diff --git a/middleman-core/features/cli_extension.feature b/middleman-core/features/cli_extension.feature
index f648e3f28..b762664c2 100644
--- a/middleman-core/features/cli_extension.feature
+++ b/middleman-core/features/cli_extension.feature
@@ -11,3 +11,4 @@ Feature: Middleman New Extension CLI
       | features/support/env.rb                       |
       | lib/middleman_extension.rb                    |
       | lib/my-extension-library.rb                   |
+      | .gitignore                                    |
diff --git a/middleman-core/lib/middleman-core/cli/extension.rb b/middleman-core/lib/middleman-core/cli/extension.rb
index e15ae255a..22a4531e5 100644
--- a/middleman-core/lib/middleman-core/cli/extension.rb
+++ b/middleman-core/lib/middleman-core/cli/extension.rb
@@ -11,12 +11,19 @@ class Extension < Thor
 
     # Required path for the new project to be generated
     argument :name, :type => :string
-
+    
+    # Template files are relative to this file
+    # @return [String]
+    def self.source_root
+      File.join(File.dirname(__FILE__), "..", "templates", "extension")
+    end
+    
     desc "extension [options]", "Create Middleman extension scaffold NAME"
 
     # The extension task
     # @param [String] name
     def extension
+      generate_gitignore!
       template "Rakefile", File.join(name, "Rakefile")
       template "gemspec", File.join(name, "#{name}.gemspec")
       template "Gemfile", File.join(name, "Gemfile")
@@ -26,11 +33,17 @@ def extension
       empty_directory File.join(name, "fixtures")
     end
 
-    # Template files are relative to this file
-    # @return [String]
-    def self.source_root
-      File.join(File.dirname(__FILE__), "..", "templates", "extension")
-    end
+    # Output a .gitignore file
+    class_option :git, :type => :boolean, :default => true
+
+    no_tasks {
+      # Write a .gitignore file for project
+      # @return [void]
+      def generate_gitignore!
+        return unless options[:git]
+        copy_file "gitignore", File.join(name, ".gitignore")
+      end
+    }
 
   end
 end
diff --git a/middleman-core/lib/middleman-core/templates/extension/Gemfile b/middleman-core/lib/middleman-core/templates/extension/Gemfile
index 7081b154b..69ea7ad0d 100644
--- a/middleman-core/lib/middleman-core/templates/extension/Gemfile
+++ b/middleman-core/lib/middleman-core/templates/extension/Gemfile
@@ -1,4 +1,17 @@
 source :rubygems
 
 # Specify your gem's dependencies in <%= name %>.gemspec
-gemspec
\ No newline at end of file
+gemspec
+
+group :development do
+  gem "rake",     "~> 0.9.2"
+  gem "rdoc",     "~> 3.9"
+  gem "yard",     "~> 0.8.0"
+end
+
+group :test do
+  gem "cucumber", "~> 1.2.0"
+  gem "fivemat"
+  gem "aruba",    "~> 0.4.11"
+  gem "rspec",    "~> 2.7"
+end
\ No newline at end of file