diff --git a/README.md b/README.md
index f81d95a..504c325 100644
--- a/README.md
+++ b/README.md
@@ -2393,6 +2393,7 @@ Create a new dataset.
 ```python
 dataset = client.create_dataset(
     name="object-detection", # Only lowercase alphanumeric characters + hyphen is available
+    license="The MIT License" # Optional
 )
 ```
 
@@ -2404,6 +2405,7 @@ See API docs for details.
 {
     'id': 'YOUR_DATASET_ID',
     'name': 'object-detection',
+    'license': 'The MIT License',
     'createdAt': '2022-10-31T02:20:00.248Z',
     'updatedAt': '2022-10-31T02:20:00.248Z'
 }
diff --git a/examples/create_dataset.py b/examples/create_dataset.py
index 5f39ccd..d2dffa5 100644
--- a/examples/create_dataset.py
+++ b/examples/create_dataset.py
@@ -4,5 +4,5 @@
 
 client = fastlabel.Client()
 
-dataset = client.create_dataset(name="object-detection")
+dataset = client.create_dataset(name="object-detection", license="The MIT License")
 pprint(dataset)
diff --git a/fastlabel/__init__.py b/fastlabel/__init__.py
index b0be554..934e1b0 100644
--- a/fastlabel/__init__.py
+++ b/fastlabel/__init__.py
@@ -3860,19 +3860,15 @@ def get_datasets(
             params["limit"] = limit
         return self.api.get_request(endpoint, params=params)
 
-    def create_dataset(
-        self,
-        name: str,
-    ) -> dict:
+    def create_dataset(self, name: str, license: str = "") -> dict:
         """
         Create a dataset.
 
         name is name of your dataset. Only lowercase alphanumeric characters + hyphen is available (Required).
+        license is a license name of your dataset. (Optional)
         """
         endpoint = "datasets"
-        payload = {
-            "name": name,
-        }
+        payload = {"name": name, "license": license}
         return self.api.post_request(endpoint, payload=payload)
 
     def update_dataset(