diff --git a/.changeset/sharp-eggs-poke.md b/.changeset/sharp-eggs-poke.md
new file mode 100644
index 0000000..cc6ae22
--- /dev/null
+++ b/.changeset/sharp-eggs-poke.md
@@ -0,0 +1,5 @@
+---
+'@emigrate/cli': minor
+---
+
+BREAKING CHANGE: Rename the `extension` short CLI option from `-e` to `-x` in preparation for an upcoming option that will take its place
diff --git a/README.md b/README.md
index 85dfe0d..d494410 100644
--- a/README.md
+++ b/README.md
@@ -44,13 +44,13 @@ bun add @emigrate/cli
 Create a new migration:
 
 ```bash
-npx emigrate new -d migrations -e .js create some fancy table
+npx emigrate new -d migrations create some fancy table
 # or
-pnpm emigrate new -d migrations -e .js create some fancy table
+pnpm emigrate new -d migrations create some fancy table
 # or
-yarn emigrate new -d migrations -e .js create some fancy table
+yarn emigrate new -d migrations create some fancy table
 # or
-bunx --bun emigrate new -d migrations -e .js create some fancy table
+bunx --bun emigrate new -d migrations create some fancy table
 ```
 
 Will create a new empty JavaScript migration file with the name "YYYYMMDDHHmmssuuu_create_some_fancy_table.js" in the `migrations` directory.
diff --git a/docs/src/content/docs/commands/new.mdx b/docs/src/content/docs/commands/new.mdx
index 0c0721d..671b918 100644
--- a/docs/src/content/docs/commands/new.mdx
+++ b/docs/src/content/docs/commands/new.mdx
@@ -74,12 +74,16 @@ The directory where the migration files are located. The given path should be ab
 
 The template file to use for generating the migration file. The given path should be absolute or relative to the current working directory.
 
-The template can contain a `{{name}}` placeholder which will be replaced with the migration name provided to the command. The generated file will have the same extension as the template file, unless the [`--extension`](#-e---extension-ext) option is used.
+The template can contain a `{{name}}` placeholder which will be replaced with the migration name provided to the command. The generated file will have the same extension as the template file, unless the [`--extension`](#-x---extension-ext) option is used.
 
-### `-e`, `--extension <ext>`
+### `-x`, `--extension <ext>`
 
 The extension to use for the migration file. Unless the [`--template`](#-t---template-path) option is also specified the file will be empty.
 
+If both the `--template` and `--extension` options are specified, the extension will override the template file extension.
+
+**Example:** `--extension .sql` will generate a file with the `.sql` extension.
+
 ### `-p`, `--plugin <name>`
 
 The <Link href="/plugins/generators">generator plugin</Link> to use. The generator plugin is responsible for generating the migration filename and its contents.
diff --git a/packages/cli/README.md b/packages/cli/README.md
index 8c84c57..19f8c42 100644
--- a/packages/cli/README.md
+++ b/packages/cli/README.md
@@ -2,6 +2,8 @@
 
 Emigrate is a tool for managing database migrations. It is designed to be simple yet support advanced setups, modular and extensible.
 
+📖 Read the [documentation](https://emigrate.dev) for more information!
+
 ## Installation
 
 Install the Emigrate CLI in your project:
@@ -21,7 +23,13 @@ bun add @emigrate/cli
 Create a new migration:
 
 ```bash
-emigrate new -d migrations -e .js create some fancy table
+npx emigrate new -d migrations create some fancy table
+# or
+pnpm emigrate new -d migrations create some fancy table
+# or
+yarn emigrate new -d migrations create some fancy table
+# or
+bunx --bun emigrate new -d migrations create some fancy table
 ```
 
 Will create a new empty JavaScript migration file with the name "YYYYMMDDHHmmssuuu_create_some_fancy_table.js" in the `migrations` directory.
diff --git a/packages/cli/src/cli.ts b/packages/cli/src/cli.ts
index 4ad8ace..ca31f55 100644
--- a/packages/cli/src/cli.ts
+++ b/packages/cli/src/cli.ts
@@ -123,7 +123,7 @@ const newMigration: Action = async (args) => {
       },
       extension: {
         type: 'string',
-        short: 'e',
+        short: 'x',
       },
       plugin: {
         type: 'string',
@@ -157,7 +157,7 @@ Options:
   -p, --plugin      The plugin(s) to use (can be specified multiple times)
   -t, --template    A template file to use as contents for the new migration file
                     (if the extension option is not provided the template file's extension will be used)
-  -e, --extension   The extension to use for the new migration file
+  -x, --extension   The extension to use for the new migration file
                     (if no template or plugin is provided an empty migration file will be created with the given extension)
   --color           Force color output (this option is passed to the reporter)
   --no-color        Disable color output (this option is passed to the reporter)
@@ -168,8 +168,8 @@ Examples:
 
   emigrate new -d src/migrations -t migration-template.js create users table
   emigrate new --directory ./migrations --plugin @emigrate/postgres create_users_table
-  emigrate new -d ./migrations -e .sql create_users_table
-  emigrate new -d ./migrations -t .migration-template -e .sql "drop some table"
+  emigrate new -d ./migrations -x .sql create_users_table
+  emigrate new -d ./migrations -t .migration-template -x .sql "drop some table"
 `;
 
   if (values.help) {