diff --git a/upup/models/cloudup/resources/addons/digitalocean-cloud-controller.addons.k8s.io/k8s-1.8.yaml.template b/upup/models/cloudup/resources/addons/digitalocean-cloud-controller.addons.k8s.io/k8s-1.8.yaml.template
new file mode 100644
index 0000000000..3d61aa5181
--- /dev/null
+++ b/upup/models/cloudup/resources/addons/digitalocean-cloud-controller.addons.k8s.io/k8s-1.8.yaml.template
@@ -0,0 +1,156 @@
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  name: digitalocean
+  namespace: kube-system
+stringData:
+  # insert your DO access token here
+  access-token: {{ DO_TOKEN }}
+
+---
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: digitalocean-cloud-controller-manager
+  namespace: kube-system
+spec:
+  selector:
+    matchLabels:
+      k8s-app: digitalocean-cloud-controller-manager
+  template:
+    metadata:
+      labels:
+        k8s-app: digitalocean-cloud-controller-manager
+      annotations:
+        scheduler.alpha.kubernetes.io/critical-pod: ''
+    spec:
+      nodeSelector:
+        node-role.kubernetes.io/master: ""
+      serviceAccountName: cloud-controller-manager
+      dnsPolicy: Default
+      hostNetwork: true
+      tolerations:
+        - key: "node.cloudprovider.kubernetes.io/uninitialized"
+          value: "true"
+          effect: "NoSchedule"
+        - key: "CriticalAddonsOnly"
+          operator: "Exists"
+        - key: "node-role.kubernetes.io/master"
+          effect: NoSchedule
+        - effect: NoExecute
+          key: node.kubernetes.io/not-ready
+          operator: Exists
+          tolerationSeconds: 300
+        - effect: NoExecute
+          key: node.kubernetes.io/unreachable
+          operator: Exists
+          tolerationSeconds: 300
+      containers:
+      - image: digitalocean/digitalocean-cloud-controller-manager:v0.1.3
+        name: digitalocean-cloud-controller-manager
+        command:
+          - "/bin/digitalocean-cloud-controller-manager"
+          - "--cloud-provider=digitalocean"
+          - "--leader-elect=false"
+        resources:
+          requests:
+            cpu: 100m
+            memory: 50Mi
+        env:
+          - name: DO_ACCESS_TOKEN
+            valueFrom:
+              secretKeyRef:
+                name: digitalocean
+                key: access-token
+
+---
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: cloud-controller-manager
+  namespace: kube-system
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRole
+metadata:
+  annotations:
+    rbac.authorization.kubernetes.io/autoupdate: "true"
+  name: system:cloud-controller-manager
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - events
+  verbs:
+  - create
+  - patch
+  - update
+- apiGroups:
+  - ""
+  resources:
+  - nodes
+  verbs:
+  - '*'
+- apiGroups:
+  - ""
+  resources:
+  - nodes/status
+  verbs:
+  - patch
+- apiGroups:
+  - ""
+  resources:
+  - services
+  verbs:
+  - list
+  - patch
+  - update
+  - watch
+- apiGroups:
+  - ""
+  resources:
+  - services/status
+  verbs:
+  - list
+  - patch
+  - update
+  - watch
+- apiGroups:
+  - ""
+  resources:
+  - serviceaccounts
+  verbs:
+  - create
+- apiGroups:
+  - ""
+  resources:
+  - persistentvolumes
+  verbs:
+  - get
+  - list
+  - update
+  - watch
+- apiGroups:
+  - ""
+  resources:
+  - endpoints
+  verbs:
+  - create
+  - get
+  - list
+  - watch
+  - update
+---
+kind: ClusterRoleBinding
+apiVersion: rbac.authorization.k8s.io/v1
+metadata:
+  name: system:cloud-controller-manager
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: system:cloud-controller-manager
+subjects:
+- kind: ServiceAccount
+  name: cloud-controller-manager
+  namespace: kube-system
diff --git a/upup/models/cloudup/resources/addons/dns-controller.addons.k8s.io/k8s-1.6.yaml.template b/upup/models/cloudup/resources/addons/dns-controller.addons.k8s.io/k8s-1.6.yaml.template
index ea91ea657d..495c9c67bf 100644
--- a/upup/models/cloudup/resources/addons/dns-controller.addons.k8s.io/k8s-1.6.yaml.template
+++ b/upup/models/cloudup/resources/addons/dns-controller.addons.k8s.io/k8s-1.6.yaml.template
@@ -44,6 +44,14 @@ spec:
         - name: {{ $name }}
           value: {{ $value }}
 {{ end }}
+{{- end }}
+{{- if eq .CloudProvider "digitalocean" }}
+        env:
+        - name: DIGITALOCEAN_ACCESS_TOKEN
+          valueFrom:
+            secretKeyRef:
+              name: digitalocean
+              key: access-token
 {{- end }}
         resources:
           requests:
diff --git a/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go b/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
index 3f11e52d24..9ebbf111dd 100644
--- a/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
+++ b/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
@@ -290,6 +290,26 @@ func (b *BootstrapChannelBuilder) buildManifest() (*channelsapi.Addons, map[stri
 		}
 	}
 
+	if kops.CloudProviderID(b.cluster.Spec.CloudProvider) == kops.CloudProviderDO {
+		key := "digitalocean-cloud-controller.addons.k8s.io"
+		version := "1.8"
+
+		{
+			id := "k8s-1.8"
+			location := key + "/" + id + ".yaml"
+
+			addons.Spec.Addons = append(addons.Spec.Addons, &channelsapi.AddonSpec{
+				Name:              fi.String(key),
+				Version:           fi.String(version),
+				Selector:          map[string]string{"k8s-addon": key},
+				Manifest:          fi.String(location),
+				KubernetesVersion: ">=1.8.0",
+				Id:                id,
+			})
+			manifests[key+"-"+id] = "addons/" + location
+		}
+	}
+
 	if kops.CloudProviderID(b.cluster.Spec.CloudProvider) == kops.CloudProviderGCE {
 		key := "storage-gce.addons.k8s.io"
 		version := "1.7.0"
diff --git a/upup/pkg/fi/cloudup/template_functions.go b/upup/pkg/fi/cloudup/template_functions.go
index 1ed1083dc9..6ec0ad6f91 100644
--- a/upup/pkg/fi/cloudup/template_functions.go
+++ b/upup/pkg/fi/cloudup/template_functions.go
@@ -94,6 +94,10 @@ func (tf *TemplateFunctions) AddTo(dest template.FuncMap) {
 
 	dest["ProxyEnv"] = tf.ProxyEnv
 
+	dest["DO_TOKEN"] = func() string {
+		return os.Getenv("DIGITALOCEAN_ACCESS_TOKEN")
+	}
+
 	if tf.cluster.Spec.Networking != nil && tf.cluster.Spec.Networking.Flannel != nil {
 		flannelBackendType := tf.cluster.Spec.Networking.Flannel.Backend
 		if flannelBackendType == "" {
@@ -187,8 +191,6 @@ func (tf *TemplateFunctions) DnsControllerArgv() ([]string, error) {
 		case kops.CloudProviderGCE:
 			argv = append(argv, "--dns=google-clouddns")
 		case kops.CloudProviderDO:
-			// this is not supported yet, here so we can successfully create clusters
-			// this will be supported for digitalocean in the future
 			argv = append(argv, "--dns=digitalocean")
 		case kops.CloudProviderVSphere:
 			argv = append(argv, "--dns=coredns")