diff --git a/merb-gen/lib/generators/merb/merb_flat.rb b/merb-gen/lib/generators/merb/merb_flat.rb
index <HASH>..<HASH> 100644
--- a/merb-gen/lib/generators/merb/merb_flat.rb
+++ b/merb-gen/lib/generators/merb/merb_flat.rb
@@ -16,6 +16,8 @@ module Merb::Generators
     
     glob!
     
+    empty_directory :gems, 'gems'
+    
     def destination_root
       File.join(@destination_root, base_name)
     end
diff --git a/merb-gen/lib/generators/merb/merb_full.rb b/merb-gen/lib/generators/merb/merb_full.rb
index <HASH>..<HASH> 100644
--- a/merb-gen/lib/generators/merb/merb_full.rb
+++ b/merb-gen/lib/generators/merb/merb_full.rb
@@ -20,6 +20,8 @@ module Merb::Generators
     
     glob!
     
+    empty_directory :gems, 'gems'
+        
     first_argument :name, :required => true, :desc => "Application name"
     
     invoke :layout do |generator|
Added empty ./gems dir for merb-gen app (and --flat)