diff --git a/heat/engine/cfn/template.py b/heat/engine/cfn/template.py
index d249a6f325..edeb543d18 100644
--- a/heat/engine/cfn/template.py
+++ b/heat/engine/cfn/template.py
@@ -130,7 +130,7 @@ class CfnTemplate(template.Template):
                     'list or string', allowed_keys, name, data)
                 self.validate_resource_key_type(
                     RES_DELETION_POLICY,
-                    six.string_types,
+                    (six.string_types, function.Function),
                     'string', allowed_keys, name, data)
                 self.validate_resource_key_type(
                     RES_UPDATE_POLICY,
@@ -153,9 +153,10 @@ class CfnTemplate(template.Template):
             if isinstance(depends, six.string_types):
                 depends = [depends]
 
-            deletion_policy = data.get(RES_DELETION_POLICY)
+            deletion_policy = function.resolve(data.get(RES_DELETION_POLICY))
             if deletion_policy is not None:
-                if deletion_policy not in self.deletion_policies:
+                if deletion_policy not in six.iterkeys(
+                        self.deletion_policies):
                     msg = _('Invalid deletion policy "%s"') % deletion_policy
                     raise exception.StackValidationFailed(message=msg)
                 else:
diff --git a/heat/engine/hot/template.py b/heat/engine/hot/template.py
index 34a4fae790..44e68bf48f 100644
--- a/heat/engine/hot/template.py
+++ b/heat/engine/hot/template.py
@@ -235,7 +235,7 @@ class HOTemplate20130523(template.Template):
                     'list or string', allowed_keys, name, data)
                 self.validate_resource_key_type(
                     RES_DELETION_POLICY,
-                    six.string_types,
+                    (six.string_types, function.Function),
                     'string', allowed_keys, name, data)
                 self.validate_resource_key_type(
                     RES_UPDATE_POLICY,
@@ -256,9 +256,10 @@ class HOTemplate20130523(template.Template):
         if isinstance(depends, six.string_types):
             depends = [depends]
 
-        deletion_policy = data.get(RES_DELETION_POLICY)
+        deletion_policy = function.resolve(data.get(RES_DELETION_POLICY))
         if deletion_policy is not None:
-            if deletion_policy not in HOTemplate20130523.deletion_policies:
+            if deletion_policy not in six.iterkeys(
+                    HOTemplate20130523.deletion_policies):
                 msg = _('Invalid deletion policy "%s"') % deletion_policy
                 raise exception.StackValidationFailed(message=msg)
             else:
diff --git a/heat/tests/test_stack.py b/heat/tests/test_stack.py
index f6cded3e2b..56e4d7012a 100644
--- a/heat/tests/test_stack.py
+++ b/heat/tests/test_stack.py
@@ -1977,29 +1977,85 @@ class StackTest(common.HeatTestCase):
     def test_incorrect_deletion_policy(self):
         tmpl = template_format.parse("""
         HeatTemplateFormatVersion: '2012-12-12'
+        Parameters:
+          Deletion_Policy:
+            Type: String
+            Default: [1, 2]
         Resources:
           AResource:
             Type: ResourceWithPropsType
-            DeletionPolicy: wibble
+            DeletionPolicy: {Ref: Deletion_Policy}
             Properties:
               Foo: abc
         """)
+
         self.stack = stack.Stack(self.ctx, 'stack_bad_delpol',
                                  template.Template(tmpl))
 
         ex = self.assertRaises(exception.StackValidationFailed,
                                self.stack.validate)
 
-        self.assertIn('Invalid deletion policy "wibble"',
+        self.assertIn('Invalid deletion policy "[1, 2]"',
                       six.text_type(ex))
 
+    def test_deletion_policy_apply_ref(self):
+        tmpl = template_format.parse("""
+        HeatTemplateFormatVersion: '2012-12-12'
+        Parameters:
+          Deletion_Policy:
+            Type: String
+            Default: Delete
+        Resources:
+          AResource:
+            Type: ResourceWithPropsType
+            DeletionPolicy: wibble
+            Properties:
+              Foo: abc
+            DeletionPolicy: {Ref: Deletion_Policy}
+        """)
+
+        self.stack = stack.Stack(self.ctx, 'stack_delpol_get_param',
+                                 template.Template(tmpl))
+        self.stack.validate()
+        self.stack.store()
+        self.stack.create()
+        self.assertEqual((self.stack.CREATE, self.stack.COMPLETE),
+                         self.stack.state)
+
+    def test_deletion_policy_apply_get_param(self):
+        tmpl = template_format.parse("""
+        heat_template_version: 2016-04-08
+        parameters:
+          deletion_policy:
+            type: string
+            default: Delete
+        resources:
+          AResource:
+            type: ResourceWithPropsType
+            deletion_policy: {get_param: deletion_policy}
+            properties:
+              Foo: abc
+        """)
+
+        self.stack = stack.Stack(self.ctx, 'stack_delpol_get_param',
+                                 template.Template(tmpl))
+        self.stack.validate()
+        self.stack.store()
+        self.stack.create()
+        self.assertEqual((self.stack.CREATE, self.stack.COMPLETE),
+                         self.stack.state)
+
     def test_incorrect_deletion_policy_hot(self):
         tmpl = template_format.parse("""
         heat_template_version: 2013-05-23
+        parameters:
+          deletion_policy:
+            type: string
+            default: [1, 2]
         resources:
           AResource:
             type: ResourceWithPropsType
-            deletion_policy: wibble
+            deletion_policy: {get_param: deletion_policy}
             properties:
               Foo: abc
         """)
@@ -2009,7 +2065,7 @@ class StackTest(common.HeatTestCase):
         ex = self.assertRaises(exception.StackValidationFailed,
                                self.stack.validate)
 
-        self.assertIn('Invalid deletion policy "wibble"',
+        self.assertIn('Invalid deletion policy "[1, 2]',
                       six.text_type(ex))
 
     def test_incorrect_outputs_hot_get_attr(self):