diff --git a/docs/basic-usage.md b/docs/basic-usage.md
index 425742e9fc2..191be089ff9 100644
--- a/docs/basic-usage.md
+++ b/docs/basic-usage.md
@@ -116,6 +116,10 @@ Therefore, it is not possible to build a distribution or publish the project to
 Further, when running `poetry install`, Poetry does not try to install the project itself,
 but only its dependencies (same as `poetry install --no-root`).
 
+
+You can also create a new project or 'initialise' a pre-populated directory in **non-package mode**
+using the option `--package-mode false` when running `poetry new` or `poetry init` commands
+
 {{% note %}}
 In the [pyproject section]({{< relref "pyproject" >}}) you can see which fields are required in package mode.
 {{% /note %}}
diff --git a/src/poetry/console/commands/init.py b/src/poetry/console/commands/init.py
index d1b9438650e..cf501f6613e 100644
--- a/src/poetry/console/commands/init.py
+++ b/src/poetry/console/commands/init.py
@@ -57,6 +57,13 @@ class InitCommand(Command):
             multiple=True,
         ),
         option("license", "l", "License of the package.", flag=False),
+        option(
+            "package-mode",
+            None,
+            "Operating mode of the project.",
+            flag=False,
+            default="true",
+        ),
     ]
 
     help = """\
@@ -145,6 +152,8 @@ def _init_pyproject(
             )
             version = self.ask(question)
 
+        package_mode = self.option("package-mode", default="true").lower() != "false"
+
         description = self.option("description") or ""
         if not description and is_interactive:
             description = self.ask(self.create_question("Description []: ", default=""))
@@ -248,6 +257,7 @@ def _init_pyproject(
             python=python,
             dependencies=requirements,
             dev_dependencies=dev_requirements,
+            package_mode=package_mode,
         )
 
         create_layout = not project_path.exists()
diff --git a/src/poetry/console/commands/new.py b/src/poetry/console/commands/new.py
index bb0fefad961..39a31ff662b 100644
--- a/src/poetry/console/commands/new.py
+++ b/src/poetry/console/commands/new.py
@@ -47,6 +47,7 @@ class NewCommand(InitCommand):
                 "dependency",
                 "dev-dependency",
                 "license",
+                "package-mode",
             }
         ],
     ]
diff --git a/src/poetry/layouts/layout.py b/src/poetry/layouts/layout.py
index f5174ba3951..106c8281681 100644
--- a/src/poetry/layouts/layout.py
+++ b/src/poetry/layouts/layout.py
@@ -51,6 +51,7 @@ def __init__(
         python: str = "*",
         dependencies: Mapping[str, str | Mapping[str, Any]] | None = None,
         dev_dependencies: Mapping[str, str | Mapping[str, Any]] | None = None,
+        package_mode: bool = True,
     ) -> None:
         self._project = canonicalize_name(project)
         self._package_path_relative = Path(
@@ -64,6 +65,7 @@ def __init__(
 
         self._license = license
         self._python = python
+        self._package_mode = package_mode
         self._dependencies = dependencies or {}
         self._dev_dependencies = dev_dependencies or {}
 
@@ -134,6 +136,10 @@ def generate_poetry_content(self) -> TOMLDocument:
             poetry_content.remove("license")
 
         poetry_content["readme"] = f"README.{self._readme_format}"
+
+        if not self._package_mode:
+            poetry_content["package-mode"] = self._package_mode
+
         packages = self.get_package_include()
         if packages:
             poetry_content["packages"].append(packages)
diff --git a/tests/console/commands/test_init.py b/tests/console/commands/test_init.py
index edb5ad57e17..1acbb6ef788 100644
--- a/tests/console/commands/test_init.py
+++ b/tests/console/commands/test_init.py
@@ -629,6 +629,37 @@ def test_python_option(tester: CommandTester) -> None:
     assert expected in tester.io.fetch_output()
 
 
+def test_package_mode_option(tester: CommandTester) -> None:
+    inputs = [
+        "my-package",  # Package name
+        "1.2.3",  # Version
+        "This is a description",  # Description
+        "n",  # Author
+        "MIT",  # License
+        "^3.8",  # Python
+        "n",  # Interactive packages
+        "n",  # Interactive dev packages
+        "\n",  # Generate
+    ]
+    tester.execute("--package-mode false", inputs="\n".join(inputs))
+
+    expected = """\
+[tool.poetry]
+name = "my-package"
+version = "1.2.3"
+description = "This is a description"
+authors = ["Your Name <you@example.com>"]
+license = "MIT"
+readme = "README.md"
+package-mode = false
+
+[tool.poetry.dependencies]
+python = "^3.8"
+"""
+
+    assert expected in tester.io.fetch_output()
+
+
 def test_predefined_dependency(tester: CommandTester, repo: TestRepository) -> None:
     repo.add_package(get_package("pendulum", "2.0.0"))