diff --git a/package.json b/package.json
index 385dad5..8098487 100644
--- a/package.json
+++ b/package.json
@@ -349,7 +349,7 @@
                 "cph.general.defaultLanguageTemplateFileLocation": {
                     "type": "string",
                     "default": "",
-                    "description": "The path of the template that will be loaded when a new file of the default language is created by Competitive Companion"
+                    "description": "The path to the template file that will be used when creating a new file for the default language via Competitive Companion. For Java templates, use 'CLASS_NAME' as a placeholder for the class name."
                 },
                 "cph.general.autoShowJudge": {
                     "type": "boolean",
diff --git a/src/companion.ts b/src/companion.ts
index 276f38b..08d79a9 100644
--- a/src/companion.ts
+++ b/src/companion.ts
@@ -241,8 +241,16 @@ const handleNewProblem = async (problem: Problem) => {
                     `Template file does not exist: ${templateLocation}`,
                 );
             } else {
-                const templateContents =
+                let templateContents =
                     readFileSync(templateLocation).toString();
+
+                if (extn == 'java') {
+                    const className = path.basename(problemFileName, '.java');
+                    templateContents = templateContents.replace(
+                        'CLASS_NAME',
+                        className,
+                    );
+                }
                 writeFileSync(srcPath, templateContents);
             }
         }