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I've installed Android SDK and Eclipse IDE. The Eclipse is supposed to recognise the new Android SDK and be able to create a new Android project. But when I click on new project, the option does not appear.

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Open the settings, find the android section and make sure the directory is correctly pointing to your Android sdk folder.

Like so

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You need to install ADT plugin for Eclipse IDE. Pls refer instructions here.

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Go to File > New > Project....

The option to create a new Android Project can be found under "Android" header.

It doesnt usually appear in the beginning I dunno why!

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Please make sure the ADT is setup. You can find the installation instructions here. Then configure the SDK starter package in eclipse using following steps

  1. Select Window > Preferences... to open the Preferences panel (Mac OS X: Eclipse > Preferences).
  2. Select Android from the left panel.
  3. You may see a dialog asking whether you want to send usage statistics to Google. If so, make your choice and click Proceed. You cannot continue with this procedure until you click Proceed.
  4. For the SDK Location in the main panel, click Browse... and locate your downloaded SDK directory. Click Apply, then OK.

After this is done get the packages from the Android SDK manager. Refer to this link for more details Adding SDK components

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