diff --git a/assets/default-model-project/README.md b/assets/default-model-project/README.md
new file mode 100644
index 00000000..c5d511fe
--- /dev/null
+++ b/assets/default-model-project/README.md
@@ -0,0 +1,9 @@
+# {project_name}
+Generated by [Rojo](https://github.com/rojo-rbx/rojo) {rojo_version}.
+
+## Getting Started
+To build this library or plugin, use:
+
+```bash
+rojo build -o "{project_name}.rbxmx"
+```
\ No newline at end of file
diff --git a/assets/model.project.json b/assets/default-model-project/default.project.json
similarity index 100%
rename from assets/model.project.json
rename to assets/default-model-project/default.project.json
diff --git a/assets/default-model-project/gitignore.txt b/assets/default-model-project/gitignore.txt
new file mode 100644
index 00000000..0dfcd838
--- /dev/null
+++ b/assets/default-model-project/gitignore.txt
@@ -0,0 +1,3 @@
+# Roblox Studio lock files
+/*.rbxlx.lock
+/*.rbxl.lock
\ No newline at end of file
diff --git a/assets/default-model.lua b/assets/default-model-project/src-init.lua
similarity index 100%
rename from assets/default-model.lua
rename to assets/default-model-project/src-init.lua
diff --git a/assets/default-place-project/README.md b/assets/default-place-project/README.md
new file mode 100644
index 00000000..d2738511
--- /dev/null
+++ b/assets/default-place-project/README.md
@@ -0,0 +1,17 @@
+# {project_name}
+Generated by [Rojo](https://github.com/rojo-rbx/rojo) {rojo_version}.
+
+## Getting Started
+To build the place from scratch, use:
+
+```bash
+rojo build -o Place.rbxlx
+```
+
+Next, open `Place.rbxlx` in Roblox Studio and start the Rojo server:
+
+```bash
+rojo serve
+```
+
+For more help, check out [the Rojo documentation](https://rojo.space/docs).
\ No newline at end of file
diff --git a/assets/place.project.json b/assets/default-place-project/default.project.json
similarity index 100%
rename from assets/place.project.json
rename to assets/default-place-project/default.project.json
diff --git a/assets/default-place-project/gitignore.txt b/assets/default-place-project/gitignore.txt
new file mode 100644
index 00000000..41d6a8ab
--- /dev/null
+++ b/assets/default-place-project/gitignore.txt
@@ -0,0 +1,6 @@
+# Project place file
+/{project_name}.rbxlx
+
+# Roblox Studio lock files
+/*.rbxlx.lock
+/*.rbxl.lock
\ No newline at end of file
diff --git a/src/cli/init.rs b/src/cli/init.rs
index 5fbbdafa..064bf392 100644
--- a/src/cli/init.rs
+++ b/src/cli/init.rs
@@ -2,16 +2,23 @@ use std::{
     fs::{self, OpenOptions},
     io::{self, Write},
     path::Path,
+    process::{Command, Stdio},
 };
 
 use snafu::Snafu;
 
 use crate::cli::{InitCommand, InitKind};
 
-static DEFAULT_PLACE_PROJECT: &str = include_str!("../../assets/place.project.json");
+static MODEL_PROJECT: &str =
+    include_str!("../../assets/default-model-project/default.project.json");
+static MODEL_README: &str = include_str!("../../assets/default-model-project/README.md");
+static MODEL_INIT: &str = include_str!("../../assets/default-model-project/src-init.lua");
+static MODEL_GIT_IGNORE: &str = include_str!("../../assets/default-model-project/gitignore.txt");
 
-static DEFAULT_MODEL_PROJECT: &str = include_str!("../../assets/model.project.json");
-static DEFAULT_MODEL_INIT: &str = include_str!("../../assets/default-model.lua");
+static PLACE_PROJECT: &str =
+    include_str!("../../assets/default-place-project/default.project.json");
+static PLACE_README: &str = include_str!("../../assets/default-place-project/README.md");
+static PLACE_GIT_IGNORE: &str = include_str!("../../assets/default-place-project/gitignore.txt");
 
 #[derive(Debug, Snafu)]
 pub struct InitError(Error);
@@ -21,6 +28,9 @@ enum Error {
     #[snafu(display("A project file named default.project.json already exists in this folder"))]
     AlreadyExists,
 
+    #[snafu(display("git init failed"))]
+    GitInit,
+
     #[snafu(display("I/O error"))]
     Io { source: io::Error },
 }
@@ -37,6 +47,8 @@ pub fn init(options: InitCommand) -> Result<(), InitError> {
 
 fn init_inner(options: InitCommand) -> Result<(), Error> {
     let base_path = options.absolute_path();
+    fs::create_dir_all(&base_path)?;
+
     let canonical = fs::canonicalize(&base_path)?;
     let project_name = canonical
         .file_name()
@@ -54,9 +66,14 @@ fn init_inner(options: InitCommand) -> Result<(), Error> {
 }
 
 fn init_place(base_path: &Path, project_params: ProjectParams) -> Result<(), Error> {
-    let project_file = project_params.render_template(DEFAULT_PLACE_PROJECT);
+    eprintln!("Creating new place project '{}'", project_params.name);
+
+    let project_file = project_params.render_template(PLACE_PROJECT);
     try_create_project(base_path, &project_file)?;
 
+    let readme = project_params.render_template(PLACE_README);
+    write_if_not_exists(&base_path.join("README.md"), &readme)?;
+
     let src = base_path.join("src");
     fs::create_dir_all(&src)?;
 
@@ -84,19 +101,34 @@ fn init_place(base_path: &Path, project_params: ProjectParams) -> Result<(), Err
         "print(\"Hello world, from client!\")",
     )?;
 
+    let git_ignore = project_params.render_template(PLACE_GIT_IGNORE);
+    try_git_init(base_path, &git_ignore)?;
+
+    eprintln!("Created project successfully.");
+
     Ok(())
 }
 
 fn init_model(base_path: &Path, project_params: ProjectParams) -> Result<(), Error> {
-    let project_file = project_params.render_template(DEFAULT_MODEL_PROJECT);
+    eprintln!("Creating new model project '{}'", project_params.name);
+
+    let project_file = project_params.render_template(MODEL_PROJECT);
     try_create_project(base_path, &project_file)?;
 
+    let readme = project_params.render_template(MODEL_README);
+    write_if_not_exists(&base_path.join("README.md"), &readme)?;
+
     let src = base_path.join("src");
     fs::create_dir_all(&src)?;
 
-    let init = project_params.render_template(DEFAULT_MODEL_INIT);
+    let init = project_params.render_template(MODEL_INIT);
     write_if_not_exists(&src.join("init.lua"), &init)?;
 
+    let git_ignore = project_params.render_template(MODEL_GIT_IGNORE);
+    try_git_init(base_path, &git_ignore)?;
+
+    eprintln!("Created project successfully.");
+
     Ok(())
 }
 
@@ -108,7 +140,47 @@ struct ProjectParams {
 impl ProjectParams {
     /// Render a template by replacing variables with project parameters.
     fn render_template(&self, template: &str) -> String {
-        template.replace("{project_name}", &self.name)
+        template
+            .replace("{project_name}", &self.name)
+            .replace("{rojo_version}", env!("CARGO_PKG_VERSION"))
+    }
+}
+
+/// Attempt to initialize a Git repository if necessary, and create .gitignore.
+fn try_git_init(path: &Path, git_ignore: &str) -> Result<(), Error> {
+    if should_git_init(path) {
+        log::debug!("Initializing Git repository...");
+
+        let status = Command::new("git").arg("init").current_dir(path).status()?;
+
+        if !status.success() {
+            return Err(Error::GitInit);
+        }
+    }
+
+    write_if_not_exists(&path.join(".gitignore"), git_ignore)?;
+
+    Ok(())
+}
+
+/// Tells whether we should initialize a Git repository inside the given path.
+///
+/// Will return false if the user doesn't have Git installed or if the path is
+/// already inside a Git repository.
+fn should_git_init(path: &Path) -> bool {
+    let result = Command::new("git")
+        .args(&["rev-parse", "--is-inside-work-tree"])
+        .stdout(Stdio::null())
+        .current_dir(path)
+        .status();
+
+    match result {
+        // If the command ran, but returned a non-zero exit code, we are not in
+        // a Git repo and we should initialize one.
+        Ok(status) => !status.success(),
+
+        // If the command failed to run, we probably don't have Git installed.
+        Err(_) => false,
     }
 }