diff --git a/lib/gemsmith/cli_options.rb b/lib/gemsmith/cli_options.rb
index <HASH>..<HASH> 100644
--- a/lib/gemsmith/cli_options.rb
+++ b/lib/gemsmith/cli_options.rb
@@ -91,7 +91,7 @@ module Gemsmith
     end
 
     def rails_version
-      @settings[:rails_version] || "4.0"
+      @settings[:rails_version] || "4.1"
     end
 
     def default_boolean key, value = false
diff --git a/spec/cli_spec.rb b/spec/cli_spec.rb
index <HASH>..<HASH> 100644
--- a/spec/cli_spec.rb
+++ b/spec/cli_spec.rb
@@ -29,7 +29,7 @@ describe Gemsmith::CLI do
       expect(options[:github_user]).to eq((Gemsmith::Kit.git_config_value("github.user") || "unknown"))
       expect(options[:year]).to eq(Time.now.year)
       expect(options[:ruby_version]).to eq("2.1.2")
-      expect(options[:rails_version]).to eq("4.0")
+      expect(options[:rails_version]).to eq("4.1")
       expect(options[:post_install_message]).to eq(nil)
       expect(options[:bin]).to eq(false)
       expect(options[:rails]).to eq(false)
Updated Rails version default to <I>.