diff --git a/admin/class-create-theme.php b/admin/class-create-theme.php
index 11f76d13..b8907b79 100644
--- a/admin/class-create-theme.php
+++ b/admin/class-create-theme.php
@@ -103,16 +103,17 @@ function create_sibling_theme( $theme, $screenshot ) {
 		$theme_slug = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']          = sanitize_text_field( $theme['name'] );
-		$theme['description']   = sanitize_text_field( $theme['description'] );
-		$theme['uri']           = sanitize_text_field( $theme['uri'] );
-		$theme['author']        = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']    = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom']   = sanitize_text_field( $theme['tags_custom'] );
-		$theme['image_credits'] = sanitize_textarea_field( $theme['image_credits'] );
-		$theme['slug']          = $theme_slug;
-		$theme['template']      = wp_get_theme()->get( 'Template' );
-		$theme['text_domain']   = $theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['image_credits']       = sanitize_textarea_field( $theme['image_credits'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['slug']                = $theme_slug;
+		$theme['template']            = wp_get_theme()->get( 'Template' );
+		$theme['text_domain']         = $theme_slug;
 
 		// Create ZIP file in the temporary directory.
 		$filename = tempnam( get_temp_dir(), $theme['slug'] );
@@ -164,17 +165,18 @@ function clone_theme( $theme, $screenshot ) {
 		$theme_slug = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']           = sanitize_text_field( $theme['name'] );
-		$theme['description']    = sanitize_text_field( $theme['description'] );
-		$theme['uri']            = sanitize_text_field( $theme['uri'] );
-		$theme['author']         = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']     = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom']    = sanitize_text_field( $theme['tags_custom'] );
-		$theme['image_credits']  = sanitize_textarea_field( $theme['image_credits'] );
-		$theme['slug']           = $theme_slug;
-		$theme['template']       = '';
-		$theme['original_theme'] = wp_get_theme()->get( 'Name' );
-		$theme['text_domain']    = $theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['image_credits']       = sanitize_textarea_field( $theme['image_credits'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['slug']                = $theme_slug;
+		$theme['template']            = '';
+		$theme['original_theme']      = wp_get_theme()->get( 'Name' );
+		$theme['text_domain']         = $theme_slug;
 
 		// Use previous theme's tags if custom tags are empty.
 		if ( empty( $theme['tags_custom'] ) ) {
@@ -235,17 +237,18 @@ function create_child_theme( $theme, $screenshot ) {
 		$child_theme_slug  = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']            = sanitize_text_field( $theme['name'] );
-		$theme['description']     = sanitize_text_field( $theme['description'] );
-		$theme['uri']             = sanitize_text_field( $theme['uri'] );
-		$theme['author']          = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']      = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom']     = sanitize_text_field( $theme['tags_custom'] );
-		$theme['image_credits']   = sanitize_textarea_field( $theme['image_credits'] );
-		$theme['is_parent_theme'] = true;
-		$theme['text_domain']     = $child_theme_slug;
-		$theme['template']        = $parent_theme_slug;
-		$theme['slug']            = $child_theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['image_credits']       = sanitize_textarea_field( $theme['image_credits'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['is_parent_theme']     = true;
+		$theme['text_domain']         = $child_theme_slug;
+		$theme['template']            = $parent_theme_slug;
+		$theme['slug']                = $child_theme_slug;
 
 		// Create ZIP file in the temporary directory.
 		$filename = tempnam( get_temp_dir(), $theme['slug'] );
@@ -312,16 +315,17 @@ function create_blank_theme( $theme, $screenshot ) {
 		$theme_slug = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']          = sanitize_text_field( $theme['name'] );
-		$theme['description']   = sanitize_text_field( $theme['description'] );
-		$theme['uri']           = sanitize_text_field( $theme['uri'] );
-		$theme['author']        = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']    = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom']   = sanitize_text_field( $theme['tags_custom'] );
-		$theme['image_credits'] = sanitize_textarea_field( $theme['image_credits'] );
-		$theme['template']      = '';
-		$theme['slug']          = $theme_slug;
-		$theme['text_domain']   = $theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['image_credits']       = sanitize_textarea_field( $theme['image_credits'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['template']            = '';
+		$theme['slug']                = $theme_slug;
+		$theme['text_domain']         = $theme_slug;
 
 		// Create theme directory.
 		$source           = plugin_dir_path( __DIR__ ) . 'assets/boilerplate';
diff --git a/admin/create-theme/theme-form.php b/admin/create-theme/theme-form.php
index 77677879..e9f12d96 100644
--- a/admin/create-theme/theme-form.php
+++ b/admin/create-theme/theme-form.php
@@ -163,7 +163,7 @@ public static function create_admin_form_page() {
 									<input type="file" accept=".png"  name="screenshot" id="screenshot" class="upload"/>
 								</label>
 								<br /><br />
-								<label id="image_credits_input">
+								<label class="hide-on-blank-theme">
 									<?php _e( 'Image Credits:', 'create-block-theme' ); ?><br />
 									<small><?php _e( 'List the credits for each image you have included in the theme. Include the image name, license type, and source URL.', 'create-block-theme' ); ?></small><br />
 									<small>
@@ -186,6 +186,28 @@ public static function create_admin_form_page() {
 									<textarea placeholder="<?php echo $image_credits_placeholder; ?>" rows="4" cols="50" name="theme[image_credits]" class="large-text"></textarea>
 									<br /><br />
 								</label>
+								<label class="hide-on-blank-theme">
+									<?php _e( 'Recommended Plugins:', 'create-block-theme' ); ?><br />
+									<small>
+										<?php
+										printf(
+											/* Translators: Recommended plugins link. */
+											esc_html__( 'List the recommended plugins for this theme. e.g. contact forms, social media. Plugins must be from the WordPress.org plugin repository (%s).', 'create-block-theme' ),
+											'<a href="' . esc_url( __( 'https://make.wordpress.org/themes/handbook/review/required/#6-plugins', 'create-block-theme' ) ) . '" target="_blank">read more</a>'
+										);
+										?>
+									</small><br />
+									<?php
+									$recommended_plugins_placeholder = __(
+										'Plugin Name
+https://wordpress.org/plugins/plugin-name/
+Plugin Description',
+										'create-block-theme'
+									);
+									?>
+									<textarea placeholder="<?php echo $recommended_plugins_placeholder; ?>" rows="4" cols="50" name="theme[recommended_plugins]" class="large-text"></textarea>
+									<br /><br />
+								</label>
 								<div>
 									<?php Theme_Tags::theme_tags_section(); ?>
 								</div>
diff --git a/admin/create-theme/theme-readme.php b/admin/create-theme/theme-readme.php
index 2dc7bd58..0455c1d2 100644
--- a/admin/create-theme/theme-readme.php
+++ b/admin/create-theme/theme-readme.php
@@ -5,36 +5,28 @@ class Theme_Readme {
 	* Build a readme.txt file for CHILD/GRANDCHILD themes.
 	*/
 	public static function build_readme_txt( $theme ) {
-		$slug                   = $theme['slug'];
-		$name                   = $theme['name'];
-		$description            = $theme['description'];
-		$uri                    = $theme['uri'];
-		$author                 = $theme['author'];
-		$author_uri             = $theme['author_uri'];
-		$copy_year              = gmdate( 'Y' );
-		$wp_version             = get_bloginfo( 'version' );
-		$image_credits          = $theme['image_credits'] ?? '';
-		$is_parent_theme        = $theme['is_parent_theme'] ?? false;
-		$original_theme         = $theme['original_theme'] ?? '';
+		$slug                = $theme['slug'];
+		$name                = $theme['name'];
+		$description         = $theme['description'];
+		$uri                 = $theme['uri'];
+		$author              = $theme['author'];
+		$author_uri          = $theme['author_uri'];
+		$copy_year           = gmdate( 'Y' );
+		$wp_version          = get_bloginfo( 'version' );
+		$image_credits       = $theme['image_credits'] ?? '';
+		$recommended_plugins = $theme['recommended_plugins'] ?? '';
+		$is_parent_theme     = $theme['is_parent_theme'] ?? false;
+		$original_theme      = $theme['original_theme'] ?? '';
+
+		// Handle copyright section.
 		$new_copyright_section  = $is_parent_theme || $original_theme ? true : false;
 		$original_theme_credits = $new_copyright_section ? self::original_theme_credits( $name, $is_parent_theme ) : '';
+		$copyright_section      = self::copyright_section( $new_copyright_section, $original_theme_credits, $name, $copy_year, $author, $image_credits );
 
-		$default_copyright_section = "== Copyright ==
-
-{$name} WordPress Theme, (C) {$copy_year} {$author}
-{$name} is distributed under the terms of the GNU GPL.
-
-This program is free software: you can redistribute it and/or modify
-it under the terms of the GNU General Public License as published by
-the Free Software Foundation, either version 2 of the License, or
-(at your option) any later version.
-
-This program is distributed in the hope that it will be useful,
-but WITHOUT ANY WARRANTY; without even the implied warranty of
-MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
-GNU General Public License for more details.";
-
-		$copyright_section = $new_copyright_section ? self::copyright_section( $original_theme_credits, $image_credits ) : $default_copyright_section;
+		// Handle recommended plugins section.
+		if ( $recommended_plugins ) {
+			$recommended_plugins_section = self::recommended_plugins_section( $recommended_plugins );
+		}
 
 		return "=== {$name} ===
 Contributors: {$author}
@@ -52,7 +44,7 @@ public static function build_readme_txt( $theme ) {
 
 = 0.0.1 =
 * Initial release
-
+{$recommended_plugins_section}
 {$copyright_section}
 ";
 	}
@@ -132,34 +124,138 @@ static function original_theme_credits( $new_name, $is_parent_theme = false ) {
 	 *
 	 * @return string
 	 */
-	static function copyright_section( $original_theme_credits, $image_credits ) {
-		$copyright_section       = '';
-		$copyright_section_intro = '== Copyright ==';
+	static function copyright_section( $new_copyright_section, $original_theme_credits, $name, $copy_year, $author, $image_credits ) {
+		// Default copyright section.
+		$copyright_section = "== Copyright ==
 
-		// Get current theme readme.txt
-		$current_readme         = get_stylesheet_directory() . '/readme.txt' ?? '';
-		$current_readme_content = file_exists( $current_readme ) ? file_get_contents( $current_readme ) : '';
+{$name} WordPress Theme, (C) {$copy_year} {$author}
+{$name} is distributed under the terms of the GNU GPL.
 
-		if ( ! $current_readme_content ) {
-			return;
-		}
+This program is free software: you can redistribute it and/or modify
+it under the terms of the GNU General Public License as published by
+the Free Software Foundation, either version 2 of the License, or
+(at your option) any later version.
 
-		// Copy copyright section from current theme readme.txt
-		if ( str_contains( $current_readme_content, $copyright_section_intro ) ) {
-			$copyright_section_start = strpos( $current_readme_content, $copyright_section_intro );
-			$copyright_section       = substr( $current_readme_content, $copyright_section_start );
+This program is distributed in the hope that it will be useful,
+but WITHOUT ANY WARRANTY; without even the implied warranty of
+MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+GNU General Public License for more details.";
+
+		// If a new copyright section is required, then build ones based on the current theme.
+		if ( $new_copyright_section ) {
+			$copyright_section_intro = '== Copyright ==';
+
+			// Get current theme readme.txt
+			$current_readme         = get_stylesheet_directory() . '/readme.txt' ?? '';
+			$current_readme_content = file_exists( $current_readme ) ? file_get_contents( $current_readme ) : '';
 
-			if ( $original_theme_credits ) {
-				$new_copyright_section = str_replace( $copyright_section_intro . "\n", '', $copyright_section );
-				$copyright_section     = $copyright_section_intro . "\n\n" . $original_theme_credits . "\n" . $new_copyright_section;
+			if ( ! $current_readme_content ) {
+				return;
 			}
 
-			if ( $image_credits ) {
-				$copyright_section = $copyright_section . "\n" . $image_credits;
+			// Copy copyright section from current theme readme.txt
+			if ( str_contains( $current_readme_content, $copyright_section_intro ) ) {
+				$copyright_section_start = strpos( $current_readme_content, $copyright_section_intro );
+				$copyright_section       = substr( $current_readme_content, $copyright_section_start );
 
+				if ( $original_theme_credits ) {
+					$new_copyright_section = str_replace( $copyright_section_intro . "\n", '', $copyright_section );
+					$copyright_section     = $copyright_section_intro . "\n\n" . $original_theme_credits . "\n" . $new_copyright_section;
+				}
 			}
 		}
 
+		if ( $image_credits ) {
+			$copyright_section = $copyright_section . "\n" . $image_credits;
+		}
+
 		return $copyright_section;
 	}
+
+	/**
+	 * Build Recommended Plugins section.
+	 *
+	 * @return string
+	 */
+	static function recommended_plugins_section( $recommended_plugins, $updated_readme = '' ) {
+		$recommended_plugins_section = '';
+
+		if ( ! $recommended_plugins ) {
+			return '';
+		}
+
+		$section_start = "\n== Recommended Plugins ==\n";
+
+		// Remove existing Recommended Plugins section.
+		if ( $updated_readme && str_contains( $updated_readme, $section_start ) ) {
+			$pattern = '/\s+== Recommended Plugins ==\s+(.*?)(?=(\n\=\=)|$)/s';
+			preg_match_all( $pattern, $updated_readme, $matches );
+			$current_section = $matches[0][0];
+			$updated_readme  = str_replace( $current_section, '', $updated_readme );
+		}
+
+		$recommended_plugins_section = $section_start . "\n" . $recommended_plugins . "\n";
+
+		if ( $updated_readme ) {
+			return $updated_readme . $recommended_plugins_section;
+		}
+
+		return $recommended_plugins_section;
+	}
+
+	/**
+	 * Update current readme.txt file, rather than building a new one.
+	 *
+	 * @return string
+	 */
+	public static function update_readme_txt( $theme ) {
+		$description         = $theme['description'];
+		$author              = $theme['author'];
+		$wp_version          = get_bloginfo( 'version' );
+		$image_credits       = $theme['image_credits'] ?? '';
+		$recommended_plugins = $theme['recommended_plugins'] ?? '';
+		$updated_readme      = '';
+		$current_readme      = get_stylesheet_directory() . '/readme.txt' ?? '';
+		$readme_content      = file_exists( $current_readme ) ? file_get_contents( $current_readme ) : '';
+
+		if ( ! $readme_content ) {
+			return;
+		}
+
+		$updated_readme = $readme_content;
+
+		// Update description.
+		if ( $description ) {
+			$pattern = '/(== Description ==)(.*?)(\n\n=|$)/s';
+			preg_match_all( $pattern, $updated_readme, $matches );
+			$current_description = $matches[0][0];
+			$updated_readme      = str_replace( $current_description, "== Description ==\n\n{$description}\n\n=", $updated_readme );
+		}
+
+		// Update Author/Contributors.
+		if ( $author ) {
+			$pattern = '/(Contributors:)(.*?)(\n|$)/s';
+			preg_match_all( $pattern, $updated_readme, $matches );
+			$current_uri    = $matches[0][0];
+			$updated_readme = str_replace( $current_uri, "Contributors: {$author}\n", $updated_readme );
+		}
+
+		// Update "Tested up to" version.
+		if ( $wp_version ) {
+			$pattern = '/(Tested up to:)(.*?)(\n|$)/s';
+			preg_match_all( $pattern, $updated_readme, $matches );
+			$current_uri    = $matches[0][0];
+			$updated_readme = str_replace( $current_uri, "Tested up to: {$wp_version}\n", $updated_readme );
+		}
+
+		if ( $recommended_plugins ) {
+			$updated_readme = self::recommended_plugins_section( $recommended_plugins, $updated_readme );
+		}
+
+		if ( $image_credits ) {
+			$updated_readme = $updated_readme . "\n\n" . $image_credits;
+		}
+
+		return $updated_readme;
+	}
 }
diff --git a/admin/create-theme/theme-tags.php b/admin/create-theme/theme-tags.php
index 16c6260d..fc9ae030 100644
--- a/admin/create-theme/theme-tags.php
+++ b/admin/create-theme/theme-tags.php
@@ -7,7 +7,7 @@
 
 class Theme_Tags {
 	/**
-	 * Build theme tags list for readme.txt.
+	 * Build theme tags list for style.css.
 	 *
 	 * @param array $theme Theme data.
 	 * @return string
diff --git a/admin/create-theme/theme-utils.php b/admin/create-theme/theme-utils.php
index 06b710b9..1e74b086 100644
--- a/admin/create-theme/theme-utils.php
+++ b/admin/create-theme/theme-utils.php
@@ -183,5 +183,24 @@ public static function add_media_to_folder( $location, $media ) {
 		}
 	}
 
+	public static function get_readme_data() {
+		$readme_location = get_template_directory() . '/readme.txt';
+
+		if ( ! file_exists( $readme_location ) ) {
+			throw new Exception( 'No readme file found' );
+		}
+
+		$readme_file_contents = file_get_contents( $readme_location );
+
+		$readme_file_details = array();
+
+		// Handle Recommended Plugins.
+		$pattern = '/== Recommended Plugins ==\s+(.*?)(\s+==|$)/s';
+		preg_match_all( $pattern, $readme_file_contents, $matches );
+		$readme_file_details['recommendedPlugins'] = $matches[1][0] ?? '';
+
+		return $readme_file_details;
+
+	}
 
 }
diff --git a/admin/js/form-script.js b/admin/js/form-script.js
index 4ffa482c..9f05bdc1 100644
--- a/admin/js/form-script.js
+++ b/admin/js/form-script.js
@@ -6,11 +6,7 @@ function toggleForm( element ) {
 	if ( ! element?.value ) return;
 	const themeType = element.value;
 
-	const imageCreditsInput = document.getElementById( 'image_credits_input' );
-	if ( imageCreditsInput ) {
-		imageCreditsInput.toggleAttribute( 'hidden', false );
-	}
-
+	toggleInputsOnBlankTheme();
 	hideAllForms();
 
 	switch ( themeType ) {
@@ -39,10 +35,7 @@ function toggleForm( element ) {
 				.getElementById( 'new_theme_metadata_form' )
 				.toggleAttribute( 'hidden', false );
 
-			if ( imageCreditsInput ) {
-				imageCreditsInput.toggleAttribute( 'hidden', true );
-			}
-
+			toggleInputsOnBlankTheme( true );
 			resetThemeTags( element.value );
 			validateThemeTags( 'subject' );
 			break;
@@ -59,6 +52,16 @@ function toggleForm( element ) {
 	}
 }
 
+function toggleInputsOnBlankTheme( isHidden = false ) {
+	const inputsHiddenOnBlankTheme = document.getElementsByClassName(
+		'hide-on-blank-theme'
+	);
+
+	for ( let i = 0; i < inputsHiddenOnBlankTheme.length; i++ ) {
+		inputsHiddenOnBlankTheme[ i ].toggleAttribute( 'hidden', isHidden );
+	}
+}
+
 function hideAllForms() {
 	const allForms = document.querySelectorAll( '.theme-form' );
 	allForms.forEach( ( form ) => {
diff --git a/includes/class-create-block-theme-api.php b/includes/class-create-block-theme-api.php
index 836e69e5..096bc3ac 100644
--- a/includes/class-create-block-theme-api.php
+++ b/includes/class-create-block-theme-api.php
@@ -86,6 +86,37 @@ public function register_rest_routes() {
 				},
 			)
 		);
+		register_rest_route(
+			'create-block-theme/v1',
+			'/get-readme-data',
+			array(
+				'methods'             => 'GET',
+				'callback'            => array( $this, 'rest_get_readme_data' ),
+				'permission_callback' => function () {
+					return current_user_can( 'edit_theme_options' );
+				},
+			)
+		);
+	}
+
+	function rest_get_readme_data( $request ) {
+		try {
+			$readme_data = Theme_Utils::get_readme_data();
+			return new WP_REST_Response(
+				array(
+					'status'  => 'SUCCESS',
+					'message' => __( 'Readme file data retrieved.', 'create-block-theme' ),
+					'data'    => $readme_data,
+				)
+			);
+		} catch ( Exception $error ) {
+			return new WP_REST_Response(
+				array(
+					'status'  => 'FAILURE',
+					'message' => $error->getMessage(),
+				)
+			);
+		}
 	}
 
 	function rest_clone_theme( $request ) {
@@ -97,15 +128,16 @@ function rest_clone_theme( $request ) {
 		$theme_slug = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']        = sanitize_text_field( $theme['name'] );
-		$theme['description'] = sanitize_text_field( $theme['description'] );
-		$theme['uri']         = sanitize_text_field( $theme['uri'] );
-		$theme['author']      = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']  = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom'] = sanitize_text_field( $theme['tags_custom'] );
-		$theme['template']    = '';
-		$theme['slug']        = $theme_slug;
-		$theme['text_domain'] = $theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['template']            = '';
+		$theme['slug']                = $theme_slug;
+		$theme['text_domain']         = $theme_slug;
 
 		// Create theme directory.
 		$source         = get_stylesheet_directory();
@@ -239,16 +271,17 @@ function rest_export_cloned_theme( $request ) {
 		$theme_slug = Theme_Utils::get_theme_slug( $theme['name'] );
 
 		// Sanitize inputs.
-		$theme['name']           = sanitize_text_field( $theme['name'] );
-		$theme['description']    = sanitize_text_field( $theme['description'] );
-		$theme['uri']            = sanitize_text_field( $theme['uri'] );
-		$theme['author']         = sanitize_text_field( $theme['author'] );
-		$theme['author_uri']     = sanitize_text_field( $theme['author_uri'] );
-		$theme['tags_custom']    = sanitize_text_field( $theme['tags_custom'] );
-		$theme['slug']           = $theme_slug;
-		$theme['template']       = '';
-		$theme['original_theme'] = wp_get_theme()->get( 'Name' );
-		$theme['text_domain']    = $theme_slug;
+		$theme['name']                = sanitize_text_field( $theme['name'] );
+		$theme['description']         = sanitize_text_field( $theme['description'] );
+		$theme['uri']                 = sanitize_text_field( $theme['uri'] );
+		$theme['author']              = sanitize_text_field( $theme['author'] );
+		$theme['author_uri']          = sanitize_text_field( $theme['author_uri'] );
+		$theme['tags_custom']         = sanitize_text_field( $theme['tags_custom'] );
+		$theme['recommended_plugins'] = sanitize_textarea_field( $theme['recommended_plugins'] );
+		$theme['slug']                = $theme_slug;
+		$theme['template']            = '';
+		$theme['original_theme']      = wp_get_theme()->get( 'Name' );
+		$theme['text_domain']         = $theme_slug;
 
 		// Use previous theme's tags if custom tags are empty.
 		if ( empty( $theme['tags_custom'] ) ) {
@@ -369,12 +402,16 @@ function rest_save_theme( $request ) {
 	}
 
 	/**
-	 * Update the theme metadata in the style.css file.
+	 * Update the theme metadata in the style.css and readme.txt files.
 	 */
 	function update_theme_metadata( $theme ) {
 		$style_css = file_get_contents( get_stylesheet_directory() . '/style.css' );
 		$style_css = Theme_Styles::update_style_css( $style_css, $theme );
 		file_put_contents( get_stylesheet_directory() . '/style.css', $style_css );
+		file_put_contents(
+			get_stylesheet_directory() . '/readme.txt',
+			Theme_Readme::update_readme_txt( $theme )
+		);
 	}
 
 	/**
diff --git a/src/editor-sidebar/update-panel.js b/src/editor-sidebar/update-panel.js
index 279b2a8d..e13e4219 100644
--- a/src/editor-sidebar/update-panel.js
+++ b/src/editor-sidebar/update-panel.js
@@ -1,5 +1,5 @@
 import { __ } from '@wordpress/i18n';
-import { useState } from '@wordpress/element';
+import { useEffect, useState } from '@wordpress/element';
 import { useDispatch, useSelect } from '@wordpress/data';
 import apiFetch from '@wordpress/api-fetch';
 import { store as noticesStore } from '@wordpress/notices';
@@ -18,6 +18,7 @@ import {
 	Button,
 	TextControl,
 	TextareaControl,
+	ExternalLink,
 } from '@wordpress/components';
 import { chevronLeft } from '@wordpress/icons';
 
@@ -32,9 +33,32 @@ export const UpdateThemePanel = () => {
 		author: '',
 		author_uri: '',
 		tags_custom: '',
+		recommended_plugins: '',
 	} );
 
-	useSelect( ( select ) => {
+	useEffect( () => {
+		const getThemeReadmeData = async () => {
+			return apiFetch( {
+				path: '/create-block-theme/v1/get-readme-data',
+				method: 'GET',
+			} ).then( ( response ) => {
+				if ( response.status === 'SUCCESS' ) {
+					return response.data;
+				}
+				return {};
+			} );
+		};
+		const setThemeReadmeData = async () => {
+			const themeReadmeData = await getThemeReadmeData();
+			setTheme( ( prevTheme ) => ( {
+				...prevTheme,
+				recommended_plugins: themeReadmeData.recommendedPlugins,
+			} ) );
+		};
+		setThemeReadmeData();
+	}, [] );
+
+	useSelect( async ( select ) => {
 		const themeData = select( 'core' ).getCurrentTheme();
 		setTheme( {
 			name: themeData.name.raw,
@@ -171,6 +195,28 @@ export const UpdateThemePanel = () => {
 						'create-block-theme'
 					) }
 				/>
+				<TextareaControl
+					label={ __( 'Recommended Plugins', 'create-block-theme' ) }
+					help={
+						<>
+							{ __(
+								'List the recommended plugins for this theme. e.g. contact forms, social media. Plugins must be from the WordPress.org plugin repository.'
+							) }
+							<br />
+							<ExternalLink href="https://make.wordpress.org/themes/handbook/review/required/#6-plugins">
+								{ __( 'Read more.' ) }
+							</ExternalLink>
+						</>
+					}
+					// eslint-disable-next-line @wordpress/i18n-no-collapsible-whitespace
+					placeholder={ __( `Plugin Name
+https://wordpress.org/plugins/plugin-name/
+Plugin Description` ) }
+					value={ theme.recommended_plugins }
+					onChange={ ( value ) =>
+						setTheme( { ...theme, recommended_plugins: value } )
+					}
+				/>
 				<TextControl
 					label={ __( 'Theme Subfolder', 'create-block-theme' ) }
 					value={ theme.subfolder }