diff --git a/hot/software-config/elements/heat-config-puppet/README.rst b/hot/software-config/elements/heat-config-puppet/README.rst
index 26225625..5cae8620 100644
--- a/hot/software-config/elements/heat-config-puppet/README.rst
+++ b/hot/software-config/elements/heat-config-puppet/README.rst
@@ -1,3 +1,9 @@
 A hook which invokes ``puppet apply`` on the provided configuration.
-Config inputs are passed in as facts, and output values are read from written-out
-files.
\ No newline at end of file
+
+Config inputs are passed in as facts and/or using hiera, and output values
+are read from written-out files.
+
+Hook Options:
+-------------
+  use_facter: default True. Set to True to pass puppet inputs via Facter
+  use_hiera: default False. Set to True to pass puppet inputs via Hiera
diff --git a/hot/software-config/elements/heat-config-puppet/install.d/hook-puppet.py b/hot/software-config/elements/heat-config-puppet/install.d/hook-puppet.py
index ec4a7866..0171e1f3 100755
--- a/hot/software-config/elements/heat-config-puppet/install.d/hook-puppet.py
+++ b/hot/software-config/elements/heat-config-puppet/install.d/hook-puppet.py
@@ -23,6 +23,8 @@ WORKING_DIR = os.environ.get('HEAT_PUPPET_WORKING',
 OUTPUTS_DIR = os.environ.get('HEAT_PUPPET_OUTPUTS',
                              '/var/run/heat-config/heat-config-puppet')
 PUPPET_CMD = os.environ.get('HEAT_PUPPET_CMD', 'puppet')
+HIERA_DATADIR = os.environ.get('HEAT_PUPPET_HIERA_DATADIR',
+                               '/etc/puppet/hieradata')
 
 
 def prepare_dir(path):
@@ -45,11 +47,29 @@ def main(argv=sys.argv):
 
     c = json.load(sys.stdin)
 
+    use_hiera = c['options'].get('enable_hiera', False)
+    use_facter = c['options'].get('enable_facter', True)
+
     facts = {}
+    hiera = {}
+
     for input in c['inputs']:
         input_name = input['name']
-        fact_name = 'FACTER_%s' % input_name
-        facts[fact_name] = input.get('value', '')
+        input_value = input.get('value', '')
+        if use_facter:
+            fact_name = 'FACTER_%s' % input_name
+            facts[fact_name] = input_value
+        if use_hiera:
+            hiera[input_name] = input_value
+
+    if use_hiera:
+        prepare_dir(HIERA_DATADIR)
+        hiera_data = os.path.join(HIERA_DATADIR,
+                                  'heat_config_%s.json' % c['name'])
+        with os.fdopen(os.open(hiera_data, os.O_CREAT | os.O_WRONLY, 0o600),
+                       'w') as hiera_file:
+            hiera_file.write(json.dumps(hiera).encode('utf8'))
+        facts['FACTER_deploy_config_name'] = c['name']
 
     fn = os.path.join(WORKING_DIR, '%s.pp' % c['id'])
     heat_outputs_path = os.path.join(OUTPUTS_DIR, c['id'])
diff --git a/tests/software_config/test_hook_puppet.py b/tests/software_config/test_hook_puppet.py
index a7f25344..16ec2f3c 100644
--- a/tests/software_config/test_hook_puppet.py
+++ b/tests/software_config/test_hook_puppet.py
@@ -23,7 +23,12 @@ class HookPuppetTest(common.RunScriptTest):
 
     data = {
         'id': '1234',
+        'name': 'fake_resource_name',
         'group': 'puppet',
+        'options': {
+            'enable_hiera': True,
+            'enable_facter': True,
+        },
         'inputs': [
             {'name': 'foo', 'value': 'bar'},
             {'name': 'another', 'value': 'input'}
@@ -49,12 +54,14 @@ class HookPuppetTest(common.RunScriptTest):
 
         self.working_dir = self.useFixture(fixtures.TempDir())
         self.outputs_dir = self.useFixture(fixtures.TempDir())
+        self.hiera_datadir = self.useFixture(fixtures.TempDir())
         self.test_state_path = self.outputs_dir.join('test_state.json')
 
         self.env = os.environ.copy()
         self.env.update({
             'HEAT_PUPPET_WORKING': self.working_dir.join(),
             'HEAT_PUPPET_OUTPUTS': self.outputs_dir.join(),
+            'HEAT_PUPPET_HIERA_DATADIR': self.hiera_datadir.join(),
             'HEAT_PUPPET_CMD': self.fake_tool_path,
             'TEST_STATE_PATH': self.test_state_path,
         })
@@ -137,3 +144,50 @@ class HookPuppetTest(common.RunScriptTest):
                          state['env']['FACTER_heat_outputs_path'])
         with open(puppet_script) as f:
             self.assertEqual('the puppet script', f.read())
+
+    def test_hook_hiera(self):
+
+        self.env.update({
+            'TEST_RESPONSE': json.dumps({
+                'stdout': 'puppet success',
+                'stderr': 'thing happened',
+                'files': {
+                    self.outputs_dir.join('1234.first_output'): 'output 1',
+                    self.outputs_dir.join('1234.second_output'): 'output 2',
+                }
+            }),
+        })
+        returncode, stdout, stderr = self.run_cmd(
+            [self.hook_path], self.env, json.dumps(self.data))
+
+        self.assertEqual(0, returncode, stderr)
+        self.assertEqual({
+            'deploy_stdout': 'puppet success',
+            'deploy_stderr': 'thing happened',
+            'deploy_status_code': 0,
+            'first_output': 'output 1',
+            'second_output': 'output 2',
+        }, json.loads(stdout))
+
+        state = self.json_from_file(self.test_state_path)
+        puppet_script = self.working_dir.join('1234.pp')
+        hiera_datafile = self.hiera_datadir.join('heat_config_%s.json'
+                                                 % self.data['name'])
+        self.assertEqual(
+            [
+                self.fake_tool_path,
+                'apply',
+                '--detailed-exitcodes',
+                puppet_script
+            ],
+            state['args'])
+
+        self.assertEqual(self.outputs_dir.join('1234'),
+                         state['env']['FACTER_heat_outputs_path'])
+        with open(puppet_script) as f:
+            self.assertEqual('the puppet script', f.read())
+        with open(hiera_datafile) as f:
+            self.assertEqual({
+                'foo': 'bar',
+                'another': 'input',
+            }, json.loads(f.read()))