diff --git a/README.md b/README.md
index e4739a4..92e26d2 100644
--- a/README.md
+++ b/README.md
@@ -12,6 +12,7 @@ See the [Examples](#-examples) section below for more demos.
 
 ## 🌟 Recent Updates
 
+- Dec 11 - Start a new project from existing code (allows you to come back to an older project)
 - Dec 7 - 🔥 🔥 🔥 View a history of your edits, and branch off them
 - Nov 30 - Dark mode, output code in Ionic (thanks [@dialmedu](https://github.com/dialmedu)), set OpenAI base URL
 - Nov 28 - 🔥 🔥 🔥 Customize your stack: React or Bootstrap or TailwindCSS
diff --git a/design-docs.md b/design-docs.md
new file mode 100644
index 0000000..eb38119
--- /dev/null
+++ b/design-docs.md
@@ -0,0 +1,5 @@
+## Version History
+
+Version history is stored as a tree on the client-side.
+
+![Screenshot to Code](https://github.com/abi/screenshot-to-code/assets/23818/e35644aa-b90a-4aa7-8027-b8732796fd7c)
diff --git a/frontend/src/App.tsx b/frontend/src/App.tsx
index d7db9db..4f3afb2 100644
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -2,7 +2,7 @@ import { useEffect, useRef, useState } from "react";
 import ImageUpload from "./components/ImageUpload";
 import CodePreview from "./components/CodePreview";
 import Preview from "./components/Preview";
-import { CodeGenerationParams, generateCode } from "./generateCode";
+import { generateCode } from "./generateCode";
 import Spinner from "./components/Spinner";
 import classNames from "classnames";
 import {
@@ -18,7 +18,13 @@ import { Button } from "@/components/ui/button";
 import { Textarea } from "@/components/ui/textarea";
 import { Tabs, TabsContent, TabsList, TabsTrigger } from "./components/ui/tabs";
 import SettingsDialog from "./components/SettingsDialog";
-import { Settings, EditorTheme, AppState, GeneratedCodeConfig } from "./types";
+import {
+  AppState,
+  CodeGenerationParams,
+  EditorTheme,
+  GeneratedCodeConfig,
+  Settings,
+} from "./types";
 import { IS_RUNNING_ON_CLOUD } from "./config";
 import { PicoBadge } from "./components/PicoBadge";
 import { OnboardingNote } from "./components/OnboardingNote";
@@ -127,10 +133,21 @@ function App() {
     setIsImportedFromCode(false);
   };
 
-  const stop = () => {
+  const cancelCodeGeneration = () => {
     wsRef.current?.close?.(USER_CLOSE_WEB_SOCKET_CODE);
     // make sure stop can correct the state even if the websocket is already closed
-    setAppState(AppState.CODE_READY);
+    cancelCodeGenerationAndReset();
+  };
+
+  const cancelCodeGenerationAndReset = () => {
+    // When this is the first version, reset the entire app state
+    if (currentVersion === null) {
+      reset();
+    } else {
+      // Otherwise, revert to the last version
+      setGeneratedCode(appHistory[currentVersion].code);
+      setAppState(AppState.CODE_READY);
+    }
   };
 
   function doGenerateCode(
@@ -187,6 +204,11 @@ function App() {
         }
       },
       (line) => setExecutionConsole((prev) => [...prev, line]),
+      // On cancel
+      () => {
+        cancelCodeGenerationAndReset();
+      },
+      // On complete
       () => {
         setAppState(AppState.CODE_READY);
       }
@@ -343,10 +365,10 @@ function App() {
                   </div>
                   <div className="flex mt-4 w-full">
                     <Button
-                      onClick={stop}
+                      onClick={cancelCodeGeneration}
                       className="w-full dark:text-white dark:bg-gray-700"
                     >
-                      Stop
+                      Cancel
                     </Button>
                   </div>
                   <CodePreview code={generatedCode} />
diff --git a/frontend/src/generateCode.ts b/frontend/src/generateCode.ts
index 5e826dd..55523c4 100644
--- a/frontend/src/generateCode.ts
+++ b/frontend/src/generateCode.ts
@@ -1,27 +1,20 @@
 import toast from "react-hot-toast";
 import { WS_BACKEND_URL } from "./config";
 import { USER_CLOSE_WEB_SOCKET_CODE } from "./constants";
+import { FullGenerationSettings } from "./types";
 
 const ERROR_MESSAGE =
   "Error generating code. Check the Developer Console AND the backend logs for details. Feel free to open a Github issue.";
 
-const STOP_MESSAGE = "Code generation stopped";
-
-export interface CodeGenerationParams {
-  generationType: "create" | "update";
-  image: string;
-  resultImage?: string;
-  history?: string[];
-  isImportedFromCode?: boolean;
-  // isImageGenerationEnabled: boolean; // TODO: Merge with Settings type in types.ts
-}
+const CANCEL_MESSAGE = "Code generation cancelled";
 
 export function generateCode(
   wsRef: React.MutableRefObject<WebSocket | null>,
-  params: CodeGenerationParams,
+  params: FullGenerationSettings,
   onChange: (chunk: string) => void,
   onSetCode: (code: string) => void,
   onStatusUpdate: (status: string) => void,
+  onCancel: () => void,
   onComplete: () => void
 ) {
   const wsUrl = `${WS_BACKEND_URL}/generate-code`;
@@ -47,15 +40,18 @@ export function generateCode(
       toast.error(response.value);
     }
   });
+
   ws.addEventListener("close", (event) => {
     console.log("Connection closed", event.code, event.reason);
     if (event.code === USER_CLOSE_WEB_SOCKET_CODE) {
-      toast.success(STOP_MESSAGE);
+      toast.success(CANCEL_MESSAGE);
+      onCancel();
     } else if (event.code !== 1000) {
       console.error("WebSocket error code", event);
       toast.error(ERROR_MESSAGE);
+    } else {
+      onComplete();
     }
-    onComplete();
   });
 
   ws.addEventListener("error", (error) => {
diff --git a/frontend/src/types.ts b/frontend/src/types.ts
index deb370a..236116a 100644
--- a/frontend/src/types.ts
+++ b/frontend/src/types.ts
@@ -28,3 +28,13 @@ export enum AppState {
   CODING = "CODING",
   CODE_READY = "CODE_READY",
 }
+
+export interface CodeGenerationParams {
+  generationType: "create" | "update";
+  image: string;
+  resultImage?: string;
+  history?: string[];
+  isImportedFromCode?: boolean;
+}
+
+export type FullGenerationSettings = CodeGenerationParams & Settings;