diff --git a/exe/ruby-lsp b/exe/ruby-lsp
index 1c2833c2d8..4e35ec4766 100755
--- a/exe/ruby-lsp
+++ b/exe/ruby-lsp
@@ -29,6 +29,13 @@ parser = OptionParser.new do |opts|
     options[:branch] = branch
   end
 
+  opts.on(
+    "--new-addon [NAME]",
+    "Create a new Ruby LSP add-on gem",
+  ) do |name|
+    options[:new_addon] = name
+  end
+
   opts.on("--doctor", "Run troubleshooting steps") do
     options[:doctor] = true
   end
@@ -147,6 +154,11 @@ if options[:doctor]
   return
 end
 
+if options[:new_addon]
+  require "ruby_lsp/generator"
+  RubyLsp::Generator.new(options[:new_addon]).run
+  exit(0)
+end
 # Ensure all output goes out stderr by default to allow puts/p/pp to work
 # without specifying output device.
 $> = $stderr
diff --git a/jekyll/add-ons.markdown b/jekyll/add-ons.markdown
index ea0f9685fd..ca1ec2792c 100644
--- a/jekyll/add-ons.markdown
+++ b/jekyll/add-ons.markdown
@@ -55,6 +55,19 @@ authors to benefit from types declared by the Ruby LSP.
 As an example, check out [Ruby LSP Rails](https://github.com/Shopify/ruby-lsp-rails), which is a Ruby LSP add-on to
 provide Rails related features.
 
+### Creating a New Add-on
+
+The `ruby-lsp` executable now includes a `--new-addon` option to help you quickly create new Ruby LSP add-ons. This feature is designed to work in two scenarios:
+
+1. **Inside an existing project**: If you're already working in a project with a `Gemfile`, the tool will add the necessary files and directory structure for your new add-on.
+2. **Outside a project**: If you're not in a project, the tool will help you create a new gem and then set up the add-on inside it.
+
+To create a new add-on, run the following command:
+
+```bash
+ruby-lsp --new-addon ADDON_NAME
+```
+
 ### Activating the add-on
 
 The Ruby LSP discovers add-ons based on the existence of an `addon.rb` file placed inside a `ruby_lsp` folder.  For
diff --git a/lib/ruby_lsp/generator.rb b/lib/ruby_lsp/generator.rb
new file mode 100644
index 0000000000..3690d17924
--- /dev/null
+++ b/lib/ruby_lsp/generator.rb
@@ -0,0 +1,197 @@
+# typed: strict
+# frozen_string_literal: true
+
+module RubyLsp
+  class Generator
+    extend T::Sig
+
+    sig { params(addon_name: T.nilable(String)).void }
+    def initialize(addon_name)
+      @addon_name = T.let(addon_name, T.nilable(String))
+    end
+
+    sig { void }
+    def run
+      if inside_existing_project?
+        puts "Inside existing project. Creating add-on files..."
+        create_addon_files
+      else
+        puts "Not inside existing project. Prompting to create new gem..."
+        create_new_gem
+      end
+    end
+
+    private
+
+    sig { returns(T::Boolean) }
+    def inside_existing_project?
+      File.exist?("Gemfile")
+    end
+
+    sig { params(string: String).returns(String) }
+    def camelize(string)
+      return string if string == "ruby-lsp"
+
+      string
+        .gsub("ruby-lsp-", "")
+        .split(/[-_]/)
+        .map(&:capitalize)
+        .join
+    end
+
+    sig { void }
+    def create_addon_files
+      addon_name = T.must(@addon_name)
+      addon_dir = T.let("lib/ruby_lsp/#{addon_name}", String)
+      FileUtils.mkdir_p(addon_dir)
+
+      # Create addon.rb
+      File.write(
+        "#{addon_dir}/addon.rb",
+        <<~RUBY,
+          # frozen_string_literal: true
+
+          RubyLsp::Addon.depend_on_ruby_lsp!(">= 0.23.1", "< 0.24")
+
+          module RubyLsp
+            module #{camelize(addon_name)}
+              class Addon < ::RubyLsp::Addon
+                # Performs any activation that needs to happen once when the language server is booted
+                def activate(global_state, message_queue)
+                  # Add your logic here
+                end
+
+                # Performs any cleanup when shutting down the server, like terminating a subprocess
+                def deactivate
+                  # Add your logic here
+                end
+
+                # Returns the name of the add-on
+                def name
+                  "Ruby LSP My Gem"
+                end
+
+                # Defining a version for the add-on is mandatory. This version doesn't necessarily need to match the version of
+                # the gem it belongs to
+                def version
+                  "0.1.0"
+                end
+              end
+            end
+          end
+        RUBY
+      )
+
+      create_test_file
+
+      puts "Add-on '#{addon_name}' created successfully! Please follow guidelines on https://shopify.github.io/ruby-lsp/add-ons.html"
+    end
+
+    sig { void }
+    def create_new_gem
+      addon_name = T.must(@addon_name)
+      system("bundle gem #{addon_name}")
+      add_ruby_lsp_to_gemfile
+      Dir.chdir(addon_name) do
+        create_addon_files
+      end
+    end
+
+    sig { void }
+    def add_ruby_lsp_to_gemfile
+      gemfile_path = "Gemfile"
+
+      unless File.exist?(gemfile_path)
+        puts "Gemfile not found. Please ensure you are in the root directory of your gem."
+        return
+      end
+
+      gemfile_content = File.read(gemfile_path)
+
+      if gemfile_content.include?("gem 'ruby-lsp'") || gemfile_content.include?('gem "ruby-lsp"')
+        puts "ruby-lsp is already in the Gemfile."
+        return
+      end
+
+      updated_content = gemfile_content + "\ngem \"ruby-lsp\", \">= 0.23.1\", group: :development\n"
+
+      File.write(gemfile_path, updated_content)
+
+      puts "Added ruby-lsp as a development dependency to the Gemfile."
+    end
+
+    sig { returns(Symbol) }
+    def check_test_framework
+      if File.exist?("Gemfile")
+        gemfile_content = T.let(File.read("Gemfile"), String)
+        if gemfile_content.include?("rspec")
+          :rspec
+        elsif gemfile_content.include?("minitest")
+          :minitest
+        elsif gemfile_content.include?("test-unit")
+          :test_unit
+        else
+          :minitest
+        end
+      else
+        :minitest
+      end
+    end
+
+    sig { void }
+    def create_test_file
+      addon_name = T.must(@addon_name)
+      test_dir = "test/ruby_lsp/#{@addon_name}"
+      spec_test_dir = "spec/ruby_lsp/#{@addon_name}"
+      test_framework = check_test_framework
+
+      case test_framework
+      when :rspec
+        FileUtils.mkdir_p(spec_test_dir)
+        File.write("#{spec_test_dir}/addon_spec.rb", <<~RUBY)
+          # frozen_string_literal: true
+
+          require "spec_helper"
+
+          RSpec.describe RubyLsp::#{camelize(addon_name)}::Addon do
+            it "does something useful" do
+              expect(true).to eq(true)
+            end
+          end
+        RUBY
+      when :minitest
+        FileUtils.mkdir_p(test_dir)
+        File.write("#{test_dir}/addon_test.rb", <<~RUBY)
+          # frozen_string_literal: true
+
+          require "test_helper"
+
+          module RubyLsp
+            module #{camelize(addon_name)}
+              class AddonTest < Minitest::Test
+                def test_example
+                  assert true
+                end
+              end
+            end
+          end
+        RUBY
+      when :test_unit
+        FileUtils.mkdir_p(test_dir)
+        File.write("#{test_dir}/addon_test.rb", <<~RUBY)
+          # frozen_string_literal: true
+
+          require "test_helper"
+
+          class AddonTest < Test::Unit::TestCase
+            def test_example
+              assert true
+            end
+          end
+        RUBY
+      else
+        raise "Unsupported test framework: #{test_framework}"
+      end
+    end
+  end
+end