diff --git a/commands/create.go b/commands/create.go
index 08725aae58e14655a40f905c6fc80645d29098a8..a5d386257ee76c5be4efb07ab282a38faac78add 100644
--- a/commands/create.go
+++ b/commands/create.go
@@ -110,15 +110,24 @@ func create(command *Command, args *Args) {
 	gh := github.NewClient(project.Host)
 
 	repo, err := gh.Repository(project)
-
 	if err == nil {
-		if !repo.Private && flagCreatePrivate {
-			err = fmt.Errorf("Repository '%s' already exists and is public", repo.FullName)
-			utils.Check(err)
+		foundProject := github.NewProject(repo.FullName, "", project.Host)
+		if foundProject.SameAs(project) {
+			if !repo.Private && flagCreatePrivate {
+				err = fmt.Errorf("Repository '%s' already exists and is public", repo.FullName)
+				utils.Check(err)
+			} else {
+				ui.Errorln("Existing repository detected. Updating git remote")
+				project = foundProject
+			}
 		} else {
-			ui.Errorln("Existing repository detected. Updating git remote")
+			repo = nil
 		}
 	} else {
+		repo = nil
+	}
+
+	if repo == nil {
 		if !args.Noop {
 			repo, err := gh.CreateRepository(project, flagCreateDescription, flagCreateHomepage, flagCreatePrivate)
 			utils.Check(err)
diff --git a/features/authentication.feature b/features/authentication.feature
index bfe657966194731e917a1396e1ae7434c2d183d1..afb4bec37f985b6f22c2adaf2e44f312b6b1e627 100644
--- a/features/authentication.feature
+++ b/features/authentication.feature
@@ -358,7 +358,9 @@ Feature: OAuth authentication
       get('/user') {
         json :login => 'mislav'
       }
-      get('/repos/mislav/dotfiles') { status 200 }
+      get('/repos/mislav/dotfiles') {
+        json :full_name => 'mislav/dotfiles'
+      }
       """
     When I run `hub create` interactively
     When I type "mislav@example.com"
diff --git a/features/create.feature b/features/create.feature
index 017d9dac6fe773776a546cb7cd77f578830a8fa3..2048092e54549cb2c6c61486a7c3599eaa5b656c 100644
--- a/features/create.feature
+++ b/features/create.feature
@@ -140,7 +140,9 @@ Feature: hub create
   Scenario: GitHub repo already exists
     Given the GitHub API server:
       """
-      get('/repos/mislav/dotfiles') { status 200 }
+      get('/repos/mislav/dotfiles') {
+        json :full_name => 'mislav/dotfiles'
+      }
       """
     When I successfully run `hub create`
     Then the output should contain "Existing repository detected. Updating git remote\n"
@@ -170,6 +172,36 @@ Feature: hub create
     When I successfully run `hub create -p`
     Then the url for "origin" should be "git@github.com:mislav/dotfiles.git"
 
+  Scenario: Renamed GitHub repo already exists
+    Given the GitHub API server:
+      """
+      get('/repos/mislav/dotfiles') {
+        redirect 'https://api.github.com/repositories/12345', 301
+      }
+      get('/repositories/12345') {
+        json :full_name => 'mislav/DOTfiles'
+      }
+      """
+    When I successfully run `hub create`
+    And the url for "origin" should be "git@github.com:mislav/DOTfiles.git"
+
+  Scenario: Renamed GitHub repo is unrelated
+    Given the GitHub API server:
+      """
+      get('/repos/mislav/dotfiles') {
+        redirect 'https://api.github.com/repositories/12345', 301
+      }
+      get('/repositories/12345') {
+        json :full_name => 'mislav/old-dotfiles'
+      }
+      post('/user/repos') {
+        status 201
+        json :full_name => 'mislav/mydotfiles'
+      }
+      """
+    When I successfully run `hub create`
+    And the url for "origin" should be "git@github.com:mislav/mydotfiles.git"
+
   Scenario: API response changes the clone URL
     Given the GitHub API server:
       """