diff --git a/src/generate.jl b/src/generate.jl
index 1508fe9..edaa3d5 100644
--- a/src/generate.jl
+++ b/src/generate.jl
@@ -63,6 +63,9 @@ function generate(
         LibGit2.commit(repo, "Files generated by PkgTemplates")
         @info "Committed $(length(files)) files/directories: $(join(files, ", "))"
 
+        # Add the new package to the global environment.
+        Pkg.develop(PackageSpec(path=pkg_dir))
+
         if length(collect(LibGit2.GitBranchIter(repo))) > 1
             @info "Remember to push all created branches to your remote: git push --all"
         end
@@ -110,7 +113,6 @@ Returns an array of generated file/directory names.
 """
 function gen_tests(pkg_dir::AbstractString, t::Template)
     # TODO: Silence Pkg for this section? Adding and removing Test creates a lot of noise.
-    proj = Base.current_project()
     try
         Pkg.activate(pkg_dir)
         Pkg.add("Test")
@@ -131,7 +133,7 @@ function gen_tests(pkg_dir::AbstractString, t::Template)
         gen_file(joinpath(pkg_dir, "Project.toml"), toml)
         Pkg.update()  # Regenerate Manifest.toml (this cleans up Project.toml too).
     finally
-        proj !== nothing && Pkg.activate(dirname(proj))
+        Pkg.activate()
     end
 
     pkg = basename(pkg_dir)
diff --git a/test/tests.jl b/test/tests.jl
index 58834d9..2ec7b70 100644
--- a/test/tests.jl
+++ b/test/tests.jl
@@ -319,6 +319,13 @@ end
     idx = LibGit2.GitIndex(repo)
     @test findall("Manifest.toml", idx) !== nothing
     rm(pkg_dir; recursive=true)
+
+    # Check that the created package ends up developed in the global environment.
+    t = Template(; user=me)
+    generate(test_pkg, t; gitconfig=gitconfig)
+    Pkg.activate()
+    @test haskey(Pkg.installed(), test_pkg)
+    rm(pkg_dir; recursive=true)
 end
 
 @testset "Version floor" begin