diff --git a/cluster/common.sh b/cluster/common.sh
index ac3e9ee21ff..b74141c2410 100755
--- a/cluster/common.sh
+++ b/cluster/common.sh
@@ -644,7 +644,6 @@ ENABLE_MANIFEST_URL: $(yaml-quote ${ENABLE_MANIFEST_URL:-false})
 MANIFEST_URL: $(yaml-quote ${MANIFEST_URL:-})
 MANIFEST_URL_HEADER: $(yaml-quote ${MANIFEST_URL_HEADER:-})
 NUM_NODES: $(yaml-quote ${NUM_NODES})
-INITIAL_ETCD_CLUSTER: $(yaml-quote ${MASTER_NAME})
 ENABLE_GARBAGE_COLLECTOR: $(yaml-quote ${ENABLE_GARBAGE_COLLECTOR:-false})
 EOF
     if [ -n "${APISERVER_TEST_ARGS:-}" ]; then
@@ -675,6 +674,11 @@ EOF
     if [ -n "${SCHEDULER_TEST_LOG_LEVEL:-}" ]; then
       cat >>$file <<EOF
 SCHEDULER_TEST_LOG_LEVEL: $(yaml-quote ${SCHEDULER_TEST_LOG_LEVEL})
+EOF
+    fi
+    if [ -n "${INITIAL_ETCD_CLUSTER:-}" ]; then
+      cat >>$file <<EOF
+INITIAL_ETCD_CLUSTER: $(yaml-quote ${INITIAL_ETCD_CLUSTER})
 EOF
     fi
   else
diff --git a/cluster/gce/config-default.sh b/cluster/gce/config-default.sh
index 1d02e73ffa8..f47375b536c 100755
--- a/cluster/gce/config-default.sh
+++ b/cluster/gce/config-default.sh
@@ -53,6 +53,7 @@ NETWORK=${KUBE_GCE_NETWORK:-default}
 INSTANCE_PREFIX="${KUBE_GCE_INSTANCE_PREFIX:-kubernetes}"
 CLUSTER_NAME="${CLUSTER_NAME:-${INSTANCE_PREFIX}}"
 MASTER_NAME="${INSTANCE_PREFIX}-master"
+INITIAL_ETCD_CLUSTER="${MASTER_NAME}"
 MASTER_TAG="${INSTANCE_PREFIX}-master"
 NODE_TAG="${INSTANCE_PREFIX}-minion"
 MASTER_IP_RANGE="${MASTER_IP_RANGE:-10.246.0.0/24}"
diff --git a/cluster/gce/config-test.sh b/cluster/gce/config-test.sh
index 5d81fb7d7f3..861d32431fe 100755
--- a/cluster/gce/config-test.sh
+++ b/cluster/gce/config-test.sh
@@ -55,6 +55,7 @@ NETWORK=${KUBE_GCE_NETWORK:-e2e}
 INSTANCE_PREFIX="${KUBE_GCE_INSTANCE_PREFIX:-e2e-test-${USER}}"
 CLUSTER_NAME="${CLUSTER_NAME:-${INSTANCE_PREFIX}}"
 MASTER_NAME="${INSTANCE_PREFIX}-master"
+INITIAL_ETCD_CLUSTER="${MASTER_NAME}"
 MASTER_TAG="${INSTANCE_PREFIX}-master"
 NODE_TAG="${INSTANCE_PREFIX}-minion"
 CLUSTER_IP_RANGE="${CLUSTER_IP_RANGE:-10.180.0.0/14}"
diff --git a/cluster/gce/configure-vm.sh b/cluster/gce/configure-vm.sh
index 34e603f529b..ba4ff195000 100755
--- a/cluster/gce/configure-vm.sh
+++ b/cluster/gce/configure-vm.sh
@@ -452,11 +452,11 @@ network_policy_provider: '$(echo "$NETWORK_POLICY_PROVIDER" | sed -e "s/'/''/g")
 enable_manifest_url: '$(echo "${ENABLE_MANIFEST_URL:-}" | sed -e "s/'/''/g")'
 manifest_url: '$(echo "${MANIFEST_URL:-}" | sed -e "s/'/''/g")'
 manifest_url_header: '$(echo "${MANIFEST_URL_HEADER:-}" | sed -e "s/'/''/g")'
-master_name: '$(echo "${KUBERNETES_MASTER_NAME:-}" | sed -e "s/'/''/g")'
 num_nodes: $(echo "${NUM_NODES:-}" | sed -e "s/'/''/g")
 e2e_storage_test_environment: '$(echo "$E2E_STORAGE_TEST_ENVIRONMENT" | sed -e "s/'/''/g")'
 kube_uid: '$(echo "${KUBE_UID}" | sed -e "s/'/''/g")'
 initial_etcd_cluster: '$(echo "${INITIAL_ETCD_CLUSTER:-}" | sed -e "s/'/''/g")'
+hostname: $(hostname -s)
 EOF
     if [ -n "${KUBELET_PORT:-}" ]; then
       cat <<EOF >>/srv/salt-overlay/pillar/cluster-params.sls
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 6dc59478ec9..cf4c1707525 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -541,7 +541,7 @@ function prepare-etcd-manifest {
   sed -i -e "s@{{ *port *}}@$2@g" "${temp_file}"
   sed -i -e "s@{{ *server_port *}}@$3@g" "${temp_file}"
   sed -i -e "s@{{ *cpulimit *}}@\"$4\"@g" "${temp_file}"
-  sed -i -e "s@{{ *host_name *}}@$host_name@g" "${temp_file}"
+  sed -i -e "s@{{ *hostname *}}@$host_name@g" "${temp_file}"
   sed -i -e "s@{{ *etcd_cluster *}}@$etcd_cluster@g" "${temp_file}"
   sed -i -e "s@{{ *cluster_state *}}@$cluster_state@g" "${temp_file}"
   # Replace the volume host path.
diff --git a/cluster/gce/trusty/configure-helper.sh b/cluster/gce/trusty/configure-helper.sh
index f7dd1b0e1f5..90e952f4296 100644
--- a/cluster/gce/trusty/configure-helper.sh
+++ b/cluster/gce/trusty/configure-helper.sh
@@ -427,7 +427,7 @@ prepare_etcd_manifest() {
   sed -i -e "s@{{ *port *}}@$2@g" "${etcd_temp_file}"
   sed -i -e "s@{{ *server_port *}}@$3@g" "${etcd_temp_file}"
   sed -i -e "s@{{ *cpulimit *}}@\"$4\"@g" "${etcd_temp_file}"
-  sed -i -e "s@{{ *host_name *}}@$host_name@g" "${etcd_temp_file}"
+  sed -i -e "s@{{ *hostname *}}@$host_name@g" "${etcd_temp_file}"
   sed -i -e "s@{{ *etcd_cluster *}}@$etcd_cluster@g" "${etcd_temp_file}"
   sed -i -e "s@{{ *cluster_state *}}@$cluster_state@g" "${etcd_temp_file}"
   # Replace the volume host path
diff --git a/cluster/saltbase/salt/etcd/etcd.manifest b/cluster/saltbase/salt/etcd/etcd.manifest
index 2f5ad86213f..15625983d93 100644
--- a/cluster/saltbase/salt/etcd/etcd.manifest
+++ b/cluster/saltbase/salt/etcd/etcd.manifest
@@ -1,6 +1,6 @@
 {% set cluster_state = 'new' -%}
-{% set host_name = pillar.get('master_name', '') -%}
-{% set etcd_cluster_array = pillar.get('initial_etcd_cluster', host_name).split(',') -%}
+{% set hostname = pillar.get('hostname', '') -%}
+{% set etcd_cluster_array = (pillar.get('initial_etcd_cluster') or hostname).split(',') -%}
 {% set etcd_cluster = '' -%}
 {# We use vars dictionary to pass variables set inside the for loop, because jinja defines new variables inside the for loop that hide variables from the outside. #}
 {% set vars = {'etcd_cluster': '', 'cluster_state': cluster_state} -%}
@@ -36,7 +36,7 @@
     "command": [
               "/bin/sh",
               "-c",
-              "/usr/local/bin/etcd --name etcd-{{ host_name }} --listen-peer-urls http://{{ host_name }}:{{ server_port }} --initial-advertise-peer-urls http://{{ host_name }}:{{ server_port }} --advertise-client-urls http://127.0.0.1:{{ port }} --listen-client-urls http://127.0.0.1:{{ port }} --data-dir /var/etcd/data{{ suffix }} --initial-cluster-state {{ cluster_state }} --initial-cluster {{ etcd_cluster }} 1>>/var/log/etcd{{ suffix }}.log 2>&1"
+              "/usr/local/bin/etcd --name etcd-{{ hostname }} --listen-peer-urls http://{{ hostname }}:{{ server_port }} --initial-advertise-peer-urls http://{{ hostname }}:{{ server_port }} --advertise-client-urls http://127.0.0.1:{{ port }} --listen-client-urls http://127.0.0.1:{{ port }} --data-dir /var/etcd/data{{ suffix }} --initial-cluster-state {{ cluster_state }} --initial-cluster {{ etcd_cluster }} 1>>/var/log/etcd{{ suffix }}.log 2>&1"
             ],
     "livenessProbe": {
       "httpGet": {