diff --git a/cluster/addons/ip-masq-agent/ip-masq-agent.yaml b/cluster/addons/ip-masq-agent/ip-masq-agent.yaml
new file mode 100644
index 00000000000..cc24c28d2d5
--- /dev/null
+++ b/cluster/addons/ip-masq-agent/ip-masq-agent.yaml
@@ -0,0 +1,38 @@
+# https://github.com/kubernetes-incubator/ip-masq-agent/blob/v2.0.0/README.md
+apiVersion: extensions/v1beta1
+kind: DaemonSet
+metadata:
+  name: ip-masq-agent
+  namespace: kube-system
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile  
+spec:
+  template:
+    metadata:
+      labels:
+        k8s-app: ip-masq-agent
+      annotations:
+        scheduler.alpha.kubernetes.io/critical-pod: ''
+        scheduler.alpha.kubernetes.io/tolerations: |
+          [{"key": "dedicated", "value": "master", "effect": "NoSchedule" },
+          {"key":"CriticalAddonsOnly", "operator":"Exists"}]
+    spec:
+      hostNetwork: true
+      containers:
+      - name: ip-masq-agent
+        image: gcr.io/google-containers/ip-masq-agent-amd64:v2.0.0
+        securityContext:
+          privileged: true
+        volumeMounts:
+          - name: config
+            mountPath: /etc/config
+      volumes:
+        - name: config
+          configMap:
+            # Note this ConfigMap must be created in the same namespace as the daemon pods - this spec uses kube-system
+            name: ip-masq-agent
+            optional: true
+            items:
+              # The daemon looks for its config in a YAML file at /etc/config/ip-masq-agent
+              - key: config
+                path: ip-masq-agent
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 4569f4e8959..00eece088ca 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -1424,6 +1424,9 @@ function start-kube-addons {
   if [[ "${ENABLE_DEFAULT_STORAGE_CLASS:-}" == "true" ]]; then
     setup-addon-manifests "addons" "storage-class/gce"
   fi
+  if [[ "${NON_MASQUERADE_CIDR:-}" == "0.0.0.0/0" ]]; then
+    setup-addon-manifests "addons" "ip-masq-agent"
+  fi
 
   # Place addon manager pod manifest.
   cp "${src_dir}/kube-addon-manager.yaml" /etc/kubernetes/manifests