diff --git a/docs/commands.md b/docs/commands.md
index eab8776ab..cad3114da 100644
--- a/docs/commands.md
+++ b/docs/commands.md
@@ -101,6 +101,7 @@ Skip dependencies installation
 Determine if CocoaPods should be installed when initializing a project. If set to `true` it will install pods, if set to `false`, it will skip the step entirely. If not used, prompt will be displayed
 
 #### `--npm`
+
 > [!WARNING]  
 > `--npm` is deprecated and will be removed in the future. Please use `--pm npm` instead.
 
@@ -117,6 +118,10 @@ Create project with custom package name for Android and bundle identifier for iO
 - contain at least two segments separated by dots, e.g. `com.example`
 - contain only alphanumeric characters and dots
 
+#### `--replace-directory <string>`
+
+Replaces the directory if it already exists
+
 ### `upgrade`
 
 Usage:
diff --git a/packages/cli/src/commands/init/errors/DirectoryAlreadyExistsError.ts b/packages/cli/src/commands/init/errors/DirectoryAlreadyExistsError.ts
new file mode 100644
index 000000000..38828df97
--- /dev/null
+++ b/packages/cli/src/commands/init/errors/DirectoryAlreadyExistsError.ts
@@ -0,0 +1,9 @@
+import {CLIError} from '@react-native-community/cli-tools';
+
+export default class DirectoryAlreadyExistsError extends CLIError {
+  constructor(directory: string) {
+    super(
+      `Cannot initialize new project because directory "${directory}" already exists. Please remove or rename the directory and try again.`,
+    );
+  }
+}
diff --git a/packages/cli/src/commands/init/index.ts b/packages/cli/src/commands/init/index.ts
index be2aaee2f..4d7e00d0f 100644
--- a/packages/cli/src/commands/init/index.ts
+++ b/packages/cli/src/commands/init/index.ts
@@ -47,5 +47,9 @@ export default {
       description:
         'Inits a project with a custom package name (Android) and bundle ID (iOS), e.g. com.example.app',
     },
+    {
+      name: '--replace-directory [boolean]',
+      description: 'Replaces the directory if it already exists.',
+    },
   ],
 };
diff --git a/packages/cli/src/commands/init/init.ts b/packages/cli/src/commands/init/init.ts
index 92aeeb461..42bdb7702 100644
--- a/packages/cli/src/commands/init/init.ts
+++ b/packages/cli/src/commands/init/init.ts
@@ -29,6 +29,7 @@ import {getYarnVersionIfAvailable} from '../../tools/yarn';
 import {createHash} from 'crypto';
 import createGitRepository from './createGitRepository';
 import deepmerge from 'deepmerge';
+import DirectoryAlreadyExistsError from './errors/DirectoryAlreadyExistsError';
 
 const DEFAULT_VERSION = 'latest';
 
@@ -43,6 +44,7 @@ type Options = {
   version?: string;
   packageName?: string;
   installPods?: string | boolean;
+  replaceDirectory?: string | boolean;
 };
 
 interface TemplateOptions {
@@ -55,6 +57,7 @@ interface TemplateOptions {
   skipInstall?: boolean;
   packageName?: string;
   installCocoaPods?: string | boolean;
+  replaceDirectory?: string | boolean;
 }
 
 function doesDirectoryExist(dir: string) {
@@ -65,11 +68,21 @@ function getConflictsForDirectory(directory: string) {
   return readdirSync(directory);
 }
 
-async function setProjectDirectory(directory: string) {
+async function setProjectDirectory(
+  directory: string,
+  replaceDirectory: string,
+) {
   const directoryExists = doesDirectoryExist(directory);
+
+  if (replaceDirectory === 'false' && directoryExists) {
+    throw new DirectoryAlreadyExistsError(directory);
+  }
+
   let deleteDirectory = false;
 
-  if (directoryExists) {
+  if (replaceDirectory === 'true' && directoryExists) {
+    deleteDirectory = true;
+  } else if (directoryExists) {
     const conflicts = getConflictsForDirectory(directory);
 
     if (conflicts.length > 0) {
@@ -92,9 +105,7 @@ async function setProjectDirectory(directory: string) {
       deleteDirectory = replace;
 
       if (!replace) {
-        throw new CLIError(
-          'Please remove files manually, or choose other directory.',
-        );
+        throw new DirectoryAlreadyExistsError(directory);
       }
     }
   }
@@ -146,6 +157,7 @@ async function createFromTemplate({
   skipInstall,
   packageName,
   installCocoaPods,
+  replaceDirectory,
 }: TemplateOptions) {
   logger.debug('Initializing new project');
   logger.log(banner);
@@ -168,7 +180,10 @@ async function createFromTemplate({
     packageManager = 'npm';
   }
 
-  const projectDirectory = await setProjectDirectory(directory);
+  const projectDirectory = await setProjectDirectory(
+    directory,
+    String(replaceDirectory),
+  );
 
   const loader = getLoader({text: 'Downloading template'});
   const templateSourceDir = fs.mkdtempSync(
@@ -381,6 +396,7 @@ async function createProject(
     skipInstall: options.skipInstall,
     packageName: options.packageName,
     installCocoaPods: options.installPods,
+    replaceDirectory: options.replaceDirectory,
   });
 }