diff --git a/config/interpolate_funcs.go b/config/interpolate_funcs.go
index 69e327e37..1b5d33ed6 100644
--- a/config/interpolate_funcs.go
+++ b/config/interpolate_funcs.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"fmt"
 	"io/ioutil"
+	"regexp"
 	"strconv"
 	"strings"
 
@@ -15,11 +16,15 @@ var Funcs map[string]ast.Function
 
 func init() {
 	Funcs = map[string]ast.Function{
-		"concat":  interpolationFuncConcat(),
 		"file":    interpolationFuncFile(),
 		"join":    interpolationFuncJoin(),
 		"element": interpolationFuncElement(),
+		"replace": interpolationFuncReplace(),
 		"split":   interpolationFuncSplit(),
+
+		// Concat is a little useless now since we supported embeddded
+		// interpolations but we keep it around for backwards compat reasons.
+		"concat": interpolationFuncConcat(),
 	}
 }
 
@@ -79,6 +84,33 @@ func interpolationFuncJoin() ast.Function {
 	}
 }
 
+// interpolationFuncReplace implements the "replace" function that does
+// string replacement.
+func interpolationFuncReplace() ast.Function {
+	return ast.Function{
+		ArgTypes:   []ast.Type{ast.TypeString, ast.TypeString, ast.TypeString},
+		ReturnType: ast.TypeString,
+		Callback: func(args []interface{}) (interface{}, error) {
+			s := args[0].(string)
+			search := args[1].(string)
+			replace := args[2].(string)
+
+			// We search/replace using a regexp if the string is surrounded
+			// in forward slashes.
+			if len(search) > 0 && search[0] == '/' && search[len(search)-1] == '/' {
+				re, err := regexp.Compile(search[1 : len(search)-1])
+				if err != nil {
+					return nil, err
+				}
+
+				return re.ReplaceAllString(s, replace), nil
+			}
+
+			return strings.Replace(s, search, replace, -1), nil
+		},
+	}
+}
+
 // interpolationFuncSplit implements the "split" function that allows
 // strings to split into multi-variable values
 func interpolationFuncSplit() ast.Function {
diff --git a/config/interpolate_funcs_test.go b/config/interpolate_funcs_test.go
index 9710852db..978c96285 100644
--- a/config/interpolate_funcs_test.go
+++ b/config/interpolate_funcs_test.go
@@ -107,6 +107,39 @@ func TestInterpolateFuncJoin(t *testing.T) {
 	})
 }
 
+func TestInterpolateFuncReplace(t *testing.T) {
+	testFunction(t, testFunctionConfig{
+		Cases: []testFunctionCase{
+			// Regular search and replace
+			{
+				`${replace("hello", "hel", "bel")}`,
+				"bello",
+				false,
+			},
+
+			// Search string doesn't match
+			{
+				`${replace("hello", "nope", "bel")}`,
+				"hello",
+				false,
+			},
+
+			// Regular expression
+			{
+				`${replace("hello", "/l/", "L")}`,
+				"heLLo",
+				false,
+			},
+
+			{
+				`${replace("helo", "/(l)/", "$1$1")}`,
+				"hello",
+				false,
+			},
+		},
+	})
+}
+
 func TestInterpolateFuncSplit(t *testing.T) {
 	testFunction(t, testFunctionConfig{
 		Cases: []testFunctionCase{
@@ -225,7 +258,9 @@ func testFunction(t *testing.T, config testFunctionConfig) {
 		}
 
 		if !reflect.DeepEqual(out, tc.Result) {
-			t.Fatalf("%d: bad: %#v", i, out)
+			t.Fatalf(
+				"%d: bad output for input: %s\n\nOutput: %#v",
+				i, tc.Input, out)
 		}
 	}
 }