diff --git a/cookiecutter.json b/cookiecutter.json
index 497e68f..beeac2e 100644
--- a/cookiecutter.json
+++ b/cookiecutter.json
@@ -8,6 +8,10 @@
       "GitLab",
       "None"
     ],
+    "jupytext": [
+      "No",
+      "Yes"
+    ],
     "python_package_name": "{{ cookiecutter.__project_name_slug.replace('-', '_') }}",
     "__package_name": "{{ cookiecutter.python_package_name }}"
   }
\ No newline at end of file
diff --git a/docs/tmp_content/overview.md b/docs/tmp_content/overview.md
index 165c93b..0a9d13d 100644
--- a/docs/tmp_content/overview.md
+++ b/docs/tmp_content/overview.md
@@ -11,6 +11,7 @@ Generated project consists of:
     * a very minimal python code + example test
 1. pre-commit hooks:
     * `black`, `flake8` - enforce code style
+    * `jupytext` (optional) - sync jupyter notebooks to plain python files
     * `pycln` - cleanups unused imports
     * `mypy` - checks type errors
     * `isort` - sorts imports
diff --git a/docs/tmp_content/precommit.md b/docs/tmp_content/precommit.md
index 2f96dcd..c1bef99 100644
--- a/docs/tmp_content/precommit.md
+++ b/docs/tmp_content/precommit.md
@@ -85,4 +85,16 @@ It is highly recommended to do that, as it allows mypy to catch more errors. For
 Sometimes a package do not have any type information nor additional package with it - in that case you can suppress mypy error by manually
 marking an exact library to be ignored as mentioned before. 
 
-Please refer to [official mypy documentation](https://mypy.readthedocs.io/en/stable/index.html) for more information.
\ No newline at end of file
+Please refer to [official mypy documentation](https://mypy.readthedocs.io/en/stable/index.html) for more information.
+
+## jupytext - additional information
+
+Jupyter notebooks are hard to review - to make it easier it is possible to use `jupytext` to convert them to `.py` files (py:percent format) automatically on commit.
+
+If you have not used it before, please read [jupytext documentation](https://jupytext.readthedocs.io/en/latest/).
+
+```{warning}
+Do not edit generated files - they will be overwritten by jupytext due to detected differences. 
+
+It is also important to ensure no other linting tool modifies them, as it might lead to endless loop of changes.
+```
\ No newline at end of file
diff --git a/hooks/post_gen_project.py b/hooks/post_gen_project.py
index 4c7f692..4a9635b 100644
--- a/hooks/post_gen_project.py
+++ b/hooks/post_gen_project.py
@@ -14,6 +14,10 @@
 REMOVE_PATHS.extend(gitlab_files)
 {% endif %}
 
+{% if cookiecutter.jupytext != "Yes" %}
+REMOVE_PATHS.extend(["notebooks/example.py"])
+{% endif %}
+
 print("Cleaning files... 🌀")
 for path in REMOVE_PATHS:
     path = Path(path)
diff --git a/tests/test_template.py b/tests/test_template.py
index 2e10594..5c7757d 100644
--- a/tests/test_template.py
+++ b/tests/test_template.py
@@ -48,7 +48,7 @@ def run_command(command: str, dir: Path):
 def assert_jinja_resolved(files: Sequence[Path]) -> None:
     """Asserts to make sure no curly braces appear in a file name nor in it's content.
     """
-    text_files = ['.txt', '.py', '.rst', '.md', '.cfg', '.toml', '.json', '.yaml', '.yml', '.ini', '.sh']
+    text_files = ['.txt', '.py', '.rst', '.md', '.cfg', '.toml', '.json', '.yaml', '.yml', '.ini', '.sh', '.ipynb']
     validator = JinjaSolvedValidator()
     for file in files:
         assert validator.has_unresolved(file.name) == False
@@ -111,3 +111,33 @@ def test_template_project_with_gitlab(cookies):
 
     rpath: Path = result.project_path
     assert (rpath / ".gitlab-ci.yml").exists() is True
+
+
+def test_template_project_with_jupytext(cookies):
+    result = cookies.bake(extra_context={
+        "client_name": "no",
+        "project_name": "jupytext",
+        "jupytext": "Yes"
+        })
+    assert result.exit_code == 0
+    assert result.exception is None
+
+    rpath: Path = result.project_path
+    jupytext_pos = (rpath / ".pre-commit-config.yaml").read_text(encoding="utf-8").find("jupytext")
+    assert jupytext_pos != -1
+    assert len(list((rpath / "notebooks").glob("*.py"))) > 0, "Notebook should have py:percent file"
+
+
+def test_template_project_no_jupytext(cookies):
+    result = cookies.bake(extra_context={
+        "client_name": "no",
+        "project_name": "jupytext",
+        "jupytext": "No"
+        })
+    assert result.exit_code == 0
+    assert result.exception is None
+
+    rpath: Path = result.project_path
+    jupytext_pos = (rpath / ".pre-commit-config.yaml").read_text(encoding="utf-8").find("jupytext")
+    assert jupytext_pos == -1
+    assert len(list((rpath / "notebooks").glob("*.py"))) == 0, "Notebook should not have a py:percent file"
diff --git a/{{ cookiecutter.repo_name }}/.pre-commit-config.yaml b/{{ cookiecutter.repo_name }}/.pre-commit-config.yaml
index 139ea76..5cefa17 100644
--- a/{{ cookiecutter.repo_name }}/.pre-commit-config.yaml	
+++ b/{{ cookiecutter.repo_name }}/.pre-commit-config.yaml	
@@ -5,7 +5,7 @@ repos:
           - id: check-case-conflict
           - id: check-merge-conflict
           - id: trailing-whitespace
-            exclude: ".bumpversion.cfg"
+            exclude: .bumpversion.cfg|notebooks/.*\.py
           - id: check-ast
           - id: check-added-large-files
           - id: check-toml
@@ -17,9 +17,23 @@ repos:
       rev: 23.10.1
       hooks:
           - id: black
-            exclude: (docs/)
+            exclude: (docs/|notebooks/){% if cookiecutter.jupytext == "No" %}
           - id: black-jupyter
-            exclude: (docs/)
+            files: \.ipynb$
+    {%- endif -%}
+
+    {% if cookiecutter.jupytext == "Yes" %}
+
+      # Save .ipynb to .py:percent format
+    - repo: https://github.com/mwouts/jupytext
+      rev: v1.15.2
+      hooks:
+        - id: jupytext
+          args: ["--from", ".ipynb", "--to", "py:percent", "--pipe-fmt", "black"]
+          files: "\\.ipynb$"
+          additional_dependencies:
+            - black==23.10.1
+    {%- endif %}
 
       # Cleaning unused imports.
     - repo: https://github.com/hadialqattan/pycln
@@ -27,7 +41,7 @@ repos:
       hooks:
           - id: pycln
             args: ["-a"]
-            exclude: (docs/)
+            exclude: (docs/|notebooks/)
 
     # Modernizes python code and upgrade syntax for newer versions of the language
     - repo: https://github.com/asottile/pyupgrade
@@ -53,7 +67,7 @@ repos:
       hooks:
           - id: isort
             args: ["--profile", "black"]
-            exclude: (docs/)
+            exclude: (docs/|notebooks/)
 
       # Checks Python source files for errors.
     - repo: https://github.com/PyCQA/flake8
@@ -90,3 +104,4 @@ repos:
           - id: bandit
             args: [-c, pyproject.toml, --recursive, src]
             additional_dependencies: [".[toml]"] # required for pyproject.toml support
+            exclude:  (notebooks/)
diff --git a/{{ cookiecutter.repo_name }}/README.md b/{{ cookiecutter.repo_name }}/README.md
index 887cf45..3fd2cb9 100644
--- a/{{ cookiecutter.repo_name }}/README.md	
+++ b/{{ cookiecutter.repo_name }}/README.md	
@@ -76,6 +76,19 @@ Please read more about it [here](https://docs.gitlab.com/ee/user/project/pages/i
 
 {% endif %}
 
+{% if cookiecutter.jupytext == "Yes" %}
+
+# Jupyter notebooks and jupytext
+
+To make notebooks more friendly for code review and version control we use `jupytext` to sync notebooks with python files. If you have not used it before, please read [jupytext documentation](https://jupytext.readthedocs.io/en/latest/).
+
+There is pre-commit hook which automatically generates and syncs notebooks with python files on each commit.
+
+Please ensure you do not edit/modify manually or by other means generated py:percent files as they will conflict with jupytext change detection and lead to endless loop.
+Treat them as read-only files and edit only notebooks.
+
+{% endif %}
+
 # Semantic version bump
 
 To bump version of the library please use `bump2version` which will update all version strings.
diff --git a/{{ cookiecutter.repo_name }}/notebooks/example.ipynb b/{{ cookiecutter.repo_name }}/notebooks/example.ipynb
new file mode 100644
index 0000000..280338b
--- /dev/null
+++ b/{{ cookiecutter.repo_name }}/notebooks/example.ipynb	
@@ -0,0 +1,33 @@
+{
+ "cells": [
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "# IPython extension to reload modules before executing user code.\n",
+    "# For more info check https://ipython.org/ipython-doc/3/config/extensions/autoreload.html\n",
+    "%load_ext autoreload\n",
+    "%autoreload 2"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "import {{ cookiecutter.__package_name }}"
+   ]
+  }
+ ],
+ "metadata": {
+  "language_info": {
+   "name": "python"
+  },
+  "orig_nbformat": 4
+ },
+ "nbformat": 4,
+ "nbformat_minor": 2
+}
diff --git a/{{ cookiecutter.repo_name }}/notebooks/example.py b/{{ cookiecutter.repo_name }}/notebooks/example.py
new file mode 100644
index 0000000..ef9bbdb
--- /dev/null
+++ b/{{ cookiecutter.repo_name }}/notebooks/example.py	
@@ -0,0 +1,18 @@
+# ---
+# jupyter:
+#   jupytext:
+#     text_representation:
+#       extension: .py
+#       format_name: percent
+#       format_version: '1.3'
+#       jupytext_version: 1.15.2
+# ---
+
+# %%
+# IPython extension to reload modules before executing user code.
+# For more info check https://ipython.org/ipython-doc/3/config/extensions/autoreload.html
+# %load_ext autoreload
+# %autoreload 2
+
+# %%
+import {{ cookiecutter.__package_name }}
diff --git a/{{ cookiecutter.repo_name }}/pyproject.toml b/{{ cookiecutter.repo_name }}/pyproject.toml
index 4f99fd5..10da5a8 100644
--- a/{{ cookiecutter.repo_name }}/pyproject.toml	
+++ b/{{ cookiecutter.repo_name }}/pyproject.toml	
@@ -96,7 +96,7 @@ ignore_missing_imports = false
 disallow_untyped_defs = true
 
 [tool.pylint.basic]
-good-names="""i,j,x,y,z,x1,y1,z1,x2,y2,z2,cv,df,dx,dy,dz,w,h,c,b,g,qa,q,a""""
+good-names="i,j,x,y,z,x1,y1,z1,x2,y2,z2,cv,df,dx,dy,dz,w,h,c,b,g,qa,q,a"
 max-args=8
 
 [tool.pylint.main]