diff --git a/docs/cluster_template.md b/docs/cluster_template.md
index 29d86cccdb..d3db9a79f5 100644
--- a/docs/cluster_template.md
+++ b/docs/cluster_template.md
@@ -1,4 +1,4 @@
-# Cluster template
+# Cluster Templating
 
 The command `kops replace` can replace a cluster desired configuration from the config in a yaml file (see [/cli/kops_replace.md](/cli/kops_replace.md)).
 
@@ -30,6 +30,8 @@ spec:
   - {{.awsRegion}}c
 ```
 
+You can pass configuration such as an environment file by using the `--values PATH` command line option. Note `--values` is a slice so can be defined multiple times; the configuration is overridden by each configuration file *(so order is important assuming duplicating values)*; a use-case for this would be a default configuration which upstream clusters can override.
+
 The file passed as `--values` must contain the variables referenced in the template. Example:
 ```yaml
 # File values.yaml
@@ -41,8 +43,57 @@ awsRegion: eu-west-1
 
 Running `kops toolbox template` replaces the placeholders in the template by values and generates the file output.yaml, which can then be used to replace the desired cluster configuration with `kops replace -f cluster.yaml`.
 
+Note: when creating a cluster desired configuration template, you can
 
-Note:
-When creating a cluster desired configuration template, you can 
 - use `kops get k8s-cluster.example.com -o yaml > cluster-desired-config.yaml` to create the cluster desired configuration file (see [cli/kops_get.md](cli/kops_get.md)). The values in this file are defined in [cli/cluster_spec.md](cli/cluster_spec.md).
 - replace values by placeholders in that file to create the template.
+
+### Templates
+
+The `--template` command line option can point to either a specific file or a directory with a collection of templates. An example usage would be;
+
+```shell
+$ kops toolbox template --values dev.yaml --template cluster.yaml --template instance_group_directory
+```
+
+The cluster.yaml *(your main cluster spec for example)* would be written first followed by any templates found in the instance_group_directory directory. Note the toolbox will automatically add YAML separators between the documents for you.
+
+### Snippets
+
+The toolbox template also supports the reuse or break up of code blocks into snippets directories. By passing a `--snippets PATH` to a directory holding templates;
+
+```shell
+$ kops toolbox template --values dev.yaml --template cluster.yaml --template instancegroups --snippets snippets
+```
+
+The example below assumes you have placed the appropriate files i.e. *(nodes.json, master.json etc)* in to the snippets directory. Note, the namespace of the snippets are flat and always the basename() of the file path; so `snippets/components/docker.options` is still referred to as 'docker.options'.
+
+```YAML
+apiVersion: kops/v1alpha2
+kind: Cluster
+metadata:
+  name: {{ .environment }}.{{ .dns_zone }}
+spec:
+  docker:
+    {{ include "docker" . | indent 4 }}
+  additionalPolicies:
+    master: |
+      {{ include "masters.json" . | indent 6 }}
+    node: |
+      {{ include "nodes.json" . | indent 6 }}
+```
+
+### Template Functions
+
+The entire set of https://github.com/Masterminds/sprig functions are available within the templates for you. Note if you want to use the 'defaults' functions switch off the verification check on the command line by `--fail-on-missing=false`;
+
+```YAML
+image: {{ default $image $node.image }}
+machineType: {{ default $instance $node.machine_type }}
+maxSize: {{ default "10" $node.max_size }}
+minSize: {{ default "1" $node.min_size }}
+```
+
+### Formatting
+
+Formatting in golang templates is a pain! At the start or at the end of a statement can be infuriating to get right, so a `--format-yaml=true` *(defaults to false)* command line option has been added. This will first unmarshal the generated content *(performing a syntax verification)* and then marshal back the content removing all those nasty formatting issues, newlines etc.