diff --git a/pkg/app/desired_state_file_loader.go b/pkg/app/desired_state_file_loader.go
index be176bf9..c81e770b 100644
--- a/pkg/app/desired_state_file_loader.go
+++ b/pkg/app/desired_state_file_loader.go
@@ -55,7 +55,7 @@ func (ld *desiredStateLoader) Load(f string, opts LoadOpts) (*state.HelmState, e
 		storage := state.NewStorage(opts.CalleePath, ld.logger, ld.fs)
 		envld := state.NewEnvironmentValuesLoader(storage, ld.fs, ld.logger, ld.remote)
 		handler := state.MissingFileHandlerError
-		vals, err := envld.LoadEnvironmentValues(&handler, args, environment.New(ld.env), ld.env)
+		vals, err := envld.LoadEnvironmentValues(&handler, args, environment.New(ld.env), ld.env, nil)
 		if err != nil {
 			return nil, err
 		}
diff --git a/pkg/state/create.go b/pkg/state/create.go
index 606134fd..a984cbdf 100644
--- a/pkg/state/create.go
+++ b/pkg/state/create.go
@@ -460,7 +460,7 @@ func (st *HelmState) loadValuesEntries(missingFileHandler *string, entries []any
 	valuesEntries := append([]any{}, entries...)
 	ld := NewEnvironmentValuesLoader(st.storage(), st.fs, st.logger, remote)
 	var err error
-	envVals, err = ld.LoadEnvironmentValues(missingFileHandler, valuesEntries, ctxEnv, envName)
+	envVals, err = ld.LoadEnvironmentValues(missingFileHandler, valuesEntries, ctxEnv, envName, st.Features)
 	if err != nil {
 		return nil, err
 	}
diff --git a/pkg/state/envvals_loader.go b/pkg/state/envvals_loader.go
index 731cc70d..9292933a 100644
--- a/pkg/state/envvals_loader.go
+++ b/pkg/state/envvals_loader.go
@@ -3,6 +3,7 @@ package state
 import (
 	"fmt"
 	"path/filepath"
+	"slices"
 	"strings"
 
 	"dario.cat/mergo"
@@ -36,13 +37,15 @@ func NewEnvironmentValuesLoader(storage *Storage, fs *filesystem.FileSystem, log
 	}
 }
 
-func (ld *EnvironmentValuesLoader) LoadEnvironmentValues(missingFileHandler *string, valuesEntries []any, ctxEnv *environment.Environment, envName string) (map[string]any, error) {
+func (ld *EnvironmentValuesLoader) LoadEnvironmentValues(missingFileHandler *string, valuesEntries []any, ctxEnv *environment.Environment, envName string, features []string) (map[string]any, error) {
 	var (
 		result    = map[string]any{}
 		hclLoader = hcllang.NewHCLLoader(ld.fs, ld.logger)
 		err       error
 	)
 
+	layeredValues := slices.Contains(features, FeatureLayeredEnvironmentValues)
+
 	for _, entry := range valuesEntries {
 		maps := []any{}
 
@@ -65,7 +68,14 @@ func (ld *EnvironmentValuesLoader) LoadEnvironmentValues(missingFileHandler *str
 				if strings.HasSuffix(f, ".hcl") {
 					hclLoader.AddFile(f)
 				} else {
-					tmplData := NewEnvironmentTemplateData(env, "", env.Values)
+					values := env.Values
+					if layeredValues {
+						values, err = mapMerge(values, []any{result})
+						if err != nil {
+							return nil, err
+						}
+					}
+					tmplData := NewEnvironmentTemplateData(env, "", values)
 					r := tmpl.NewFileRenderer(ld.fs, filepath.Dir(f), tmplData)
 					bytes, err := r.RenderToBytes(f)
 					if err != nil {
diff --git a/pkg/state/envvals_loader_test.go b/pkg/state/envvals_loader_test.go
index 764ada78..02ad2e4c 100644
--- a/pkg/state/envvals_loader_test.go
+++ b/pkg/state/envvals_loader_test.go
@@ -29,7 +29,7 @@ func newLoader() *EnvironmentValuesLoader {
 func TestEnvValsLoad_SingleValuesFile(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.5.yaml"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.5.yaml"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -87,7 +87,7 @@ func TestEnvValsLoad_EnvironmentNameFile(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.6.yaml.gotmpl"}, tt.env, tt.envName)
+			actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.6.yaml.gotmpl"}, tt.env, tt.envName, nil)
 			if err != nil {
 				t.Fatal(err)
 			}
@@ -103,7 +103,7 @@ func TestEnvValsLoad_EnvironmentNameFile(t *testing.T) {
 func TestEnvValsLoad_SingleValuesFileRemote(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"git::https://github.com/helm/helm.git@cmd/helm/testdata/output/values.yaml?ref=v3.8.1"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"git::https://github.com/helm/helm.git@cmd/helm/testdata/output/values.yaml?ref=v3.8.1"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -121,7 +121,7 @@ func TestEnvValsLoad_SingleValuesFileRemote(t *testing.T) {
 func TestEnvValsLoad_OverwriteNilValue_Issue1150(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.1.yaml", "testdata/values.2.yaml"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.1.yaml", "testdata/values.2.yaml"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -143,7 +143,7 @@ func TestEnvValsLoad_OverwriteNilValue_Issue1150(t *testing.T) {
 func TestEnvValsLoad_OverwriteWithNilValue_Issue1154(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.3.yaml", "testdata/values.4.yaml"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.3.yaml", "testdata/values.4.yaml"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -166,7 +166,7 @@ func TestEnvValsLoad_OverwriteWithNilValue_Issue1154(t *testing.T) {
 func TestEnvValsLoad_OverwriteEmptyValue_Issue1168(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/issues/1168/addons.yaml", "testdata/issues/1168/addons2.yaml"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/issues/1168/addons.yaml", "testdata/issues/1168/addons2.yaml"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -191,7 +191,7 @@ func TestEnvValsLoad_OverwriteEmptyValue_Issue1168(t *testing.T) {
 func TestEnvValsLoad_MultiHCL(t *testing.T) {
 	l := newLoader()
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.7.hcl", "testdata/values.8.hcl"}, nil, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.7.hcl", "testdata/values.8.hcl"}, nil, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -234,7 +234,7 @@ func TestEnvValsLoad_EnvironmentValues(t *testing.T) {
 	env := environment.New("test")
 	env.Values["foo"] = "bar"
 
-	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.9.yaml.gotmpl"}, env, "")
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/values.9.yaml.gotmpl"}, env, "", nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -247,3 +247,22 @@ func TestEnvValsLoad_EnvironmentValues(t *testing.T) {
 		t.Error(diff)
 	}
 }
+
+func TestEnvValsLoad_LayeredValues(t *testing.T) {
+	l := newLoader()
+
+	actual, err := l.LoadEnvironmentValues(nil, []any{"testdata/layered.1.yaml", "testdata/layered.2.yaml.gotmpl", "testdata/layered.3.yaml.gotmpl"}, nil, "", []string{FeatureLayeredEnvironmentValues})
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	expected := map[string]any{
+		"somevalue":      string("foo"),
+		"someothervalue": string("new foo"),
+		"greeting":       string("hello new foo"),
+	}
+
+	if diff := cmp.Diff(expected, actual); diff != "" {
+		t.Error(diff)
+	}
+}
diff --git a/pkg/state/features.go b/pkg/state/features.go
new file mode 100644
index 00000000..bd3bdc64
--- /dev/null
+++ b/pkg/state/features.go
@@ -0,0 +1,6 @@
+package state
+
+const (
+	// FeatureLayeredEnvironmentValues is the feature flag for layered environment values
+	FeatureLayeredEnvironmentValues = "layeredEnvironmentValues"
+)
diff --git a/pkg/state/state.go b/pkg/state/state.go
index d8e4013c..261b4a4f 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -89,6 +89,8 @@ type ReleaseSetSpec struct {
 	MissingFileHandlerConfig *MissingFileHandlerConfig `yaml:"missingFileHandlerConfig,omitempty"`
 
 	LockFile string `yaml:"lockFilePath,omitempty"`
+
+	Features []string `yaml:"features,omitempty"`
 }
 
 type MissingFileHandlerConfig struct {
diff --git a/pkg/state/testdata/layered.1.yaml b/pkg/state/testdata/layered.1.yaml
new file mode 100644
index 00000000..29cd3cbb
--- /dev/null
+++ b/pkg/state/testdata/layered.1.yaml
@@ -0,0 +1,2 @@
+somevalue: foo
+greeting: hello
diff --git a/pkg/state/testdata/layered.2.yaml.gotmpl b/pkg/state/testdata/layered.2.yaml.gotmpl
new file mode 100644
index 00000000..3f7744c0
--- /dev/null
+++ b/pkg/state/testdata/layered.2.yaml.gotmpl
@@ -0,0 +1 @@
+someothervalue: "new {{ .Values.somevalue }}"
diff --git a/pkg/state/testdata/layered.3.yaml.gotmpl b/pkg/state/testdata/layered.3.yaml.gotmpl
new file mode 100644
index 00000000..1f377717
--- /dev/null
+++ b/pkg/state/testdata/layered.3.yaml.gotmpl
@@ -0,0 +1 @@
+greeting: "{{ .Values.greeting }} {{ .Values.someothervalue }}"