diff --git a/Cargo.lock b/Cargo.lock
index f979c8d7b1..c1dc2ab75c 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -8775,6 +8775,7 @@ dependencies = [
  "spin-manifest",
  "tar",
  "tempfile",
+ "terminal",
  "tokio",
  "toml",
  "toml_edit",
diff --git a/crates/templates/Cargo.toml b/crates/templates/Cargo.toml
index 84c4704330..142054c8c5 100644
--- a/crates/templates/Cargo.toml
+++ b/crates/templates/Cargo.toml
@@ -27,6 +27,7 @@ spin-common = { path = "../common" }
 spin-manifest = { path = "../manifest" }
 tar = { workspace = true }
 tempfile = { workspace = true }
+terminal = { path = "../terminal" }
 tokio = { workspace = true, features = ["fs", "process", "rt", "macros"] }
 toml = { workspace = true }
 toml_edit = { workspace = true }
diff --git a/crates/templates/src/git.rs b/crates/templates/src/git.rs
index 75d75caa6e..e4618ce8d9 100644
--- a/crates/templates/src/git.rs
+++ b/crates/templates/src/git.rs
@@ -1,4 +1,6 @@
-use std::io::ErrorKind;
+use std::{io::ErrorKind, path::Path, process::Stdio};
+
+use anyhow::Context;
 
 // TODO: the following and the second half of plugins/git.rs are duplicates
 
@@ -46,3 +48,27 @@ impl UnderstandGitResult for Result<std::process::Output, std::io::Error> {
         }
     }
 }
+
+pub(crate) async fn is_in_git_repo(dir: &Path) -> anyhow::Result<bool> {
+    let mut cmd = tokio::process::Command::new("git");
+    cmd.arg("-C")
+        .arg(dir)
+        .arg("rev-parse")
+        .arg("--git-dir")
+        .stdout(Stdio::null())
+        .stderr(Stdio::null());
+
+    let status = cmd
+        .status()
+        .await
+        .context("checking if new app is in a git repo")?;
+    Ok(status.success())
+}
+
+pub(crate) async fn init_git_repo(dir: &Path) -> Result<(), GitError> {
+    let mut cmd = tokio::process::Command::new("git");
+    cmd.arg("-C").arg(dir).arg("init");
+
+    let result = cmd.output().await;
+    result.understand_git_result().map(|_| ())
+}
diff --git a/crates/templates/src/run.rs b/crates/templates/src/run.rs
index afea19a722..12098c5234 100644
--- a/crates/templates/src/run.rs
+++ b/crates/templates/src/run.rs
@@ -10,6 +10,7 @@ use walkdir::WalkDir;
 
 use crate::{
     cancellable::Cancellable,
+    git,
     interaction::{InteractionStrategy, Interactive, Silent},
     renderer::MergeTarget,
     template::{ExtraOutputAction, TemplateVariantInfo},
@@ -74,6 +75,8 @@ impl Run {
             .and_then(|t| t.render())
             .and_then_async(|o| async move { o.write().await })
             .await
+            .and_then_async(|_| self.maybe_initialise_git())
+            .await
             .err()
     }
 
@@ -352,6 +355,32 @@ impl Run {
         }
     }
 
+    async fn maybe_initialise_git(&self) -> anyhow::Result<()> {
+        if !matches!(self.options.variant, TemplateVariantInfo::NewApplication) {
+            return Ok(());
+        }
+
+        if self.options.no_vcs {
+            return Ok(());
+        }
+
+        let target_dir = self.generation_target_dir();
+
+        let skip_initing_repo = git::is_in_git_repo(&target_dir).await.unwrap_or(true);
+
+        if skip_initing_repo {
+            return Ok(());
+        }
+
+        if let Err(e) = git::init_git_repo(&target_dir).await {
+            if !matches!(e, git::GitError::ProgramNotFound) {
+                terminal::warn!("Spin was unable to initialise a Git repository. Run `git init` manually if you want one.");
+            }
+        }
+
+        Ok(())
+    }
+
     fn list_content_files(from: &Path) -> anyhow::Result<Vec<PathBuf>> {
         let walker = WalkDir::new(from);
         let files = walker