diff --git a/docs/img/javaTemplate.png b/docs/img/javaTemplate.png
new file mode 100644
index 0000000..4de0796
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diff --git a/docs/img/templateSettings.png b/docs/img/templateSettings.png
new file mode 100644
index 0000000..df69e9b
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diff --git a/docs/user-guide.md b/docs/user-guide.md
index caf9350..8ec6264 100644
--- a/docs/user-guide.md
+++ b/docs/user-guide.md
@@ -105,6 +105,14 @@ Several options are available to customize the extension. Open VS Code settings
     down during codeforces submission.
 -   [Python] Command used to run python files. For eg. py, python3, pypy3, etc.
 
+## Default Language Templates
+- The path of the template that will be loaded when a new file of the default language is created by Competitive Companion
+- For Java Users, the template shall be in the format where class name is `CLASS_NAME` as the file name so that CLASS_NAME in the code gets auto replaced.
+\
+![Templates](img/templateSettings.png)
+![Templates](img/javaTemplate.png)
+
+
 ## Getting help
 
 If you have trouble using the extension, find any bugs, or want to request a new
diff --git a/package.json b/package.json
index f1b6687..8ec1dd4 100644
--- a/package.json
+++ b/package.json
@@ -349,7 +349,7 @@
                 "cph.general.defaultLanguageTemplateFileLocation": {
                     "type": "string",
                     "default": "",
-                    "description": "The path of the template that will be loaded when a new file of the default language is created by Competitive Companion"
+                    "description": "The path to the template file that will be used when creating a new file for the default language via Competitive Companion. For Java templates, use 'CLASS_NAME' as a placeholder for the class name like 'class CLASS_NAME{...}'"
                 },
                 "cph.general.autoShowJudge": {
                     "type": "boolean",
diff --git a/src/companion.ts b/src/companion.ts
index 276f38b..08d79a9 100644
--- a/src/companion.ts
+++ b/src/companion.ts
@@ -241,8 +241,16 @@ const handleNewProblem = async (problem: Problem) => {
                     `Template file does not exist: ${templateLocation}`,
                 );
             } else {
-                const templateContents =
+                let templateContents =
                     readFileSync(templateLocation).toString();
+
+                if (extn == 'java') {
+                    const className = path.basename(problemFileName, '.java');
+                    templateContents = templateContents.replace(
+                        'CLASS_NAME',
+                        className,
+                    );
+                }
                 writeFileSync(srcPath, templateContents);
             }
         }