diff --git a/scripts/setup-environment.ps1 b/scripts/setup-environment.ps1
index 38b0fec..b949b29 100644
--- a/scripts/setup-environment.ps1
+++ b/scripts/setup-environment.ps1
@@ -11,13 +11,27 @@ function Initialize-PowerShellEnvironment {
 function Initialize-GenerateTools {
     Write-Host "Initializing Node.js dependencies..." -ForegroundColor Yellow
 
-    Push-Location -StackName NodeTools (Join-Path $PSScriptRoot "../scripts/")
+    Push-Location -StackName NodeTools (Join-Path $PSScriptRoot "../tools/")
 
-    # Install Node.js dependencies
-    & npm install
-    if ($LASTEXITCODE -ne 0) {
-        Write-Error "npm install failed with exit code $LASTEXITCODE."
-        exit 1
+    Get-childitem -Path . -Directory | ForEach-Object {
+        Write-Host "Initializing $($_.Name)..." -ForegroundColor Cyan
+
+        Push-Location -StackName NodeTools $_.FullName
+        try {
+            # Install Node.js dependencies
+            & npm install
+            if ($LASTEXITCODE -ne 0) {
+                Write-Error "npm install failed with exit code $LASTEXITCODE."
+                exit 1
+            }
+        }
+        catch {
+            Write-Error "npm install failed for $($_.Name): $_"
+            exit 1
+        }
+        finally {
+            Pop-Location -StackName NodeTools
+        }
     }
 
     Pop-Location -StackName NodeTools