diff --git a/src/generate_bundle_skel.sh b/src/generate_bundle_skel.sh
new file mode 100755
index 000000000..0a28a3f26
--- /dev/null
+++ b/src/generate_bundle_skel.sh
@@ -0,0 +1,28 @@
+#!/bin/bash
+
+# Generate basic template for a new overlay package
+
+# Rename the package and package version variables and run this script to
+# generate a new overlay template
+
+package=test
+ver=2.1
+
+packcaps=${package^^}
+
+echo "Generating new overlay bundle template for $package..."
+
+cp -r minimal_overlay/bundles/coreutils minimal_overlay/bundles/$package
+
+sed -i "s/.*Full path.*/# Full path will be something like \'work\/overlay\/$package\/$package-$ver\'./" minimal_overlay/bundles/$package/01_get.sh
+sed -i "s/.*Extract coreutils.*/# Extract coreutils to folder \'work\/overlay\/$package\'./" minimal_overlay/bundles/$package/01_get.sh
+sed -i "s/COREUTILS/$packcaps/g" minimal_overlay/bundles/$package/01_get.sh
+sed -i "s/coreutils/$package/g" minimal_overlay/bundles/$package/01_get.sh
+
+sed -i "s/.*source directory which.*/# Change to the coreutils source directory which ls finds, e.g. \'$package-$ver\'./" minimal_overlay/bundles/$package/02_build.sh
+sed -i "s/COREUTILS/$packcaps/g" minimal_overlay/bundles/$package/02_build.sh
+sed -i "s/coreutils/$package/g" minimal_overlay/bundles/$package/02_build.sh
+
+echo "Created new overlay bundle for $package."
+echo "Update .config with source location and a brief description."
+echo "Update README with package description and dependencies."