diff --git a/commands/pull_request.go b/commands/pull_request.go
index 6f4d147bf8840763145cac5d1881e80f38b42848..ce70e6d94983872429258c6972cf629b23f6dbc9 100644
--- a/commands/pull_request.go
+++ b/commands/pull_request.go
@@ -278,7 +278,7 @@ func createPullRequestMessage(base, head, fullBase, fullHead string) (string, er
 		}
 	}
 
-	if tmplate := github.GetPullRequestTemplate(); tmplate != "" {
+	if template := github.GetPullRequestTemplate(); template != "" {
 		defaultMsg = github.GeneratePRTemplate(defaultMsg)
 	}
 
diff --git a/fixtures/test_repo.go b/fixtures/test_repo.go
index 16cb0df242dd36ce86d76b59f267c61f74624afb..66cccf46f86aef497f37a76a4d51d04f418e03b7 100644
--- a/fixtures/test_repo.go
+++ b/fixtures/test_repo.go
@@ -59,29 +59,14 @@ func (r *TestRepo) AddRemote(name, url, pushURL string) {
 	}
 }
 
-func (r *TestRepo) AddGithubTemplatesDir() {
-	github_dir := filepath.Join(r.dir, "test.git", ".github")
-	pr_template_path := filepath.Join(github_dir, "PULL_REQUEST_TEMPLATE.md")
-	issue_template_path := filepath.Join(github_dir, "ISSUE_TEMPLATE")
-
-	// Make `.github` dir in root of test repo
-	err := os.MkdirAll(filepath.Dir(issue_template_path), 0771)
-	if err != nil {
-		panic(err)
-	}
-
-	// Switch to the root of the project dir
-	err = os.Chdir(filepath.Join(r.dir, "test.git"))
+func (r *TestRepo) AddFile(filePath string, content string) {
+	path := filepath.Join(r.dir, filePath)
+	err := os.MkdirAll(filepath.Dir(path), 0771)
 	if err != nil {
 		panic(err)
 	}
 
-	content := `Description
------------
-[Enter your pull request description here]
-`
-	ioutil.WriteFile(pr_template_path, []byte(content), os.ModePerm)
-	ioutil.WriteFile(issue_template_path, []byte(content), os.ModePerm)
+	ioutil.WriteFile(path, []byte(content), os.ModePerm)
 }
 
 func (r *TestRepo) clone(repo, dir string) error {
diff --git a/github/template.go b/github/template.go
index 184cee7c4e646fa1918d2b1d3d6b0372a6936146..8f051159932ea1d76f8818988d2b1752b5af1c29 100644
--- a/github/template.go
+++ b/github/template.go
@@ -10,13 +10,13 @@ import (
 )
 
 const (
-	pullRequestTempalte = "PULL_REQUEST_TEMPLATE"
+	pullRequestTemplate = "PULL_REQUEST_TEMPLATE"
 	issueTemplate       = "ISSUE_TEMPLATE"
 	githubTemplateDir   = ".github"
 )
 
 func GetPullRequestTemplate() string {
-	return getGithubTemplate(pullRequestTempalte)
+	return getGithubTemplate(pullRequestTemplate)
 }
 
 func GetIssueTemplate() string {
diff --git a/github/template_test.go b/github/template_test.go
index 42897d78d36440821c5a90a06882bf1dadc08660..65086f685cbac3e509ca6cbbefd974af67b12b8e 100644
--- a/github/template_test.go
+++ b/github/template_test.go
@@ -1,19 +1,97 @@
 package github
 
 import (
+	"path/filepath"
 	"testing"
 
 	"github.com/bmizerany/assert"
 	"github.com/github/hub/fixtures"
 )
 
+var prContent = `Description
+-----------
+[Enter your pull request description here]
+`
+
+var issueContent = `Description
+-----------
+[Enter your issue description here]
+`
+
+func TestGithubTemplate_withoutTemplate(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	assert.Equal(t, "", GetPullRequestTemplate())
+	assert.Equal(t, "", GetIssueTemplate())
+}
+
+func TestGithubTemplate_withInvalidTemplate(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	addGithubTemplates(repo, map[string]string{"dir": "invalidPath"})
+
+	assert.Equal(t, "", GetPullRequestTemplate())
+	assert.Equal(t, "", GetIssueTemplate())
+}
+
+func TestGithubTemplate_WithMarkdown(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	addGithubTemplates(repo,
+		map[string]string{
+			"prTempalte":    pullRequestTemplate + ".md",
+			"issueTempalte": issueTemplate + ".md",
+		})
+
+	assert.Equal(t, prContent, GetPullRequestTemplate())
+	assert.Equal(t, issueContent, GetIssueTemplate())
+}
+
+func TestGithubTemplate_WithTemplateInHome(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	addGithubTemplates(repo, map[string]string{})
+
+	assert.Equal(t, prContent, GetPullRequestTemplate())
+	assert.Equal(t, issueContent, GetIssueTemplate())
+}
+
+func TestGithubTemplate_WithTemplateInGithubDir(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	addGithubTemplates(repo, map[string]string{"dir": githubTemplateDir})
+
+	assert.Equal(t, prContent, GetPullRequestTemplate())
+	assert.Equal(t, issueContent, GetIssueTemplate())
+}
+
+func TestGithubTemplate_WithTemplateInGithubDirAndMarkdown(t *testing.T) {
+	repo := fixtures.SetupTestRepo()
+	defer repo.TearDown()
+
+	addGithubTemplates(repo,
+		map[string]string{
+			"prTempalte":    pullRequestTemplate + ".md",
+			"issueTempalte": issueTemplate + ".md",
+			"dir":           githubTemplateDir,
+		})
+
+	assert.Equal(t, prContent, GetPullRequestTemplate())
+	assert.Equal(t, issueContent, GetIssueTemplate())
+}
+
 // When no default message is provided, two blank lines should be added
 // (representing the pull request title), and the left should be template.
 func TestGeneratePRTemplate_NoDefaultMessage(t *testing.T) {
 	repo := fixtures.SetupTestRepo()
 	defer repo.TearDown()
 
-	repo.AddGithubTemplatesDir()
+	addGithubTemplates(repo, map[string]string{})
 
 	defaultMessage := ""
 	expectedOutput := `
@@ -32,7 +110,7 @@ func TestGeneratePRTemplate_SingleLineDefaultMessage(t *testing.T) {
 	repo := fixtures.SetupTestRepo()
 	defer repo.TearDown()
 
-	repo.AddGithubTemplatesDir()
+	addGithubTemplates(repo, map[string]string{})
 
 	defaultMessage := "Add Pull Request Templates to Hub"
 	expectedOutput := `Add Pull Request Templates to Hub
@@ -54,7 +132,7 @@ func TestGeneratePRTemplate_MultiLineDefaultMessage(t *testing.T) {
 	repo := fixtures.SetupTestRepo()
 	defer repo.TearDown()
 
-	repo.AddGithubTemplatesDir()
+	addGithubTemplates(repo, map[string]string{})
 
 	defaultMessage := `Add Pull Request Templates to Hub
 
@@ -70,3 +148,23 @@ Description
 
 	assert.Equal(t, expectedOutput, GeneratePRTemplate(defaultMessage))
 }
+
+func addGithubTemplates(r *fixtures.TestRepo, config map[string]string) {
+	repoDir := "test.git"
+	if dir := config["dir"]; dir != "" {
+		repoDir = filepath.Join(repoDir, dir)
+	}
+
+	prTemplatePath := filepath.Join(repoDir, pullRequestTemplate)
+	if prTmplPath := config["prTemplate"]; prTmplPath != "" {
+		prTemplatePath = prTmplPath
+	}
+
+	issueTemplatePath := filepath.Join(repoDir, issueTemplate)
+	if issueTmplPath := config["issueTemplate"]; issueTmplPath != "" {
+		issueTemplatePath = issueTmplPath
+	}
+
+	r.AddFile(prTemplatePath, prContent)
+	r.AddFile(issueTemplatePath, issueContent)
+}