diff --git a/app/templates/README.md b/app/templates/README.md
new file mode 100644
index 000000000..bb4def0ce
--- /dev/null
+++ b/app/templates/README.md
@@ -0,0 +1,35 @@
+# <%= _.slugify(_.humanize(appname)) %>
+
+This project was generated with the [Angular Full-Stack Generator](https://github.com/DaftMonk/generator-angular-fullstack) version <%= pkg.version %>.
+
+## Getting Started
+
+### Prerequisites
+
+- [Git](https://git-scm.com/)
+- [Node.js and NPM](nodejs.org) >= v0.10.0
+- [Bower](bower.io) (`npm install --global bower`)<% if(filters.sass) { %>
+- [Ruby](https://www.ruby-lang.org) and then `gem install sass`<% } if(filters.grunt) { %>
+- [Grunt](http://gruntjs.com/) (`npm install --global grunt-cli`)<% } if(filters.gulp) { %>
+- [Gulp](http://gulpjs.com/) (`npm install --global gulp`)<% } if(filters.babel) { %>
+- [Babel](https://babeljs.io) (`npm install --global babel`)<% } if(filters.mongoose) { %>
+- [MongoDB](https://www.mongodb.org/) - Keep a running daemon with `mongod`<% } if(filters.sequelize) { %>
+- [SQLite](https://www.sqlite.org/quickstart.html)<% } %>
+
+### Developing<% var i = 1; %>
+
+<%= i++ %>. Run `npm install` to install server dependencies.
+
+<%= i++ %>. Run `bower install` to install front-end dependencies.<% if(filters.mongoose) { %>
+
+<%= i++ %>. Run `mongod` in a separate shell to keep an instance of the MongoDB Daemon running<% } %>
+
+<%= i++ %>. Run <% if(filters.grunt) { %>`grunt serve`<% } if(filters.grunt && filters.gulp) { %> or <% } if(filters.gulp) { %>`gulp serve`<% } %> to start the development server. It should automatically open the client in your browser when ready.
+
+## Build & development
+
+Run `grunt build` for building and `grunt serve` for preview.
+
+## Testing
+
+Running `npm test` will run the unit tests with karma.
diff --git a/test/test-file-creation.js b/test/test-file-creation.js
index bf5f00301..35fe2055c 100644
--- a/test/test-file-creation.js
+++ b/test/test-file-creation.js
@@ -212,7 +212,8 @@ describe('angular-fullstack generator', function () {
       'bower.json',
       'karma.conf.js',
       'mocha.conf.js',
-      'protractor.conf.js'
+      'protractor.conf.js',
+      'README.md'
     ]);
 
     /* Ui-Router */