diff --git a/docs/yml.md b/docs/yml.md
index 3096ba835..bd6914f8a 100644
--- a/docs/yml.md
+++ b/docs/yml.md
@@ -120,6 +120,21 @@ environment:
   - SESSION_SECRET
 ```
 
+### env_file
+
+Add environment variables from a file. Can be a single value or a list.
+
+Environment variables specified in `environment` override these values.
+
+```
+env_file:
+  - .env
+```
+
+```
+RACK_ENV: development
+```
+
 ### net
 
 Networking mode. Use the same values as the docker client `--net` parameter.
diff --git a/fig/service.py b/fig/service.py
index 645b6adfc..6622db83a 100644
--- a/fig/service.py
+++ b/fig/service.py
@@ -15,7 +15,7 @@ from .progress_stream import stream_output, StreamOutputError
 log = logging.getLogger(__name__)
 
 
-DOCKER_CONFIG_KEYS = ['image', 'command', 'hostname', 'domainname', 'user', 'detach', 'stdin_open', 'tty', 'mem_limit', 'ports', 'environment', 'dns', 'volumes', 'entrypoint', 'privileged', 'volumes_from', 'net', 'working_dir', 'restart', 'cap_add', 'cap_drop']
+DOCKER_CONFIG_KEYS = ['image', 'command', 'hostname', 'domainname', 'user', 'detach', 'stdin_open', 'tty', 'mem_limit', 'ports', 'environment', 'env_file', 'dns', 'volumes', 'entrypoint', 'privileged', 'volumes_from', 'net', 'working_dir', 'restart', 'cap_add', 'cap_drop']
 DOCKER_CONFIG_HINTS = {
     'link'      : 'links',
     'port'      : 'ports',
@@ -372,10 +372,7 @@ class Service(object):
                 (parse_volume_spec(v).internal, {})
                 for v in container_options['volumes'])
 
-        if 'environment' in container_options:
-            if isinstance(container_options['environment'], list):
-                container_options['environment'] = dict(split_env(e) for e in container_options['environment'])
-            container_options['environment'] = dict(resolve_env(k, v) for k, v in container_options['environment'].iteritems())
+        container_options['environment'] = merge_environment(container_options)
 
         if self.can_be_built():
             if len(self.client.images(name=self._build_tag_name())) == 0:
@@ -383,7 +380,7 @@ class Service(object):
             container_options['image'] = self._build_tag_name()
 
         # Delete options which are only used when starting
-        for key in ['privileged', 'net', 'dns', 'restart', 'cap_add', 'cap_drop']:
+        for key in ['privileged', 'net', 'dns', 'restart', 'cap_add', 'cap_drop', 'env_file']:
             if key in container_options:
                 del container_options[key]
 
@@ -543,6 +540,25 @@ def split_port(port):
     return internal_port, (external_ip, external_port or None)
 
 
+def merge_environment(options):
+    env = {}
+
+    if 'env_file' in options:
+        if isinstance(options['env_file'], list):
+            for f in options['env_file']:
+                env.update(env_vars_from_file(f))
+        else:
+            env.update(env_vars_from_file(options['env_file']))
+
+    if 'environment' in options:
+        if isinstance(options['environment'], list):
+            env.update(dict(split_env(e) for e in options['environment']))
+        else:
+            env.update(options['environment'])
+
+    return dict(resolve_env(k, v) for k, v in env.iteritems())
+
+
 def split_env(env):
     if '=' in env:
         return env.split('=', 1)
@@ -557,3 +573,16 @@ def resolve_env(key, val):
         return key, os.environ[key]
     else:
         return key, ''
+
+
+def env_vars_from_file(filename):
+    """
+    Read in a line delimited file of environment variables.
+    """
+    env = {}
+    for line in open(filename, 'r'):
+        line = line.strip()
+        if line and not line.startswith('#'):
+            k, v = split_env(line)
+            env[k] = v
+    return env
diff --git a/tests/fixtures/env/one.env b/tests/fixtures/env/one.env
new file mode 100644
index 000000000..75a4f62ff
--- /dev/null
+++ b/tests/fixtures/env/one.env
@@ -0,0 +1,4 @@
+ONE=2
+TWO=1
+THREE=3
+FOO=bar
diff --git a/tests/fixtures/env/resolve.env b/tests/fixtures/env/resolve.env
new file mode 100644
index 000000000..720520d29
--- /dev/null
+++ b/tests/fixtures/env/resolve.env
@@ -0,0 +1,4 @@
+FILE_DEF=F1
+FILE_DEF_EMPTY=
+ENV_DEF
+NO_DEF
diff --git a/tests/fixtures/env/two.env b/tests/fixtures/env/two.env
new file mode 100644
index 000000000..3b21871a0
--- /dev/null
+++ b/tests/fixtures/env/two.env
@@ -0,0 +1,2 @@
+FOO=baz
+DOO=dah
diff --git a/tests/integration/service_test.py b/tests/integration/service_test.py
index 9d3e0b126..3eae62ae6 100644
--- a/tests/integration/service_test.py
+++ b/tests/integration/service_test.py
@@ -397,6 +397,12 @@ class ServiceTest(DockerClientTestCase):
         for k,v in {'NORMAL': 'F1', 'CONTAINS_EQUALS': 'F=2', 'TRAILING_EQUALS': ''}.iteritems():
             self.assertEqual(env[k], v)
 
+    def test_env_from_file_combined_with_env(self):
+        service = self.create_service('web', environment=['ONE=1', 'TWO=2', 'THREE=3'], env_file=['tests/fixtures/env/one.env', 'tests/fixtures/env/two.env'])
+        env = service.start_container().environment
+        for k,v in {'ONE': '1', 'TWO': '2', 'THREE': '3', 'FOO': 'baz', 'DOO': 'dah'}.iteritems():
+            self.assertEqual(env[k], v)
+
     def test_resolve_env(self):
         service = self.create_service('web', environment={'FILE_DEF': 'F1', 'FILE_DEF_EMPTY': '', 'ENV_DEF': None, 'NO_DEF': None})
         os.environ['FILE_DEF'] = 'E1'
diff --git a/tests/unit/service_test.py b/tests/unit/service_test.py
index 119b41440..e562ebc37 100644
--- a/tests/unit/service_test.py
+++ b/tests/unit/service_test.py
@@ -247,3 +247,72 @@ class ServiceVolumesTest(unittest.TestCase):
         self.assertEqual(
             binding,
             ('/home/user', dict(bind='/home/user', ro=False)))
+
+class ServiceEnvironmentTest(unittest.TestCase):
+
+    def setUp(self):
+        self.mock_client = mock.create_autospec(docker.Client)
+        self.mock_client.containers.return_value = []
+
+    def test_parse_environment(self):
+        service = Service('foo',
+                environment=['NORMAL=F1', 'CONTAINS_EQUALS=F=2', 'TRAILING_EQUALS='],
+                client=self.mock_client,
+            )
+        options = service._get_container_create_options({})
+        self.assertEqual(
+            options['environment'],
+            {'NORMAL': 'F1', 'CONTAINS_EQUALS': 'F=2', 'TRAILING_EQUALS': ''}
+            )
+
+    @mock.patch.dict(os.environ)
+    def test_resolve_environment(self):
+        os.environ['FILE_DEF'] = 'E1'
+        os.environ['FILE_DEF_EMPTY'] = 'E2'
+        os.environ['ENV_DEF'] = 'E3'
+        service = Service('foo',
+                environment={'FILE_DEF': 'F1', 'FILE_DEF_EMPTY': '', 'ENV_DEF': None, 'NO_DEF': None},
+                client=self.mock_client,
+            )
+        options = service._get_container_create_options({})
+        self.assertEqual(
+            options['environment'],
+            {'FILE_DEF': 'F1', 'FILE_DEF_EMPTY': '', 'ENV_DEF': 'E3', 'NO_DEF': ''}
+            )
+
+    def test_env_from_file(self):
+        service = Service('foo',
+                env_file='tests/fixtures/env/one.env',
+                client=self.mock_client,
+            )
+        options = service._get_container_create_options({})
+        self.assertEqual(
+            options['environment'],
+            {'ONE': '2', 'TWO': '1', 'THREE': '3', 'FOO': 'bar'}
+            )
+
+    def test_env_from_multiple_files(self):
+        service = Service('foo',
+                env_file=['tests/fixtures/env/one.env', 'tests/fixtures/env/two.env'],
+                client=self.mock_client,
+            )
+        options = service._get_container_create_options({})
+        self.assertEqual(
+            options['environment'],
+            {'ONE': '2', 'TWO': '1', 'THREE': '3', 'FOO': 'baz', 'DOO': 'dah'}
+            )
+
+    @mock.patch.dict(os.environ)
+    def test_resolve_environment_from_file(self):
+        os.environ['FILE_DEF'] = 'E1'
+        os.environ['FILE_DEF_EMPTY'] = 'E2'
+        os.environ['ENV_DEF'] = 'E3'
+        service = Service('foo',
+                env_file=['tests/fixtures/env/resolve.env'],
+                client=self.mock_client,
+            )
+        options = service._get_container_create_options({})
+        self.assertEqual(
+            options['environment'],
+            {'FILE_DEF': 'F1', 'FILE_DEF_EMPTY': '', 'ENV_DEF': 'E3', 'NO_DEF': ''}
+            )