diff --git a/tools/installer/commands/install.js b/tools/installer/commands/install.js
index 61598a2cf..4df7981ed 100644
--- a/tools/installer/commands/install.js
+++ b/tools/installer/commands/install.js
@@ -96,7 +96,18 @@ module.exports = {
       }
 
       const config = await ui.promptInstall(options);
-      config.noBadge = options.badge === false;
+
+      // Ask about badge unless --no-badge or --yes
+      if (options.badge === false) {
+        config.noBadge = true;
+      } else if (options.yes) {
+        config.noBadge = false;
+      } else {
+        config.noBadge = !(await prompts.confirm({
+          message: 'Add BMAD badge to your README?',
+          default: true,
+        }));
+      }
 
       // Handle cancel
       if (config.actionType === 'cancel') {
diff --git a/tools/installer/core/badge.js b/tools/installer/core/badge.js
index 7623c256b..0a9b250f5 100644
--- a/tools/installer/core/badge.js
+++ b/tools/installer/core/badge.js
@@ -73,6 +73,11 @@ function removeBadge(content) {
     .join('\n');
 }
 
+function createReadmeWithBadge(owner, repo, projectName) {
+  const badgeLine = generateBadgeMarkdown(owner, repo);
+  return `# ${projectName}\n\n${badgeLine}\n`;
+}
+
 module.exports = {
   resolveGitRemote,
   findReadme,
@@ -80,4 +85,5 @@ module.exports = {
   generateBadgeMarkdown,
   injectBadge,
   removeBadge,
+  createReadmeWithBadge,
 };
diff --git a/tools/installer/core/installer.js b/tools/installer/core/installer.js
index b6c2d8e52..580ecb57d 100644
--- a/tools/installer/core/installer.js
+++ b/tools/installer/core/installer.js
@@ -1061,7 +1061,12 @@ class Installer {
 
     const readmePath = await badge.findReadme(projectDir);
     if (!readmePath) {
-      addResult('Badge', 'warn', 'no README found');
+      // No README — create one with the badge
+      const projectName = path.basename(projectDir);
+      const content = badge.createReadmeWithBadge(remote.owner, remote.repo, projectName);
+      const newReadmePath = path.join(projectDir, 'README.md');
+      await fs.writeFile(newReadmePath, content, 'utf8');
+      addResult('Badge', 'ok', 'created README.md with badge');
       return;
     }