diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1142279..42959d2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ Status: Available for use
 ## [Unreleased]
 
 ### Breaking Changes
+- Allow templating using environmental variables in `floki.yaml`, with `${user_env:VAR}` replaced with value of the user's environmental variable `VAR` before deserialization.
 
 ### Added
 
diff --git a/Cargo.toml b/Cargo.toml
index 656b620..4d255d8 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -27,6 +27,7 @@ shlex = "1.1"
 sha2 = "0.10.7"
 anyhow = "1.0.71"
 thiserror = "1.0.40"
+regex = "1"
 
 [dev-dependencies]
 tempfile = "3.6.0"
diff --git a/docs/content/intro/feature-overview.md b/docs/content/intro/feature-overview.md
index 4f5779d..3febcc5 100644
--- a/docs/content/intro/feature-overview.md
+++ b/docs/content/intro/feature-overview.md
@@ -222,3 +222,18 @@ Note that use of `docker_switches` may reduce the reproducibility and shareabili
 
 Nonetheless, it is useful to be able to add arbitrary switches in a pinch, just to be able to get something working.
 If there are things you can add with `docker_switches` which are reproducible and shareable, please raise a feature request, or go ahead and implement it yourself!
+
+# Using environmental variables in yaml
+
+Sometimes it is helpful for the `floki` config to include environment-specific values.  For example, mounting a subdirectory of the user's home directory.  `floki` supports this via templating.  Specify environmental variables in `floki.yaml` as `${user_env:<ENV>}`.  Before interpreting the config, `floki` will substitute the user's environmental variables for those values.
+
+```yaml
+docker_switches:
+  - -v ${user_env:HOME}/.vim:/home/build/.vim
+```
+
+Only alphanumeric and underscores (`[a-zA-Z0-9_]`) are supported in environmental variable names.  Inclusion of other characters afer `user_env` will prevent the substitution from taking place.
+
+Warning:
+- Use of host environmental variables may reduce the reproducibility and shareability of your `floki.yaml`.
+- If an environmental variable is not found, it is interpreted as a blank string.
\ No newline at end of file
diff --git a/src/config.rs b/src/config.rs
index 9aad666..d9dfd4e 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -2,10 +2,12 @@
 use crate::errors;
 use crate::image;
 use anyhow::Error;
+use regex::{Captures, Regex};
 use serde::{Deserialize, Serialize};
 
 use std::collections::BTreeMap;
 use std::fs::File;
+use std::io::Read;
 use std::path;
 
 #[derive(Debug, PartialEq, Serialize, Deserialize)]
@@ -100,12 +102,22 @@ impl FlokiConfig {
     pub fn from_file(file: &path::Path) -> Result<FlokiConfig, Error> {
         debug!("Reading configuration file: {:?}", file);
 
-        let f = File::open(file).map_err(|e| errors::FlokiError::ProblemOpeningConfigYaml {
-            name: file.display().to_string(),
-            error: e,
-        })?;
+        let mut contents = String::new();
 
-        let mut config: FlokiConfig = serde_yaml::from_reader(f).map_err(|e| {
+        File::open(file)
+            .map_err(|e| errors::FlokiError::ProblemOpeningConfigYaml {
+                name: file.display().to_string(),
+                error: e,
+            })?
+            .read_to_string(&mut contents)
+            .map_err(|e| errors::FlokiError::ProblemReadingConfigYaml {
+                name: file.display().to_string(),
+                error: e,
+            })?;
+
+        contents = Self::replace_user_env(&contents);
+
+        let mut config: FlokiConfig = serde_yaml::from_str(contents.as_str()).map_err(|e| {
             errors::FlokiError::ProblemParsingConfigYaml {
                 name: file.display().to_string(),
                 error: e,
@@ -139,6 +151,17 @@ impl FlokiConfig {
 
         Ok(config)
     }
+
+    /// Replace all instances of ${user_env:VAR} in the yaml with the value of the local environmental variable "VAR".
+    fn replace_user_env(input_string: &str) -> String {
+        let user_env_regex = Regex::new(r"\$\{user_env:([a-zA-Z0-9_]*)\}").unwrap();
+        user_env_regex
+            .replace_all(input_string, |caps: &Captures| {
+                let env_var_name = caps.get(1).unwrap().as_str();
+                std::env::var(env_var_name).unwrap_or_default()
+            })
+            .to_string()
+    }
 }
 
 fn default_shell() -> Shell {
@@ -160,6 +183,25 @@ fn default_entrypoint() -> Entrypoint {
 #[cfg(test)]
 mod test {
     use super::*;
+    use image::Image;
+
+    #[derive(Debug, PartialEq, Serialize, Deserialize)]
+    struct TestImageConfig {
+        image: Image,
+    }
+
+    #[test]
+    fn test_user_env_config() {
+        std::env::set_var("image", "a_local_user_variable");
+        let content = "image: prefix_${user_env:image}:1.1";
+
+        let expected = TestImageConfig {
+            image: Image::Name("prefix_a_local_user_variable:1.1".into()),
+        };
+        let actual: TestImageConfig =
+            serde_yaml::from_str(&FlokiConfig::replace_user_env(content)).unwrap();
+        assert!(actual == expected);
+    }
 
     #[derive(Debug, PartialEq, Serialize, Deserialize)]
     struct TestShellConfig {
diff --git a/src/errors.rs b/src/errors.rs
index 9d2e4f1..c67281d 100644
--- a/src/errors.rs
+++ b/src/errors.rs
@@ -22,6 +22,9 @@ pub enum FlokiError {
     #[error("There was a problem opening the configuration file '{name}': {error:?}")]
     ProblemOpeningConfigYaml { name: String, error: io::Error },
 
+    #[error("There was a problem reading the configuration file '{name}': {error:?}")]
+    ProblemReadingConfigYaml { name: String, error: io::Error },
+
     #[error("There was a problem parsing the configuration file '{name}': {error:?}")]
     ProblemParsingConfigYaml {
         name: String,