diff --git a/nodes/core/core/80-template.html b/nodes/core/core/80-template.html
index 94fcd453f..56c68f3e8 100644
--- a/nodes/core/core/80-template.html
+++ b/nodes/core/core/80-template.html
@@ -42,6 +42,7 @@
         <select id="node-input-output" style="width:180px;">
             <option value="str" data-i18n="template.label.plain"></option>
             <option value="json" data-i18n="template.label.json"></option>
+            <option value="yaml" data-i18n="template.label.yaml"></option>
         </select>
     </div>
 
diff --git a/nodes/core/core/80-template.js b/nodes/core/core/80-template.js
index 85efaccbe..d39c76713 100644
--- a/nodes/core/core/80-template.js
+++ b/nodes/core/core/80-template.js
@@ -17,6 +17,8 @@
 module.exports = function(RED) {
     "use strict";
     var mustache = require("mustache");
+    var yaml = require("js-yaml");
+
 
     /**
      * Custom Mustache Context capable to resolve message property and node
@@ -80,6 +82,9 @@ module.exports = function(RED) {
                 if (node.outputFormat === "json") {
                     value = JSON.parse(value);
                 }
+                if (node.outputFormat === "yaml") {
+                    value = yaml.load(value);
+                }
 
                 if (node.fieldType === 'msg') {
                     RED.util.setMessageProperty(msg,node.field,value);
diff --git a/nodes/core/locales/en-US/messages.json b/nodes/core/locales/en-US/messages.json
index 6728db7c1..a4a9cc308 100644
--- a/nodes/core/locales/en-US/messages.json
+++ b/nodes/core/locales/en-US/messages.json
@@ -195,6 +195,7 @@
             "mustache": "Mustache template",
             "plain": "Plain text",
             "json": "Parsed JSON",
+            "yaml": "Parsed YAML",
             "none": "none"
         },
         "templatevalue": "This is the payload: {{payload}} !"