diff --git a/lib/compass/commands/base.rb b/lib/compass/commands/base.rb
index 996d14d5..0e1f8eb8 100644
--- a/lib/compass/commands/base.rb
+++ b/lib/compass/commands/base.rb
@@ -17,7 +17,8 @@ module Compass
         File.join(project_directory, separate(path))
       end
       # create a directory and all the directories necessary to reach it.
-      def directory(subdir, options)
+      def directory(subdir, options = nil)
+        options ||= self.options
         dir = subdir ? projectize(subdir) : project_directory
         if File.exists?(dir) && File.directory?(dir) && options[:force]
             print_action :exists, basename(dir) + File::SEPARATOR
@@ -49,6 +50,21 @@ module Compass
         FileUtils.cp from, to unless options[:dry_run]
       end
 
+      def write_file(file_name, contents)
+        if File.exists?(file_name) && !options[:force]
+          msg = "File #{basename(file_name)} already exists. Run with --force to force creation."
+          raise ::Compass::Exec::ExecError.new(msg)
+        end
+        if File.exists?(file_name)
+          print_action :overwrite, basename(file_name)
+        else
+          print_action :create, basename(file_name)
+        end
+        output = open(file_name,'w')
+        output.write(contents)
+        output.close
+      end
+
       # returns the path to the templates directory and caches it
       def templates_directory
         @templates_directory ||= File.expand_path(File.join(File.dirname(__FILE__), separate("../../../frameworks/#{options[:framework]}/templates")))
@@ -67,7 +83,7 @@ module Compass
         end
       end
       
-      ACTIONS = [:directory, :exists, :remove, :create]
+      ACTIONS = [:directory, :exists, :remove, :create, :overwrite]
       MAX_ACTION_LENGTH = ACTIONS.inject(0){|memo, a| [memo, a.to_s.length].max}
       def print_action(action, extra)
         puts "#{' ' * (MAX_ACTION_LENGTH - action.to_s.length)}#{action} #{extra}" if !options[:quiet] || options[:dry_run]
diff --git a/lib/compass/commands/install_rails.rb b/lib/compass/commands/install_rails.rb
new file mode 100644
index 00000000..38d9230e
--- /dev/null
+++ b/lib/compass/commands/install_rails.rb
@@ -0,0 +1,115 @@
+require File.join(File.dirname(__FILE__), 'base')
+
+module Compass
+  module Commands
+    class InstallRails < Base
+      def initialize(working_directory, options)
+        super(working_directory, options)
+      end
+      def perform
+        set_install_location
+        set_output_location
+        directory options[:stylesheets_location]
+        template 'project/screen.sass', "#{options[:stylesheets_location]}/screen.sass", options
+        template 'project/print.sass',  "#{options[:stylesheets_location]}/print.sass", options
+        template 'project/ie.sass',     "#{options[:stylesheets_location]}/ie.sass", options
+        write_file projectize('config/initializers/compass.rb'), initializer_contents
+        if has_application_layout?
+          next_steps
+        else
+          write_file projectize('app/views/layouts/application.html.haml'), application_layout_contents
+        end
+      end
+      
+      def initializer
+        init_file = 
+        if File.exists?(init_file) && !options[:force]
+          msg = "File #{basename(init_file)} already exists. Run with --force to force project creation."
+          raise ::Compass::Exec::ExecError.new(msg)
+        end
+        if File.exists?(init_file)
+          print_action :overwrite, basename(init_file)
+        else
+          print_action :create, basename(init_file)
+        end
+        output = open(init_file,'w')
+        output.write(initializer_contents)
+        output.close
+      end
+      
+      def initializer_contents
+        %Q{require 'compass'
+# If you have any compass plugins, require them here.
+Sass::Plugin.options[:template_location] = {
+  "\#{RAILS_ROOT}#{File::SEPARATOR}#{options[:stylesheets_location]}" => "\#{RAILS_ROOT}#{File::SEPARATOR}#{options[:css_location]}"
+}
+Compass::Frameworks::ALL.each do |framework|
+  Sass::Plugin.options[:template_location][framework.stylesheets_directory] = "\#{RAILS_ROOT}/public/stylesheets/#{File::SEPARATOR}#{options[:css_location]}/\#{framework.name}"
+end
+}
+      end
+
+      def application_layout_contents
+        %Q{!!! XML
+!!!
+%html{:xmlns => "http://www.w3.org/1999/xhtml", "xml:lang" => "en", :lang => "en"}
+  %head
+    %meta{'http-equiv' => "content-type", :content => "text/html;charset=UTF-8"}
+    %title= @browser_title || 'Default Browser Title'
+    = stylesheet_link_tag '#{stylesheet_prefix}screen.css', :media => 'print'
+    = stylesheet_link_tag '#{stylesheet_prefix}print.css', :media => 'print'
+    /[if IE]
+      = stylesheet_link_tag '#{stylesheet_prefix}ie.css', :media => 'screen, projection'
+  %body
+    %h1 Welcome to Compass
+    = yield
+}
+      end
+
+      def next_steps
+        puts <<NEXTSTEPS
+
+Congratulations! Your project has been configured to use Compass.
+Next add these lines to the head of your application.html.haml:
+
+%head 
+  = stylesheet_link_tag '#{stylesheet_prefix}screen.css', :media => 'print'
+  = stylesheet_link_tag '#{stylesheet_prefix}print.css', :media => 'print'
+  /[if IE]
+    = stylesheet_link_tag '#{stylesheet_prefix}ie.css', :media => 'screen, projection'
+
+(you are using haml, aren't you?)
+NEXTSTEPS
+      end
+
+      def has_application_layout?
+        File.exists?(projectize('app/views/layouts/application.rhtml')) ||
+        File.exists?(projectize('app/views/layouts/application.html.erb')) ||
+        File.exists?(projectize('app/views/layouts/application.html.haml'))
+      end
+
+      def stylesheet_prefix
+        if options[:css_location].length >= 19
+          "#{options[:css_location][19..-1]}/"
+        else
+          nil
+        end
+      end
+
+      def project_directory
+        working_directory
+      end
+      
+      def set_install_location
+        print "Compass recommends that you keep your stylesheets in app/stylesheets/ instead of the Sass default location of public/stylesheets/sass/.\nIs this OK? (Y/n) "
+        answer = gets
+        self.options[:stylesheets_location] = separate(answer.downcase[0] == ?n ? 'public/stylesheets/sass' : 'app/stylesheets')
+      end
+      def set_output_location
+        print "\nCompass recommends that you keep your compiled css in public/stylesheets/compiled/ instead the Sass default of public/stylesheets/.\nHowever, if you're exclusively using Sass, then public/stylesheets/ is recommended.\nEmit compiled stylesheets to public/stylesheets/compiled? (Y/n) "
+        answer = gets
+        self.options[:css_location] = separate(answer.downcase[0] == ?n ? 'public/stylesheets' : 'public/stylesheets/compiled')
+      end
+    end
+  end
+end
diff --git a/lib/compass/exec.rb b/lib/compass/exec.rb
index fc9fd684..5f23e194 100644
--- a/lib/compass/exec.rb
+++ b/lib/compass/exec.rb
@@ -84,6 +84,10 @@ END
         opts.on('-s STYLE', '--output-style STYLE', [:nested, :expanded, :compact, :compressed], 'Select a CSS output mode (nested, expanded, compact, compressed)') do |style|
           self.options[:style] = style
         end
+        
+        opts.on('--rails', "Install compass into your Ruby on Rails project found in the current directory.") do
+          self.options[:command] = :install_rails
+        end
 
         opts.on('-q', '--quiet', :NONE, 'Quiet mode.') do
           self.options[:quiet] = true