diff --git a/cluster/addons/fluentd-gcp/fluentd-gcp-configmap.yaml b/cluster/addons/fluentd-gcp/fluentd-gcp-configmap.yaml
new file mode 100644
index 00000000000..98acff37fa6
--- /dev/null
+++ b/cluster/addons/fluentd-gcp/fluentd-gcp-configmap.yaml
@@ -0,0 +1,391 @@
+kind: ConfigMap
+apiVersion: v1
+data:
+  containers.input.conf: |-
+    # This configuration file for Fluentd is used
+    # to watch changes to Docker log files that live in the
+    # directory /var/lib/docker/containers/ and are symbolically
+    # linked to from the /var/log/containers directory using names that capture the
+    # pod name and container name. These logs are then submitted to
+    # Google Cloud Logging which assumes the installation of the cloud-logging plug-in.
+    #
+    # Example
+    # =======
+    # A line in the Docker log file might look like this JSON:
+    #
+    # {"log":"2014/09/25 21:15:03 Got request with path wombat\\n",
+    #  "stream":"stderr",
+    #   "time":"2014-09-25T21:15:03.499185026Z"}
+    #
+    # The record reformer is used to write the tag to focus on the pod name
+    # and the Kubernetes container name. For example a Docker container's logs
+    # might be in the directory:
+    #  /var/lib/docker/containers/997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b
+    # and in the file:
+    #  997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b-json.log
+    # where 997599971ee6... is the Docker ID of the running container.
+    # The Kubernetes kubelet makes a symbolic link to this file on the host machine
+    # in the /var/log/containers directory which includes the pod name and the Kubernetes
+    # container name:
+    #    synthetic-logger-0.25lps-pod_default-synth-lgr-997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b.log
+    #    ->
+    #    /var/lib/docker/containers/997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b/997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b-json.log
+    # The /var/log directory on the host is mapped to the /var/log directory in the container
+    # running this instance of Fluentd and we end up collecting the file:
+    #   /var/log/containers/synthetic-logger-0.25lps-pod_default-synth-lgr-997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b.log
+    # This results in the tag:
+    #  var.log.containers.synthetic-logger-0.25lps-pod_default-synth-lgr-997599971ee6366d4a5920d25b79286ad45ff37a74494f262e3bc98d909d0a7b.log
+    # The record reformer is used is discard the var.log.containers prefix and
+    # the Docker container ID suffix and "kubernetes." is pre-pended giving the tag:
+    #   kubernetes.synthetic-logger-0.25lps-pod_default-synth-lgr
+    # Tag is then parsed by google_cloud plugin and translated to the metadata,
+    # visible in the log viewer
+
+    # Example:
+    # {"log":"[info:2016-02-16T16:04:05.930-08:00] Some log text here\n","stream":"stdout","time":"2016-02-17T00:04:05.931087621Z"}
+    <source>
+      type tail
+      format json
+      time_key time
+      path /var/log/containers/*.log
+      pos_file /var/log/gcp-containers.log.pos
+      time_format %Y-%m-%dT%H:%M:%S.%N%Z
+      tag reform.*
+      read_from_head true
+    </source>
+
+    <filter reform.**>
+      type parser
+      format /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<log>.*)/
+      reserve_data true
+      suppress_parse_error_log true
+      key_name log
+    </filter>
+
+    <match reform.**>
+      type record_reformer
+      enable_ruby true
+      tag raw.kubernetes.${tag_suffix[4].split('-')[0..-2].join('-')}
+    </match>
+
+    # Detect exceptions in the log output and forward them as one log entry.
+    <match raw.kubernetes.**>
+      @type copy
+
+      <store>
+        @type prometheus
+
+        <metric>
+          type counter
+          name logging_line_count
+          desc Total number of lines generated by application containers
+          <labels>
+            tag ${tag}
+          </labels>
+        </metric>
+      </store>
+      <store>
+        @type detect_exceptions
+
+        remove_tag_prefix raw
+        message log
+        stream stream
+        multiline_flush_interval 5
+        max_bytes 500000
+        max_lines 1000
+      </store>
+    </match>
+  system.input.conf: |-
+    # Example:
+    # 2015-12-21 23:17:22,066 [salt.state       ][INFO    ] Completed state [net.ipv4.ip_forward] at time 23:17:22.066081
+    <source>
+      type tail
+      format /^(?<time>[^ ]* [^ ,]*)[^\[]*\[[^\]]*\]\[(?<severity>[^ \]]*) *\] (?<message>.*)$/
+      time_format %Y-%m-%d %H:%M:%S
+      path /var/log/salt/minion
+      pos_file /var/log/gcp-salt.pos
+      tag salt
+    </source>
+
+    # Example:
+    # Dec 21 23:17:22 gke-foo-1-1-4b5cbd14-node-4eoj startupscript: Finished running startup script /var/run/google.startup.script
+    <source>
+      type tail
+      format syslog
+      path /var/log/startupscript.log
+      pos_file /var/log/gcp-startupscript.log.pos
+      tag startupscript
+    </source>
+
+    # Examples:
+    # time="2016-02-04T06:51:03.053580605Z" level=info msg="GET /containers/json"
+    # time="2016-02-04T07:53:57.505612354Z" level=error msg="HTTP Error" err="No such image: -f" statusCode=404
+    <source>
+      type tail
+      format /^time="(?<time>[^)]*)" level=(?<severity>[^ ]*) msg="(?<message>[^"]*)"( err="(?<error>[^"]*)")?( statusCode=($<status_code>\d+))?/
+      path /var/log/docker.log
+      pos_file /var/log/gcp-docker.log.pos
+      tag docker
+    </source>
+
+    # Example:
+    # 2016/02/04 06:52:38 filePurge: successfully removed file /var/etcd/data/member/wal/00000000000006d0-00000000010a23d1.wal
+    <source>
+      type tail
+      # Not parsing this, because it doesn't have anything particularly useful to
+      # parse out of it (like severities).
+      format none
+      path /var/log/etcd.log
+      pos_file /var/log/gcp-etcd.log.pos
+      tag etcd
+    </source>
+
+    # Multi-line parsing is required for all the kube logs because very large log
+    # statements, such as those that include entire object bodies, get split into
+    # multiple lines by glog.
+
+    # Example:
+    # I0204 07:32:30.020537    3368 server.go:1048] POST /stats/container/: (13.972191ms) 200 [[Go-http-client/1.1] 10.244.1.3:40537]
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/kubelet.log
+      pos_file /var/log/gcp-kubelet.log.pos
+      tag kubelet
+    </source>
+
+    # Example:
+    # I1118 21:26:53.975789       6 proxier.go:1096] Port "nodePort for kube-system/default-http-backend:http" (:31429/tcp) was open before and is still needed
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/kube-proxy.log
+      pos_file /var/log/gcp-kube-proxy.log.pos
+      tag kube-proxy
+    </source>
+
+    # Example:
+    # I0204 07:00:19.604280       5 handlers.go:131] GET /api/v1/nodes: (1.624207ms) 200 [[kube-controller-manager/v1.1.3 (linux/amd64) kubernetes/6a81b50] 127.0.0.1:38266]
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/kube-apiserver.log
+      pos_file /var/log/gcp-kube-apiserver.log.pos
+      tag kube-apiserver
+    </source>
+
+    # Example:
+    # 2017-02-09T00:15:57.992775796Z AUDIT: id="90c73c7c-97d6-4b65-9461-f94606ff825f" ip="104.132.1.72" method="GET" user="kubecfg" as="<self>" asgroups="<lookup>" namespace="default" uri="/api/v1/namespaces/default/pods"
+    # 2017-02-09T00:15:57.993528822Z AUDIT: id="90c73c7c-97d6-4b65-9461-f94606ff825f" response="200"
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\S+\s+AUDIT:/
+      # Fields must be explicitly captured by name to be parsed into the record.
+      # Fields may not always be present, and order may change, so this just looks
+      # for a list of key="\"quoted\" value" pairs separated by spaces.
+      # Unknown fields are ignored.
+      # Note: We can't separate query/response lines as format1/format2 because
+      #       they don't always come one after the other for a given query.
+      # TODO: Maybe add a JSON output mode to audit log so we can get rid of this?
+      format1 /^(?<time>\S+) AUDIT:(?: (?:id="(?<id>(?:[^"\\]|\\.)*)"|ip="(?<ip>(?:[^"\\]|\\.)*)"|method="(?<method>(?:[^"\\]|\\.)*)"|user="(?<user>(?:[^"\\]|\\.)*)"|groups="(?<groups>(?:[^"\\]|\\.)*)"|as="(?<as>(?:[^"\\]|\\.)*)"|asgroups="(?<asgroups>(?:[^"\\]|\\.)*)"|namespace="(?<namespace>(?:[^"\\]|\\.)*)"|uri="(?<uri>(?:[^"\\]|\\.)*)"|response="(?<response>(?:[^"\\]|\\.)*)"|\w+="(?:[^"\\]|\\.)*"))*/
+      time_format %FT%T.%L%Z
+      path /var/log/kube-apiserver-audit.log
+      pos_file /var/log/gcp-kube-apiserver-audit.log.pos
+      tag kube-apiserver-audit
+    </source>
+
+    # Example:
+    # I0204 06:55:31.872680       5 servicecontroller.go:277] LB already exists and doesn't need update for service kube-system/kube-ui
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/kube-controller-manager.log
+      pos_file /var/log/gcp-kube-controller-manager.log.pos
+      tag kube-controller-manager
+    </source>
+
+    # Example:
+    # W0204 06:49:18.239674       7 reflector.go:245] pkg/scheduler/factory/factory.go:193: watch of *api.Service ended with: 401: The event in requested index is outdated and cleared (the requested history has been cleared [2578313/2577886]) [2579312]
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/kube-scheduler.log
+      pos_file /var/log/gcp-kube-scheduler.log.pos
+      tag kube-scheduler
+    </source>
+
+    # Example:
+    # I1104 10:36:20.242766       5 rescheduler.go:73] Running Rescheduler
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/rescheduler.log
+      pos_file /var/log/gcp-rescheduler.log.pos
+      tag rescheduler
+    </source>
+
+    # Example:
+    # I0603 15:31:05.793605       6 cluster_manager.go:230] Reading config from path /etc/gce.conf
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/glbc.log
+      pos_file /var/log/gcp-glbc.log.pos
+      tag glbc
+    </source>
+
+    # Example:
+    # I0603 15:31:05.793605       6 cluster_manager.go:230] Reading config from path /etc/gce.conf
+    <source>
+      type tail
+      format multiline
+      multiline_flush_interval 5s
+      format_firstline /^\w\d{4}/
+      format1 /^(?<severity>\w)(?<time>\d{4} [^\s]*)\s+(?<pid>\d+)\s+(?<source>[^ \]]+)\] (?<message>.*)/
+      time_format %m%d %H:%M:%S.%N
+      path /var/log/cluster-autoscaler.log
+      pos_file /var/log/gcp-cluster-autoscaler.log.pos
+      tag cluster-autoscaler
+    </source>
+
+    # Logs from systemd-journal for interesting services.
+    <source>
+      type systemd
+      filters [{ "_SYSTEMD_UNIT": "docker.service" }]
+      pos_file /var/log/gcp-journald-docker.pos
+      read_from_head true
+      tag docker
+    </source>
+
+    <source>
+      type systemd
+      filters [{ "_SYSTEMD_UNIT": "kubelet.service" }]
+      pos_file /var/log/gcp-journald-kubelet.pos
+      read_from_head true
+      tag kubelet
+    </source>
+  monitoring.conf: |-
+    # Prometheus monitoring
+    <source>
+      @type prometheus
+      port 80
+    </source>
+
+    <source>
+      @type prometheus_monitor
+    </source>
+  output.conf: |-
+    # We use 2 output stanzas - one to handle the container logs and one to handle
+    # the node daemon logs, the latter of which explicitly sends its logs to the
+    # compute.googleapis.com service rather than container.googleapis.com to keep
+    # them separate since most users don't care about the node logs.
+    <match kubernetes.**>
+      @type copy
+
+      <store>
+        @type google_cloud
+
+        # Set the buffer type to file to improve the reliability and reduce the memory consumption
+        buffer_type file
+        buffer_path /var/log/fluentd-buffers/kubernetes.containers.buffer
+        # Set queue_full action to block because we want to pause gracefully
+        # in case of the off-the-limits load instead of throwing an exception
+        buffer_queue_full_action block
+        # Set the chunk limit conservatively to avoid exceeding the GCL limit
+        # of 10MiB per write request.
+        buffer_chunk_limit 2M
+        # Cap the combined memory usage of this buffer and the one below to
+        # 2MiB/chunk * (6 + 2) chunks = 16 MiB
+        buffer_queue_limit 6
+        # Never wait more than 5 seconds before flushing logs in the non-error case.
+        flush_interval 5s
+        # Never wait longer than 30 seconds between retries.
+        max_retry_wait 30
+        # Disable the limit on the number of retries (retry forever).
+        disable_retry_limit
+        # Use multiple threads for processing.
+        num_threads 2
+      </store>
+      <store>
+        @type prometheus
+
+        <metric>
+          type counter
+          name logging_entry_count
+          desc Total number of log entries generated by either an application container or a system component
+          <labels>
+            tag ${tag}
+            component container
+          </labels>
+        </metric>
+      </store>
+    </match>
+
+    # Keep a smaller buffer here since these logs are less important than the user's
+    # container logs.
+    <match **>
+      @type copy
+
+      <store>
+        @type google_cloud
+
+        detect_subservice false
+        buffer_type file
+        buffer_path /var/log/fluentd-buffers/kubernetes.system.buffer
+        buffer_queue_full_action block
+        buffer_chunk_limit 2M
+        buffer_queue_limit 2
+        flush_interval 5s
+        max_retry_wait 30
+        disable_retry_limit
+        num_threads 2
+      </store>
+      <store>
+        @type prometheus
+
+        <metric>
+          type counter
+          name logging_entry_count
+          desc Total number of log entries generated by either an application container or a system component
+          <labels>
+            tag ${tag}
+            component system
+          </labels>
+        </metric>
+      </store>
+    </match>
+metadata:
+  name: fluentd-gcp-config
+  namespace: kube-system
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
diff --git a/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml b/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
index 1f3fe6f3555..742a4b08d6b 100644
--- a/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
+++ b/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
@@ -2,20 +2,20 @@
 apiVersion: extensions/v1beta1
 kind: DaemonSet
 metadata:
-  name: fluentd-gcp-v1.38
+  name: fluentd-gcp-v2.0
   namespace: kube-system
   labels:
     k8s-app: fluentd-gcp
     kubernetes.io/cluster-service: "true"
     addonmanager.kubernetes.io/mode: Reconcile
-    version: v1.38
+    version: v2.0
 spec:
   template:
     metadata:
       labels:
         k8s-app: fluentd-gcp
         kubernetes.io/cluster-service: "true"
-        version: v1.38
+        version: v2.0
       # This annotation ensures that fluentd does not get evicted if the node
       # supports critical pod annotation based priority scheme.
       # Note that this does not guarantee admission on the nodes (#40573).
@@ -25,7 +25,7 @@ spec:
       dnsPolicy: Default
       containers:
       - name: fluentd-gcp
-        image: gcr.io/google_containers/fluentd-gcp:1.38
+        image: gcr.io/google-containers/fluentd-gcp:2.0
         # If fluentd consumes its own logs, the following situation may happen:
         # fluentd fails to send a chunk to the server => writes it to the log =>
         # tries to send this message to the server => fails to send a chunk and so on.
@@ -53,6 +53,8 @@ spec:
         - name: libsystemddir
           mountPath: /host/lib
           readOnly: true
+        - name: config-volume
+          mountPath: /etc/fluent/config.d
         # Liveness probe is aimed to help in situarions where fluentd
         # silently hangs for no apparent reasons until manual restart.
         # The idea of this probe is that if fluentd is not queueing or
@@ -101,3 +103,6 @@ spec:
       - name: libsystemddir
         hostPath:
           path: /usr/lib64
+      - name: config-volume
+        configMap:
+          name: fluentd-gcp-config