diff --git a/cli/app/new.go b/cli/app/new.go
index 773187c1..daa818a7 100644
--- a/cli/app/new.go
+++ b/cli/app/new.go
@@ -75,9 +75,34 @@ var AppNewCommand = &cobra.Command{
 
 		chaosVersion := config.CHAOS_DEFAULT
 		if internal.Chaos {
-			recipeVersion = chaosVersion
+			var err error
+			chaosVersion, err = recipe.ChaosVersion()
+			if err != nil {
+				log.Fatal(err)
+			}
 
-			if !internal.Offline {
+			// NOTE(d1): rely on tags as there is no recipe.EnvVersion yet because
+			// the app has not been fully created. we rely on the local git state of
+			// the repository
+			tags, err := recipe.Tags()
+			if err != nil {
+				log.Fatal(err)
+			}
+
+			internal.SortVersionsDesc(tags)
+
+			if len(tags) == 0 {
+				// NOTE(d1): this is a new recipe with no released versions
+				recipeVersion = config.UNKNOWN_DEFAULT
+			} else {
+				recipeVersion = tags[len(tags)-1]
+			}
+
+			if err := recipe.IsDirty(); err != nil {
+				log.Fatal(err)
+			}
+
+			if !internal.Offline && !recipe.Dirty {
 				if err := recipe.EnsureUpToDate(); err != nil {
 					log.Fatal(err)
 				}
@@ -88,29 +113,29 @@ var AppNewCommand = &cobra.Command{
 			if err := recipe.EnsureIsClean(); err != nil {
 				log.Fatal(err)
 			}
-		}
 
-		var recipeVersions recipePkg.RecipeVersions
-		if recipeVersion == "" {
-			var err error
-			recipeVersions, _, err = recipe.GetRecipeVersions()
-			if err != nil {
-				log.Fatal(err)
-			}
-		}
-
-		if len(recipeVersions) > 0 {
-			latest := recipeVersions[len(recipeVersions)-1]
-			for tag := range latest {
-				recipeVersion = tag
+			var recipeVersions recipePkg.RecipeVersions
+			if recipeVersion == "" {
+				var err error
+				recipeVersions, _, err = recipe.GetRecipeVersions()
+				if err != nil {
+					log.Fatal(err)
+				}
 			}
 
-			if _, err := recipe.EnsureVersion(recipeVersion); err != nil {
-				log.Fatal(err)
-			}
-		} else {
-			if err := recipe.EnsureLatest(); err != nil {
-				log.Fatal(err)
+			if len(recipeVersions) > 0 {
+				latest := recipeVersions[len(recipeVersions)-1]
+				for tag := range latest {
+					recipeVersion = tag
+				}
+
+				if _, err := recipe.EnsureVersion(recipeVersion); err != nil {
+					log.Fatal(err)
+				}
+			} else {
+				if err := recipe.EnsureLatest(); err != nil {
+					log.Fatal(err)
+				}
 			}
 		}
 
diff --git a/tests/integration/app_new.bats b/tests/integration/app_new.bats
index 503cf4da..f55f2052 100644
--- a/tests/integration/app_new.bats
+++ b/tests/integration/app_new.bats
@@ -20,6 +20,10 @@ setup(){
 teardown(){
   _rm_app
   _reset_recipe
+  _reset_tags
+
+  run rm -rf "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
+  assert_not_exists "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
 }
 
 @test "create new app" {
@@ -185,3 +189,50 @@ teardown(){
   assert_success
   assert_output --partial 'test_pass_one'
 }
+
+# bats test_tags=slow
+@test "app new from chaos recipe" {
+  currentHash=$(_get_current_hash)
+  latestRelease=$(_latest_release)
+
+  run bash -c "echo foo >> $ABRA_DIR/recipes/$TEST_RECIPE/foo"
+  assert_success
+  assert_exists "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
+
+  run $ABRA app new "$TEST_RECIPE" \
+    --no-input \
+    --server "$TEST_SERVER" \
+    --domain "$TEST_APP_DOMAIN" \
+    --secrets \
+    --chaos
+  assert_success
+  assert_exists "$ABRA_DIR/servers/$TEST_SERVER/$TEST_APP_DOMAIN.env"
+  assert_output --partial "version: $latestRelease"
+  assert_output --partial "chaos: ${currentHash:0:8}"
+
+  assert_exists "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
+  assert_equal "$(_git_status)" "?? foo"
+}
+
+# bats test_tags=slow
+@test "app new, no releases, from chaos recipe" {
+  _remove_tags
+
+  run bash -c "echo foo >> $ABRA_DIR/recipes/$TEST_RECIPE/foo"
+  assert_success
+  assert_exists "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
+
+  run $ABRA app new "$TEST_RECIPE" \
+    --no-input \
+    --server "$TEST_SERVER" \
+    --domain "$TEST_APP_DOMAIN" \
+    --secrets \
+    --chaos
+  assert_success
+  assert_exists "$ABRA_DIR/servers/$TEST_SERVER/$TEST_APP_DOMAIN.env"
+  assert_output --partial "version: unknown"
+  assert_output --partial "chaos: ${currentHash:0:8}"
+
+  assert_exists "$ABRA_DIR/recipes/$TEST_RECIPE/foo"
+  assert_equal "$(_git_status)" "?? foo"
+}