diff --git a/frappe/commands/site.py b/frappe/commands/site.py
index c78bd4a7c5..25c8c3159d 100644
--- a/frappe/commands/site.py
+++ b/frappe/commands/site.py
@@ -44,7 +44,7 @@ from frappe.exceptions import SiteNotSpecifiedError
 @click.option(
 	"--force", help="Force restore if site/database already exists", is_flag=True, default=False
 )
-@click.option("--source_sql", help="Initiate database with a SQL file")
+@click.option("--source-sql", "--source_sql", help="Initiate database with a SQL file")
 @click.option("--install-app", multiple=True, help="Install app after installation")
 @click.option(
 	"--set-default", is_flag=True, default=False, help="Set the new site as default site"
@@ -67,10 +67,13 @@ def new_site(
 	set_default=False,
 ):
 	"Create a new site"
-	from frappe.installer import _new_site
+	from frappe.installer import _new_site, extract_sql_from_archive
 
 	frappe.init(site=site, new_site=True)
 
+	if source_sql:
+		source_sql = extract_sql_from_archive(source_sql)
+
 	_new_site(
 		db_name,
 		site,