diff --git a/packages/create-fractal/README.md b/packages/create-fractal/README.md
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+++ b/packages/create-fractal/README.md
@@ -0,0 +1,18 @@
+# @frctl/create-fractal
+
+New Fractal pattern library initializer.
+
+[![NPM Version](https://img.shields.io/npm/v/@frctl/create-fractal)](https://www.npmjs.com/package/@frctl/create-fractal)
+
+## Usage
+
+Run `npm init @frctl/fractal [dir]` in your terminal. `[dir]` is the new folder you want to create your project in.
+
+## Testing locally
+
+1. Find out the full path to this directory.
+2. Run `npx [path/to/this/dir]`.
+
+## License
+
+[MIT](https://github.com/frctl/fractal/blob/main/LICENSE)
diff --git a/packages/create-fractal/package.json b/packages/create-fractal/package.json
new file mode 100644
index 000000000..998b6cdbc
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+++ b/packages/create-fractal/package.json
@@ -0,0 +1,33 @@
+{
+  "name": "@frctl/create-fractal",
+  "version": "0.0.0",
+  "description": "New Fractal pattern library initializer.",
+  "bin": "./src/index.js",
+  "main": "./src/index.js",
+  "repository": {
+    "type": "git",
+    "url": "https://github.com/frctl/fractal.git",
+    "directory": "packages/create-fractal"
+  },
+  "license": "MIT",
+  "bugs": {
+    "url": "https://github.com/frctl/fractal/issues"
+  },
+  "homepage": "https://github.com/frctl/fractal",
+  "dependencies": {
+    "@frctl/core": "^0.3.3",
+    "execa": "^5.0.0",
+    "fs-extra": "^9.1.0",
+    "handlebars": "^4.7.7",
+    "inquirer": "^7.3.3"
+  },
+  "devDependencies": {
+    "@frctl/fractal": "^1.5.11"
+  },
+  "engines": {
+    "node": ">= 10.0.0"
+  },
+  "publishConfig": {
+    "access": "public"
+  }
+}
diff --git a/packages/create-fractal/src/generate-project.js b/packages/create-fractal/src/generate-project.js
new file mode 100644
index 000000000..db606b100
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+++ b/packages/create-fractal/src/generate-project.js
@@ -0,0 +1,61 @@
+const path = require('path');
+
+const { utils, shell } = require('@frctl/core');
+const fs = require('fs-extra');
+const Handlebars = require('handlebars');
+
+const pkg = require('../package.json');
+
+module.exports = async ({ targetPath, templatePath, answers }) => {
+    const componentsDir = path.join(targetPath, answers.componentsDir);
+    const docsDir = path.join(targetPath, answers.docsDir);
+    const publicDir = path.join(targetPath, answers.publicDir);
+    const packageJSONPath = path.join(targetPath, 'package.json');
+    const gitIgnorePath = path.join(targetPath, '.gitignore');
+    const fractalFilePath = path.join(targetPath, 'fractal.config.js');
+    const docsIndexPath = path.join(docsDir, '01-index.md');
+    const componentCopyTo = path.join(componentsDir, 'example');
+
+    const fractalFileTpl = path.join(templatePath, 'fractal.hbs');
+    const docsIndexTpl = path.join(templatePath, 'docs/index.md');
+    const exampleComponent = path.join(templatePath, 'components/example');
+
+    const packageJSON = {
+        name: utils.slugify(answers.projectTitle),
+        version: '0.1.0',
+        dependencies: {
+            '@frctl/fractal': `${pkg.devDependencies['@frctl/fractal']}`,
+        },
+        scripts: {
+            'fractal:start': 'fractal start --sync',
+            'fractal:build': 'fractal build',
+        },
+    };
+
+    const fractalContents = Handlebars.compile(fs.readFileSync(fractalFileTpl, 'utf8'))(answers);
+    const indexContents = Handlebars.compile(fs.readFileSync(docsIndexTpl, 'utf8'))(answers);
+
+    // ensure target folders exist
+    await fs.ensureDir(targetPath);
+    await fs.ensureDir(componentsDir);
+    await fs.ensureDir(docsDir);
+    await fs.ensureDir(publicDir);
+
+    // write package.json
+    await fs.writeJson(packageJSONPath, packageJSON, { spaces: 2 });
+
+    // copy example component
+    await fs.copy(exampleComponent, componentCopyTo);
+
+    // write git-specific files
+    if (answers.useGit) {
+        shell.touch(path.join(publicDir, '.gitkeep'));
+        await fs.writeFile(gitIgnorePath, 'node_modules\n');
+    }
+
+    // write config file
+    await fs.writeFile(fractalFilePath, fractalContents);
+
+    // write docs index
+    await fs.writeFile(docsIndexPath, indexContents);
+};
diff --git a/packages/create-fractal/src/get-answers.js b/packages/create-fractal/src/get-answers.js
new file mode 100644
index 000000000..41ac3061f
--- /dev/null
+++ b/packages/create-fractal/src/get-answers.js
@@ -0,0 +1,40 @@
+const { utils } = require('@frctl/core');
+const inquirer = require('inquirer');
+
+// In the future, use template parameter to ask special questions depending on template name.
+module.exports = async ({ targetDir }) => {
+    const questions = [
+        {
+            type: 'input',
+            name: 'projectTitle',
+            message: "What's the title of your project?",
+            default: utils.titlize(targetDir),
+        },
+        {
+            type: 'input',
+            name: 'componentsDir',
+            message: 'Where would you like to keep your components?',
+            default: 'components',
+        },
+        {
+            type: 'input',
+            name: 'docsDir',
+            message: 'Where would you like to keep your docs?',
+            default: 'docs',
+        },
+        {
+            type: 'input',
+            name: 'publicDir',
+            message: 'What would you like to call your public directory?',
+            default: 'public',
+        },
+        {
+            type: 'confirm',
+            name: 'useGit',
+            message: 'Will you use Git for version control on this project?',
+            default: true,
+        },
+    ];
+
+    return await inquirer.prompt(questions);
+};
diff --git a/packages/create-fractal/src/index.js b/packages/create-fractal/src/index.js
new file mode 100755
index 000000000..9170bc41b
--- /dev/null
+++ b/packages/create-fractal/src/index.js
@@ -0,0 +1,69 @@
+#!/usr/bin/env node
+
+const path = require('path');
+
+const { shell } = require('@frctl/core');
+const execa = require('execa');
+const fs = require('fs-extra');
+// const inquirer = require('inquirer');
+
+const getAnswers = require('./get-answers');
+const generateProject = require('./generate-project');
+
+const templatesDir = path.join(__dirname, '../templates');
+
+(async () => {
+    const targetDir = process.argv.length >= 3 ? process.argv[2] : '.';
+    const targetPath = path.join(process.cwd(), targetDir);
+
+    try {
+        // ensure creating project in a new directory
+        const pathExists = await fs.pathExists(targetPath);
+
+        if (pathExists) {
+            console.error(`Cannot create new project: The directory ${targetPath} already exists.`);
+            return;
+        }
+
+        // enable when we have multiple starter templates
+        /*
+        const { template } = await inquirer.prompt([
+            {
+                type: 'list',
+                name: 'template',
+                message: 'What template do you want to start from?',
+                choices: [
+                    'handlebars',
+                ],
+            }
+        ]);
+        */
+        const template = 'handlebars';
+        const templatePath = path.join(templatesDir, template);
+
+        console.log('Creating new project.... just a few questions:');
+        // ask questions, get answers
+        const answers = await getAnswers({
+            template,
+            targetDir,
+        });
+
+        console.log('Generating project structure...');
+        await generateProject({
+            targetPath,
+            templatePath,
+            answers,
+        });
+
+        // do initial install
+        console.log('Installing dependencies... This may take a while!');
+        shell.cd(targetPath);
+        await execa('npm', ['install'], { stdio: 'inherit' });
+
+        // success!
+        console.log('Your new Fractal project has been set up.');
+    } catch (e) {
+        await fs.remove(targetPath);
+        console.error(e);
+    }
+})();
diff --git a/packages/create-fractal/templates/handlebars/components/example/example.config.yml b/packages/create-fractal/templates/handlebars/components/example/example.config.yml
new file mode 100644
index 000000000..aeff704ae
--- /dev/null
+++ b/packages/create-fractal/templates/handlebars/components/example/example.config.yml
@@ -0,0 +1,3 @@
+title: Example component
+context:
+    text: This is an example component!
diff --git a/packages/create-fractal/templates/handlebars/components/example/example.hbs b/packages/create-fractal/templates/handlebars/components/example/example.hbs
new file mode 100644
index 000000000..1eeeb0597
--- /dev/null
+++ b/packages/create-fractal/templates/handlebars/components/example/example.hbs
@@ -0,0 +1 @@
+<p>{{ text }}</p>
diff --git a/packages/create-fractal/templates/handlebars/docs/index.md b/packages/create-fractal/templates/handlebars/docs/index.md
new file mode 100644
index 000000000..735fe008a
--- /dev/null
+++ b/packages/create-fractal/templates/handlebars/docs/index.md
@@ -0,0 +1,5 @@
+---
+title: {{ projectTitle }}
+---
+
+This is your index page. You can edit its contents at `{{ docsDir }}/01-index.md`
diff --git a/packages/create-fractal/templates/handlebars/fractal.hbs b/packages/create-fractal/templates/handlebars/fractal.hbs
new file mode 100644
index 000000000..177313a9a
--- /dev/null
+++ b/packages/create-fractal/templates/handlebars/fractal.hbs
@@ -0,0 +1,39 @@
+'use strict';
+
+/*
+* Require the path module
+*/
+const path = require('path');
+
+/*
+ * Require the Fractal module
+ */
+const fractal = module.exports = require('@frctl/fractal').create();
+
+{{#if projectTitle}}
+/*
+ * Give your project a title.
+ */
+fractal.set('project.title', '{{ projectTitle }}');
+{{/if}}
+
+{{#if componentsDir}}
+/*
+ * Tell Fractal where to look for components.
+ */
+fractal.components.set('path', path.join(__dirname, '{{ componentsDir }}'));
+{{/if}}
+
+{{#if docsDir}}
+/*
+ * Tell Fractal where to look for documentation pages.
+ */
+fractal.docs.set('path', path.join(__dirname, '{{ docsDir }}'));
+{{/if}}
+
+{{#if publicDir}}
+/*
+ * Tell the Fractal web preview plugin where to look for static assets.
+ */
+fractal.web.set('static.path', path.join(__dirname, '{{ publicDir }}'));
+{{/if}}