diff --git a/README.md b/README.md
index 55dcfbb..ffcde50 100644
--- a/README.md
+++ b/README.md
@@ -113,8 +113,8 @@ repoServer:
 
 Configure your `argo-cd` app to use a repo/directory which holds a valid
 `helmfile` configuration. This can be a directory which contains a
-`helmfile.yaml` file **OR** a `helmfile.d` directory containing any number of
-`*.yaml` files. You cannot have both configurations.
+`helmfile.yaml` **OR** `helmfile.yaml.gotmpl` file **OR** a `helmfile.d` directory containing any number of
+`*.yaml` or `*.yaml.gotmpl` files. You cannot have both configurations.
 
 There are a number of specially handled `ENV` variables which can be set (all
 optional):
@@ -130,7 +130,7 @@ optional):
 - `HELMFILE_TEMPLATE_OPTIONS` - pass-through options for the templating
   operation `helmfile template --help`
 - `HELMFILE_INIT_SCRIPT_FILE` - path to script to execute during init phase
-- `HELMFILE_HELMFILE` - a complete `helmfile.yaml` content
+- `HELMFILE_HELMFILE` - a complete `helmfile.yaml` or `helmfile.yaml.gotmpl` content
 - `HELMFILE_HELMFILE_STRATEGY` - one of `REPLACE` or `INCLUDE`
   - `REPLACE` - the default option, only the content of `HELMFILE_HELMFILE` is
     rendered, if any valid files exist in the repo they are ignored
diff --git a/src/argo-cd-helmfile.sh b/src/argo-cd-helmfile.sh
index 2d148c3..ee786f2 100755
--- a/src/argo-cd-helmfile.sh
+++ b/src/argo-cd-helmfile.sh
@@ -313,14 +313,25 @@ case $phase in
 
       case "${HELMFILE_HELMFILE_STRATEGY}" in
         "INCLUDE")
-          if [[ -f "helmfile.yaml" && -d "helmfile.d" ]]; then
-            echoerr "configuration conlict error: you can have either helmfile.yaml or helmfile.d, but not both"
+
+          count=0
+
+          [[ -f "helmfile.yaml" ]] && ((count++))
+          [[ -f "helmfile.yaml.gotmpl" ]] && ((count++))
+          [[ -d "helmfile.d" ]] && ((count++))
+
+          if [[ $count -gt 1 ]]; then
+            echoerr "You can have either helmfile.yaml, helmfile.yaml.gotmpl, or helmfile.d, but not more than one"
           fi
 
           if [[ -f "helmfile.yaml" ]]; then
             cp -a "helmfile.yaml" "${HELMFILE_HELMFILE_HELMFILED}/"
           fi
 
+          if [[ -f "helmfile.yaml.gotmpl" ]]; then
+            cp -a "helmfile.yaml.gotmpl" "${HELMFILE_HELMFILE_HELMFILED}/"
+          fi
+
           if [[ -d "helmfile.d" ]]; then
             cp -ar "helmfile.d/"* "${HELMFILE_HELMFILE_HELMFILED}/"
           fi
@@ -442,6 +453,11 @@ case $phase in
       exit 0
     fi
 
+    if [[ -f "helmfile.yaml.gotmpl" ]]; then
+      echo "valid helmfile content discovered"
+      exit 0
+    fi
+
     if [[ -d "helmfile.d" ]]; then
       echo "valid helmfile content discovered"
       exit 0