diff --git a/modules/vault-cluster/main.tf b/modules/vault-cluster/main.tf
index 762b7832..1c9fc85b 100644
--- a/modules/vault-cluster/main.tf
+++ b/modules/vault-cluster/main.tf
@@ -11,10 +11,47 @@ terraform {
 # ---------------------------------------------------------------------------------------------------------------------
 
 resource "aws_autoscaling_group" "autoscaling_group" {
+  count       = "${var.asg_launch_mechanism == "launch_configuration" ? 1 : 0}"
   name_prefix = "${var.cluster_name}"
 
   launch_configuration = "${aws_launch_configuration.launch_configuration.name}"
 
+  depends_on = ["aws_iam_instance_profile.instance_profile", "aws_launch_configuration.launch_configuration"]
+
+  availability_zones  = ["${var.availability_zones}"]
+  vpc_zone_identifier = ["${var.subnet_ids}"]
+
+  # Use a fixed-size cluster
+  min_size             = "${var.cluster_size}"
+  max_size             = "${var.cluster_size}"
+  desired_capacity     = "${var.cluster_size}"
+  termination_policies = ["${var.termination_policies}"]
+
+  health_check_type         = "${var.health_check_type}"
+  health_check_grace_period = "${var.health_check_grace_period}"
+  wait_for_capacity_timeout = "${var.wait_for_capacity_timeout}"
+
+  tags = ["${concat(
+    var.cluster_extra_tags,
+    list(
+      map("key", var.cluster_tag_key, "value", var.cluster_name, "propagate_at_launch", true)
+      )
+    )
+  }"]
+}
+
+# An alternate autoscaling group that uses a launch_template
+resource "aws_autoscaling_group" "lt_autoscaling_group" {
+  count       = "${var.asg_launch_mechanism == "launch_template" ? 1 : 0}"
+  name_prefix = "${var.cluster_name}"
+
+  launch_template {
+    id      = "${aws_launch_template.launch_template.id}"
+    version = "${var.launch_template_version}"
+  }
+
+  depends_on = ["aws_iam_instance_profile.instance_profile", "aws_launch_template.launch_template"]
+
   availability_zones  = ["${var.availability_zones}"]
   vpc_zone_identifier = ["${var.subnet_ids}"]
 
@@ -29,10 +66,11 @@ resource "aws_autoscaling_group" "autoscaling_group" {
   wait_for_capacity_timeout = "${var.wait_for_capacity_timeout}"
 
   tags = ["${concat(
+    var.cluster_extra_tags,
     list(
       map("key", var.cluster_tag_key, "value", var.cluster_name, "propagate_at_launch", true)
-    ),
-    var.cluster_extra_tags)
+      )
+    )
   }"]
 }
 
@@ -41,6 +79,7 @@ resource "aws_autoscaling_group" "autoscaling_group" {
 # ---------------------------------------------------------------------------------------------------------------------
 
 resource "aws_launch_configuration" "launch_configuration" {
+  count         = "${var.asg_launch_mechanism == "launch_configuration" ? 1 : 0}"
   name_prefix   = "${var.cluster_name}-"
   image_id      = "${var.ami_id}"
   instance_type = "${var.instance_type}"
@@ -72,6 +111,77 @@ resource "aws_launch_configuration" "launch_configuration" {
   }
 }
 
+# ---------------------------------------------------------------------------------------------------------------------
+# CREATE LAUNCH TEMPLATE TO DEFINE WHAT RUNS ON EACH INSTANCE IN THE ASG
+# ---------------------------------------------------------------------------------------------------------------------
+
+data "aws_ami" "ami" {
+  filter {
+    name   = "image-id"
+    values = ["${var.ami_id}"]
+  }
+}
+
+resource "aws_launch_template" "launch_template" {
+  count         = "${var.asg_launch_mechanism == "launch_template" ? 1 : 0}"
+  name_prefix   = "${var.cluster_name}-"
+  image_id      = "${var.ami_id}"
+  instance_type = "${var.instance_type}"
+  user_data     = "${base64encode(var.user_data)}"
+
+  depends_on = ["aws_iam_instance_profile.instance_profile"]
+
+  iam_instance_profile {
+    name = "${aws_iam_instance_profile.instance_profile.name}"
+  }
+
+  key_name = "${var.ssh_key_name}"
+
+  # Don't use vpc_security_group_ids when network_interfaces includes security_groups.
+  # vpc_security_group_ids = ["${concat(list(aws_security_group.lc_security_group.id), var.additional_security_group_ids)}"]
+
+  placement {
+    tenancy = "${var.tenancy}"
+  }
+  network_interfaces {
+    associate_public_ip_address = "${var.associate_public_ip_address}"
+    delete_on_termination       = true
+    security_groups             = ["${concat(list(aws_security_group.lc_security_group.id), var.additional_security_group_ids)}"]
+  }
+  ebs_optimized = "${var.root_volume_ebs_optimized}"
+  block_device_mappings {
+    device_name = "${data.aws_ami.ami.root_device_name}"
+
+    ebs {
+      encrypted             = "${var.root_volume_ebs_encryption}"
+      volume_type           = "${var.root_volume_type}"
+      volume_size           = "${var.root_volume_size}"
+      delete_on_termination = "${var.root_volume_delete_on_termination}"
+    }
+  }
+  tags = "${var.launch_template_tags}"
+  tag_specifications {
+    # Instance tags are already handled by the autoscaling group
+    resource_type = "volume"
+
+    tags = "${merge(
+      var.volume_extra_tags,
+      map("key", var.cluster_tag_key, "value", var.cluster_name)
+      )
+    }"
+  }
+  # Important note: whenever using a launch configuration with an auto scaling group, you must set
+  # create_before_destroy = true. However, as soon as you set create_before_destroy = true in one resource, you must
+  # also set it in every resource that it depends on, or you'll get an error about cyclic dependencies (especially when
+  # removing resources). For more info, see:
+  #
+  # https://www.terraform.io/docs/providers/aws/r/launch_configuration.html
+  # https://terraform.io/docs/configuration/resources.html
+  lifecycle {
+    create_before_destroy = true
+  }
+}
+
 # ---------------------------------------------------------------------------------------------------------------------
 # CREATE A SECURITY GROUP TO CONTROL WHAT REQUESTS CAN GO IN AND OUT OF EACH EC2 INSTANCE
 # ---------------------------------------------------------------------------------------------------------------------
@@ -88,7 +198,7 @@ resource "aws_security_group" "lc_security_group" {
     create_before_destroy = true
   }
 
-  tags = "${merge(map("Name", var.cluster_name), var.security_group_tags)}"
+  tags = "${merge(var.security_group_tags, map("Name", var.cluster_name))}"
 }
 
 resource "aws_security_group_rule" "allow_ssh_inbound_from_cidr_blocks" {
@@ -188,8 +298,9 @@ resource "aws_s3_bucket" "vault_storage" {
   force_destroy = "${var.force_destroy_s3_bucket}"
 
   tags = "${merge(
-    map("Description", "Used for secret storage with Vault. DO NOT DELETE this Bucket unless you know what you are doing."),
-    var.s3_bucket_tags)
+    var.s3_bucket_tags,
+    map("Description", "Used for secret storage with Vault. DO NOT DELETE this Bucket unless you know what you are doing.")
+    )
   }"
 }
 
@@ -201,7 +312,8 @@ resource "aws_iam_role_policy" "vault_s3" {
 }
 
 data "aws_iam_policy_document" "vault_s3" {
-  count  = "${var.enable_s3_backend ? 1 : 0}"
+  count = "${var.enable_s3_backend ? 1 : 0}"
+
   statement {
     effect  = "Allow"
     actions = ["s3:*"]
diff --git a/modules/vault-cluster/outputs.tf b/modules/vault-cluster/outputs.tf
index 1acf4b26..efa92f3a 100644
--- a/modules/vault-cluster/outputs.tf
+++ b/modules/vault-cluster/outputs.tf
@@ -1,5 +1,7 @@
 output "asg_name" {
-  value = "${aws_autoscaling_group.autoscaling_group.name}"
+  # This is safe because asg_launch_mechanism will only allow one of aws_autoscaling_group.autoscaling_group.*
+  # or aws_autoscaling_group.lt_autoscaling_group.* to be non-empty.
+  value = "${join("",concat(aws_autoscaling_group.autoscaling_group.*.name,aws_autoscaling_group.lt_autoscaling_group.*.name))}"
 }
 
 output "cluster_tag_key" {
@@ -11,11 +13,9 @@ output "cluster_tag_value" {
 }
 
 output "cluster_size" {
-  value = "${aws_autoscaling_group.autoscaling_group.desired_capacity}"
-}
-
-output "launch_config_name" {
-  value = "${aws_launch_configuration.launch_configuration.name}"
+  # This is safe because asg_launch_mechanism will only allow one of aws_autoscaling_group.autoscaling_group.*
+  # or aws_autoscaling_group.lt_autoscaling_group.* to be non-empty.
+  value = "${element(concat(aws_autoscaling_group.autoscaling_group.*.desired_capacity, aws_autoscaling_group.lt_autoscaling_group.*.desired_capacity), 0)}"
 }
 
 output "iam_role_arn" {
@@ -32,4 +32,4 @@ output "security_group_id" {
 
 output "s3_bucket_arn" {
   value = "${join(",", aws_s3_bucket.vault_storage.*.arn)}"
-}
\ No newline at end of file
+}
diff --git a/modules/vault-cluster/variables.tf b/modules/vault-cluster/variables.tf
index 03039be7..8d193bd4 100644
--- a/modules/vault-cluster/variables.tf
+++ b/modules/vault-cluster/variables.tf
@@ -197,3 +197,36 @@ variable "force_destroy_s3_bucket" {
   description = "If 'configure_s3_backend' is enabled and you set this to true, when you run terraform destroy, this tells Terraform to delete all the objects in the S3 bucket used for backend storage. You should NOT set this to true in production or you risk losing all your data! This property is only here so automated tests of this module can clean up after themselves. Only used if 'enable_s3_backend' is set to true."
   default     = false
 }
+
+# Launch Template Extensions
+
+variable "asg_launch_mechanism" {
+  # Choices are launch_configuration and launch_template.
+  # launch_template gives you the opportunithy to set tags on instance volumes.
+  #
+  description = "Select between launch_config-driven or launch_template-driven autoscaling group."
+
+  default = "launch_configuration"
+}
+
+variable "launch_template_tags" {
+  description = "A list of tags to add to the launch template."
+  type        = "map"
+  default     = {}
+}
+
+variable "root_volume_ebs_encryption" {
+  description = "If true, the launched EC2 instance's root volume will be encrypted."
+  default     = ""
+}
+
+variable "launch_template_version" {
+  default = "Launch template verison to be used by the autoscaling group."
+  default = "$Latest"
+}
+
+variable "volume_extra_tags" {
+  description = "A list of additional tags to add to each Instance's volumes in the ASG. Only applicable when use_launch_template is true."
+  type        = "map"
+  default     = {}
+}