diff --git a/README.md b/README.md
index 5740f3f3f8..14fa657678 100644
--- a/README.md
+++ b/README.md
@@ -18,27 +18,31 @@ __Requires ruby 1.9+__
     ./bin/install
 
 
-### Check 
+### Check
 
     ./bin/check
 
 
 ### Repos:
- 
+
 
 Add repo
 
     ./bin/gitlab-projects add-project gitlab/gitlab-ci.git
 
-Remove repo 
+Add repo from template
+
+    ./bin/gitlab-projects add-init-project gitlab/gitlab-ci.git /home/git/gitlab-templates/1/template-name template-name "Administrator" "admin@local.host"
+
+Remove repo
 
     ./bin/gitlab-projects rm-project gitlab/gitlab-ci.git
 
-Import repo 
+Import repo
+
+    # Default timeout is 2 minutes
+    ./bin/gitlab-projects import-project randx/six.git https://github.com/randx/six.git
 
-    # Default timeout is 2 minutes 
-    ./bin/gitlab-projects import-project randx/six.git https://github.com/randx/six.git 
-    
     # Override timeout in seconds
     ./bin/gitlab-projects import-project randx/six.git https://github.com/randx/six.git 90
 
@@ -60,14 +64,14 @@ Remove branch
 
 Create tag
 
-    ./bin/gitlab-projects create-tag gitlab/gitlab-ci.git v3.0.0 3-0-stable 
+    ./bin/gitlab-projects create-tag gitlab/gitlab-ci.git v3.0.0 3-0-stable
 
 Remove tag
 
     ./bin/gitlab-projects rm-tag gitlab/gitlab-ci.git v3.0.0
 
 
-### Keys: 
+### Keys:
 
 
 Add key
diff --git a/bin/gitlab-projects b/bin/gitlab-projects
index 01de20b9ef..9cde5d1a2d 100755
--- a/bin/gitlab-projects
+++ b/bin/gitlab-projects
@@ -9,6 +9,8 @@ require_relative '../lib/gitlab_init'
 # Ex.
 #   /bin/gitlab-projects add-project gitlab/gitlab-ci.git
 #
+#   ./bin/gitlab-projects add-init-project gitlab/gitlab-ci.git /home/git/gitlab-templates/1/template-name template-name "Administrator" "admin@local.host"
+#
 #   /bin/gitlab-projects rm-project gitlab/gitlab-ci.git
 #
 #   /bin/gitlab-projects mv-project gitlab/gitlab-ci.git randx/fork.git
diff --git a/lib/gitlab_config.rb b/lib/gitlab_config.rb
index ad15247976..898a95bb64 100644
--- a/lib/gitlab_config.rb
+++ b/lib/gitlab_config.rb
@@ -15,6 +15,10 @@ def auth_file
     @config['auth_file'] ||= "/home/git/.ssh/authorized_keys"
   end
 
+  def tmp_init_path
+    @config['tmp_init_path'] ||= "home/git/gitlab-templates/tmp"
+  end
+
   def gitlab_url
     @config['gitlab_url'] ||= "http://localhost/"
   end
diff --git a/lib/gitlab_projects.rb b/lib/gitlab_projects.rb
index 4067d1346d..4eb63e4eed 100644
--- a/lib/gitlab_projects.rb
+++ b/lib/gitlab_projects.rb
@@ -1,10 +1,13 @@
 require 'fileutils'
 require 'timeout'
+require 'pathname'
 
 require_relative 'gitlab_config'
 require_relative 'gitlab_logger'
 
 class GitlabProjects
+  attr_reader :gitlab_config
+
   # Project name is a directory name for repository with .git at the end
   # It may be namespaced or not. Like repo.git or gitlab/repo.git
   attr_reader :project_name
@@ -24,9 +27,10 @@ def self.create_hooks(path)
   end
 
   def initialize
+    @gitlab_config = GitlabConfig.new
     @command = ARGV.shift
     @project_name = ARGV.shift
-    @repos_path = GitlabConfig.new.repos_path
+    @repos_path = @gitlab_config.repos_path
     @full_path = File.join(@repos_path, @project_name)
   end
 
@@ -37,6 +41,7 @@ def exec
     when 'create-tag'; create_tag
     when 'rm-tag'; rm_tag
     when 'add-project'; add_project
+    when 'add-init-project'; add_init_project
     when 'rm-project';  rm_project
     when 'mv-project';  mv_project
     when 'import-project'; import_project
@@ -84,6 +89,58 @@ def add_project
     system(*cmd) && self.class.create_hooks(full_path)
   end
 
+  def add_init_project
+    project_name_tmp = @project_name.gsub('.git', '')
+    project_template_path = ARGV.shift
+    project_template_name = ARGV.shift
+    current_user_name = ARGV.shift
+    current_user_email = ARGV.shift
+    project_template_tmp_path = File.join(@gitlab_config.tmp_init_path,project_name_tmp)
+
+    #set git user and email
+    cmd = %W(git config --global user.name '#{current_user_name}')
+    system(*cmd)
+    cmd = %W(git config --global user.email '#{current_user_email}')
+    system(*cmd)
+
+    # create directory
+    $logger.info "Adding project #{@project_name} at <#{full_path}> and init it with template path #{project_template_path}"
+    FileUtils.mkdir_p(full_path, mode: 0770)
+
+    # init the repo with bare option
+    cmd = %W(git --git-dir=#{full_path} init --bare)
+    system(*cmd)
+
+    # create tmp directories
+    FileUtils.mkdir_p(gitlab_config.tmp_init_path, mode: 0700)
+    FileUtils.mkdir_p(project_template_tmp_path, mode: 0700)
+
+    # copy all files from project-template into the tmp directory
+    FileUtils.cd(project_template_tmp_path) do
+      cmd = %W(git init)
+      system(*cmd)
+
+      FileUtils.cp_r(Dir.glob("#{project_template_path}/*"), "./")
+
+      cmd = %W(git add .)
+      system(*cmd)
+
+      cmd = "git commit -m 'initial commit by GitLabHQ from template \"#{project_template_name}\"'"
+      system(*cmd)
+
+      cmd = %W(git remote add origin #{full_path})
+      system(*cmd)
+
+      cmd = %W(git push -u origin master)
+      system(*cmd)
+
+      cmd = %W(rm -rf #{project_template_tmp_path})
+      system(*cmd)
+    end
+
+    self.class.create_hooks(full_path)
+  end
+
   def rm_project
     $logger.info "Removing project #{@project_name} from <#{full_path}>."
     FileUtils.rm_rf(full_path)
diff --git a/spec/gitlab_projects_spec.rb b/spec/gitlab_projects_spec.rb
index 64cb63e9e7..c4d7b46779 100644
--- a/spec/gitlab_projects_spec.rb
+++ b/spec/gitlab_projects_spec.rb
@@ -4,11 +4,14 @@
 describe GitlabProjects do
   before do
     FileUtils.mkdir_p(tmp_repos_path)
+    FileUtils.mkdir_p(tmp_repos_templates_path)
+    FileUtils.touch(File.join(tmp_repos_templates_path, 'REAMDE.md'))
     $logger = double('logger').as_null_object
   end
 
   after do
     FileUtils.rm_rf(tmp_repos_path)
+    FileUtils.rm_rf(tmp_repos_templates_path)
   end
 
   describe :initialize do
@@ -113,6 +116,54 @@
     end
   end
 
+  describe :add_init_project do
+    let(:gl_projects) { build_gitlab_projects('add-init-project', repo_name_from_template, tmp_repos_templates_path, 'rspec test template', 'Administrator', 'admin@local.host') }
+
+    it "should create a directory" do
+      gl_projects.stub(system: true)
+      GitlabProjects.stub(create_hooks: true)
+      gl_projects.exec
+      File.exists?(tmp_repo_path_from_template).should be_true
+    end
+
+    it "should receive valid cmds" do
+      valid_cmd_user_name = ["git", "config", "--global", "user.name", "'Administrator'"]
+      gl_projects.should_receive(:system).with(*valid_cmd_user_name).and_return(true)
+
+      valid_cmd_user_mail = ["git", "config", "--global", "user.email", "'admin@local.host'"]
+      gl_projects.should_receive(:system).with(*valid_cmd_user_mail).and_return(true)
+
+      valid_init_bare_cmd = ["git", "--git-dir=#{tmp_repo_path_from_template}", "init", "--bare"]
+      gl_projects.should_receive(:system).with(*valid_init_bare_cmd).and_return(true)
+
+      valid_init_cmd = ["git", "init"]
+      gl_projects.should_receive(:system).with(*valid_init_cmd).and_return(true)
+
+      valid_add_cmd = ["git", "add", "."]
+      gl_projects.should_receive(:system).with(*valid_add_cmd).and_return(true)
+
+      valid_commit_cmd = ["git commit -m 'initial commit by GitLabHQ from template \"rspec test template\"'"]
+      gl_projects.should_receive(:system).with(*valid_commit_cmd).and_return(true)
+
+      valid_add_origin_cmd = ["git", "remote", "add", "origin", "#{tmp_repo_path_from_template}"]
+      gl_projects.should_receive(:system).with(*valid_add_origin_cmd).and_return(true)
+
+      valid_push_cmd = ["git", "push", "-u", "origin", "master"]
+      gl_projects.should_receive(:system).with(*valid_push_cmd).and_return(true)
+
+      valid_clean_up_cmd = ["rm", "-rf", "#{tmp_init_path}"]
+      gl_projects.should_receive(:system).with(*valid_clean_up_cmd).and_return(true)
+
+      GitlabProjects.should_receive(:create_hooks).with(tmp_repo_path_from_template)
+      gl_projects.exec
+    end
+
+    it "should log an add-init-project event" do
+      $logger.should_receive(:info).with("Adding project #{repo_name_from_template} at <#{tmp_repo_path_from_template}> and init it with template path #{tmp_repos_templates_path}")
+      gl_projects.exec
+    end
+  end
+
   describe :mv_project do
     let(:gl_projects) { build_gitlab_projects('mv-project', repo_name, 'repo.git') }
     let(:new_repo_path) { File.join(tmp_repos_path, 'repo.git') }
@@ -323,14 +374,30 @@ def tmp_repos_path
     File.join(ROOT_PATH, 'tmp', 'repositories')
   end
 
+  def tmp_repos_templates_path
+    File.join(ROOT_PATH, 'tmp', 'templates')
+  end
+
   def tmp_repo_path
     File.join(tmp_repos_path, repo_name)
   end
 
+  def tmp_repo_path_from_template
+    File.join(tmp_repos_path, repo_name_from_template)
+  end
+
   def repo_name
     'gitlab-ci.git'
   end
 
+  def repo_name_from_template
+    'gitlab-ci-from-template.git'
+  end
+
+  def tmp_init_path
+    File.join(GitlabConfig.new.tmp_init_path, repo_name_from_template.gsub('.git', ''))
+  end
+
   def capture_in_tmp_repo(cmd)
     IO.popen([*cmd, {chdir: tmp_repo_path}]).read.strip
   end