diff --git a/elasticsearch-rails/lib/rails/templates/05-settings-files.rb b/elasticsearch-rails/lib/rails/templates/05-settings-files.rb
new file mode 100644
index 000000000..3ce868b6e
--- /dev/null
+++ b/elasticsearch-rails/lib/rails/templates/05-settings-files.rb
@@ -0,0 +1,75 @@
+#     $ rails new searchapp --skip --skip-bundle --template https://raw.githubusercontent.com/elastic/elasticsearch-rails/master/elasticsearch-rails/lib/rails/templates/05-settings-files.rb
+
+# (See: 01-basic.rb, 02-pretty.rb, 03-expert.rb, 04-dsl.rb)
+
+append_to_file 'README.rdoc', <<-README
+
+== [5] Settings Files
+
+The `settings-files` template refactors the `Searchable` module to load the index settings
+from an external file.
+
+README
+
+git add:    "README.rdoc"
+git commit: "-m '[05] Updated the application README'"
+
+# ----- Setup the Searchable module to load settings from config/elasticsearch/articles_settings.json
+
+gsub_file "app/models/concerns/searchable.rb",
+    /index: { number_of_shards: 1, number_of_replicas: 0 }/,
+    "File.open('config/elasticsearch/articles_settings.json')"
+
+git add:    "app/models/concerns/searchable.rb"
+git commit: "-m 'Setup the Searchable module to load settings from file'"
+
+# ----- Copy the articles_settings.json file -------------------------------------------------------
+
+copy_file File.expand_path('../articles_settings.json', __FILE__), 'config/elasticsearch/articles_settings.json'
+
+git add:    "config/elasticsearch/articles_settings.json"
+git commit: "-m 'Create the articles settings file'"
+
+# ----- Temporarily set local repo for testing ----------------------------------------------------
+
+gsub_file "Gemfile",
+    %r{gem 'elasticsearch-model', git: 'git://github.com/elasticsearch/elasticsearch-rails.git'},
+    "gem 'elasticsearch-model', path: File.expand_path('../../../../../../elasticsearch-model', __FILE__)"
+
+# ----- Run bundle install ------------------------------------------------------------------------
+
+run "bundle install"
+
+# ----- Recreate the index ------------------------------------------------------------------------
+
+rake "environment elasticsearch:import:model CLASS='Article' BATCH=100 FORCE=y"
+
+# ----- Print Git log -----------------------------------------------------------------------------
+
+puts
+say_status  "Git", "Details about the application:", :yellow
+puts        '-'*80, ''
+
+git tag: "settings-files"
+git log: "--reverse --oneline HEAD...dsl"
+
+# ----- Start the application ---------------------------------------------------------------------
+
+unless ENV['RAILS_NO_SERVER_START']
+  require 'net/http'
+  if (begin; Net::HTTP.get(URI('http://localhost:3000')); rescue Errno::ECONNREFUSED; false; rescue Exception; true; end)
+    puts        "\n"
+    say_status  "ERROR", "Some other application is running on port 3000!\n", :red
+    puts        '-'*80
+
+    port = ask("Please provide free port:", :bold)
+  else
+    port = '3000'
+  end
+
+  puts  "", "="*80
+  say_status  "DONE", "\e[1mStarting the application. Open http://localhost:#{port}\e[0m", :yellow
+  puts  "="*80, ""
+
+  run  "rails server --port=#{port}"
+end
diff --git a/elasticsearch-rails/lib/rails/templates/articles_settings.json b/elasticsearch-rails/lib/rails/templates/articles_settings.json
new file mode 100644
index 000000000..c8fd35ea6
--- /dev/null
+++ b/elasticsearch-rails/lib/rails/templates/articles_settings.json
@@ -0,0 +1 @@
+{ "number_of_shards": 1, "number_of_replicas": 0 }