diff --git a/src/commands/new.ts b/src/commands/new.ts
index 2cbee53..ce02bd3 100644
--- a/src/commands/new.ts
+++ b/src/commands/new.ts
@@ -96,13 +96,20 @@ export async function action(
     die(`Session "${branch}" already exists. Use "sandlot open ${branch}" to re-enter it.`)
   }
 
-  const branchExisted = await git.branchExists(branch, root)
   const spin = spinner("Creating worktree", branch)
+  let branchCreated = false
   try {
+<<<<<<< HEAD
     await git.createWorktree(branch, worktreeAbs, root)
     const symlinkPath = join(root, '.sandlot', branch)
     await mkdir(dirname(symlinkPath), { recursive: true })
     await symlink(worktreeAbs, symlinkPath)
+=======
+    const wt = await git.createWorktree(branch, worktreeAbs, root)
+    branchCreated = wt.branchCreated
+    await mkdir(join(root, '.sandlot'), { recursive: true })
+    await symlink(worktreeAbs, join(root, '.sandlot', branch))
+>>>>>>> 597eb97 (Track branch creation to avoid deleting pre-existing branches)
 
     spin.text = "Starting container"
     await vm.ensure((msg) => { spin.text = msg })
@@ -110,8 +117,13 @@ export async function action(
   } catch (err) {
     spin.fail(String((err as Error).message ?? err))
     await git.removeWorktree(worktreeAbs, root).catch(() => {})
+<<<<<<< HEAD
     await git.deleteLocalBranch(branch, root).catch(() => {})
     await unlinkSessionSymlink(root, branch)
+=======
+    if (branchCreated) await git.deleteLocalBranch(branch, root).catch(() => {})
+    await unlink(join(root, '.sandlot', branch)).catch(() => {})
+>>>>>>> 597eb97 (Track branch creation to avoid deleting pre-existing branches)
     process.exit(1)
   }
 
diff --git a/src/git.ts b/src/git.ts
index 9a11c51..77b4a57 100644
--- a/src/git.ts
+++ b/src/git.ts
@@ -36,7 +36,7 @@ export async function branchExists(branch: string, cwd?: string, opts?: { fetch?
 }
 
 /** Create a worktree for the given branch. */
-export async function createWorktree(branch: string, worktreePath: string, cwd: string): Promise<void> {
+export async function createWorktree(branch: string, worktreePath: string, cwd: string): Promise<{ branchCreated: boolean }> {
   // Clean up stale worktree path if it exists
   if (existsSync(worktreePath)) {
     await $`git worktree remove ${worktreePath} --force`.cwd(cwd).nothrow().quiet()
@@ -70,6 +70,7 @@ export async function createWorktree(branch: string, worktreePath: string, cwd:
     if (switchedFromBranch) await checkout(branch, cwd).catch(() => {})
     throw new Error(`Failed to create worktree for "${branch}": ${result.stderr.toString().trim()}`)
   }
+  return { branchCreated: exists !== "local" }
 }
 
 /** Remove a worktree. Silently succeeds if the worktree is already gone. */