diff --git a/crates/templates/src/manager.rs b/crates/templates/src/manager.rs
index 882a4a88e4..9ffbbfb368 100644
--- a/crates/templates/src/manager.rs
+++ b/crates/templates/src/manager.rs
@@ -780,6 +780,7 @@ mod tests {
             name: "my project".to_owned(),
             values,
             accept_defaults: false,
+            no_vcs: false,
         };
 
         template.run(options).silent().await.unwrap();
@@ -813,6 +814,7 @@ mod tests {
             name: "my project".to_owned(),
             values,
             accept_defaults: true,
+            no_vcs: false,
         };
 
         template.run(options).silent().await.unwrap();
@@ -878,6 +880,7 @@ mod tests {
                 name: "my multi project".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -905,6 +908,7 @@ mod tests {
                 name: "hello".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -929,6 +933,7 @@ mod tests {
                 name: "hello 2".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -985,6 +990,7 @@ mod tests {
                 name: "my various project".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1012,6 +1018,7 @@ mod tests {
                 name: "insertvars".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1063,6 +1070,7 @@ mod tests {
                 name: "my various project".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1090,6 +1098,7 @@ mod tests {
                 name: "insertvars".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1114,6 +1123,7 @@ mod tests {
                 name: "insertvarsagain".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1124,6 +1134,120 @@ mod tests {
         assert!(!spin_toml.contains("service.example.com"));
     }
 
+    #[tokio::test]
+    async fn component_new_no_vcs() {
+        let temp_dir = tempdir().unwrap();
+        let store = TemplateStore::new(temp_dir.path());
+        let manager = TemplateManager { store };
+        let source = TemplateSource::File(project_root());
+
+        manager
+            .install(&source, &InstallOptions::default(), &DiscardingReporter)
+            .await
+            .unwrap();
+
+        let dest_temp_dir = tempdir().unwrap();
+        let application_dir = dest_temp_dir.path().join("no-vcs-new");
+
+        let template = manager.get("http-rust").unwrap().unwrap();
+
+        let values = [
+            ("project-description".to_owned(), "my desc".to_owned()),
+            ("http-path".to_owned(), "/path/...".to_owned()),
+        ]
+        .into_iter()
+        .collect();
+
+        let options = RunOptions {
+            variant: crate::template::TemplateVariantInfo::NewApplication,
+            output_path: application_dir.clone(),
+            name: "no vcs new".to_owned(),
+            values,
+            accept_defaults: false,
+            no_vcs: true,
+        };
+
+        template.run(options).silent().await.unwrap();
+        let gitignore = application_dir.join(".gitignore");
+        assert!(
+            !gitignore.exists(),
+            "expected .gitignore to not have been created"
+        );
+    }
+
+    #[tokio::test]
+    async fn component_add_no_vcs() {
+        let temp_dir = tempdir().unwrap();
+        let store = TemplateStore::new(temp_dir.path());
+        let manager = TemplateManager { store };
+        let source = TemplateSource::File(project_root());
+
+        manager
+            .install(&source, &InstallOptions::default(), &DiscardingReporter)
+            .await
+            .unwrap();
+
+        let dest_temp_dir = tempdir().unwrap();
+        let application_dir = dest_temp_dir.path().join("no-vcs-add");
+
+        // Set up the containing app
+        {
+            let template = manager.get("http-empty").unwrap().unwrap();
+
+            let values = [("project-description".to_owned(), "my desc".to_owned())]
+                .into_iter()
+                .collect();
+            let options = RunOptions {
+                variant: crate::template::TemplateVariantInfo::NewApplication,
+                output_path: application_dir.clone(),
+                name: "my multi project".to_owned(),
+                values,
+                accept_defaults: false,
+                no_vcs: true,
+            };
+
+            template.run(options).silent().await.unwrap();
+        }
+
+        let gitignore = application_dir.join(".gitignore");
+        let spin_toml_path = application_dir.join("spin.toml");
+        assert!(
+            !gitignore.exists(),
+            "expected .gitignore to not have been created"
+        );
+
+        {
+            let template = manager.get("http-rust").unwrap().unwrap();
+
+            let values = [
+                ("project-description".to_owned(), "my desc".to_owned()),
+                ("http-path".to_owned(), "/path/...".to_owned()),
+            ]
+            .into_iter()
+            .collect();
+
+            let output_dir = "hello";
+
+            let options = RunOptions {
+                variant: crate::template::TemplateVariantInfo::AddComponent {
+                    manifest_path: spin_toml_path.clone(),
+                },
+                output_path: PathBuf::from(output_dir),
+                name: "added_component".to_owned(),
+                values,
+                accept_defaults: false,
+                no_vcs: true,
+            };
+            template.run(options).silent().await.unwrap();
+        }
+
+        let gitignore_add = application_dir.join("hello").join(".gitignore");
+        assert!(
+            !gitignore_add.exists(),
+            "expected .gitignore to not have been created"
+        );
+    }
+
     #[tokio::test]
     async fn can_add_component_with_different_trigger() {
         let temp_dir = tempdir().unwrap();
@@ -1162,6 +1286,7 @@ mod tests {
                 name: "my multi project".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1189,6 +1314,7 @@ mod tests {
                 name: "hello".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template.run(options).silent().await.unwrap();
@@ -1249,6 +1375,7 @@ mod tests {
                 name: "hello".to_owned(),
                 values,
                 accept_defaults: false,
+                no_vcs: false,
             };
 
             template
@@ -1318,6 +1445,7 @@ mod tests {
             name: "bad-filter-should-fail ".to_owned(),
             values,
             accept_defaults: false,
+            no_vcs: false,
         };
 
         let err = template
diff --git a/crates/templates/src/run.rs b/crates/templates/src/run.rs
index d5b67f7eb9..928de175c2 100644
--- a/crates/templates/src/run.rs
+++ b/crates/templates/src/run.rs
@@ -38,6 +38,8 @@ pub struct RunOptions {
     pub values: HashMap<String, String>,
     /// If true accept default values where available
     pub accept_defaults: bool,
+    /// If true, do not create a .gitignore file
+    pub no_vcs: bool,
 }
 
 impl Run {
@@ -138,7 +140,15 @@ impl Run {
     }
 
     fn included_files(&self, from: &Path, to: &Path) -> anyhow::Result<Vec<RenderOperation>> {
-        let all_content_files = Self::list_content_files(from)?;
+        let gitignore = ".gitignore";
+        let mut all_content_files = Self::list_content_files(from)?;
+        // If user asked for no_vcs
+        if self.options.no_vcs {
+            all_content_files.retain(|file| match file.file_name() {
+                None => true,
+                Some(file_name) => file_name.to_os_string() != gitignore,
+            });
+        }
         let included_files =
             self.template
                 .included_files(from, all_content_files, &self.options.variant);
diff --git a/crates/templates/src/test_built_ins/mod.rs b/crates/templates/src/test_built_ins/mod.rs
index 9ffc262316..ef32188fdb 100644
--- a/crates/templates/src/test_built_ins/mod.rs
+++ b/crates/templates/src/test_built_ins/mod.rs
@@ -40,6 +40,7 @@ async fn add_fileserver_does_not_create_dir() -> anyhow::Result<()> {
         output_path: app_dir.path().to_owned(),
         values: HashMap::new(),
         accept_defaults: true,
+        no_vcs: false,
     };
     manager
         .get("http-empty")?
@@ -56,6 +57,7 @@ async fn add_fileserver_does_not_create_dir() -> anyhow::Result<()> {
         output_path: app_dir.path().join("fs"),
         values: HashMap::new(),
         accept_defaults: true,
+        no_vcs: false,
     };
     manager
         .get("static-fileserver")?
diff --git a/src/commands/new.rs b/src/commands/new.rs
index d87b1acda6..728ae396d9 100644
--- a/src/commands/new.rs
+++ b/src/commands/new.rs
@@ -62,6 +62,10 @@ pub struct TemplateNewCommandCore {
     /// by accepting the defaults if available on the template
     #[clap(short = 'a', long = "accept-defaults", takes_value = false)]
     pub accept_defaults: bool,
+
+    /// An optional argument that allows to skip creating .gitignore
+    #[clap(long = "no-vcs", takes_value = false)]
+    pub no_vcs: bool,
 }
 
 /// Scaffold a new application based on a template.
@@ -179,6 +183,7 @@ impl TemplateNewCommandCore {
             output_path,
             values,
             accept_defaults: self.accept_defaults,
+            no_vcs: self.no_vcs,
         };
 
         template.run(options).interactive().await