diff --git a/bin/cmd.js b/bin/cmd.js
index ca39b1d..472087e 100755
--- a/bin/cmd.js
+++ b/bin/cmd.js
@@ -3,59 +3,67 @@
 
 var doctest = require('../lib/doctest');
 
+var defaults = require('../src/defaults.js');
+
 var fs = require('fs');
 
 var glob = require('glob');
 
-var CONFIG_FILEPATH = process.cwd() + '/.markdown-doctest-setup.js';
 var DEFAULT_GLOB = '**/*.+(md|markdown)';
 var DEFAULT_IGNORE = [
   '**/node_modules/**',
   '**/bower_components/**'
 ];
 
-function displayHelp () {
+const FAIL = 1;
+const SUCCESS = 0;
+
+function displayHelp() {
   const helpText = [
     'Usage: markdown-doctest [glob]',
     'Options:',
-    '  -h, --help    output help text'
+    '  -h, --help    output help text',
+    '  -i, --init    initialize setup file'
   ];
 
   console.log(helpText.join('\n'));
 }
 
-function main () {
-  var userGlob = process.argv[2];
-  var config = {require: {}};
+function main(args) {
 
-  if (process.argv.indexOf('--help') !== -1 || process.argv.indexOf('-h') !== -1) {
-    displayHelp();
+  args = args || process.argv
+  
+  var userGlob = args[2];
+  var config = { require: {} };
 
-    process.exitCode = 0;
+  if (args.indexOf('--help') !== -1 || args.indexOf('-h') !== -1) {
+    displayHelp();
+    process.exitCode = SUCCESS;
+    return;
+  }
 
+  if (userGlob == '--init' || userGlob == '-i') {
+    process.exitCode = defaults.createSetupFile()
     return;
   }
 
-  if (fs.existsSync(CONFIG_FILEPATH)) {
-    try {
-      config = require(CONFIG_FILEPATH);
-    } catch (e) {
-      console.log('Error running .markdown-doctest-setup.js:');
-      console.error(e);
-      process.exitCode = 1;
-      return;
+  if(defaults.setupFileExists()) {
+    config = defaults.getSetupFile()
+    if(!config) {
+      process.exitCode = FAIL;
+      return
     }
   }
-
+  
   var ignoredDirectories = config.ignore || [];
 
   glob(
     userGlob || DEFAULT_GLOB,
-    {ignore: DEFAULT_IGNORE.concat(ignoredDirectories)},
+    { ignore: DEFAULT_IGNORE.concat(ignoredDirectories) },
     run
   );
 
-  function run (err, files) {
+  function run(err, files) {
     if (err) {
       console.trace(err);
     }
@@ -69,7 +77,7 @@ function main () {
     var failures = results.filter(function (result) { return result.status === 'fail'; });
 
     if (failures.length > 0) {
-      process.exitCode = 1;
+      process.exitCode = FAIL;
     }
   }
 }
diff --git a/src/defaults.js b/src/defaults.js
new file mode 100644
index 0000000..d844458
--- /dev/null
+++ b/src/defaults.js
@@ -0,0 +1,95 @@
+'use strict';
+
+var fs = require('fs');
+
+var CONFIG_FILEPATH = process.cwd() + '/.markdown-doctest-setup.js';
+var PACKAGE_FILEPATH = process.cwd() + '/package.json';
+
+const FAIL = 1;
+const SUCCESS = 0;
+
+const ERR_SETUP_FILE_READ_FAIL = 'Error running .markdown-doctest-setup.js:';
+const ERR_SETUP_FILE_ALREADY_EXISTS = 'Error creating .markdown-doctest-setup.js: File already exists\n';
+const ERR_SETUP_FILE_CREATE_FAIL = 'Error creating .markdown-doctest-setup.js:';
+const ERR_PACKAGE_FILE_DOESNT_EXIST = 'Error finding package.json\n';
+const ERR_PACKAGE_FILE_READ_FAIL = 'Error reading package.json:';
+const SETUP_FILE_CREATED = 'Successfully created .markdown-doctest-setup.js with default values\n';
+
+
+function defaultSetup(name) {
+    var content =
+`
+const packageName = require('.');
+
+module.exports = {
+  require: {
+    '${ name }' : packageName
+  },
+  globals: {
+    '${ name }' : packageName 
+  } 
+}
+
+`
+    return content;
+}
+
+function createSetupFile() {
+
+    if (setupFileExists()) {
+        console.log(ERR_SETUP_FILE_ALREADY_EXISTS);
+        return FAIL;
+    }
+
+    if (!packageFileExists()) {
+        console.log(ERR_PACKAGE_FILE_DOESNT_EXIST)
+        return FAIL;
+    }
+
+    // retrieve package name from package.json to put into defaults
+    var packageConfig;
+
+    try {
+        packageConfig = require(PACKAGE_FILEPATH)
+    } catch (e) {
+        console.log(ERR_PACKAGE_FILE_READ_FAIL);
+        console.error(e);
+        return FAIL;
+    }
+
+    try {
+        fs.writeFile(
+            CONFIG_FILEPATH,
+            defaultSetup(packageConfig.name)
+        )
+    } catch (e) {
+        console.log(ERR_SETUP_FILE_CREATE_FAIL);
+        console.error(e);
+        return FAIL;
+    }
+
+    console.log(SETUP_FILE_CREATED);
+    return SUCCESS;
+}
+
+function packageFileExists() {
+    return fs.existsSync(PACKAGE_FILEPATH);
+}
+
+function setupFileExists() {
+    return fs.existsSync(CONFIG_FILEPATH);
+}
+
+function getSetupFile() {
+
+    try {
+        return require(CONFIG_FILEPATH);
+    } catch (e) {
+        console.log(ERR_SETUP_FILE_READ_FAIL);
+        console.error(e);
+        return null;
+    }
+
+}
+
+module.exports = { createSetupFile, setupFileExists, getSetupFile }
\ No newline at end of file