diff --git a/internal/pkg/rancher/client/app_client.go b/internal/pkg/rancher/client/app_client.go
index 58b905f..aa88a7a 100644
--- a/internal/pkg/rancher/client/app_client.go
+++ b/internal/pkg/rancher/client/app_client.go
@@ -17,6 +17,7 @@ package client
 import (
 	"fmt"
 	"reflect"
+	"strings"
 
 	projectModel "github.com/bitgrip/cattlectl/internal/pkg/rancher/project/model"
 	"github.com/rancher/norman/types"
@@ -148,7 +149,7 @@ func (client *appClient) Upgrade() error {
 		ExternalID: externalID,
 	}
 	if client.app.ValuesYaml != "" {
-		if installedApp.ValuesYaml == client.app.ValuesYaml {
+		if strings.TrimSpace(installedApp.ValuesYaml) == strings.TrimSpace(client.app.ValuesYaml) {
 			client.logger.Debug("Skip upgrade app - no changes")
 			return nil
 		}
diff --git a/internal/pkg/template/template.go b/internal/pkg/template/template.go
index f206728..2ad4ff5 100644
--- a/internal/pkg/template/template.go
+++ b/internal/pkg/template/template.go
@@ -41,9 +41,11 @@ func BuildTemplate(templateData []byte, values map[string]interface{}, baseDir s
 	}
 	descriptorTemplate := template.New("data-template")
 	descriptorTemplate.Funcs(template.FuncMap{
-		"read":   readFunc(absBaseDir),
-		"indent": indent,
-		"toYaml": toYaml,
+		"read":             readFunc(absBaseDir),
+		"readWithTemplate": readTemplateFunc(baseDir, values),
+		"indent":           indent,
+		"trim":             trim,
+		"toYaml":           toYaml,
 	})
 	if truncated {
 		descriptorTemplate.Funcs(template.FuncMap{
@@ -84,6 +86,41 @@ func readFunc(baseDir string) func(fileName string) []byte {
 	}
 }
 
+func readTemplateFunc(baseDir string, values map[string]interface{}) func(fileName string) string {
+	return func(fileName string) string {
+
+		var absFileName string
+		if filepath.IsAbs(fileName) {
+			absFileName = fileName
+		} else {
+			absFileName = filepath.Clean(fmt.Sprintf("%s/%s", baseDir, fileName))
+		}
+
+		fileContent, err := ioutil.ReadFile(absFileName)
+		if err != nil {
+			log.Fatal(err)
+		}
+
+		descriptorTemplate := template.New(absFileName)
+		descriptorTemplate.Funcs(template.FuncMap{
+			"read":   readFunc(filepath.Dir(absFileName)),
+			"indent": indent,
+			"toYaml": toYaml,
+			"base64": toBase64,
+		})
+		descriptorTemplate, err = descriptorTemplate.Parse(string(fileContent))
+		if err != nil {
+			log.Fatal(err)
+		}
+		descriptorTemplate = descriptorTemplate.Option("missingkey=error")
+		var templateBuffer bytes.Buffer
+		if err := descriptorTemplate.Execute(&templateBuffer, values); err != nil {
+			log.Fatal(err)
+		}
+		return string(templateBuffer.Bytes())
+	}
+}
+
 func toBase64(data interface{}) string {
 	var encoded string
 	if bytes, isBytes := data.([]byte); isBytes {
@@ -113,6 +150,16 @@ func indent(indents int, data interface{}) string {
 	return prefix + result
 }
 
+func trim(data interface{}) string {
+	var toTrim string
+	if bytes, isBytes := data.([]byte); isBytes {
+		toTrim = string(bytes)
+	} else {
+		toTrim = fmt.Sprint(data)
+	}
+	return strings.TrimSpace(toTrim)
+}
+
 func toYaml(data interface{}) (string, error) {
 	marshalledYaml, err := yaml.Marshal(data)
 	if err != nil {
diff --git a/internal/pkg/template/testdata/read-template/input.txt b/internal/pkg/template/testdata/read-template/input.txt
new file mode 100644
index 0000000..d03858d
--- /dev/null
+++ b/internal/pkg/template/testdata/read-template/input.txt
@@ -0,0 +1 @@
+        {{readWithTemplate "template.txt" | trim }}
diff --git a/internal/pkg/template/testdata/read-template/read-file1.txt b/internal/pkg/template/testdata/read-template/read-file1.txt
new file mode 100644
index 0000000..83db48f
--- /dev/null
+++ b/internal/pkg/template/testdata/read-template/read-file1.txt
@@ -0,0 +1,3 @@
+line1
+line2
+line3
diff --git a/internal/pkg/template/testdata/read-template/read-template-false.golden b/internal/pkg/template/testdata/read-template/read-template-false.golden
new file mode 100644
index 0000000..c403458
--- /dev/null
+++ b/internal/pkg/template/testdata/read-template/read-template-false.golden
@@ -0,0 +1,7 @@
+        line1
+        line2
+        line3
+
+          line1
+          line2
+          line3
diff --git a/internal/pkg/template/testdata/read-template/read-template-true.golden b/internal/pkg/template/testdata/read-template/read-template-true.golden
new file mode 100644
index 0000000..c403458
--- /dev/null
+++ b/internal/pkg/template/testdata/read-template/read-template-true.golden
@@ -0,0 +1,7 @@
+        line1
+        line2
+        line3
+
+          line1
+          line2
+          line3
diff --git a/internal/pkg/template/testdata/read-template/template.txt b/internal/pkg/template/testdata/read-template/template.txt
new file mode 100644
index 0000000..ced0830
--- /dev/null
+++ b/internal/pkg/template/testdata/read-template/template.txt
@@ -0,0 +1,3 @@
+{{read .file_name1 | indent 4 }}
+
+{{read .file_name1 | indent 5 }}
diff --git a/sample/project-with-app-with-values-yaml/app-values.yaml b/sample/project-with-app-with-values-yaml/app-values.yaml
new file mode 100644
index 0000000..3c3837d
--- /dev/null
+++ b/sample/project-with-app-with-values-yaml/app-values.yaml
@@ -0,0 +1,15 @@
+---
+wordpressUsername: "{{ .wordpress.username }}"
+wordpressPassword: "{{ .wordpress.password }}"
+wordpressEmail: "{{ .wordpress.email }}"
+mariadb:
+  master:
+    persistence:
+      enabled: false
+persistence:
+  enabled: false
+ingress:
+  enabled: true
+  hosts:
+  - name: xip.io
+serviceType: ClusterIP
\ No newline at end of file
diff --git a/sample/project-with-app-with-values-yaml/project.yaml b/sample/project-with-app-with-values-yaml/project.yaml
new file mode 100644
index 0000000..e4e34e7
--- /dev/null
+++ b/sample/project-with-app-with-values-yaml/project.yaml
@@ -0,0 +1,15 @@
+---
+api_version: v1.0
+kind: Project
+metadata:
+  name: "{{ .project_name }}"
+namespaces:
+  - name: "{{ .project_name }}-web"
+apps:
+- name: blog-wordpress-from-values-yaml
+  catalog: library
+  chart: wordpress
+  version: "2.1.10"
+  namespace: "{{ .project_name }}-web"
+  values_yaml: |
+    {{readWithTemplate "app-values.yaml" | indent 2 | trim}}
diff --git a/sample/project-with-app-with-values-yaml/values1.yaml b/sample/project-with-app-with-values-yaml/values1.yaml
new file mode 100644
index 0000000..9467bba
--- /dev/null
+++ b/sample/project-with-app-with-values-yaml/values1.yaml
@@ -0,0 +1,5 @@
+project_name: test-project
+wordpress:
+  username: 'my-wordpress-user'
+  password: 'a-simple-password-to-be-changed'
+  email: 'info@my-wordpress-blog'
diff --git a/sample/project-with-app-with-values-yaml/values2.yaml b/sample/project-with-app-with-values-yaml/values2.yaml
new file mode 100644
index 0000000..bad8f8e
--- /dev/null
+++ b/sample/project-with-app-with-values-yaml/values2.yaml
@@ -0,0 +1,5 @@
+project_name: test-project
+wordpress:
+  username: 'my-wordpress-user'
+  password: 'a-simple-password-to-be-changed-changed'
+  email: 'info@my-wordpress-blog'
\ No newline at end of file
diff --git a/sample/project-with-app/project.yaml b/sample/project-with-app/project.yaml
index 98363fe..06fcace 100644
--- a/sample/project-with-app/project.yaml
+++ b/sample/project-with-app/project.yaml
@@ -2,21 +2,21 @@
 api_version: v1.0
 kind: Project
 metadata:
-  name: {{ .project_name }}
+  name: "{{ .project_name }}"
 namespaces:
-  - name: {{ .project_name }}-web
+  - name: "{{ .project_name }}-web"
 apps:
 - name: blog-wordpress
   catalog: library
   chart: wordpress
   version: "2.1.10"
-  namespace: {{ .project_name }}-web
+  namespace: "{{ .project_name }}-web"
   answers:
-    wordpressUsername: {{ .wordpress.username }}
-    wordpressPassword: {{ .wordpress.password }}
-    wordpressEmail: {{ .wordpress.email }}
-    mariadb.master.persistence.enabled: 'false'
-    persistence.enabled: 'false'
+    wordpressUsername: "{{ .wordpress.username }}"
+    wordpressPassword: "{{ .wordpress.password }}"
+    wordpressEmail: "{{ .wordpress.email }}"
+    mariadb.master.persistence.enabled: "false"
+    persistence.enabled: "false"
     ingress.enabled: true
     'ingress.hosts[0].name': xip.io
     serviceType: ClusterIP