diff --git a/react-native-cli/index.js b/react-native-cli/index.js
index 7bd237e02..02a1cfdd2 100755
--- a/react-native-cli/index.js
+++ b/react-native-cli/index.js
@@ -7,6 +7,7 @@
 var fs = require('fs');
 var path = require('path');
 var spawn = require('child_process').spawn;
+var prompt = require("prompt");
 
 var CLI_MODULE_PATH = function() {
   return path.resolve(
@@ -65,6 +66,35 @@ function init(name) {
     process.exit(1);
   }
 
+  if (fs.existsSync(name)) {
+    createAfterConfirmation(name)
+  } else {
+    createProject(name);
+  }
+}
+
+function createAfterConfirmation(name) {
+    prompt.start();
+
+    var property = {
+      name: 'yesno',
+      message: 'Directory ' + name + ' already exist. Continue?',
+      validator: /y[es]*|n[o]?/,
+      warning: 'Must respond yes or no',
+      default: 'no'
+    };
+
+    prompt.get(property, function (err, result) {
+      if (result.yesno[0] === 'y') {
+        createProject(name);
+      } else {
+        console.log('Project initialization canceled');
+        process.exit();
+      }
+    });
+}
+
+function createProject(name) {
   var root = path.resolve(name);
   var projectName = path.basename(root);
 
diff --git a/react-native-cli/package.json b/react-native-cli/package.json
index 8644e7eae..90450c3ea 100644
--- a/react-native-cli/package.json
+++ b/react-native-cli/package.json
@@ -5,5 +5,8 @@
   "main": "index.js",
   "bin": {
     "react-native": "index.js"
+  },
+  "dependencies": {
+    "prompt": "^0.2.14"
   }
 }