diff --git a/cmd/helm/template_test.go b/cmd/helm/template_test.go
index 8fb8292e2..1f488117f 100644
--- a/cmd/helm/template_test.go
+++ b/cmd/helm/template_test.go
@@ -131,6 +131,11 @@ func TestTemplateCmd(t *testing.T) {
 			cmd:    fmt.Sprintf(`template '%s' --skip-tests`, chartPath),
 			golden: "output/template-skip-tests.txt",
 		},
+		{
+			name:   "chart with values as a directory",
+			cmd:    fmt.Sprintf("template '%s' -f %s", "testdata/testcharts/chart-with-values-directory", "testdata/testcharts/chart-with-values-directory/values"),
+			golden: "output/template-with-values-directory.txt",
+		},
 	}
 	runTestCmd(t, tests)
 }
diff --git a/cmd/helm/testdata/output/template-with-values-directory.txt b/cmd/helm/testdata/output/template-with-values-directory.txt
new file mode 100644
index 000000000..614d7752c
--- /dev/null
+++ b/cmd/helm/testdata/output/template-with-values-directory.txt
@@ -0,0 +1,17 @@
+---
+# Source: chart-with-values-directory/templates/service.yaml
+apiVersion: v1
+kind: Service
+metadata:
+  name: chart-with-values-directory
+  labels:
+    helm.sh/chart: "chart-with-values-directory-0.1.0"
+spec:
+  type: ClusterIP
+  ports:
+  - port: 80
+    targetPort: 80
+    protocol: TCP
+    name: apache
+  selector:
+    app.kubernetes.io/name: chart-with-values-directory
diff --git a/cmd/helm/testdata/testcharts/chart-with-values-directory/Chart.yaml b/cmd/helm/testdata/testcharts/chart-with-values-directory/Chart.yaml
new file mode 100644
index 000000000..3c586bf32
--- /dev/null
+++ b/cmd/helm/testdata/testcharts/chart-with-values-directory/Chart.yaml
@@ -0,0 +1,4 @@
+apiVersion: v1
+description: A Helm chart for Kubernetes
+name: chart-with-values-directory
+version: 0.1.0
diff --git a/cmd/helm/testdata/testcharts/chart-with-values-directory/templates/service.yaml b/cmd/helm/testdata/testcharts/chart-with-values-directory/templates/service.yaml
new file mode 100644
index 000000000..27501e1e0
--- /dev/null
+++ b/cmd/helm/testdata/testcharts/chart-with-values-directory/templates/service.yaml
@@ -0,0 +1,15 @@
+apiVersion: v1
+kind: Service
+metadata:
+  name: {{ .Chart.Name }}
+  labels:
+    helm.sh/chart: "{{ .Chart.Name }}-{{ .Chart.Version }}"
+spec:
+  type: {{ .Values.service.type }}
+  ports:
+  - port: {{ .Values.service.externalPort }}
+    targetPort: {{ .Values.service.internalPort }}
+    protocol: TCP
+    name: {{ .Values.service.name }}
+  selector:
+    app.kubernetes.io/name: {{ .Chart.Name }}
diff --git a/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values1.yaml b/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values1.yaml
new file mode 100644
index 000000000..e40795666
--- /dev/null
+++ b/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values1.yaml
@@ -0,0 +1,3 @@
+service:
+  type: ClusterIP
+  externalPort: 80
diff --git a/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values2.yaml b/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values2.yaml
new file mode 100644
index 000000000..e261f5591
--- /dev/null
+++ b/cmd/helm/testdata/testcharts/chart-with-values-directory/values/values2.yaml
@@ -0,0 +1,3 @@
+service:
+  name: apache
+  internalPort: 80
diff --git a/pkg/cli/values/options.go b/pkg/cli/values/options.go
index e6ad71767..5a9d422d9 100644
--- a/pkg/cli/values/options.go
+++ b/pkg/cli/values/options.go
@@ -20,6 +20,7 @@ import (
 	"io/ioutil"
 	"net/url"
 	"os"
+	"path/filepath"
 	"strings"
 
 	"github.com/pkg/errors"
@@ -43,18 +44,32 @@ func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, er
 
 	// User specified a values files via -f/--values
 	for _, filePath := range opts.ValueFiles {
-		currentMap := map[string]interface{}{}
-
-		bytes, err := readFile(filePath, p)
+		isDir, err := isDirectory(filePath)
 		if err != nil {
 			return nil, err
 		}
+		if isDir {
+			files, err := ioutil.ReadDir(filePath)
+			if err != nil {
+				return nil, err
+			}
 
-		if err := yaml.Unmarshal(bytes, &currentMap); err != nil {
-			return nil, errors.Wrapf(err, "failed to parse %s", filePath)
+			for _, file := range files {
+				currentMap, err := unmarshallYaml(filepath.Join(filePath, file.Name()), p)
+				if err != nil {
+					return nil, err
+				}
+				// Merge with the previous map
+				base = mergeMaps(base, currentMap)
+			}
+		} else {
+			currentMap, err := unmarshallYaml(filePath, p)
+			if err != nil {
+				return nil, err
+			}
+			// Merge with the previous map
+			base = mergeMaps(base, currentMap)
 		}
-		// Merge with the previous map
-		base = mergeMaps(base, currentMap)
 	}
 
 	// User specified a value via --set
@@ -85,6 +100,31 @@ func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, er
 	return base, nil
 }
 
+func isDirectory(filePath string) (bool, error) {
+	if strings.TrimSpace(filePath) == "-" {
+		return false, nil
+	}
+
+	fileInfo, err := os.Stat(filePath)
+	if err != nil {
+		return false, err
+	}
+	return fileInfo.Mode().IsDir(), nil
+}
+
+func unmarshallYaml(filePath string, p getter.Providers) (map[string]interface{}, error) {
+	currentMap := map[string]interface{}{}
+	bytes, err := readFile(filePath, p)
+	if err != nil {
+		return nil, err
+	}
+
+	if err := yaml.Unmarshal(bytes, &currentMap); err != nil {
+		return nil, errors.Wrapf(err, "failed to parse %s", filePath)
+	}
+	return currentMap, nil
+}
+
 func mergeMaps(a, b map[string]interface{}) map[string]interface{} {
 	out := make(map[string]interface{}, len(a))
 	for k, v := range a {