diff --git a/main.go b/main.go
index 3398a61a..f91a3b24 100644
--- a/main.go
+++ b/main.go
@@ -200,6 +200,10 @@ func main() {
 					Name:  "values",
 					Usage: "additional value files to be merged into the command",
 				},
+				cli.StringFlag{
+					Name:  "output-dir",
+					Usage: "output directory to pass to helm template (helm template --output-dir)",
+				},
 				cli.IntFlag{
 					Name:  "concurrency",
 					Value: 0,
@@ -440,6 +444,10 @@ func (c configImpl) Args() string {
 	return c.c.String("args")
 }
 
+func (c configImpl) OutputDir() string {
+	return c.c.String("output-dir")
+}
+
 func (c configImpl) Concurrency() int {
 	return c.c.Int("concurrency")
 }
diff --git a/pkg/app/app.go b/pkg/app/app.go
index 6f05e459..72c7a88c 100644
--- a/pkg/app/app.go
+++ b/pkg/app/app.go
@@ -45,6 +45,8 @@ type App struct {
 	chdir func(string) error
 
 	remote *remote.Remote
+
+	helmExecer helmexec.Interface
 }
 
 func New(conf ConfigProvider) *App {
@@ -59,6 +61,9 @@ func New(conf ConfigProvider) *App {
 		FileOrDir:   conf.FileOrDir(),
 		ValuesFiles: conf.ValuesFiles(),
 		Set:         conf.Set(),
+		helmExecer: helmexec.New(conf.Logger(), conf.KubeContext(), &helmexec.ShellRunner{
+			Logger: conf.Logger(),
+		}),
 	})
 }
 
@@ -274,7 +279,7 @@ func (a *App) visitStates(fileOrDir string, defOpts LoadOpts, converge func(*sta
 
 		ctx := context{a, st}
 
-		helm := helmexec.New(a.Logger, a.KubeContext)
+		helm := a.helmExecer
 
 		if err != nil {
 			switch stateLoadErr := err.(type) {
diff --git a/pkg/app/app_test.go b/pkg/app/app_test.go
index 77fd5e84..2c132a9d 100644
--- a/pkg/app/app_test.go
+++ b/pkg/app/app_test.go
@@ -1,6 +1,7 @@
 package app
 
 import (
+	"bytes"
 	"fmt"
 	"github.com/roboll/helmfile/pkg/helmexec"
 	"github.com/roboll/helmfile/pkg/state"
@@ -8,8 +9,10 @@ import (
 	"os"
 	"path/filepath"
 	"reflect"
+	"regexp"
 	"testing"
 
+	"go.uber.org/zap"
 	"gotest.tools/env"
 )
 
@@ -1738,3 +1741,158 @@ services:
 		}
 	}
 }
+
+type configImpl struct {
+}
+
+func (c configImpl) Values() []string {
+	return []string{}
+}
+
+func (c configImpl) Args() string {
+	return "some args"
+}
+
+func (c configImpl) SkipDeps() bool {
+	return true
+}
+
+func (c configImpl) OutputDir() string {
+	return "output/subdir"
+}
+
+func (c configImpl) Concurrency() int {
+	return 1
+}
+
+// Mocking the command-line runner
+
+type mockRunner struct {
+	output []byte
+	err    error
+}
+
+func (mock *mockRunner) Execute(cmd string, args []string, env map[string]string) ([]byte, error) {
+	return []byte{}, nil
+}
+
+func MockExecer(logger *zap.SugaredLogger, kubeContext string) helmexec.Interface {
+	execer := helmexec.New(logger, kubeContext, &mockRunner{})
+	return execer
+}
+
+// mocking helmexec.Interface
+
+type listKey struct {
+	filter string
+	flags  string
+}
+
+type mockHelmExec struct {
+	templated []mockTemplates
+
+	updateDepsCallbacks map[string]func(string) error
+}
+
+type mockTemplates struct {
+	flags []string
+}
+
+func (helm *mockHelmExec) TemplateRelease(chart string, flags ...string) error {
+	helm.templated = append(helm.templated, mockTemplates{flags: flags})
+	return nil
+}
+
+func (helm *mockHelmExec) UpdateDeps(chart string) error {
+	return nil
+}
+
+func (helm *mockHelmExec) BuildDeps(chart string) error {
+	return nil
+}
+
+func (helm *mockHelmExec) SetExtraArgs(args ...string) {
+	return
+}
+func (helm *mockHelmExec) SetHelmBinary(bin string) {
+	return
+}
+func (helm *mockHelmExec) AddRepo(name, repository, certfile, keyfile, username, password string) error {
+	return nil
+}
+func (helm *mockHelmExec) UpdateRepo() error {
+	return nil
+}
+func (helm *mockHelmExec) SyncRelease(context helmexec.HelmContext, name, chart string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) DiffRelease(context helmexec.HelmContext, name, chart string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) ReleaseStatus(context helmexec.HelmContext, release string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) DeleteRelease(context helmexec.HelmContext, name string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) List(context helmexec.HelmContext, filter string, flags ...string) (string, error) {
+	return "", nil
+}
+func (helm *mockHelmExec) DecryptSecret(context helmexec.HelmContext, name string, flags ...string) (string, error) {
+	return "", nil
+}
+func (helm *mockHelmExec) TestRelease(context helmexec.HelmContext, name string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) Fetch(chart string, flags ...string) error {
+	return nil
+}
+func (helm *mockHelmExec) Lint(chart string, flags ...string) error {
+	return nil
+}
+
+func TestTemplate_SingleStateFile(t *testing.T) {
+	files := map[string]string{
+		"/path/to/helmfile.yaml": `
+releases:
+- name: myrelease1
+  chart: mychart1
+- name: myrelease2
+  chart: mychart1
+`,
+	}
+
+	var helm = &mockHelmExec{}
+	var wantReleases = []mockTemplates{
+		{[]string{"--name", "myrelease1", "--output-dir", "output/subdir/helmfile-[a-z0-9]{8}-myrelease1"}},
+		{[]string{"--name", "myrelease2", "--output-dir", "output/subdir/helmfile-[a-z0-9]{8}-myrelease2"}},
+	}
+
+	var buffer bytes.Buffer
+	logger := helmexec.NewLogger(&buffer, "debug")
+
+	app := appWithFs(&App{
+		glob:        filepath.Glob,
+		abs:         filepath.Abs,
+		KubeContext: "default",
+		Env:         "default",
+		Logger:      logger,
+		helmExecer:  helm,
+	}, files)
+	app.Template(configImpl{})
+
+	for i := range wantReleases {
+		for j := range wantReleases[i].flags {
+			if j == 3 {
+				matched, _ := regexp.Match(wantReleases[i].flags[j], []byte(helm.templated[i].flags[j]))
+				if !matched {
+					t.Errorf("HelmState.TemplateReleases() = [%v], want %v", helm.templated[i].flags[j], wantReleases[i].flags[j])
+				}
+			} else if wantReleases[i].flags[j] != helm.templated[i].flags[j] {
+				t.Errorf("HelmState.TemplateReleases() = [%v], want %v", helm.templated[i].flags[j], wantReleases[i].flags[j])
+			}
+		}
+
+	}
+
+}
diff --git a/pkg/app/config.go b/pkg/app/config.go
index 654b6428..a6e1b479 100644
--- a/pkg/app/config.go
+++ b/pkg/app/config.go
@@ -109,6 +109,7 @@ type TemplateConfigProvider interface {
 
 	Values() []string
 	SkipDeps() bool
+	OutputDir() string
 
 	concurrencyConfig
 }
diff --git a/pkg/app/run.go b/pkg/app/run.go
index dc2f8058..a3c7b61e 100644
--- a/pkg/app/run.go
+++ b/pkg/app/run.go
@@ -270,7 +270,7 @@ func (r *Run) Template(c TemplateConfigProvider) []error {
 	}
 
 	args := argparser.GetArgs(c.Args(), state)
-	return state.TemplateReleases(helm, c.Values(), args, c.Concurrency())
+	return state.TemplateReleases(helm, c.OutputDir(), c.Values(), args, c.Concurrency())
 }
 
 func (r *Run) Test(c TestConfigProvider) []error {
diff --git a/pkg/helmexec/exec.go b/pkg/helmexec/exec.go
index 62b8c681..52a1d596 100644
--- a/pkg/helmexec/exec.go
+++ b/pkg/helmexec/exec.go
@@ -44,14 +44,12 @@ func NewLogger(writer io.Writer, logLevel string) *zap.SugaredLogger {
 }
 
 // New for running helm commands
-func New(logger *zap.SugaredLogger, kubeContext string) *execer {
+func New(logger *zap.SugaredLogger, kubeContext string, runner Runner) *execer {
 	return &execer{
 		helmBinary:  command,
 		logger:      logger,
 		kubeContext: kubeContext,
-		runner: &ShellRunner{
-			logger: logger,
-		},
+		runner:      runner,
 	}
 }
 
diff --git a/pkg/helmexec/exec_test.go b/pkg/helmexec/exec_test.go
index d18c5cfd..5fab7d60 100644
--- a/pkg/helmexec/exec_test.go
+++ b/pkg/helmexec/exec_test.go
@@ -24,8 +24,7 @@ func (mock *mockRunner) Execute(cmd string, args []string, env map[string]string
 }
 
 func MockExecer(logger *zap.SugaredLogger, kubeContext string) *execer {
-	execer := New(logger, kubeContext)
-	execer.runner = &mockRunner{}
+	execer := New(logger, kubeContext, &mockRunner{})
 	return execer
 }
 
@@ -34,7 +33,9 @@ func MockExecer(logger *zap.SugaredLogger, kubeContext string) *execer {
 func TestNewHelmExec(t *testing.T) {
 	buffer := bytes.NewBufferString("something")
 	logger := NewLogger(buffer, "debug")
-	helm := New(logger, "dev")
+	helm := New(logger, "dev", &ShellRunner{
+		Logger: logger,
+	})
 	if helm.kubeContext != "dev" {
 		t.Error("helmexec.New() - kubeContext")
 	}
@@ -47,7 +48,11 @@ func TestNewHelmExec(t *testing.T) {
 }
 
 func Test_SetExtraArgs(t *testing.T) {
-	helm := New(NewLogger(os.Stdout, "info"), "dev")
+	buffer := bytes.NewBufferString("something")
+	logger := NewLogger(buffer, "debug")
+	helm := New(NewLogger(os.Stdout, "info"), "dev", &ShellRunner{
+		Logger: logger,
+	})
 	helm.SetExtraArgs()
 	if len(helm.extra) != 0 {
 		t.Error("helmexec.SetExtraArgs() - passing no arguments should not change extra field")
@@ -63,7 +68,11 @@ func Test_SetExtraArgs(t *testing.T) {
 }
 
 func Test_SetHelmBinary(t *testing.T) {
-	helm := New(NewLogger(os.Stdout, "info"), "dev")
+	buffer := bytes.NewBufferString("something")
+	logger := NewLogger(buffer, "debug")
+	helm := New(NewLogger(os.Stdout, "info"), "dev", &ShellRunner{
+		Logger: logger,
+	})
 	if helm.helmBinary != "helm" {
 		t.Error("helmexec.command - default command is not helm")
 	}
@@ -478,3 +487,16 @@ func Test_mergeEnv(t *testing.T) {
 		t.Errorf("mergeEnv()\nactual = %v\nexpect = %v", actual, expected)
 	}
 }
+
+func Test_Template(t *testing.T) {
+	var buffer bytes.Buffer
+	logger := NewLogger(&buffer, "debug")
+	helm := MockExecer(logger, "dev")
+	helm.TemplateRelease("path/to/chart", "--values", "file.yml")
+	expected := `exec: helm template path/to/chart --values file.yml --kube-context dev
+exec: helm template path/to/chart --values file.yml --kube-context dev: 
+`
+	if buffer.String() != expected {
+		t.Errorf("helmexec.Template()\nactual = %v\nexpect = %v", buffer.String(), expected)
+	}
+}
diff --git a/pkg/helmexec/runner.go b/pkg/helmexec/runner.go
index de2fe595..2892afc3 100644
--- a/pkg/helmexec/runner.go
+++ b/pkg/helmexec/runner.go
@@ -25,7 +25,7 @@ type Runner interface {
 type ShellRunner struct {
 	Dir string
 
-	logger *zap.SugaredLogger
+	Logger *zap.SugaredLogger
 }
 
 // Execute a shell command
@@ -33,7 +33,7 @@ func (shell ShellRunner) Execute(cmd string, args []string, env map[string]strin
 	preparedCmd := exec.Command(cmd, args...)
 	preparedCmd.Dir = shell.Dir
 	preparedCmd.Env = mergeEnv(os.Environ(), env)
-	return combinedOutput(preparedCmd, shell.logger)
+	return combinedOutput(preparedCmd, shell.Logger)
 }
 
 func combinedOutput(c *exec.Cmd, logger *zap.SugaredLogger) ([]byte, error) {
diff --git a/pkg/state/create.go b/pkg/state/create.go
index 7447be6b..c63ec813 100644
--- a/pkg/state/create.go
+++ b/pkg/state/create.go
@@ -185,7 +185,9 @@ func (st *HelmState) loadEnvValues(name string, ctxEnv *environment.Environment,
 		}
 
 		if len(envSpec.Secrets) > 0 {
-			helm := helmexec.New(st.logger, "")
+			helm := helmexec.New(st.logger, "", &helmexec.ShellRunner{
+				Logger: st.logger,
+			})
 
 			var envSecretFiles []string
 			for _, urlOrPath := range envSpec.Secrets {
diff --git a/pkg/state/state.go b/pkg/state/state.go
index 1654fd48..e92b878e 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -1,8 +1,11 @@
 package state
 
 import (
+	"crypto/sha1"
+	"encoding/hex"
 	"errors"
 	"fmt"
+	"io"
 	"io/ioutil"
 	"os"
 	"path"
@@ -534,7 +537,7 @@ func (st *HelmState) downloadCharts(helm helmexec.Interface, dir string, concurr
 }
 
 // TemplateReleases wrapper for executing helm template on the releases
-func (st *HelmState) TemplateReleases(helm helmexec.Interface, additionalValues []string, args []string, workerLimit int) []error {
+func (st *HelmState) TemplateReleases(helm helmexec.Interface, outputDir string, additionalValues []string, args []string, workerLimit int) []error {
 	// Reset the extra args if already set, not to break `helm fetch` by adding the args intended for `lint`
 	helm.SetExtraArgs()
 
@@ -569,6 +572,7 @@ func (st *HelmState) TemplateReleases(helm helmexec.Interface, additionalValues
 		if err != nil {
 			errs = append(errs, err)
 		}
+
 		for _, value := range additionalValues {
 			valfile, err := filepath.Abs(value)
 			if err != nil {
@@ -581,6 +585,17 @@ func (st *HelmState) TemplateReleases(helm helmexec.Interface, additionalValues
 			flags = append(flags, "--values", valfile)
 		}
 
+		if len(outputDir) > 0 {
+			releaseOutputDir, err := st.GenerateOutputDir(outputDir, release)
+			if err != nil {
+				errs = append(errs, err)
+			}
+
+			flags = append(flags, "--output-dir", releaseOutputDir)
+			st.logger.Debugf("Generating templates to : %s\n", releaseOutputDir)
+			os.Mkdir(releaseOutputDir, 0755)
+		}
+
 		if len(errs) == 0 {
 			if err := helm.TemplateRelease(temp[release.Name], flags...); err != nil {
 				errs = append(errs, err)
@@ -1560,3 +1575,28 @@ func (hf *SubHelmfileSpec) UnmarshalYAML(unmarshal func(interface{}) error) erro
 	}
 	return nil
 }
+
+func (st *HelmState) GenerateOutputDir(outputDir string, release ReleaseSpec) (string, error) {
+	// get absolute path of state file to generate a hash
+	// use this hash to write helm output in a specific directory by state file and release name
+	// ie. in a directory named stateFileName-stateFileHash-releaseName
+	stateAbsPath, err := filepath.Abs(st.FilePath)
+	if err != nil {
+		return stateAbsPath, err
+	}
+
+	hasher := sha1.New()
+	io.WriteString(hasher, stateAbsPath)
+
+	var stateFileExtension = filepath.Ext(st.FilePath)
+	var stateFileName = st.FilePath[0 : len(st.FilePath)-len(stateFileExtension)]
+
+	var sb strings.Builder
+	sb.WriteString(stateFileName)
+	sb.WriteString("-")
+	sb.WriteString(hex.EncodeToString(hasher.Sum(nil))[:8])
+	sb.WriteString("-")
+	sb.WriteString(release.Name)
+
+	return path.Join(outputDir, sb.String()), nil
+}
diff --git a/pkg/state/state_test.go b/pkg/state/state_test.go
index 8c039c73..4400773f 100644
--- a/pkg/state/state_test.go
+++ b/pkg/state/state_test.go
@@ -524,7 +524,9 @@ func TestHelmState_flagsForUpgrade(t *testing.T) {
 				Releases:          []ReleaseSpec{*tt.release},
 				HelmDefaults:      tt.defaults,
 			}
-			helm := helmexec.New(logger, "default")
+			helm := helmexec.New(logger, "default", &helmexec.ShellRunner{
+				Logger: logger,
+			})
 			args, err := state.flagsForUpgrade(helm, tt.release, 0)
 			if err != nil {
 				t.Errorf("unexpected error flagsForUpgade: %v", err)