diff --git a/bundler/lib/bundler/cli/gem.rb b/bundler/lib/bundler/cli/gem.rb
index c9794c40032a..43c3321053b8 100644
--- a/bundler/lib/bundler/cli/gem.rb
+++ b/bundler/lib/bundler/cli/gem.rb
@@ -192,7 +192,8 @@ def run
 
       if use_git
         Bundler.ui.info "Initializing git repo in #{target}"
-        `git init #{target}`
+        require "shellwords"
+        `git init #{target.to_s.shellescape}`
 
         config[:git_default_branch] = File.read("#{target}/.git/HEAD").split("/").last.chomp
       end
diff --git a/bundler/spec/commands/newgem_spec.rb b/bundler/spec/commands/newgem_spec.rb
index 01f8a5daea81..4ccf9be6a88d 100644
--- a/bundler/spec/commands/newgem_spec.rb
+++ b/bundler/spec/commands/newgem_spec.rb
@@ -52,6 +52,17 @@ def bundle_exec_standardrb
       gem_skeleton_assertions
       expect(bundled_app("#{gem_name}/.git")).not_to exist
     end
+
+    context "on a path with spaces" do
+      before do
+        Dir.mkdir(bundled_app("path with spaces"))
+      end
+
+      it "properly initializes git repo", :readline do
+        bundle "gem #{gem_name}", :dir => bundled_app("path with spaces")
+        expect(bundled_app("path with spaces/#{gem_name}/.git")).to exist
+      end
+    end
   end
 
   shared_examples_for "--mit flag" do