diff --git a/heatclient/common/template_utils.py b/heatclient/common/template_utils.py
index bd54c9de..cdc71ccd 100644
--- a/heatclient/common/template_utils.py
+++ b/heatclient/common/template_utils.py
@@ -14,6 +14,7 @@
 #    under the License.
 
 import os
+import six
 import urllib
 
 from heatclient.common import environment_format
@@ -46,28 +47,60 @@ def get_template_contents(template_file=None, template_url=None,
                                % template_url)
 
     try:
-        return template_format.parse(tpl)
+        template = template_format.parse(tpl)
     except ValueError as e:
         raise exc.CommandError(
             'Error parsing template %s %s' % (template_url, e))
 
+    files = {}
+    tmpl_base_url = base_url_for_url(template_url)
+    resolve_template_get_files(template, files, tmpl_base_url)
+    return files, template
 
-def get_file_contents(from_dict, files, base_url=None,
-                      ignore_if=None):
-    for key, value in iter(from_dict.items()):
-        if ignore_if and ignore_if(key, value):
-            continue
 
-        if base_url and not base_url.endswith('/'):
-            base_url = base_url + '/'
+def resolve_template_get_files(template, files, template_base_url):
 
-        str_url = urlutils.urljoin(base_url, value)
-        try:
-            files[str_url] = urlutils.urlopen(str_url).read()
-        except urlutils.URLError:
-            raise exc.CommandError('Could not fetch %s from the environment'
-                                   % str_url)
-        from_dict[key] = str_url
+    def ignore_if(key, value):
+        if key != 'get_file':
+            return True
+        if not isinstance(value, six.string_types):
+            return True
+
+    def recurse_if(value):
+        return isinstance(value, (dict, list))
+
+    get_file_contents(template.get('resources'), files, template_base_url,
+                      ignore_if, recurse_if)
+
+
+def get_file_contents(from_data, files, base_url=None,
+                      ignore_if=None, recurse_if=None):
+
+    if recurse_if and recurse_if(from_data):
+        if isinstance(from_data, dict):
+            recurse_data = from_data.itervalues()
+        else:
+            recurse_data = from_data
+        for value in recurse_data:
+            get_file_contents(value, files, base_url, ignore_if, recurse_if)
+
+    if isinstance(from_data, dict):
+        for key, value in iter(from_data.items()):
+            if ignore_if and ignore_if(key, value):
+                continue
+
+            if base_url and not base_url.endswith('/'):
+                base_url = base_url + '/'
+
+            str_url = urlutils.urljoin(base_url, value)
+            try:
+                files[str_url] = urlutils.urlopen(str_url).read()
+            except urlutils.URLError:
+                raise exc.CommandError('Could not fetch contents for %s'
+                                       % str_url)
+
+            # replace the data value with the normalised absolute URL
+            from_data[key] = str_url
 
 
 def base_url_for_url(url):
@@ -83,22 +116,21 @@ def normalise_file_path_to_url(path):
     return urlutils.urljoin('file:', urllib.pathname2url(path))
 
 
-def process_environment_and_files(env_path=None, template_path=None):
+def process_environment_and_files(env_path=None, template=None,
+                                  template_url=None):
     files = {}
     env = {}
 
-    if not env_path:
-        return files, env
+    if env_path:
+        env_url = normalise_file_path_to_url(env_path)
+        env_base_url = base_url_for_url(env_url)
+        raw_env = urlutils.urlopen(env_url).read()
+        env = environment_format.parse(raw_env)
 
-    env_url = normalise_file_path_to_url(env_path)
-    env_base_url = base_url_for_url(env_url)
-    raw_env = urlutils.urlopen(env_url).read()
-    env = environment_format.parse(raw_env)
-
-    resolve_environment_urls(
-        env.get('resource_registry'),
-        files,
-        env_base_url)
+        resolve_environment_urls(
+            env.get('resource_registry'),
+            files,
+            env_base_url)
 
     return files, env
 
diff --git a/heatclient/tests/test_template_utils.py b/heatclient/tests/test_template_utils.py
index 2b9b2ae3..2b2fce1e 100644
--- a/heatclient/tests/test_template_utils.py
+++ b/heatclient/tests/test_template_utils.py
@@ -269,9 +269,10 @@ class TestGetTemplateContents(testtools.TestCase):
             tmpl_file.write(tmpl)
             tmpl_file.flush()
 
-            tmpl_parsed = template_utils.get_template_contents(
+            files, tmpl_parsed = template_utils.get_template_contents(
                 tmpl_file.name)
             self.assertEqual({"foo": "bar"}, tmpl_parsed)
+            self.assertEqual({}, files)
 
     def test_get_template_contents_file_empty(self):
         with tempfile.NamedTemporaryFile() as tmpl_file:
@@ -316,8 +317,10 @@ class TestGetTemplateContents(testtools.TestCase):
         urlutils.urlopen(url).AndReturn(six.StringIO(tmpl))
         self.m.ReplayAll()
 
-        tmpl_parsed = template_utils.get_template_contents(template_url=url)
+        files, tmpl_parsed = template_utils.get_template_contents(
+            template_url=url)
         self.assertEqual({"foo": "bar"}, tmpl_parsed)
+        self.assertEqual({}, files)
 
     def test_get_template_contents_object(self):
         tmpl = '{"foo": "bar"}'
@@ -332,14 +335,109 @@ class TestGetTemplateContents(testtools.TestCase):
             self.assertEqual('http://no.where/path/to/a.yaml', object_url)
             return tmpl
 
-        tmpl_parsed = template_utils.get_template_contents(
+        files, tmpl_parsed = template_utils.get_template_contents(
             template_object=url,
             object_request=object_request)
 
         self.assertEqual({"foo": "bar"}, tmpl_parsed)
+        self.assertEqual({}, files)
         self.assertTrue(self.object_requested)
 
 
+class TestTemplateGetFileFunctions(testtools.TestCase):
+
+    hot_template = '''heat_template_version: 2013-05-23
+resources:
+  resource1:
+    type: type1
+    properties:
+      foo: {get_file: foo.yaml}
+      bar:
+        get_file:
+          'http://localhost/bar.yaml'
+  resource2:
+    type: type1
+    properties:
+      baz:
+      - {get_file: baz/baz1.yaml}
+      - {get_file: baz/baz2.yaml}
+      - {get_file: baz/baz3.yaml}
+      ignored_list: {get_file: [ignore, me]}
+      ignored_dict: {get_file: {ignore: me}}
+      ignored_none: {get_file: }
+    '''
+
+    def setUp(self):
+        super(TestTemplateGetFileFunctions, self).setUp()
+        self.m = mox.Mox()
+
+        self.addCleanup(self.m.VerifyAll)
+        self.addCleanup(self.m.UnsetStubs)
+
+    def test_hot_template(self):
+        self.m.StubOutWithMock(urlutils, 'urlopen')
+
+        tmpl_file = '/home/my/dir/template.yaml'
+        url = 'file:///home/my/dir/template.yaml'
+        urlutils.urlopen(url).AndReturn(
+            six.StringIO(self.hot_template))
+        urlutils.urlopen(
+            'http://localhost/bar.yaml').InAnyOrder().AndReturn(
+                six.StringIO('bar contents'))
+        urlutils.urlopen(
+            'file:///home/my/dir/foo.yaml').InAnyOrder().AndReturn(
+                six.StringIO('foo contents'))
+        urlutils.urlopen(
+            'file:///home/my/dir/baz/baz1.yaml').InAnyOrder().AndReturn(
+                six.StringIO('baz1 contents'))
+        urlutils.urlopen(
+            'file:///home/my/dir/baz/baz2.yaml').InAnyOrder().AndReturn(
+                six.StringIO('baz2 contents'))
+        urlutils.urlopen(
+            'file:///home/my/dir/baz/baz3.yaml').InAnyOrder().AndReturn(
+                six.StringIO('baz3 contents'))
+
+        self.m.ReplayAll()
+
+        files, tmpl_parsed = template_utils.get_template_contents(
+            template_file=tmpl_file)
+
+        self.assertEqual({
+            'http://localhost/bar.yaml': 'bar contents',
+            'file:///home/my/dir/foo.yaml': 'foo contents',
+            'file:///home/my/dir/baz/baz1.yaml': 'baz1 contents',
+            'file:///home/my/dir/baz/baz2.yaml': 'baz2 contents',
+            'file:///home/my/dir/baz/baz3.yaml': 'baz3 contents',
+        }, files)
+        self.assertEqual({
+            'heat_template_version': '2013-05-23',
+            'resources': {
+                'resource1': {
+                    'type': 'type1',
+                    'properties': {
+                        'bar': {'get_file': 'http://localhost/bar.yaml'},
+                        'foo': {'get_file': 'file:///home/my/dir/foo.yaml'},
+                    },
+                },
+                'resource2': {
+                    'type': 'type1',
+                    'properties': {
+                        'baz': [
+                            {'get_file': 'file:///home/my/dir/baz/baz1.yaml'},
+                            {'get_file': 'file:///home/my/dir/baz/baz2.yaml'},
+                            {'get_file': 'file:///home/my/dir/baz/baz3.yaml'},
+                        ],
+                        'ignored_list': {'get_file': ['ignore', 'me']},
+                        'ignored_dict': {'get_file': {'ignore': 'me'}},
+                        'ignored_none': {'get_file': None},
+                    },
+                }
+            }
+        }, tmpl_parsed)
+
+        self.m.VerifyAll()
+
+
 class TestURLFunctions(testtools.TestCase):
 
     def setUp(self):
diff --git a/heatclient/v1/shell.py b/heatclient/v1/shell.py
index 91f1a97e..11b22fa6 100644
--- a/heatclient/v1/shell.py
+++ b/heatclient/v1/shell.py
@@ -24,7 +24,7 @@ import heatclient.exc as exc
 
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-u', '--template-url', metavar='<URL>',
            help='URL of template.')
@@ -49,7 +49,7 @@ def do_create(hc, args):
 
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-u', '--template-url', metavar='<URL>',
            help='URL of template.')
@@ -69,7 +69,12 @@ def do_create(hc, args):
            help='Name of the stack to create.')
 def do_stack_create(hc, args):
     '''Create the stack.'''
-    files, env = template_utils.process_environment_and_files(
+    tpl_files, template = template_utils.get_template_contents(
+        args.template_file,
+        args.template_url,
+        args.template_object,
+        hc.http_client.raw_request)
+    env_files, env = template_utils.process_environment_and_files(
         env_path=args.environment_file)
 
     fields = {
@@ -77,12 +82,8 @@ def do_stack_create(hc, args):
         'timeout_mins': args.create_timeout,
         'disable_rollback': not(args.enable_rollback),
         'parameters': utils.format_parameters(args.parameters),
-        'template': template_utils.get_template_contents(
-            args.template_file,
-            args.template_url,
-            args.template_object,
-            hc.http_client.raw_request),
-        'files': files,
+        'template': template,
+        'files': dict(tpl_files.items() + env_files.items()),
         'environment': env
     }
 
@@ -171,7 +172,7 @@ def do_stack_show(hc, args):
 
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-u', '--template-url', metavar='<URL>',
            help='URL of template.')
@@ -191,7 +192,7 @@ def do_update(hc, args):
 
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-u', '--template-url', metavar='<URL>',
            help='URL of template.')
@@ -206,18 +207,21 @@ def do_update(hc, args):
            help='Name or ID of stack to update.')
 def do_stack_update(hc, args):
     '''Update the stack.'''
-    files, env = template_utils.process_environment_and_files(
+
+    tpl_files, template = template_utils.get_template_contents(
+        args.template_file,
+        args.template_url,
+        args.template_object,
+        hc.http_client.raw_request)
+
+    env_files, env = template_utils.process_environment_and_files(
         env_path=args.environment_file)
 
     fields = {
         'stack_id': args.id,
         'parameters': utils.format_parameters(args.parameters),
-        'template': template_utils.get_template_contents(
-            args.template_file,
-            args.template_url,
-            args.template_object,
-            hc.http_client.raw_request),
-        'files': files,
+        'template': template,
+        'files': dict(tpl_files.items() + env_files.items()),
         'environment': env
     }
 
@@ -285,7 +289,7 @@ def do_template_show(hc, args):
            help='URL of template.')
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-o', '--template-object', metavar='<URL>',
            help='URL to retrieve template object (e.g from swift)')
@@ -303,7 +307,7 @@ def do_validate(hc, args):
            help='URL of template.')
 @utils.arg('-f', '--template-file', metavar='<FILE>',
            help='Path to the template.')
-@utils.arg('-e', '--environment-file', metavar='<FILE>',
+@utils.arg('-e', '--environment-file', metavar='<FILE or URL>',
            help='Path to the environment.')
 @utils.arg('-o', '--template-object', metavar='<URL>',
            help='URL to retrieve template object (e.g from swift)')
@@ -314,16 +318,19 @@ def do_validate(hc, args):
            action='append')
 def do_template_validate(hc, args):
     '''Validate a template with parameters.'''
-    files, env = template_utils.process_environment_and_files(
+
+    tpl_files, template = template_utils.get_template_contents(
+        args.template_file,
+        args.template_url,
+        args.template_object,
+        hc.http_client.raw_request)
+
+    env_files, env = template_utils.process_environment_and_files(
         env_path=args.environment_file)
     fields = {
         'parameters': utils.format_parameters(args.parameters),
-        'template': template_utils.get_template_contents(
-            args.template_file,
-            args.template_url,
-            args.template_object,
-            hc.http_client.raw_request),
-        'files': files,
+        'template': template,
+        'files': dict(tpl_files.items() + env_files.items()),
         'environment': env
     }