diff --git a/forc-util/src/lib.rs b/forc-util/src/lib.rs
index b9dc06698c6..0558cc02810 100644
--- a/forc-util/src/lib.rs
+++ b/forc-util/src/lib.rs
@@ -207,6 +207,10 @@ pub fn println_green(txt: &str) {
     println_std_out(txt, TermColor::Green);
 }
 
+pub fn println_light_blue(txt: &str) {
+    println_std_out(txt, TermColor::Rgb(40, 200, 255));
+}
+
 pub fn print_light_blue(txt: &str) {
     let stdout = StandardStream::stdout(ColorChoice::Always);
     print_with_color(txt, TermColor::Rgb(40, 200, 255), stdout);
diff --git a/forc/src/ops/forc_init.rs b/forc/src/ops/forc_init.rs
index 4f466eece3f..2532e5d27f8 100644
--- a/forc/src/ops/forc_init.rs
+++ b/forc/src/ops/forc_init.rs
@@ -1,7 +1,7 @@
 use crate::cli::InitCommand;
 use crate::utils::{defaults, program_type::ProgramType::*};
 use anyhow::Result;
-use forc_util::{println_green, validate_name};
+use forc_util::{println_green, println_light_blue, validate_name};
 use std::fs;
 use std::path::{Path, PathBuf};
 use sway_utils::constants;
@@ -34,6 +34,16 @@ fn print_welcome_message() {
     );
 }
 
+pub fn canonicalize(path: &PathBuf) -> Result<String> {
+    match std::fs::canonicalize(path) {
+        Ok(p) => {
+            let as_str = String::from(p.to_string_lossy());
+            Ok(as_str)
+        }
+        Err(e) => anyhow::bail!("Could not derive canonical path: '{}'", e),
+    }
+}
+
 pub fn init(command: InitCommand) -> Result<()> {
     let project_dir = match &command.path {
         Some(p) => PathBuf::from(p),
@@ -63,6 +73,16 @@ pub fn init(command: InitCommand) -> Result<()> {
     // Make a new directory for the project
     fs::create_dir_all(Path::new(&project_dir).join("src"))?;
 
+    if command.verbose {
+        println_light_blue(&format!(
+            "\nUsing project directory at {}",
+            canonicalize(&project_dir)?
+        ))
+    }
+
+    // Make directory for tests
+    fs::create_dir_all(Path::new(&project_dir).join("tests"))?;
+
     // Insert default manifest file
     match program_type {
         Library => fs::write(
@@ -75,6 +95,12 @@ pub fn init(command: InitCommand) -> Result<()> {
         )?,
     }
 
+    // Insert default test manifest file
+    fs::write(
+        Path::new(&project_dir).join(constants::TEST_MANIFEST_FILE_NAME),
+        defaults::default_tests_manifest(project_name),
+    )?;
+
     match program_type {
         Contract => fs::write(
             Path::new(&project_dir)
@@ -103,19 +129,29 @@ pub fn init(command: InitCommand) -> Result<()> {
     }
 
     // Insert default test function
-    fs::write(
-        Path::new(&project_name).join("tests").join("harness.rs"),
-        defaults::default_test_program(project_name),
-    )?;
+    let harness_path = Path::new(&project_dir).join("tests").join("harness.rs");
+    fs::write(&harness_path, defaults::default_test_program(project_name))?;
+
+    if command.verbose {
+        println_light_blue(&format!(
+            "\nCreating test harness at {}",
+            canonicalize(&harness_path)?
+        ));
+    }
 
     // Ignore default `out` and `target` directories created by forc and cargo.
-    fs::write(
-        Path::new(&project_name).join(".gitignore"),
-        defaults::default_gitignore(),
-    )?;
+    let gitignore_path = Path::new(&project_dir).join(".gitignore");
+    fs::write(&gitignore_path, defaults::default_gitignore())?;
+
+    if command.verbose {
+        println_light_blue(&format!(
+            "\nCreating .gitignore at {}",
+            canonicalize(&gitignore_path)?
+        ));
+    }
 
     println_green(&format!(
-        "Successfully created {program_type}: {project_name}",
+        "\nSuccessfully created {program_type}: {project_name}",
     ));
 
     print_welcome_message();