diff --git a/features/with_config.feature b/features/with_config.feature
new file mode 100644
index 0000000..fba8200
--- /dev/null
+++ b/features/with_config.feature
@@ -0,0 +1,25 @@
+Feature: Adding the --with_config flag
+  As a cucumber author
+  I want FigNewton and a config environment setup
+  So that I can avoid manually configuring them for every project
+
+  Background:
+    When I run `testgen project sample --with_config`
+
+  Scenario: Adding the fig_newton gem to Gemfile
+    Then a file named "sample/Gemfile" should exist
+    And the file "sample/Gemfile" should contain "gem 'fig_newton'"
+
+  Scenario: Adding fig_newton to env.rb
+    Then a file named "sample/features/support/env.rb" should exist
+    And the file "sample/features/support/env.rb" should contain "require 'fig_newton'"
+
+  Scenario: Creating the config set of directories
+    Then the following directories should exist:
+      | sample/config              |
+      | sample/config/environments |
+
+  Scenario: Generating the cucumber.yml file in the config folder
+    Then a file named "sample/config/cucumber.yml" should exist
+    And a file named "sample/cucumber.yml" should not exist
+    And the file "sample/config/cucumber.yml" should contain "default: --no-source --color --format pretty"
diff --git a/lib/testgen/cli.rb b/lib/testgen/cli.rb
index 6ffec68..b29627b 100644
--- a/lib/testgen/cli.rb
+++ b/lib/testgen/cli.rb
@@ -8,12 +8,14 @@ class CLI < Thor
     method_option :with_lib, :type => :boolean, :desc => "Place shared objects under lib directory"
     method_option :with_mohawk, :type => :boolean, :desc => 'Adds support for mohawk gem'
     method_option :with_appium, :type => :boolean, :desc => 'Add support for appium'
+    method_option :with_config, :type => :boolean, :desc => 'Add config/environments directories and FigNewton gem'
 
     def project(name)
       with_lib = options[:with_lib] ? 'true' : 'false'
       with_mohawk = options[:with_mohawk] ? 'true' : 'false'
       with_appium = options[:with_appium] ? 'true' : 'false'
-      TestGen::Generators::Project.start([name, with_lib, with_mohawk, with_appium])
+      with_config = options[:with_config] ? 'true' : 'false'
+      TestGen::Generators::Project.start([name, with_lib, with_mohawk, with_appium, with_config])
     end
     
   end
diff --git a/lib/testgen/generators/project.rb b/lib/testgen/generators/project.rb
index b520d00..9594de1 100644
--- a/lib/testgen/generators/project.rb
+++ b/lib/testgen/generators/project.rb
@@ -4,52 +4,64 @@ module TestGen
   module Generators
     class Project < Thor::Group
       include Thor::Actions
-    
+
       argument :name, :type => :string, :desc => 'The name of the project'
       argument :with_lib, :type => :string, :desc => 'Place all shared objects in the lib directory'
       argument :with_mohawk, :type => :string, :desc => 'Add support for the mohawk gem'
       argument :with_appium, :type => :string, :desc => 'Add support for appium gem'
+      argument :with_config, :type => :string, :desc => 'Add config/environments directories and FigNewton gem'
 
       desc "Generates a project structure for testing with Cucumber"
-      
+
       def self.source_root
         File.dirname(__FILE__) + "/project"
       end
-    
+
       def create_top_directory
         empty_directory(name)
       end
-      
-      def copy_cucumber_yml
-        template "cucumber.yml.tt", "#{name}/cucumber.yml"
-      end
-    
+
       def copy_gemfile
         template "Gemfile.tt", "#{name}/Gemfile"
       end
-      
+
       def copy_rakefile
         copy_file "Rakefile", "#{name}/Rakefile"
       end
-      
+
       def create_cucumber_directories
         empty_directory("#{name}/features")
         empty_directory("#{name}/features/support")
         empty_directory("#{name}/features/step_definitions")
       end
-      
+
+      def create_config_directories
+        if gen_config
+          empty_directory("#{name}/config")
+          empty_directory("#{name}/config/environments")
+        end
+      end
+
+      def copy_cucumber_yml
+        if gen_config
+          template "cucumber.yml.tt", "#{name}/config/cucumber.yml"
+        else
+          template "cucumber.yml.tt", "#{name}/cucumber.yml"
+        end
+      end
+
       def copy_env
         template "env.rb.tt", "#{name}/features/support/env.rb"
       end
-      
+
       def copy_hooks
         template "hooks.rb.tt", "#{name}/features/support/hooks.rb" if gen_pageobject
       end
-      
+
       def create_lib_directory
         empty_directory("#{name}/lib") if gen_lib
       end
-      
+
       def create_pages_directory
         if gen_lib
           empty_directory("#{name}/lib/pages") if gen_pageobject
@@ -59,16 +71,20 @@ def create_pages_directory
           empty_directory("#{name}/features/support/screens") unless gen_pageobject
         end
       end
-      
+
       private
 
       def gen_pageobject
         with_mohawk == 'false' && with_appium == 'false'
       end
-      
+
       def gen_lib
         with_lib == 'true'
       end
+
+      def gen_config
+        with_config == 'true'
+      end
     end
   end
 end
diff --git a/lib/testgen/generators/project/Gemfile.tt b/lib/testgen/generators/project/Gemfile.tt
index 6ee8278..efb6dfa 100644
--- a/lib/testgen/generators/project/Gemfile.tt
+++ b/lib/testgen/generators/project/Gemfile.tt
@@ -7,6 +7,9 @@ gem 'rake'
 gem 'page-object', '~> 2.0'
 gem 'data_magic'
 <% end -%>
+<% if with_config =='true' -%>
+gem 'fig_newton'
+<% end -%>
 <% if with_lib == 'true' or with_appium == 'true' -%>
 gem 'require_all'
 <% end -%>
diff --git a/lib/testgen/generators/project/env.rb.tt b/lib/testgen/generators/project/env.rb.tt
index cc6cec9..c325693 100644
--- a/lib/testgen/generators/project/env.rb.tt
+++ b/lib/testgen/generators/project/env.rb.tt
@@ -7,6 +7,9 @@ require 'rspec'
 require 'page-object'
 require 'data_magic'
 <% end -%>
+<% if with_config == 'true' -%>
+require 'fig_newton'
+<% end -%>
 <% if with_mohawk == 'true' -%>
 require 'mohawk'
 require 'win32/screenshot'