diff --git a/cecli/tools/ls.py b/cecli/tools/ls.py
index 9a9ed276340..443f74acd67 100644
--- a/cecli/tools/ls.py
+++ b/cecli/tools/ls.py
@@ -11,67 +11,78 @@ class Tool(BaseTool):
     SCHEMA = {
         "type": "function",
         "function": {
-            "name": "Ls",
-            "description": "List files in a directory.",
+            "name": "ls",
+            "description": "List files in a directory. Paths are relative to the project root.",
             "parameters": {
                 "type": "object",
                 "properties": {
-                    "directory": {
+                    "path": {
                         "type": "string",
-                        "description": "The directory to list.",
-                    },
+                        "description": (
+                            "The path of the directory to list, relative to the project root. "
+                            "Defaults to the project root."
+                        ),
+                        "default": ".",
+                    }
                 },
-                "required": ["directory"],
+                "required": [],
             },
         },
     }
 
     @classmethod
-    def execute(cls, coder, dir_path=None, directory=None, **kwargs):
-        # Handle both positional and keyword arguments for backward compatibility
-        if dir_path is None and directory is not None:
-            dir_path = directory
-        elif dir_path is None:
-            return "Error: Missing directory parameter"
+    def execute(cls, coder, path=None, directory=None, **kwargs):
         """
         List files in directory and optionally add some to context.
 
         This provides information about the structure of the codebase,
         similar to how a developer would explore directories.
         """
+        # Handle both positional and keyword arguments for backward compatibility
+        dir_path = path or directory or "."
+
         try:
-            # Make the path relative to root if it's absolute
-            if dir_path.startswith("/"):
-                rel_dir = os.path.relpath(dir_path, coder.root)
-            else:
-                rel_dir = dir_path
+            # Create an absolute path from the provided relative path
+            abs_path = os.path.abspath(os.path.join(coder.root, dir_path))
 
-            # Get absolute path
-            abs_dir = coder.abs_root_path(rel_dir)
+            # Security check: ensure the resolved path is within the project root
+            if not abs_path.startswith(os.path.abspath(coder.root)):
+                coder.io.tool_error(
+                    f"Error: Path '{dir_path}' attempts to access files outside the project root."
+                )
+                return "Error: Path is outside the project root."
 
             # Check if path exists
-            if not os.path.exists(abs_dir):
-                coder.io.tool_output(f"⚠️ Directory '{dir_path}' not found")
+            if not os.path.exists(abs_path):
+                coder.io.tool_output(f"⚠️ Path '{dir_path}' not found")
                 return "Directory not found"
 
             # Get directory contents
             contents = []
-            try:
-                with os.scandir(abs_dir) as entries:
-                    for entry in entries:
-                        if entry.is_file() and not entry.name.startswith("."):
-                            rel_path = os.path.join(rel_dir, entry.name)
-                            contents.append(rel_path)
-            except NotADirectoryError:
-                # If it's a file, just return the file
-                contents = [rel_dir]
+            if os.path.isdir(abs_path):
+                # It's a directory, list its contents
+                try:
+                    with os.scandir(abs_path) as entries:
+                        for entry in entries:
+                            if entry.is_file() and not entry.name.startswith("."):
+                                rel_path = os.path.relpath(entry.path, coder.root)
+                                contents.append(rel_path)
+                except OSError as e:
+                    coder.io.tool_error(f"Error listing directory '{dir_path}': {e}")
+                    return f"Error: {e}"
+            elif os.path.isfile(abs_path):
+                # It's a file, just return its relative path
+                contents.append(os.path.relpath(abs_path, coder.root))
 
             if contents:
                 coder.io.tool_output(f"📋 Listed {len(contents)} file(s) in '{dir_path}'")
-                if len(contents) > 10:
-                    return f"Found {len(contents)} files: {', '.join(contents[:10])}..."
+                sorted_contents = sorted(contents)
+                if len(sorted_contents) > 10:
+                    return (
+                        f"Found {len(sorted_contents)} files: {', '.join(sorted_contents[:10])}..."
+                    )
                 else:
-                    return f"Found {len(contents)} files: {', '.join(contents)}"
+                    return f"Found {len(sorted_contents)} files: {', '.join(sorted_contents)}"
             else:
                 coder.io.tool_output(f"📋 No files found in '{dir_path}'")
                 return "No files found in directory"