diff --git a/cluster/gce/addons/node-termination-handler/README b/cluster/gce/addons/node-termination-handler/README
new file mode 100644
index 00000000000..bca8ade8952
--- /dev/null
+++ b/cluster/gce/addons/node-termination-handler/README
@@ -0,0 +1,4 @@
+# GCE Node Termination Handler
+
+This addon deploys [GCE Node Termination Handler](https://github.com/GoogleCloudPlatform/k8s-node-termination-handler) on to kubernetes clusters on GCP.
+It is meant to help translate GCE VM termination notifications into kubernetes graceful terminations.
diff --git a/cluster/gce/addons/node-termination-handler/daemonset.yaml b/cluster/gce/addons/node-termination-handler/daemonset.yaml
new file mode 100644
index 00000000000..4430e929572
--- /dev/null
+++ b/cluster/gce/addons/node-termination-handler/daemonset.yaml
@@ -0,0 +1,76 @@
+---
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+    k8s-app: node-termination-handler
+  namespace: kube-system
+  name: node-termination-handler
+spec:
+  selector:
+    matchLabels:
+      k8s-app: node-termination-handler
+  updateStrategy:
+    type: RollingUpdate
+  template:
+    metadata:
+      labels:
+        k8s-app: node-termination-handler
+      annotations:
+        scheduler.alpha.kubernetes.io/critical-pod: ''
+    spec:
+      priorityClassName: system-node-critical
+      # Necessary to reboot node
+      hostPID: true
+      affinity:
+        nodeAffinity:
+          # Restrict to GPU nodes or preemptible nodes
+          requiredDuringSchedulingIgnoredDuringExecution:
+            nodeSelectorTerms:
+              - matchExpressions:
+                  - key: cloud.google.com/gke-accelerator
+                    operator: Exists
+              - matchExpressions:
+                  - key: cloud.google.com/gke-preemptible
+                    operator: Exists
+      volumes:
+        - name: klet-service-account
+          hostPath:
+            path: /var/lib/kubelet
+        - name: klet-ca-crt
+          hostPath:
+            path: /etc/srv/kubernetes
+      tolerations:
+        # Run regardless of any existing taints.
+        - effect: NoSchedule
+          operator: Exists
+        - effect: NoExecute
+          operator: Exists
+      containers:
+        - image: k8s.gcr.io/gke-node-termination-handler@sha256:e08ca863a547754fa7b75064bdad04f04cbef86c7b0a181ecc7304e747623181
+          name: node-termination-handler
+          command: ["./node-termination-handler"]
+          args: ["--logtostderr", "--exclude-pods=$(POD_NAME):$(POD_NAMESPACE)", "-v=10", "--kubeconfig=/var/lib/kubelet/kubeconfig", "--annotation=cloud.google.com/impending-node-termination"]
+          securityContext:
+            capabilities:
+              # Necessary to reboot node
+              add: ["SYS_BOOT"]
+          env:
+            - name: POD_NAME
+              valueFrom:
+                fieldRef:
+                  fieldPath: metadata.name
+            - name: POD_NAMESPACE
+              valueFrom:
+                fieldRef:
+                  fieldPath: metadata.namespace
+          resources:
+            limits:
+              cpu: 50m
+              memory: 30Mi
+          volumeMounts:
+            - name: klet-service-account
+              mountPath: /var/lib/kubelet
+            - name: klet-ca-crt
+              mountPath: /etc/srv/kubernetes
diff --git a/cluster/gce/config-default.sh b/cluster/gce/config-default.sh
index b39ebbae2d9..d8828c60455 100755
--- a/cluster/gce/config-default.sh
+++ b/cluster/gce/config-default.sh
@@ -37,6 +37,14 @@ MASTER_ROOT_DISK_SIZE=${MASTER_ROOT_DISK_SIZE:-$(get-master-root-disk-size)}
 NODE_DISK_TYPE=${NODE_DISK_TYPE:-pd-standard}
 NODE_DISK_SIZE=${NODE_DISK_SIZE:-100GB}
 NODE_LOCAL_SSDS=${NODE_LOCAL_SSDS:-0}
+
+# Historically fluentd was a manifest pod and then was migrated to DaemonSet.
+# To avoid situation during cluster upgrade when there are two instances
+# of fluentd running on a node, kubelet need to mark node on which
+# fluentd is not running as a manifest pod with appropriate label.
+# TODO(piosz): remove this in 1.8
+NODE_LABELS="${KUBE_NODE_LABELS:-beta.kubernetes.io/fluentd-ds-ready=true}"
+
 # An extension to local SSDs allowing users to specify block/fs and SCSI/NVMe devices
 # Format of this variable will be "#,scsi/nvme,block/fs" you can specify multiple
 # configurations by separating them by a semi-colon ex. "2,scsi,fs;1,nvme,block"
@@ -47,6 +55,9 @@ NODE_LOCAL_SSDS_EXT=${NODE_LOCAL_SSDS_EXT:-}
 NODE_ACCELERATORS=${NODE_ACCELERATORS:-""}
 REGISTER_MASTER_KUBELET=${REGISTER_MASTER:-true}
 PREEMPTIBLE_NODE=${PREEMPTIBLE_NODE:-false}
+if [[ "${PREEMPTIBLE_NODE}" == "true" ]]; then
+    NODE_LABELS="${NODE_LABELS},cloud.google.com/gke-preemptible=true"
+fi
 PREEMPTIBLE_MASTER=${PREEMPTIBLE_MASTER:-false}
 KUBE_DELETE_NODES=${KUBE_DELETE_NODES:-true}
 KUBE_DELETE_NETWORK=${KUBE_DELETE_NETWORK:-} # default value calculated below
@@ -163,13 +174,6 @@ ENABLE_METADATA_AGENT="${KUBE_ENABLE_METADATA_AGENT:-none}"
 # Useful for scheduling heapster in large clusters with nodes of small size.
 HEAPSTER_MACHINE_TYPE="${HEAPSTER_MACHINE_TYPE:-}"
 
-# Historically fluentd was a manifest pod and then was migrated to DaemonSet.
-# To avoid situation during cluster upgrade when there are two instances
-# of fluentd running on a node, kubelet need to mark node on which
-# fluentd is not running as a manifest pod with appropriate label.
-# TODO(piosz): remove this in 1.8
-NODE_LABELS="${KUBE_NODE_LABELS:-beta.kubernetes.io/fluentd-ds-ready=true}"
-
 # NON_MASTER_NODE_LABELS are labels will only be applied on non-master nodes.
 NON_MASTER_NODE_LABELS="${KUBE_NON_MASTER_NODE_LABELS:-}"
 
@@ -457,3 +461,11 @@ if [[ "${ENABLE_TOKENREQUEST:-}" == "true" ]]; then
   SERVICEACCOUNT_ISSUER="https://kubernetes.io/${CLUSTER_NAME}"
   SERVICEACCOUNT_API_AUDIENCES="https://kubernetes.default.svc"
 fi
+
+# Optional: Enable Node termination Handler for Preemptible and GPU VMs.
+# https://github.com/GoogleCloudPlatform/k8s-node-termination-handler
+ENABLE_NODE_TERMINATION_HANDLER="${ENABLE_NODE_TERMINATION_HANDLER:-false}"
+# Override default Node Termination Handler Image
+if [[ "${NODE_TERMINATION_HANDLER_IMAGE:-}" ]]; then
+  PROVIDER_VARS="${PROVIDER_VARS:-} NODE_TERMINATION_HANDLER_IMAGE"
+fi
diff --git a/cluster/gce/config-test.sh b/cluster/gce/config-test.sh
index 62eb1eab30a..57a49458b24 100755
--- a/cluster/gce/config-test.sh
+++ b/cluster/gce/config-test.sh
@@ -37,6 +37,14 @@ MASTER_ROOT_DISK_SIZE=${MASTER_ROOT_DISK_SIZE:-$(get-master-root-disk-size)}
 NODE_DISK_TYPE=${NODE_DISK_TYPE:-pd-standard}
 NODE_DISK_SIZE=${NODE_DISK_SIZE:-100GB}
 NODE_LOCAL_SSDS=${NODE_LOCAL_SSDS:-0}
+
+# Historically fluentd was a manifest pod and then was migrated to DaemonSet.
+# To avoid situation during cluster upgrade when there are two instances
+# of fluentd running on a node, kubelet need to mark node on which
+# fluentd is not running as a manifest pod with appropriate label.
+# TODO(piosz): remove this in 1.8
+NODE_LABELS="${KUBE_NODE_LABELS:-beta.kubernetes.io/fluentd-ds-ready=true}"
+
 # An extension to local SSDs allowing users to specify block/fs and SCSI/NVMe devices
 # Format of this variable will be "#,scsi/nvme,block/fs" you can specify multiple
 # configurations by separating them by a semi-colon ex. "2,scsi,fs;1,nvme,block"
@@ -47,6 +55,9 @@ REGISTER_MASTER_KUBELET=${REGISTER_MASTER:-true}
 KUBE_APISERVER_REQUEST_TIMEOUT=300
 PREEMPTIBLE_NODE=${PREEMPTIBLE_NODE:-false}
 PREEMPTIBLE_MASTER=${PREEMPTIBLE_MASTER:-false}
+if [[ "${PREEMPTIBLE_NODE}" == "true" ]]; then
+    NODE_LABELS="${NODE_LABELS},cloud.google.com/gke-preemptible=true"
+fi
 KUBE_DELETE_NODES=${KUBE_DELETE_NODES:-true}
 KUBE_DELETE_NETWORK=${KUBE_DELETE_NETWORK:-true}
 CREATE_CUSTOM_NETWORK=${CREATE_CUSTOM_NETWORK:-false}
@@ -201,13 +212,6 @@ CONTROLLER_MANAGER_TEST_ARGS="${CONTROLLER_MANAGER_TEST_ARGS:-} ${TEST_CLUSTER_R
 SCHEDULER_TEST_ARGS="${SCHEDULER_TEST_ARGS:-} ${TEST_CLUSTER_API_CONTENT_TYPE}"
 KUBEPROXY_TEST_ARGS="${KUBEPROXY_TEST_ARGS:-} ${TEST_CLUSTER_API_CONTENT_TYPE}"
 
-# Historically fluentd was a manifest pod and then was migrated to DaemonSet.
-# To avoid situation during cluster upgrade when there are two instances
-# of fluentd running on a node, kubelet need to mark node on which
-# fluentd is not running as a manifest pod with appropriate label.
-# TODO(piosz): remove this in 1.8
-NODE_LABELS="${KUBE_NODE_LABELS:-beta.kubernetes.io/fluentd-ds-ready=true}"
-
 # NON_MASTER_NODE_LABELS are labels will only be applied on non-master nodes.
 NON_MASTER_NODE_LABELS="${KUBE_NON_MASTER_NODE_LABELS:-}"
 
@@ -476,3 +480,11 @@ if [[ "${ENABLE_TOKENREQUEST:-}" == "true" ]]; then
   SERVICEACCOUNT_ISSUER="https://kubernetes.io/${CLUSTER_NAME}"
   SERVICEACCOUNT_API_AUDIENCES="https://kubernetes.default.svc"
 fi
+
+# Optional: Enable Node termination Handler for Preemptible and GPU VMs.
+# https://github.com/GoogleCloudPlatform/k8s-node-termination-handler
+ENABLE_NODE_TERMINATION_HANDLER="${ENABLE_NODE_TERMINATION_HANDLER:-false}"
+# Override default Node Termination Handler Image
+if [[ "${NODE_TERMINATION_HANDLER_IMAGE:-}" ]]; then
+  PROVIDER_VARS="${PROVIDER_VARS:-} NODE_TERMINATION_HANDLER_IMAGE"
+fi
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index b6b5205c12e..a1734d2bd13 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -2038,6 +2038,12 @@ function setup-addon-manifests {
       copy-manifests "${psp_dir}" "${dst_dir}"
     fi
   fi
+  if [[ "${ENABLE_NODE_TERMINATION_HANDLER}" == "true" ]]; then
+      local -r nth_dir="${src_dir}/${3:-$2}/node-termination-handler"
+      if [[ -d "${nth_dir}" ]]; then
+          copy-manifests "${nth_dir}" "${dst_dir}"
+      fi
+  fi
 }
 
 # A function that downloads extra addons from a URL and puts them in the GCI
@@ -2432,6 +2438,10 @@ EOF
   if [[ "${ENABLE_NVIDIA_GPU_DEVICE_PLUGIN:-}" == "true" ]]; then
     setup-addon-manifests "addons" "device-plugins/nvidia-gpu"
   fi
+  if [[ "${ENABLE_NODE_TERMINATION_HANDLER}" == "true" ]]; then
+      setup-addon-manifests "addons" "node-termination-handler"
+      setup-node-termination-handler-manifest
+  fi
   if [[ "${ENABLE_CLUSTER_DNS:-}" == "true" ]]; then
     if [[ "${CLUSTER_DNS_CORE_DNS:-}" == "true" ]]; then
       setup-addon-manifests "addons" "dns/coredns"
@@ -2511,6 +2521,13 @@ EOF
   cp "${src_dir}/kube-addon-manager.yaml" /etc/kubernetes/manifests
 }
 
+function setup-node-termination-handler-manifest {
+    local -r nth_manifest="/etc/kubernetes/$1/$2/daemonset.yaml"
+    if [[ -n "${NODE_TERMINATION_HANDLER_IMAGE}" ]]; then
+        sed -i "s|image:.*|image: ${NODE_TERMINATION_HANDLER_IMAGE}|" "${nth_manifest}"
+    fi 
+}
+
 # Starts an image-puller - used in test clusters.
 function start-image-puller {
   echo "Start image-puller"
diff --git a/cluster/gce/util.sh b/cluster/gce/util.sh
index 6882c04fbe3..4003fc3dcb4 100755
--- a/cluster/gce/util.sh
+++ b/cluster/gce/util.sh
@@ -911,6 +911,7 @@ VOLUME_PLUGIN_DIR: $(yaml-quote ${VOLUME_PLUGIN_DIR})
 KUBELET_ARGS: $(yaml-quote ${KUBELET_ARGS})
 REQUIRE_METADATA_KUBELET_CONFIG_FILE: $(yaml-quote true)
 ENABLE_NETD: $(yaml-quote ${ENABLE_NETD:-false})
+ENABLE_NODE_TERMINATION_HANDLER: $(yaml-quote ${ENABLE_NODE_TERMINATION_HANDLER:-false})
 CUSTOM_NETD_YAML: |
 $(echo "${CUSTOM_NETD_YAML:-}" | sed -e "s/'/''/g")
 CUSTOM_CALICO_NODE_DAEMONSET_YAML: |