diff --git a/go.mod b/go.mod
index 27ebeb81..15730110 100644
--- a/go.mod
+++ b/go.mod
@@ -18,6 +18,7 @@ require (
 	github.com/drone/drone-ui v2.0.1+incompatible
 	github.com/drone/drone-yaml v1.2.4-0.20200326192514-6f4d6dfb39e4
 	github.com/drone/envsubst v1.0.3-0.20200709231038-aa43e1c1a629
+	github.com/drone/funcmap v0.0.0-20210823160631-9e9dec149056 // indirect
 	github.com/drone/go-license v1.0.2
 	github.com/drone/go-login v1.0.4-0.20190311170324-2a4df4f242a2
 	github.com/drone/go-scm v1.15.2
diff --git a/go.sum b/go.sum
index 4557e2c8..60801fd5 100644
--- a/go.sum
+++ b/go.sum
@@ -86,6 +86,10 @@ github.com/drone/drone-yaml v1.2.4-0.20200326192514-6f4d6dfb39e4 h1:XsstoCeXC2t8
 github.com/drone/drone-yaml v1.2.4-0.20200326192514-6f4d6dfb39e4/go.mod h1:QsqliFK8nG04AHFN9tTn9XJomRBQHD4wcejWW1uz/10=
 github.com/drone/envsubst v1.0.3-0.20200709231038-aa43e1c1a629 h1:rIaZZalMGGPb2cU/+ypuggZ8aMlpa17RUlJUtsMv8pw=
 github.com/drone/envsubst v1.0.3-0.20200709231038-aa43e1c1a629/go.mod h1:N2jZmlMufstn1KEqvbHjw40h1KyTmnVzHcSc9bFiJ2g=
+github.com/drone/funcmap v0.0.0-20190918184546-d4ef6e88376d h1:/IO7UVVu191Jc0DajV4cDVoO+91cuppvgxg2MZl+AXI=
+github.com/drone/funcmap v0.0.0-20190918184546-d4ef6e88376d/go.mod h1:Hph0/pT6ZxbujnE1Z6/08p5I0XXuOsppqF6NQlGOK0E=
+github.com/drone/funcmap v0.0.0-20210823160631-9e9dec149056 h1:SCJwMR0FMA0aKwAntCBh02YmtHEnU40zaDzeeCvIRug=
+github.com/drone/funcmap v0.0.0-20210823160631-9e9dec149056/go.mod h1:Hph0/pT6ZxbujnE1Z6/08p5I0XXuOsppqF6NQlGOK0E=
 github.com/drone/go-license v1.0.2 h1:7OwndfYk+Lp/cGHkxe4HUn/Ysrrw3WYH2pnd99yrkok=
 github.com/drone/go-license v1.0.2/go.mod h1:fGRHf+F1cEaw3YVYiJ6js3G3dVhcxyS617RnNRUMsms=
 github.com/drone/go-login v1.0.4-0.20190311170324-2a4df4f242a2 h1:RGpgNkowJc5LAVn/ZONx70qmnaTA0z/3hHPzTBdAEO8=
diff --git a/plugin/converter/template.go b/plugin/converter/template.go
index b944f9fe..6ac01242 100644
--- a/plugin/converter/template.go
+++ b/plugin/converter/template.go
@@ -17,22 +17,26 @@
 package converter
 
 import (
+	"bytes"
 	"context"
 	"database/sql"
 	"errors"
+	"path/filepath"
 	"regexp"
 	"strings"
+	templating "text/template"
 
 	"github.com/drone/drone/core"
 	"github.com/drone/drone/plugin/converter/jsonnet"
 	"github.com/drone/drone/plugin/converter/starlark"
+	"github.com/drone/funcmap"
 
 	"gopkg.in/yaml.v2"
 )
 
 var (
-	// templateFileRE regex to verifying kind is template.
-	templateFileRE          = regexp.MustCompile("^kind:\\s+template+\\n")
+	// TemplateFileRE regex to verifying kind is template.
+	TemplateFileRE          = regexp.MustCompile("^kind:\\s+template+\\n")
 	ErrTemplateNotFound     = errors.New("template converter: template name given not found")
 	ErrTemplateSyntaxErrors = errors.New("template converter: there is a problem with the yaml file provided")
 )
@@ -52,8 +56,9 @@ func (p *templatePlugin) Convert(ctx context.Context, req *core.ConvertArgs) (*c
 	if strings.HasSuffix(req.Repo.Config, ".yml") == false {
 		return nil, nil
 	}
+
 	// check kind is template
-	if templateFileRE.MatchString(req.Config.Data) == false {
+	if TemplateFileRE.MatchString(req.Config.Data) == false {
 		return nil, nil
 	}
 	// map to templateArgs
@@ -71,29 +76,55 @@ func (p *templatePlugin) Convert(ctx context.Context, req *core.ConvertArgs) (*c
 		return nil, err
 	}
 
-	// Check if file is of type Starlark
-	if strings.HasSuffix(templateArgs.Load, ".script") ||
-		strings.HasSuffix(templateArgs.Load, ".star") ||
-		strings.HasSuffix(templateArgs.Load, ".starlark") {
-
-		file, err := starlark.Parse(req, template, templateArgs.Data)
-		if err != nil {
-			return nil, err
-		}
-		return &core.Config{
-			Data: file,
-		}, nil
-	}
-	// Check if the file is of type Jsonnet
-	if strings.HasSuffix(templateArgs.Load, ".jsonnet") {
-		file, err := jsonnet.Parse(req, template, templateArgs.Data)
-		if err != nil {
-			return nil, err
-		}
-		return &core.Config{
-			Data: file,
-		}, nil
+	switch filepath.Ext(templateArgs.Load) {
+	case ".yml", ".yaml":
+		return parseYaml(req, template, templateArgs)
+	case ".star", ".starlark", ".script":
+		return parseStarlark(req, template, templateArgs)
+	case ".jsonnet":
+		return parseJsonnet(req, template, templateArgs)
+	default:
 	}
 
 	return nil, nil
 }
+
+func parseYaml(req *core.ConvertArgs, template *core.Template, templateArgs core.TemplateArgs) (*core.Config, error) {
+	data := map[string]interface{}{
+		"build": toBuild(req.Build),
+		"repo":  toRepo(req.Repo),
+		"input": templateArgs.Data,
+	}
+	tmpl, err := templating.New(template.Name).Funcs(funcmap.SafeFuncs).Parse(template.Data)
+	if err != nil {
+		return nil, err
+	}
+	var out bytes.Buffer
+	err = tmpl.Execute(&out, data)
+	if err != nil {
+		return nil, err
+	}
+	return &core.Config{
+		Data: out.String(),
+	}, nil
+}
+
+func parseJsonnet(req *core.ConvertArgs, template *core.Template, templateArgs core.TemplateArgs) (*core.Config, error) {
+	file, err := jsonnet.Parse(req, template, templateArgs.Data)
+	if err != nil {
+		return nil, err
+	}
+	return &core.Config{
+		Data: file,
+	}, nil
+}
+
+func parseStarlark(req *core.ConvertArgs, template *core.Template, templateArgs core.TemplateArgs) (*core.Config, error) {
+	file, err := starlark.Parse(req, template, templateArgs.Data)
+	if err != nil {
+		return nil, err
+	}
+	return &core.Config{
+		Data: file,
+	}, nil
+}
diff --git a/plugin/converter/template_test.go b/plugin/converter/template_test.go
index ad2fa0a9..3b2a8f53 100644
--- a/plugin/converter/template_test.go
+++ b/plugin/converter/template_test.go
@@ -326,3 +326,65 @@ func TestTemplateNestedValuesPluginConvertStarlark(t *testing.T) {
 		t.Errorf("Want %q got %q", want, got)
 	}
 }
+
+func TestTemplatePluginConvertYaml(t *testing.T) {
+	templateArgs, err := ioutil.ReadFile("testdata/yaml.template.yml")
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	req := &core.ConvertArgs{
+		Build: &core.Build{
+			After: "3d21ec53a331a6f037a91c368710b99387d012c1",
+		},
+		Repo: &core.Repository{
+			Slug:      "octocat/hello-world",
+			Config:    ".drone.yml",
+			Namespace: "octocat",
+		},
+		Config: &core.Config{
+			Data: string(templateArgs),
+		},
+	}
+
+	beforeInput, err := ioutil.ReadFile("testdata/yaml.input.yml")
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	after, err := ioutil.ReadFile("testdata/yaml.input.golden")
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	template := &core.Template{
+		Name:      "plugin.yaml",
+		Data:      string(beforeInput),
+		Namespace: "octocat",
+	}
+
+	controller := gomock.NewController(t)
+	defer controller.Finish()
+
+	templates := mock.NewMockTemplateStore(controller)
+	templates.EXPECT().FindName(gomock.Any(), template.Name, req.Repo.Namespace).Return(template, nil)
+
+	plugin := Template(templates)
+	config, err := plugin.Convert(noContext, req)
+	if err != nil {
+		t.Error(err)
+		return
+	}
+
+	if config == nil {
+		t.Error("Want non-nil configuration")
+		return
+	}
+
+	if want, got := config.Data, string(after); want != got {
+		t.Errorf("Want %q got %q", want, got)
+	}
+}
diff --git a/plugin/converter/testdata/yaml.input.golden b/plugin/converter/testdata/yaml.input.golden
new file mode 100644
index 00000000..20b7e9a5
--- /dev/null
+++ b/plugin/converter/testdata/yaml.input.golden
@@ -0,0 +1,8 @@
+kind: pipeline
+type: docker
+name: defaults
+steps:
+  - name:  MY_STEP
+    image: my_image
+    commands:
+      - my_command
\ No newline at end of file
diff --git a/plugin/converter/testdata/yaml.input.yml b/plugin/converter/testdata/yaml.input.yml
new file mode 100644
index 00000000..954d25d3
--- /dev/null
+++ b/plugin/converter/testdata/yaml.input.yml
@@ -0,0 +1,8 @@
+kind: pipeline
+type: docker
+name: defaults
+steps:
+  - name:  {{ upper .input.stepName }}
+    image: {{ .input.image }}
+    commands:
+      - {{ .input.commands }}
\ No newline at end of file
diff --git a/plugin/converter/testdata/yaml.template.yml b/plugin/converter/testdata/yaml.template.yml
new file mode 100644
index 00000000..eb2cbce0
--- /dev/null
+++ b/plugin/converter/testdata/yaml.template.yml
@@ -0,0 +1,6 @@
+kind: template
+load: plugin.yaml
+data:
+  stepName: my_step
+  image: my_image
+  commands: my_command