diff --git a/.gitmodules b/.gitmodules
new file mode 100644
index 000000000..b6901d5e7
--- /dev/null
+++ b/.gitmodules
@@ -0,0 +1,3 @@
+[submodule "commands/testdata/templates"]
+	path = commands/testdata/templates
+	url = https://github.com/openfaas/templates.git
diff --git a/commands/fetch_templates.go b/commands/fetch_templates.go
index 5caa50671..523e9575a 100644
--- a/commands/fetch_templates.go
+++ b/commands/fetch_templates.go
@@ -36,7 +36,7 @@ func fetchTemplates(templateURL string, overwrite bool) error {
 	log.Printf("Attempting to expand templates from %s\n", templateURL)
 	pullDebugPrint(fmt.Sprintf("Temp files in %s", dir))
 	args := map[string]string{"dir": dir, "repo": templateURL}
-	if err := versioncontrol.GitClone.Invoke(args); err != nil {
+	if err := versioncontrol.GitClone.Invoke(".", args); err != nil {
 		return err
 	}
 
diff --git a/commands/fetch_templates_test.go b/commands/fetch_templates_test.go
index 93dff9144..9d924343d 100644
--- a/commands/fetch_templates_test.go
+++ b/commands/fetch_templates_test.go
@@ -5,8 +5,10 @@ package commands
 import (
 	"io/ioutil"
 	"os"
+	"path/filepath"
 	"testing"
 
+	"github.com/openfaas/faas-cli/builder"
 	"github.com/openfaas/faas-cli/versioncontrol"
 )
 
@@ -41,12 +43,13 @@ func setupLocalTemplateRepo(t *testing.T) string {
 		t.Error(err)
 	}
 
-	args := map[string]string{
-		"dir":  dir,
-		"repo": defaultTemplateRepository,
-	}
-	if err := versioncontrol.GitClone.Invoke(args); err != nil {
-		t.Error(err)
+	// Copy the submodule to temp directory to avoid altering it during tests
+	testRepoGit := filepath.Join("testdata", "templates")
+	builder.CopyFiles(testRepoGit, dir)
+	// Remove submodule .git file
+	os.Remove(filepath.Join(dir, ".git"))
+	if err := versioncontrol.GitInitRepo.Invoke(dir, map[string]string{"dir": "."}); err != nil {
+		t.Fatal(err)
 	}
 
 	return dir
diff --git a/commands/new_function.go b/commands/new_function.go
index c52b01645..789e8945c 100644
--- a/commands/new_function.go
+++ b/commands/new_function.go
@@ -7,8 +7,8 @@ import (
 	"fmt"
 	"io/ioutil"
 	"os"
+	"path/filepath"
 	"sort"
-	"strings"
 
 	"github.com/openfaas/faas-cli/builder"
 	"github.com/openfaas/faas-cli/stack"
@@ -20,7 +20,6 @@ var (
 	list bool
 )
 
-// Implement interface for sorting array of strings
 type StrSort []string
 
 func (a StrSort) Len() int           { return len(a) }
@@ -62,12 +61,8 @@ func runNewFunction(cmd *cobra.Command, args []string) error {
 			}
 		}
 
-		fmt.Printf(`Languages available as templates:
-` + printAvailableTemplates(availableTemplates) + `
+		fmt.Printf("Languages available as templates:\n%s\n", printAvailableTemplates(availableTemplates))
 
-Or alternatively create a folder containing a Dockerfile, then pick
-the "Dockerfile" lang type in your YAML file.
-`)
 		return nil
 	}
 
@@ -90,36 +85,19 @@ the "Dockerfile" lang type in your YAML file.
 		return fmt.Errorf("folder: %s already exists", functionName)
 	}
 
-	if err := os.Mkdir("./"+functionName, 0700); err == nil {
+	if err := os.Mkdir(functionName, 0700); err == nil {
 		fmt.Printf("Folder: %s created.\n", functionName)
+	} else {
+		return fmt.Errorf("folder: could not create %s : %s", functionName, err)
 	}
 
 	if err := updateGitignore(); err != nil {
 		return fmt.Errorf("got unexpected error while updating .gitignore file: %s", err)
 	}
 
-	// Only "template" language templates - Dockerfile must be custom, so start with empty directory.
-	if strings.ToLower(lang) != "dockerfile" {
-		builder.CopyFiles("./template/"+lang+"/function/", "./"+functionName+"/")
-	} else {
-		ioutil.WriteFile("./"+functionName+"/Dockerfile", []byte(`FROM alpine:3.6
-# Use any image as your base image, or "scratch"
-# Add fwatchdog binary via https://github.com/openfaas/faas/releases/
-# Then set fprocess to the process you want to invoke per request - i.e. "cat" or "my_binary"
-
-ADD https://github.com/openfaas/faas/releases/download/0.6.9/fwatchdog /usr/bin
-# COPY ./fwatchdog /usr/bin/
-RUN chmod +x /usr/bin/fwatchdog
-
-# Populate example here - i.e. "cat", "sha512sum" or "node index.js"
-ENV fprocess="wc -l"
+	builder.CopyFiles(filepath.Join("template", lang, "function"), functionName)
 
-HEALTHCHECK --interval=5s CMD [ -e /tmp/.lock ] || exit 1
-CMD ["fwatchdog"]
-`), 0600)
-	}
-
-	stack := `provider:
+	stackYaml := `provider:
   name: faas
   gateway: ` + gateway + `
 
@@ -134,7 +112,7 @@ functions:
 	fmt.Println()
 	fmt.Printf("Function created in folder: %s\n", functionName)
 
-	stackWriteErr := ioutil.WriteFile("./"+functionName+".yml", []byte(stack), 0600)
+	stackWriteErr := ioutil.WriteFile("./"+functionName+".yml", []byte(stackYaml), 0600)
 	if stackWriteErr != nil {
 		return fmt.Errorf("error writing stack file %s", stackWriteErr)
 	}
@@ -148,7 +126,6 @@ func printAvailableTemplates(availableTemplates []string) string {
 	sort.Sort(StrSort(availableTemplates))
 	for _, template := range availableTemplates {
 		result += fmt.Sprintf("- %s\n", template)
-
 	}
 	return result
 }
diff --git a/commands/new_function_test.go b/commands/new_function_test.go
index 193bb245e..75df2a99d 100644
--- a/commands/new_function_test.go
+++ b/commands/new_function_test.go
@@ -6,7 +6,6 @@ package commands
 import (
 	"fmt"
 	"os"
-	"path/filepath"
 	"reflect"
 	"regexp"
 	"strings"
@@ -21,6 +20,7 @@ const InvalidYAMLMsg = `is not valid YAML`
 const InvalidYAMLMap = `map is empty`
 const ListOptionOutput = `Languages available as templates:
 - csharp
+- dockerfile
 - go
 - go-armhf
 - node
@@ -123,29 +123,23 @@ func runNewFunctionTest(t *testing.T, nft NewFunctionTest) {
 }
 
 func Test_newFunctionTests(t *testing.T) {
-
-	homeDir, _ := filepath.Abs(".")
-	if err := os.Chdir("testdata/new_function"); err != nil {
-		t.Fatalf("Error on cd to testdata dir: %v", err)
-	}
-
-	for _, test := range NewFunctionTests {
-		t.Run(test.title, func(t *testing.T) {
-			runNewFunctionTest(t, test)
+	// Download templates
+	templatePullLocalTemplateRepo(t)
+	defer tearDownFetchTemplates(t)
+	defer tearDownNewFunction(t)
+
+	for _, testcase := range NewFunctionTests {
+		t.Run(testcase.title, func(t *testing.T) {
+			runNewFunctionTest(t, testcase)
 		})
 	}
-
-	if err := os.Chdir(homeDir); err != nil {
-		t.Fatalf("Error on cd back to commands/ directory: %v", err)
-	}
 }
 
 func Test_newFunctionListCmds(t *testing.T) {
-
-	homeDir, _ := filepath.Abs(".")
-	if err := os.Chdir("testdata/new_function"); err != nil {
-		t.Fatalf("Error on cd to testdata dir: %v", err)
-	}
+	// Download templates
+	templatePullLocalTemplateRepo(t)
+	defer tearDownFetchTemplates(t)
+	defer tearDownNewFunction(t)
 
 	cmdParameters := []string{
 		"new",
@@ -161,18 +155,13 @@ func Test_newFunctionListCmds(t *testing.T) {
 	if !strings.HasPrefix(stdOut, ListOptionOutput) {
 		t.Fatalf("Output is not as expected: %s\n", stdOut)
 	}
-
-	if err := os.Chdir(homeDir); err != nil {
-		t.Fatalf("Error on cd back to commands/ directory: %v", err)
-	}
 }
 
 func Test_languageNotExists(t *testing.T) {
-
-	homeDir, _ := filepath.Abs(".")
-	if err := os.Chdir("testdata/new_function"); err != nil {
-		t.Fatalf("Error on cd to testdata dir: %v", err)
-	}
+	// Download templates
+	templatePullLocalTemplateRepo(t)
+	defer tearDownFetchTemplates(t)
+	defer tearDownNewFunction(t)
 
 	// Attempt to create a function with a non-existing language
 	cmdParameters := []string{
@@ -190,8 +179,14 @@ func Test_languageNotExists(t *testing.T) {
 	if found, err := regexp.MatchString(LangNotExistsOutput, stdOut); err != nil || !found {
 		t.Fatalf("Output is not as expected: %s\n", stdOut)
 	}
+}
 
-	if err := os.Chdir(homeDir); err != nil {
-		t.Fatalf("Error on cd back to commands/ directory: %v", err)
+func tearDownNewFunction(t *testing.T) {
+	// Remove existing archive file if it exists
+	if _, err := os.Stat(".gitignore"); err == nil {
+		err := os.Remove(".gitignore")
+		if err != nil {
+			t.Log(err)
+		}
 	}
 }
diff --git a/commands/template_pull_test.go b/commands/template_pull_test.go
index e828e7d5a..4baed3962 100644
--- a/commands/template_pull_test.go
+++ b/commands/template_pull_test.go
@@ -124,3 +124,12 @@ func Test_repositoryUrlRemoteRegExp(t *testing.T) {
 		})
 	}
 }
+
+// templatePullLocalTemplateRepo executes `template pull` on a local repository to get templates
+func templatePullLocalTemplateRepo(t *testing.T) {
+	localTemplateRepository := setupLocalTemplateRepo(t)
+	defer os.RemoveAll(localTemplateRepository)
+
+	faasCmd.SetArgs([]string{"template", "pull", localTemplateRepository})
+	faasCmd.Execute()
+}
diff --git a/commands/testdata/master_test.zip b/commands/testdata/master_test.zip
deleted file mode 100755
index 42b74f209..000000000
Binary files a/commands/testdata/master_test.zip and /dev/null differ
diff --git a/commands/testdata/new_function/.gitignore b/commands/testdata/new_function/.gitignore
deleted file mode 100644
index 942d901bd..000000000
--- a/commands/testdata/new_function/.gitignore
+++ /dev/null
@@ -1,2 +0,0 @@
-template
-build
diff --git a/commands/testdata/new_function/template/csharp/function/.gitignore b/commands/testdata/new_function/template/csharp/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/csharp/template.yml b/commands/testdata/new_function/template/csharp/template.yml
deleted file mode 100644
index 45caa67ed..000000000
--- a/commands/testdata/new_function/template/csharp/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: csharp
-fprocess: dotnet ./root.dll
diff --git a/commands/testdata/new_function/template/go-armhf/template.yml b/commands/testdata/new_function/template/go-armhf/template.yml
deleted file mode 100644
index 234cf4400..000000000
--- a/commands/testdata/new_function/template/go-armhf/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: go-armhf
-fprocess: ./handler
diff --git a/commands/testdata/new_function/template/go/function/.gitignore b/commands/testdata/new_function/template/go/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/go/template.yml b/commands/testdata/new_function/template/go/template.yml
deleted file mode 100644
index 5d341d5d3..000000000
--- a/commands/testdata/new_function/template/go/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: go
-fprocess: ./handler
diff --git a/commands/testdata/new_function/template/node-arm64/function/.gitignore b/commands/testdata/new_function/template/node-arm64/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/node-arm64/template.yml b/commands/testdata/new_function/template/node-arm64/template.yml
deleted file mode 100644
index 97e25c5f9..000000000
--- a/commands/testdata/new_function/template/node-arm64/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: node-arm64
-fprocess: node index.js
diff --git a/commands/testdata/new_function/template/node-armhf/template.yml b/commands/testdata/new_function/template/node-armhf/template.yml
deleted file mode 100644
index c2313ae67..000000000
--- a/commands/testdata/new_function/template/node-armhf/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: node-armhf
-fprocess: node index.js
diff --git a/commands/testdata/new_function/template/node/function/.gitignore b/commands/testdata/new_function/template/node/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/node/template.yml b/commands/testdata/new_function/template/node/template.yml
deleted file mode 100644
index 1117efa75..000000000
--- a/commands/testdata/new_function/template/node/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: node
-fprocess: node index.js
diff --git a/commands/testdata/new_function/template/python-armhf/template.yml b/commands/testdata/new_function/template/python-armhf/template.yml
deleted file mode 100644
index ff8986785..000000000
--- a/commands/testdata/new_function/template/python-armhf/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: python-armhf
-fprocess: python index.py
diff --git a/commands/testdata/new_function/template/python/function/.gitignore b/commands/testdata/new_function/template/python/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/python/template.yml b/commands/testdata/new_function/template/python/template.yml
deleted file mode 100644
index 5487218c4..000000000
--- a/commands/testdata/new_function/template/python/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: python
-fprocess: python index.py
diff --git a/commands/testdata/new_function/template/python3/function/.gitignore b/commands/testdata/new_function/template/python3/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/python3/template.yml b/commands/testdata/new_function/template/python3/template.yml
deleted file mode 100644
index ea405e8b6..000000000
--- a/commands/testdata/new_function/template/python3/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: python3
-fprocess: python3 index.py
diff --git a/commands/testdata/new_function/template/ruby/function/.gitignore b/commands/testdata/new_function/template/ruby/function/.gitignore
deleted file mode 100644
index e69de29bb..000000000
diff --git a/commands/testdata/new_function/template/ruby/template.yml b/commands/testdata/new_function/template/ruby/template.yml
deleted file mode 100644
index 417bd6133..000000000
--- a/commands/testdata/new_function/template/ruby/template.yml
+++ /dev/null
@@ -1,2 +0,0 @@
-language: ruby
-fprocess: ruby index.rb
diff --git a/commands/testdata/templates b/commands/testdata/templates
new file mode 160000
index 000000000..9c4570f2e
--- /dev/null
+++ b/commands/testdata/templates
@@ -0,0 +1 @@
+Subproject commit 9c4570f2e052ac86dfb5d70cc285cabc80d34775
diff --git a/guide/TEMPLATE.md b/guide/TEMPLATE.md
index e391489f6..92b83f165 100644
--- a/guide/TEMPLATE.md
+++ b/guide/TEMPLATE.md
@@ -12,6 +12,9 @@ template
 ├── csharp
 │   ├── Dockerfile
 │   └── template.yml
+├── dockerfile
+│   ├── Dockerfile
+│   └── template.yml
 ├── node
 │   ├── Dockerfile
 │   └── template.yml
diff --git a/stack/language_template.go b/stack/language_template.go
index e8c035d2c..a4d58aa56 100644
--- a/stack/language_template.go
+++ b/stack/language_template.go
@@ -50,13 +50,17 @@ func ParseYAMLDataForLanguageTemplate(fileData []byte) (*LanguageTemplate, error
 
 func IsValidTemplate(lang string) bool {
 	var found bool
+
+	// TODO harmonise to lowercase when fetching template & parsing yaml
+	// Ensure that `lang` is lowercase in case of Dockerfile
 	if strings.ToLower(lang) == "dockerfile" {
-		found = true
-	} else if _, err := os.Stat("./template/" + lang); err == nil {
+		lang = strings.ToLower(lang)
+	}
+
+	if _, err := os.Stat("./template/" + lang); err == nil {
 		templateYAMLPath := "./template/" + lang + "/template.yml"
 
-		_, err := ParseYAMLForLanguageTemplate(templateYAMLPath)
-		if err == nil {
+		if _, err := ParseYAMLForLanguageTemplate(templateYAMLPath); err == nil {
 			found = true
 		}
 	}
diff --git a/stack/language_template_test.go b/stack/language_template_test.go
index 13f21b341..07f6a6d97 100644
--- a/stack/language_template_test.go
+++ b/stack/language_template_test.go
@@ -59,10 +59,6 @@ fprocess: python index.py
 }
 
 func Test_IsValidTemplate(t *testing.T) {
-	if !IsValidTemplate("Dockerfile") || !IsValidTemplate("dockerfile") {
-		t.Fatalf("Dockerfile and dockerfile must be valid")
-	}
-
 	if IsValidTemplate("unknown-language") {
 		t.Fatalf("unknown-language must be invalid")
 	}
diff --git a/versioncontrol/core.go b/versioncontrol/core.go
index 198e3aeff..216de1666 100644
--- a/versioncontrol/core.go
+++ b/versioncontrol/core.go
@@ -25,10 +25,9 @@ type vcsCmd struct {
 
 // Invoke executes the vcsCmd replacing varibables in the cmds with the keyval
 // variables passed.
-func (v *vcsCmd) Invoke(args map[string]string) error {
-
+func (v *vcsCmd) Invoke(dir string, args map[string]string) error {
 	for _, cmd := range v.cmds {
-		if _, err := v.run(".", cmd, args, true); err != nil {
+		if _, err := v.run(dir, cmd, args, true); err != nil {
 			return err
 		}
 	}
diff --git a/versioncontrol/git.go b/versioncontrol/git.go
index b18839309..2873058c2 100644
--- a/versioncontrol/git.go
+++ b/versioncontrol/git.go
@@ -7,3 +7,17 @@ var GitClone = &vcsCmd{
 	cmds:   []string{"clone {repo} {dir} --depth=1"},
 	scheme: []string{"git", "https", "http", "git+ssh", "ssh"},
 }
+
+// GitInitRepo initializes the working directory add commit all files & directories
+var GitInitRepo = &vcsCmd{
+	name: "Git",
+	cmd:  "git",
+	cmds: []string{
+		"init {dir}",
+		"config user.email \"contact@openfaas.com\"",
+		"config user.name \"OpenFaaS\"",
+		"add {dir}",
+		"commit -m \"Test-commit\"",
+	},
+	scheme: []string{"git", "https", "http", "git+ssh", "ssh"},
+}