diff --git a/README.md b/README.md
index 738262d1..e8c327e1 100644
--- a/README.md
+++ b/README.md
@@ -25,6 +25,15 @@ Subscribe to Mailtrain Newsletter [here](http://mailtrain.org/subscription/EysIv
 
 ## Installation
 
+### Automatic install (Ubuntu 14.04)
+
+You can download and run [install.sh](setup/install.sh) in your blank Ubuntu 14.04 VPS to set up
+Mailtrain and all required dependencies (including MySQL).
+
+If you are using DigitalOcean then you can copy the contents of the [installation script](setup/install.sh) to the User Data textarea field when creating a new VPS (select Ubuntu 14.04 as the droplet Distribution image). After your droplet is created it should already have Mailtrain up and running. Navigate to http://droplet-hostname-or-ip/ and authenticate as `admin`:`test`. Do not forget to replace your account email and set up SMTP settings.
+
+### Manual (any OS that supports Node.js)
+
   1. Download Mailtrain files using git: `git clone git://github.com/andris9/mailtrain.git` and open Mailtrain folder `cd mailtrain`
   2. Run `npm install` in the Mailtrain folder to install required dependencies
   3. Copy [config/default.toml](config/default.toml) as `config/production.toml` and update MySQL and any other settings in it
diff --git a/setup/install.sh b/setup/install.sh
new file mode 100755
index 00000000..2486228f
--- /dev/null
+++ b/setup/install.sh
@@ -0,0 +1,78 @@
+#!/bin/bash
+
+# This installation script works on Ubuntu 14.04
+
+set -e
+
+export DEBIAN_FRONTEND=noninteractive
+
+apt-add-repository -y ppa:chris-lea/redis-server
+
+curl -sL https://deb.nodesource.com/setup_6.x | bash -
+apt-get -q -y install mysql-server pwgen redis-server nodejs git ufw
+apt-get clean
+
+HOSTNAME=$(curl -s http://169.254.169.254/metadata/v1/hostname)
+MYSQL_PASSWORD=`pwgen -1`
+
+# Setup MySQL user for Mailtrain
+mysql -u root -e "CREATE USER 'mailtrain'@'localhost' IDENTIFIED BY '$MYSQL_PASSWORD';"
+mysql -u root -e "GRANT ALL PRIVILEGES ON mailtrain.* TO 'mailtrain'@'%' WITH GRANT OPTION;"
+mysql -u mailtrain --password="$MYSQL_PASSWORD" -e "CREATE database mailtrain;"
+
+# Enable firewall, allow connections to SSH, HTTP, HTTPS and SMTP
+ufw allow 22/tcp
+ufw allow 80/tcp
+ufw allow 443/tcp
+ufw allow 25/tcp
+ufw --force enable
+
+# Fetch Mailtrain files
+cd /opt
+git clone git://github.com/andris9/mailtrain.git
+cd mailtrain
+
+# Set up upstart service script
+cp setup/mailtrain.conf /etc/init
+
+# Add new user for the daemon to run as
+useradd mailtrain || true
+
+# Setup installation configuration
+cat >> config/production.toml <<EOT
+user="mailtrain"
+group="mailtrain"
+[log]
+level="error"
+[www]
+port=80
+secret="`pwgen -1`"
+[mysql]
+password="$MYSQL_PASSWORD"
+[redis]
+enabled=true
+[verp]
+enabled=true
+EOT
+
+# Install required node packages
+npm install --no-progress --production
+
+# Setup log rotation to not spend up entire storage on logs
+cat <<EOM > /etc/logrotate.d/mailtrain
+/var/log/mailtrain.log {
+    daily
+    rotate 12
+    compress
+    delaycompress
+    missingok
+    notifempty
+    copytruncate
+    nomail
+}
+EOM
+
+# Start the service
+service mailtrain start
+
+echo "Success!";