diff --git a/railties/lib/rails/generators/actions.rb b/railties/lib/rails/generators/actions.rb
index ae395708cb..78d2471890 100644
--- a/railties/lib/rails/generators/actions.rb
+++ b/railties/lib/rails/generators/actions.rb
@@ -7,7 +7,7 @@ module Rails
     module Actions
       def initialize(*) # :nodoc:
         super
-        @in_group = nil
+        @indentation = 0
         @after_bundle_callbacks = []
       end
 
@@ -36,13 +36,11 @@ module Rails
 
         log :gemfile, message
 
-        options.each do |option, value|
-          parts << "#{option}: #{quote(value)}"
-        end
+        parts << quote(options) unless options.empty?
 
         in_root do
           str = "gem #{parts.join(", ")}"
-          str = "  " + str if @in_group
+          str = indentation + str
           str = "\n" + str
           append_file "Gemfile", str, verbose: false
         end
@@ -54,20 +52,32 @@ module Rails
       #     gem "rspec-rails"
       #   end
       def gem_group(*names, &block)
-        name = names.map(&:inspect).join(", ")
-        log :gemfile, "group #{name}"
+        options = names.extract_options!
+        str = names.map(&:inspect)
+        str << quote(options) unless options.empty?
+        str = str.join(", ")
+        log :gemfile, "group #{str}"
 
         in_root do
-          append_file "Gemfile", "\ngroup #{name} do", force: true
-
-          @in_group = true
-          instance_eval(&block)
-          @in_group = false
-
+          append_file "Gemfile", "\ngroup #{str} do", force: true
+          with_indentation(&block)
           append_file "Gemfile", "\nend\n", force: true
         end
       end
 
+      def github(repo, options = {}, &block)
+        str = [quote(repo)]
+        str << quote(options) unless options.empty?
+        str = str.join(", ")
+        log :github, "github #{str}"
+
+        in_root do
+          append_file "Gemfile", "\n#{indentation}github #{str} do", force: true
+          with_indentation(&block)
+          append_file "Gemfile", "\n#{indentation}end", force: true
+        end
+      end
+
       # Add the given source to +Gemfile+
       #
       # If block is given, gem entries in block are wrapped into the source group.
@@ -83,9 +93,7 @@ module Rails
         in_root do
           if block
             append_file "Gemfile", "\nsource #{quote(source)} do", force: true
-            @in_group = true
-            instance_eval(&block)
-            @in_group = false
+            with_indentation(&block)
             append_file "Gemfile", "\nend\n", force: true
           else
             prepend_file "Gemfile", "source #{quote(source)}\n", verbose: false
@@ -315,6 +323,11 @@ module Rails
         # Surround string with single quotes if there is no quotes.
         # Otherwise fall back to double quotes
         def quote(value) # :doc:
+          if value.respond_to? :each_pair
+            return value.map do |k, v|
+              "#{k}: #{quote(v)}"
+            end.join(", ")
+          end
           return value.inspect unless value.is_a? String
 
           if value.include?("'")
@@ -334,6 +347,19 @@ module Rails
             "#{value.strip.indent(amount)}\n"
           end
         end
+
+        # Indent the +Gemfile+ to the depth of @indentation
+        def indentation # :doc:
+          "  " * @indentation
+        end
+
+        # Manage +Gemfile+ indentation for a DSL action block
+        def with_indentation(&block) # :doc:
+          @indentation += 1
+          instance_eval(&block)
+        ensure
+          @indentation -= 1
+        end
     end
   end
 end
diff --git a/railties/test/generators/actions_test.rb b/railties/test/generators/actions_test.rb
index a54a6dbc28..da52b6076a 100644
--- a/railties/test/generators/actions_test.rb
+++ b/railties/test/generators/actions_test.rb
@@ -144,6 +144,44 @@ class ActionsTest < Rails::Generators::TestCase
     assert_file "Gemfile", /\ngroup :development, :test do\n  gem 'rspec-rails'\nend\n\ngroup :test do\n  gem 'fakeweb'\nend/
   end
 
+  def test_github_should_create_an_indented_block
+    run_generator
+
+    action :github, "user/repo" do
+      gem "foo"
+      gem "bar"
+      gem "baz"
+    end
+
+    assert_file "Gemfile", /\ngithub 'user\/repo' do\n  gem 'foo'\n  gem 'bar'\n  gem 'baz'\nend/
+  end
+
+  def test_github_should_create_an_indented_block_with_options
+    run_generator
+
+    action :github, "user/repo", a: "correct", other: true do
+      gem "foo"
+      gem "bar"
+      gem "baz"
+    end
+
+    assert_file "Gemfile", /\ngithub 'user\/repo', a: 'correct', other: true do\n  gem 'foo'\n  gem 'bar'\n  gem 'baz'\nend/
+  end
+
+  def test_github_should_create_an_indented_block_within_a_group
+    run_generator
+
+    action :gem_group, :magic do
+      github "user/repo", a: "correct", other: true do
+        gem "foo"
+        gem "bar"
+        gem "baz"
+      end
+    end
+
+    assert_file "Gemfile", /\ngroup :magic do\n  github 'user\/repo', a: 'correct', other: true do\n    gem 'foo'\n    gem 'bar'\n    gem 'baz'\n  end\nend\n/
+  end
+
   def test_environment_should_include_data_in_environment_initializer_block
     run_generator
     autoload_paths = 'config.autoload_paths += %w["#{Rails.root}/app/extras"]'