diff --git a/.kitchen.yml b/.kitchen.yml
index 51d6a26..122f5de 100644
--- a/.kitchen.yml
+++ b/.kitchen.yml
@@ -63,4 +63,12 @@
       pillars-from-files:
         linux.sls: tests/pillar/system.sls
 
+  - name: system_file
+    provisioner:
+      pillars-from-files:
+        linux.sls: tests/pillar/system_file.sls
+      pillars_from_directories:
+        - source: tests/example
+          dest: srv/salt/linux/files/test
+
 # vim: ft=yaml sw=2 ts=2 sts=2 tw=125
diff --git a/README.rst b/README.rst
index cd9d5c2..0a00089 100644
--- a/README.rst
+++ b/README.rst
@@ -467,6 +467,14 @@
             name: /tmp/test.txt
             source: http://example.com/test.txt
 
+    linux:
+      system:
+        file:
+          test2:
+            name: /tmp/test2.txt
+            source: http://example.com/test2.jinja
+            template: jinja
+
 Ensure presence of file by specifying its contents:
 
 .. code-block:: yaml
diff --git a/linux/system/file.sls b/linux/system/file.sls
index ffc1d76..e8a6d52 100644
--- a/linux/system/file.sls
+++ b/linux/system/file.sls
@@ -21,6 +21,9 @@
     {%- else %}
     - skip_verify: True
     {%- endif %}
+    {%- if file.template is defined %}
+    - template: {{ file.template }}
+    {%- endif %}
     {%- elif file.contents is defined %}
     - contents: {{ file.contents|yaml }}
     {%- elif file.contents_pillar is defined %}
@@ -28,6 +31,7 @@
     {%- elif file.contents_grains is defined %}
     - contents_grains: {{ file.contents_grains }}
     {%- endif %}
+
 {%- endif %}
     {%- if file.name is defined %}
     - name: {{ file.name }}
diff --git a/tests/example/file_template.jinja b/tests/example/file_template.jinja
new file mode 100644
index 0000000..1779fcd
--- /dev/null
+++ b/tests/example/file_template.jinja
@@ -0,0 +1 @@
+foo{{ pillar["test"]["example"] }}
diff --git a/tests/pillar/system_file.sls b/tests/pillar/system_file.sls
index 0769b18..09900af 100644
--- a/tests/pillar/system_file.sls
+++ b/tests/pillar/system_file.sls
@@ -23,4 +23,10 @@
         mode: 700
         dir_mode: 700
         encoding: utf-8
-        makedirs: true
\ No newline at end of file
+        makedirs: true
+      test3:
+        name: /tmp/test3.txt
+        source: salt://linux/files/test/file_template.jinja
+        template: jinja
+test:
+  example: "bar"