diff --git a/src/basic_memory/cli/commands/sync.py b/src/basic_memory/cli/commands/sync.py
index d4937bc0..70ac6eaf 100644
--- a/src/basic_memory/cli/commands/sync.py
+++ b/src/basic_memory/cli/commands/sync.py
@@ -31,7 +31,6 @@ from basic_memory.services.link_resolver import LinkResolver
 from basic_memory.services.search_service import SearchService
 from basic_memory.sync import SyncService, FileChangeScanner
 from basic_memory.sync.utils import SyncReport
-from conftest import markdown_processor
 
 console = Console()
 
@@ -48,6 +47,10 @@ async def get_sync_service(db_type=DatabaseType.FILESYSTEM):
         engine,
         session_maker,
     ):
+        entity_parser = EntityParser(config.home)
+        markdown_processor =  MarkdownProcessor(entity_parser)
+        file_service = FileService(config.home, markdown_processor)
+
         # Initialize repositories
         entity_repository = EntityRepository(session_maker)
         observation_repository = ObservationRepository(session_maker)
@@ -55,15 +58,12 @@ async def get_sync_service(db_type=DatabaseType.FILESYSTEM):
         search_repository = SearchRepository(session_maker)
 
         # Initialize services
-        search_service = SearchService(search_repository, entity_repository)
+        search_service = SearchService(search_repository, entity_repository, file_service)
         link_resolver = LinkResolver(entity_repository, search_service)
 
         # Initialize scanner
         file_change_scanner = FileChangeScanner(entity_repository)
 
-        entity_parser = EntityParser(config.home)
-        markdown_processor =  MarkdownProcessor(entity_parser)
-        file_service = FileService(config.home, markdown_processor)
         
         # Initialize services
         entity_service = EntityService(
diff --git a/src/basic_memory/sync/file_change_scanner.py b/src/basic_memory/sync/file_change_scanner.py
index ed4a6418..7125897f 100644
--- a/src/basic_memory/sync/file_change_scanner.py
+++ b/src/basic_memory/sync/file_change_scanner.py
@@ -2,14 +2,14 @@
 
 from dataclasses import dataclass, field
 from pathlib import Path
-from typing import Dict, Sequence, Optional
+from typing import Dict, Sequence
 
 from loguru import logger
 
 from basic_memory.file_utils import compute_checksum
 from basic_memory.models import Entity
 from basic_memory.repository.entity_repository import EntityRepository
-from basic_memory.sync.utils import SyncReport, FileChange
+from basic_memory.sync.utils import SyncReport
 
 
 @dataclass
@@ -87,19 +87,13 @@ class FileChangeScanner:
         return result
 
     async def find_changes(
-        self,
-        db_file_state: Dict[str, FileState],
-        directory: Optional[Path] = None,
+        self, directory: Path, db_file_state: Dict[str, FileState]
     ) -> SyncReport:
         """Find changes between filesystem and database."""
         # Get current files and checksums
-
-        # scan the directory provided
         scan_result = await self.scan_directory(directory)
-
-        # the set of all of the current files and their checksums    
         current_files = scan_result.files
-        
+
         # Build report
         report = SyncReport()
 
@@ -163,6 +157,5 @@ class FileChangeScanner:
 
     async def find_knowledge_changes(self, directory: Path) -> SyncReport:
         """Find changes in knowledge directory."""
-        
         db_file_state = await self.get_db_file_state(await self.entity_repository.find_all())
         return await self.find_changes(directory=directory, db_file_state=db_file_state)
diff --git a/src/basic_memory/sync/sync_service.py b/src/basic_memory/sync/sync_service.py
index fb7ae0b5..273d5187 100644
--- a/src/basic_memory/sync/sync_service.py
+++ b/src/basic_memory/sync/sync_service.py
@@ -1,7 +1,7 @@
 """Service for syncing files between filesystem and database."""
 
 from pathlib import Path
-from typing import Dict, Optional
+from typing import Dict
 
 from loguru import logger
 
@@ -10,8 +10,7 @@ from basic_memory.repository import EntityRepository, RelationRepository
 from basic_memory.services import EntityService
 from basic_memory.services.search_service import SearchService
 from basic_memory.sync import FileChangeScanner
-from basic_memory.sync.utils import SyncReport, FileChange
-from watchfiles import Change
+from basic_memory.sync.utils import SyncReport
 
 
 class SyncService:
@@ -62,7 +61,7 @@ class SyncService:
             logger.debug(f"No entity found to delete: {file_path}")
 
     async def sync(self, directory: Path) -> SyncReport:
-        """Sync knowledge files with database."""            
+        """Sync knowledge files with database."""
         changes = await self.scanner.find_knowledge_changes(directory)
         logger.info(f"Found {changes.total_changes} knowledge changes")
 
@@ -87,7 +86,7 @@ class SyncService:
         parsed_entities: Dict[str, EntityMarkdown] = {}
 
         for file_path in [*changes.new, *changes.modified]:
-            entity_markdown = await self.entity_parser.parse_file(Path(file_path))
+            entity_markdown = await self.entity_parser.parse_file(directory / file_path)
             parsed_entities[file_path] = entity_markdown
 
         # First pass: Create/update entities