diff --git a/lib/cmds/template_generator.js b/lib/cmds/template_generator.js
index 50e922c47..5c51d4611 100644
--- a/lib/cmds/template_generator.js
+++ b/lib/cmds/template_generator.js
@@ -15,6 +15,11 @@ class TemplateGenerator {
     utils.cd(fspath);
     utils.sed('package.json', '%APP_NAME%', name);
 
+    if (name === 'embark_demo') {
+      console.log('Installing packages...'.green);
+      utils.runCmd('npm install');
+    }
+
     console.log('Init complete'.green);
     console.log('\nApp ready at '.green + fspath);