diff --git a/README.md b/README.md
index 03c71eda..3fd7e35a 100644
--- a/README.md
+++ b/README.md
@@ -510,7 +510,7 @@ Usage:
   kiplot [-b BOARD] [-e SCHEMA] [-c CONFIG] [-d OUT_DIR] [-s PRE]
          [-q | -v...] [-i] [TARGET...]
   kiplot [-c PLOT_CONFIG] --list
-  kiplot [-b BOARD] --example
+  kiplot [-b BOARD] [-d OUT_DIR] --example
   kiplot --help-list-outputs
   kiplot --help-output=HELP_OUTPUT
   kiplot --help-outputs
diff --git a/kiplot/__main__.py b/kiplot/__main__.py
index 9965ab8f..37d4a679 100644
--- a/kiplot/__main__.py
+++ b/kiplot/__main__.py
@@ -5,7 +5,7 @@ Usage:
   kiplot [-b BOARD] [-e SCHEMA] [-c CONFIG] [-d OUT_DIR] [-s PRE]
          [-q | -v...] [-i] [TARGET...]
   kiplot [-c PLOT_CONFIG] --list
-  kiplot [-b BOARD] --example
+  kiplot [-b BOARD] [-d OUT_DIR] --example
   kiplot --help-list-outputs
   kiplot --help-output=HELP_OUTPUT
   kiplot --help-outputs
@@ -172,7 +172,7 @@ def main():
         sys.exit(0)
     if args.example:
         check_board_file(args.board_file)
-        create_example(args.board_file)
+        create_example(args.board_file, GS.out_dir)
         sys.exit(0)
 
     # Determine the YAML file
diff --git a/kiplot/config_reader.py b/kiplot/config_reader.py
index 0c77ba46..a792eebd 100644
--- a/kiplot/config_reader.py
+++ b/kiplot/config_reader.py
@@ -303,12 +303,15 @@ def print_preflights_help():
         print('- {}: {}.'.format(n, help.rstrip()))
 
 
-def create_example(pcb_file):
-    if os.path.isfile(EXAMPLE_CFG):
-        logger.error(EXAMPLE_CFG+" already exists, won't overwrite")
+def create_example(pcb_file, out_dir):
+    if not os.path.exists(out_dir):
+        os.makedirs(out_dir)
+    fname = os.path.join(out_dir, EXAMPLE_CFG)
+    if os.path.isfile(fname):
+        logger.error(fname+" already exists, won't overwrite")
         exit(WONT_OVERWRITE)
-    with open(EXAMPLE_CFG, 'w') as f:
-        logger.info('Creating {} example configuration'.format(EXAMPLE_CFG))
+    with open(fname, 'w') as f:
+        logger.info('Creating {} example configuration'.format(fname))
         f.write('kiplot:\n  version: 1\n')
         # Preflights
         f.write('\npreflight:\n')
diff --git a/tests/test_plot/test_misc.py b/tests/test_plot/test_misc.py
index 86904046..9d7d981d 100644
--- a/tests/test_plot/test_misc.py
+++ b/tests/test_plot/test_misc.py
@@ -18,6 +18,9 @@ Tests miscellaneous stuff.
 - Guess the SCH and YAML
 - Guess the SCH and YAML when more than one is present
 - --list
+- Create example
+  - with PCB
+  - already exists
 
 For debug information use:
 pytest-3 --log-cli-level debug
@@ -35,7 +38,7 @@ from utils import context
 prev_dir = os.path.dirname(prev_dir)
 if prev_dir not in sys.path:
     sys.path.insert(0, prev_dir)
-from kiplot.misc import (EXIT_BAD_ARGS, EXIT_BAD_CONFIG, NO_PCB_FILE, NO_SCH_FILE)
+from kiplot.misc import (EXIT_BAD_ARGS, EXIT_BAD_CONFIG, NO_PCB_FILE, NO_SCH_FILE, EXAMPLE_CFG, WONT_OVERWRITE)
 
 
 POS_DIR = 'positiondir'
@@ -334,3 +337,29 @@ def test_help_preflights():
     ctx.run(extra=['--help-preflights'], no_verbose=True, no_out_dir=True, no_yaml_file=True, no_board_file=True)
     assert ctx.search_out('Supported preflight options')
     ctx.clean_up()
+
+
+def test_example_1():
+    ctx = context.TestContext('Example1', '3Rs', 'pre_and_position', '')
+    ctx.run(extra=['--example'], no_verbose=True, no_yaml_file=True, no_board_file=True)
+    assert ctx.expect_out_file(EXAMPLE_CFG)
+    os.remove(ctx.get_out_path(EXAMPLE_CFG))
+    ctx.clean_up()
+
+
+def test_example_2():
+    ctx = context.TestContext('Example2', 'good-project', 'pre_and_position', '')
+    ctx.run(extra=['--example'], no_verbose=True, no_yaml_file=True)
+    assert ctx.expect_out_file(EXAMPLE_CFG)
+    ctx.search_in_file(EXAMPLE_CFG, ['GND.Cu'])
+    os.remove(ctx.get_out_path(EXAMPLE_CFG))
+    ctx.clean_up()
+
+
+def test_example_3():
+    ctx = context.TestContext('Example3', 'good-project', 'pre_and_position', '')
+    ctx.run(extra=['--example'], no_verbose=True, no_yaml_file=True)
+    assert ctx.expect_out_file(EXAMPLE_CFG)
+    ctx.run(WONT_OVERWRITE, extra=['--example'], no_verbose=True, no_yaml_file=True)
+    os.remove(ctx.get_out_path(EXAMPLE_CFG))
+    ctx.clean_up()