diff --git a/Alloy/commands/new/index.js b/Alloy/commands/new/index.js
index 98de85b77..d356cee9c 100755
--- a/Alloy/commands/new/index.js
+++ b/Alloy/commands/new/index.js
@@ -16,6 +16,7 @@ var path = require('path'),
 
 var BASE_ERR = 'Project creation failed. ';
 var platformsDir = path.join(__dirname,'..','..','..','platforms');
+var templatesDir = path.join(__dirname, '..', '..', '..', 'templates');
 
 var test_apps_folder = (process.platform === 'win32') ?
 	path.join(process.env.APPDATA, 'npm', 'node_modules', 'alloy', 'test', 'apps') :
@@ -60,6 +61,9 @@ module.exports = function(args, program) {
 	// add the default app.tss file
 	U.copyFileSync(path.join(paths.template,CONST.GLOBAL_STYLE), path.join(paths.app,CONST.DIR.STYLE,CONST.GLOBAL_STYLE));
 
+	// copy DefaultIcon.png to project root
+	U.copyFileSync(path.join(templatesDir, 'DefaultIcon.png'), path.join(paths.project, 'DefaultIcon.png'));
+
 	// copy Resources platform-specific directories to assets
 	U.copyFileSync(
 		path.join(paths.template,'gitignore.txt'),
diff --git a/package.json b/package.json
index 7b69ca024..5218f7433 100644
--- a/package.json
+++ b/package.json
@@ -14,7 +14,7 @@
     "mobileweb",
     "appc-client"
   ],
-  "version": "1.7.6",
+  "version": "1.7.7",
   "author": "Appcelerator, Inc. <info@appcelerator.com>",
   "maintainers": [
     {
diff --git a/templates/DefaultIcon.png b/templates/DefaultIcon.png
new file mode 100644
index 000000000..a98a73abc
Binary files /dev/null and b/templates/DefaultIcon.png differ