diff --git a/CHANGELOG.md b/CHANGELOG.md
index 54eb3da8..c664719e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,7 @@ and this project adheres to [Semantic Versioning].
 - New question: AddAllcontributors to add a section and config for <https://allcontributors.org> (#26)
 - `copy`, `recopy` and `update` from the copier API (#142)
 - When applying to existing projects, read Project.toml to infer a few values (#116)
+- Automatically determines the `PackageName` from the destination folder (#151)
 
 ### Changed
 
diff --git a/src/COPIERTemplate.jl b/src/COPIERTemplate.jl
index 075185b7..e0f97b84 100644
--- a/src/COPIERTemplate.jl
+++ b/src/COPIERTemplate.jl
@@ -37,6 +37,14 @@ function generate(src_path, dst_path, data::Dict = Dict(); kwargs...)
     end
     data = merge(existing_data, data)
   end
+  # If the PackageName was not given or guessed from the Project.toml, use the sanitized path
+  if !haskey(data, "PackageName")
+    package_name = _sanitize_package_name(dst_path)
+    if package_name != ""
+      @info "Using sanitized path $package_name as package name"
+      data["PackageName"] = package_name
+    end
+  end
   Copier.copy(src_path, dst_path, data; kwargs...)
 end
 
@@ -72,4 +80,16 @@ function _read_data_from_existing_path(dst_path)
   return data
 end
 
+"""
+    package_name = _sanitize_package_name(path)
+
+Sanitize the `path` to guess the package_name by looking at the
+base name and removing an extension. If the result is not a valid
+identifier, returns "".
+"""
+function _sanitize_package_name(dst_path)
+  package_name = dst_path |> basename |> splitext |> first
+  return Base.isidentifier(package_name) ? package_name : ""
+end
+
 end
diff --git a/test/runtests.jl b/test/runtests.jl
index 3d6fffd5..f12d5473 100644
--- a/test/runtests.jl
+++ b/test/runtests.jl
@@ -147,7 +147,6 @@ end
   mktempdir(TMPDIR; prefix = "existing_") do dir_existing
     cd(dir_existing) do
       Pkg.generate("NewPkg")
-      @info walkdir(".") |> collect
       COPIERTemplate.generate(
         template_path,
         "NewPkg/",
@@ -163,4 +162,31 @@ end
       @test answers["PackageOwner"] == "test"
     end
   end
+
+  @testset "Test automatic guessing the package name from the path" begin
+    mktempdir(TMPDIR; prefix = "path_is_dir_") do dir_path_is_dir
+      cd(dir_path_is_dir) do
+        data = Dict(key => value for (key, value) in template_options if key != "PackageName")
+        mkdir("some_folder")
+        COPIERTemplate.generate(
+          template_path,
+          "some_folder/SomePackage1.jl",
+          data;
+          quiet = true,
+          vcs_ref = "HEAD",
+        )
+        answers = YAML.load_file("some_folder/SomePackage1.jl/.copier-answers.yml")
+        @test answers["PackageName"] == "SomePackage1"
+        COPIERTemplate.generate(
+          template_path,
+          "some_folder/SomePackage2.jl",
+          merge(data, Dict("PackageName" => "OtherName"));
+          quiet = true,
+          vcs_ref = "HEAD",
+        )
+        answers = YAML.load_file("some_folder/SomePackage2.jl/.copier-answers.yml")
+        @test answers["PackageName"] == "OtherName"
+      end
+    end
+  end
 end