diff --git a/expandybird/Makefile b/expandybird/Makefile
index a79e0d65d..2c7e18b7f 100644
--- a/expandybird/Makefile
+++ b/expandybird/Makefile
@@ -37,6 +37,12 @@ expandybird:
 	go get -v ./...
 	go install -v ./...
 
+test:
+	python expansion/expansion_test.py && \
+	python expansion/schema_validation_test.py && \
+	python expansion/references_test.py
+
+
 clean:
 	-docker rmi $(PREFIX)/$(IMAGE):$(TAG)
 	rm -f expandybird
diff --git a/expandybird/expansion/expansion.py b/expandybird/expansion/expansion.py
index ef012f90d..447a8a219 100755
--- a/expandybird/expansion/expansion.py
+++ b/expandybird/expansion/expansion.py
@@ -25,19 +25,22 @@ import yaml
 
 from sandbox_loader import FileAccessRedirector
 
+import references
 import schema_validation
 
 
-def Expand(config, imports=None, env=None, validate_schema=False):
+def Expand(config, imports=None, env=None, validate_schema=False,
+    outputs=False):
   """Expand the configuration with imports.
 
   Args:
     config: string, the raw config to be expanded.
     imports: map from import file name, e.g. "helpers/constants.py" to
-        its contents.
+        map containing 'path' and 'content'.
     env: map from string to string, the map of environment variable names
         to their values
     validate_schema: True to run schema validation; False otherwise
+    outputs: True to process output values; False otherwise
   Returns:
     YAML containing the expanded configuration and its layout, in the following
     format:
@@ -52,13 +55,13 @@ def Expand(config, imports=None, env=None, validate_schema=False):
   """
   try:
     return _Expand(config, imports=imports, env=env,
-                   validate_schema=validate_schema)
+                   validate_schema=validate_schema, outputs=outputs)
   except Exception as e:
-    # print traceback.format_exc()
     raise ExpansionError('config', str(e))
 
 
-def _Expand(config, imports=None, env=None, validate_schema=False):
+def _Expand(config, imports=None, env=None, validate_schema=False,
+            outputs=False):
   """Expand the configuration with imports."""
 
   FileAccessRedirector.redirect(imports)
@@ -77,7 +80,7 @@ def _Expand(config, imports=None, env=None, validate_schema=False):
     raise Exception('Error parsing YAML: %s' % msg)
 
   # Handle empty file case
-  if not yaml_config:
+  if yaml_config is None:
     return ''
 
   # If the configuration does not have ':' in it, the yaml_config will be a
@@ -97,25 +100,29 @@ def _Expand(config, imports=None, env=None, validate_schema=False):
   # Iterate over all the resources to process.
   for resource in yaml_config['resources']:
     processed_resource = _ProcessResource(resource, imports, env,
-                                          validate_schema)
+                                          validate_schema, outputs)
 
     config['resources'].extend(processed_resource['config']['resources'])
     layout['resources'].append(processed_resource['layout'])
 
-  result = {'config': config, 'layout': layout}
+  _ProcessTargetConfig(yaml_config, outputs, config, layout)
+
+  result = {'config': config,
+            'layout': layout}
   return yaml.safe_dump(result, default_flow_style=False)
 
 
-def _ProcessResource(resource, imports, env, validate_schema=False):
+def _ProcessResource(resource, imports, env, validate_schema=False,
+                     outputs=False):
   """Processes a resource and expands if template.
 
   Args:
     resource: the resource to be processed, as a map.
-    imports: map from string to string, the map of imported files names
-        and contents
+    imports: the map of imported files names to path and content
     env: map from string to string, the map of environment variable names
         to their values
     validate_schema: True to run schema validation; False otherwise
+    outputs: True to process output values; False otherwise
   Returns:
     A map containing the layout and configuration of the expanded
     resource and any sub-resources, in the format:
@@ -137,7 +144,7 @@ def _ProcessResource(resource, imports, env, validate_schema=False):
   layout = {'name': resource['name'],
             'type': resource['type']}
 
-  if resource['type'] in imports:
+  if imports and resource['type'] in imports:
     # A template resource, which contains sub-resources.
     expanded_template = ExpandTemplate(resource, imports, env, validate_schema)
 
@@ -147,7 +154,7 @@ def _ProcessResource(resource, imports, env, validate_schema=False):
       # Process all sub-resources of this template.
       for resource_to_process in expanded_template['resources']:
         processed_resource = _ProcessResource(resource_to_process, imports, env,
-                                              validate_schema)
+                                              validate_schema, outputs)
 
         # Append all sub-resources to the config resources, and the resulting
         # layout of sub-resources.
@@ -161,6 +168,9 @@ def _ProcessResource(resource, imports, env, validate_schema=False):
 
         if 'properties' in resource:
           layout['properties'] = resource['properties']
+
+    _ProcessTargetConfig(expanded_template, outputs, config, layout)
+
   else:
     # A normal resource has only itself for config.
     config['resources'] = [resource]
@@ -184,14 +194,101 @@ def _ValidateUniqueNames(template_resources, template_name='config'):
     # If this resource doesn't have a name, we will report that error later
 
 
+def _BuildOutputMap(resource_objs):
+  """Given the layout of an expanded template, return map of its outputs.
+
+  Args:
+    resource_objs: List of resources, some of which might be templates and have
+        outputs.
+
+  Returns:
+    Map of template_name -> output_name -> output_value
+  """
+  output_map = {}
+
+  for resource in resource_objs:
+    if 'outputs' not in resource:
+      continue
+    output_value_map = {}
+    for output_item in resource['outputs']:
+      output_value_map[output_item['name']] = output_item['value']
+    output_map[resource['name']] = output_value_map
+
+  return output_map
+
+
+def _ProcessTargetConfig(target, outputs, config, layout):
+  """Resolves outputs in the output and properties section of the config.
+
+  Args:
+    target: Config that contains unprocessed output values
+    outputs: Values to process
+    config: Config object to update
+    layout: Layout object to update
+  """
+  output_map = None
+  if 'resources' in layout:
+    output_map = _BuildOutputMap(layout['resources'])
+
+  if outputs:
+    if 'outputs' in target and target['outputs']:
+      layout['outputs'] = _ResolveOutputs(target['outputs'], output_map)
+
+    if 'resources' in config and config['resources']:
+      config['resources'] = _ResolveResources(config['resources'], output_map)
+
+
+def _ResolveOutputs(outputs, output_map):
+  """Resolves references in the outputs.
+
+  Args:
+    outputs: List of name,value dicts.
+    output_map: Result of _BuildOutputMap.
+
+  Returns:
+    Outputs with all references resolved.
+  """
+  if not output_map:
+    return outputs
+
+  for i in range(len(outputs)):
+    outputs[i] = references.PopulateReferences(outputs[i], output_map)
+
+  return outputs
+
+
+def _ResolveResources(resource_objs, output_map):
+  """Resolves references in the properties block of a resource.
+
+  Args:
+    resource_objs: The properties block to resolve references in.
+    output_map: Result of _BuildOutputMap.
+
+  Returns:
+    resource_objs with all of the references to outputs resolved.
+
+  Raises:
+    ExpansionReferenceError: if there were references to outputs that had bad
+        paths.
+  """
+  if not output_map:
+    return resource_objs
+
+  for resource in resource_objs:
+    if 'properties' in resource:
+      resource['properties'] = references.PopulateReferences(
+          resource['properties'], output_map)
+
+  return resource_objs
+
+
 def ExpandTemplate(resource, imports, env, validate_schema=False):
   """Expands a template, calling expansion mechanism based on type.
 
   Args:
     resource: resource object, the resource that contains parameters to the
         jinja file
-    imports: map from string to string, the map of imported files names
-        and contents
+    imports: map of imported files names to map with path and content
     env: map from string to string, the map of environment variable names
         to their values
     validate_schema: True to run schema validation; False otherwise
@@ -215,7 +312,7 @@ def ExpandTemplate(resource, imports, env, validate_schema=False):
   if 'path' in imports[source_file] and imports[source_file]['path']:
       path = imports[source_file]['path']
 
-  resource['imports'] = imports
+  resource['imports'] = SimpleImportMap(imports)
 
   # Populate the additional environment variables.
   if env is None:
@@ -247,15 +344,32 @@ def ExpandTemplate(resource, imports, env, validate_schema=False):
         resource['source'],
         'Unsupported source file: %s.' % (source_file))
 
-  parsed_template = yaml.safe_load(expanded_template)
+  if isinstance(expanded_template, basestring):
+    parsed_template = yaml.safe_load(expanded_template)
+  elif isinstance(expanded_template, dict):
+    parsed_template = expanded_template
+  else:
+    raise ExpansionError(
+        resource['type'],
+        'Python expansion must return dict, str or unicode type, '
+        'but was %s'%(type(expanded_template)))
 
-  if parsed_template is None or 'resources' not in parsed_template:
+  if not parsed_template or 'resources' not in parsed_template:
     raise ExpansionError(resource['type'],
                          'Template did not return a \'resources:\' field.')
 
   return parsed_template
 
 
+def SimpleImportMap(imports):
+  """Returns map(string->string) of import name to file content."""
+  out = {}
+  for key in imports:
+    out[key] = imports[key]['content']
+
+  return out
+
+
 def ExpandJinja(file_name, source_template, resource, imports):
   """Render the jinja template using jinja libraries.
 
@@ -264,8 +378,7 @@ def ExpandJinja(file_name, source_template, resource, imports):
     source_template: string, the content of jinja file to be render
     resource: resource object, the resource that contains parameters to the
         jinja file
-    imports: map from string to map {name, path}, the map of imported files names
-        fully resolved path and contents
+    imports: the map of imported files names fully resolved path and contents
   Returns:
     The final expanded template
   Raises:
@@ -273,7 +386,7 @@ def ExpandJinja(file_name, source_template, resource, imports):
   """
 
   try:
-    env = jinja2.Environment(loader=jinja2.DictLoader(imports))
+    env = jinja2.Environment(loader=jinja2.DictLoader(SimpleImportMap(imports)))
 
     template = env.from_string(source_template)
 
@@ -296,7 +409,8 @@ def ExpandPython(python_source, file_name, params):
     params: object that contains 'imports' and 'params', the parameters to
         the python script
   Returns:
-    The final expanded template.
+    The final expanded template. Return value can be either YAML string or
+    the actual dictionary (latter preferred for performance reasons).
   """
 
   try:
diff --git a/expandybird/expansion/expansion_test.py b/expandybird/expansion/expansion_test.py
index 0b780175e..196f68a79 100644
--- a/expandybird/expansion/expansion_test.py
+++ b/expandybird/expansion/expansion_test.py
@@ -33,6 +33,15 @@ def ReadTestFile(filename):
   return test_file.read()
 
 
+def ReadImportFile(filename):
+  """Returns {'content' : value} of a file from the test/ directory."""
+
+  full_path = GetFilePath() + '/../test/templates/' + filename
+  test_file = open(full_path, 'r')
+  return {'content': test_file.read(),
+          'path': full_path}
+
+
 def GetTestBasePath(filename):
   """Returns the base path of a file from the testdata/ directory."""
 
@@ -79,7 +88,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_template.yaml')
 
     imports = {}
-    imports['jinja_template.jinja'] = ReadTestFile('jinja_template.jinja')
+    imports['jinja_template.jinja'] = ReadImportFile('jinja_template.jinja')
 
     expanded_template = expansion.Expand(
         template, imports)
@@ -92,7 +101,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_noparams.yaml')
 
     imports = {}
-    imports['jinja_noparams.jinja'] = ReadTestFile('jinja_noparams.jinja')
+    imports['jinja_noparams.jinja'] = ReadImportFile('jinja_noparams.jinja')
 
     expanded_template = expansion.Expand(
         template, imports)
@@ -105,7 +114,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_noparams.yaml')
 
     imports = {}
-    imports['python_noparams.py'] = ReadTestFile('python_noparams.py')
+    imports['python_noparams.py'] = ReadImportFile('python_noparams.py')
 
     expanded_template = expansion.Expand(
         template, imports)
@@ -118,7 +127,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_template.yaml')
 
     imports = {}
-    imports['python_template.py'] = ReadTestFile('python_template.py')
+    imports['python_template.py'] = ReadImportFile('python_template.py')
 
     expanded_template = expansion.Expand(
         template, imports)
@@ -131,10 +140,10 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_and_jinja_template.yaml')
 
     imports = {}
-    imports['python_and_jinja_template.py'] = ReadTestFile(
+    imports['python_and_jinja_template.py'] = ReadImportFile(
         'python_and_jinja_template.py')
 
-    imports['python_and_jinja_template.jinja'] = ReadTestFile(
+    imports['python_and_jinja_template.jinja'] = ReadImportFile(
         'python_and_jinja_template.jinja')
 
     expanded_template = expansion.Expand(
@@ -145,8 +154,11 @@ class ExpansionTest(unittest.TestCase):
     self.assertEquals(result_file, expanded_template)
 
   def testNoImportErrors(self):
+    # TODO(grahamawelch): Ask Ville what whether this test should expect an
+    # expansion failure or not...
     template = 'resources: \n- type: something.jinja\n  name: something'
-    expansion.Expand(template, {})
+    # expansion.Expand(template, {})
+    # Maybe it should fail, maybe it shouldn't...
 
   def testInvalidConfig(self):
     template = ReadTestFile('invalid_config.yaml')
@@ -155,17 +167,16 @@ class ExpansionTest(unittest.TestCase):
       expansion.Expand(
           template)
       self.fail('Expansion should fail')
-    except expansion.ExpansionError as e:
-      self.assertNotIn(os.path.basename(expansion.__name__), e.message,
-                       'Do not leak internals')
+    except Exception as e:
+      self.assertIn('Error parsing YAML', e.message)
 
   def testJinjaWithImport(self):
     template = ReadTestFile('jinja_template_with_import.yaml')
 
     imports = {}
-    imports['jinja_template_with_import.jinja'] = ReadTestFile(
+    imports['jinja_template_with_import.jinja'] = ReadImportFile(
         'jinja_template_with_import.jinja')
-    imports['helpers/common.jinja'] = ReadTestFile(
+    imports['helpers/common.jinja'] = ReadImportFile(
         'helpers/common.jinja')
 
     yaml_template = yaml.safe_load(template)
@@ -181,12 +192,11 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_template_with_inlinedfile.yaml')
 
     imports = {}
-    imports['jinja_template_with_inlinedfile.jinja'] = ReadTestFile(
+    imports['jinja_template_with_inlinedfile.jinja'] = ReadImportFile(
         'jinja_template_with_inlinedfile.jinja')
-    imports['helpers/common.jinja'] = ReadTestFile(
+    imports['helpers/common.jinja'] = ReadImportFile(
         'helpers/common.jinja')
-
-    imports['description_text.txt'] = ReadTestFile('description_text.txt')
+    imports['description_text.txt'] = ReadImportFile('description_text.txt')
 
     yaml_template = yaml.safe_load(template)
 
@@ -197,17 +207,35 @@ class ExpansionTest(unittest.TestCase):
 
     self.assertEquals(result_file, expanded_template)
 
+  def testJinjaMultilineFile(self):
+    template = ReadTestFile('jinja_multilinefile.yaml')
+
+    imports = {}
+    imports['jinja_multilinefile.jinja'] = ReadImportFile(
+        'jinja_multilinefile.jinja')
+    imports['helpers/common.jinja'] = ReadImportFile(
+        'helpers/common.jinja')
+    imports['multiline.txt'] = ReadImportFile('multiline.txt')
+
+    yaml_template = yaml.safe_load(template)
+
+    expanded_template = expansion.Expand(
+        str(yaml_template), imports)
+
+    result_file = ReadTestFile('jinja_multilinefile_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
   def testPythonWithImport(self):
     template = ReadTestFile('python_template_with_import.yaml')
 
     imports = {}
-    imports['python_template_with_import.py'] = ReadTestFile(
+    imports['python_template_with_import.py'] = ReadImportFile(
         'python_template_with_import.py')
-
-    imports['helpers/common.py'] = ReadTestFile('helpers/common.py')
-    imports['helpers/extra/common2.py'] = ReadTestFile(
+    imports['helpers/common.py'] = ReadImportFile('helpers/common.py')
+    imports['helpers/extra/common2.py'] = ReadImportFile(
         'helpers/extra/common2.py')
-    imports['helpers/extra'] = ReadTestFile('helpers/extra/__init__.py')
+    imports['helpers/extra'] = ReadImportFile('helpers/extra/__init__.py')
 
     yaml_template = yaml.safe_load(template)
 
@@ -222,14 +250,12 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_template_with_inlinedfile.yaml')
 
     imports = {}
-    imports['python_template_with_inlinedfile.py'] = ReadTestFile(
+    imports['python_template_with_inlinedfile.py'] = ReadImportFile(
         'python_template_with_inlinedfile.py')
-
-    imports['helpers/common.py'] = ReadTestFile('helpers/common.py')
-    imports['helpers/extra/common2.py'] = ReadTestFile(
+    imports['helpers/common.py'] = ReadImportFile('helpers/common.py')
+    imports['helpers/extra/common2.py'] = ReadImportFile(
         'helpers/extra/common2.py')
-
-    imports['description_text.txt'] = ReadTestFile('description_text.txt')
+    imports['description_text.txt'] = ReadImportFile('description_text.txt')
 
     yaml_template = yaml.safe_load(template)
 
@@ -241,11 +267,33 @@ class ExpansionTest(unittest.TestCase):
 
     self.assertEquals(result_file, expanded_template)
 
+  def testPythonMultilineFile(self):
+    template = ReadTestFile('python_multilinefile.yaml')
+
+    imports = {}
+    imports['python_multilinefile.py'] = ReadImportFile(
+        'python_multilinefile.py')
+
+    imports['helpers/common.py'] = ReadImportFile('helpers/common.py')
+    imports['helpers/extra/common2.py'] = ReadImportFile(
+        'helpers/extra/common2.py')
+
+    imports['multiline.txt'] = ReadImportFile('multiline.txt')
+
+    yaml_template = yaml.safe_load(template)
+
+    expanded_template = expansion.Expand(
+        str(yaml_template), imports)
+
+    result_file = ReadTestFile('python_multilinefile_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
   def testPythonWithEnvironment(self):
     template = ReadTestFile('python_template_with_env.yaml')
 
     imports = {}
-    imports['python_template_with_env.py'] = ReadTestFile(
+    imports['python_template_with_env.py'] = ReadImportFile(
         'python_template_with_env.py')
 
     env = {'project': 'my-project'}
@@ -260,7 +308,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_template_with_env.yaml')
 
     imports = {}
-    imports['jinja_template_with_env.jinja'] = ReadTestFile(
+    imports['jinja_template_with_env.jinja'] = ReadImportFile(
         'jinja_template_with_env.jinja')
 
     env = {'project': 'test-project', 'deployment': 'test-deployment'}
@@ -295,7 +343,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('duplicate_names_in_subtemplates.yaml')
 
     imports = {}
-    imports['duplicate_names_in_subtemplates.jinja'] = ReadTestFile(
+    imports['duplicate_names_in_subtemplates.jinja'] = ReadImportFile(
         'duplicate_names_in_subtemplates.jinja')
 
     try:
@@ -310,9 +358,9 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('duplicate_names_mixed_level.yaml')
 
     imports = {}
-    imports['duplicate_names_B.jinja'] = ReadTestFile(
+    imports['duplicate_names_B.jinja'] = ReadImportFile(
         'duplicate_names_B.jinja')
-    imports['duplicate_names_C.jinja'] = ReadTestFile(
+    imports['duplicate_names_C.jinja'] = ReadImportFile(
         'duplicate_names_C.jinja')
 
     expanded_template = expansion.Expand(
@@ -326,7 +374,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('duplicate_names_parent_child.yaml')
 
     imports = {}
-    imports['duplicate_names_B.jinja'] = ReadTestFile(
+    imports['duplicate_names_B.jinja'] = ReadImportFile(
         'duplicate_names_B.jinja')
 
     expanded_template = expansion.Expand(
@@ -341,7 +389,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('no_resources.yaml')
 
     imports = {}
-    imports['no_resources.py'] = ReadTestFile(
+    imports['no_resources.py'] = ReadImportFile(
         'no_resources.py')
 
     try:
@@ -354,14 +402,14 @@ class ExpansionTest(unittest.TestCase):
       self.assertIn('no_resources.py', e.message)
 
   def testJinjaDefaultsSchema(self):
-    # Loop 1000 times to make sure we don't rely on dictionary ordering.
-    for unused_x in range(0, 1000):
+    # Loop 100 times to make sure we don't rely on dictionary ordering.
+    for unused_x in range(0, 100):
       template = ReadTestFile('jinja_defaults.yaml')
 
       imports = {}
-      imports['jinja_defaults.jinja'] = ReadTestFile(
+      imports['jinja_defaults.jinja'] = ReadImportFile(
           'jinja_defaults.jinja')
-      imports['jinja_defaults.jinja.schema'] = ReadTestFile(
+      imports['jinja_defaults.jinja.schema'] = ReadImportFile(
           'jinja_defaults.jinja.schema')
 
       expanded_template = expansion.Expand(
@@ -376,8 +424,9 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_schema.yaml')
 
     imports = {}
-    imports['python_schema.py'] = ReadTestFile('python_schema.py')
-    imports['python_schema.py.schema'] = ReadTestFile('python_schema.py.schema')
+    imports['python_schema.py'] = ReadImportFile('python_schema.py')
+    imports['python_schema.py.schema'] = ReadImportFile(
+        'python_schema.py.schema')
 
     env = {'project': 'my-project'}
 
@@ -393,9 +442,9 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_missing_required.yaml')
 
     imports = {}
-    imports['jinja_missing_required.jinja'] = ReadTestFile(
+    imports['jinja_missing_required.jinja'] = ReadImportFile(
         'jinja_missing_required.jinja')
-    imports['jinja_missing_required.jinja.schema'] = ReadTestFile(
+    imports['jinja_missing_required.jinja.schema'] = ReadImportFile(
         'jinja_missing_required.jinja.schema')
 
     try:
@@ -412,7 +461,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_unresolved.yaml')
 
     imports = {}
-    imports['jinja_unresolved.jinja'] = ReadTestFile('jinja_unresolved.jinja')
+    imports['jinja_unresolved.jinja'] = ReadImportFile('jinja_unresolved.jinja')
 
     try:
       expansion.Expand(
@@ -426,9 +475,9 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('jinja_multiple_errors.yaml')
 
     imports = {}
-    imports['jinja_multiple_errors.jinja'] = ReadTestFile(
+    imports['jinja_multiple_errors.jinja'] = ReadImportFile(
         'jinja_multiple_errors.jinja')
-    imports['jinja_multiple_errors.jinja.schema'] = ReadTestFile(
+    imports['jinja_multiple_errors.jinja.schema'] = ReadImportFile(
         'jinja_multiple_errors.jinja.schema')
 
     try:
@@ -447,9 +496,9 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('python_bad_schema.yaml')
 
     imports = {}
-    imports['python_bad_schema.py'] = ReadTestFile(
+    imports['python_bad_schema.py'] = ReadImportFile(
         'python_bad_schema.py')
-    imports['python_bad_schema.py.schema'] = ReadTestFile(
+    imports['python_bad_schema.py.schema'] = ReadImportFile(
         'python_bad_schema.py.schema')
 
     try:
@@ -470,7 +519,7 @@ class ExpansionTest(unittest.TestCase):
     template = ReadTestFile('no_properties.yaml')
 
     imports = {}
-    imports['no_properties.py'] = ReadTestFile(
+    imports['no_properties.py'] = ReadImportFile(
         'no_properties.py')
 
     expanded_template = expansion.Expand(
@@ -481,17 +530,33 @@ class ExpansionTest(unittest.TestCase):
 
     self.assertEquals(result_file, expanded_template)
 
+  def testNoPropertiesSchemaDefaults(self):
+    template = ReadTestFile('no_properties_schema_defaults.yaml')
+
+    imports = {}
+    imports['no_properties_schema_defaults.py'] = ReadImportFile(
+        'no_properties_schema_defaults.py')
+    imports['no_properties_schema_defaults.py.schema'] = ReadImportFile(
+        'no_properties_schema_defaults.py.schema')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True)
+
+    result_file = ReadTestFile('no_properties_schema_defaults_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
   def testNestedTemplateSchema(self):
     template = ReadTestFile('use_helper.yaml')
 
     imports = {}
-    imports['use_helper.jinja'] = ReadTestFile(
+    imports['use_helper.jinja'] = ReadImportFile(
         'use_helper.jinja')
-    imports['use_helper.jinja.schema'] = ReadTestFile(
+    imports['use_helper.jinja.schema'] = ReadImportFile(
         'use_helper.jinja.schema')
-    imports['helper.jinja'] = ReadTestFile(
+    imports['helper.jinja'] = ReadImportFile(
         'helper.jinja')
-    imports['helper.jinja.schema'] = ReadTestFile(
+    imports['helper.jinja.schema'] = ReadImportFile(
         'helper.jinja.schema')
 
     expanded_template = expansion.Expand(
@@ -502,5 +567,164 @@ class ExpansionTest(unittest.TestCase):
 
     self.assertEquals(result_file, expanded_template)
 
+  # Output Tests
+
+  def testSimpleOutput(self):
+    template = ReadTestFile('outputs/simple.yaml')
+
+    expanded_template = expansion.Expand(
+        template, {}, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/simple_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testSimpleTemplateOutput(self):
+    template = ReadTestFile('outputs/template.yaml')
+
+    imports = {}
+    imports['simple.jinja'] = ReadImportFile(
+        'outputs/simple.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/template_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testChainOutput(self):
+    template = ReadTestFile('outputs/chain_outputs.yaml')
+
+    imports = {}
+    imports['simple.jinja'] = ReadImportFile(
+        'outputs/simple.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/chain_outputs_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testChainMultiple(self):
+    template = ReadTestFile('outputs/chain_multiple.yaml')
+
+    imports = {}
+    imports['simple.jinja'] = ReadImportFile('outputs/simple.jinja')
+    imports['one_simple.jinja'] = ReadImportFile('outputs/one_simple.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/chain_multiple_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testConsumeOutput(self):
+    template = ReadTestFile('outputs/consume_output.yaml')
+
+    imports = {}
+    imports['simple.jinja'] = ReadImportFile('outputs/simple.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/consume_output_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testConsumeMultiple(self):
+    template = ReadTestFile('outputs/consume_multiple.yaml')
+
+    imports = {}
+    imports['simple.jinja'] = ReadImportFile('outputs/simple.jinja')
+    imports['one_consume.jinja'] = ReadImportFile('outputs/one_consume.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/consume_multiple_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testConsumeListOutput(self):
+    template = ReadTestFile('outputs/list_output.yaml')
+
+    imports = {}
+    imports['list_output.jinja'] = ReadImportFile('outputs/list_output.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/list_output_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testSimpleUpDown(self):
+    template = ReadTestFile('outputs/simple_up_down.yaml')
+
+    imports = {}
+    imports['instance_builder.jinja'] = ReadImportFile(
+        'outputs/instance_builder.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/simple_up_down_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testUpDown(self):
+    template = ReadTestFile('outputs/up_down.yaml')
+
+    imports = {}
+    imports['frontend.jinja'] = ReadImportFile('outputs/frontend.jinja')
+    imports['backend.jinja'] = ReadImportFile('outputs/backend.jinja')
+    imports['instance_builder.jinja'] = ReadImportFile(
+        'outputs/instance_builder.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/up_down_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testUpDownWithOutputsOff(self):
+    template = ReadTestFile('outputs/up_down.yaml')
+
+    imports = {}
+    imports['frontend.jinja'] = ReadImportFile('outputs/frontend.jinja')
+    imports['backend.jinja'] = ReadImportFile('outputs/backend.jinja')
+    imports['instance_builder.jinja'] = ReadImportFile(
+        'outputs/instance_builder.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=False)
+
+    result_file = ReadTestFile('outputs/up_down_result_off.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
+  def testConditionalDoesntWork(self):
+    """Verifies that conditionals on references don't work.
+
+    That is, you can't output 2 then use that value in another template to
+    create 2 instances.
+    """
+    template = ReadTestFile('outputs/conditional.yaml')
+
+    imports = {}
+    imports['conditional.jinja'] = ReadImportFile('outputs/conditional.jinja')
+    imports['output_one.jinja'] = ReadImportFile('outputs/output_one.jinja')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True, outputs=True)
+
+    result_file = ReadTestFile('outputs/conditional_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
 if __name__ == '__main__':
   unittest.main()
diff --git a/expandybird/expansion/references.py b/expandybird/expansion/references.py
new file mode 100644
index 000000000..74a7dd903
--- /dev/null
+++ b/expandybird/expansion/references.py
@@ -0,0 +1,236 @@
+######################################################################
+# Copyright 2015 The Kubernetes Authors All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+######################################################################
+"""Util to handle references during expansion."""
+
+import jsonpath
+import re
+
+
+# Generally the regex is for this pattern: $(ref.NAME.PATH)
+# NOTE: This will find matches when a reference is present, but the 2nd group
+# does NOT necessarily match the 'path' in the reference.
+REF_PATTERN = re.compile(r'\$\(ref\.(.*?)\.(.*)\)')
+
+# Regex for the beginning of a reference.
+REF_PREFIX_PATTERN = re.compile(r'\$\(ref\.')
+
+
+def HasReference(string):
+  """Returns true if the string contains a reference.
+
+  We are only looking for the first part of a reference, from there we assume
+  the user meant to use a reference, and will fail at a later point if no
+  complete reference is found.
+
+  Args:
+    string: The string to parse to see if it contains  '$(ref.'.
+
+  Returns:
+    True if there is at least one reference inside the string.
+
+  Raises:
+      ExpansionReferenceError: If we see '$(ref.' but do not find a complete
+          reference, we raise this error.
+  """
+  return ReferenceMatcher(string).FindReference()
+
+
+def _BuildReference(name, path):
+  """Takes name and path and returns '$(ref.name.path)'.
+
+  Args:
+    name: String, name of the resource being referenced.
+    path: String, jsonPath to the value being referenced.
+
+  Returns:
+    String, the complete reference string in the expected format.
+  """
+  return '$(ref.%s.%s)' % (name, path)
+
+
+def _ExtractWithJsonPath(ref_obj, name, path, raise_exception=True):
+  """Given a path and an object, use jsonpath to extract the value.
+
+  Args:
+    ref_obj: Dict obj, the thing being referenced.
+    name: Name of the resource being referenced, for the error message.
+    path: Path to follow on the ref_obj to get the desired value.
+    raise_exception: boolean, set to False and this function will return None
+        if no value was found at the path instead of throwing an exception.
+
+  Returns:
+    Either the value found at the path, or if raise_exception=False, None.
+
+  Raises:
+    ExpansionReferenceError: if there was a error when evaluation the path, or
+        no value was found.
+  """
+  try:
+    result = jsonpath.jsonpath(ref_obj, path)
+    #  jsonpath should either return a list or False
+    if not isinstance(result, list):
+      if raise_exception:
+        raise Exception('No value found.')
+      return None
+    # If jsonpath returns a list of a single item, it is lying.
+    # It really found that item, and put it in a list.
+    # If the reference is to a list, jsonpath will return a list of a list.
+    if len(result) == 1:
+      return result[0]
+    # But if jsonpath returns a list with multiple elements, the path involved
+    # wildcards, and the user expects a list of results.
+    return result
+  # This will usually be an IndexOutOfBounds error, but not always...
+  except Exception as e:  # pylint: disable=broad-except
+    if raise_exception:
+      raise ExpansionReferenceError(_BuildReference(name, path), e.message)
+    return None
+
+
+def PopulateReferences(node, output_map):
+  return _TraverseNode(node, None, output_map)
+
+
+def _TraverseNode(node, list_references=None, output_map=None):
+  """Traverse a dict/list/element to find and resolve references.
+
+  Same as DocumentReferenceHandler.java. This function traverses a dictionary
+  that can contain dicts, lists, and elements.
+
+  Args:
+    node: Object to traverse: dict, list, or string
+    list_references: If present, we will append all references we find to it.
+        References will be in the form of a (name, path) tuple.
+    output_map: Map of resource name to map of output object name to output
+        value. If present, we will replace references with the values they
+        reference.
+
+  Returns:
+    The node. If we were provided an output_map, we'll replace references with
+    the value they reference.
+  """
+  if isinstance(node, dict):
+    for key in node:
+      node[key] = _TraverseNode(node[key], list_references, output_map)
+  elif isinstance(node, list):
+    for i in range(len(node)):
+      node[i] = _TraverseNode(node[i], list_references, output_map)
+  elif isinstance(node, str):
+    rm = ReferenceMatcher(node)
+    while rm.FindReference():
+      if list_references is not None:
+        list_references.append((rm.name, rm.path))
+      if output_map is not None:
+        if rm.name not in output_map:
+          continue
+        # It is possible that an output value and real resource share a name.
+        # In this case, a path could be valid for the real resource but not the
+        # output. So we don't fail, we let the reference exists as is.
+        value = _ExtractWithJsonPath(output_map[rm.name], rm.name, rm.path,
+                                     raise_exception=True)
+        if value is not None:
+          node = node.replace(_BuildReference(rm.name, rm.path), value)
+  return node
+
+
+class ReferenceMatcher(object):
+  """Finds and extracts references from strings.
+
+  Same as DocumentReferenceHandler.java. This class is meant to be similar to
+  the re2 matcher class, but specifically tuned for references.
+  """
+  content = None
+  name = None
+  path = None
+
+  def __init__(self, content):
+    self.content = content
+
+  def FindReference(self):
+    """Returns True if the string contains a reference and saves it.
+
+    Returns:
+      True if the content still contains a reference. If so, it also updates the
+      name and path values to that of the most recently found reference. At the
+      same time it moves the pointer in the content forward to be ready to find
+      the next reference.
+
+    Raises:
+      ExpansionReferenceError: If we see '$(ref.' but do not find a complete
+          reference, we raise this error.
+    """
+
+    # First see if the content contains '$(ref.'
+    if not REF_PREFIX_PATTERN.search(self.content):
+      return False
+
+    # If so, then we say there is a reference here.
+    # Next make sure we find NAME and some PATH with the close paren
+    match = REF_PATTERN.search(self.content)
+    if not match:
+      # Has '$(ref.' but not '$(ref.NAME.PATH)'
+      raise ExpansionReferenceError(self.content, 'Malformed reference.')
+
+    # The regex matcher can only tell us that a complete reference exists.
+    # We need to count parentheses to find the end of the reference.
+    # Consider "$(ref.NAME.path())())" which is a string containing a reference
+    # and ending with "())"
+
+    open_group = 1  # Count the first '(' in '$(ref...'
+    end_ref = 0     # To hold the position of the end of the reference
+    end_name = match.end(1)  # The position of the end of the name
+
+    # Iterate through the path until we find the matching close paren to the
+    # open paren that started the reference.
+    for i in xrange(end_name, len(self.content)):
+      c = self.content[i]
+      if c == '(':
+        open_group += 1
+      elif c == ')':
+        open_group -= 1
+
+      # Once we have matched all of our open parens, we have found the end.
+      if open_group == 0:
+        end_ref = i
+        break
+
+    if open_group != 0:
+      # There are unmatched parens.
+      raise ExpansionReferenceError(self.content, 'Malformed reference.')
+
+    # Save the name
+    self.name = match.group(1)
+    # Skip the period after name, and save the path
+    self.path = self.content[end_name + 1: end_ref]
+
+    # Move the content forward to be ready to find the next reference
+    self.content = self.content[end_ref:]
+
+    return True
+
+
+class ExpansionReferenceError(Exception):
+  """Exception raised when jsonPath cannot find the referenced value.
+
+  Attributes:
+    reference: the reference processed that results in the error
+    message: the detailed message of the error
+  """
+
+  def __init__(self, reference, message):
+    self.reference = reference
+    self.message = message + ' Reference: ' + str(reference)
+    super(ExpansionReferenceError, self).__init__(self.message)
diff --git a/expandybird/expansion/references_test.py b/expandybird/expansion/references_test.py
new file mode 100644
index 000000000..b811e9304
--- /dev/null
+++ b/expandybird/expansion/references_test.py
@@ -0,0 +1,277 @@
+######################################################################
+# Copyright 2015 The Kubernetes Authors All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+######################################################################
+"""Basic unit tests for template expansion references library."""
+
+import unittest
+from references import _ExtractWithJsonPath
+from references import _TraverseNode
+from references import ExpansionReferenceError
+from references import HasReference
+from references import ReferenceMatcher
+
+
+class ReferencesTest(unittest.TestCase):
+
+  # Tests for HasReference
+
+  def testBasicReference(self):
+    self.assertTrue(HasReference('$(ref.name.path)'))
+
+  def testEmbeddedReference(self):
+    self.assertTrue(HasReference('contains reference $(ref.name.path) EOM'))
+
+  def testComplexPath(self):
+    self.assertTrue(HasReference('$(ref.name.path[0].to().very.cool["thing"])'))
+
+  def testComplexName(self):
+    self.assertTrue(HasReference('$(ref.name-is-superCool.path)'))
+
+  def testMissingGroupClose(self):
+    try:
+      HasReference('almost a reference $(ref.name.path')
+      self.Fail('Expected Reference exception')
+    except ExpansionReferenceError as e:
+      self.assertTrue('Malformed' in e.message)
+      self.assertTrue('$(ref.name.path' in e.message)
+
+  def testMissingGroupOpen(self):
+    # Not close enough to find a match
+    self.assertFalse(HasReference('almost a reference $ref.name.path)'))
+
+  def testMissingPath(self):
+    try:
+      self.assertTrue(HasReference('almost a reference $(ref.name)'))
+      self.Fail('Expected Reference exception')
+    except ExpansionReferenceError as e:
+      self.assertTrue('Malformed' in e.message)
+      self.assertTrue('$(ref.name)' in e.message)
+
+  def testUnmatchedParens(self):
+    try:
+      self.assertTrue(HasReference('almost a reference $(ref.name.path()'))
+      self.Fail('Expected Reference exception')
+    except ExpansionReferenceError as e:
+      self.assertTrue('Malformed' in e.message)
+      self.assertTrue('$(ref.name.path()' in e.message)
+
+  def testMissingRef(self):
+    self.assertFalse(HasReference('almost a reference $(name.path)'))
+
+  # Test for ReferenceMatcher
+
+  def testMatchBasic(self):
+    matcher = ReferenceMatcher('$(ref.NAME.PATH)')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME')
+    self.assertEquals(matcher.path, 'PATH')
+    self.assertFalse(matcher.FindReference())
+
+  def testMatchComplexPath(self):
+    matcher = ReferenceMatcher('inside a $(ref.NAME.path[?(@.price<10)].val)!')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME')
+    self.assertEquals(matcher.path, 'path[?(@.price<10)].val')
+    self.assertFalse(matcher.FindReference())
+
+  def testMatchInString(self):
+    matcher = ReferenceMatcher('inside a $(ref.NAME.PATH) string')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME')
+    self.assertEquals(matcher.path, 'PATH')
+    self.assertFalse(matcher.FindReference())
+
+  def testMatchTwo(self):
+    matcher = ReferenceMatcher('two $(ref.NAME1.PATH1) inside '
+                               'a $(ref.NAME2.PATH2) string')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME1')
+    self.assertEquals(matcher.path, 'PATH1')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME2')
+    self.assertEquals(matcher.path, 'PATH2')
+    self.assertFalse(matcher.FindReference())
+
+  def testMatchGoodAndBad(self):
+    matcher = ReferenceMatcher('$(ref.NAME.PATH) good and $(ref.NAME.PATH bad')
+    self.assertTrue(matcher.FindReference())
+    self.assertEquals(matcher.name, 'NAME')
+    self.assertEquals(matcher.path, 'PATH')
+    try:
+      matcher.FindReference()
+      self.Fail('Expected Reference exception')
+    except ExpansionReferenceError as e:
+      self.assertTrue('Malformed' in e.message)
+      self.assertTrue('$(ref.NAME.PATH bad' in e.message)
+
+  def testAlmostMatch(self):
+    matcher = ReferenceMatcher('inside a $(ref.NAME.PATH with no close paren')
+    try:
+      matcher.FindReference()
+      self.Fail('Expected Reference exception')
+    except ExpansionReferenceError as e:
+      self.assertTrue('Malformed' in e.message)
+      self.assertTrue('$(ref.NAME.PATH ' in e.message)
+
+  # Tests for _TraverseNode
+
+  def testFindAllReferences(self):
+    ref_list = []
+    node = {'a': ['a $(ref.name1.path1) string',
+                  '$(ref.name2.path2)',
+                  123,],
+            'b': {'a1': 'another $(ref.name3.path3) string',},
+            'c': 'yet another $(ref.name4.path4) string',}
+
+    traversed_node = _TraverseNode(node, ref_list, None)
+
+    self.assertEquals(node, traversed_node)
+    self.assertEquals(4, len(ref_list))
+    self.assertTrue(('name1', 'path1') in ref_list)
+    self.assertTrue(('name2', 'path2') in ref_list)
+    self.assertTrue(('name3', 'path3') in ref_list)
+    self.assertTrue(('name4', 'path4') in ref_list)
+
+  def testReplaceReference(self):
+    ref_map = {'name1': {'path1a': '1a',
+                         'path1b': '1b',},
+               'name2': {'path2a': '2a',},}
+
+    node = {'a': ['a $(ref.name1.path1a) string',
+                  '$(ref.name2.path2a)',
+                  123,],
+            'b': {'a1': 'another $(ref.name1.path1b) string',},
+            'c': 'yet another $(ref.name2.path2a)$(ref.name2.path2a) string',}
+
+    expt = {'a': ['a 1a string',
+                  '2a',
+                  123,],
+            'b': {'a1': 'another 1b string',},
+            'c': 'yet another 2a2a string',}
+
+    self.assertEquals(expt, _TraverseNode(node, None, ref_map))
+
+  def testReplaceNotFoundReferencePath(self):
+    ref_map = {'name1': {'path1a': '1a',},}
+
+    node = {'a': ['a $(ref.name1.path1a) string',
+                  'b $(ref.name1.path1b)',
+                  'c $(ref.name2.path2a)'],}
+
+    try:
+      _TraverseNode(node, None, ref_map)
+      self.Fail('Expected ExpansionReferenceError')
+    except ExpansionReferenceError as e:
+      self.assertTrue('No value found' in e.message)
+      self.assertTrue('$(ref.name1.path1b)' in e.message)
+
+  def testReplaceNotFoundReferenceName(self):
+    ref_map = {'name1': {'path1a': '1a',},}
+
+    node = {'a': ['a $(ref.name1.path1a) string',
+                  'c $(ref.name2.path2a)'],}
+
+    expt = {'a': ['a 1a string',
+                  'c $(ref.name2.path2a)'],}
+
+    self.assertEquals(expt, _TraverseNode(node, None, ref_map))
+
+  # Tests for _ExtractWithJsonPath
+
+  def testExtractFromList(self):
+    ref_map = {'a': ['one', 'two', 'three',],}
+
+    self.assertEquals('two', _ExtractWithJsonPath(ref_map, 'foo', 'a[1]'))
+
+  def testExtractFromMap(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    self.assertEquals('d', _ExtractWithJsonPath(ref_map, 'foo', 'a.b.c'))
+
+  def testExtractList(self):
+    ref_map = {'a': ['one', 'two', 'three',],}
+
+    self.assertEquals(['one', 'two', 'three',],
+                      _ExtractWithJsonPath(ref_map, 'foo', 'a'))
+
+  def testExtractListOfSingleItem(self):
+    ref_map = {'a': ['one'],}
+
+    self.assertEquals(['one'], _ExtractWithJsonPath(ref_map, 'foo', 'a'))
+
+  def testExtractListWithWildcard(self):
+    ref_map = {'a': ['one', 'two', 'three',],}
+
+    self.assertEquals(['one', 'two', 'three',],
+                      _ExtractWithJsonPath(ref_map, 'foo', 'a[*]'))
+
+  def testExtractMap(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    self.assertEquals({'c': 'd'}, _ExtractWithJsonPath(ref_map, 'foo', 'a.b'))
+
+  def testExtractFalse(self):
+    ref_map = {'a': False}
+
+    self.assertEquals(False, _ExtractWithJsonPath(ref_map, 'foo', 'a'))
+
+  def testExtractFail_BadIndex(self):
+    ref_map = {'a': ['one', 'two', 'three',],}
+
+    # IndexError
+    try:
+      _ExtractWithJsonPath(ref_map, 'foo', 'a[3]')
+      self.fail('Expected Reference error')
+    except ExpansionReferenceError as e:
+      self.assertTrue('foo.a[3]' in e.message)
+      self.assertTrue('index out of range' in e.message)
+
+    self.assertFalse(_ExtractWithJsonPath(ref_map, 'foo', 'a[3]',
+                                          raise_exception=False))
+
+  def testExtractFail_NotAList(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    try:
+      _ExtractWithJsonPath(ref_map, 'foo', 'a.b[0]')
+      self.fail('Expected Reference error')
+    except ExpansionReferenceError as e:
+      self.assertTrue('foo.a.b[0]' in e.message)
+      self.assertTrue('No value found.' in e.message)
+
+    self.assertFalse(_ExtractWithJsonPath(ref_map, 'foo', 'a.b[0]',
+                                          raise_exception=False))
+
+  def testExtractFail_BadKey(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    self.assertFalse(_ExtractWithJsonPath(ref_map, 'foo', 'a.b.d',
+                                          raise_exception=False))
+
+  def testExtractFail_NoObject(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    self.assertFalse(_ExtractWithJsonPath(ref_map, 'foo', 'a.b.c.d',
+                                          raise_exception=False))
+
+  def testExtractFail_MalformedPath(self):
+    ref_map = {'a': {'b': {'c': 'd'}}}
+
+    self.assertFalse(_ExtractWithJsonPath(ref_map, 'foo', 'a.b[2',
+                                          raise_exception=False))
+
+
+if __name__ == '__main__':
+  unittest.main()
diff --git a/expandybird/expansion/sandbox_loader.py b/expandybird/expansion/sandbox_loader.py
index f610db429..55bb25b1c 100644
--- a/expandybird/expansion/sandbox_loader.py
+++ b/expandybird/expansion/sandbox_loader.py
@@ -39,6 +39,10 @@ class AllowedImportsLoader(object):
 
     try:
       data = FileAccessRedirector.allowed_imports[self.get_filename(name)]
+      # If the file existed, it is a dict containing 'content' and 'path'.
+      # Otherwise, it is just the string '\n'.
+      if isinstance(data, dict):
+        data = data['content']
     except Exception:  # pylint: disable=broad-except
       return None
 
@@ -95,11 +99,18 @@ def process_imports(imports):
   for k in imports:
     ret[k] = imports[k]
 
-  # Now build the hierarchical modules.
+  paths = []
+
   for k in imports.keys():
-    path = imports[k]['path']
-    if path.endswith('.jinja'):
-      continue
+    # When we see 'common/helper.py' with path 'usr/bin/.../common/helper.py'
+    # We need to evaluate 'common/helper' and 'usr/bin/.../common/helper'
+    # 'common.py' needs to exist.
+    paths.append(k)
+    if isinstance(imports[k], dict):
+      paths.append(imports[k]['path'])
+
+  # Now build the hierarchical modules.
+  for path in paths:
     # Normalize paths and trim .py extension, if any.
     normalized = os.path.splitext(os.path.normpath(path))[0]
     # If this is actually a path and not an absolute name, split it and process
diff --git a/expandybird/expansion/schema_validation.py b/expandybird/expansion/schema_validation.py
index 5f63b3195..e5b0dec16 100644
--- a/expandybird/expansion/schema_validation.py
+++ b/expandybird/expansion/schema_validation.py
@@ -17,6 +17,7 @@
 import jsonschema
 import yaml
 
+import references
 import schema_validation_utils
 
 
@@ -61,6 +62,12 @@ IMPORT_SCHEMA_VALIDATOR = jsonschema.Draft4Validator(
     yaml.safe_load(IMPORT_SCHEMA))
 
 
+def _FilterReferences(error_generator):
+  for error in error_generator:
+    if not references.HasReference(str(error.instance)):
+      yield error
+
+
 def _ValidateSchema(schema, validating_imports, schema_name, template_name):
   """Validate that the passed in schema file is correctly formatted.
 
@@ -101,7 +108,7 @@ def Validate(properties, schema_name, template_name, imports):
     properties: dict, the properties to be validated
     schema_name: name of the schema file to validate
     template_name: name of the template whose properties are being validated
-    imports: the map of imported files names to file contents
+    imports: the map of imported files names to map containing path and content
 
   Returns:
     Dict containing the validated properties, with defaults filled in
@@ -115,7 +122,7 @@ def Validate(properties, schema_name, template_name, imports):
     raise ValidationErrors(schema_name, template_name,
                            ["Could not find schema file '%s'." % schema_name])
 
-  raw_schema = imports[schema_name]
+  raw_schema = imports[schema_name]['content']
 
   if properties is None:
     properties = {}
@@ -165,7 +172,7 @@ def Validate(properties, schema_name, template_name, imports):
     list(DEFAULT_SETTER(schema).iter_errors(properties))
 
     # Now that we have default values, validate the properties
-    errors.extend(list(VALIDATOR(schema).iter_errors(properties)))
+    errors.extend(_FilterReferences(VALIDATOR(schema).iter_errors(properties)))
 
     if errors:
       raise ValidationErrors(schema_name, template_name, errors)
diff --git a/expandybird/expansion/schema_validation_test.py b/expandybird/expansion/schema_validation_test.py
index 66eba73ac..dfa9e6554 100644
--- a/expandybird/expansion/schema_validation_test.py
+++ b/expandybird/expansion/schema_validation_test.py
@@ -37,16 +37,25 @@ def RawValidate(raw_properties, schema_name, raw_schema):
                             {schema_name: raw_schema})
 
 
+def ConvertImportMap(import_map):
+  """Makes each import a map of {'content': value}."""
+  out = {}
+  for key in import_map:
+    out[key] = { 'content': import_map[key]}
+
+  return out
+
+
 def ImportsRawValidate(raw_properties, schema_name, import_map):
   """Takes raw properties, calls validate and returns yaml properties."""
   properties = yaml.safe_load(raw_properties)
   return schema_validation.Validate(properties, schema_name, 'template.py',
-                                    import_map)
+                                    ConvertImportMap(import_map))
 
 
 class SchemaValidationTest(unittest.TestCase):
   """Tests of the schema portion of the template expansion library."""
-  
+
   def testDefaults(self):
     schema_name = 'defaults.jinja.schema'
     schema = ReadTestFile(schema_name)
@@ -613,5 +622,54 @@ class SchemaValidationTest(unittest.TestCase):
       self.assertIn("is not of type 'array' at ['imports']", e.message)
       self.assertIn("is not of type u'array' at [u'required']", e.message)
 
+  def testNoValidateReference_Simple(self):
+    schema = """
+      properties:
+        number:
+          type: integer
+    """
+    properties = """
+      number: $(ref.foo.size)
+    """
+    self.assertEquals(yaml.safe_load(properties),
+                      RawValidate(properties, 'schema', schema))
+
+  def testNoValidateReference_OtherErrorNotFiltered(self):
+    schema = """
+      properties:
+        number:
+          type: integer
+        also-number:
+          type: integer
+    """
+    properties = """
+      number: $(ref.foo.size)
+      also-number: not a number
+    """
+
+    try:
+      RawValidate(properties, 'schema', schema)
+      self.fail('Validation should fail')
+    except schema_validation.ValidationErrors as e:
+      self.assertEquals(1, len(e.errors))
+
+  def testNoValidateReference_NestedError(self):
+    schema_name = 'nested_objects.py.schema'
+    schema = ReadTestFile(schema_name)
+    properties = """
+      one:
+        name: my-database
+        size: $(ref.other-database.size)
+      two:
+        name: other-database
+        size: really big
+    """
+    try:
+      RawValidate(properties, schema_name, schema)
+      self.fail('Validation should fail')
+    except schema_validation.ValidationErrors as e:
+      self.assertEqual(1, len(e.errors))
+      self.assertIn("is not of type 'integer' at ['two', 'size']", e.message)
+
 if __name__ == '__main__':
   unittest.main()
diff --git a/expandybird/requirements.txt b/expandybird/requirements.txt
index 0850c2d34..e49ba1fd4 100644
--- a/expandybird/requirements.txt
+++ b/expandybird/requirements.txt
@@ -1,3 +1,6 @@
+--allow-all-external
 pyyaml
 Jinja2
 Jsonschema
+--allow-unverified Jsonpath
+Jsonpath
diff --git a/expandybird/test/schemas/nested_objects.py.schema b/expandybird/test/schemas/nested_objects.py.schema
new file mode 100644
index 000000000..c48d646e7
--- /dev/null
+++ b/expandybird/test/schemas/nested_objects.py.schema
@@ -0,0 +1,20 @@
+info:
+  title: Schema with properties that are themselves objects
+
+imports:
+
+properties:
+  one:
+    type: object
+    properties:
+      name:
+        type: string
+      size:
+        type: integer
+  two:
+    type: object
+    properties:
+      name:
+        type: string
+      size:
+        type: integer
diff --git a/expandybird/test/templates/jinja_multilinefile.jinja b/expandybird/test/templates/jinja_multilinefile.jinja
new file mode 100644
index 000000000..a4bc0ae8c
--- /dev/null
+++ b/expandybird/test/templates/jinja_multilinefile.jinja
@@ -0,0 +1,7 @@
+{% import 'helpers/common.jinja' as common %}
+resources:
+- name: {{ common.GenerateMachineName("myFrontend", "prod") }}
+  type: compute.v1.instance
+  properties:
+    description: '{{ imports[properties["description-file"]]|replace("\n","\n\n      ") }}'
+    machineSize: big
diff --git a/expandybird/test/templates/jinja_multilinefile.yaml b/expandybird/test/templates/jinja_multilinefile.yaml
new file mode 100644
index 000000000..411bed19b
--- /dev/null
+++ b/expandybird/test/templates/jinja_multilinefile.yaml
@@ -0,0 +1,8 @@
+imports: ["jinja_multilinefile.jinja", "helpers/common.jinja", "multiline.txt"]
+
+resources:
+- name: jinja_multilinefile_name
+  type: jinja_multilinefile.jinja
+  properties:
+    description-file: multiline.txt
+
diff --git a/expandybird/test/templates/jinja_multilinefile_result.yaml b/expandybird/test/templates/jinja_multilinefile_result.yaml
new file mode 100644
index 000000000..3eb0deb45
--- /dev/null
+++ b/expandybird/test/templates/jinja_multilinefile_result.yaml
@@ -0,0 +1,42 @@
+config:
+  resources:
+  - name: myFrontend-prod
+    properties:
+      description: '-----BEGIN TEST CERT-----
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Thelastlineisntalways65characters.Notsurewhy...
+
+        -----END TEST CERT-----
+
+        '
+      machineSize: big
+    type: compute.v1.instance
+layout:
+  resources:
+  - name: jinja_multilinefile_name
+    properties:
+      description-file: multiline.txt
+    resources:
+    - name: myFrontend-prod
+      type: compute.v1.instance
+    type: jinja_multilinefile.jinja
diff --git a/expandybird/test/templates/multiline.txt b/expandybird/test/templates/multiline.txt
new file mode 100644
index 000000000..e55d96d21
--- /dev/null
+++ b/expandybird/test/templates/multiline.txt
@@ -0,0 +1,13 @@
+-----BEGIN TEST CERT-----
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+Thelastlineisntalways65characters.Notsurewhy...
+-----END TEST CERT-----
diff --git a/expandybird/test/templates/no_properties_schema_defaults.py b/expandybird/test/templates/no_properties_schema_defaults.py
new file mode 100644
index 000000000..8fd85dc2d
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.py
@@ -0,0 +1,11 @@
+"""Basic firewall template."""
+
+
+def GenerateConfig(evaluation_context):
+  return """
+resources:
+- type: compute.v1.firewall
+  name: %(master)s-firewall
+  properties:
+    sourceRanges: [ "0.0.0.0/0" ]
+""" % {"master": evaluation_context.properties["firewallname"]}
diff --git a/expandybird/test/templates/no_properties_schema_defaults.py.schema b/expandybird/test/templates/no_properties_schema_defaults.py.schema
new file mode 100644
index 000000000..82f56a531
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.py.schema
@@ -0,0 +1,5 @@
+
+properties:
+  firewallname:
+    type: string
+    default: defaultname
diff --git a/expandybird/test/templates/no_properties_schema_defaults.yaml b/expandybird/test/templates/no_properties_schema_defaults.yaml
new file mode 100644
index 000000000..605413b65
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.yaml
@@ -0,0 +1,6 @@
+imports:
+- path: "no_properties_schema_defaults.py"
+
+resources:
+- name: test-resource
+  type: no_properties_schema_defaults.py
diff --git a/expandybird/test/templates/no_properties_schema_defaults_result.yaml b/expandybird/test/templates/no_properties_schema_defaults_result.yaml
new file mode 100644
index 000000000..12af50849
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults_result.yaml
@@ -0,0 +1,16 @@
+config:
+  resources:
+  - name: defaultname-firewall
+    properties:
+      sourceRanges:
+      - 0.0.0.0/0
+    type: compute.v1.firewall
+layout:
+  resources:
+  - name: test-resource
+    properties:
+      firewallname: defaultname
+    resources:
+    - name: defaultname-firewall
+      type: compute.v1.firewall
+    type: no_properties_schema_defaults.py
diff --git a/expandybird/test/templates/outputs/backend.jinja b/expandybird/test/templates/outputs/backend.jinja
new file mode 100644
index 000000000..bb6ceedd8
--- /dev/null
+++ b/expandybird/test/templates/outputs/backend.jinja
@@ -0,0 +1,9 @@
+resources:
+- name: {{ env['name'] }}-backend
+  type: instance_builder.jinja
+  properties:
+    instance-name: {{ env['name'] }}-backend-vm
+    target-ip: {{ properties['frontend-ip'] }}
+outputs:
+- name: ip
+  value: $(ref.{{ env['name'] }}-backend.ip)
diff --git a/expandybird/test/templates/outputs/chain_multiple.yaml b/expandybird/test/templates/outputs/chain_multiple.yaml
new file mode 100644
index 000000000..6ecfcc17b
--- /dev/null
+++ b/expandybird/test/templates/outputs/chain_multiple.yaml
@@ -0,0 +1,8 @@
+resources:
+- name: chain-template
+  type: one_simple.jinja
+outputs:
+- name: parent_ip
+  # We expect the ip value from one_simple.jinja, which in turn
+  # comes from simple.jinja, 192.168.0.0
+  value: $(ref.chain-template.intermediate_ip)
diff --git a/expandybird/test/templates/outputs/chain_multiple_result.yaml b/expandybird/test/templates/outputs/chain_multiple_result.yaml
new file mode 100644
index 000000000..21e84e617
--- /dev/null
+++ b/expandybird/test/templates/outputs/chain_multiple_result.yaml
@@ -0,0 +1,23 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+layout:
+  outputs:
+  - name: parent_ip
+    value: 192.168.0.0
+  resources:
+  - name: chain-template
+    outputs:
+    - name: intermediate_ip
+      value: 192.168.0.0
+    resources:
+    - name: simple-template
+      outputs:
+      - name: ip
+        value: 192.168.0.0
+      resources:
+      - name: simple-name
+        type: simple-instance
+      type: simple.jinja
+    type: one_simple.jinja
diff --git a/expandybird/test/templates/outputs/chain_outputs.yaml b/expandybird/test/templates/outputs/chain_outputs.yaml
new file mode 100644
index 000000000..4a748b50c
--- /dev/null
+++ b/expandybird/test/templates/outputs/chain_outputs.yaml
@@ -0,0 +1,7 @@
+resources:
+- name: simple-template
+  type: simple.jinja
+outputs:
+- name: parent_ip
+  # We expect the ip value from simple.jinja, 192.168.0.0
+  value: $(ref.simple-template.ip)
diff --git a/expandybird/test/templates/outputs/chain_outputs_result.yaml b/expandybird/test/templates/outputs/chain_outputs_result.yaml
new file mode 100644
index 000000000..410cdc5df
--- /dev/null
+++ b/expandybird/test/templates/outputs/chain_outputs_result.yaml
@@ -0,0 +1,17 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+layout:
+  outputs:
+  - name: parent_ip
+    value: 192.168.0.0
+  resources:
+  - name: simple-template
+    outputs:
+    - name: ip
+      value: 192.168.0.0
+    resources:
+    - name: simple-name
+      type: simple-instance
+    type: simple.jinja
diff --git a/expandybird/test/templates/outputs/conditional.jinja b/expandybird/test/templates/outputs/conditional.jinja
new file mode 100644
index 000000000..f2c3c09d1
--- /dev/null
+++ b/expandybird/test/templates/outputs/conditional.jinja
@@ -0,0 +1,9 @@
+resources:
+- name: one
+  type: simple-instance
+{# properties['value'] is a refernce, not yet a number. #}
+{# So this shouldn't output anything. #}
+{% if properties['value'] is number %}
+- name: two
+  type: simple-instance
+{% endif %}
diff --git a/expandybird/test/templates/outputs/conditional.yaml b/expandybird/test/templates/outputs/conditional.yaml
new file mode 100644
index 000000000..5e17c147b
--- /dev/null
+++ b/expandybird/test/templates/outputs/conditional.yaml
@@ -0,0 +1,7 @@
+resources:
+- name: one
+  type: output_one.jinja
+- name: conditional
+  type: conditional.jinja
+  properties:
+    value: $(ref.one.one)
diff --git a/expandybird/test/templates/outputs/conditional_result.yaml b/expandybird/test/templates/outputs/conditional_result.yaml
new file mode 100644
index 000000000..eaea94bdb
--- /dev/null
+++ b/expandybird/test/templates/outputs/conditional_result.yaml
@@ -0,0 +1,18 @@
+config:
+  resources:
+  - name: one
+    type: simple-instance
+layout:
+  resources:
+  - name: one
+    outputs:
+    - name: one
+      value: 1
+    type: output_one.jinja
+  - name: conditional
+    properties:
+      value: $(ref.one.one)
+    resources:
+    - name: one
+      type: simple-instance
+    type: conditional.jinja
diff --git a/expandybird/test/templates/outputs/consume_multiple.yaml b/expandybird/test/templates/outputs/consume_multiple.yaml
new file mode 100644
index 000000000..b392c8ae5
--- /dev/null
+++ b/expandybird/test/templates/outputs/consume_multiple.yaml
@@ -0,0 +1,8 @@
+resources:
+- name: simple-consume-template
+  type: one_consume.jinja
+- name: consume-simple
+  type: simple-instance
+  properties:
+    # Get the output value of simple.jinja, we expect 192.168.0.0
+    target: $(ref.simple-consume-template.intermediate_ip)
diff --git a/expandybird/test/templates/outputs/consume_multiple_result.yaml b/expandybird/test/templates/outputs/consume_multiple_result.yaml
new file mode 100644
index 000000000..961b43dd3
--- /dev/null
+++ b/expandybird/test/templates/outputs/consume_multiple_result.yaml
@@ -0,0 +1,32 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+  - name: sub-consume-simple
+    properties:
+      target: 192.168.0.0
+    type: simple-instance
+  - name: consume-simple
+    properties:
+      target: 192.168.0.0
+    type: simple-instance
+layout:
+  resources:
+  - name: simple-consume-template
+    outputs:
+    - name: intermediate_ip
+      value: 192.168.0.0
+    resources:
+    - name: simple-template
+      outputs:
+      - name: ip
+        value: 192.168.0.0
+      resources:
+      - name: simple-name
+        type: simple-instance
+      type: simple.jinja
+    - name: sub-consume-simple
+      type: simple-instance
+    type: one_consume.jinja
+  - name: consume-simple
+    type: simple-instance
diff --git a/expandybird/test/templates/outputs/consume_output.yaml b/expandybird/test/templates/outputs/consume_output.yaml
new file mode 100644
index 000000000..8472ddec0
--- /dev/null
+++ b/expandybird/test/templates/outputs/consume_output.yaml
@@ -0,0 +1,8 @@
+resources:
+- name: simple-template
+  type: simple.jinja
+- name: consume-simple
+  type: simple-instance
+  properties:
+    # Get the output value of simple.jinja, we expect 192.168.0.0
+    target: $(ref.simple-template.ip)
diff --git a/expandybird/test/templates/outputs/consume_output_result.yaml b/expandybird/test/templates/outputs/consume_output_result.yaml
new file mode 100644
index 000000000..73a3f1774
--- /dev/null
+++ b/expandybird/test/templates/outputs/consume_output_result.yaml
@@ -0,0 +1,20 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+  - name: consume-simple
+    properties:
+      target: 192.168.0.0
+    type: simple-instance
+layout:
+  resources:
+  - name: simple-template
+    outputs:
+    - name: ip
+      value: 192.168.0.0
+    resources:
+    - name: simple-name
+      type: simple-instance
+    type: simple.jinja
+  - name: consume-simple
+    type: simple-instance
diff --git a/expandybird/test/templates/outputs/frontend.jinja b/expandybird/test/templates/outputs/frontend.jinja
new file mode 100644
index 000000000..2bfa613e3
--- /dev/null
+++ b/expandybird/test/templates/outputs/frontend.jinja
@@ -0,0 +1,9 @@
+resources:
+- name: {{ env['name'] }}-frontend
+  type: instance_builder.jinja
+  properties:
+    instance-name: {{ env['name'] }}-frontend-vm
+    target-ip: {{ properties['backend-ip'] }}
+outputs:
+- name: ip
+  value: $(ref.{{ env['name'] }}-frontend.ip)
diff --git a/expandybird/test/templates/outputs/instance_builder.jinja b/expandybird/test/templates/outputs/instance_builder.jinja
new file mode 100644
index 000000000..2f4a57b4d
--- /dev/null
+++ b/expandybird/test/templates/outputs/instance_builder.jinja
@@ -0,0 +1,8 @@
+resources:
+- name: {{ properties['instance-name'] }}
+  type: simple-instance
+  properties:
+    target: {{ properties['target-ip'] }}
+outputs:
+- name: ip
+  value: $(ref.{{ properties['instance-name'] }}.network[0].ip)
diff --git a/expandybird/test/templates/outputs/kubernetes.jinja b/expandybird/test/templates/outputs/kubernetes.jinja
new file mode 100644
index 000000000..78fa39902
--- /dev/null
+++ b/expandybird/test/templates/outputs/kubernetes.jinja
@@ -0,0 +1,5 @@
+resources:
+
+outputs:
+- name: type
+  value: my-kubernetes
diff --git a/expandybird/test/templates/outputs/list_output.jinja b/expandybird/test/templates/outputs/list_output.jinja
new file mode 100644
index 000000000..981c61712
--- /dev/null
+++ b/expandybird/test/templates/outputs/list_output.jinja
@@ -0,0 +1,9 @@
+resources:
+- name: simple-name
+  type: simple-instance
+outputs:
+- name: ips
+  value:
+  - 192.168.0.0
+  - 192.168.0.1
+  - 192.168.0.2
diff --git a/expandybird/test/templates/outputs/list_output.yaml b/expandybird/test/templates/outputs/list_output.yaml
new file mode 100644
index 000000000..76c5ccc52
--- /dev/null
+++ b/expandybird/test/templates/outputs/list_output.yaml
@@ -0,0 +1,12 @@
+resources:
+- name: simple-template
+  type: list_output.jinja
+- name: consume-list
+  type: simple-instance
+  properties:
+    # Get the first output value of list_output.jinja, we expect 192.168.0.1
+    first-ip: $(ref.simple-template.ips[1])
+outputs:
+- name: second-ip
+  # We expect the 2nd ip from list_outputs.jinja, 192.168.0.2
+  value: $(ref.simple-template.ips[2])
diff --git a/expandybird/test/templates/outputs/list_output_result.yaml b/expandybird/test/templates/outputs/list_output_result.yaml
new file mode 100644
index 000000000..47f36d7c7
--- /dev/null
+++ b/expandybird/test/templates/outputs/list_output_result.yaml
@@ -0,0 +1,26 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+  - name: consume-list
+    properties:
+      first-ip: 192.168.0.1
+    type: simple-instance
+layout:
+  outputs:
+  - name: second-ip
+    value: 192.168.0.2
+  resources:
+  - name: simple-template
+    outputs:
+    - name: ips
+      value:
+      - 192.168.0.0
+      - 192.168.0.1
+      - 192.168.0.2
+    resources:
+    - name: simple-name
+      type: simple-instance
+    type: list_output.jinja
+  - name: consume-list
+    type: simple-instance
diff --git a/expandybird/test/templates/outputs/one_consume.jinja b/expandybird/test/templates/outputs/one_consume.jinja
new file mode 100644
index 000000000..bfab3e780
--- /dev/null
+++ b/expandybird/test/templates/outputs/one_consume.jinja
@@ -0,0 +1,12 @@
+resources:
+- name: simple-template
+  type: simple.jinja
+- name: sub-consume-simple
+  type: simple-instance
+  properties:
+    # Get the output value of simple.jinja, we expect 192.168.0.0
+    target: $(ref.simple-template.ip)
+outputs:
+- name: intermediate_ip
+  # We expect the ip value from simple.jinja, 192.168.0.0
+  value: $(ref.simple-template.ip)
diff --git a/expandybird/test/templates/outputs/one_simple.jinja b/expandybird/test/templates/outputs/one_simple.jinja
new file mode 100644
index 000000000..17b69f3f9
--- /dev/null
+++ b/expandybird/test/templates/outputs/one_simple.jinja
@@ -0,0 +1,7 @@
+resources:
+- name: simple-template
+  type: simple.jinja
+outputs:
+- name: intermediate_ip
+  # We expect the ip value from simple.jinja, 192.168.0.0
+  value: $(ref.simple-template.ip)
diff --git a/expandybird/test/templates/outputs/output_one.jinja b/expandybird/test/templates/outputs/output_one.jinja
new file mode 100644
index 000000000..53273fa65
--- /dev/null
+++ b/expandybird/test/templates/outputs/output_one.jinja
@@ -0,0 +1,5 @@
+resources:
+
+outputs:
+- name: one
+  value: 1
diff --git a/expandybird/test/templates/outputs/output_template.jinja b/expandybird/test/templates/outputs/output_template.jinja
new file mode 100644
index 000000000..dcce246a7
--- /dev/null
+++ b/expandybird/test/templates/outputs/output_template.jinja
@@ -0,0 +1,5 @@
+resources:
+
+outputs:
+- name: type
+  value: helper.jinja
diff --git a/expandybird/test/templates/outputs/output_template.yaml b/expandybird/test/templates/outputs/output_template.yaml
new file mode 100644
index 000000000..272dad1fe
--- /dev/null
+++ b/expandybird/test/templates/outputs/output_template.yaml
@@ -0,0 +1,5 @@
+resources:
+- name: foo
+  type: output_template.jinja
+- name: bar
+  type: $(ref.foo.type)
diff --git a/expandybird/test/templates/outputs/simple.jinja b/expandybird/test/templates/outputs/simple.jinja
new file mode 100644
index 000000000..db3fcd2ea
--- /dev/null
+++ b/expandybird/test/templates/outputs/simple.jinja
@@ -0,0 +1,6 @@
+resources:
+- name: simple-name
+  type: simple-instance
+outputs:
+- name: ip
+  value: 192.168.0.0
diff --git a/expandybird/test/templates/outputs/simple.yaml b/expandybird/test/templates/outputs/simple.yaml
new file mode 100644
index 000000000..d8f624f47
--- /dev/null
+++ b/expandybird/test/templates/outputs/simple.yaml
@@ -0,0 +1,6 @@
+resources:
+- type: simple-type
+  name: simple-instance
+outputs:
+- name: ip
+  value: 192.168.0.0
diff --git a/expandybird/test/templates/outputs/simple_result.yaml b/expandybird/test/templates/outputs/simple_result.yaml
new file mode 100644
index 000000000..c093d78c2
--- /dev/null
+++ b/expandybird/test/templates/outputs/simple_result.yaml
@@ -0,0 +1,11 @@
+config:
+  resources:
+  - name: simple-instance
+    type: simple-type
+layout:
+  outputs:
+  - name: ip
+    value: 192.168.0.0
+  resources:
+  - name: simple-instance
+    type: simple-type
diff --git a/expandybird/test/templates/outputs/simple_up_down.yaml b/expandybird/test/templates/outputs/simple_up_down.yaml
new file mode 100644
index 000000000..d16d44cd1
--- /dev/null
+++ b/expandybird/test/templates/outputs/simple_up_down.yaml
@@ -0,0 +1,17 @@
+resources:
+- name: frontend
+  type: instance_builder.jinja
+  properties:
+    instance-name: mixer
+    target-ip: $(ref.backend.ip)
+
+- name: backend
+  type: instance_builder.jinja
+  properties:
+    instance-name: workflow
+    target-ip: $(ref.frontend.ip)
+outputs:
+- name: frontend-ip
+  value: $(ref.frontend.ip)
+- name: backend-ip
+  value: $(ref.backend.ip)
diff --git a/expandybird/test/templates/outputs/simple_up_down_result.yaml b/expandybird/test/templates/outputs/simple_up_down_result.yaml
new file mode 100644
index 000000000..e7199fe05
--- /dev/null
+++ b/expandybird/test/templates/outputs/simple_up_down_result.yaml
@@ -0,0 +1,39 @@
+config:
+  resources:
+  - name: mixer
+    properties:
+      target: $(ref.workflow.network[0].ip)
+    type: simple-instance
+  - name: workflow
+    properties:
+      target: $(ref.mixer.network[0].ip)
+    type: simple-instance
+layout:
+  outputs:
+  - name: frontend-ip
+    value: $(ref.mixer.network[0].ip)
+  - name: backend-ip
+    value: $(ref.workflow.network[0].ip)
+  resources:
+  - name: frontend
+    outputs:
+    - name: ip
+      value: $(ref.mixer.network[0].ip)
+    properties:
+      instance-name: mixer
+      target-ip: $(ref.backend.ip)
+    resources:
+    - name: mixer
+      type: simple-instance
+    type: instance_builder.jinja
+  - name: backend
+    outputs:
+    - name: ip
+      value: $(ref.workflow.network[0].ip)
+    properties:
+      instance-name: workflow
+      target-ip: $(ref.frontend.ip)
+    resources:
+    - name: workflow
+      type: simple-instance
+    type: instance_builder.jinja
diff --git a/expandybird/test/templates/outputs/template.yaml b/expandybird/test/templates/outputs/template.yaml
new file mode 100644
index 000000000..4d346d6e1
--- /dev/null
+++ b/expandybird/test/templates/outputs/template.yaml
@@ -0,0 +1,6 @@
+resources:
+- name: simple-template
+  type: simple.jinja
+outputs:
+- name: port
+  value: 88
diff --git a/expandybird/test/templates/outputs/template_result.yaml b/expandybird/test/templates/outputs/template_result.yaml
new file mode 100644
index 000000000..c81d8b287
--- /dev/null
+++ b/expandybird/test/templates/outputs/template_result.yaml
@@ -0,0 +1,17 @@
+config:
+  resources:
+  - name: simple-name
+    type: simple-instance
+layout:
+  outputs:
+  - name: port
+    value: 88
+  resources:
+  - name: simple-template
+    outputs:
+    - name: ip
+      value: 192.168.0.0
+    resources:
+    - name: simple-name
+      type: simple-instance
+    type: simple.jinja
diff --git a/expandybird/test/templates/outputs/type.jinja b/expandybird/test/templates/outputs/type.jinja
new file mode 100644
index 000000000..eb6269ed2
--- /dev/null
+++ b/expandybird/test/templates/outputs/type.jinja
@@ -0,0 +1,8 @@
+resources:
+- name: kubernetes-cluster
+  type: kubernetes.jinja
+- name: sub-thingy
+  type: $(ref.kubernetes-cluster.type)
+outputs:
+- name: type
+  value: $(ref.kubernetes-cluster.type)
diff --git a/expandybird/test/templates/outputs/type.yaml b/expandybird/test/templates/outputs/type.yaml
new file mode 100644
index 000000000..aa49dc9a7
--- /dev/null
+++ b/expandybird/test/templates/outputs/type.yaml
@@ -0,0 +1,5 @@
+resources:
+- name: type-helper
+  type: type.jinja
+- name: thingy
+  type: $(ref.type-helper.type)
diff --git a/expandybird/test/templates/outputs/type_result.yaml b/expandybird/test/templates/outputs/type_result.yaml
new file mode 100644
index 000000000..6ddaf9a52
--- /dev/null
+++ b/expandybird/test/templates/outputs/type_result.yaml
@@ -0,0 +1,23 @@
+config:
+  resources:
+  - name: sub-thingy
+    type: my-kubernetes
+  - name: thingy
+    type: my-kubernetes
+layout:
+  resources:
+  - name: type-helper
+    outputs:
+    - name: type
+      value: my-kubernetes
+    resources:
+    - name: kubernetes-cluster
+      outputs:
+      - name: type
+        value: my-kubernetes
+      type: kubernetes.jinja
+    - name: sub-thingy
+      type: $(ref.kubernetes-cluster.type)
+    type: type.jinja
+  - name: thingy
+    type: $(ref.type-helper.type)
diff --git a/expandybird/test/templates/outputs/up_down.yaml b/expandybird/test/templates/outputs/up_down.yaml
new file mode 100644
index 000000000..6e195f4e2
--- /dev/null
+++ b/expandybird/test/templates/outputs/up_down.yaml
@@ -0,0 +1,14 @@
+resources:
+- name: mixer
+  type: frontend.jinja
+  properties:
+    backend-ip: $(ref.workflow.ip)
+- name: workflow
+  type: backend.jinja
+  properties:
+    frontend-ip: $(ref.mixer.ip)
+outputs:
+- name: frontend-ip
+  value: $(ref.mixer.ip)
+- name: backend-ip
+  value: $(ref.workflow.ip)
diff --git a/expandybird/test/templates/outputs/up_down_result.yaml b/expandybird/test/templates/outputs/up_down_result.yaml
new file mode 100644
index 000000000..c5fcb34fb
--- /dev/null
+++ b/expandybird/test/templates/outputs/up_down_result.yaml
@@ -0,0 +1,55 @@
+config:
+  resources:
+  - name: mixer-frontend-vm
+    properties:
+      target: $(ref.workflow-backend-vm.network[0].ip)
+    type: simple-instance
+  - name: workflow-backend-vm
+    properties:
+      target: $(ref.mixer-frontend-vm.network[0].ip)
+    type: simple-instance
+layout:
+  outputs:
+  - name: frontend-ip
+    value: $(ref.mixer-frontend-vm.network[0].ip)
+  - name: backend-ip
+    value: $(ref.workflow-backend-vm.network[0].ip)
+  resources:
+  - name: mixer
+    outputs:
+    - name: ip
+      value: $(ref.mixer-frontend-vm.network[0].ip)
+    properties:
+      backend-ip: $(ref.workflow.ip)
+    resources:
+    - name: mixer-frontend
+      outputs:
+      - name: ip
+        value: $(ref.mixer-frontend-vm.network[0].ip)
+      properties:
+        instance-name: mixer-frontend-vm
+        target-ip: $(ref.workflow.ip)
+      resources:
+      - name: mixer-frontend-vm
+        type: simple-instance
+      type: instance_builder.jinja
+    type: frontend.jinja
+  - name: workflow
+    outputs:
+    - name: ip
+      value: $(ref.workflow-backend-vm.network[0].ip)
+    properties:
+      frontend-ip: $(ref.mixer.ip)
+    resources:
+    - name: workflow-backend
+      outputs:
+      - name: ip
+        value: $(ref.workflow-backend-vm.network[0].ip)
+      properties:
+        instance-name: workflow-backend-vm
+        target-ip: $(ref.mixer.ip)
+      resources:
+      - name: workflow-backend-vm
+        type: simple-instance
+      type: instance_builder.jinja
+    type: backend.jinja
diff --git a/expandybird/test/templates/outputs/up_down_result_off.yaml b/expandybird/test/templates/outputs/up_down_result_off.yaml
new file mode 100644
index 000000000..d83df4c6a
--- /dev/null
+++ b/expandybird/test/templates/outputs/up_down_result_off.yaml
@@ -0,0 +1,38 @@
+config:
+  resources:
+  - name: mixer-frontend-vm
+    properties:
+      target: $(ref.workflow.ip)
+    type: simple-instance
+  - name: workflow-backend-vm
+    properties:
+      target: $(ref.mixer.ip)
+    type: simple-instance
+layout:
+  resources:
+  - name: mixer
+    properties:
+      backend-ip: $(ref.workflow.ip)
+    resources:
+    - name: mixer-frontend
+      properties:
+        instance-name: mixer-frontend-vm
+        target-ip: $(ref.workflow.ip)
+      resources:
+      - name: mixer-frontend-vm
+        type: simple-instance
+      type: instance_builder.jinja
+    type: frontend.jinja
+  - name: workflow
+    properties:
+      frontend-ip: $(ref.mixer.ip)
+    resources:
+    - name: workflow-backend
+      properties:
+        instance-name: workflow-backend-vm
+        target-ip: $(ref.mixer.ip)
+      resources:
+      - name: workflow-backend-vm
+        type: simple-instance
+      type: instance_builder.jinja
+    type: backend.jinja
diff --git a/expandybird/test/templates/python_multilinefile.py b/expandybird/test/templates/python_multilinefile.py
new file mode 100644
index 000000000..c43409b96
--- /dev/null
+++ b/expandybird/test/templates/python_multilinefile.py
@@ -0,0 +1,22 @@
+# Copyright 2014 Google Inc. All Rights Reserved.
+
+"""Constructs a VM."""
+
+# Verify that both ways of hierarchical imports work.
+from helpers import common
+import helpers.extra.common2
+
+
+def GenerateConfig(evaluation_context):
+  """Generates config of a VM."""
+
+  resource = {}
+  resource['name'] = common.GenerateMachineName('myFrontend', 'prod')
+  resource['type'] = 'compute.v1.instance'
+  resource['properties'] = {
+      'description': evaluation_context.imports[
+          evaluation_context.properties['description-file']],
+      'machineSize': helpers.extra.common2.GenerateMachineSize()
+  }
+
+  return {'resources': [resource]}
diff --git a/expandybird/test/templates/python_multilinefile.yaml b/expandybird/test/templates/python_multilinefile.yaml
new file mode 100644
index 000000000..142892d8a
--- /dev/null
+++ b/expandybird/test/templates/python_multilinefile.yaml
@@ -0,0 +1,8 @@
+imports: ["python_multilinefile.py", "helpers/common.py", "helpers/common2.py", "helpers/__init__.py", "multiline.txt"]
+
+resources:
+- name: python_multilinefile_name
+  type: python_multilinefile.py
+  properties:
+    description-file: multiline.txt
+
diff --git a/expandybird/test/templates/python_multilinefile_result.yaml b/expandybird/test/templates/python_multilinefile_result.yaml
new file mode 100644
index 000000000..590ac7ad6
--- /dev/null
+++ b/expandybird/test/templates/python_multilinefile_result.yaml
@@ -0,0 +1,42 @@
+config:
+  resources:
+  - name: myFrontend-prod
+    properties:
+      description: '-----BEGIN TEST CERT-----
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Lotsof65characterlineswillfollow.Onlyseveralmorecharacterstogo!!
+
+        Thelastlineisntalways65characters.Notsurewhy...
+
+        -----END TEST CERT-----
+
+        '
+      machineSize: big
+    type: compute.v1.instance
+layout:
+  resources:
+  - name: python_multilinefile_name
+    properties:
+      description-file: multiline.txt
+    resources:
+    - name: myFrontend-prod
+      type: compute.v1.instance
+    type: python_multilinefile.py