diff --git a/README.md b/README.md
index e7b4485b..4337b55f 100644
--- a/README.md
+++ b/README.md
@@ -256,6 +256,7 @@ These commands are centered around a user making changes to a project (manually
 - `cfbs analyse`: Same as `cfbs analyze`.
 - `cfbs analyze`: Analyze the policy set specified by the given path.
 - `cfbs clean`: Remove modules which were added as dependencies, but are no longer needed.
+- `cfbs convert`: Initialize a new CFEngine Build project based on an existing policy set.
 - `cfbs help`: Print the help menu.
 - `cfbs info`: Print information about a module.
 - `cfbs init`: Initialize a new CFEngine Build project.
diff --git a/cfbs/analyze.py b/cfbs/analyze.py
index 1e18bbac..1784d3b9 100644
--- a/cfbs/analyze.py
+++ b/cfbs/analyze.py
@@ -355,6 +355,7 @@ class AnalyzedFiles:
     def __init__(self, reference_version: Union[str, None]):
         self.reference_version = reference_version
 
+        self.unmodified = []
         self.missing = []
         self.modified = []
         self.moved_or_renamed = []
@@ -373,6 +374,10 @@ def _denormalize_origin(origin, is_parentpath, masterfiles_dir):
     def denormalize(self, is_parentpath, masterfiles_dir):
         """Currently irreversible and meant to only be used once after all the files are analyzed."""
 
+        self.unmodified = [
+            mpf_denormalized_path(file, is_parentpath, masterfiles_dir)
+            for file in self.unmodified
+        ]
         self.missing = [
             mpf_denormalized_path(file, is_parentpath, masterfiles_dir)
             for file in self.missing
@@ -420,6 +425,7 @@ def denormalize(self, is_parentpath, masterfiles_dir):
         ]
 
     def sort(self):
+        self.unmodified = filepaths_sorted(self.unmodified)
         self.missing = filepaths_sorted(self.missing)
         self.modified = filepaths_sorted(self.modified)
         self.moved_or_renamed = filepaths_sorted(self.moved_or_renamed)
@@ -430,9 +436,14 @@ def sort(self):
         )
         self.not_from_any = filepaths_sorted(self.not_from_any)
 
-    def display(self):
+    def display(self, display_unmodified=False):
         print("Reference version:", self.reference_version, "\n")
 
+        if display_unmodified:
+            if len(self.unmodified) > 0:
+                print("Files unmodified from the version:")
+            filepaths_display(self.unmodified)
+
         if len(self.missing) > 0:
             print("Files missing from the version:")
         elif self.reference_version is not None:
@@ -479,6 +490,7 @@ def to_json_dict(self):
 
         json_dict["files"] = {}
 
+        json_dict["files"]["unmodified"] = self.unmodified
         json_dict["files"]["missing"] = self.missing
         json_dict["files"]["modified"] = self.modified
         json_dict["files"]["moved_or_renamed"] = self.moved_or_renamed
@@ -682,6 +694,9 @@ def analyze_policyset(
                         other_versions = mpf_checksums_dict[checksum][filepath]
                         # since MPF data is sorted, so is `other_versions`
                         analyzed_files.different.append((filepath, other_versions))
+                    else:
+                        # 1A1B. the file is unmodified and present in the reference version
+                        analyzed_files.unmodified.append(filepath)
                 else:
                     # 1A2. checksum is known but there's no matching filepath with that checksum:
                     # therefore, it must be a rename/move
diff --git a/cfbs/args.py b/cfbs/args.py
index c25453cf..a90e3520 100644
--- a/cfbs/args.py
+++ b/cfbs/args.py
@@ -196,7 +196,7 @@ def get_arg_parser(whitespace_for_manual=False):
     )
     parser.add_argument(
         "--offline",
-        help="Do not connect to the Internet to download the latest version of MPF release information during 'cfbs analyze'",
+        help="Do not connect to the Internet to download the latest version of MPF release information during 'cfbs analyze' and 'cfbs convert'",
         action="store_true",
     )
     parser.add_argument(
diff --git a/cfbs/cfbs.1 b/cfbs/cfbs.1
index 700b79e5..5001d286 100644
--- a/cfbs/cfbs.1
+++ b/cfbs/cfbs.1
@@ -9,7 +9,8 @@ CFEngine Build System.
 
 .TP
 \fBcmd\fR
-The command to perform (pretty, init, status, search, add, remove, clean, update, validate, download, build, install, help, info, show, analyse, analyze, input, set\-input, get\-input, generate\-release\-information)
+The command to perform (pretty, init, status, search, add, remove, clean, update, validate, download, build, install, help, info, show,
+analyse, analyze, convert, input, set\-input, get\-input, generate\-release\-information)
 
 .TP
 \fBargs\fR
diff --git a/cfbs/commands.py b/cfbs/commands.py
index 923d73be..773fb66e 100644
--- a/cfbs/commands.py
+++ b/cfbs/commands.py
@@ -55,6 +55,7 @@ def search_command(terms: List[str]):
 from collections import OrderedDict
 from cfbs.analyze import analyze_policyset
 from cfbs.args import get_args
+from typing import Iterable
 
 from cfbs.cfbs_json import CFBSJson
 from cfbs.cfbs_types import CFBSCommandExitCode, CFBSCommandGitResult
@@ -92,6 +93,7 @@ def search_command(terms: List[str]):
 from cfbs.validate import (
     validate_config,
     validate_config_raise_exceptions,
+    validate_module_name_content,
     validate_single_module,
 )
 from cfbs.internal_file_management import (
@@ -1087,6 +1089,134 @@ def analyze_command(
     return 0
 
 
+@cfbs_command("convert")
+def convert_command(non_interactive=False, offline=False):
+    def cfbs_convert_cleanup():
+        os.unlink(cfbs_filename())
+        rm(".git", missing_ok=True)
+
+    def cfbs_convert_git_commit(
+        commit_message: str, add_scope: Union[str, Iterable[str]] = "all"
+    ):
+        try:
+            git_commit_maybe_prompt(commit_message, non_interactive, scope=add_scope)
+        except CFBSGitError:
+            cfbs_convert_cleanup()
+            raise
+
+    dir_content = [f.name for f in os.scandir(".")]
+
+    if not (len(dir_content) == 1 and dir_content[0].startswith("masterfiles-")):
+        raise CFBSUserError(
+            "cfbs convert must be run in a directory containing only one item, a subdirectory named masterfiles-<some-name>"
+        )
+
+    dir_name = dir_content[0]
+    path_string = "./" + dir_name + "/"
+
+    # validate the local module
+    validate_module_name_content(path_string)
+
+    promises_cf_path = os.path.join(dir_name, "promises.cf")
+    if not os.path.isfile(promises_cf_path):
+        raise CFBSUserError(
+            "The file '"
+            + promises_cf_path
+            + "' does not exist - make sure '"
+            + path_string
+            + "' is a policy set based on masterfiles."
+        )
+
+    print(
+        "Found policy set in '%s' with 'promises.cf' in the expected location."
+        % path_string
+    )
+
+    print("Analyzing '" + path_string + "'...")
+    analyzed_files, _ = analyze_policyset(
+        path=dir_name,
+        is_parentpath=False,
+        reference_version=None,
+        masterfiles_dir=dir_name,
+        ignored_path_components=None,
+        offline=offline,
+    )
+
+    current_index = CFBSConfig.get_instance().index
+    default_version = current_index.get_module_object("masterfiles")["version"]
+
+    reference_version = analyzed_files.reference_version
+    if reference_version is None:
+        print(
+            "Did not detect any version of masterfiles, proceeding using the default version (%s)."
+            % default_version
+        )
+        masterfiles_version = default_version
+    else:
+        print("Detected version %s of masterfiles." % reference_version)
+        masterfiles_version = reference_version
+
+    if not prompt_user_yesno(
+        non_interactive,
+        "Do you want to continue making a new CFEngine Build project based on masterfiles %s?"
+        % masterfiles_version,
+    ):
+        raise CFBSExitError("User did not proceed, exiting.")
+
+    print("Initializing a new CFBS project...")
+    # since there should be no other files than the masterfiles-name directory, there shouldn't be a .git directory
+    assert not is_git_repo()
+    r = init_command(masterfiles="no", non_interactive=non_interactive, use_git=True)
+    # the cfbs-init should've created a Git repository
+    assert is_git_repo()
+    if r != 0:
+        print("Initializing a new CFBS project failed, aborting conversion.")
+        cfbs_convert_cleanup()
+        return r
+
+    print("Adding masterfiles %s to the project..." % masterfiles_version)
+    masterfiles_to_add = ["masterfiles@%s" % masterfiles_version]
+    r = add_command(masterfiles_to_add, added_by="cfbs convert")
+    if r != 0:
+        print("Adding the masterfiles module failed, aborting conversion.")
+        cfbs_convert_cleanup()
+        return r
+
+    print("Adding the policy files...")
+    local_module_to_add = [path_string]
+    r = add_command(
+        local_module_to_add,
+        added_by="cfbs convert",
+        explicit_build_steps=["copy ./ ./"],
+    )
+    if r != 0:
+        print("Adding the policy files module failed, aborting conversion.")
+        cfbs_convert_cleanup()
+        return r
+
+    # here, matching files are files that have identical (filepath, checksum)
+    if len(analyzed_files.unmodified) != 0:
+        print(
+            "Deleting matching files between masterfiles %s and '%s'..."
+            % (masterfiles_version, path_string)
+        )
+        for unmodified_mpf_file in analyzed_files.unmodified:
+            rm(os.path.join(dir_name, unmodified_mpf_file))
+
+        print("Creating Git commit...")
+        cfbs_convert_git_commit("Deleted unmodified policy files")
+
+    print(
+        "Your project is now functional, can be built, and will produce a version of masterfiles %s with your modifications."
+        % masterfiles_version
+    )
+    print(
+        "The next conversion step is to handle modified files and files from other versions of masterfiles."
+    )
+    print("This is not implemented yet.")
+    return 0
+
+
 @cfbs_command("input")
 @commit_after_command("Added input for module%s", [PLURAL_S])
 def input_command(args, input_from="cfbs input"):
diff --git a/cfbs/main.py b/cfbs/main.py
index ebcef324..92c225b7 100644
--- a/cfbs/main.py
+++ b/cfbs/main.py
@@ -132,7 +132,7 @@ def _main() -> int:
             % args.command
         )
 
-    if args.offline and args.command not in ("analyze", "analyse"):
+    if args.offline and args.command not in ("analyze", "analyse", "convert"):
         raise CFBSUserError(
             "The option --offline is only for 'cfbs analyze', not 'cfbs %s'"
             % args.command
@@ -184,6 +184,8 @@ def _main() -> int:
             args.offline,
             does_log_info(args.loglevel),
         )
+    if args.command == "convert":
+        return commands.convert_command(args.non_interactive, args.offline)
 
     if args.command == "generate-release-information":
         return commands.generate_release_information_command(
diff --git a/cfbs/module.py b/cfbs/module.py
index af78958b..8cd27bb8 100644
--- a/cfbs/module.py
+++ b/cfbs/module.py
@@ -4,7 +4,7 @@
 
 
 def is_module_added_manually(added_by: str):
-    return added_by in ("cfbs add", "cfbs init")
+    return added_by in ("cfbs add", "cfbs init", "cfbs convert")
 
 
 def is_module_local(name: str):