diff --git a/Gemfile b/Gemfile
index 199ef65d922d7c64b9d246d2683d6319be54f8e9..ca4157cf47da071b8af1ec4f76b347646bd6ed02 100644
--- a/Gemfile
+++ b/Gemfile
@@ -190,6 +190,9 @@ gem 'babosa', '~> 1.0.2'
 # Sanitizes SVG input
 gem "loofah", "~> 2.0.3"
 
+# Working with license
+gem 'licensee', "~> 7.0.0"
+
 # Protect against bruteforcing
 gem "rack-attack", '~> 4.3.1'
 
diff --git a/Gemfile.lock b/Gemfile.lock
index ad7d7c18559538c18607bc6c7070c195b4864927..2a6faeff2f45bc65a7c6ba993b98fcefdc9fac41 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -452,6 +452,8 @@ GEM
       addressable (~> 2.3)
     letter_opener (1.1.2)
       launchy (~> 2.2)
+    licensee (7.0.0)
+      rugged (~> 0.23)
     listen (3.0.5)
       rb-fsevent (>= 0.9.3)
       rb-inotify (>= 0.9)
@@ -957,6 +959,7 @@ DEPENDENCIES
   jquery-ui-rails (~> 5.0.0)
   kaminari (~> 0.16.3)
   letter_opener (~> 1.1.2)
+  licensee (~> 7.0.0)
   loofah (~> 2.0.3)
   mail_room (~> 0.6.1)
   method_source (~> 0.8)
diff --git a/app/assets/javascripts/api.js.coffee b/app/assets/javascripts/api.js.coffee
index f3ed9a66715fe40588441ec74caadb2fcb52738a..f4757658d54463d7e8762586a417cb7717536c99 100644
--- a/app/assets/javascripts/api.js.coffee
+++ b/app/assets/javascripts/api.js.coffee
@@ -5,6 +5,7 @@
   group_projects_path: "/api/:version/groups/:id/projects.json"
   projects_path: "/api/:version/projects.json"
   labels_path: "/api/:version/projects/:id/labels"
+  license_path: "/api/:version/licenses/:key"
 
   group: (group_id, callback) ->
     url = Api.buildUrl(Api.group_path)
@@ -92,6 +93,18 @@
     ).done (projects) ->
       callback(projects)
 
+  # Return text for specific license
+  licenseText: (key, fullname, callback) ->
+    url = Api.buildUrl(Api.license_path)
+    url = url.replace(':key', key)
+
+    $.ajax(
+      url: url
+      data:
+        fullname: fullname
+    ).done (projects) ->
+      callback(projects)
+
   buildUrl: (url) ->
     url = gon.relative_url_root + url if gon.relative_url_root?
     return url.replace(':version', gon.api_version)
diff --git a/app/assets/javascripts/blob/blob_license_selector.js.coffee b/app/assets/javascripts/blob/blob_license_selector.js.coffee
new file mode 100644
index 0000000000000000000000000000000000000000..b43c1ec2bb5834d606b0ea5859b6c457dfe01cb4
--- /dev/null
+++ b/app/assets/javascripts/blob/blob_license_selector.js.coffee
@@ -0,0 +1,24 @@
+class @BlobLicenseSelector
+  licenseRegex: /^(.+\/)?(licen[sc]e|copying)($|\.)/i
+
+  constructor: (editor)->
+    self = this
+    @licenseSelector = $('.js-license-selector')
+    @toggleLicenseSelector($('#file_name').val())
+
+    $('#file_name').on 'input', ->
+      self.toggleLicenseSelector($(this).val())
+
+    $('select.license-select').select2(
+      width: 'resolve'
+      dropdownAutoWidth: true
+      placeholder: 'Choose a license template'
+    ).on 'change', (e) ->
+      Api.licenseText $(this).val(), $(this).data('fullname'), (data) ->
+        editor.setValue(data, -1)
+
+  toggleLicenseSelector: (fileName) =>
+    if @licenseRegex.test(fileName)
+      @licenseSelector.show()
+    else
+      @licenseSelector.hide()
diff --git a/app/assets/stylesheets/pages/editor.scss b/app/assets/stylesheets/pages/editor.scss
index 0f0592a0ab8bcc57416619b7e654319bcab11945..8981f070a20337d9184f73b2a4d37c4cbd6015ee 100644
--- a/app/assets/stylesheets/pages/editor.scss
+++ b/app/assets/stylesheets/pages/editor.scss
@@ -26,6 +26,10 @@
     line-height: 42px;
     padding-top: 7px;
     padding-bottom: 7px;
+
+    .pull-right {
+      height: 20px;
+    }
   }
 
   .editor-ref {
@@ -53,4 +57,9 @@
   .select2 {
     float: right;
   }
+
+  .encoding-selector,
+  .license-selector {
+    display: inline-block;
+  }
 }
diff --git a/app/controllers/projects/blob_controller.rb b/app/controllers/projects/blob_controller.rb
index cd8b2911674b78cac69bdee0835f5da98e0f5a22..6960562d15ff1981647072253b27a8d379abb4e1 100644
--- a/app/controllers/projects/blob_controller.rb
+++ b/app/controllers/projects/blob_controller.rb
@@ -122,6 +122,15 @@ class Projects::BlobController < Projects::ApplicationController
   end
 
   def editor_variables
+    @licenses = {
+      'Popular' => Licensee::License.all(featured: true).map!{ |license| [license.name, license.key] },
+      'Other' => Licensee::License.all(featured: false).map!{ |license| [license.name, license.key] }
+    }
+
+    unless @repository.empty?
+      @current_license_key = Licensee.license(@repository.path).try(:key)
+    end
+
     @target_branch = params[:target_branch]
 
     @file_path =
diff --git a/app/helpers/projects_helper.rb b/app/helpers/projects_helper.rb
index 7e00aacceaaa1ef639bd0143cdff624c826f3c38..0b0cb658b1781cc84f3bc00a8b24dfdaaee1252a 100644
--- a/app/helpers/projects_helper.rb
+++ b/app/helpers/projects_helper.rb
@@ -306,6 +306,13 @@ module ProjectsHelper
     namespace_project_new_blob_path(@project.namespace, @project, tree_join(ref), file_name: 'README.md')
   end
 
+  def new_license_path
+    ref = @repository.root_ref if @repository
+    ref ||= 'master'
+
+    namespace_project_new_blob_path(@project.namespace, @project, tree_join(ref), file_name: 'LICENSE')
+  end
+
   def last_push_event
     if current_user
       current_user.recent_push(@project.id)
diff --git a/app/views/projects/blob/_editor.html.haml b/app/views/projects/blob/_editor.html.haml
index f8b6fa253c4ff9ddfa6714976bfae25dbb9ba867..8ebbc91f81d2b68c1d48b70709caf50261605da9 100644
--- a/app/views/projects/blob/_editor.html.haml
+++ b/app/views/projects/blob/_editor.html.haml
@@ -13,7 +13,11 @@
         required: true, class: 'form-control new-file-name'
 
     .pull-right
-      = select_tag :encoding, options_for_select([ "base64", "text" ], "text"), class: 'select2'
+      .license-selector.js-license-selector.hide
+        = select_tag :license_type, grouped_options_for_select(@licenses, @current_license_key), include_blank: true, class: 'select2 license-select', data: { fullname: @repository.project.creator.name }
+
+      .encoding-selector
+        = select_tag :encoding, options_for_select([ "base64", "text" ], "text"), class: 'select2'
 
   .file-content.code
     %pre.js-edit-mode-pane#editor #{params[:content] || local_assigns[:blob_data]}
@@ -22,3 +26,8 @@
         .center
           %h2
             %i.icon-spinner.icon-spin
+
+:javascript
+  window.onload = function() {
+    new BlobLicenseSelector(blob.editor)
+  }
diff --git a/app/views/projects/empty.html.haml b/app/views/projects/empty.html.haml
index 6ad7b05155a32b2dc1297fea821e6f5d1bf96678..2eb79703304d8c95a6165dbe2c5e869b4835ac24 100644
--- a/app/views/projects/empty.html.haml
+++ b/app/views/projects/empty.html.haml
@@ -14,8 +14,10 @@
     %p
       If you already have files you can push them using command line instructions below.
     %p
-      Otherwise you can start with
-      = link_to "adding README", new_readme_path, class: 'underlined-link'
+      Otherwise you can start with adding
+      = link_to "README", new_readme_path, class: 'underlined-link'
+      or
+      = link_to "LICENSE", new_license_path, class: 'underlined-link'
       file to this project.
 
 - if can?(current_user, :push_code, @project)
diff --git a/lib/api/api.rb b/lib/api/api.rb
index 7d65145176b9059eb2ae12fcd76a9613bcd37dac..cc1004f80059e85ca310aa0ef55e73fe778f274b 100644
--- a/lib/api/api.rb
+++ b/lib/api/api.rb
@@ -57,5 +57,6 @@ module API
     mount Builds
     mount Variables
     mount Runners
+    mount Licenses
   end
 end
diff --git a/lib/api/licenses.rb b/lib/api/licenses.rb
new file mode 100644
index 0000000000000000000000000000000000000000..7fffbef84e4dc9763dbfb82f86405c7e5695a1f6
--- /dev/null
+++ b/lib/api/licenses.rb
@@ -0,0 +1,27 @@
+module API
+  # Licenses API
+  class Licenses < Grape::API
+    YEAR_TEMPLATE_REGEX = /(\[|<|{)(year|yyyy)(\]|>|})/
+    FULLNAME_TEMPLATE_REGEX = /\[fullname\]/
+
+    # Get text for specific license
+    #
+    # Parameters:
+    #   key (required) - The key of a license
+    #   fullname       - Reository owner fullname
+    # Example Request:
+    #   GET /licenses/mit
+    get 'licenses/:key', requirements: { key: /[\w.-]*/ } do
+      env['api.format'] = :txt
+      license = Licensee::License.find(params[:key]).try(:text)
+
+      if license
+        license
+          .gsub(YEAR_TEMPLATE_REGEX, Time.now.year.to_s)
+          .gsub(FULLNAME_TEMPLATE_REGEX, params[:fullname])
+      else
+        error!('License not found', 404)
+      end
+    end
+  end
+end
diff --git a/spec/requests/api/licenses_spec.rb b/spec/requests/api/licenses_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..f0f8b041f6982d148236ed5fe210ad47fc146002
--- /dev/null
+++ b/spec/requests/api/licenses_spec.rb
@@ -0,0 +1,46 @@
+require 'spec_helper'
+
+describe API::API, api: true  do
+  include ApiHelpers
+  describe 'GET /licenses/:key' do
+    before(:each) do
+      get api("/licenses/#{license_type}?fullname=Anton")
+    end
+
+    context 'for mit license name' do
+      let(:license_type){ 'mit' }
+
+      it 'returns MIT license text and replases template values' do
+        expect(response.body).to include('Copyright (c) 2016 Anton')
+        expect(response.body).to include('Copyright (c) 2016')
+      end
+    end
+
+    context 'for gnu license name' do
+      let(:license_type){ 'gpl-3.0' }
+
+      it 'returns GNU license text and replases template values' do
+        expect(response.body).to include('GNU GENERAL PUBLIC LICENSE')
+        expect(response.body).to include('Copyright (C) 2016')
+      end
+    end
+
+    context 'for apache license name' do
+      let(:license_type){ 'apache-2.0' }
+
+      it 'returns Apache license text and replases template values' do
+        expect(response.body).to include('Apache License')
+        expect(response.body).to include('Copyright 2016')
+      end
+    end
+
+    context 'for mythic license name' do
+      let(:license_type){ 'muth-over9000' }
+
+      it 'returns string with error' do
+        expect(response).to have_http_status(404)
+        expect(response.body).to eq 'License not found'
+      end
+    end
+  end
+end