diff --git a/cms/djangoapps/contentstore/views.py b/cms/djangoapps/contentstore/views.py
index b6aeebd602..53923e5c6b 100644
--- a/cms/djangoapps/contentstore/views.py
+++ b/cms/djangoapps/contentstore/views.py
@@ -45,6 +45,8 @@ from auth.authz import get_user_by_email, add_user_to_course_group, remove_user_
 from auth.authz import ADMIN_ROLE_NAME, EDITOR_ROLE_NAME
 from .utils import get_course_location_for_item
 
+from xmodule.templates import all_templates
+
 log = logging.getLogger(__name__)
 
 
@@ -126,9 +128,14 @@ def course_index(request, org, course, name):
     course = modulestore().get_item(location)
     sections = course.get_children()
 
+    # This knowledge of what the 'new template' should be seems like it needs to be kept deeper down in the
+    # code. We should probably refactor
+    template = modulestore().get_item(Location('i4x', 'edx', 'templates', 'vertical', 'Empty'))
+
     return render_to_response('overview.html', {
         'sections': sections,
-        'upload_asset_callback_url': upload_asset_callback_url
+        'upload_asset_callback_url': upload_asset_callback_url,
+        'create_new_unit_template': template.location
     })
 
 
@@ -144,8 +151,14 @@ def edit_subsection(request, location):
     if item.location.category != 'sequential':
         return HttpResponseBadRequest
 
+    # This knowledge of what the 'new template' should be seems like it needs to be kept deeper down in the
+    # code. We should probably refactor
+    template = modulestore().get_item(Location('i4x', 'edx', 'templates', 'vertical', 'Empty'))
+
     return render_to_response('edit_subsection.html', 
-                              {'subsection':item})
+                              {'subsection':item,
+                               'create_new_unit_template' : template.location
+                               })
 
 @login_required
 def edit_unit(request, location):
@@ -407,6 +420,20 @@ def delete_item(request):
     
     return HttpResponse()
 
+@login_required
+@expect_json
+def create_item(request):
+    # parent_location should be the location of the parent container
+    parent_location = request.POST['parent_id']
+
+    # which type of item to create
+    category = request.POST['category']
+
+    # check permissions for this user within this course
+    if not has_access(request.user, parent_location):
+        raise PermissionDenied()
+
+
 
 @login_required
 @expect_json
@@ -446,6 +473,10 @@ def save_item(request):
 def clone_item(request):
     parent_location = Location(request.POST['parent_location'])
     template = Location(request.POST['template'])
+    
+    display_name = None
+    if 'display_name' in request.POST:
+        display_name = request.POST['display_name']
 
     if not has_access(request.user, parent_location):
         raise PermissionDenied()
@@ -457,6 +488,10 @@ def clone_item(request):
 
     # TODO: This needs to be deleted when we have proper storage for static content
     new_item.metadata['data_dir'] = parent.metadata['data_dir']
+    
+    # replace the display name with an optional parameter passed in from the caller
+    if display_name is not None:
+        new_item.metadata['display_name'] = display_name
 
     modulestore().update_metadata(new_item.location.url(), new_item.own_metadata)
     modulestore().update_children(parent_location, parent.definition.get('children', []) + [new_item.location.url()])
diff --git a/cms/static/js/base.js b/cms/static/js/base.js
index 8d1af795b3..364cb61f3d 100644
--- a/cms/static/js/base.js
+++ b/cms/static/js/base.js
@@ -24,19 +24,39 @@ $(document).ready(function() {
     $('.assets .upload-button').bind('click', showUploadModal);
     $('.upload-modal .close-button').bind('click', hideModal);
     $('.unit .item-actions .delete-button').bind('click', deleteUnit);
+    $('.new-unit-item').bind('click', createNewUnit);
 });
 
+function createNewUnit(e) {
+    e.preventDefault();
+
+    parent = $(this).data('parent');
+    template = $(this).data('template');
+
+    $.post('/clone_item',
+	   {'parent_location' : parent,
+		   'template' : template,
+		   'display_name': 'New Unit',
+		   },
+	   function(data) {
+	       // redirect to the edit page
+	       window.location = "/edit/" + data['id'];
+	   });
+}
+
 function deleteUnit(e) {
     e.preventDefault();
-    var id = $(this).data('id');
-    var _this = $(this);
+
+    if(!confirm('Are you sure you wish to delete this item. It cannot be reversed!'))
+	return;
+
+    var _li_el = $(this).parents('li.leaf');
+    var id = _li_el.data('id');
     
     $.post('/delete_item', 
 	   {'id': id, 'delete_children' : 'true'}, 
 	   function(data) {
-	       // remove 'leaf' class containing <li> element
-	       var parent = _this.parents('li.leaf');
-	       parent.remove();
+	       _li_el.remove();
 	   });
 }
 
diff --git a/cms/templates/widgets/units.html b/cms/templates/widgets/units.html
index 2605277e71..9d9c7943da 100644
--- a/cms/templates/widgets/units.html
+++ b/cms/templates/widgets/units.html
@@ -6,7 +6,7 @@ This def will enumerate through a passed in subsection and list all of the units
 <%def name="enum_units(subsection)">
 <ol>
   % for unit in subsection.get_children():
-  <li class="leaf unit">
+  <li class="leaf unit" data-id="${unit.location}">
     <div class="section-item">
       <a href="${reverse('edit_unit', args=[unit.location])}" class="private-item">
 	<span class="${unit.category}-icon"></span>${unit.display_name} <span class="private-tag">- private</span>
@@ -19,7 +19,7 @@ This def will enumerate through a passed in subsection and list all of the units
   </li>
   % endfor
   <li>
-    <a href="#" class="new-unit-item wip">
+    <a href="#" class="new-unit-item wip" data-template="${create_new_unit_template}" data-parent="${subsection.location}">
       <span class="new-unit-icon"></span>New Unit
     </a>
   </li>
diff --git a/cms/urls.py b/cms/urls.py
index ae22220511..f57f8d91d2 100644
--- a/cms/urls.py
+++ b/cms/urls.py
@@ -13,6 +13,7 @@ urlpatterns = ('',
     url(r'^subsection/(?P<location>.*?)$', 'contentstore.views.edit_subsection', name='edit_subsection'),
     url(r'^preview_component/(?P<location>.*?)$', 'contentstore.views.preview_component', name='preview_component'),
     url(r'^save_item$', 'contentstore.views.save_item', name='save_item'),
+    url(r'^create_item$', 'contentstore.views.create_item', name='create_item'),
     url(r'^delete_item$', 'contentstore.views.delete_item', name='delete_item'),
     url(r'^clone_item$', 'contentstore.views.clone_item', name='clone_item'),
     url(r'^(?P<org>[^/]+)/(?P<course>[^/]+)/course/(?P<name>[^/]+)$',
diff --git a/common/lib/xmodule/xmodule/vertical_module.py b/common/lib/xmodule/xmodule/vertical_module.py
index f0c26e045f..738ee9ac5f 100644
--- a/common/lib/xmodule/xmodule/vertical_module.py
+++ b/common/lib/xmodule/xmodule/vertical_module.py
@@ -45,5 +45,9 @@ class VerticalModule(XModule):
 class VerticalDescriptor(SequenceDescriptor):
     module_class = VerticalModule
 
+    # cdodge: override the SequenceDescript's template_dir_name to point to default template directory
+    template_dir_name = "default"
+
     js = {'coffee': [resource_string(__name__, 'js/src/vertical/edit.coffee')]}
     js_module_name = "VerticalDescriptor"
+