diff --git a/docs/expand_template_doc.md b/docs/expand_template_doc.md
index 34bbb3ad..b5f4addb 100755
--- a/docs/expand_template_doc.md
+++ b/docs/expand_template_doc.md
@@ -7,7 +7,7 @@ A rule that performs template expansion.
 ## expand_template
 
 <pre>
-expand_template(<a href="#expand_template-name">name</a>, <a href="#expand_template-out">out</a>, <a href="#expand_template-substitutions">substitutions</a>, <a href="#expand_template-template">template</a>)
+expand_template(<a href="#expand_template-name">name</a>, <a href="#expand_template-data">data</a>, <a href="#expand_template-out">out</a>, <a href="#expand_template-substitutions">substitutions</a>, <a href="#expand_template-template">template</a>)
 </pre>
 
 Template expansion
@@ -24,6 +24,7 @@ explicitly add delimiters to the key strings, for example "{KEY}" or "@KEY@".
 | Name  | Description | Type | Mandatory | Default |
 | :------------- | :------------- | :------------- | :------------- | :------------- |
 | <a id="expand_template-name"></a>name |  A unique name for this target.   | <a href="https://bazel.build/concepts/labels#target-names">Name</a> | required |  |
+| <a id="expand_template-data"></a>data |  data dependencies. See https://bazel.build/reference/be/common-definitions#typical.data   | <a href="https://bazel.build/concepts/labels">List of labels</a> | optional |  `[]`  |
 | <a id="expand_template-out"></a>out |  The destination of the expanded file.   | <a href="https://bazel.build/concepts/labels">Label</a> | required |  |
 | <a id="expand_template-substitutions"></a>substitutions |  A dictionary mapping strings to their substitutions.   | <a href="https://bazel.build/rules/lib/dict">Dictionary: String -> String</a> | required |  |
 | <a id="expand_template-template"></a>template |  The template file to expand.   | <a href="https://bazel.build/concepts/labels">Label</a> | required |  |
diff --git a/rules/expand_template.bzl b/rules/expand_template.bzl
index f95507ec..2c1a7e3f 100644
--- a/rules/expand_template.bzl
+++ b/rules/expand_template.bzl
@@ -16,10 +16,21 @@
 """
 
 def _expand_template_impl(ctx):
+    expanded_substitutions = {}
+    for key, value in ctx.attr.substitutions.items():
+        expanded_substitutions[key] = ctx.expand_make_variables(
+            "substitutions",
+            ctx.expand_location(
+                value,
+                targets = ctx.attr.data,
+            ),
+            {},
+        )
+
     ctx.actions.expand_template(
         template = ctx.file.template,
         output = ctx.outputs.out,
-        substitutions = ctx.attr.substitutions,
+        substitutions = expanded_substitutions,
     )
 
 expand_template = rule(
@@ -32,6 +43,11 @@ substitutions, and replaces them with the corresponding values.
 There is no special syntax for the keys. To avoid conflicts, you would need to
 explicitly add delimiters to the key strings, for example "{KEY}" or "@KEY@".""",
     attrs = {
+        "data": attr.label_list(
+            allow_files = True,
+            doc = "data dependencies. See" +
+                  " https://bazel.build/reference/be/common-definitions#typical.data",
+        ),
         "template": attr.label(
             mandatory = True,
             allow_single_file = True,
diff --git a/tests/expand_template/BUILD b/tests/expand_template/BUILD
index 07fc5797..6dbe34a9 100644
--- a/tests/expand_template/BUILD
+++ b/tests/expand_template/BUILD
@@ -14,6 +14,7 @@
 
 # This package aids testing the 'diff_test' rule.
 
+load("//rules:common_settings.bzl", "string_flag")
 load("//rules:expand_template.bzl", "expand_template")
 
 package(
@@ -21,14 +22,28 @@ package(
     default_testonly = 1,
 )
 
+string_flag(
+    name = "my_string_flag",
+    build_setting_default = "VAR",
+    make_variable = "SOMEVAR",
+)
+
 expand_template(
     name = "filled_template",
     out = "foo/test.yaml",
+    data = [
+        ":version",
+    ],
     substitutions = {
         "@name@": "test",
         "@version@": "1.1.1",
+        "@path@": "$(rlocationpath :version)",
+        "@toolchain@": "prefix$(SOMEVAR)suffix",
     },
     template = "test.tpl.yaml",
+    toolchains = [
+        ":my_string_flag",
+    ],
 )
 
 sh_test(
diff --git a/tests/expand_template/template_test.sh b/tests/expand_template/template_test.sh
index 10099a43..3ab7c128 100755
--- a/tests/expand_template/template_test.sh
+++ b/tests/expand_template/template_test.sh
@@ -32,6 +32,8 @@ function test_expand_template() {
   cat "$(rlocation $TEST_WORKSPACE/tests/expand_template/foo/test.yaml)" >"$TEST_log"
   expect_log 'name: test'
   expect_log 'version: 1.1.1'
+  expect_log 'tests/expand_template/version.h'
+  expect_log 'toolchain: prefixVARsuffix'
 }
 
-run_suite "expand_template_tests test suite"
\ No newline at end of file
+run_suite "expand_template_tests test suite"
diff --git a/tests/expand_template/test.tpl.yaml b/tests/expand_template/test.tpl.yaml
index 03d9fdd2..1c8636de 100644
--- a/tests/expand_template/test.tpl.yaml
+++ b/tests/expand_template/test.tpl.yaml
@@ -1,2 +1,4 @@
 name: @name@
 version: @version@
+path: @path@
+toolchain: @toolchain@