2 files changed, 21 insertions, 0 deletions
diff --git a/spec/features/projects/new_project_spec.rb b/spec/features/projects/new_project_spec.rb
index fee6287558e..3876e0cc3b1 100644
--- a/spec/features/projects/new_project_spec.rb
+++ b/spec/features/projects/new_project_spec.rb
@@ -48,6 +48,15 @@ feature 'New project' do
     end
   end
 
+  context 'Readme selector' do
+    it 'shows the initialize with Readme checkbox' do
+      visit new_project_path
+
+      expect(page).to have_css('input#project_initialize_with_readme')
+      expect(page).to have_content('Initialize repository with a README')
+    end
+  end
+
   context 'Namespace selector' do
     context 'with user namespace' do
       before do
diff --git a/spec/services/projects/create_service_spec.rb b/spec/services/projects/create_service_spec.rb
index e8cbf84e3be..4e4329e898e 100644
--- a/spec/services/projects/create_service_spec.rb
+++ b/spec/services/projects/create_service_spec.rb
@@ -236,6 +236,18 @@ describe Projects::CreateService, '#execute' do
     end
   end
 
+  context 'when readme initialization is requested' do
+    it 'creates README.md' do
+      opts[:initialize_with_readme] = '1'
+
+      project = create_project(user, opts)
+
+      expect(project.repository.commit_count).to be(1)
+      expect(project.repository.readme.name).to eql('README.md')
+      expect(project.repository.readme.data).to include('# GitLab')
+    end
+  end
+
   context 'when there is an active service template' do
     before do
       create(:service, project: nil, template: true, active: true)