diff --git a/cluster/addons/dns/Makefile b/cluster/addons/dns/Makefile
index 50419ff324..01f45e4ba5 100644
--- a/cluster/addons/dns/Makefile
+++ b/cluster/addons/dns/Makefile
@@ -29,6 +29,6 @@ all: transform
 %.sed: %.base
 	sed -f transforms2sed.sed $<  | sed s/__SOURCE_FILENAME__/$</g > $@
 
-transform: kube-dns.yaml.in kube-dns.yaml.sed
+transform: kube-dns.yaml.in kube-dns.yaml.sed coredns.yaml.in coredns.yaml.sed
 
 .PHONY: transform
diff --git a/cluster/addons/dns/coredns.yaml.base b/cluster/addons/dns/coredns.yaml.base
new file mode 100644
index 0000000000..4976ac09a6
--- /dev/null
+++ b/cluster/addons/dns/coredns.yaml.base
@@ -0,0 +1,159 @@
+# __MACHINE_GENERATED_WARNING__
+
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      kubernetes.io/cluster-service: "true"
+      addonmanager.kubernetes.io/mode: Reconcile
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRole
+metadata:
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: Reconcile
+  name: system:coredns
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - endpoints
+  - services
+  - pods
+  - namespaces
+  verbs:
+  - list
+  - watch
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRoleBinding
+metadata:
+  annotations:
+    rbac.authorization.kubernetes.io/autoupdate: "true"
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: EnsureExists
+  name: system:coredns
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: system:coredns
+subjects:
+- kind: ServiceAccount
+  name: coredns
+  namespace: kube-system
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      addonmanager.kubernetes.io/mode: EnsureExists
+data:
+  Corefile: |
+    .:53 {
+        errors
+        log stdout
+        health
+        kubernetes __PILLAR__DNS__DOMAIN__ __PILLAR__CLUSTER_CIDR__
+        prometheus
+        proxy . /etc/resolv.conf
+        cache 30
+    }
+---
+apiVersion: extensions/v1beta1
+kind: Deployment
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      k8s-app: coredns
+  template:
+    metadata:
+      labels:
+        k8s-app: coredns
+    spec:
+      serviceAccountName: coredns
+      tolerations:
+        - key: node-role.kubernetes.io/master
+          effect: NoSchedule
+        - key: "CriticalAddonsOnly"
+          operator: "Exists"
+      containers:
+      - name: coredns
+        image: coredns/coredns:0.9.10
+        imagePullPolicy: IfNotPresent
+        resources:
+          limits:
+            memory: 170Mi
+          requests:
+            cpu: 100m
+            memory: 70Mi
+        args: [ "-conf", "/etc/coredns/Corefile" ]
+        volumeMounts:
+        - name: config-volume
+          mountPath: /etc/coredns
+        ports:
+        - containerPort: 53
+          name: dns
+          protocol: UDP
+        - containerPort: 53
+          name: dns-tcp
+          protocol: TCP
+        - containerPort: 9153
+          name: metrics
+          protocol: TCP
+        livenessProbe:
+          httpGet:
+            path: /health
+            port: 8080
+            scheme: HTTP
+          initialDelaySeconds: 60
+          timeoutSeconds: 5
+          successThreshold: 1
+          failureThreshold: 5
+      dnsPolicy: Default
+      volumes:
+        - name: config-volume
+          configMap:
+            name: coredns
+            items:
+            - key: Corefile
+              path: Corefile
+---
+apiVersion: v1
+kind: Service
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  selector:
+    k8s-app: coredns
+  clusterIP: __PILLAR__DNS__SERVER__
+  ports:
+  - name: dns
+    port: 53
+    protocol: UDP
+  - name: dns-tcp
+    port: 53
+    protocol: TCP
+  - name: metrics
+    port: 9153
+    protocol: TCP
diff --git a/cluster/addons/dns/coredns.yaml.in b/cluster/addons/dns/coredns.yaml.in
new file mode 100644
index 0000000000..d2eb1b3579
--- /dev/null
+++ b/cluster/addons/dns/coredns.yaml.in
@@ -0,0 +1,159 @@
+# Warning: This is a file generated from the base underscore template file: coredns.yaml.base
+
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      kubernetes.io/cluster-service: "true"
+      addonmanager.kubernetes.io/mode: Reconcile
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRole
+metadata:
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: Reconcile
+  name: system:coredns
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - endpoints
+  - services
+  - pods
+  - namespaces
+  verbs:
+  - list
+  - watch
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRoleBinding
+metadata:
+  annotations:
+    rbac.authorization.kubernetes.io/autoupdate: "true"
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: EnsureExists
+  name: system:coredns
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: system:coredns
+subjects:
+- kind: ServiceAccount
+  name: coredns
+  namespace: kube-system
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      addonmanager.kubernetes.io/mode: EnsureExists
+data:
+  Corefile: |
+    .:53 {
+        errors
+        log stdout
+        health
+        kubernetes {{ pillar['dns_domain'] }} {{ pillar['service_cluster_ip_range'] }}
+        prometheus
+        proxy . /etc/resolv.conf
+        cache 30
+    }
+---
+apiVersion: extensions/v1beta1
+kind: Deployment
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      k8s-app: coredns
+  template:
+    metadata:
+      labels:
+        k8s-app: coredns
+    spec:
+      serviceAccountName: coredns
+      tolerations:
+        - key: node-role.kubernetes.io/master
+          effect: NoSchedule
+        - key: "CriticalAddonsOnly"
+          operator: "Exists"
+      containers:
+      - name: coredns
+        image: coredns/coredns:0.9.10
+        imagePullPolicy: IfNotPresent
+        resources:
+          limits:
+            memory: 170Mi
+          requests:
+            cpu: 100m
+            memory: 70Mi
+        args: [ "-conf", "/etc/coredns/Corefile" ]
+        volumeMounts:
+        - name: config-volume
+          mountPath: /etc/coredns
+        ports:
+        - containerPort: 53
+          name: dns
+          protocol: UDP
+        - containerPort: 53
+          name: dns-tcp
+          protocol: TCP
+        - containerPort: 9153
+          name: metrics
+          protocol: TCP
+        livenessProbe:
+          httpGet:
+            path: /health
+            port: 8080
+            scheme: HTTP
+          initialDelaySeconds: 60
+          timeoutSeconds: 5
+          successThreshold: 1
+          failureThreshold: 5
+      dnsPolicy: Default
+      volumes:
+        - name: config-volume
+          configMap:
+            name: coredns
+            items:
+            - key: Corefile
+              path: Corefile
+---
+apiVersion: v1
+kind: Service
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  selector:
+    k8s-app: coredns
+  clusterIP: {{ pillar['dns_server'] }}
+  ports:
+  - name: dns
+    port: 53
+    protocol: UDP
+  - name: dns-tcp
+    port: 53
+    protocol: TCP
+  - name: metrics
+    port: 9153
+    protocol: TCP
diff --git a/cluster/addons/dns/coredns.yaml.sed b/cluster/addons/dns/coredns.yaml.sed
new file mode 100644
index 0000000000..329ad6ca23
--- /dev/null
+++ b/cluster/addons/dns/coredns.yaml.sed
@@ -0,0 +1,159 @@
+# Warning: This is a file generated from the base underscore template file: coredns.yaml.base
+
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      kubernetes.io/cluster-service: "true"
+      addonmanager.kubernetes.io/mode: Reconcile
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRole
+metadata:
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: Reconcile
+  name: system:coredns
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - endpoints
+  - services
+  - pods
+  - namespaces
+  verbs:
+  - list
+  - watch
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRoleBinding
+metadata:
+  annotations:
+    rbac.authorization.kubernetes.io/autoupdate: "true"
+  labels:
+    kubernetes.io/bootstrapping: rbac-defaults
+    addonmanager.kubernetes.io/mode: EnsureExists
+  name: system:coredns
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: system:coredns
+subjects:
+- kind: ServiceAccount
+  name: coredns
+  namespace: kube-system
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+      addonmanager.kubernetes.io/mode: EnsureExists
+data:
+  Corefile: |
+    .:53 {
+        errors
+        log stdout
+        health
+        kubernetes $DNS_DOMAIN $SERVICE_CLUSTER_IP_RANGE
+        prometheus
+        proxy . /etc/resolv.conf
+        cache 30
+    }
+---
+apiVersion: extensions/v1beta1
+kind: Deployment
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      k8s-app: coredns
+  template:
+    metadata:
+      labels:
+        k8s-app: coredns
+    spec:
+      serviceAccountName: coredns
+      tolerations:
+        - key: node-role.kubernetes.io/master
+          effect: NoSchedule
+        - key: "CriticalAddonsOnly"
+          operator: "Exists"
+      containers:
+      - name: coredns
+        image: coredns/coredns:0.9.10
+        imagePullPolicy: IfNotPresent
+        resources:
+          limits:
+            memory: 170Mi
+          requests:
+            cpu: 100m
+            memory: 70Mi
+        args: [ "-conf", "/etc/coredns/Corefile" ]
+        volumeMounts:
+        - name: config-volume
+          mountPath: /etc/coredns
+        ports:
+        - containerPort: 53
+          name: dns
+          protocol: UDP
+        - containerPort: 53
+          name: dns-tcp
+          protocol: TCP
+        - containerPort: 9153
+          name: metrics
+          protocol: TCP
+        livenessProbe:
+          httpGet:
+            path: /health
+            port: 8080
+            scheme: HTTP
+          initialDelaySeconds: 60
+          timeoutSeconds: 5
+          successThreshold: 1
+          failureThreshold: 5
+      dnsPolicy: Default
+      volumes:
+        - name: config-volume
+          configMap:
+            name: coredns
+            items:
+            - key: Corefile
+              path: Corefile
+---
+apiVersion: v1
+kind: Service
+metadata:
+  name: coredns
+  namespace: kube-system
+  labels:
+    k8s-app: coredns
+    kubernetes.io/cluster-service: "true"
+    addonmanager.kubernetes.io/mode: Reconcile
+    kubernetes.io/name: "CoreDNS"
+spec:
+  selector:
+    k8s-app: coredns
+  clusterIP: $DNS_SERVER_IP
+  ports:
+  - name: dns
+    port: 53
+    protocol: UDP
+  - name: dns-tcp
+    port: 53
+    protocol: TCP
+  - name: metrics
+    port: 9153
+    protocol: TCP
diff --git a/cluster/addons/dns/transforms2salt.sed b/cluster/addons/dns/transforms2salt.sed
index fea818b771..0a0778b929 100644
--- a/cluster/addons/dns/transforms2salt.sed
+++ b/cluster/addons/dns/transforms2salt.sed
@@ -1,3 +1,4 @@
 s/__PILLAR__DNS__SERVER__/{{ pillar['dns_server'] }}/g
 s/__PILLAR__DNS__DOMAIN__/{{ pillar['dns_domain'] }}/g
+s/__PILLAR__CLUSTER_CIDR__/{{ pillar['service_cluster_ip_range'] }}/g
 s/__MACHINE_GENERATED_WARNING__/Warning: This is a file generated from the base underscore template file: __SOURCE_FILENAME__/g
diff --git a/cluster/addons/dns/transforms2sed.sed b/cluster/addons/dns/transforms2sed.sed
index d5415654f3..7d64f8e0b5 100644
--- a/cluster/addons/dns/transforms2sed.sed
+++ b/cluster/addons/dns/transforms2sed.sed
@@ -1,3 +1,4 @@
 s/__PILLAR__DNS__SERVER__/$DNS_SERVER_IP/g
 s/__PILLAR__DNS__DOMAIN__/$DNS_DOMAIN/g
+s/__PILLAR__CLUSTER_CIDR__/$SERVICE_CLUSTER_IP_RANGE/g
 s/__MACHINE_GENERATED_WARNING__/Warning: This is a file generated from the base underscore template file: __SOURCE_FILENAME__/g
diff --git a/cluster/common.sh b/cluster/common.sh
index 3810581301..ee19ac221d 100755
--- a/cluster/common.sh
+++ b/cluster/common.sh
@@ -624,6 +624,7 @@ ENABLE_RESCHEDULER: $(yaml-quote ${ENABLE_RESCHEDULER:-false})
 LOGGING_DESTINATION: $(yaml-quote ${LOGGING_DESTINATION:-})
 ELASTICSEARCH_LOGGING_REPLICAS: $(yaml-quote ${ELASTICSEARCH_LOGGING_REPLICAS:-})
 ENABLE_CLUSTER_DNS: $(yaml-quote ${ENABLE_CLUSTER_DNS:-false})
+CLUSTER_DNS_CORE_DNS: $(yaml-quote ${CLUSTER_DNS_CORE_DNS:-false})
 ENABLE_CLUSTER_REGISTRY: $(yaml-quote ${ENABLE_CLUSTER_REGISTRY:-false})
 CLUSTER_REGISTRY_DISK: $(yaml-quote ${CLUSTER_REGISTRY_DISK:-})
 CLUSTER_REGISTRY_DISK_SIZE: $(yaml-quote ${CLUSTER_REGISTRY_DISK_SIZE:-})
diff --git a/cluster/gce/config-default.sh b/cluster/gce/config-default.sh
index 7b2bddf773..24b4c389a9 100755
--- a/cluster/gce/config-default.sh
+++ b/cluster/gce/config-default.sh
@@ -219,6 +219,8 @@ if [[ ! -z "${NODE_ACCELERATORS}" ]]; then
 fi
 
 # Optional: Install cluster DNS.
+# Set CLUSTER_DNS_CORE_DNS to 'true' to install CoreDNS instead of kube-dns.
+CLUSTER_DNS_CORE_DNS="${CLUSTER_DNS_CORE_DNS:-false}"
 ENABLE_CLUSTER_DNS="${KUBE_ENABLE_CLUSTER_DNS:-true}"
 DNS_SERVER_IP="${KUBE_DNS_SERVER_IP:-10.0.0.10}"
 DNS_DOMAIN="${KUBE_DNS_DOMAIN:-cluster.local}"
diff --git a/cluster/gce/config-test.sh b/cluster/gce/config-test.sh
index 58561e0182..f9f223e1e9 100755
--- a/cluster/gce/config-test.sh
+++ b/cluster/gce/config-test.sh
@@ -241,6 +241,8 @@ if [[ ! -z "${NODE_ACCELERATORS}" ]]; then
 fi
 
 # Optional: Install cluster DNS.
+# Set CLUSTER_DNS_CORE_DNS to 'true' to install CoreDNS instead of kube-dns.
+CLUSTER_DNS_CORE_DNS="${CLUSTER_DNS_CORE_DNS:-false}"
 ENABLE_CLUSTER_DNS="${KUBE_ENABLE_CLUSTER_DNS:-true}"
 DNS_SERVER_IP="10.0.0.10"
 DNS_DOMAIN="cluster.local"
diff --git a/cluster/gce/configure-vm.sh b/cluster/gce/configure-vm.sh
index 92f6157759..124cff8e9c 100755
--- a/cluster/gce/configure-vm.sh
+++ b/cluster/gce/configure-vm.sh
@@ -422,6 +422,7 @@ enable_rescheduler: '$(echo "$ENABLE_RESCHEDULER" | sed -e "s/'/''/g")'
 logging_destination: '$(echo "$LOGGING_DESTINATION" | sed -e "s/'/''/g")'
 elasticsearch_replicas: '$(echo "$ELASTICSEARCH_LOGGING_REPLICAS" | sed -e "s/'/''/g")'
 enable_cluster_dns: '$(echo "$ENABLE_CLUSTER_DNS" | sed -e "s/'/''/g")'
+cluster_dns_core_dns: '$(echo "$CLUSTER_DNS_CORE_DNS" | sed -e "s/'/''/g")'
 enable_cluster_registry: '$(echo "$ENABLE_CLUSTER_REGISTRY" | sed -e "s/'/''/g")'
 dns_server: '$(echo "$DNS_SERVER_IP" | sed -e "s/'/''/g")'
 dns_domain: '$(echo "$DNS_DOMAIN" | sed -e "s/'/''/g")'
diff --git a/cluster/gce/container-linux/configure-helper.sh b/cluster/gce/container-linux/configure-helper.sh
index 8c4f285505..a760917354 100755
--- a/cluster/gce/container-linux/configure-helper.sh
+++ b/cluster/gce/container-linux/configure-helper.sh
@@ -1228,6 +1228,36 @@ function update-prometheus-to-sd-parameters {
   fi
 }
 
+# Sets up the manifests of coreDNS for k8s addons.
+function setup-coredns-manifest {
+  local -r coredns_file="${dst_dir}/dns/coredns.yaml"
+  mv "${dst_dir}/dns/coredns.yaml.in" "${coredns_file}"
+  # Replace the salt configurations with variable values.
+  sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${coredns_file}"
+  sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${coredns_file}"
+  sed -i -e "s@{{ *pillar\['service_cluster_ip_range'\] *}}@${SERVICE_CLUSTER_IP_RANGE}@g" "${coredns_file}"
+}
+
+# Sets up the manifests of kube-dns for k8s addons.
+function setup-kube-dns-manifest {
+  local -r kubedns_file="${dst_dir}/dns/kube-dns.yaml"
+  mv "${dst_dir}/dns/kube-dns.yaml.in" "${kubedns_file}"
+  if [ -n "${CUSTOM_KUBE_DNS_YAML:-}" ]; then
+    # Replace with custom GKE kube-dns deployment.
+    cat > "${kubedns_file}" <<EOF
+$(echo "$CUSTOM_KUBE_DNS_YAML")
+EOF
+    update-prometheus-to-sd-parameters ${kubedns_file}
+  fi
+  # Replace the salt configurations with variable values.
+  sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${kubedns_file}"
+  sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${kubedns_file}"
+
+  if [[ "${ENABLE_DNS_HORIZONTAL_AUTOSCALER:-}" == "true" ]]; then
+    setup-addon-manifests "addons" "dns-horizontal-autoscaler"
+  fi
+}
+
 # Prepares the manifests of k8s addons, and starts the addon manager.
 # Vars assumed:
 #   CLUSTER_NAME
@@ -1316,21 +1346,10 @@ EOF
   fi
   if [[ "${ENABLE_CLUSTER_DNS:-}" == "true" ]]; then
     setup-addon-manifests "addons" "dns"
-    local -r kubedns_file="${dst_dir}/dns/kube-dns.yaml"
-    mv "${dst_dir}/dns/kube-dns.yaml.in" "${kubedns_file}"
-    if [ -n "${CUSTOM_KUBE_DNS_YAML:-}" ]; then
-      # Replace with custom GKE kube-dns deployment.
-      cat > "${kubedns_file}" <<EOF
-$(echo "$CUSTOM_KUBE_DNS_YAML")
-EOF
-      update-prometheus-to-sd-parameters ${kubedns_file}
-    fi
-    # Replace the salt configurations with variable values.
-    sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${kubedns_file}"
-    sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${kubedns_file}"
-
-    if [[ "${ENABLE_DNS_HORIZONTAL_AUTOSCALER:-}" == "true" ]]; then
-      setup-addon-manifests "addons" "dns-horizontal-autoscaler"
+    if [[ "${CLUSTER_DNS_CORE_DNS:-}" == "true" ]]; then
+      setup-coredns-manifest
+    else
+      setup-kube-dns-manifest
     fi
   fi
   if [[ "${ENABLE_CLUSTER_REGISTRY:-}" == "true" ]]; then
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 0d9efdc6e9..cc0b3d2045 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -1997,6 +1997,36 @@ function update-prometheus-to-sd-parameters {
    fi
 }
 
+# Sets up the manifests of coreDNS for k8s addons.
+function setup-coredns-manifest {
+  local -r coredns_file="${dst_dir}/dns/coredns.yaml"
+  mv "${dst_dir}/dns/coredns.yaml.in" "${coredns_file}"
+  # Replace the salt configurations with variable values.
+  sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${coredns_file}"
+  sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${coredns_file}"
+  sed -i -e "s@{{ *pillar\['service_cluster_ip_range'\] *}}@${SERVICE_CLUSTER_IP_RANGE}@g" "${coredns_file}"
+}
+
+# Sets up the manifests of kube-dns for k8s addons.
+function setup-kube-dns-manifest {
+  local -r kubedns_file="${dst_dir}/dns/kube-dns.yaml"
+  mv "${dst_dir}/dns/kube-dns.yaml.in" "${kubedns_file}"
+  if [ -n "${CUSTOM_KUBE_DNS_YAML:-}" ]; then
+    # Replace with custom GKE kube-dns deployment.
+    cat > "${kubedns_file}" <<EOF
+$(echo "$CUSTOM_KUBE_DNS_YAML")
+EOF
+    update-prometheus-to-sd-parameters ${kubedns_file}
+  fi
+  # Replace the salt configurations with variable values.
+  sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${kubedns_file}"
+  sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${kubedns_file}"
+
+  if [[ "${ENABLE_DNS_HORIZONTAL_AUTOSCALER:-}" == "true" ]]; then
+    setup-addon-manifests "addons" "dns-horizontal-autoscaler"
+  fi
+}
+
 # Prepares the manifests of k8s addons, and starts the addon manager.
 # Vars assumed:
 #   CLUSTER_NAME
@@ -2098,21 +2128,10 @@ EOF
   fi
   if [[ "${ENABLE_CLUSTER_DNS:-}" == "true" ]]; then
     setup-addon-manifests "addons" "dns"
-    local -r kubedns_file="${dst_dir}/dns/kube-dns.yaml"
-    mv "${dst_dir}/dns/kube-dns.yaml.in" "${kubedns_file}"
-    if [ -n "${CUSTOM_KUBE_DNS_YAML:-}" ]; then
-      # Replace with custom GKE kube-dns deployment.
-      cat > "${kubedns_file}" <<EOF
-$(echo "$CUSTOM_KUBE_DNS_YAML")
-EOF
-      update-prometheus-to-sd-parameters ${kubedns_file}
-    fi
-    # Replace the salt configurations with variable values.
-    sed -i -e "s@{{ *pillar\['dns_domain'\] *}}@${DNS_DOMAIN}@g" "${kubedns_file}"
-    sed -i -e "s@{{ *pillar\['dns_server'\] *}}@${DNS_SERVER_IP}@g" "${kubedns_file}"
-
-    if [[ "${ENABLE_DNS_HORIZONTAL_AUTOSCALER:-}" == "true" ]]; then
-      setup-addon-manifests "addons" "dns-horizontal-autoscaler"
+    if [[ "${CLUSTER_DNS_CORE_DNS:-}" == "true" ]]; then
+      setup-coredns-manifest
+    else
+      setup-kube-dns-manifest
     fi
   fi
   if [[ "${ENABLE_CLUSTER_REGISTRY:-}" == "true" ]]; then