diff --git a/src/generator.py b/src/generator.py
new file mode 100644
index 0000000..56174fd
--- /dev/null
+++ b/src/generator.py
@@ -0,0 +1,19 @@
+import os
+
+def create_project(project_name):
+    """Creates a new project folder with starter files (README.md and main.py).
+    If the folder already exists, prints a massage instead of crashing."""
+    try:
+        os.makedirs(project_name)
+        print(f"Created project folder: {project_name}")
+
+        with open(os.path.join(project_name, "README.md"), "w") as f:
+            f.write(f"# {project_name}\n")
+
+        with open(os.path.join(project_name, "main.py"), "w") as f:
+            f.write("print('Hello from your new project!')\n")
+
+        print("Starter files generated.")
+
+    except FileExistsError:
+        print(f"A project named '{project_name}' already exists. Choose a different name.")
\ No newline at end of file
diff --git a/src/main.py b/src/main.py
index 6085a40..13d5eca 100644
--- a/src/main.py
+++ b/src/main.py
@@ -1,6 +1,7 @@
 #!/usr/bin/env python3
 
 from templates import list_templates
+from generator import create_project
 
 def main():
   print("🚀 Welcome to Create Forge App")