diff --git a/docs/features/generate.md b/docs/features/generate.md
index d7c722fc..15dde010 100644
--- a/docs/features/generate.md
+++ b/docs/features/generate.md
@@ -4,8 +4,7 @@ The `algokit generate` [command](../cli/index.md#generate) is used to generate c
 
 ## 1. Typed clients
 
-The `algokit generate client` [command](../cli/index.md#client) can be used to generate a typed client from an [ARC-0032](https://arc.algorand.foundation/ARCs/arc-0032) application specification with
-both Python and TypeScript available as target languages.
+The `algokit generate client` [command](../cli/index.md#client) can be used to generate a typed client from an [ARC-0032](https://arc.algorand.foundation/ARCs/arc-0032) application specification with both Python and TypeScript available as target languages.
 
 ### Prerequisites
 
@@ -17,6 +16,10 @@ Each generated client will also have a dependency on `algokit-utils` libraries f
 - Python clients require: `algokit-utils@^1.2`
 - TypeScript clients require: `@algorandfoundation/algokit-utils@^2.0`
 
+### Input file / directory
+
+You can either specify a path to a ARC-0032 JSON file, or to a directory that is recursively scanned for `application.json` or `*.arc32.json` file(s).
+
 ### Output tokens
 
 The output path is interpreted as relative to the current working directory, however an absolute path may also be specified e.g.
@@ -25,7 +28,7 @@ The output path is interpreted as relative to the current working directory, how
 There are two tokens available for use with the `-o`, `--output` [option](../cli/index.md#-o---output-):
 
 - `{contract_name}`: This will resolve to a name based on the ARC-0032 contract name, formatted appropriately for the target language.
-- `{app_spec_dir}`: This will resolve to the parent directory of an `application.json` which can be useful to output a client relative to its source application.json.
+- `{app_spec_dir}`: This will resolve to the parent directory of the `application.json` or `*.arc32.json` file which can be useful to output a client relative to its source file.
 
 ### Usage
 
@@ -59,24 +62,24 @@ response = app_client.hello(name="World")
 
 ```typescript
 // A similar working example can be seen in the beaker_production template, when using TypeScript deployment
-import { HelloWorldAppClient } from './artifacts/HelloWorldApp/client'
+import { HelloWorldAppClient } from "./artifacts/HelloWorldApp/client";
 
 const appClient = new HelloWorldAppClient(
   {
-    resolveBy: 'creatorAndName',
+    resolveBy: "creatorAndName",
     findExistingUsing: indexer,
     sender: deployer,
     creatorAddress: deployer.addr,
   },
-  algod,
-)
+  algod
+);
 const app = await appClient.deploy({
   allowDelete: isLocal,
   allowUpdate: isLocal,
-  onSchemaBreak: isLocal ? 'replace' : 'fail',
-  onUpdate: isLocal ? 'update' : 'fail',
-})
-const response = await appClient.hello({ name: 'world' })
+  onSchemaBreak: isLocal ? "replace" : "fail",
+  onUpdate: isLocal ? "update" : "fail",
+});
+const response = await appClient.hello({ name: "world" });
 ```
 
 ### Examples
diff --git a/src/algokit/cli/generate.py b/src/algokit/cli/generate.py
index c247dc75..622ba078 100644
--- a/src/algokit/cli/generate.py
+++ b/src/algokit/cli/generate.py
@@ -125,7 +125,14 @@ def generate_client(output_path_pattern: str | None, app_spec_path_or_dir: Path,
     if not app_spec_path_or_dir.is_dir():
         app_specs = [app_spec_path_or_dir]
     else:
-        app_specs = sorted(app_spec_path_or_dir.rglob("application.json"))
+        patterns = ["application.json", "*.arc32.json"]
+
+        app_specs = []
+        for pattern in patterns:
+            app_specs.extend(app_spec_path_or_dir.rglob(pattern))
+
+        app_specs = list(set(app_specs))
+        app_specs.sort()
         if not app_specs:
             raise click.ClickException("No app specs found")
     for app_spec in app_specs:
diff --git a/tests/generate/test_generate_client.py b/tests/generate/test_generate_client.py
index c3badeb4..4cd74a25 100644
--- a/tests/generate/test_generate_client.py
+++ b/tests/generate/test_generate_client.py
@@ -13,7 +13,7 @@
 from tests.utils.proc_mock import ProcMock
 from tests.utils.which_mock import WhichMock
 
-DirWithAppSpecFactory = Callable[[Path], Path]
+DirWithAppSpecFactory = Callable[[Path, str], Path]
 
 
 def _normalize_output(output: str) -> str:
@@ -29,9 +29,9 @@ def cwd(tmp_path_factory: TempPathFactory) -> Path:
 def dir_with_app_spec_factory() -> DirWithAppSpecFactory:
     app_spec_example_path = Path(__file__).parent / "application.json"
 
-    def factory(app_spec_dir: Path) -> Path:
+    def factory(app_spec_dir: Path, app_spec_file_name: str) -> Path:
         app_spec_dir.mkdir(exist_ok=True, parents=True)
-        app_spec_path = app_spec_dir / "application.json"
+        app_spec_path = app_spec_dir / app_spec_file_name
         shutil.copy(app_spec_example_path, app_spec_path)
         return app_spec_path
 
@@ -40,7 +40,12 @@ def factory(app_spec_dir: Path) -> Path:
 
 @pytest.fixture()
 def application_json(cwd: Path, dir_with_app_spec_factory: DirWithAppSpecFactory) -> Path:
-    return dir_with_app_spec_factory(cwd)
+    return dir_with_app_spec_factory(cwd, "application.json")
+
+
+@pytest.fixture()
+def arc32_json(cwd: Path, dir_with_app_spec_factory: DirWithAppSpecFactory) -> Path:
+    return dir_with_app_spec_factory(cwd, "app.arc32.json")
 
 
 @pytest.fixture(autouse=True)
@@ -82,6 +87,21 @@ def test_generate_client_python(application_json: Path, options: str, expected_o
     assert (application_json.parent / expected_output_path).read_text()
 
 
+@pytest.mark.parametrize(
+    ("options", "expected_output_path"),
+    [
+        ("-o client.py", "client.py"),
+    ],
+)
+def test_generate_client_python_arc32_filename(arc32_json: Path, options: str, expected_output_path: Path) -> None:
+    result = invoke(f"generate client {options} {arc32_json.name}", cwd=arc32_json.parent)
+
+    assert result.exit_code == 0
+    verify(_normalize_output(result.output), options=NamerFactory.with_parameters(*options.split()))
+    assert (arc32_json.parent / expected_output_path).exists()
+    assert (arc32_json.parent / expected_output_path).read_text()
+
+
 @pytest.mark.parametrize(
     ("options", "expected_output_path"),
     [
@@ -133,7 +153,7 @@ def test_generate_client_recursive(cwd: Path, dir_with_app_spec_factory: DirWith
         cwd / "dir2" / "sub_dir",
     ]
     for dir_path in dir_paths:
-        dir_with_app_spec_factory(dir_path)
+        dir_with_app_spec_factory(dir_path, "application.json")
 
     result = invoke("generate client -o {app_spec_dir}/output.py .", cwd=cwd)
     assert result.exit_code == 0
diff --git a/tests/generate/test_generate_client.test_generate_client_python_arc32_filename.-o.client.py.approved.txt b/tests/generate/test_generate_client.test_generate_client_python_arc32_filename.-o.client.py.approved.txt
new file mode 100644
index 00000000..85d4eacb
--- /dev/null
+++ b/tests/generate/test_generate_client.test_generate_client_python_arc32_filename.-o.client.py.approved.txt
@@ -0,0 +1,2 @@
+Generating Python client code for application specified in {current_working_directory}/app.arc32.json and writing to client.py
+Output typed client for HelloWorldApp to client.py