diff --git a/CHANGELOG.md b/CHANGELOG.md
index e41a60d9..996f4dc7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,7 @@
 * Added support for syncing in `.toml` files ([#633])
 * Add `plugin` flag to the `build` command that outputs to the local plugins folder ([#735])
 * Added better support for `Font` properties ([#731])
+* Add new plugin template to the `init` command ([#738])
 
 [#668]: https://github.com/rojo-rbx/rojo/pull/668
 [#674]: https://github.com/rojo-rbx/rojo/pull/674
@@ -38,6 +39,7 @@
 [#633]: https://github.com/rojo-rbx/rojo/pull/633
 [#735]: https://github.com/rojo-rbx/rojo/pull/735
 [#731]: https://github.com/rojo-rbx/rojo/pull/731
+[#738]: https://github.com/rojo-rbx/rojo/pull/738
 
 ## [7.3.0] - April 22, 2023
 * Added `$attributes` to project format. ([#574])
diff --git a/assets/default-model-project/README.md b/assets/default-model-project/README.md
index 30dfc436..1c1ad23c 100644
--- a/assets/default-model-project/README.md
+++ b/assets/default-model-project/README.md
@@ -2,7 +2,7 @@
 Generated by [Rojo](https://github.com/rojo-rbx/rojo) {rojo_version}.
 
 ## Getting Started
-To build this library or plugin, use:
+To build this library, use:
 
 ```bash
 rojo build -o "{project_name}.rbxmx"
diff --git a/assets/default-plugin-project/README.md b/assets/default-plugin-project/README.md
new file mode 100644
index 00000000..a02eac72
--- /dev/null
+++ b/assets/default-plugin-project/README.md
@@ -0,0 +1,17 @@
+# {project_name}
+Generated by [Rojo](https://github.com/rojo-rbx/rojo) {rojo_version}.
+
+## Getting Started
+To build this plugin to your local plugins folder, use:
+
+```bash
+rojo build -p "{project_name}.rbxm"
+```
+
+You can include the `watch` flag to re-build it on save:
+
+```bash
+rojo build -p "{project_name}.rbxm" --watch
+```
+
+For more help, check out [the Rojo documentation](https://rojo.space/docs).
diff --git a/assets/default-plugin-project/default.project.json b/assets/default-plugin-project/default.project.json
new file mode 100644
index 00000000..e7bb5891
--- /dev/null
+++ b/assets/default-plugin-project/default.project.json
@@ -0,0 +1,6 @@
+{
+  "name": "{project_name}",
+  "tree": {
+    "$path": "src"
+  }
+}
\ No newline at end of file
diff --git a/assets/default-plugin-project/gitignore.txt b/assets/default-plugin-project/gitignore.txt
new file mode 100644
index 00000000..608ce35a
--- /dev/null
+++ b/assets/default-plugin-project/gitignore.txt
@@ -0,0 +1,3 @@
+# Plugin model files
+/{project_name}.rbxmx
+/{project_name}.rbxm
diff --git a/src/cli/init.rs b/src/cli/init.rs
index b770f55d..48d513b1 100644
--- a/src/cli/init.rs
+++ b/src/cli/init.rs
@@ -21,6 +21,11 @@ static PLACE_PROJECT: &str =
 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");
 
+static PLUGIN_PROJECT: &str =
+    include_str!("../../assets/default-plugin-project/default.project.json");
+static PLUGIN_README: &str = include_str!("../../assets/default-plugin-project/README.md");
+static PLUGIN_GIT_IGNORE: &str = include_str!("../../assets/default-plugin-project/gitignore.txt");
+
 /// Initializes a new Rojo project.
 #[derive(Debug, Parser)]
 pub struct InitCommand {
@@ -28,7 +33,7 @@ pub struct InitCommand {
     #[clap(default_value = "")]
     pub path: PathBuf,
 
-    /// The kind of project to create, 'place' or 'model'. Defaults to place.
+    /// The kind of project to create, 'place', 'plugin', or 'model'. Defaults to place.
     #[clap(long, default_value = "place")]
     pub kind: InitKind,
 }
@@ -51,6 +56,7 @@ impl InitCommand {
         match self.kind {
             InitKind::Place => init_place(&base_path, project_params)?,
             InitKind::Model => init_model(&base_path, project_params)?,
+            InitKind::Plugin => init_plugin(&base_path, project_params)?,
         }
 
         println!("Created project successfully.");
@@ -65,8 +71,11 @@ pub enum InitKind {
     /// A place that contains a baseplate.
     Place,
 
-    /// An empty model, suitable for a library or plugin.
+    /// An empty model, suitable for a library.
     Model,
+
+    /// An empty plugin.
+    Plugin,
 }
 
 impl FromStr for InitKind {
@@ -76,8 +85,9 @@ impl FromStr for InitKind {
         match source {
             "place" => Ok(InitKind::Place),
             "model" => Ok(InitKind::Model),
+            "plugin" => Ok(InitKind::Plugin),
             _ => Err(format_err!(
-                "Invalid init kind '{}'. Valid kinds are: place, model",
+                "Invalid init kind '{}'. Valid kinds are: place, model, plugin",
                 source
             )),
         }
@@ -147,6 +157,29 @@ fn init_model(base_path: &Path, project_params: ProjectParams) -> anyhow::Result
     Ok(())
 }
 
+fn init_plugin(base_path: &Path, project_params: ProjectParams) -> anyhow::Result<()> {
+    println!("Creating new plugin project '{}'", project_params.name);
+
+    let project_file = project_params.render_template(PLUGIN_PROJECT);
+    try_create_project(base_path, &project_file)?;
+
+    let readme = project_params.render_template(PLUGIN_README);
+    write_if_not_exists(&base_path.join("README.md"), &readme)?;
+
+    let src = base_path.join("src");
+    fs::create_dir_all(&src)?;
+
+    write_if_not_exists(
+        &src.join("init.server.lua"),
+        "print(\"Hello world, from plugin!\")\n",
+    )?;
+
+    let git_ignore = project_params.render_template(PLUGIN_GIT_IGNORE);
+    try_git_init(base_path, &git_ignore)?;
+
+    Ok(())
+}
+
 /// Contains parameters used in templates to create a project.
 struct ProjectParams {
     name: String,