diff --git a/tripleoclient/constants.py b/tripleoclient/constants.py
index 772f369ec..8d1f94888 100644
--- a/tripleoclient/constants.py
+++ b/tripleoclient/constants.py
@@ -192,6 +192,10 @@ DEPLOY_ANSIBLE_ACTIONS = {
         'playbook': 'upgrade_steps_playbook.yaml',
         'skip_tags': 'validation'
     },
+    'system-upgrade': {
+        'playbook': 'upgrade_steps_playbook.yaml',
+        'tags': 'system_upgrade'
+    },
     'post-upgrade': {
         'playbook': 'post_upgrade_steps_playbook.yaml',
         'skip_tags': 'validation'
diff --git a/tripleoclient/v1/tripleo_deploy.py b/tripleoclient/v1/tripleo_deploy.py
index 8b6dafccc..c3e097a95 100644
--- a/tripleoclient/v1/tripleo_deploy.py
+++ b/tripleoclient/v1/tripleo_deploy.py
@@ -915,6 +915,9 @@ class Deploy(command.Command):
                                    "--standalone. "))
         parser.add_argument('--upgrade', default=False, action='store_true',
                             help=_("Upgrade an existing deployment."))
+        parser.add_argument('--system-upgrade', default=False,
+                            action='store_true',
+                            help=_("System-upgrade an existing deployment."))
         parser.add_argument('-y', '--yes', default=False, action='store_true',
                             help=_("Skip yes/no prompt (assume yes)."))
         parser.add_argument('--stack',
@@ -1317,14 +1320,20 @@ class Deploy(command.Command):
                 self._kill_heat(parsed_args)
             if not parsed_args.output_only:
                 operations = list()
-                if parsed_args.upgrade:
-                    # Run Upgrade tasks before the deployment
+                if parsed_args.system_upgrade:
+                    # Run System Upgrade tasks before the deployment
                     operations.append(
-                        constants.DEPLOY_ANSIBLE_ACTIONS['upgrade']
+                        constants.DEPLOY_ANSIBLE_ACTIONS['system-upgrade']
+                    )
+                else:
+                    if parsed_args.upgrade:
+                        # Run Upgrade tasks before the deployment
+                        operations.append(
+                            constants.DEPLOY_ANSIBLE_ACTIONS['upgrade']
+                        )
+                    operations.append(
+                        constants.DEPLOY_ANSIBLE_ACTIONS['deploy']
                     )
-                operations.append(
-                    constants.DEPLOY_ANSIBLE_ACTIONS['deploy']
-                )
                 if parsed_args.upgrade:
                     # Run Post Upgrade tasks after the deployment
                     operations.append(
diff --git a/tripleoclient/v1/undercloud.py b/tripleoclient/v1/undercloud.py
index eb2aaaebd..abcd2c532 100644
--- a/tripleoclient/v1/undercloud.py
+++ b/tripleoclient/v1/undercloud.py
@@ -194,6 +194,14 @@ class UpgradeUndercloud(InstallUndercloud):
                             help=_("Flag to skip the package update when "
                                    "performing upgrades and updates"),
                             )
+        parser.add_argument(
+            '--system-upgrade',
+            dest='system_upgrade',
+            action='store',
+            default=None,
+            help=_("Run system upgrade while using "
+                   "provided environment yaml file."),
+        )
         return parser
 
     def _update_extra_packages(self, packages=[], dry_run=False):
@@ -218,6 +226,7 @@ class UpgradeUndercloud(InstallUndercloud):
         cmd = undercloud_config.\
             prepare_undercloud_deploy(
                 upgrade=True,
+                system_upgrade=parsed_args.system_upgrade,
                 yes=parsed_args.yes,
                 no_validations=parsed_args.
                 no_validations,
diff --git a/tripleoclient/v1/undercloud_config.py b/tripleoclient/v1/undercloud_config.py
index 9e8f64325..005e8f5f6 100644
--- a/tripleoclient/v1/undercloud_config.py
+++ b/tripleoclient/v1/undercloud_config.py
@@ -436,6 +436,7 @@ def _process_chrony_acls(env):
 
 
 def prepare_undercloud_deploy(upgrade=False, no_validations=True,
+                              system_upgrade=None,
                               verbose_level=1, yes=False,
                               force_stack_update=False, dry_run=False,
                               inflight=False,
@@ -822,6 +823,9 @@ def prepare_undercloud_deploy(upgrade=False, no_validations=True,
     if reproducer:
         deploy_args.append('--reproduce-command')
 
+    if system_upgrade:
+        deploy_args += ['--system-upgrade', '-e', system_upgrade]
+
     if disable_container_prepare:
         deploy_args.append('--disable-container-prepare')