diff --git a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/BUILD b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/BUILD
index ce6df23f97a..ba39e251e0d 100644
--- a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/BUILD
+++ b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/BUILD
@@ -12,14 +12,17 @@ go_library(
     name = "go_default_library",
     srcs = [
         "config.go",
+        "plugins.go",
         "types.go",
     ],
     tags = ["automanaged"],
     deps = [
         "//vendor/github.com/ghodss/yaml:go_default_library",
+        "//vendor/github.com/golang/glog:go_default_library",
         "//vendor/k8s.io/apimachinery/pkg/runtime/schema:go_default_library",
         "//vendor/k8s.io/apiserver/pkg/storage/value:go_default_library",
         "//vendor/k8s.io/apiserver/pkg/storage/value/encrypt/aes:go_default_library",
+        "//vendor/k8s.io/apiserver/pkg/storage/value/encrypt/envelope:go_default_library",
         "//vendor/k8s.io/apiserver/pkg/storage/value/encrypt/identity:go_default_library",
         "//vendor/k8s.io/apiserver/pkg/storage/value/encrypt/secretbox:go_default_library",
     ],
diff --git a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/config.go b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/config.go
index 6e11d617583..8d86339b09b 100644
--- a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/config.go
+++ b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/config.go
@@ -30,6 +30,7 @@ import (
 	"k8s.io/apimachinery/pkg/runtime/schema"
 	"k8s.io/apiserver/pkg/storage/value"
 	aestransformer "k8s.io/apiserver/pkg/storage/value/encrypt/aes"
+	"k8s.io/apiserver/pkg/storage/value/encrypt/envelope"
 	"k8s.io/apiserver/pkg/storage/value/encrypt/identity"
 	"k8s.io/apiserver/pkg/storage/value/encrypt/secretbox"
 )
@@ -38,6 +39,7 @@ const (
 	aesCBCTransformerPrefixV1    = "k8s:enc:aescbc:v1:"
 	aesGCMTransformerPrefixV1    = "k8s:enc:aesgcm:v1:"
 	secretboxTransformerPrefixV1 = "k8s:enc:secretbox:v1:"
+	kmsTransformerPrefixV1       = "k8s:enc:kms:v1:"
 )
 
 // GetTransformerOverrides returns the transformer overrides by reading and parsing the encryption provider configuration file
@@ -144,6 +146,27 @@ func GetPrefixTransformers(config *ResourceConfig) ([]value.PrefixTransformer, e
 			found = true
 		}
 
+		if provider.KMS != nil {
+			if found == true {
+				return nil, fmt.Errorf("more than one provider specified in a single element, should split into different list elements")
+			}
+
+			f, err := os.Open(provider.KMS.ConfigFile)
+			if err != nil {
+				return nil, fmt.Errorf("error opening KMS provider configuration file %q: %v", provider.KMS.ConfigFile, err)
+			}
+			defer f.Close()
+			envelopeService, pluginFound, err := KMSPluginRegistry.getPlugin(provider.KMS.Name, f)
+			if err != nil {
+				return nil, fmt.Errorf("could not configure KMS plugin %q, %v", provider.KMS.Name, err)
+			}
+			if pluginFound == false {
+				return nil, fmt.Errorf("KMS plugin %q not found", provider.KMS.Name)
+			}
+			transformer, err = getEnvelopePrefixTransformer(provider.KMS, envelopeService)
+			found = true
+		}
+
 		if err != nil {
 			return result, err
 		}
@@ -258,3 +281,16 @@ func GetSecretboxPrefixTransformer(config *SecretboxConfig) (value.PrefixTransfo
 	}
 	return result, nil
 }
+
+// getEnvelopePrefixTransformer returns a prefix transformer from the provided config.
+// envelopeService is used as the root of trust.
+func getEnvelopePrefixTransformer(config *KMSConfig, envelopeService envelope.Service) (value.PrefixTransformer, error) {
+	envelopeTransformer, err := envelope.NewEnvelopeTransformer(envelopeService, config.CacheSize, aestransformer.NewCBCTransformer)
+	if err != nil {
+		return value.PrefixTransformer{}, err
+	}
+	return value.PrefixTransformer{
+		Transformer: envelopeTransformer,
+		Prefix:      []byte(kmsTransformerPrefixV1 + config.Name + ":"),
+	}, nil
+}
diff --git a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/plugins.go b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/plugins.go
new file mode 100644
index 00000000000..c55e6a20ddd
--- /dev/null
+++ b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/plugins.go
@@ -0,0 +1,130 @@
+/*
+Copyright 2017 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.
+*/
+
+package encryptionconfig
+
+import (
+	"bytes"
+	"io"
+	"io/ioutil"
+	"reflect"
+	"sync"
+
+	"github.com/golang/glog"
+
+	"k8s.io/apiserver/pkg/storage/value/encrypt/envelope"
+)
+
+// Factory is a function that returns an envelope Service for encryption providers.
+// The config parameter provides an io.Reader handler to the factory in
+// order to load specific configurations. If no configuration is provided
+// the parameter is nil.
+type Factory func(config io.Reader) (envelope.Service, error)
+
+type cloudKMSFactory func(name string) (envelope.Service, error)
+
+// KMSPlugins contains all registered KMS options.
+type KMSPlugins struct {
+	lock     sync.RWMutex
+	registry map[string]Factory
+	cloudKMS cloudKMSFactory
+}
+
+var (
+	// PluginEnabledFn checks whether a plugin is enabled.  By default, if you ask about it, it's enabled.
+	PluginEnabledFn = func(name string, config io.Reader) bool {
+		return true
+	}
+
+	// KMSPluginRegistry contains the registered KMS plugins which can be used for configuring
+	// encryption providers.
+	KMSPluginRegistry = KMSPlugins{}
+)
+
+// PluginEnabledFunc is a function type that can provide an external check on whether an admission plugin may be enabled
+type PluginEnabledFunc func(name string, config io.Reader) bool
+
+// Register registers a plugin Factory by name. This
+// is expected to happen during app startup.
+func (ps *KMSPlugins) Register(name string, plugin Factory) {
+	ps.lock.Lock()
+	defer ps.lock.Unlock()
+	_, found := ps.registry[name]
+	if ps.registry == nil {
+		ps.registry = map[string]Factory{}
+	}
+	if found {
+		glog.Fatalf("KMS plugin %q was registered twice", name)
+	}
+	glog.V(1).Infof("Registered KMS plugin %q", name)
+	ps.registry[name] = plugin
+}
+
+// RegisterCloudProvidedKMSPlugin registers the cloud's KMS provider as
+// an envelope.Service. This service is provided by the cloudprovider interface.
+func (ps *KMSPlugins) RegisterCloudProvidedKMSPlugin(cloudKMSGetter cloudKMSFactory) {
+	ps.cloudKMS = cloudKMSGetter
+}
+
+// getPlugin creates an instance of the named plugin.  It returns `false` if the
+// the name is not known. The error is returned only when the named provider was
+// known but failed to initialize.  The config parameter specifies the io.Reader
+// handler of the configuration file for the cloud provider, or nil for no configuration.
+func (ps *KMSPlugins) getPlugin(name string, config io.Reader) (envelope.Service, bool, error) {
+	f, found := ps.fetchPluginFromRegistry(name)
+	if !found {
+		return nil, false, nil
+	}
+
+	config1, config2, err := splitStream(config)
+	if err != nil {
+		return nil, true, err
+	}
+	if !PluginEnabledFn(name, config1) {
+		return nil, true, nil
+	}
+
+	ret, err := f(config2)
+	return ret, true, err
+}
+
+// fetchPluginFromRegistry tries to get a registered plugin with the requested name.
+func (ps *KMSPlugins) fetchPluginFromRegistry(name string) (Factory, bool) {
+	ps.lock.RLock()
+	defer ps.lock.RUnlock()
+	// Map lookup defaults to single value context
+	f, found := ps.registry[name]
+	return f, found
+}
+
+// getCloudProvidedPlugin creates an instance of the named cloud provided KMS plugin.
+func (ps *KMSPlugins) getCloudProvidedPlugin(name string) (envelope.Service, error) {
+	return ps.cloudKMS(name)
+}
+
+// splitStream reads the stream bytes and constructs two copies of it.
+func splitStream(config io.Reader) (io.Reader, io.Reader, error) {
+	if config == nil || reflect.ValueOf(config).IsNil() {
+		return nil, nil, nil
+	}
+
+	configBytes, err := ioutil.ReadAll(config)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	return bytes.NewBuffer(configBytes), bytes.NewBuffer(configBytes), nil
+}
diff --git a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/types.go b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/types.go
index 1a88392c78a..c983e942dae 100644
--- a/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/types.go
+++ b/staging/src/k8s.io/apiserver/pkg/server/options/encryptionconfig/types.go
@@ -45,6 +45,8 @@ type ProviderConfig struct {
 	Secretbox *SecretboxConfig `json:"secretbox,omitempty"`
 	// identity is the (empty) configuration for the identity transformer.
 	Identity *IdentityConfig `json:"identity,omitempty"`
+	// kms contains the name and path to configuration file for a KMS based envelope transformer.
+	KMS *KMSConfig `json:"kms,omitempty"`
 }
 
 // AESConfig contains the API configuration for an AES transformer.
@@ -71,3 +73,14 @@ type Key struct {
 
 // IdentityConfig is an empty struct to allow identity transformer in provider configuration.
 type IdentityConfig struct{}
+
+// KMS contains the name and path to configuration file for a KMS based envelope transformer.
+type KMSConfig struct {
+	// name is the name of the KMS plugin to be used.
+	Name string `json:"name"`
+	// cacheSize is the maximum number of secrets which are cached in memory. The default value is 1000.
+	// +optional
+	CacheSize int `json:"cachesize,omitempty"`
+	// configfile is the path to the configuration file for the named KMS provider.
+	ConfigFile string `json:"configfile"`
+}