diff --git a/readme.md b/readme.md
index 373a1dd..bae4add 100644
--- a/readme.md
+++ b/readme.md
@@ -16,6 +16,7 @@ A blazingly fast tool for peeking at codebases. Perfect for loading your codebas
 - 🔗 Web content processing with Markdown conversion
 - 📦 Git repository support
 - 🌐 URL traversal with configurable depth
+- 🏷️ XML output format for better LLM compatibility
 
 ## Installation
 
@@ -115,6 +116,9 @@ glimpse --config_path
 
 # Initialize a .glimpse config file in the current directory
 glimpse --config
+
+# Output in XML format for better LLM compatibility
+glimpse -x /path/to/project
 ```
 
 ## CLI Options
@@ -146,6 +150,7 @@ Options:
       --traverse-links             Traverse links when processing URLs
       --link-depth <DEPTH>         Maximum depth to traverse links (default: 1)
       --pdf <PATH>                 Save output as PDF
+  -x, --xml                        Output in XML format for better LLM compatibility
   -h, --help                       Print help
   -V, --version                    Print version
 ```
@@ -179,6 +184,60 @@ default_excludes = [
 ]
 ```
 
+## XML Output Format
+
+Glimpse supports XML output format designed for better compatibility with Large Language Models (LLMs) like Claude, GPT, and others. When using the `-x` or `--xml` flag, the output is structured with clear XML tags that help LLMs better understand the context and structure of your codebase.
+
+### XML Structure
+
+The XML output wraps all content in a `<context>` tag with the project name:
+
+```xml
+<context name="my_project">
+<tree>
+└── src/
+  └── main.rs
+</tree>
+
+<files>
+<file path="src/main.rs">
+================================================
+fn main() {
+    println!("Hello, World!");
+}
+</file>
+</files>
+
+<summary>
+Total files: 1
+Total size: 45 bytes
+</summary>
+</context>
+```
+
+### Benefits for LLM Usage
+
+- **Clear Context Boundaries**: The `<context>` wrapper helps LLMs understand where your codebase begins and ends
+- **Structured Information**: Separate sections for directory tree, file contents, and summary
+- **Proper Escaping**: XML-safe content that won't confuse parsers
+- **Project Identification**: Automatic project name detection for better context
+
+### Usage Examples
+
+```bash
+# Basic XML output
+glimpse -x /path/to/project
+
+# XML output with file save
+glimpse -x -f project.xml /path/to/project
+
+# XML output to stdout
+glimpse -x --print /path/to/project
+
+# XML output with specific includes
+glimpse -x -i "*.rs,*.py" /path/to/project
+```
+
 ## Token Counting
 
 Glimpse supports two tokenizer backends:
diff --git a/src/analyzer.rs b/src/analyzer.rs
index 9662870..04704e5 100644
--- a/src/analyzer.rs
+++ b/src/analyzer.rs
@@ -41,8 +41,15 @@ pub fn process_directory(args: &Cli) -> Result<()> {
         fs::write(pdf_path, pdf_data)?;
         println!("PDF output written to: {}", pdf_path.display());
     } else {
+        // Determine project name for XML output
+        let project_name = if args.xml {
+            Some(determine_project_name(&args.paths))
+        } else {
+            None
+        };
+
         // Handle output (print/copy/save)
-        let output = generate_output(&entries, output_format)?;
+        let output = generate_output(&entries, output_format, args.xml, project_name)?;
         handle_output(output, args)?;
     }
 
@@ -54,6 +61,33 @@ pub fn process_directory(args: &Cli) -> Result<()> {
     Ok(())
 }
 
+fn determine_project_name(paths: &[String]) -> String {
+    if let Some(first_path) = paths.first() {
+        let path = std::path::Path::new(first_path);
+
+        // If it's a directory, use its name
+        if path.is_dir() {
+            if let Some(name) = path.file_name() {
+                return name.to_string_lossy().to_string();
+            }
+        }
+
+        // If it's a file, use the parent directory name
+        if path.is_file() {
+            if let Some(parent) = path.parent() {
+                if let Some(name) = parent.file_name() {
+                    return name.to_string_lossy().to_string();
+                }
+            }
+        }
+
+        // Fallback to just the path itself
+        first_path.clone()
+    } else {
+        "project".to_string()
+    }
+}
+
 pub fn process_entries(args: &Cli) -> Result<Vec<FileEntry>> {
     let max_size = args.max_size.expect("max_size should be set from config");
     let max_depth = args.max_depth.expect("max_depth should be set from config");
@@ -361,6 +395,7 @@ mod tests {
             pdf: None,
             traverse_links: false,
             link_depth: None,
+            xml: false,
         }
     }
 
diff --git a/src/cli.rs b/src/cli.rs
index 69c216e..5d846fe 100644
--- a/src/cli.rs
+++ b/src/cli.rs
@@ -114,6 +114,10 @@ pub struct Cli {
     /// Maximum depth to traverse sublinks (default: 1)
     #[arg(long)]
     pub link_depth: Option<usize>,
+
+    /// Output in XML format for better LLM compatibility
+    #[arg(short = 'x', long)]
+    pub xml: bool,
 }
 
 impl Cli {
diff --git a/src/output.rs b/src/output.rs
index 7e6fa34..3a12deb 100644
--- a/src/output.rs
+++ b/src/output.rs
@@ -15,37 +15,97 @@ pub struct FileEntry {
     pub size: u64,
 }
 
-pub fn generate_output(entries: &[FileEntry], format: OutputFormat) -> Result<String> {
+pub fn generate_output(
+    entries: &[FileEntry],
+    format: OutputFormat,
+    xml_format: bool,
+    project_name: Option<String>,
+) -> Result<String> {
     let mut output = String::new();
 
+    if xml_format {
+        let project_name = project_name.unwrap_or_else(|| "project".to_string());
+        output.push_str(&format!(
+            "<context name=\"{}\">\n",
+            xml_escape(&project_name)
+        ));
+    }
+
     match format {
         OutputFormat::Tree => {
-            output.push_str("Directory Structure:\n");
+            if xml_format {
+                output.push_str("<tree>\n");
+            } else {
+                output.push_str("Directory Structure:\n");
+            }
             output.push_str(&generate_tree(entries)?);
+            if xml_format {
+                output.push_str("</tree>\n");
+            }
         }
         OutputFormat::Files => {
-            output.push_str("File Contents:\n");
-            output.push_str(&generate_files(entries)?);
+            if xml_format {
+                output.push_str("<files>\n");
+            } else {
+                output.push_str("File Contents:\n");
+            }
+            output.push_str(&generate_files(entries, xml_format)?);
+            if xml_format {
+                output.push_str("</files>\n");
+            }
         }
         OutputFormat::Both => {
-            output.push_str("Directory Structure:\n");
+            if xml_format {
+                output.push_str("<tree>\n");
+            } else {
+                output.push_str("Directory Structure:\n");
+            }
             output.push_str(&generate_tree(entries)?);
-            output.push_str("\nFile Contents:\n");
-            output.push_str(&generate_files(entries)?);
+            if xml_format {
+                output.push_str("</tree>\n\n<files>\n");
+            } else {
+                output.push_str("\nFile Contents:\n");
+            }
+            output.push_str(&generate_files(entries, xml_format)?);
+            if xml_format {
+                output.push_str("</files>\n");
+            }
         }
     }
 
     // Add summary
-    output.push_str("\nSummary:\n");
-    output.push_str(&format!("Total files: {}\n", entries.len()));
-    output.push_str(&format!(
-        "Total size: {} bytes\n",
-        entries.iter().map(|e| e.size).sum::<u64>()
-    ));
+    if xml_format {
+        output.push_str("<summary>\n");
+        output.push_str(&format!("Total files: {}\n", entries.len()));
+        output.push_str(&format!(
+            "Total size: {} bytes\n",
+            entries.iter().map(|e| e.size).sum::<u64>()
+        ));
+        output.push_str("</summary>\n");
+    } else {
+        output.push_str("\nSummary:\n");
+        output.push_str(&format!("Total files: {}\n", entries.len()));
+        output.push_str(&format!(
+            "Total size: {} bytes\n",
+            entries.iter().map(|e| e.size).sum::<u64>()
+        ));
+    }
+
+    if xml_format {
+        output.push_str("</context>");
+    }
 
     Ok(output)
 }
 
+fn xml_escape(text: &str) -> String {
+    text.replace('&', "&amp;")
+        .replace('<', "&lt;")
+        .replace('>', "&gt;")
+        .replace('"', "&quot;")
+        .replace('\'', "&apos;")
+}
+
 pub fn display_token_counts(token_counter: TokenCounter, entries: &[FileEntry]) -> Result<()> {
     let token_count = token_counter.count_files(entries)?;
 
@@ -117,15 +177,27 @@ fn generate_tree(entries: &[FileEntry]) -> Result<String> {
     Ok(output)
 }
 
-fn generate_files(entries: &[FileEntry]) -> Result<String> {
+fn generate_files(entries: &[FileEntry], xml_format: bool) -> Result<String> {
     let mut output = String::new();
 
     for entry in entries {
-        output.push_str(&format!("\nFile: {}\n", entry.path.display()));
-        output.push_str(&"=".repeat(48));
-        output.push('\n');
-        output.push_str(&entry.content);
-        output.push('\n');
+        if xml_format {
+            output.push_str(&format!(
+                "<file path=\"{}\">\n",
+                xml_escape(entry.path.display().to_string().as_str())
+            ));
+            output.push_str(&"=".repeat(48));
+            output.push('\n');
+            output.push_str(&entry.content);
+            output.push('\n');
+            output.push_str("</file>\n");
+        } else {
+            output.push_str(&format!("\nFile: {}\n", entry.path.display()));
+            output.push_str(&"=".repeat(48));
+            output.push('\n');
+            output.push_str(&entry.content);
+            output.push('\n');
+        }
     }
 
     Ok(output)
@@ -280,7 +352,7 @@ mod tests {
     #[test]
     fn test_files_output() {
         let entries = create_test_entries();
-        let files = generate_files(&entries).unwrap();
+        let files = generate_files(&entries, false).unwrap();
         let expected = format!(
             "\nFile: {}\n{}\n{}\n\nFile: {}\n{}\n{}\n",
             "src/main.rs",
@@ -298,23 +370,73 @@ mod tests {
         let entries = create_test_entries();
 
         // Test tree format
-        let tree_output = generate_output(&entries, OutputFormat::Tree).unwrap();
+        let tree_output = generate_output(&entries, OutputFormat::Tree, false, None).unwrap();
         assert!(tree_output.contains("Directory Structure:"));
         assert!(tree_output.contains("src/"));
         assert!(tree_output.contains("main.rs"));
 
         // Test files format
-        let files_output = generate_output(&entries, OutputFormat::Files).unwrap();
+        let files_output = generate_output(&entries, OutputFormat::Files, false, None).unwrap();
         assert!(files_output.contains("File Contents:"));
         assert!(files_output.contains("fn main()"));
         assert!(files_output.contains("pub fn helper()"));
 
         // Test both format
-        let both_output = generate_output(&entries, OutputFormat::Both).unwrap();
+        let both_output = generate_output(&entries, OutputFormat::Both, false, None).unwrap();
         assert!(both_output.contains("Directory Structure:"));
         assert!(both_output.contains("File Contents:"));
     }
 
+    #[test]
+    fn test_xml_output() {
+        let entries = create_test_entries();
+
+        // Test XML tree format
+        let xml_tree_output = generate_output(
+            &entries,
+            OutputFormat::Tree,
+            true,
+            Some("test_project".to_string()),
+        )
+        .unwrap();
+        assert!(xml_tree_output.contains("<context name=\"test_project\">"));
+        assert!(xml_tree_output.contains("<tree>"));
+        assert!(xml_tree_output.contains("</tree>"));
+        assert!(xml_tree_output.contains("<summary>"));
+        assert!(xml_tree_output.contains("</summary>"));
+        assert!(xml_tree_output.contains("</context>"));
+
+        // Test XML files format
+        let xml_files_output = generate_output(
+            &entries,
+            OutputFormat::Files,
+            true,
+            Some("test_project".to_string()),
+        )
+        .unwrap();
+        assert!(xml_files_output.contains("<context name=\"test_project\">"));
+        assert!(xml_files_output.contains("<files>"));
+        assert!(xml_files_output.contains("<file path=\"src/main.rs\">"));
+        assert!(xml_files_output.contains("</file>"));
+        assert!(xml_files_output.contains("</files>"));
+        assert!(xml_files_output.contains("</context>"));
+
+        // Test XML both format
+        let xml_both_output = generate_output(
+            &entries,
+            OutputFormat::Both,
+            true,
+            Some("test_project".to_string()),
+        )
+        .unwrap();
+        assert!(xml_both_output.contains("<context name=\"test_project\">"));
+        assert!(xml_both_output.contains("<tree>"));
+        assert!(xml_both_output.contains("</tree>"));
+        assert!(xml_both_output.contains("<files>"));
+        assert!(xml_both_output.contains("</files>"));
+        assert!(xml_both_output.contains("</context>"));
+    }
+
     #[test]
     fn test_handle_output() {
         use tempfile::tempdir;
@@ -345,6 +467,7 @@ mod tests {
             traverse_links: false,
             link_depth: None,
             config_path: false,
+            xml: false,
         };
 
         handle_output(content.clone(), &args).unwrap();
diff --git a/test_project/src/lib.rs b/test_project/src/lib.rs
new file mode 100644
index 0000000..a61949e
--- /dev/null
+++ b/test_project/src/lib.rs
@@ -0,0 +1 @@
+pub fn helper() { println!("Helper function"); }
diff --git a/test_project/src/main.rs b/test_project/src/main.rs
new file mode 100644
index 0000000..a3e978a
--- /dev/null
+++ b/test_project/src/main.rs
@@ -0,0 +1 @@
+fn main() { println!("Hello, world!"); }