diff --git a/org.eclipse.jgit.pgm.test/META-INF/MANIFEST.MF b/org.eclipse.jgit.pgm.test/META-INF/MANIFEST.MF
index 1f70e98..286c6d9 100644
--- a/org.eclipse.jgit.pgm.test/META-INF/MANIFEST.MF
+++ b/org.eclipse.jgit.pgm.test/META-INF/MANIFEST.MF
@@ -25,6 +25,7 @@
  org.eclipse.jgit.util;version="[4.4.0,4.5.0)",
  org.eclipse.jgit.util.io;version="[4.4.0,4.5.0)",
  org.hamcrest.core;bundle-version="[1.1.0,2.0.0)",
- org.junit;version="[4.4.0,5.0.0)",
+ org.junit;version="[4.11.0,5.0.0)",
+ org.junit.rules;version="[4.11.0,5.0.0)",
  org.kohsuke.args4j;version="[2.0.12,2.1.0)"
 Require-Bundle: org.tukaani.xz;bundle-version="[1.3.0,2.0.0)"
diff --git a/org.eclipse.jgit.pgm.test/tst/org/eclipse/jgit/pgm/InitTest.java b/org.eclipse.jgit.pgm.test/tst/org/eclipse/jgit/pgm/InitTest.java
new file mode 100644
index 0000000..c7dbc24
--- /dev/null
+++ b/org.eclipse.jgit.pgm.test/tst/org/eclipse/jgit/pgm/InitTest.java
@@ -0,0 +1,90 @@
+/*
+ * Copyright (C) 2016, Rüdiger Herrmann <ruediger.herrmann@gmx.de>
+ * and other copyright owners as documented in the project's IP log.
+ *
+ * This program and the accompanying materials are made available
+ * under the terms of the Eclipse Distribution License v1.0 which
+ * accompanies this distribution, is reproduced below, and is
+ * available at http://www.eclipse.org/org/documents/edl-v10.php
+ *
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or
+ * without modification, are permitted provided that the following
+ * conditions are met:
+ *
+ * - Redistributions of source code must retain the above copyright
+ *   notice, this list of conditions and the following disclaimer.
+ *
+ * - Redistributions in binary form must reproduce the above
+ *   copyright notice, this list of conditions and the following
+ *   disclaimer in the documentation and/or other materials provided
+ *   with the distribution.
+ *
+ * - Neither the name of the Eclipse Foundation, Inc. nor the
+ *   names of its contributors may be used to endorse or promote
+ *   products derived from this software without specific prior
+ *   written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND
+ * CONTRIBUTORS "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES,
+ * INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
+ * OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE
+ * ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT OWNER OR
+ * CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ * SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT
+ * NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
+ * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER
+ * CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
+ * STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE)
+ * ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF
+ * ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ */
+
+package org.eclipse.jgit.pgm;
+
+import static org.junit.Assert.assertArrayEquals;
+
+import java.io.File;
+
+import org.eclipse.jgit.lib.CLIRepositoryTestCase;
+import org.eclipse.jgit.lib.Constants;
+import org.junit.Rule;
+import org.junit.Test;
+import org.junit.rules.TemporaryFolder;
+
+public class InitTest extends CLIRepositoryTestCase {
+
+	@Rule
+	public final TemporaryFolder tempFolder = new TemporaryFolder();
+
+	@Test
+	public void testInitBare() throws Exception {
+		File directory = tempFolder.getRoot();
+
+		String[] result = execute(
+				"git init '" + directory.getCanonicalPath() + "' --bare");
+
+		String[] expecteds = new String[] {
+				"Initialized empty Git repository in "
+						+ directory.getCanonicalPath(),
+				"" };
+		assertArrayEquals(expecteds, result);
+	}
+
+	@Test
+	public void testInitDirectory() throws Exception {
+		File workDirectory = tempFolder.getRoot();
+		File gitDirectory = new File(workDirectory, Constants.DOT_GIT);
+
+		String[] result = execute(
+				"git init '" + workDirectory.getCanonicalPath() + "'");
+
+		String[] expecteds = new String[] {
+				"Initialized empty Git repository in "
+						+ gitDirectory.getCanonicalPath(),
+				"" };
+		assertArrayEquals(expecteds, result);
+	}
+
+}
diff --git a/org.eclipse.jgit.pgm/src/org/eclipse/jgit/pgm/Init.java b/org.eclipse.jgit.pgm/src/org/eclipse/jgit/pgm/Init.java
index b3e73b5..a7bee7f 100644
--- a/org.eclipse.jgit.pgm/src/org/eclipse/jgit/pgm/Init.java
+++ b/org.eclipse.jgit.pgm/src/org/eclipse/jgit/pgm/Init.java
@@ -4,6 +4,7 @@
  * Copyright (C) 2010, Robin Rosenberg <robin.rosenberg@dewire.com>
  * Copyright (C) 2010, Sasa Zivkov <sasa.zivkov@sap.com>
  * Copyright (C) 2010, Chris Aniszczyk <caniszczyk@gmail.com>
+ * Copyright (C) 2016, Rüdiger Herrmann <ruediger.herrmann@gmx.de>
  * and other copyright owners as documented in the project's IP log.
  *
  * This program and the accompanying materials are made available
@@ -54,6 +55,7 @@
 import org.eclipse.jgit.api.InitCommand;
 import org.eclipse.jgit.lib.Repository;
 import org.eclipse.jgit.pgm.internal.CLIText;
+import org.kohsuke.args4j.Argument;
 import org.kohsuke.args4j.Option;
 
 @Command(common = true, usage = "usage_CreateAnEmptyGitRepository")
@@ -61,6 +63,9 @@
 	@Option(name = "--bare", usage = "usage_CreateABareRepository")
 	private boolean bare;
 
+	@Argument(index = 0, metaVar = "metaVar_directory")
+	private String directory;
+
 	@Override
 	protected final boolean requiresRepository() {
 		return false;
@@ -70,8 +75,12 @@
 	protected void run() throws Exception {
 		InitCommand command = Git.init();
 		command.setBare(bare);
-		if (gitdir != null)
+		if (gitdir != null) {
 			command.setDirectory(new File(gitdir));
+		}
+		if (directory != null) {
+			command.setDirectory(new File(directory));
+		}
 		Repository repository = command.call().getRepository();
 		outw.println(MessageFormat.format(
 				CLIText.get().initializedEmptyGitRepositoryIn, repository