diff --git a/.gitignore b/.gitignore
index 22fd22c7d..71b04871c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -16,6 +16,7 @@ pkg
 spec/dummy
 spec/examples.txt
 /sandbox
+/sandbox-generated
 .rvmrc
 .ruby-version
 .ruby-gemset
diff --git a/bin/rails-sandbox-generated b/bin/rails-sandbox-generated
new file mode 100755
index 000000000..14544bee5
--- /dev/null
+++ b/bin/rails-sandbox-generated
@@ -0,0 +1,16 @@
+#!/usr/bin/env ruby
+
+app_root = 'sandbox-generated'
+
+unless File.exist? "#{app_root}/bin/rails"
+  warn "Creating the #{app_root} app..."
+  Dir.chdir "#{__dir__}/.." do
+    system "GENERATE_FRONTEND=1 #{__dir__}/sandbox" or begin
+      warn "Automatic creation of the #{app_root} app failed"
+      exit 1
+    end
+  end
+end
+
+Dir.chdir app_root
+exec 'bin/rails', *ARGV
diff --git a/bin/sandbox b/bin/sandbox
index ee8d28b72..a76a80c20 100755
--- a/bin/sandbox
+++ b/bin/sandbox
@@ -33,13 +33,23 @@ fi
 
 extension_name="solidus_starter_frontend"
 
+if [[ -z $GENERATE_FRONTEND ]]; then
+  sandbox_name='sandbox'
+  extension_gem_line="gem '$extension_name', path: '..'"
+else
+  sandbox_name='sandbox-generated'
+  extension_gem_line=""
+fi
+
+sandbox_path="./${sandbox_name}"
+
 # Stay away from the bundler env of the containing extension.
 function unbundled {
   ruby -rbundler -e'b = proc {system *ARGV}; Bundler.respond_to?(:with_unbundled_env) ? Bundler.with_unbundled_env(&b) : Bundler.with_clean_env(&b)' -- $@
 }
 
-rm -rf ./sandbox
-unbundled bundle exec rails new sandbox --database="$RAILSDB" \
+rm -rf ${sandbox_path}
+unbundled bundle exec rails new ${sandbox_name} --database="$RAILSDB" \
   --skip-bundle \
   --skip-git \
   --skip-keeps \
@@ -48,12 +58,12 @@ unbundled bundle exec rails new sandbox --database="$RAILSDB" \
   --skip-test \
   --skip-javascript
 
-if [ ! -d "sandbox" ]; then
+if [ ! -d "${sandbox_name}" ]; then
   echo 'sandbox rails application failed'
   exit 1
 fi
 
-cd ./sandbox
+cd ${sandbox_path}
 cat <<RUBY >> Gemfile
 # By default, the solidus gem also includes the standard frontend via
 # the solidus_frontend gem. To make this extension work, you need to
@@ -71,7 +81,7 @@ gem 'solidus_sample', github: solidus_repo, branch: solidus_branch
 gem 'solidus_i18n', github: solidus_i18n_repo, branch: solidus_i18n_branch
 
 gem 'rails-i18n'
-gem '$extension_name', path: '..'
+${extension_gem_line}
 gem 'solidus_auth_devise'
 RUBY
 
@@ -109,7 +119,12 @@ unbundled bundle exec rails generate solidus:install \
   $@
 
 unbundled bundle exec rails generate solidus:auth:install --auto-run-migrations
-unbundled bundle exec rails g solidus_starter_frontend:install
+
+if [[ -z $GENERATE_FRONTEND ]]; then
+  unbundled bundle exec rails g solidus_starter_frontend:install
+else
+  unbundled ../exe/${extension_name} --auto-accept
+fi
 
 echo
 echo "🚀 Sandbox app successfully created for $extension_name!"
diff --git a/docs/development.md b/docs/development.md
index 388ee100e..c71ab67e5 100644
--- a/docs/development.md
+++ b/docs/development.md
@@ -26,8 +26,15 @@ require 'solidus_starter_frontend/factories'
 ```
 
 ### Running the sandbox
-To run this extension in a sandboxed Solidus application, you can run 
-`bin/sandbox`. The path for the sandbox app is `./sandbox` and `bin/rails` will 
+
+You can create two kinds of Solidus applications to test this project: an app
+where this gem runs as an engine, and an app where the storefront is generated
+with this gem.
+
+#### App with gem running as engine
+
+To run this extension as an engine in a sandboxed Solidus application, you can run
+`bin/sandbox`. The path for the sandbox app is `./sandbox` and `bin/rails` will
 forward any Rails commands to `sandbox/bin/rails`.
 
 Here's an example:
@@ -42,6 +49,18 @@ Use Ctrl-C to stop
 
 Default username and password for admin are: `admin@example.com` and `test123`.
 
+#### App with storefront generated by the gem
+
+To create a sandboxed Solidus application where the storefront is generated with
+this gem, run `GENERATE_FRONTEND=1 bin/sandbox`. The path for the sandbox app
+is `./sandbox-generated`. Unlike the previous `./sandbox` app, you'll need to
+`cd` to the `./sandbox-generated` directory in order to run the application.
+
+As a shortcut, you can run `bin/rails-sandbox-generated` to create the app and
+then run the Rails server.
+
+
+
 ### Updating the changelog
 Before and after releases the changelog should be updated to reflect the 
 up-to-date status of the project: