diff --git a/README.md b/README.md
index 4e06173..083363a 100644
--- a/README.md
+++ b/README.md
@@ -47,6 +47,7 @@ Feel free to use these exercises, that's why they're public!
 ## Suggested Learning Path
 
 Setup
+ - [project-init](./gradle-init/README.md) - Create a new gradle project
  - [gradle-wrapper-basics](./gradle-wrapper-basics/README.md) - Use the gradle wrapper to ensure that the correct gradle version is used.
 
 Task creation
diff --git a/project-init/README.md b/project-init/README.md
new file mode 100644
index 0000000..4aeb919
--- /dev/null
+++ b/project-init/README.md
@@ -0,0 +1,20 @@
+# Gradle Kata: Project initialization
+
+This kata will describe how to create a new gradle project.
+
+## Setup
+
+Run `source setup.sh`
+
+## The task
+
+1. Run the command `gradle init`. When prompted, choose
+   * Project type: basic
+   * DSL: Groovy
+   * Project name: exercise
+1. Explore the generated files
+1. Run the command `gradle projects`
+1. Observe the name of your root project
+1. Rename your root project by changing `rootProject.name` in `settings.gradle`
+1. Run the command `gradle projects` again
+1. Observe the updated name of your root project
diff --git a/project-init/setup.sh b/project-init/setup.sh
new file mode 100644
index 0000000..10051c4
--- /dev/null
+++ b/project-init/setup.sh
@@ -0,0 +1,4 @@
+#!/bin/bash
+
+source ../.shared/utils.sh
+initkata_basic
\ No newline at end of file
diff --git a/setup/README.md b/setup/README.md
deleted file mode 100644
index 805c7b5..0000000
--- a/setup/README.md
+++ /dev/null
@@ -1,10 +0,0 @@
-# Gradle setup
-
-## Creating a Gradle project
-
-Setting up a Gradle project is fairly easy. A single command will provide you with the files and folder necessary.
-
-- Run the command `./gradlew init`
-- Explore the generated files
-- Run the command `./gradlew projects`
-- Observe the name of your root project