diff --git a/cluster/addons/dns/Makefile b/cluster/addons/dns/coredns/Makefile
similarity index 92%
rename from cluster/addons/dns/Makefile
rename to cluster/addons/dns/coredns/Makefile
index 01f45e4ba51..d3455dd853f 100644
--- a/cluster/addons/dns/Makefile
+++ b/cluster/addons/dns/coredns/Makefile
@@ -29,6 +29,6 @@ all: transform
 %.sed: %.base
 	sed -f transforms2sed.sed $<  | sed s/__SOURCE_FILENAME__/$</g > $@
 
-transform: kube-dns.yaml.in kube-dns.yaml.sed coredns.yaml.in coredns.yaml.sed
+transform: coredns.yaml.in coredns.yaml.sed
 
 .PHONY: transform
diff --git a/cluster/addons/dns/coredns.yaml.base b/cluster/addons/dns/coredns/coredns.yaml.base
similarity index 100%
rename from cluster/addons/dns/coredns.yaml.base
rename to cluster/addons/dns/coredns/coredns.yaml.base
diff --git a/cluster/addons/dns/coredns.yaml.in b/cluster/addons/dns/coredns/coredns.yaml.in
similarity index 100%
rename from cluster/addons/dns/coredns.yaml.in
rename to cluster/addons/dns/coredns/coredns.yaml.in
diff --git a/cluster/addons/dns/coredns.yaml.sed b/cluster/addons/dns/coredns/coredns.yaml.sed
similarity index 100%
rename from cluster/addons/dns/coredns.yaml.sed
rename to cluster/addons/dns/coredns/coredns.yaml.sed
diff --git a/cluster/addons/dns/transforms2salt.sed b/cluster/addons/dns/coredns/transforms2salt.sed
similarity index 100%
rename from cluster/addons/dns/transforms2salt.sed
rename to cluster/addons/dns/coredns/transforms2salt.sed
diff --git a/cluster/addons/dns/transforms2sed.sed b/cluster/addons/dns/coredns/transforms2sed.sed
similarity index 100%
rename from cluster/addons/dns/transforms2sed.sed
rename to cluster/addons/dns/coredns/transforms2sed.sed
diff --git a/cluster/addons/dns/kube-dns/Makefile b/cluster/addons/dns/kube-dns/Makefile
new file mode 100644
index 00000000000..50419ff3247
--- /dev/null
+++ b/cluster/addons/dns/kube-dns/Makefile
@@ -0,0 +1,34 @@
+# Copyright 2016 The Kubernetes Authors.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# Makefile for the kubedns underscore templates to Salt/Pillar and other formats.
+
+# If you update the *.base templates, please run this Makefile before pushing.
+#
+# Usage:
+#    make
+
+all: transform
+
+# .base -> .in pattern rule
+%.in: %.base
+	sed -f transforms2salt.sed $< | sed s/__SOURCE_FILENAME__/$</g > $@
+
+# .base -> .sed pattern rule
+%.sed: %.base
+	sed -f transforms2sed.sed $<  | sed s/__SOURCE_FILENAME__/$</g > $@
+
+transform: kube-dns.yaml.in kube-dns.yaml.sed
+
+.PHONY: transform
diff --git a/cluster/addons/dns/README.md b/cluster/addons/dns/kube-dns/README.md
similarity index 100%
rename from cluster/addons/dns/README.md
rename to cluster/addons/dns/kube-dns/README.md
diff --git a/cluster/addons/dns/kube-dns.yaml.base b/cluster/addons/dns/kube-dns/kube-dns.yaml.base
similarity index 100%
rename from cluster/addons/dns/kube-dns.yaml.base
rename to cluster/addons/dns/kube-dns/kube-dns.yaml.base
diff --git a/cluster/addons/dns/kube-dns.yaml.in b/cluster/addons/dns/kube-dns/kube-dns.yaml.in
similarity index 100%
rename from cluster/addons/dns/kube-dns.yaml.in
rename to cluster/addons/dns/kube-dns/kube-dns.yaml.in
diff --git a/cluster/addons/dns/kube-dns.yaml.sed b/cluster/addons/dns/kube-dns/kube-dns.yaml.sed
similarity index 100%
rename from cluster/addons/dns/kube-dns.yaml.sed
rename to cluster/addons/dns/kube-dns/kube-dns.yaml.sed
diff --git a/cluster/addons/dns/kube-dns/transforms2salt.sed b/cluster/addons/dns/kube-dns/transforms2salt.sed
new file mode 100644
index 00000000000..0a0778b9292
--- /dev/null
+++ b/cluster/addons/dns/kube-dns/transforms2salt.sed
@@ -0,0 +1,4 @@
+s/__PILLAR__DNS__SERVER__/{{ pillar['dns_server'] }}/g
+s/__PILLAR__DNS__DOMAIN__/{{ pillar['dns_domain'] }}/g
+s/__PILLAR__CLUSTER_CIDR__/{{ pillar['service_cluster_ip_range'] }}/g
+s/__MACHINE_GENERATED_WARNING__/Warning: This is a file generated from the base underscore template file: __SOURCE_FILENAME__/g
diff --git a/cluster/addons/dns/kube-dns/transforms2sed.sed b/cluster/addons/dns/kube-dns/transforms2sed.sed
new file mode 100644
index 00000000000..7d64f8e0b51
--- /dev/null
+++ b/cluster/addons/dns/kube-dns/transforms2sed.sed
@@ -0,0 +1,4 @@
+s/__PILLAR__DNS__SERVER__/$DNS_SERVER_IP/g
+s/__PILLAR__DNS__DOMAIN__/$DNS_DOMAIN/g
+s/__PILLAR__CLUSTER_CIDR__/$SERVICE_CLUSTER_IP_RANGE/g
+s/__MACHINE_GENERATED_WARNING__/Warning: This is a file generated from the base underscore template file: __SOURCE_FILENAME__/g
diff --git a/cluster/centos/deployAddons.sh b/cluster/centos/deployAddons.sh
index 349b308ddbd..b19d1cd1ef7 100755
--- a/cluster/centos/deployAddons.sh
+++ b/cluster/centos/deployAddons.sh
@@ -26,7 +26,7 @@ export KUBE_CONFIG_FILE=${KUBE_CONFIG_FILE:-${KUBE_ROOT}/cluster/centos/config-d
 
 function deploy_dns {
   echo "Deploying DNS on Kubernetes"
-  cp "${KUBE_ROOT}/cluster/addons/dns/kube-dns.yaml.sed" kube-dns.yaml
+  cp "${KUBE_ROOT}/cluster/addons/dns/kube-dns/kube-dns.yaml.sed" kube-dns.yaml
   sed -i -e "s/\\\$DNS_DOMAIN/${DNS_DOMAIN}/g" kube-dns.yaml
   sed -i -e "s/\\\$DNS_SERVER_IP/${DNS_SERVER_IP}/g" kube-dns.yaml
 
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 9ab7b1df333..aa1449cc7f3 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -2183,8 +2183,8 @@ function update-dashboard-controller {
 
 # Sets up the manifests of coreDNS for k8s addons.
 function setup-coredns-manifest {
-  local -r coredns_file="${dst_dir}/dns/coredns.yaml"
-  mv "${dst_dir}/dns/coredns.yaml.in" "${coredns_file}"
+  local -r coredns_file="${dst_dir}/dns/coredns/coredns.yaml"
+  mv "${dst_dir}/dns/coredns/coredns.yaml.in" "${coredns_file}"
   # Replace the salt configurations with variable values.
   sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${coredns_file}"
   sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${coredns_file}"
@@ -2223,8 +2223,8 @@ function setup-fluentd {
 
 # Sets up the manifests of kube-dns for k8s addons.
 function setup-kube-dns-manifest {
-  local -r kubedns_file="${dst_dir}/dns/kube-dns.yaml"
-  mv "${dst_dir}/dns/kube-dns.yaml.in" "${kubedns_file}"
+  local -r kubedns_file="${dst_dir}/dns/kube-dns/kube-dns.yaml"
+  mv "${dst_dir}/dns/kube-dns/kube-dns.yaml.in" "${kubedns_file}"
   if [ -n "${CUSTOM_KUBE_DNS_YAML:-}" ]; then
     # Replace with custom GKE kube-dns deployment.
     cat > "${kubedns_file}" <<EOF
@@ -2349,10 +2349,11 @@ EOF
     setup-addon-manifests "addons" "device-plugins/nvidia-gpu"
   fi
   if [[ "${ENABLE_CLUSTER_DNS:-}" == "true" ]]; then
-    setup-addon-manifests "addons" "dns"
     if [[ "${CLUSTER_DNS_CORE_DNS:-}" == "true" ]]; then
+      setup-addon-manifests "addons" "dns/coredns"
       setup-coredns-manifest
     else
+      setup-addon-manifests "addons" "dns/kube-dns"
       setup-kube-dns-manifest
     fi
   fi
diff --git a/hack/local-up-cluster.sh b/hack/local-up-cluster.sh
index 44f00d3e885..8291ac7614f 100755
--- a/hack/local-up-cluster.sh
+++ b/hack/local-up-cluster.sh
@@ -903,7 +903,7 @@ EOF
 
 function start_kubedns {
     if [[ "${ENABLE_CLUSTER_DNS}" = true ]]; then
-        cp "${KUBE_ROOT}/cluster/addons/dns/kube-dns.yaml.in" kube-dns.yaml
+        cp "${KUBE_ROOT}/cluster/addons/dns/kube-dns/kube-dns.yaml.in" kube-dns.yaml
         sed -i -e "s/{{ pillar\['dns_domain'\] }}/${DNS_DOMAIN}/g" kube-dns.yaml
         sed -i -e "s/{{ pillar\['dns_server'\] }}/${DNS_SERVER_IP}/g" kube-dns.yaml