diff --git a/changelog/custom-dub-init-type.dd b/changelog/custom-dub-init-type.dd
new file mode 100644
index 0000000..62f0418
--- /dev/null
+++ b/changelog/custom-dub-init-type.dd
@@ -0,0 +1,10 @@
+Support of custom dub init type
+
+Command dub init now supports custom dub packages for argument `-t`.
+$(CONSOLE
+> dub init -n myPackage --format sdl -t custom-dub-init-dubpackage -- --foo=bar
+)
+
+Dub init will be invoked like before. The package `custom-dub-init-dubpackage`
+contains a sub package `init` which will be invoked afterwards to create a custom
+package skeleton. Additional arguments could be passed e.g. `-- --foo=bar`.
diff --git a/source/dub/commandline.d b/source/dub/commandline.d
index c210f4e..8039645 100644
--- a/source/dub/commandline.d
+++ b/source/dub/commandline.d
@@ -489,6 +489,7 @@
 		this.helpText = [
 			"Initializes an empty package of the specified type in the given directory. By default, the current working directory is used."
 		];
+		this.acceptsAppArgs = true;
 	}
 
 	override void prepare(scope CommandArgs args)
@@ -499,6 +500,7 @@
 			"minimal - simple \"hello world\" project (default)",
 			"vibe.d  - minimal HTTP server based on vibe.d",
 			"deimos  - skeleton for C header bindings",
+			"custom  - custom project provided by dub package",
 		]);
 		args.getopt("f|format", &m_format, [
 			"Sets the format to use for the package description file. Possible values:",
@@ -510,7 +512,6 @@
 	override int execute(Dub dub, string[] free_args, string[] app_args)
 	{
 		string dir;
-		enforceUsage(app_args.empty, "Unexpected application arguments.");
 		if (free_args.length)
 		{
 			dir = free_args[0];
@@ -565,18 +566,11 @@
 			}
 		}
 
-		//TODO: Remove this block in next version
-		// Checks if argument uses current method of specifying project type.
-		if (free_args.length)
+		if (!["vibe.d", "deimos", "minimal"].canFind(m_templateType))
 		{
-			if (["vibe.d", "deimos", "minimal"].canFind(free_args[0]))
-			{
-				m_templateType = free_args[0];
-				free_args = free_args[1 .. $];
-				logInfo("Deprecated use of init type. Use --type=[vibe.d | deimos | minimal] in future.");
-			}
+			free_args ~= m_templateType;
 		}
-		dub.createEmptyPackage(NativePath(dir), free_args, m_templateType, m_format, &depCallback);
+		dub.createEmptyPackage(NativePath(dir), free_args, m_templateType, m_format, &depCallback, app_args);
 
 		logInfo("Package successfully created in %s", dir.length ? dir : ".");
 		return 0;
diff --git a/source/dub/dub.d b/source/dub/dub.d
index dff7a97..0f81545 100644
--- a/source/dub/dub.d
+++ b/source/dub/dub.d
@@ -1168,7 +1168,8 @@
 	*/
 	void createEmptyPackage(NativePath path, string[] deps, string type,
 		PackageFormat format = PackageFormat.sdl,
-		scope void delegate(ref PackageRecipe, ref PackageFormat) recipe_callback = null)
+		scope void delegate(ref PackageRecipe, ref PackageFormat) recipe_callback = null,
+		string[] app_args = [])
 	{
 		if (!path.absolute) path = m_rootPath ~ path;
 		path.normalize();
@@ -1196,10 +1197,40 @@
 
 		initPackage(path, depVers, type, format, recipe_callback);
 
+		if (!["vibe.d", "deimos", "minimal"].canFind(type)) {
+			runCustomInitialization(path, type, app_args);
+		}
+
 		//Act smug to the user.
 		logInfo("Successfully created an empty project in '%s'.", path.toNativeString());
 	}
 
+	private void runCustomInitialization(NativePath path, string type, string[] runArgs)
+	{
+		string packageName = type;
+		auto template_pack = m_packageManager.getBestPackage(packageName, ">=0.0.0");
+		if (!template_pack) template_pack = m_packageManager.getBestPackage(packageName, "~master");
+		if (!template_pack) {
+			logInfo("%s is not present, getting and storing it user wide", packageName);
+			template_pack = fetch(packageName, Dependency(">=0.0.0"), defaultPlacementLocation, FetchOptions.none);
+		}
+
+		Package initSubPackage = m_packageManager.getSubPackage(template_pack, "init", false);
+		auto template_dub = new Dub(null, m_packageSuppliers);
+		template_dub.loadPackage(initSubPackage);
+		auto compiler_binary = this.defaultCompiler;
+
+		GeneratorSettings settings;
+		settings.config = "application";
+		settings.compiler = getCompiler(compiler_binary);
+		settings.platform = settings.compiler.determinePlatform(settings.buildSettings, compiler_binary, m_defaultArchitecture);
+		settings.buildType = "debug";
+		settings.run = true;
+		settings.runArgs = runArgs;
+		initSubPackage.recipe.buildSettings.workingDirectory = path.toNativeString();
+		template_dub.generateProject("build", settings);
+	}
+
 	/** Converts the package recipe of the loaded root package to the given format.
 
 		Params:
diff --git a/source/dub/init.d b/source/dub/init.d
index c5e4598..98c98c4 100644
--- a/source/dub/init.d
+++ b/source/dub/init.d
@@ -82,7 +82,7 @@
 	}
 
 	switch (type) {
-		default: throw new Exception("Unknown package init type: "~type);
+		default: break;
 		case "minimal": initMinimalPackage(root_path, p, &processRecipe); break;
 		case "vibe.d": initVibeDPackage(root_path, p, &processRecipe); break;
 		case "deimos": initDeimosPackage(root_path, p, &processRecipe); break;
diff --git a/test/issue1651-custom-dub-init-type.sh b/test/issue1651-custom-dub-init-type.sh
new file mode 100755
index 0000000..5c48313
--- /dev/null
+++ b/test/issue1651-custom-dub-init-type.sh
@@ -0,0 +1,25 @@
+#!/usr/bin/env bash
+. $(dirname "${BASH_SOURCE[0]}")/common.sh
+DIR=$(dirname "${BASH_SOURCE[0]}")
+packname="custom-dub-init-type-sample"
+
+$DUB remove custom-dub-init-dubpackage --non-interactive --version=* 2>/dev/null || true
+$DUB init -n $packname --format sdl -t custom-dub-init-dubpackage --skip-registry=all --registry=file://"$DIR"/issue1651-custom-dub-init-type -- --foo=bar
+
+function cleanup {
+    rm -rf $packname
+}
+
+if [ ! -e $packname/dub.sdl ]; then # it failed
+    cleanup
+    die $LINENO 'No dub.sdl file has been generated.'
+fi
+
+cd $packname
+if ! { ${DUB} 2>&1 || true; } | grep -cF 'foo=bar'; then
+	cd ..
+	cleanup
+	die $LINENO 'Custom init type.'
+fi
+cd ..
+cleanup
\ No newline at end of file
diff --git a/test/issue1651-custom-dub-init-type/.no_build b/test/issue1651-custom-dub-init-type/.no_build
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1651-custom-dub-init-type/.no_build
diff --git a/test/issue1651-custom-dub-init-type/.no_run b/test/issue1651-custom-dub-init-type/.no_run
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1651-custom-dub-init-type/.no_run
diff --git a/test/issue1651-custom-dub-init-type/.no_test b/test/issue1651-custom-dub-init-type/.no_test
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1651-custom-dub-init-type/.no_test
diff --git a/test/issue1651-custom-dub-init-type/custom-dub-init-dubpackage-1.0.1.zip b/test/issue1651-custom-dub-init-type/custom-dub-init-dubpackage-1.0.1.zip
new file mode 100644
index 0000000..45b8b38
--- /dev/null
+++ b/test/issue1651-custom-dub-init-type/custom-dub-init-dubpackage-1.0.1.zip
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