diff --git a/railties/lib/generators/rails/app/app_generator.rb b/railties/lib/generators/rails/app/app_generator.rb
index ea1930a..5ebbb14 100644
--- a/railties/lib/generators/rails/app/app_generator.rb
+++ b/railties/lib/generators/rails/app/app_generator.rb
@@ -175,7 +175,8 @@ module Rails::Generators
     end
 
     def bundle_if_dev_or_edge
-      run "bundle install" if dev_or_edge?
+      bundle_command = File.basename(Thor::Util.ruby_command).sub(/ruby/, 'bundle')
+      run "#{bundle_command} install" if dev_or_edge?
     end
 
     protected
diff --git a/railties/test/generators/app_generator_test.rb b/railties/test/generators/app_generator_test.rb
index 01d643c..b9b5caf 100644
--- a/railties/test/generators/app_generator_test.rb
+++ b/railties/test/generators/app_generator_test.rb
@@ -9,6 +9,7 @@ class AppGeneratorTest < Rails::Generators::TestCase
   def setup
     super
     Rails::Generators::AppGenerator.instance_variable_set('@desc', nil)
+    @bundle_command = File.basename(Thor::Util.ruby_command).sub(/ruby/, 'bundle')
   end
 
   def teardown
@@ -160,14 +161,14 @@ class AppGeneratorTest < Rails::Generators::TestCase
   end
 
   def test_dev_option
-    generator([destination_root], :dev => true).expects(:run).with("bundle install")
+    generator([destination_root], :dev => true).expects(:run).with("#{@bundle_command} install")
     silence(:stdout){ generator.invoke }
     rails_path = File.expand_path('../../..', Rails.root)
     assert_file 'Gemfile', /^gem\s+["']rails["'],\s+:path\s+=>\s+["']#{Regexp.escape(rails_path)}["']$/
   end
 
   def test_edge_option
-    generator([destination_root], :edge => true).expects(:run).with("bundle install")
+    generator([destination_root], :edge => true).expects(:run).with("#{@bundle_command} install")
     silence(:stdout){ generator.invoke }
     assert_file 'Gemfile', /^gem\s+["']rails["'],\s+:git\s+=>\s+["']#{Regexp.escape("git://github.com/rails/rails.git")}["']$/
   end