diff --git a/federation/client/cache/cluster_cache.go b/federation/client/cache/cluster_cache.go
new file mode 100644
index 00000000000..10ef095589e
--- /dev/null
+++ b/federation/client/cache/cluster_cache.go
@@ -0,0 +1,35 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+package cache
+
+import (
+	federation_v1alpha1 "k8s.io/kubernetes/federation/apis/federation/v1alpha1"
+	kubeCache "k8s.io/kubernetes/pkg/client/cache"
+)
+
+// StoreToClusterLister makes a Store have the List method of the unversioned.ClusterInterface
+// The Store must contain (only) clusters.
+type StoreToClusterLister struct {
+	kubeCache.Store
+}
+
+func (s *StoreToClusterLister) List() (clusters federation_v1alpha1.ClusterList, err error) {
+	for _, m := range s.Store.List() {
+		clusters.Items = append(clusters.Items, *(m.(*federation_v1alpha1.Cluster)))
+	}
+	return clusters, nil
+}
diff --git a/federation/cmd/federation-controller-manager/OWNERS b/federation/cmd/federation-controller-manager/OWNERS
new file mode 100644
index 00000000000..c6b4c5c4f65
--- /dev/null
+++ b/federation/cmd/federation-controller-manager/OWNERS
@@ -0,0 +1,4 @@
+assignees:
+  - quinton-hoole
+  - nikhiljindal
+  - madhusundancs
diff --git a/federation/cmd/federation-controller-manager/app/controllermanager.go b/federation/cmd/federation-controller-manager/app/controllermanager.go
new file mode 100644
index 00000000000..582c938ce80
--- /dev/null
+++ b/federation/cmd/federation-controller-manager/app/controllermanager.go
@@ -0,0 +1,109 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+// Package app implements a server that runs a set of active
+// components.  This includes cluster controller
+
+package app
+
+import (
+	"net"
+	"net/http"
+	"net/http/pprof"
+	"strconv"
+
+	"k8s.io/kubernetes/federation/cmd/federation-controller-manager/app/options"
+	"k8s.io/kubernetes/pkg/client/restclient"
+
+	federationclientset "k8s.io/kubernetes/federation/client/clientset_generated/federation_release_1_3"
+	clustercontroller "k8s.io/kubernetes/federation/pkg/federation-controller/cluster"
+	"k8s.io/kubernetes/pkg/client/unversioned/clientcmd"
+	"k8s.io/kubernetes/pkg/healthz"
+	"k8s.io/kubernetes/pkg/util/configz"
+
+	"github.com/golang/glog"
+	"github.com/prometheus/client_golang/prometheus"
+	"github.com/spf13/cobra"
+	"github.com/spf13/pflag"
+)
+
+// NewControllerManagerCommand creates a *cobra.Command object with default parameters
+func NewControllerManagerCommand() *cobra.Command {
+	s := options.NewCMServer()
+	s.AddFlags(pflag.CommandLine)
+	cmd := &cobra.Command{
+		Use: "federation-controller-manager",
+		Long: `The federation controller manager is a daemon that embeds
+the core control loops shipped with federation. In applications of robotics and
+automation, a control loop is a non-terminating loop that regulates the state of
+the system. In federation, a controller is a control loop that watches the shared
+state of the federation cluster through the apiserver and makes changes attempting
+to move the current state towards the desired state. Examples of controllers that
+ship with federation today is the cluster controller.`,
+		Run: func(cmd *cobra.Command, args []string) {
+		},
+	}
+
+	return cmd
+}
+
+// Run runs the CMServer.  This should never exit.
+func Run(s *options.CMServer) error {
+	if c, err := configz.New("componentconfig"); err == nil {
+		c.Set(s.ControllerManagerConfiguration)
+	} else {
+		glog.Errorf("unable to register configz: %s", err)
+	}
+	restClientCfg, err := clientcmd.BuildConfigFromFlags(s.Master, s.Kubeconfig)
+	if err != nil {
+		return err
+	}
+
+	// Override restClientCfg qps/burst settings from flags
+	restClientCfg.QPS = s.APIServerQPS
+	restClientCfg.Burst = s.APIServerBurst
+
+	go func() {
+		mux := http.NewServeMux()
+		healthz.InstallHandler(mux)
+		if s.EnableProfiling {
+			mux.HandleFunc("/debug/pprof/", pprof.Index)
+			mux.HandleFunc("/debug/pprof/profile", pprof.Profile)
+			mux.HandleFunc("/debug/pprof/symbol", pprof.Symbol)
+		}
+		mux.Handle("/metrics", prometheus.Handler())
+
+		server := &http.Server{
+			Addr:    net.JoinHostPort(s.Address, strconv.Itoa(s.Port)),
+			Handler: mux,
+		}
+		glog.Fatal(server.ListenAndServe())
+	}()
+
+	run := func() {
+		err := StartControllers(s, restClientCfg)
+		glog.Fatalf("error running controllers: %v", err)
+		panic("unreachable")
+	}
+	run()
+	panic("unreachable")
+}
+
+func StartControllers(s *options.CMServer, restClientCfg *restclient.Config) error {
+	federationClientSet := federationclientset.NewForConfigOrDie(restclient.AddUserAgent(restClientCfg, "cluster-controller"))
+	go clustercontroller.NewclusterController(federationClientSet, s.ClusterMonitorPeriod.Duration).Run()
+	select {}
+}
diff --git a/federation/cmd/federation-controller-manager/app/options/options.go b/federation/cmd/federation-controller-manager/app/options/options.go
new file mode 100644
index 00000000000..9a6e8735f9f
--- /dev/null
+++ b/federation/cmd/federation-controller-manager/app/options/options.go
@@ -0,0 +1,89 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+// Package options provides the flags used for the controller manager.
+
+package options
+
+import (
+	"time"
+
+	"github.com/spf13/pflag"
+	"k8s.io/kubernetes/pkg/api/unversioned"
+	"k8s.io/kubernetes/pkg/apis/componentconfig"
+	"k8s.io/kubernetes/pkg/client/leaderelection"
+)
+
+type ControllerManagerConfiguration struct {
+	// port is the port that the controller-manager's http service runs on.
+	Port int `json:"port"`
+	// address is the IP address to serve on (set to 0.0.0.0 for all interfaces).
+	Address string `json:"address"`
+	// clusterMonitorPeriod is the period for syncing ClusterStatus in cluster controller.
+	ClusterMonitorPeriod unversioned.Duration `json:"clusterMonitorPeriod"`
+	// APIServerQPS is the QPS to use while talking with federation apiserver.
+	APIServerQPS float32 `json:"federatedAPIQPS"`
+	// APIServerBurst is the burst to use while talking with federation apiserver.
+	APIServerBurst int `json:"federatedAPIBurst"`
+	// enableProfiling enables profiling via web interface host:port/debug/pprof/
+	EnableProfiling bool `json:"enableProfiling"`
+	// leaderElection defines the configuration of leader election client.
+	LeaderElection componentconfig.LeaderElectionConfiguration `json:"leaderElection"`
+	// contentType is contentType of requests sent to apiserver.
+	ContentType string `json:"contentType"`
+}
+
+// CMServer is the main context object for the controller manager.
+type CMServer struct {
+	ControllerManagerConfiguration
+	Master     string
+	Kubeconfig string
+}
+
+const (
+	// FederatedControllerManagerPort is the default port for the federation controller manager status server.
+	// May be overridden by a flag at startup.
+	FederatedControllerManagerPort = 10253
+)
+
+// NewCMServer creates a new CMServer with a default config.
+func NewCMServer() *CMServer {
+	s := CMServer{
+		ControllerManagerConfiguration: ControllerManagerConfiguration{
+			Port:                 FederatedControllerManagerPort,
+			Address:              "0.0.0.0",
+			ClusterMonitorPeriod: unversioned.Duration{Duration: 40 * time.Second},
+			APIServerQPS:         20.0,
+			APIServerBurst:       30,
+			LeaderElection:       leaderelection.DefaultLeaderElectionConfiguration(),
+		},
+	}
+	return &s
+}
+
+// AddFlags adds flags for a specific CMServer to the specified FlagSet
+func (s *CMServer) AddFlags(fs *pflag.FlagSet) {
+	fs.IntVar(&s.Port, "port", s.Port, "The port that the controller-manager's http service runs on")
+	fs.Var(componentconfig.IPVar{Val: &s.Address}, "address", "The IP address to serve on (set to 0.0.0.0 for all interfaces)")
+	fs.DurationVar(&s.ClusterMonitorPeriod.Duration, "cluster-monitor-period", s.ClusterMonitorPeriod.Duration, "The period for syncing ClusterStatus in ClusterController.")
+	fs.BoolVar(&s.EnableProfiling, "profiling", true, "Enable profiling via web interface host:port/debug/pprof/")
+	fs.StringVar(&s.Master, "master", s.Master, "The address of the federation API server (overrides any value in kubeconfig)")
+	fs.StringVar(&s.Kubeconfig, "kubeconfig", s.Kubeconfig, "Path to kubeconfig file with authorization and master location information.")
+	fs.StringVar(&s.ContentType, "kube-api-content-type", s.ContentType, "ContentType of requests sent to apiserver. Passing application/vnd.kubernetes.protobuf is an experimental feature now.")
+	fs.Float32Var(&s.APIServerQPS, "federated-api-qps", s.APIServerQPS, "QPS to use while talking with federation apiserver")
+	fs.IntVar(&s.APIServerBurst, "federated-api-burst", s.APIServerBurst, "Burst to use while talking with federation apiserver")
+	leaderelection.BindFlags(&s.LeaderElection, fs)
+}
diff --git a/federation/cmd/federation-controller-manager/controller-manager.go b/federation/cmd/federation-controller-manager/controller-manager.go
new file mode 100644
index 00000000000..56a7c0c9715
--- /dev/null
+++ b/federation/cmd/federation-controller-manager/controller-manager.go
@@ -0,0 +1,52 @@
+/*
+Copyright 2014 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+package main
+
+import (
+	"fmt"
+	"os"
+	"runtime"
+
+	"github.com/spf13/pflag"
+	"k8s.io/kubernetes/federation/cmd/federation-controller-manager/app"
+	"k8s.io/kubernetes/federation/cmd/federation-controller-manager/app/options"
+	"k8s.io/kubernetes/pkg/healthz"
+	"k8s.io/kubernetes/pkg/util"
+	"k8s.io/kubernetes/pkg/util/flag"
+	"k8s.io/kubernetes/pkg/version/verflag"
+)
+
+func init() {
+	healthz.DefaultHealthz()
+}
+
+func main() {
+	runtime.GOMAXPROCS(runtime.NumCPU())
+	s := options.NewCMServer()
+	s.AddFlags(pflag.CommandLine)
+
+	flag.InitFlags()
+	util.InitLogs()
+	defer util.FlushLogs()
+
+	verflag.PrintAndExitIfRequested()
+
+	if err := app.Run(s); err != nil {
+		fmt.Fprintf(os.Stderr, "%v\n", err)
+		os.Exit(1)
+	}
+}
diff --git a/federation/pkg/federation-controller/OWNERS b/federation/pkg/federation-controller/OWNERS
new file mode 100644
index 00000000000..c6b4c5c4f65
--- /dev/null
+++ b/federation/pkg/federation-controller/OWNERS
@@ -0,0 +1,4 @@
+assignees:
+  - quinton-hoole
+  - nikhiljindal
+  - madhusundancs
diff --git a/federation/pkg/federation-controller/cluster/cluster_client.go b/federation/pkg/federation-controller/cluster/cluster_client.go
new file mode 100644
index 00000000000..0864718b772
--- /dev/null
+++ b/federation/pkg/federation-controller/cluster/cluster_client.go
@@ -0,0 +1,123 @@
+/*
+Copyright 2014 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+package cluster
+
+import (
+	"net"
+	"strings"
+
+	federation_v1alpha1 "k8s.io/kubernetes/federation/apis/federation/v1alpha1"
+	"k8s.io/kubernetes/pkg/api/unversioned"
+	"k8s.io/kubernetes/pkg/api/v1"
+	"k8s.io/kubernetes/pkg/client/restclient"
+	"k8s.io/kubernetes/pkg/client/typed/discovery"
+	"k8s.io/kubernetes/pkg/client/unversioned/clientcmd"
+	utilnet "k8s.io/kubernetes/pkg/util/net"
+)
+
+const (
+	UserAgentName = "Cluster-Controller"
+	KubeAPIQPS    = 20.0
+	KubeAPIBurst  = 30
+)
+
+type ClusterClient struct {
+	discoveryClient *discovery.DiscoveryClient
+}
+
+func NewClusterClientSet(c *federation_v1alpha1.Cluster) (*ClusterClient, error) {
+	var serverAddress string
+	hostIP, err := utilnet.ChooseHostInterface()
+	if err != nil {
+		return nil, err
+	}
+
+	for _, item := range c.Spec.ServerAddressByClientCIDRs {
+		_, cidrnet, err := net.ParseCIDR(item.ClientCIDR)
+		if err != nil {
+			return nil, err
+		}
+		myaddr := net.ParseIP(hostIP.String())
+		if cidrnet.Contains(myaddr) == true {
+			serverAddress = item.ServerAddress
+			break
+		}
+	}
+	var clusterClientSet = ClusterClient{}
+	if serverAddress != "" {
+		clusterConfig, err := clientcmd.BuildConfigFromFlags(serverAddress, "")
+		if err != nil {
+			return nil, err
+		}
+		clusterConfig.QPS = KubeAPIQPS
+		clusterConfig.Burst = KubeAPIBurst
+		clusterClientSet.discoveryClient = discovery.NewDiscoveryClientForConfigOrDie((restclient.AddUserAgent(clusterConfig, UserAgentName)))
+		if clusterClientSet.discoveryClient == nil {
+			return nil, nil
+		}
+	}
+	return &clusterClientSet, err
+}
+
+// GetClusterHealthStatus gets the kubernetes cluster health status by requesting "/healthz"
+func (self *ClusterClient) GetClusterHealthStatus() *federation_v1alpha1.ClusterStatus {
+	clusterStatus := federation_v1alpha1.ClusterStatus{}
+	currentTime := unversioned.Now()
+	newClusterReadyCondition := federation_v1alpha1.ClusterCondition{
+		Type:               federation_v1alpha1.ClusterReady,
+		Status:             v1.ConditionTrue,
+		Reason:             "ClusterReady",
+		Message:            "/healthz responded with ok",
+		LastProbeTime:      currentTime,
+		LastTransitionTime: currentTime,
+	}
+	newClusterNotReadyCondition := federation_v1alpha1.ClusterCondition{
+		Type:               federation_v1alpha1.ClusterReady,
+		Status:             v1.ConditionFalse,
+		Reason:             "ClusterNotReady",
+		Message:            "/healthz responded without ok",
+		LastProbeTime:      currentTime,
+		LastTransitionTime: currentTime,
+	}
+	newNodeOfflineCondition := federation_v1alpha1.ClusterCondition{
+		Type:               federation_v1alpha1.ClusterOffline,
+		Status:             v1.ConditionTrue,
+		Reason:             "ClusterNotReachable",
+		Message:            "cluster is not reachable",
+		LastProbeTime:      currentTime,
+		LastTransitionTime: currentTime,
+	}
+	newNodeNotOfflineCondition := federation_v1alpha1.ClusterCondition{
+		Type:               federation_v1alpha1.ClusterOffline,
+		Status:             v1.ConditionFalse,
+		Reason:             "ClusterReachable",
+		Message:            "cluster is reachable",
+		LastProbeTime:      currentTime,
+		LastTransitionTime: currentTime,
+	}
+	body, err := self.discoveryClient.Get().AbsPath("/healthz").Do().Raw()
+	if err != nil {
+		clusterStatus.Conditions = append(clusterStatus.Conditions, newNodeOfflineCondition)
+	} else {
+		if !strings.EqualFold(string(body), "ok") {
+			clusterStatus.Conditions = append(clusterStatus.Conditions, newClusterNotReadyCondition, newNodeNotOfflineCondition)
+		} else {
+			clusterStatus.Conditions = append(clusterStatus.Conditions, newClusterReadyCondition)
+		}
+	}
+	return &clusterStatus
+}
diff --git a/federation/pkg/federation-controller/cluster/clustercontroller.go b/federation/pkg/federation-controller/cluster/clustercontroller.go
new file mode 100644
index 00000000000..3b1ae48e9ac
--- /dev/null
+++ b/federation/pkg/federation-controller/cluster/clustercontroller.go
@@ -0,0 +1,196 @@
+/*
+Copyright 2014 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+package cluster
+
+import (
+	"strings"
+	"time"
+
+	"github.com/golang/glog"
+	"k8s.io/kubernetes/federation/apis/federation"
+	federation_v1alpha1 "k8s.io/kubernetes/federation/apis/federation/v1alpha1"
+	cluster_cache "k8s.io/kubernetes/federation/client/cache"
+	federationclientset "k8s.io/kubernetes/federation/client/clientset_generated/federation_release_1_3"
+	"k8s.io/kubernetes/pkg/api"
+	"k8s.io/kubernetes/pkg/client/cache"
+	"k8s.io/kubernetes/pkg/controller"
+	"k8s.io/kubernetes/pkg/controller/framework"
+	"k8s.io/kubernetes/pkg/runtime"
+	utilruntime "k8s.io/kubernetes/pkg/util/runtime"
+	"k8s.io/kubernetes/pkg/util/sets"
+	"k8s.io/kubernetes/pkg/util/wait"
+	"k8s.io/kubernetes/pkg/watch"
+)
+
+type ClusterController struct {
+	knownClusterSet sets.String
+
+	// federationClient used to operate cluster
+	federationClient federationclientset.Interface
+
+	// clusterMonitorPeriod is the period for updating status of cluster
+	clusterMonitorPeriod time.Duration
+	// clusterClusterStatusMap is a mapping of clusterName and cluster status of last sampling
+	clusterClusterStatusMap map[string]federation_v1alpha1.ClusterStatus
+
+	// clusterKubeClientMap is a mapping of clusterName and restclient
+	clusterKubeClientMap map[string]ClusterClient
+
+	// cluster framework and store
+	clusterController *framework.Controller
+	clusterStore      cluster_cache.StoreToClusterLister
+}
+
+// NewclusterController returns a new cluster controller
+func NewclusterController(federationClient federationclientset.Interface, clusterMonitorPeriod time.Duration) *ClusterController {
+	cc := &ClusterController{
+		knownClusterSet:         make(sets.String),
+		federationClient:        federationClient,
+		clusterMonitorPeriod:    clusterMonitorPeriod,
+		clusterClusterStatusMap: make(map[string]federation_v1alpha1.ClusterStatus),
+		clusterKubeClientMap:    make(map[string]ClusterClient),
+	}
+	cc.clusterStore.Store, cc.clusterController = framework.NewInformer(
+		&cache.ListWatch{
+			ListFunc: func(options api.ListOptions) (runtime.Object, error) {
+				return cc.federationClient.Federation().Clusters().List(options)
+			},
+			WatchFunc: func(options api.ListOptions) (watch.Interface, error) {
+				return cc.federationClient.Federation().Clusters().Watch(options)
+			},
+		},
+		&federation.Cluster{},
+		controller.NoResyncPeriodFunc(),
+		framework.ResourceEventHandlerFuncs{
+			DeleteFunc: cc.delFromClusterSet,
+			AddFunc:    cc.addToClusterSet,
+		},
+	)
+	return cc
+}
+
+// delFromClusterSet delete a cluster from clusterSet and
+// delete the corresponding restclient from the map clusterKubeClientMap
+func (cc *ClusterController) delFromClusterSet(obj interface{}) {
+	cluster := obj.(*federation_v1alpha1.Cluster)
+	cc.knownClusterSet.Delete(cluster.Name)
+	delete(cc.clusterKubeClientMap, cluster.Name)
+}
+
+// addToClusterSet insert the new cluster to clusterSet and create a corresponding
+// restclient to map clusterKubeClientMap
+func (cc *ClusterController) addToClusterSet(obj interface{}) {
+	cluster := obj.(*federation_v1alpha1.Cluster)
+	cc.knownClusterSet.Insert(cluster.Name)
+	// create the restclient of cluster
+	restClient, err := NewClusterClientSet(cluster)
+	if err != nil || restClient == nil {
+		glog.Errorf("Failed to create corresponding restclient of kubernetes cluster: %v", err)
+		return
+	}
+	cc.clusterKubeClientMap[cluster.Name] = *restClient
+}
+
+// Run begins watching and syncing.
+func (cc *ClusterController) Run() {
+	defer utilruntime.HandleCrash()
+	go cc.clusterController.Run(wait.NeverStop)
+	// monitor cluster status periodically, in phase 1 we just get the health state from "/healthz"
+	go wait.Until(func() {
+		if err := cc.UpdateClusterStatus(); err != nil {
+			glog.Errorf("Error monitoring cluster status: %v", err)
+		}
+	}, cc.clusterMonitorPeriod, wait.NeverStop)
+}
+
+func (cc *ClusterController) GetClusterStatus(cluster *federation_v1alpha1.Cluster) (*federation_v1alpha1.ClusterStatus, error) {
+	// just get the status of cluster, by requesting the restapi "/healthz"
+	clusterClient, found := cc.clusterKubeClientMap[cluster.Name]
+	if !found {
+		glog.Infof("It's a new cluster, a cluster client will be created")
+		client, err := NewClusterClientSet(cluster)
+		if err != nil || client == nil {
+			glog.Infof("Failed to create cluster client, err: %v", err)
+			return nil, err
+		}
+		clusterClient = *client
+		cc.clusterKubeClientMap[cluster.Name] = clusterClient
+	}
+	clusterStatus := clusterClient.GetClusterHealthStatus()
+	return clusterStatus, nil
+}
+
+// UpdateClusterStatus checks cluster status and get the metrics from cluster's restapi
+func (cc *ClusterController) UpdateClusterStatus() error {
+	clusters, err := cc.federationClient.Federation().Clusters().List(api.ListOptions{})
+	if err != nil {
+		return err
+	}
+	for _, cluster := range clusters.Items {
+		if !cc.knownClusterSet.Has(cluster.Name) {
+			glog.V(1).Infof("ClusterController observed a new cluster: %#v", cluster)
+			cc.knownClusterSet.Insert(cluster.Name)
+		}
+	}
+
+	// If there's a difference between lengths of known clusters and observed clusters
+	if len(cc.knownClusterSet) != len(clusters.Items) {
+		observedSet := make(sets.String)
+		for _, cluster := range clusters.Items {
+			observedSet.Insert(cluster.Name)
+		}
+		deleted := cc.knownClusterSet.Difference(observedSet)
+		for clusterName := range deleted {
+			glog.V(1).Infof("ClusterController observed a Cluster deletion: %v", clusterName)
+			cc.knownClusterSet.Delete(clusterName)
+		}
+	}
+	for _, cluster := range clusters.Items {
+		clusterStatusNew, err := cc.GetClusterStatus(&cluster)
+		if err != nil {
+			glog.Infof("Failed to Get the status of cluster: %v", cluster.Name)
+			continue
+		}
+		clusterStatusOld, found := cc.clusterClusterStatusMap[cluster.Name]
+		if !found {
+			glog.Infof("There is no status stored for cluster: %v before", cluster.Name)
+
+		} else {
+			hasTransition := false
+			for i := 0; i < len(clusterStatusNew.Conditions); i++ {
+				if !(strings.EqualFold(string(clusterStatusNew.Conditions[i].Type), string(clusterStatusOld.Conditions[i].Type)) &&
+					strings.EqualFold(string(clusterStatusNew.Conditions[i].Status), string(clusterStatusOld.Conditions[i].Status))) {
+					hasTransition = true
+					break
+				}
+			}
+			if !hasTransition {
+				for j := 0; j < len(clusterStatusNew.Conditions); j++ {
+					clusterStatusNew.Conditions[j].LastTransitionTime = clusterStatusOld.Conditions[j].LastTransitionTime
+				}
+			}
+		}
+		cc.clusterClusterStatusMap[cluster.Name] = *clusterStatusNew
+		cluster.Status = *clusterStatusNew
+		cluster, err := cc.federationClient.Federation().Clusters().UpdateStatus(&cluster)
+		if err != nil {
+			glog.Infof("Failed to update the status of cluster: %v ,error is : %v", cluster.Name, err)
+			continue
+		}
+	}
+	return nil
+}
diff --git a/federation/pkg/federation-controller/cluster/clustercontroller_test.go b/federation/pkg/federation-controller/cluster/clustercontroller_test.go
new file mode 100644
index 00000000000..13491dccd40
--- /dev/null
+++ b/federation/pkg/federation-controller/cluster/clustercontroller_test.go
@@ -0,0 +1,138 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+package cluster
+
+import (
+	"encoding/json"
+	"fmt"
+	"net/http"
+	"net/http/httptest"
+	"testing"
+
+	federation_v1alpha1 "k8s.io/kubernetes/federation/apis/federation/v1alpha1"
+	federationclientset "k8s.io/kubernetes/federation/client/clientset_generated/federation_release_1_3"
+	"k8s.io/kubernetes/pkg/api/testapi"
+	"k8s.io/kubernetes/pkg/api/unversioned"
+	"k8s.io/kubernetes/pkg/api/v1"
+	"k8s.io/kubernetes/pkg/client/restclient"
+	"k8s.io/kubernetes/pkg/client/unversioned/clientcmd"
+	"k8s.io/kubernetes/pkg/util"
+)
+
+func newCluster(clusterName string, serverUrl string) *federation_v1alpha1.Cluster {
+	cluster := federation_v1alpha1.Cluster{
+		TypeMeta: unversioned.TypeMeta{APIVersion: testapi.Federation.GroupVersion().String()},
+		ObjectMeta: v1.ObjectMeta{
+			UID:  util.NewUUID(),
+			Name: clusterName,
+		},
+		Spec: federation_v1alpha1.ClusterSpec{
+			ServerAddressByClientCIDRs: []federation_v1alpha1.ServerAddressByClientCIDR{
+				{
+					ClientCIDR:    "0.0.0.0/0",
+					ServerAddress: serverUrl,
+				},
+			},
+		},
+	}
+	return &cluster
+}
+
+func newClusterList(cluster *federation_v1alpha1.Cluster) *federation_v1alpha1.ClusterList {
+	clusterList := federation_v1alpha1.ClusterList{
+		TypeMeta: unversioned.TypeMeta{APIVersion: testapi.Federation.GroupVersion().String()},
+		ListMeta: unversioned.ListMeta{
+			SelfLink: "foobar",
+		},
+		Items: []federation_v1alpha1.Cluster{},
+	}
+	clusterList.Items = append(clusterList.Items, *cluster)
+	return &clusterList
+}
+
+// init a fake http handler, simulate a federation apiserver, response the "DELETE" "PUT" "GET" "UPDATE"
+// when "canBeGotten" is false, means that user can not get the cluster cluster from apiserver
+func createHttptestFakeHandlerForFederation(clusterList *federation_v1alpha1.ClusterList, canBeGotten bool) *http.HandlerFunc {
+	fakeHandler := http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		clusterListString, _ := json.Marshal(*clusterList)
+		w.Header().Set("Content-Type", "application/json")
+		switch r.Method {
+		case "PUT":
+			fmt.Fprintln(w, string(clusterListString))
+		case "GET":
+			if canBeGotten {
+				fmt.Fprintln(w, string(clusterListString))
+			} else {
+				fmt.Fprintln(w, "")
+			}
+		default:
+			fmt.Fprintln(w, "")
+		}
+	})
+	return &fakeHandler
+}
+
+// init a fake http handler, simulate a cluster apiserver, response the "/healthz"
+// when "canBeGotten" is false, means that user can not get response from apiserver
+func createHttptestFakeHandlerForCluster(canBeGotten bool) *http.HandlerFunc {
+	fakeHandler := http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.Header().Set("Content-Type", "application/json")
+		switch r.Method {
+		case "GET":
+			if canBeGotten {
+				fmt.Fprintln(w, "ok")
+			} else {
+				w.WriteHeader(http.StatusNotFound)
+			}
+		default:
+			fmt.Fprintln(w, "")
+		}
+	})
+	return &fakeHandler
+}
+
+func TestUpdateClusterStatusOK(t *testing.T) {
+	clusterName := "foobarCluster"
+	// create dummy httpserver
+	testClusterServer := httptest.NewServer(createHttptestFakeHandlerForCluster(true))
+	defer testClusterServer.Close()
+	federationCluster := newCluster(clusterName, testClusterServer.URL)
+	federationClusterList := newClusterList(federationCluster)
+
+	testFederationServer := httptest.NewServer(createHttptestFakeHandlerForFederation(federationClusterList, true))
+	defer testFederationServer.Close()
+
+	restClientCfg, err := clientcmd.BuildConfigFromFlags(testFederationServer.URL, "")
+	if err != nil {
+		t.Errorf("Failed to build client config")
+	}
+	federationClientSet := federationclientset.NewForConfigOrDie(restclient.AddUserAgent(restClientCfg, "cluster-controller"))
+
+	manager := NewclusterController(federationClientSet, 5)
+	err = manager.UpdateClusterStatus()
+	if err != nil {
+		t.Errorf("Failed to Update Cluster Status: %v", err)
+	}
+	clusterStatus, found := manager.clusterClusterStatusMap[clusterName]
+	if !found {
+		t.Errorf("Failed to Update Cluster Status")
+	} else {
+		if (clusterStatus.Conditions[1].Status != v1.ConditionFalse) || (clusterStatus.Conditions[1].Type != federation_v1alpha1.ClusterOffline) {
+			t.Errorf("Failed to Update Cluster Status")
+		}
+	}
+}
diff --git a/federation/pkg/federation-controller/cluster/doc.go b/federation/pkg/federation-controller/cluster/doc.go
new file mode 100644
index 00000000000..0815e8418a1
--- /dev/null
+++ b/federation/pkg/federation-controller/cluster/doc.go
@@ -0,0 +1,18 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+// Package cluster contains code for syncing cluster
+package cluster
diff --git a/federation/pkg/federation-controller/doc.go b/federation/pkg/federation-controller/doc.go
new file mode 100644
index 00000000000..2d806482ed4
--- /dev/null
+++ b/federation/pkg/federation-controller/doc.go
@@ -0,0 +1,19 @@
+/*
+Copyright 2015 The Kubernetes Authors All rights reserved.
+
+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.
+*/
+
+// Package federation_controller contains code for controllers (like the cluster
+// controller).
+package federation_controller
diff --git a/hack/lib/golang.sh b/hack/lib/golang.sh
index 95e1ce8c790..4f5c4b7f52d 100755
--- a/hack/lib/golang.sh
+++ b/hack/lib/golang.sh
@@ -37,6 +37,7 @@ kube::golang::server_targets() {
     cmd/kubemark
     cmd/hyperkube
     federation/cmd/federated-apiserver
+    federation/cmd/federation-controller-manager
     plugin/cmd/kube-scheduler
   )
   if [ -n "${KUBERNETES_CONTRIB:-}" ]; then
diff --git a/hack/verify-flags/known-flags.txt b/hack/verify-flags/known-flags.txt
index 6befaeb17d1..3010d263fb2 100644
--- a/hack/verify-flags/known-flags.txt
+++ b/hack/verify-flags/known-flags.txt
@@ -54,6 +54,7 @@ cluster-dns
 cluster-domain
 cluster-name
 cluster-tag
+cluster-monitor-period
 concurrent-deployment-syncs
 concurrent-endpoint-syncs
 concurrent-namespace-syncs
@@ -136,6 +137,8 @@ external-ip
 failover-timeout
 failure-domains
 fake-clientset
+federated-api-burst
+federated-api-qps
 file-check-frequency
 file-suffix
 file_content_in_loop