diff --git a/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml b/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
index 3ac746473c5..844a547cb1d 100644
--- a/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
+++ b/cluster/addons/fluentd-gcp/fluentd-gcp-ds.yaml
@@ -2,19 +2,19 @@
 apiVersion: extensions/v1beta1
 kind: DaemonSet
 metadata:
-  name: fluentd-gcp-v1.37
+  name: fluentd-gcp-v1.38
   namespace: kube-system
   labels:
     k8s-app: fluentd-gcp
     kubernetes.io/cluster-service: "true"
-    version: v1.37
+    version: v1.38
 spec:
   template:
     metadata:
       labels:
         k8s-app: fluentd-gcp
         kubernetes.io/cluster-service: "true"
-        version: v1.37
+        version: v1.38
       # 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).
@@ -23,7 +23,7 @@ spec:
     spec:
       containers:
       - name: fluentd-gcp
-        image: gcr.io/google_containers/fluentd-gcp:1.37
+        image: gcr.io/google_containers/fluentd-gcp:1.38
         # 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.
diff --git a/cluster/addons/fluentd-gcp/fluentd-gcp-image/Makefile b/cluster/addons/fluentd-gcp/fluentd-gcp-image/Makefile
index 5da8a805ec8..b154b824fcd 100644
--- a/cluster/addons/fluentd-gcp/fluentd-gcp-image/Makefile
+++ b/cluster/addons/fluentd-gcp/fluentd-gcp-image/Makefile
@@ -26,7 +26,7 @@
 .PHONY:	build push
 
 PREFIX=gcr.io/google_containers
-TAG = 1.37
+TAG = 1.38
 
 build:
 	docker build --pull -t $(PREFIX)/fluentd-gcp:$(TAG) .
diff --git a/cluster/addons/fluentd-gcp/fluentd-gcp-image/fluent.conf b/cluster/addons/fluentd-gcp/fluentd-gcp-image/fluent.conf
index 5e13b5505de..775c78ccd15 100644
--- a/cluster/addons/fluentd-gcp/fluentd-gcp-image/fluent.conf
+++ b/cluster/addons/fluentd-gcp/fluentd-gcp-image/fluent.conf
@@ -174,6 +174,28 @@
   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>
diff --git a/cluster/saltbase/salt/fluentd-gcp/fluentd-gcp.yaml b/cluster/saltbase/salt/fluentd-gcp/fluentd-gcp.yaml
index 55ee4f66de2..3f49eb59a54 100644
--- a/cluster/saltbase/salt/fluentd-gcp/fluentd-gcp.yaml
+++ b/cluster/saltbase/salt/fluentd-gcp/fluentd-gcp.yaml
@@ -15,7 +15,7 @@ spec:
   dnsPolicy: Default
   containers:
   - name: fluentd-cloud-logging
-    image: gcr.io/google_containers/fluentd-gcp:1.37
+    image: gcr.io/google_containers/fluentd-gcp:1.38
     # 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.