diff --git a/packages/cli/generators/copyright/header.js b/packages/cli/generators/copyright/header.js
index cc3fd049ce8b..ed19ff4c7d07 100644
--- a/packages/cli/generators/copyright/header.js
+++ b/packages/cli/generators/copyright/header.js
@@ -7,6 +7,7 @@ const _ = require('lodash');
 const git = require('./git');
 const path = require('path');
 const fs = require('fs-extra');
+const chalk = require('chalk');
 const Project = require('@lerna/project');
 
 const {promisify} = require('util');
@@ -155,7 +156,8 @@ async function ensureHeader(file, pkg, options = {}) {
   if (!options.dryRun) {
     await fs.writeFile(file, content, 'utf8');
   } else {
-    console.log(file, header);
+    const log = options.log || console.log;
+    log(file, header);
   }
   return content;
 }
@@ -250,14 +252,16 @@ async function updateFileHeaders(projectRoot, options = {}) {
 async function updateFileHeadersForSinglePackage(projectRoot, options) {
   debug('Options', options);
   debug('Project root: %s', projectRoot);
+  const log = options.log || console.log;
   const pkgFile = path.join(projectRoot, 'package.json');
   const exists = await fs.exists(pkgFile);
   if (!exists) {
-    console.error('No package.json exists at %s.', projectRoot);
+    log(chalk.red(`No package.json exists at ${projectRoot}`));
     return;
   }
   const pkg = await fs.readJson(pkgFile);
-  console.log(
+
+  log(
     'Updating project %s (%s)',
     pkg.name,
     path.relative(process.cwd(), projectRoot) || '.',
diff --git a/packages/cli/generators/copyright/index.js b/packages/cli/generators/copyright/index.js
index eac5fe78a8eb..4590fee41608 100644
--- a/packages/cli/generators/copyright/index.js
+++ b/packages/cli/generators/copyright/index.js
@@ -26,6 +26,12 @@ module.exports = class CopyrightGenerator extends BaseGenerator {
       required: false,
       description: g.f('License'),
     });
+    this.option('gitOnly', {
+      type: Boolean,
+      required: false,
+      default: true,
+      description: g.f('Only update git tracked files'),
+    });
     return super.setOptions();
   }
 
@@ -64,6 +70,8 @@ module.exports = class CopyrightGenerator extends BaseGenerator {
     this.headerOptions = {
       copyrightOwner: answers.owner || this.options.owner,
       license: answers.license || this.options.license,
+      log: this.log,
+      gitOnly: this.options.gitOnly,
     };
   }
 
diff --git a/packages/cli/test/fixtures/copyright/application.ts b/packages/cli/test/fixtures/copyright/application.ts
new file mode 100644
index 000000000000..cd003e7cb1f2
--- /dev/null
+++ b/packages/cli/test/fixtures/copyright/application.ts
@@ -0,0 +1,6 @@
+// Copyright IBM Corp. 2020. All Rights Reserved.
+// Node module: myapp
+// This file is licensed under the MIT License.
+// License text available at https://opensource.org/licenses/MIT
+
+export class MyApplication {}
diff --git a/packages/cli/test/fixtures/copyright/index.js b/packages/cli/test/fixtures/copyright/index.js
new file mode 100644
index 000000000000..0c16c5231588
--- /dev/null
+++ b/packages/cli/test/fixtures/copyright/index.js
@@ -0,0 +1,30 @@
+// Copyright IBM Corp. 2020. All Rights Reserved.
+// Node module: @loopback/cli
+// This file is licensed under the MIT License.
+// License text available at https://opensource.org/licenses/MIT
+
+const fs = require('fs');
+
+exports.SANDBOX_FILES = [
+  {
+    path: 'src',
+    file: 'application.ts',
+    content: fs.readFileSync(require.resolve('./application.ts'), {
+      encoding: 'utf-8',
+    }),
+  },
+  {
+    path: 'lib',
+    file: 'no-header.js',
+    content: fs.readFileSync(require.resolve('./no-header.js'), {
+      encoding: 'utf-8',
+    }),
+  },
+  {
+    path: '',
+    file: 'package.json',
+    content: fs.readFileSync(require.resolve('./package.json.txt'), {
+      encoding: 'utf-8',
+    }),
+  },
+];
diff --git a/packages/cli/test/fixtures/copyright/no-header.js b/packages/cli/test/fixtures/copyright/no-header.js
new file mode 100644
index 000000000000..4ed25f524c47
--- /dev/null
+++ b/packages/cli/test/fixtures/copyright/no-header.js
@@ -0,0 +1,2 @@
+// XYZ
+exports.xyz = {};
diff --git a/packages/cli/test/fixtures/copyright/package.json.txt b/packages/cli/test/fixtures/copyright/package.json.txt
new file mode 100644
index 000000000000..15f8d1b0e803
--- /dev/null
+++ b/packages/cli/test/fixtures/copyright/package.json.txt
@@ -0,0 +1,5 @@
+{
+  "name": "myapp",
+  "copyright.owner": "ACME Inc.",
+  "license": "MIT"
+}
diff --git a/packages/cli/test/integration/generators/copyright.integration.js b/packages/cli/test/integration/generators/copyright.integration.js
new file mode 100644
index 000000000000..86aea68b3049
--- /dev/null
+++ b/packages/cli/test/integration/generators/copyright.integration.js
@@ -0,0 +1,87 @@
+// Copyright IBM Corp. 2020. All Rights Reserved.
+// Node module: @loopback/cli
+// This file is licensed under the MIT License.
+// License text available at https://opensource.org/licenses/MIT
+
+'use strict';
+
+const path = require('path');
+const assert = require('yeoman-assert');
+const testlab = require('@loopback/testlab');
+const TestSandbox = testlab.TestSandbox;
+
+const generator = path.join(__dirname, '../../../generators/copyright');
+const SANDBOX_FILES = require('../../fixtures/copyright').SANDBOX_FILES;
+const testUtils = require('../../test-utils');
+
+// Test Sandbox
+const SANDBOX_PATH = path.resolve(__dirname, '..', '.sandbox');
+const sandbox = new TestSandbox(SANDBOX_PATH);
+
+const year = new Date().getFullYear();
+
+describe('lb4 copyright', function () {
+  // eslint-disable-next-line no-invalid-this
+  this.timeout(30000);
+
+  beforeEach('reset sandbox', async () => {
+    await sandbox.reset();
+  });
+
+  it('updates copyright/license headers with prompts', async () => {
+    await testUtils
+      .executeGenerator(generator)
+      .inDir(SANDBOX_PATH, () =>
+        testUtils.givenLBProject(SANDBOX_PATH, {
+          excludePackageJSON: true,
+          additionalFiles: SANDBOX_FILES,
+        }),
+      )
+      .withPrompts({owner: 'ACME Inc.', license: 'ISC'})
+      .withOptions({gitOnly: false});
+
+    assertApplicationTsFileUpdated();
+    assertJsFileUpdated();
+  });
+
+  it('updates copyright/license headers with options', async () => {
+    await testUtils
+      .executeGenerator(generator)
+      .inDir(SANDBOX_PATH, () =>
+        testUtils.givenLBProject(SANDBOX_PATH, {
+          excludePackageJSON: true,
+          additionalFiles: SANDBOX_FILES,
+        }),
+      )
+      .withOptions({owner: 'ACME Inc.', license: 'ISC', gitOnly: false});
+
+    assertApplicationTsFileUpdated();
+    assertJsFileUpdated();
+  });
+});
+
+function assertApplicationTsFileUpdated() {
+  const file = path.join(SANDBOX_PATH, 'src', 'application.ts');
+  assertHeader(file);
+}
+
+function assertHeader(file) {
+  assert.fileContent(
+    file,
+    `// Copyright ACME Inc. ${year}. All Rights Reserved.`,
+  );
+  assert.fileContent(file, '// Node module: myapp');
+  assert.fileContent(
+    file,
+    '// This file is licensed under the ISC License (ISC).',
+  );
+  assert.fileContent(
+    file,
+    '// License text available at https://opensource.org/licenses/ISC',
+  );
+}
+
+function assertJsFileUpdated() {
+  const file = path.join(SANDBOX_PATH, 'lib', 'no-header.js');
+  assertHeader(file);
+}