diff --git a/cmd/fsi_integration_test.go b/cmd/fsi_integration_test.go
index 7ba13cd9f..922336f6c 100644
--- a/cmd/fsi_integration_test.go
+++ b/cmd/fsi_integration_test.go
@@ -904,6 +904,47 @@ run ` + "`qri save`" + ` to commit this dataset
 	}
 }
 
+// Test init with a directory will create that directory
+func TestInitWithDirectory(t *testing.T) {
+	fr := NewFSITestRunner(t, "qri_test_init_with_directory")
+	defer fr.Delete()
+
+	fr.ChdirToRoot()
+
+	// Init with a directory to create.
+	if err := fr.ExecCommand(fmt.Sprintf("qri init init_dir --name init_dir --format csv")); err != nil {
+		t.Fatalf(err.Error())
+	}
+
+	// Directory has been created by `qri init`
+	workDir := fr.ChdirToWorkDir("init_dir")
+
+	// Verify the directory contains the files that we expect.
+	dirContents := listDirectory(workDir)
+	expectContents := []string{".qri-ref", "body.csv", "meta.json", "schema.json"}
+	if diff := cmp.Diff(dirContents, expectContents); diff != "" {
+		t.Errorf("directory contents (-want +got):\n%s", diff)
+	}
+
+	// Status, check that the working directory has added files.
+	if err := fr.ExecCommand("qri status"); err != nil {
+		t.Fatalf(err.Error())
+	}
+
+	output := fr.GetCommandOutput()
+	expect := `for linked dataset [test_peer/init_dir]
+
+  add: meta (source: meta.json)
+  add: schema (source: schema.json)
+  add: body (source: body.csv)
+
+run ` + "`qri save`" + ` to commit this dataset
+`
+	if diff := cmpTextLines(expect, output); diff != "" {
+		t.Errorf("qri status (-want +got):\n%s", diff)
+	}
+}
+
 func parseRefFromSave(output string) string {
 	pos := strings.Index(output, "saved: ")
 	ref := output[pos+7:]
diff --git a/cmd/init.go b/cmd/init.go
index a4079ac72..947786b74 100644
--- a/cmd/init.go
+++ b/cmd/init.go
@@ -23,7 +23,9 @@ func NewInitCommand(f Factory, ioStreams ioes.IOStreams) *cobra.Command {
 			"group": "dataset",
 		},
 		RunE: func(cmd *cobra.Command, args []string) error {
-			o.Complete(f)
+			if err := o.Complete(f, args); err != nil {
+				return err
+			}
 			return o.Run()
 		},
 	}
@@ -42,17 +44,21 @@ type InitOptions struct {
 	Name           string
 	Format         string
 	SourceBodyPath string
+	Mkdir          string
 
 	DatasetRequests *lib.DatasetRequests
 	FSIMethods      *lib.FSIMethods
 }
 
 // Complete completes a dataset reference
-func (o *InitOptions) Complete(f Factory) (err error) {
+func (o *InitOptions) Complete(f Factory, args []string) (err error) {
 	if o.DatasetRequests, err = f.DatasetRequests(); err != nil {
 		return err
 	}
 	o.FSIMethods, err = f.FSIMethods()
+	if len(args) > 0 && args[0] != "." {
+		o.Mkdir = args[0]
+	}
 	return err
 }
 
@@ -63,9 +69,14 @@ func (o *InitOptions) Run() (err error) {
 		return err
 	}
 
-	// Suggestion for the dataset name defaults to the name of the current directory.
+	// Suggestion for the dataset name defaults to directory it is being linked into
 	if o.Name == "" {
-		suggestedName := varName.CreateVarNameFromString(filepath.Base(pwd))
+		var suggestedName string
+		if o.Mkdir == "" {
+			suggestedName = varName.CreateVarNameFromString(filepath.Base(pwd))
+		} else {
+			suggestedName = varName.CreateVarNameFromString(o.Mkdir)
+		}
 		o.Name = inputText(o.ErrOut, o.In, "Name of new dataset", suggestedName)
 	}
 
@@ -75,6 +86,7 @@ func (o *InitOptions) Run() (err error) {
 
 	p := &lib.InitFSIDatasetParams{
 		Dir:            pwd,
+		Mkdir:          o.Mkdir,
 		Format:         o.Format,
 		Name:           o.Name,
 		SourceBodyPath: o.SourceBodyPath,
diff --git a/fsi/init.go b/fsi/init.go
index 43d2b31c3..86d8f2959 100644
--- a/fsi/init.go
+++ b/fsi/init.go
@@ -15,6 +15,7 @@ type InitParams struct {
 	Dir            string
 	Name           string
 	Format         string
+	Mkdir          string
 	SourceBodyPath string
 }
 
@@ -30,7 +31,22 @@ func (fsi *FSI) InitDataset(p InitParams) (name string, err error) {
 		return "", fmt.Errorf("invalid path to initialize. '%s' is not a directory", p.Dir)
 	}
 
-	if err = canInitDir(p.Dir); err != nil {
+	// TODO(dlong): This function should more closely resemble Checkout in lib/fsi.go
+
+	// Either use an existing directory, or create one at the given directory.
+	var targetPath string
+	if p.Mkdir == "" {
+		targetPath = p.Dir
+	} else {
+		targetPath = filepath.Join(p.Dir, p.Mkdir)
+		// Create the directory. It is not an error for the directory to already exist, as long
+		// as it is not already linked, which is checked below.
+		if err := os.Mkdir(targetPath, os.ModePerm); err != nil {
+			return "", err
+		}
+	}
+
+	if err = canInitDir(targetPath); err != nil {
 		return "", err
 	}
 
@@ -57,7 +73,7 @@ func (fsi *FSI) InitDataset(p InitParams) (name string, err error) {
 	}
 
 	// Create the link file, containing the dataset reference.
-	if name, err = fsi.CreateLink(p.Dir, ref.AliasString()); err != nil {
+	if name, err = fsi.CreateLink(targetPath, ref.AliasString()); err != nil {
 		return name, err
 	}
 
@@ -69,7 +85,7 @@ func (fsi *FSI) InitDataset(p InitParams) (name string, err error) {
 		"homeURL": ""
 	}
 	`)
-	if err := ioutil.WriteFile(filepath.Join(p.Dir, "meta.json"), metaSkeleton, os.ModePerm); err != nil {
+	if err := ioutil.WriteFile(filepath.Join(targetPath, "meta.json"), metaSkeleton, os.ModePerm); err != nil {
 		return name, err
 	}
 
@@ -107,7 +123,7 @@ func (fsi *FSI) InitDataset(p InitParams) (name string, err error) {
 		}
 	}
 	data, err = json.MarshalIndent(schema, "", " ")
-	if err := ioutil.WriteFile(filepath.Join(p.Dir, "schema.json"), data, os.ModePerm); err != nil {
+	if err := ioutil.WriteFile(filepath.Join(targetPath, "schema.json"), data, os.ModePerm); err != nil {
 		return name, err
 	}
 
@@ -129,7 +145,7 @@ func (fsi *FSI) InitDataset(p InitParams) (name string, err error) {
 			return "", err
 		}
 	}
-	bodyFilename := filepath.Join(p.Dir, fmt.Sprintf("body.%s", p.Format))
+	bodyFilename := filepath.Join(targetPath, fmt.Sprintf("body.%s", p.Format))
 	if err := ioutil.WriteFile(bodyFilename, bodyBytes, os.ModePerm); err != nil {
 		return "", err
 	}