diff --git a/.github/workflows/e2e.yaml b/.github/workflows/e2e.yaml
index 1865685..3d8e324 100644
--- a/.github/workflows/e2e.yaml
+++ b/.github/workflows/e2e.yaml
@@ -66,6 +66,16 @@ jobs:
           kubectl -n helm-system apply -f config/testdata/dependencies
           kubectl -n helm-system wait helmreleases/backend --for=condition=ready --timeout=4m
           kubectl -n helm-system wait helmreleases/frontend --for=condition=ready --timeout=4m
+      - name: Run values test
+        run: |
+          kubectl -n helm-system apply -f config/testdata/valuesfrom
+          kubectl -n helm-system wait helmreleases/valuesfrom --for=condition=ready --timeout=4m
+
+          RESULT=$(helm -n helm-system get values valuesfrom)
+          EXPECTED=$(cat config/testdata/valuesfrom/result.txt)
+          if [ "$RESULT" != "$EXPECTED" ]; then
+            echo -e "$RESULT\n\ndoes not equal\n\n$EXPECTED"
+          fi
       - name: Logs
         run: |
           kubectl -n helm-system logs deploy/source-controller
diff --git a/api/v2alpha1/reference_types.go b/api/v2alpha1/reference_types.go
index 9f53a2f..6834bff 100644
--- a/api/v2alpha1/reference_types.go
+++ b/api/v2alpha1/reference_types.go
@@ -55,3 +55,11 @@ type ValuesReference struct {
 	// +optional
 	ValuesKey string `json:"valuesKey,omitempty"`
 }
+
+// GetValuesKey returns the defined ValuesKey or the default ('values.yaml').
+func (in ValuesReference) GetValuesKey() string {
+	if in.ValuesKey == "" {
+		return "values.yaml"
+	}
+	return in.ValuesKey
+}
diff --git a/config/testdata/valuesfrom/configmap.yaml b/config/testdata/valuesfrom/configmap.yaml
new file mode 100644
index 0000000..bf63440
--- /dev/null
+++ b/config/testdata/valuesfrom/configmap.yaml
@@ -0,0 +1,15 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: valuesfrom-config
+data:
+  resources.limits: |
+    resources:
+      limits:
+        cpu: 200m
+        memory: 128Mi
+  resources.requests: |
+    resources:
+      requests:
+        cpu: 100m
+        memory: 64Mi
diff --git a/config/testdata/valuesfrom/helmrelease.yaml b/config/testdata/valuesfrom/helmrelease.yaml
new file mode 100644
index 0000000..3b5adbf
--- /dev/null
+++ b/config/testdata/valuesfrom/helmrelease.yaml
@@ -0,0 +1,28 @@
+apiVersion: helm.fluxcd.io/v2alpha1
+kind: HelmRelease
+metadata:
+  name: valuesfrom
+spec:
+  interval: 5m
+  chart:
+    name: podinfo
+    version: '^4.0.0'
+    sourceRef:
+      kind: HelmRepository
+      name: valuesfrom
+    interval: 1m
+  test:
+    enable: true
+  rollback:
+    enable: true
+  valuesFrom:
+    - kind: ConfigMap
+      name: valuesfrom-config
+      valuesKey: resources.limits
+    - kind: ConfigMap
+      name: valuesfrom-config
+      valuesKey: resources.requests
+    - kind: Secret
+      name: valuesfrom-secret
+  values:
+    replicaCount: 2
diff --git a/config/testdata/valuesfrom/helmrepository.yaml b/config/testdata/valuesfrom/helmrepository.yaml
new file mode 100644
index 0000000..b163db6
--- /dev/null
+++ b/config/testdata/valuesfrom/helmrepository.yaml
@@ -0,0 +1,7 @@
+apiVersion: source.fluxcd.io/v1alpha1
+kind: HelmRepository
+metadata:
+  name: valuesfrom
+spec:
+  interval: 1m
+  url: https://stefanprodan.github.io/podinfo
diff --git a/config/testdata/valuesfrom/result.txt b/config/testdata/valuesfrom/result.txt
new file mode 100644
index 0000000..e670960
--- /dev/null
+++ b/config/testdata/valuesfrom/result.txt
@@ -0,0 +1,11 @@
+USER-SUPPLIED VALUES:
+replicaCount: 2
+resources:
+  limits:
+    cpu: 200m
+    memory: 128Mi
+  requests:
+    cpu: 100m
+    memory: 64Mi
+serviceAccount:
+  enabled: true
diff --git a/config/testdata/valuesfrom/secret.yaml b/config/testdata/valuesfrom/secret.yaml
new file mode 100644
index 0000000..67ef616
--- /dev/null
+++ b/config/testdata/valuesfrom/secret.yaml
@@ -0,0 +1,7 @@
+apiVersion: v1
+kind: Secret
+metadata:
+  name: valuesfrom-secret
+type: Opaque
+data:
+  values.yaml: c2VydmljZUFjY291bnQ6CiAgZW5hYmxlZDogdHJ1ZQo=
diff --git a/controllers/helmrelease_controller.go b/controllers/helmrelease_controller.go
index 9d979e4..35d4fc8 100644
--- a/controllers/helmrelease_controller.go
+++ b/controllers/helmrelease_controller.go
@@ -33,6 +33,7 @@ import (
 	"helm.sh/helm/v3/pkg/action"
 	"helm.sh/helm/v3/pkg/chart"
 	"helm.sh/helm/v3/pkg/chart/loader"
+	"helm.sh/helm/v3/pkg/chartutil"
 	"helm.sh/helm/v3/pkg/release"
 	"helm.sh/helm/v3/pkg/storage/driver"
 	corev1 "k8s.io/api/core/v1"
@@ -180,7 +181,19 @@ func (r *HelmReleaseReconciler) Reconcile(req ctrl.Request) (ctrl.Result, error)
 		log.Info("all dependencies are ready, proceeding with release")
 	}
 
-	reconciledHr, reconcileErr := r.release(log, *hr.DeepCopy(), hc)
+	// Compose values
+	values, err := r.composeValues(ctx, hr)
+	if err != nil {
+		hr = v2.HelmReleaseNotReady(hr, hr.Status.LastAttemptedRevision, hr.Status.LastReleaseRevision, v2.InitFailedReason, err.Error())
+		r.event(hr, hr.Status.LastAttemptedRevision, recorder.EventSeverityError, err.Error())
+		if err := r.Status().Update(ctx, &hr); err != nil {
+			log.Error(err, "unable to update status")
+			return ctrl.Result{Requeue: true}, err
+		}
+		return ctrl.Result{}, nil
+	}
+
+	reconciledHr, reconcileErr := r.release(log, *hr.DeepCopy(), hc, values)
 	if reconcileErr != nil {
 		r.event(hr, hc.GetArtifact().Revision, recorder.EventSeverityError, fmt.Sprintf("reconciliation failed: %s", reconcileErr.Error()))
 	}
@@ -264,7 +277,7 @@ func (r *HelmReleaseReconciler) reconcileChart(ctx context.Context, hr *v2.HelmR
 	return &helmChart, true, nil
 }
 
-func (r *HelmReleaseReconciler) release(log logr.Logger, hr v2.HelmRelease, source sourcev1.Source) (v2.HelmRelease, error) {
+func (r *HelmReleaseReconciler) release(log logr.Logger, hr v2.HelmRelease, source sourcev1.Source, values chartutil.Values) (v2.HelmRelease, error) {
 	// Acquire lock
 	unlock, err := lock(fmt.Sprintf("%s-%s", hr.GetName(), hr.GetNamespace()))
 	if err != nil {
@@ -307,11 +320,11 @@ func (r *HelmReleaseReconciler) release(log logr.Logger, hr v2.HelmRelease, sour
 	// Install or upgrade the release
 	success := true
 	if errors.Is(err, driver.ErrNoDeployedReleases) {
-		rel, err = install(cfg, loadedChart, hr)
+		rel, err = install(cfg, loadedChart, hr, values)
 		r.handleHelmActionResult(hr, source, err, "install", v2.InstalledCondition, v2.InstallSucceededReason, v2.InstallFailedReason)
 		success = err == nil
 	} else if v2.ShouldUpgrade(hr, source.GetArtifact().Revision, rel.Version) {
-		rel, err = upgrade(cfg, loadedChart, hr)
+		rel, err = upgrade(cfg, loadedChart, hr, values)
 		r.handleHelmActionResult(hr, source, err, "upgrade", v2.UpgradedCondition, v2.UpgradeSucceededReason, v2.UpgradeFailedReason)
 		success = err == nil
 	}
@@ -421,6 +434,50 @@ func (r *HelmReleaseReconciler) gc(ctx context.Context, log logr.Logger, hr v2.H
 	}
 }
 
+func (r *HelmReleaseReconciler) composeValues(ctx context.Context, hr v2.HelmRelease) (chartutil.Values, error) {
+	var result chartutil.Values
+	for _, v := range hr.Spec.ValuesFrom {
+		namespacedName := types.NamespacedName{Namespace: hr.Namespace, Name: v.Name}
+		var valsData []byte
+		switch v.Kind {
+		case "ConfigMap":
+			var resource corev1.ConfigMap
+			if err := r.Get(ctx, namespacedName, &resource); err != nil {
+				if apierrors.IsNotFound(err) {
+					return nil, fmt.Errorf("could not find %s '%s'", v.Kind, namespacedName)
+				}
+				return nil, err
+			}
+			if data, ok := resource.Data[v.GetValuesKey()]; !ok {
+				return nil, fmt.Errorf("missing key '%s' in %s '%s'", v.GetValuesKey(), v.Kind, namespacedName)
+			} else {
+				valsData = []byte(data)
+			}
+		case "Secret":
+			var resource corev1.Secret
+			if err := r.Get(ctx, namespacedName, &resource); err != nil {
+				if apierrors.IsNotFound(err) {
+					return nil, fmt.Errorf("could not find %s '%s'", v.Kind, namespacedName)
+				}
+				return nil, err
+			}
+			if data, ok := resource.Data[v.GetValuesKey()]; !ok {
+				return nil, fmt.Errorf("missing key '%s' in %s '%s'", v.GetValuesKey(), v.Kind, namespacedName)
+			} else {
+				valsData = data
+			}
+		default:
+			return nil, fmt.Errorf("unsupported ValuesReference kind '%s'", v.Kind)
+		}
+		values, err := chartutil.ReadValues(valsData)
+		if err != nil {
+			return nil, fmt.Errorf("unable to read values from key '%s' in %s '%s': %w", v.GetValuesKey(), v.Kind, namespacedName, err)
+		}
+		result = chartutil.CoalesceTables(result, values)
+	}
+	return chartutil.CoalesceTables(result, hr.GetValues()), nil
+}
+
 func (r *HelmReleaseReconciler) handleHelmActionResult(hr v2.HelmRelease, source sourcev1.Source, err error, action string, condition string, succeededReason string, failedReason string) {
 	if err != nil {
 		v2.SetHelmReleaseCondition(&hr, condition, corev1.ConditionFalse, failedReason, err.Error())
@@ -493,7 +550,7 @@ func helmChartRequiresUpdate(hr v2.HelmRelease, chart sourcev1.HelmChart) bool {
 	}
 }
 
-func install(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease) (*release.Release, error) {
+func install(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease, values chartutil.Values) (*release.Release, error) {
 	install := action.NewInstall(cfg)
 	install.ReleaseName = hr.GetReleaseName()
 	install.Namespace = hr.GetReleaseNamespace()
@@ -504,10 +561,10 @@ func install(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease) (
 	install.Replace = hr.Spec.Install.Replace
 	install.SkipCRDs = hr.Spec.Install.SkipCRDs
 
-	return install.Run(chart, hr.GetValues())
+	return install.Run(chart, values.AsMap())
 }
 
-func upgrade(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease) (*release.Release, error) {
+func upgrade(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease, values chartutil.Values) (*release.Release, error) {
 	upgrade := action.NewUpgrade(cfg)
 	upgrade.Namespace = hr.GetReleaseNamespace()
 	upgrade.ResetValues = !hr.Spec.Upgrade.PreserveValues
@@ -519,7 +576,7 @@ func upgrade(cfg *action.Configuration, chart *chart.Chart, hr v2.HelmRelease) (
 	upgrade.Force = hr.Spec.Upgrade.Force
 	upgrade.CleanupOnFail = hr.Spec.Upgrade.CleanupOnFail
 
-	return upgrade.Run(hr.GetReleaseName(), chart, hr.GetValues())
+	return upgrade.Run(hr.GetReleaseName(), chart, values.AsMap())
 }
 
 func test(cfg *action.Configuration, hr v2.HelmRelease) (*release.Release, error) {