diff --git a/bin/jaws b/bin/jaws
index e29b693e7..2913aedc8 100755
--- a/bin/jaws
+++ b/bin/jaws
@@ -28,7 +28,7 @@ program
 program
     .command('new <type>')
     .allowUnknownOption()
-    .description('Make a new "project", "stage", "region", "lambda" or "endpoint"')
+    .description('Make a new "project", "stage", "region", or "action" [ --lambda | --endpoint | --both ] ')
     .action(function() {
 
       // Parse Args
@@ -86,7 +86,7 @@ program
       } else {
 
         // Unknown Type
-        console.error('Unsupported type ' + type + '. Must be project|region|stage');
+        console.error('Unsupported type ' + type + '. Must be project|region|stage|action');
         process.exit(1);
 
       }
diff --git a/lib/commands/new_action.js b/lib/commands/new_action.js
index 9e5c9da66..ee2285d42 100644
--- a/lib/commands/new_action.js
+++ b/lib/commands/new_action.js
@@ -96,6 +96,11 @@ CMD.prototype._createSkeleton = Promise.method(function() {
   // Fetch skeleton resources
   var templatesPath = path.join(__dirname, '..', 'templates');
   var actionJson = JSON.parse(fs.readFileSync(path.join(templatesPath, 'jaws.json')));
+
+  if (!fs.existsSync(path.join('./jaws.json'))) {
+      throw new JawsError('Must be in a JAWS project folder.');
+  }
+
   var actionPath = path.join(
       _this._JAWS._meta.projectRootPath,
       'back',
@@ -170,4 +175,4 @@ CMD.prototype._createSkeleton = Promise.method(function() {
   // Write Files
   writeFilesDeferred.push(utils.writeFile(path.join(actionPath, 'jaws.json'), JSON.stringify(actionJson, null, 2)));
   return Promise.all(writeFilesDeferred);
-});
\ No newline at end of file
+});