diff --git a/.github/workflows/cli.yml b/.github/workflows/cli.yml
index 612375ca1c..0dd8036e84 100644
--- a/.github/workflows/cli.yml
+++ b/.github/workflows/cli.yml
@@ -65,3 +65,9 @@ jobs:
         working-directory: ${{ runner.temp }}/test-app
         env:
           BACKSTAGE_E2E_CLI_TEST: true
+      - name: e2e test newly created app
+        run: yarn test:e2e:ci
+        working-directory: ${{ runner.temp }}/test-app/packages/app
+        env:
+          PORT: 3001
+          BACKSTAGE_E2E_CLI_TEST: true
diff --git a/packages/cli/templates/default-app/package.json.hbs b/packages/cli/templates/default-app/package.json.hbs
index 231194a54e..8b725c69c1 100644
--- a/packages/cli/templates/default-app/package.json.hbs
+++ b/packages/cli/templates/default-app/package.json.hbs
@@ -26,5 +26,8 @@
     "@backstage/cli": "^{{version}}",
     "lerna": "^3.20.2",
     "prettier": "^1.19.1"
+  },
+  "resolutions": {
+    "**/cypress": "4.2.0"
   }
 }
diff --git a/packages/cli/templates/default-app/packages/app/cypress.json b/packages/cli/templates/default-app/packages/app/cypress.json
new file mode 100644
index 0000000000..5de7ebffea
--- /dev/null
+++ b/packages/cli/templates/default-app/packages/app/cypress.json
@@ -0,0 +1,5 @@
+{
+  "baseUrl": "http://localhost:3001",
+  "fixturesFolder": false,
+  "pluginsFile": false
+}
diff --git a/packages/cli/templates/default-app/packages/app/cypress/.eslintrc.json b/packages/cli/templates/default-app/packages/app/cypress/.eslintrc.json
new file mode 100644
index 0000000000..2b3a458b95
--- /dev/null
+++ b/packages/cli/templates/default-app/packages/app/cypress/.eslintrc.json
@@ -0,0 +1,21 @@
+{
+  "plugins": ["cypress"],
+  "extends": ["plugin:cypress/recommended"],
+  "rules": {
+    "jest/expect-expect": [
+      "error",
+      {
+        "assertFunctionNames": ["expect", "cy.contains"]
+      }
+    ],
+    "import/no-extraneous-dependencies": [
+      "error",
+      {
+        "devDependencies": true,
+        "optionalDependencies": true,
+        "peerDependencies": true,
+        "bundledDependencies": true
+      }
+    ]
+  }
+}
diff --git a/packages/cli/templates/default-app/packages/app/cypress/integration/app.js b/packages/cli/templates/default-app/packages/app/cypress/integration/app.js
new file mode 100644
index 0000000000..6c561a734c
--- /dev/null
+++ b/packages/cli/templates/default-app/packages/app/cypress/integration/app.js
@@ -0,0 +1,8 @@
+describe('App', () => {
+  it('should render the welcome page', () => {
+    cy.visit('/');
+    cy.contains('Welcome to Backstage');
+    cy.contains('Getting Started');
+    cy.contains('Quick Links');
+  });
+});
diff --git a/packages/cli/templates/default-app/packages/app/package.json.hbs b/packages/cli/templates/default-app/packages/app/package.json.hbs
index 940091380a..2e607d6086 100644
--- a/packages/cli/templates/default-app/packages/app/package.json.hbs
+++ b/packages/cli/templates/default-app/packages/app/package.json.hbs
@@ -9,23 +9,33 @@
     "@backstage/cli": "^{{version}}",
     "@backstage/core": "^{{version}}",
     "@backstage/theme": "^{{version}}",
-    "@testing-library/jest-dom": "^4.2.4",
-    "@testing-library/react": "^9.3.2",
-    "@testing-library/user-event": "^7.1.2",
-    "@types/jest": "^24.0.0",
-    "@types/node": "^12.0.0",
-    "@types/react-router-dom": "^5.1.3",
     "plugin-welcome": "0.0.0",
     "react": "^16.12.0",
     "react-dom": "^16.12.0",
     "react-router-dom": "^5.1.2",
     "react-use": "^13.24.0"
   },
+  "devDependencies": {
+    "@testing-library/jest-dom": "^4.2.4",
+    "@testing-library/react": "^9.3.2",
+    "@testing-library/user-event": "^7.1.2",
+    "@types/jest": "^24.0.0",
+    "@types/node": "^12.0.0",
+    "@types/react-router-dom": "^5.1.3",
+    "cross-env": "^7.0.0",
+    "cypress": "^4.2.0",
+    "eslint-plugin-cypress": "^2.10.3",
+    "start-server-and-test": "^1.10.11"
+  },
   "scripts": {
     "start": "backstage-cli app:serve",
     "bundle": "backstage-cli app:build",
     "test": "backstage-cli test",
-    "lint": "backstage-cli lint"
+    "lint": "backstage-cli lint",
+    "test:e2e": "cross-env PORT=3001 start-server-and-test start http://localhost:3001 cy:dev",
+    "test:e2e:ci": "cross-env PORT=3001 start-server-and-test start http://localhost:3001 cy:run",
+    "cy:dev": "cypress open",
+    "cy:run": "cypress run"
   },
   "browserslist": {
     "production": [