig;
-        loaderFolder = dataSourceConfig.useLlamaParse ? "llama_parse" : "file";
-      } else {
-        loaderFolder = dataSourceType;
-      }
+      loaderFolder = useLlamaParse ? "llama_parse" : dataSourceType;
       await copy("**", enginePath, {
         parents: true,
         cwd: path.join(compPath, "loaders", "typescript", loaderFolder),
diff --git a/index.ts b/index.ts
index 15f453ed..2bd8cf3c 100644
--- a/index.ts
+++ b/index.ts
@@ -302,8 +302,9 @@ async function run(): Promise<void> {
     vectorDb: program.vectorDb,
     externalPort: program.externalPort,
     postInstallAction: program.postInstallAction,
-    dataSource: program.dataSource,
+    dataSources: program.dataSources,
     tools: program.tools,
+    useLlamaParse: program.useLlamaParse,
     observability: program.observability,
   });
   conf.set("preferences", preferences);
diff --git a/package.json b/package.json
index b93df497..92bc5bb4 100644
--- a/package.json
+++ b/package.json
@@ -43,6 +43,7 @@
     "@types/prompts": "2.0.1",
     "@types/tar": "6.1.5",
     "@types/validate-npm-package-name": "3.0.0",
+    "@types/fs-extra": "11.0.4",
     "@vercel/ncc": "0.38.1",
     "async-retry": "1.3.1",
     "async-sema": "3.0.1",
@@ -68,7 +69,8 @@
     "prettier-plugin-organize-imports": "^3.2.4",
     "typescript": "^5.3.3",
     "eslint-config-prettier": "^8.10.0",
-    "ora": "^8.0.1"
+    "ora": "^8.0.1",
+    "fs-extra": "11.2.0"
   },
   "engines": {
     "node": ">=16.14.0"
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 82d4b7c3..4dbb3836 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -20,6 +20,9 @@ devDependencies:
   '@types/cross-spawn':
     specifier: 6.0.0
     version: 6.0.0
+  '@types/fs-extra':
+    specifier: 11.0.4
+    version: 11.0.4
   '@types/node':
     specifier: ^20.11.7
     version: 20.11.26
@@ -62,6 +65,9 @@ devDependencies:
   fast-glob:
     specifier: 3.3.1
     version: 3.3.1
+  fs-extra:
+    specifier: 11.2.0
+    version: 11.2.0
   got:
     specifier: 10.7.0
     version: 10.7.0
@@ -489,10 +495,23 @@ packages:
       '@types/node': 20.11.26
     dev: true
 
+  /@types/fs-extra@11.0.4:
+    resolution: {integrity: sha512-yTbItCNreRooED33qjunPthRcSjERP1r4MqCZc7wv0u2sUkzTFp45tgUfS5+r7FrZPdmCCNflLhVSP/o+SemsQ==}
+    dependencies:
+      '@types/jsonfile': 6.1.4
+      '@types/node': 20.11.26
+    dev: true
+
   /@types/http-cache-semantics@4.0.4:
     resolution: {integrity: sha512-1m0bIFVc7eJWyve9S0RnuRgcQqF/Xd5QsUZAZeQFr1Q3/p9JWoQQEqmVy+DPTNpGXwhgIetAoYF8JSc33q29QA==}
     dev: true
 
+  /@types/jsonfile@6.1.4:
+    resolution: {integrity: sha512-D5qGUYwjvnNNextdU59/+fI+spnwtTFmyQP0h+PfIOSkNfpU6AOICUOkm4i0OnSk+NyjdPJrxCDro0sJsWlRpQ==}
+    dependencies:
+      '@types/node': 20.11.26
+    dev: true
+
   /@types/keyv@3.1.4:
     resolution: {integrity: sha512-BQ5aZNSCpj7D6K2ksrRCTmKRLEpnPvWDiLPfoGyhZ++8YtiK9d/3DBKPJgry359X/P1PfruyYwvnvwFjuEiEIg==}
     dependencies:
@@ -1437,6 +1456,15 @@ packages:
       signal-exit: 4.1.0
     dev: true
 
+  /fs-extra@11.2.0:
+    resolution: {integrity: sha512-PmDi3uwK5nFuXh7XDTlVnS17xJS7vW36is2+w3xcv8SVxiB4NyATf4ctkVY5bkSjX0Y4nbvZCq1/EjtEyr9ktw==}
+    engines: {node: '>=14.14'}
+    dependencies:
+      graceful-fs: 4.2.11
+      jsonfile: 6.1.0
+      universalify: 2.0.1
+    dev: true
+
   /fs-extra@7.0.1:
     resolution: {integrity: sha512-YJDaCJZEnBmcbw13fvdAM9AwNOJwOzrE4pqMqBq5nFiEqXUqHwlK4B+3pUw6JNvfSPtX05xFHtYy/1ni01eGCw==}
     engines: {node: '>=6 <7 || >=8'}
@@ -1982,6 +2010,14 @@ packages:
       graceful-fs: 4.2.11
     dev: true
 
+  /jsonfile@6.1.0:
+    resolution: {integrity: sha512-5dgndWOriYSm5cnYaJNhalLNDKOqFwyDB/rr1E9ZsGciGvKPs8R2xYGCacuf3z6K1YKDz182fd+fY3cn3pMqXQ==}
+    dependencies:
+      universalify: 2.0.1
+    optionalDependencies:
+      graceful-fs: 4.2.11
+    dev: true
+
   /keyv@4.5.4:
     resolution: {integrity: sha512-oxVHkHR/EJf2CNXnWxRLW6mg7JyCCUcG0DtEGmL2ctUo1PNTin1PUil+r/+4r5MpVgC/fn1kjsx7mjSujKqIpw==}
     dependencies:
@@ -3185,6 +3221,11 @@ packages:
     engines: {node: '>= 4.0.0'}
     dev: true
 
+  /universalify@2.0.1:
+    resolution: {integrity: sha512-gptHNQghINnc/vTGIk0SOFGFNXw7JVrlRUtConJRlvaw6DuX0wO5Jeko9sWrMBhh+PsYAZ7oXAiOnf/UKogyiw==}
+    engines: {node: '>= 10.0.0'}
+    dev: true
+
   /update-check@1.5.4:
     resolution: {integrity: sha512-5YHsflzHP4t1G+8WGPlvKbJEbAJGCgw+Em+dGR1KmBUbr1J36SJBqlHLjR7oob7sco5hWHGQVcr9B2poIVDDTQ==}
     dependencies:
diff --git a/questions.ts b/questions.ts
index 0651f3d1..6fc06da0 100644
--- a/questions.ts
+++ b/questions.ts
@@ -8,10 +8,9 @@ import { blue, green, red } from "picocolors";
 import prompts from "prompts";
 import { InstallAppArgs } from "./create-app";
 import {
-  FileSourceConfig,
+  TemplateDataSource,
   TemplateDataSourceType,
   TemplateFramework,
-  WebSourceConfig,
 } from "./helpers";
 import { COMMUNITY_OWNER, COMMUNITY_REPO } from "./helpers/constant";
 import { templatesDir } from "./helpers/dir";
@@ -26,7 +25,6 @@ export type QuestionArgs = Omit<
   "appPath" | "packageManager"
 > & {
   files?: string;
-  llamaParse?: boolean;
   listServerModels?: boolean;
 };
 const supportedContextFileTypes = [
@@ -78,15 +76,13 @@ const defaults: QuestionArgs = {
   frontend: false,
   openAiKey: "",
   llamaCloudKey: "",
+  useLlamaParse: false,
   model: "gpt-3.5-turbo",
   embeddingModel: "text-embedding-ada-002",
   communityProjectConfig: undefined,
   llamapack: "",
   postInstallAction: "dependencies",
-  dataSource: {
-    type: "none",
-    config: {},
-  },
+  dataSources: [],
   tools: [],
 };
 
@@ -124,27 +120,42 @@ const getVectorDbChoices = (framework: TemplateFramework) => {
   return displayedChoices;
 };
 
-const getDataSourceChoices = (framework: TemplateFramework) => {
-  const choices = [
-    {
-      title: "No data, just a simple chat",
-      value: "simple",
-    },
-    { title: "Use an example PDF", value: "exampleFile" },
-  ];
-  if (process.platform === "win32" || process.platform === "darwin") {
+export const getDataSourceChoices = (
+  framework: TemplateFramework,
+  selectedDataSource: TemplateDataSource[],
+) => {
+  const choices = [];
+  if (selectedDataSource.length > 0) {
     choices.push({
-      title: `Use local files (${supportedContextFileTypes.join(", ")})`,
-      value: "localFile",
+      title: "No",
+      value: "no",
+    });
+  }
+  if (selectedDataSource === undefined || selectedDataSource.length === 0) {
+    choices.push({
+      title: "No data, just a simple chat",
+      value: "none",
     });
     choices.push({
+      title: "Use an example PDF",
+      value: "exampleFile",
+    });
+  }
+
+  choices.push(
+    {
+      title: `Use local files (${supportedContextFileTypes.join(", ")})`,
+      value: "file",
+    },
+    {
       title:
         process.platform === "win32"
           ? "Use a local folder"
           : "Use local folders",
-      value: "localFolder",
-    });
-  }
+      value: "folder",
+    },
+  );
+
   if (framework === "fastapi") {
     choices.push({
       title: "Use website content (requires Chrome)",
@@ -182,9 +193,10 @@ const selectLocalContextData = async (type: TemplateDataSourceType) => {
       process.platform === "win32"
         ? selectedPath.split("\r\n")
         : selectedPath.split(", ");
+
     for (const p of paths) {
       if (
-        type == "file" &&
+        fs.statSync(p).isFile() &&
         !supportedContextFileTypes.includes(path.extname(p))
       ) {
         console.log(
@@ -320,9 +332,7 @@ export const askQuestions = async (
         const openAiKeyConfigured =
           program.openAiKey || process.env["OPENAI_API_KEY"];
         // If using LlamaParse, require LlamaCloud API key
-        const llamaCloudKeyConfigured = (
-          program.dataSource?.config as FileSourceConfig
-        )?.useLlamaParse
+        const llamaCloudKeyConfigured = program.useLlamaParse
           ? program.llamaCloudKey || process.env["LLAMA_CLOUD_API_KEY"]
           : true;
         const hasVectorDb = program.vectorDb && program.vectorDb !== "none";
@@ -620,127 +630,149 @@ export const askQuestions = async (
 
   if (program.files) {
     // If user specified files option, then the program should use context engine
-    program.engine == "context";
-    if (!fs.existsSync(program.files)) {
-      console.log("File or folder not found");
-      process.exit(1);
-    } else {
-      program.dataSource = {
-        type: fs.lstatSync(program.files).isDirectory() ? "folder" : "file",
+    program.engine = "context";
+    program.files.split(",").forEach((filePath) => {
+      program.dataSources.push({
+        type: "file",
         config: {
-          paths: program.files.split(","),
+          path: filePath,
         },
-      };
-    }
+      });
+    });
   }
 
   if (!program.engine) {
     if (ciInfo.isCI) {
       program.engine = getPrefOrDefault("engine");
+      program.dataSources = getPrefOrDefault("dataSources");
     } else {
-      const { dataSource } = await prompts(
-        {
-          type: "select",
-          name: "dataSource",
-          message: "Which data source would you like to use?",
-          choices: getDataSourceChoices(program.framework),
-          initial: 1,
-        },
-        handlers,
-      );
-      // Initialize with default config
-      program.dataSource = getPrefOrDefault("dataSource");
-      if (program.dataSource) {
-        switch (dataSource) {
-          case "simple":
-            program.engine = "simple";
-            program.dataSource = { type: "none", config: {} };
-            break;
-          case "exampleFile":
-            program.engine = "context";
-            // Treat example as a folder data source with no config
-            program.dataSource = { type: "folder", config: {} };
-            break;
-          case "localFile":
-            program.engine = "context";
-            program.dataSource = {
+      program.dataSources = [];
+      while (true) {
+        const { selectedSource } = await prompts(
+          {
+            type: "select",
+            name: "selectedSource",
+            message:
+              program.dataSources.length === 0
+                ? "Which data source would you like to use?"
+                : "Would you like to add another data source?",
+            choices: getDataSourceChoices(
+              program.framework,
+              program.dataSources,
+            ),
+            initial: 0,
+          },
+          handlers,
+        );
+
+        if (selectedSource === "no") {
+          break;
+        }
+
+        if (selectedSource === "none") {
+          // Selected simple chat
+          program.dataSources = [];
+          // Stop asking for another data source
+          break;
+        }
+
+        if (selectedSource === "exampleFile") {
+          program.dataSources.push({
+            type: "file",
+            config: {},
+          });
+        } else if (selectedSource === "file" || selectedSource === "folder") {
+          // Select local data source
+          const selectedPaths = await selectLocalContextData(selectedSource);
+          for (const p of selectedPaths) {
+            program.dataSources.push({
               type: "file",
               config: {
-                paths: await selectLocalContextData("file"),
+                path: p,
               },
-            };
-            break;
-          case "localFolder":
-            program.engine = "context";
-            program.dataSource = {
-              type: "folder",
-              config: {
-                paths: await selectLocalContextData("folder"),
+            });
+          }
+        } else if (selectedSource === "web") {
+          // Selected web data source
+          const { baseUrl } = await prompts(
+            {
+              type: "text",
+              name: "baseUrl",
+              message: "Please provide base URL of the website: ",
+              initial: "https://www.llamaindex.ai",
+              validate: (value: string) => {
+                if (!value.includes("://")) {
+                  value = `https://${value}`;
+                }
+                const urlObj = new URL(value);
+                if (
+                  urlObj.protocol !== "https:" &&
+                  urlObj.protocol !== "http:"
+                ) {
+                  return `URL=${value} has invalid protocol, only allow http or https`;
+                }
+                return true;
               },
-            };
-            break;
-          case "web":
-            program.engine = "context";
-            program.dataSource.type = "web";
-            break;
+            },
+            handlers,
+          );
+
+          program.dataSources.push({
+            type: "web",
+            config: {
+              baseUrl,
+              prefix: baseUrl,
+              depth: 1,
+            },
+          });
         }
       }
+
+      if (program.dataSources.length === 0) {
+        program.engine = "simple";
+      } else {
+        program.engine = "context";
+      }
     }
-  } else if (!program.dataSource) {
+  } else if (!program.dataSources) {
     // Handle a case when engine is specified but dataSource is not
     if (program.engine === "context") {
-      program.dataSource = {
-        type: "folder",
-        config: {},
-      };
+      program.dataSources = [
+        {
+          type: "file",
+          config: {},
+        },
+      ];
     } else if (program.engine === "simple") {
-      program.dataSource = {
-        type: "none",
-        config: {},
-      };
+      program.dataSources = [];
     }
   }
 
+  // Asking for LlamaParse if user selected file or folder data source
   if (
-    program.dataSource?.type === "file" ||
-    program.dataSource?.type === "folder"
+    program.dataSources.some((ds) => ds.type === "file") &&
+    !program.useLlamaParse
   ) {
     if (ciInfo.isCI) {
+      program.useLlamaParse = getPrefOrDefault("useLlamaParse");
       program.llamaCloudKey = getPrefOrDefault("llamaCloudKey");
     } else {
-      const dataSourceConfig = program.dataSource.config as FileSourceConfig;
-      dataSourceConfig.useLlamaParse = program.llamaParse;
-
-      // Is pdf file selected as data source or is it a folder data source
-      const askingLlamaParse =
-        dataSourceConfig.useLlamaParse === undefined &&
-        (program.dataSource.type === "folder" ||
-          (program.dataSource.type === "file" &&
-            dataSourceConfig.paths?.some((p) => path.extname(p) === ".pdf")));
-
-      // Ask if user wants to use LlamaParse
-      if (askingLlamaParse) {
-        const { useLlamaParse } = await prompts(
-          {
-            type: "toggle",
-            name: "useLlamaParse",
-            message:
-              "Would you like to use LlamaParse (improved parser for RAG - requires API key)?",
-            initial: true,
-            active: "yes",
-            inactive: "no",
-          },
-          handlers,
-        );
-        dataSourceConfig.useLlamaParse = useLlamaParse;
-        program.dataSource.config = dataSourceConfig;
-      }
+      const { useLlamaParse } = await prompts(
+        {
+          type: "toggle",
+          name: "useLlamaParse",
+          message:
+            "Would you like to use LlamaParse (improved parser for RAG - requires API key)?",
+          initial: true,
+          active: "yes",
+          inactive: "no",
+        },
+        handlers,
+      );
+      program.useLlamaParse = useLlamaParse;
 
       // Ask for LlamaCloud API key
-      if (
-        dataSourceConfig.useLlamaParse &&
-        program.llamaCloudKey === undefined
-      ) {
+      if (useLlamaParse && program.llamaCloudKey === undefined) {
         const { llamaCloudKey } = await prompts(
           {
             type: "text",
@@ -755,56 +787,6 @@ export const askQuestions = async (
     }
   }
 
-  if (program.dataSource?.type === "web" && program.framework === "fastapi") {
-    program.dataSource.config = [];
-
-    while (true) {
-      const questions: any[] = [
-        {
-          type: "text",
-          name: "baseUrl",
-          message: "Please provide base URL of the website: ",
-          initial: "https://www.llamaindex.ai",
-          validate: (value: string) => {
-            if (!value.includes("://")) {
-              value = `https://${value}`;
-            }
-            const urlObj = new URL(value);
-            if (urlObj.protocol !== "https:" && urlObj.protocol !== "http:") {
-              return `URL=${value} has invalid protocol, only allow http or https`;
-            }
-            // Check duplicated URL
-            if (
-              (program.dataSource?.config as WebSourceConfig[]).some(
-                (c) => c.baseUrl === value,
-              )
-            ) {
-              return `URL=${value} is already added. Please provide a different URL.`;
-            }
-            return true;
-          },
-        },
-        {
-          type: "toggle",
-          name: "shouldContinue",
-          message: "Would you like to add another website?",
-          initial: false,
-          active: "Yes",
-          inactive: "No",
-        },
-      ];
-      let { shouldContinue, baseUrl } = await prompts(questions, handlers);
-      program.dataSource.config.push({
-        baseUrl: baseUrl,
-        prefix: baseUrl,
-        depth: 1,
-      });
-      if (!shouldContinue) {
-        break;
-      }
-    }
-  }
-
   if (program.engine !== "simple" && !program.vectorDb) {
     if (ciInfo.isCI) {
       program.vectorDb = getPrefOrDefault("vectorDb");
diff --git a/templates/components/loaders/python/__init__.py b/templates/components/loaders/python/__init__.py
new file mode 100644
index 00000000..b8c0f5a1
--- /dev/null
+++ b/templates/components/loaders/python/__init__.py
@@ -0,0 +1,33 @@
+import os
+import json
+import importlib
+import logging
+from typing import Dict
+from app.engine.loaders.file import FileLoaderConfig, get_file_documents
+from app.engine.loaders.web import WebLoaderConfig, get_web_documents
+
+logger = logging.getLogger(__name__)
+
+
+def load_configs():
+    with open("config/loaders.json") as f:
+        configs = json.load(f)
+    return configs
+
+
+def get_documents():
+    documents = []
+    config = load_configs()
+    for loader_type, loader_config in config.items():
+        logger.info(
+            f"Loading documents from loader: {loader_type}, config: {loader_config}"
+        )
+        if loader_type == "file":
+            document = get_file_documents(FileLoaderConfig(**loader_config))
+            documents.extend(document)
+        elif loader_type == "web":
+            for entry in loader_config:
+                document = get_web_documents(WebLoaderConfig(**entry))
+                documents.extend(document)
+
+    return documents
diff --git a/templates/components/loaders/python/file.py b/templates/components/loaders/python/file.py
new file mode 100644
index 00000000..a814b0d0
--- /dev/null
+++ b/templates/components/loaders/python/file.py
@@ -0,0 +1,37 @@
+import os
+from llama_parse import LlamaParse
+from pydantic import BaseModel, validator
+
+
+class FileLoaderConfig(BaseModel):
+    data_dir: str = "data"
+    use_llama_parse: bool = False
+
+    @validator("data_dir")
+    def data_dir_must_exist(cls, v):
+        if not os.path.isdir(v):
+            raise ValueError(f"Directory '{v}' does not exist")
+        return v
+
+
+def llama_parse_parser():
+    if os.getenv("LLAMA_CLOUD_API_KEY") is None:
+        raise ValueError(
+            "LLAMA_CLOUD_API_KEY environment variable is not set. "
+            "Please set it in .env file or in your shell environment then run again!"
+        )
+    parser = LlamaParse(result_type="markdown", verbose=True, language="en")
+    return parser
+
+
+def get_file_documents(config: FileLoaderConfig):
+    from llama_index.core.readers import SimpleDirectoryReader
+
+    reader = SimpleDirectoryReader(
+        config.data_dir,
+        recursive=True,
+    )
+    if config.use_llama_parse:
+        parser = llama_parse_parser()
+        reader.file_extractor = {".pdf": parser}
+    return reader.load_data()
diff --git a/templates/components/loaders/python/file/loader.py b/templates/components/loaders/python/file/loader.py
deleted file mode 100644
index 40923709..00000000
--- a/templates/components/loaders/python/file/loader.py
+++ /dev/null
@@ -1,10 +0,0 @@
-from llama_index.core.readers import SimpleDirectoryReader
-
-DATA_DIR = "data"  # directory containing the documents
-
-
-def get_documents():
-    return SimpleDirectoryReader(
-        DATA_DIR,
-        recursive=True,
-    ).load_data()
diff --git a/templates/components/loaders/python/llama_parse/loader.py b/templates/components/loaders/python/llama_parse/loader.py
deleted file mode 100644
index efaf3421..00000000
--- a/templates/components/loaders/python/llama_parse/loader.py
+++ /dev/null
@@ -1,19 +0,0 @@
-import os
-from llama_parse import LlamaParse
-from llama_index.core import SimpleDirectoryReader
-
-DATA_DIR = "data"  # directory containing the documents
-
-
-def get_documents():
-    if os.getenv("LLAMA_CLOUD_API_KEY") is None:
-        raise ValueError(
-            "LLAMA_CLOUD_API_KEY environment variable is not set. "
-            "Please set it in .env file or in your shell environment then run again!"
-        )
-    parser = LlamaParse(result_type="markdown", verbose=True, language="en")
-
-    reader = SimpleDirectoryReader(
-        DATA_DIR, recursive=True, file_extractor={".pdf": parser}
-    )
-    return reader.load_data()
diff --git a/templates/components/loaders/python/web.py b/templates/components/loaders/python/web.py
new file mode 100644
index 00000000..bca9aaf7
--- /dev/null
+++ b/templates/components/loaders/python/web.py
@@ -0,0 +1,19 @@
+import os
+import json
+from pydantic import BaseModel, Field
+
+
+class WebLoaderConfig(BaseModel):
+    base_url: str
+    prefix: str
+    max_depth: int = Field(default=1, ge=0)
+
+
+def get_web_documents(config: WebLoaderConfig):
+    from llama_index.readers.web import WholeSiteReader
+
+    scraper = WholeSiteReader(
+        prefix=config.prefix,
+        max_depth=config.max_depth,
+    )
+    return scraper.load_data(config.base_url)
diff --git a/templates/components/loaders/python/web/loader.py b/templates/components/loaders/python/web/loader.py
deleted file mode 100644
index 096e3c97..00000000
--- a/templates/components/loaders/python/web/loader.py
+++ /dev/null
@@ -1,31 +0,0 @@
-import os
-import json
-from pydantic import BaseModel, Field
-from llama_index.readers.web import WholeSiteReader
-
-
-class WebLoaderConfig(BaseModel):
-    base_url: str
-    prefix: str
-    max_depth: int = Field(default=1, ge=0)
-
-
-def load_configs():
-    with open("config/loaders.json") as f:
-        configs = json.load(f)
-    web_config = configs.get("web", None)
-    if web_config is None:
-        raise ValueError("No web config found in loaders.json")
-    return [WebLoaderConfig(**config) for config in web_config]
-
-
-def get_documents():
-    web_config = load_configs()
-    documents = []
-    for entry in web_config:
-        scraper = WholeSiteReader(
-            prefix=entry.prefix,
-            max_depth=entry.max_depth,
-        )
-        documents.extend(scraper.load_data(entry.base_url))
-    return documents
diff --git a/templates/components/vectordbs/python/milvus/generate.py b/templates/components/vectordbs/python/milvus/generate.py
index b980d9f8..69ee4899 100644
--- a/templates/components/vectordbs/python/milvus/generate.py
+++ b/templates/components/vectordbs/python/milvus/generate.py
@@ -8,7 +8,7 @@
 from llama_index.core.indices import VectorStoreIndex
 from llama_index.vector_stores.milvus import MilvusVectorStore
 from app.settings import init_settings
-from app.engine.loader import get_documents
+from app.engine.loaders import get_documents
 
 logging.basicConfig(level=logging.INFO)
 logger = logging.getLogger()
diff --git a/templates/components/vectordbs/python/mongo/generate.py b/templates/components/vectordbs/python/mongo/generate.py
index 69d52071..ddc32c5a 100644
--- a/templates/components/vectordbs/python/mongo/generate.py
+++ b/templates/components/vectordbs/python/mongo/generate.py
@@ -8,7 +8,7 @@
 from llama_index.core.indices import VectorStoreIndex
 from llama_index.vector_stores.mongodb import MongoDBAtlasVectorSearch
 from app.settings import init_settings
-from app.engine.loader import get_documents
+from app.engine.loaders import get_documents
 
 logging.basicConfig(level=logging.INFO)
 logger = logging.getLogger()
diff --git a/templates/components/vectordbs/python/none/generate.py b/templates/components/vectordbs/python/none/generate.py
index 3c8055f3..78fe57be 100644
--- a/templates/components/vectordbs/python/none/generate.py
+++ b/templates/components/vectordbs/python/none/generate.py
@@ -7,7 +7,7 @@
     VectorStoreIndex,
 )
 from app.engine.constants import STORAGE_DIR
-from app.engine.loader import get_documents
+from app.engine.loaders import get_documents
 from app.settings import init_settings
 
 
diff --git a/templates/components/vectordbs/python/pg/generate.py b/templates/components/vectordbs/python/pg/generate.py
index 608beb2e..5cc93244 100644
--- a/templates/components/vectordbs/python/pg/generate.py
+++ b/templates/components/vectordbs/python/pg/generate.py
@@ -6,7 +6,7 @@
 from llama_index.core.indices import VectorStoreIndex
 from llama_index.core.storage import StorageContext
 
-from app.engine.loader import get_documents
+from app.engine.loaders import get_documents
 from app.settings import init_settings
 from app.engine.utils import init_pg_vector_store_from_env
 
diff --git a/templates/components/vectordbs/python/pinecone/generate.py b/templates/components/vectordbs/python/pinecone/generate.py
index 4e14648b..c7ad55ea 100644
--- a/templates/components/vectordbs/python/pinecone/generate.py
+++ b/templates/components/vectordbs/python/pinecone/generate.py
@@ -8,7 +8,7 @@
 from llama_index.core.indices import VectorStoreIndex
 from llama_index.vector_stores.pinecone import PineconeVectorStore
 from app.settings import init_settings
-from app.engine.loader import get_documents
+from app.engine.loaders import get_documents
 
 logging.basicConfig(level=logging.INFO)
 logger = logging.getLogger()