diff --git a/Makefile b/Makefile
index a606a0acea..4c01f68e40 100644
--- a/Makefile
+++ b/Makefile
@@ -5,7 +5,7 @@ BUILD_TAGS = netgo ledger
 BUILD_FLAGS = -tags "${BUILD_TAGS}" -ldflags "-X github.com/cosmos/cosmos-sdk/version.GitCommit=${COMMIT_HASH}"
 GCC := $(shell command -v gcc 2> /dev/null)
 LEDGER_ENABLED ?= true
-all: get_tools get_vendor_deps install install_examples test_lint test
+all: get_tools get_vendor_deps install install_examples install_cosmos-sdk-cli test_lint test
 
 ########################################
 ### CI
@@ -37,6 +37,13 @@ endif
 build-linux:
 	LEDGER_ENABLED=false GOOS=linux GOARCH=amd64 $(MAKE) build
 
+build_cosmos-sdk-cli:
+ifeq ($(OS),Windows_NT)
+	go build $(BUILD_FLAGS) -o build/cosmos-sdk-cli.exe ./cmd/cosmos-sdk-cli
+else
+	go build $(BUILD_FLAGS) -o build/cosmos-sdk-cli ./cmd/cosmos-sdk-cli
+endif
+
 build_examples:
 ifeq ($(OS),Windows_NT)
 	go build $(BUILD_FLAGS) -o build/basecoind.exe ./examples/basecoin/cmd/basecoind
@@ -60,6 +67,9 @@ install_examples:
 	go install $(BUILD_FLAGS) ./examples/democoin/cmd/democoind
 	go install $(BUILD_FLAGS) ./examples/democoin/cmd/democli
 
+install_cosmos-sdk-cli:
+	go install $(BUILD_FLAGS) ./cmd/cosmos-sdk-cli
+
 install_debug:
 	go install $(BUILD_FLAGS) ./cmd/gaia/cmd/gaiadebug
 
@@ -198,7 +208,7 @@ remotenet-status:
 # To avoid unintended conflicts with file names, always add to .PHONY
 # unless there is a reason not to.
 # https://www.gnu.org/software/make/manual/html_node/Phony-Targets.html
-.PHONY: build build_examples install install_examples install_debug dist \
+.PHONY: build build_cosmos-sdk-cli build_examples install install_examples install_cosmos-sdk-cli install_debug dist \
 check_tools get_tools get_vendor_deps draw_deps test test_cli test_unit \
 test_cover test_lint benchmark devdoc_init devdoc devdoc_save devdoc_update \
 build-linux build-docker-gaiadnode localnet-start localnet-stop remotenet-start \
diff --git a/PENDING.md b/PENDING.md
index 3d6d0d92de..f297e6a4af 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -6,6 +6,8 @@ BREAKING CHANGES
 
 FEATURES
 * [lcd] Can now query governance proposals by ProposalStatus
+* Added support for cosmos-sdk-cli tool under cosmos-sdk/cmd	
+   * This allows SDK users to init a new project repository with a single command.
 
 IMPROVEMENTS
 * [baseapp] Allow any alphanumeric character in route
diff --git a/cmd/cosmos-sdk-cli/cmd/init.go b/cmd/cosmos-sdk-cli/cmd/init.go
new file mode 100644
index 0000000000..5a0f3ddb38
--- /dev/null
+++ b/cmd/cosmos-sdk-cli/cmd/init.go
@@ -0,0 +1,152 @@
+package cmd
+
+import (
+	"fmt"
+	"go/build"
+	"io/ioutil"
+	"os"
+	"strings"
+
+	"github.com/cosmos/cosmos-sdk/version"
+	"github.com/spf13/cobra"
+	tmversion "github.com/tendermint/tendermint/version"
+	"path/filepath"
+)
+
+var remoteBasecoinPath = "github.com/cosmos/cosmos-sdk/examples/basecoin"
+
+// Replacer to replace all instances of basecoin/basecli/BasecoinApp to project specific names
+// Gets initialized when initCmd is executing after getting the project name from user
+var replacer *strings.Replacer
+
+// Remote path for the project.
+var remoteProjectPath string
+
+func init() {
+	initCmd.Flags().StringVarP(&remoteProjectPath, "project-path", "p", "", "Remote project path. eg: github.com/your_user_name/project_name")
+	rootCmd.AddCommand(initCmd)
+}
+
+var initCmd = &cobra.Command{
+	Use:   "init [ProjectName]",
+	Short: "Initialize your new cosmos zone",
+	Args:  cobra.ExactArgs(1),
+	RunE: func(cmd *cobra.Command, args []string) error {
+		fmt.Print("Thanks for choosing Cosmos-SDK to build your project.\n\n")
+		projectName := args[0]
+		capitalizedProjectName := strings.Title(projectName)
+		shortProjectName := strings.ToLower(projectName)
+		remoteProjectPath = strings.ToLower(strings.TrimSpace(remoteProjectPath))
+		if remoteProjectPath == "" {
+			remoteProjectPath = strings.ToLower(shortProjectName)
+		}
+		replacer = strings.NewReplacer("basecli", shortProjectName+"cli",
+			"basecoind", shortProjectName+"d",
+			"BasecoinApp", capitalizedProjectName+"App",
+			remoteBasecoinPath, remoteProjectPath,
+			"basecoin", shortProjectName)
+		setupBasecoinWorkspace(shortProjectName, remoteProjectPath)
+		return nil
+	},
+}
+
+func resolveProjectPath(remoteProjectPath string) string {
+	gopath := os.Getenv("GOPATH")
+	if gopath == "" {
+		gopath = build.Default.GOPATH
+		// Use $HOME/go
+	}
+	return gopath + string(os.PathSeparator) + "src" + string(os.PathSeparator) + remoteProjectPath
+}
+
+func copyBasecoinTemplate(projectName string, projectPath string, remoteProjectPath string) {
+	basecoinProjectPath := resolveProjectPath(remoteBasecoinPath)
+	filepath.Walk(basecoinProjectPath, func(path string, f os.FileInfo, err error) error {
+		if !f.IsDir() {
+			data, err := ioutil.ReadFile(path)
+			if err != nil {
+				return err
+			}
+			contents := string(data)
+			// Extract relative file path eg: app/app.go instead of /Users/..../github.com/cosmos/...examples/basecoin/app/app.go
+			relativeFilePath := path[len(basecoinProjectPath)+1:]
+			// Evaluating the filepath in the new project folder
+			projectFilePath := projectPath + string(os.PathSeparator) + relativeFilePath
+			projectFilePath = replacer.Replace(projectFilePath)
+			lengthOfRootDir := strings.LastIndex(projectFilePath, string(os.PathSeparator))
+			// Extracting the path of root directory from the filepath
+			rootDir := projectFilePath[0:lengthOfRootDir]
+			// Creating the required directory first
+			os.MkdirAll(rootDir, os.ModePerm)
+			fmt.Println("Creating " + projectFilePath)
+			// Writing the contents to a file in the project folder
+			contents = replacer.Replace(contents)
+			ioutil.WriteFile(projectFilePath, []byte(contents), os.ModePerm)
+		}
+		return nil
+	})
+}
+
+func createGopkg(projectPath string) {
+	// Create gopkg.toml file
+	dependencies := map[string]string{
+		"github.com/cosmos/cosmos-sdk": "=" + version.Version,
+		"github.com/stretchr/testify":  "=1.2.1",
+		"github.com/spf13/cobra":       "=0.0.1",
+		"github.com/spf13/viper":       "=1.0.0",
+	}
+	overrides := map[string]string{
+		"github.com/golang/protobuf":       "1.1.0",
+		"github.com/tendermint/tendermint": tmversion.Version,
+	}
+	contents := ""
+	for dependency, version := range dependencies {
+		contents += "[[constraint]]\n\tname = \"" + dependency + "\"\n\tversion = \"" + version + "\"\n\n"
+	}
+	for dependency, version := range overrides {
+		contents += "[[override]]\n\tname = \"" + dependency + "\"\n\tversion = \"=" + version + "\"\n\n"
+	}
+	contents += "[prune]\n\tgo-tests = true\n\tunused-packages = true"
+	ioutil.WriteFile(projectPath+"/Gopkg.toml", []byte(contents), os.ModePerm)
+}
+
+func createMakefile(projectPath string) {
+	// Create makefile
+	// TODO: Should we use tools/ directory as in Cosmos-SDK to get tools for linting etc.
+	makefileContents := `PACKAGES=$(shell go list ./... | grep -v '/vendor/')
+
+all: get_tools get_vendor_deps build test
+
+get_tools:
+	go get github.com/golang/dep/cmd/dep
+
+build:
+	go build -o bin/basecli cmd/basecli/main.go && go build -o bin/basecoind cmd/basecoind/main.go
+
+get_vendor_deps:
+	@rm -rf vendor/
+	@dep ensure
+
+test:
+	@go test $(PACKAGES)
+
+benchmark:
+	@go test -bench=. $(PACKAGES)
+
+.PHONY: all build test benchmark`
+
+	// Replacing instances of base* to project specific names
+	makefileContents = replacer.Replace(makefileContents)
+
+	ioutil.WriteFile(projectPath+"/Makefile", []byte(makefileContents), os.ModePerm)
+
+}
+
+func setupBasecoinWorkspace(projectName string, remoteProjectPath string) {
+	projectPath := resolveProjectPath(remoteProjectPath)
+	fmt.Println("Configuring your project in " + projectPath)
+	copyBasecoinTemplate(projectName, projectPath, remoteProjectPath)
+	createGopkg(projectPath)
+	createMakefile(projectPath)
+	fmt.Printf("\nInitialized a new project at %s.\nHappy hacking!\n", projectPath)
+}
diff --git a/cmd/cosmos-sdk-cli/cmd/root.go b/cmd/cosmos-sdk-cli/cmd/root.go
new file mode 100644
index 0000000000..2eddd79b5d
--- /dev/null
+++ b/cmd/cosmos-sdk-cli/cmd/root.go
@@ -0,0 +1,21 @@
+package cmd
+
+import (
+	"fmt"
+	"os"
+
+	"github.com/spf13/cobra"
+)
+
+var rootCmd = &cobra.Command{
+	Use:   "cosmos-sdk-cli",
+	Short: "Tools to develop on cosmos-sdk",
+}
+
+// Execute the command
+func Execute() {
+	if err := rootCmd.Execute(); err != nil {
+		fmt.Println(err)
+		os.Exit(1)
+	}
+}
diff --git a/cmd/cosmos-sdk-cli/main.go b/cmd/cosmos-sdk-cli/main.go
new file mode 100644
index 0000000000..ee5ac02156
--- /dev/null
+++ b/cmd/cosmos-sdk-cli/main.go
@@ -0,0 +1,9 @@
+package main
+
+import (
+	"github.com/cosmos/cosmos-sdk/cmd/cosmos-sdk-cli/cmd"
+)
+
+func main() {
+	cmd.Execute()
+}
diff --git a/docs/sdk/cosmos-sdk-cli.md b/docs/sdk/cosmos-sdk-cli.md
new file mode 100644
index 0000000000..615d722522
--- /dev/null
+++ b/docs/sdk/cosmos-sdk-cli.md
@@ -0,0 +1,34 @@
+# cosmos-sdk-cli 
+Create a new blockchain project based on cosmos-sdk with a single command.
+
+---
+
+# Installation
+
+```shell
+$ go get github.com/cosmos/cosmos-sdk
+$ cd $GOPATH/src/github.com/cosmos/cosmos-sdk
+$ make install_cosmos-sdk-cli
+```
+
+This will install a binary cosmos-sdk-cli
+
+# Creating a new project
+
+**$cosmos-sdk-cli init** _Your-Project-Name_
+
+This will initialize a project, the dependencies, directory structures with the specified project name.
+
+### Example:
+```shell
+$ cosmos-sdk-cli init testzone -p github.com/your_user_name/testzone
+```
+`-p [remote-project-path]`. If this is not provided, it creates testzone under $GOPATH/src/
+
+
+```shell
+$ cd $GOPATH/src/github.com/your_user_name/testzone
+$ make
+```
+This will create two binaries(testzonecli and testzoned) under bin folder. testzoned is the full node of the application which you can run, and testzonecli is your light client.
+