diff --git a/docs/flannel.md b/docs/flannel.md
index 307eab56c..06351538d 100644
--- a/docs/flannel.md
+++ b/docs/flannel.md
@@ -23,13 +23,6 @@ ip a show dev flannel.1
        valid_lft forever preferred_lft forever
 ```
 
-* Docker must be configured with a bridge ip in the flannel subnet.
-
-```
-ps aux | grep docker
-root     20196  1.7  2.7 1260616 56840 ?       Ssl  10:18   0:07 /usr/bin/docker daemon --bip=10.233.16.1/24 --mtu=1450
-```
-
 * Try to run a container and check its ip address
 
 ```
diff --git a/roles/docker/templates/docker-options.conf.j2 b/roles/docker/templates/docker-options.conf.j2
index 3f54c853d..c70f3d89f 100644
--- a/roles/docker/templates/docker-options.conf.j2
+++ b/roles/docker/templates/docker-options.conf.j2
@@ -1,3 +1,3 @@
 [Service]
 Environment="DOCKER_OPTS={{ docker_options | default('') }} \
---iptables={% if kube_network_plugin == 'flannel' %}true{% else %}false{% endif %}"
+--iptables=false"
diff --git a/roles/download/defaults/main.yml b/roles/download/defaults/main.yml
index 9b78044e1..21599d986 100644
--- a/roles/download/defaults/main.yml
+++ b/roles/download/defaults/main.yml
@@ -27,7 +27,8 @@ calico_ctl_version: "v1.4.0"
 calico_cni_version: "v1.10.0"
 calico_policy_version: "v0.7.0"
 weave_version: 2.0.1
-flannel_version: v0.8.0
+flannel_version: "v0.8.0"
+flannel_cni_version: "v0.2.0"
 pod_infra_version: 3.0
 
 # Download URL's
@@ -43,6 +44,8 @@ etcd_image_repo: "quay.io/coreos/etcd"
 etcd_image_tag: "{{ etcd_version }}"
 flannel_image_repo: "quay.io/coreos/flannel"
 flannel_image_tag: "{{ flannel_version }}"
+flannel_cni_image_repo: "quay.io/coreos/flannel-cni"
+flannel_cni_image_tag: "{{ flannel_cni_version }}"
 calicoctl_image_repo: "quay.io/calico/ctl"
 calicoctl_image_tag: "{{ calico_ctl_version }}"
 calico_node_image_repo: "quay.io/calico/node"
@@ -138,6 +141,12 @@ downloads:
     tag: "{{ flannel_image_tag }}"
     sha256: "{{ flannel_digest_checksum|default(None) }}"
     enabled: "{{ kube_network_plugin == 'flannel' or kube_network_plugin == 'canal' }}"
+  flannel_cni:
+    container: true
+    repo: "{{ flannel_cni_image_repo }}"
+    tag: "{{ flannel_cni_image_tag }}"
+    sha256: "{{ flannel_cni_digest_checksum|default(None) }}"
+    enabled: "{{ kube_network_plugin == 'flannel' }}"
   calicoctl:
     container: true
     repo: "{{ calicoctl_image_repo }}"
diff --git a/roles/kubernetes-apps/network_plugin/flannel/tasks/main.yml b/roles/kubernetes-apps/network_plugin/flannel/tasks/main.yml
new file mode 100644
index 000000000..cfe931375
--- /dev/null
+++ b/roles/kubernetes-apps/network_plugin/flannel/tasks/main.yml
@@ -0,0 +1,22 @@
+---
+- name: "Flannel | Create ServiceAccount ClusterRole and ClusterRoleBinding"
+  command: "{{ bin_dir }}/kubectl apply -f {{ kube_config_dir }}/cni-flannel-rbac.yml"
+  run_once: true
+  when: rbac_enabled and flannel_rbac_manifest.changed
+
+- name: Flannel | Start Resources
+  kube:
+    name: "kube-flannel"
+    kubectl: "{{ bin_dir }}/kubectl"
+    filename: "{{ kube_config_dir }}/cni-flannel.yml"
+    resource: "ds"
+    namespace: "{{system_namespace}}"
+    state: "{{ item | ternary('latest','present') }}"
+  with_items: "{{ flannel_manifest.changed }}"
+  when: inventory_hostname == groups['kube-master'][0]
+
+- name: Flannel | Wait for flannel subnet.env file presence
+  wait_for:
+    path: /run/flannel/subnet.env
+    delay: 5
+    timeout: 600
\ No newline at end of file
diff --git a/roles/kubernetes-apps/network_plugin/meta/main.yml b/roles/kubernetes-apps/network_plugin/meta/main.yml
index 4559d25c6..18c786c1d 100644
--- a/roles/kubernetes-apps/network_plugin/meta/main.yml
+++ b/roles/kubernetes-apps/network_plugin/meta/main.yml
@@ -3,6 +3,9 @@ dependencies:
   - role: kubernetes-apps/network_plugin/canal
     when: kube_network_plugin == 'canal'
     tags: canal
+  - role: kubernetes-apps/network_plugin/flannel
+    when: kube_network_plugin == 'flannel'
+    tags: flannel
   - role: kubernetes-apps/network_plugin/weave
     when: kube_network_plugin == 'weave'
     tags: weave
diff --git a/roles/kubernetes/master/templates/manifests/kube-controller-manager.manifest.j2 b/roles/kubernetes/master/templates/manifests/kube-controller-manager.manifest.j2
index 406994286..44a1c253c 100644
--- a/roles/kubernetes/master/templates/manifests/kube-controller-manager.manifest.j2
+++ b/roles/kubernetes/master/templates/manifests/kube-controller-manager.manifest.j2
@@ -45,9 +45,12 @@ spec:
     - --cloud-provider={{cloud_provider}}
 {% endif %}
 {% if kube_network_plugin is defined and kube_network_plugin == 'cloud' %}
-    - --allocate-node-cidrs=true
     - --configure-cloud-routes=true
+{% endif %}
+{% if kube_network_plugin is defined and kube_network_plugin in ["cloud", "flannel"] %}
+    - --allocate-node-cidrs=true
     - --cluster-cidr={{ kube_pods_subnet }}
+    - --service-cluster-ip-range={{ kube_service_addresses }}
 {% endif %}
 {% if kube_feature_gates %}
     - --feature-gates={{ kube_feature_gates|join(',') }}
diff --git a/roles/kubernetes/node/templates/kubelet.j2 b/roles/kubernetes/node/templates/kubelet.j2
index ce83dea48..14d7e0ddd 100644
--- a/roles/kubernetes/node/templates/kubelet.j2
+++ b/roles/kubernetes/node/templates/kubelet.j2
@@ -56,7 +56,7 @@ KUBELET_HOSTNAME="--hostname-override={{ kube_override_hostname }}"
 {% endif %}
 
 KUBELET_ARGS="{{ kubelet_args_base }} {{ kubelet_args_dns }} {{ kubelet_args_kubeconfig }} {{ node_labels }} {% if kube_feature_gates %} --feature-gates={{ kube_feature_gates|join(',') }} {% endif %} {% if kubelet_custom_flags is string %} {{kubelet_custom_flags}} {% else %}{% for flag in kubelet_custom_flags %} {{flag}} {% endfor %}{% endif %}"
-{% if kube_network_plugin is defined and kube_network_plugin in ["calico", "weave", "canal"] %}
+{% if kube_network_plugin is defined and kube_network_plugin in ["calico", "canal", "flannel", "weave"] %}
 KUBELET_NETWORK_PLUGIN="--network-plugin=cni --network-plugin-dir=/etc/cni/net.d --cni-bin-dir=/opt/cni/bin"
 {% elif kube_network_plugin is defined and kube_network_plugin == "weave" %}
 DOCKER_SOCKET="--docker-endpoint=unix:/var/run/weave/weave.sock"
diff --git a/roles/network_plugin/flannel/defaults/main.yml b/roles/network_plugin/flannel/defaults/main.yml
index 360756f0a..08f4ac145 100644
--- a/roles/network_plugin/flannel/defaults/main.yml
+++ b/roles/network_plugin/flannel/defaults/main.yml
@@ -1,7 +1,8 @@
 ---
 # Flannel public IP
 # The address that flannel should advertise as how to access the system
-flannel_public_ip: "{{ access_ip|default(ip|default(ansible_default_ipv4.address)) }}"
+# Disabled until https://github.com/coreos/flannel/issues/712 is fixed
+# flannel_public_ip: "{{ access_ip|default(ip|default(ansible_default_ipv4.address)) }}"
 
 ## interface that should be used for flannel operations
 ## This is actually an inventory node-level item
@@ -17,5 +18,5 @@ flannel_cpu_limit: 300m
 flannel_memory_requests: 64M
 flannel_cpu_requests: 150m
 
-flannel_cert_dir: /etc/flannel/certs
-etcd_cert_dir: /etc/ssl/etcd/ssl
+# Legacy directory, will be removed if found.
+flannel_cert_dir: /etc/flannel/certs
\ No newline at end of file
diff --git a/roles/network_plugin/flannel/handlers/main.yml b/roles/network_plugin/flannel/handlers/main.yml
index 3726c900e..00c5667b0 100644
--- a/roles/network_plugin/flannel/handlers/main.yml
+++ b/roles/network_plugin/flannel/handlers/main.yml
@@ -4,6 +4,10 @@
   failed_when: false
   notify: Flannel | restart docker
 
+- name: Flannel | delete flannel interface
+  command: ip link delete flannel.1
+  failed_when: false
+
 # special cases for atomic because it defaults to live-restore: true
 # So we disable live-restore to pickup the new flannel IP.  After
 # we enable it, we have to restart docker again to pickup the new
diff --git a/roles/network_plugin/flannel/meta/main.yml b/roles/network_plugin/flannel/meta/main.yml
index 4a2caef72..791209357 100644
--- a/roles/network_plugin/flannel/meta/main.yml
+++ b/roles/network_plugin/flannel/meta/main.yml
@@ -3,3 +3,6 @@ dependencies:
   - role: download
     file: "{{ downloads.flannel }}"
     tags: download
+  - role: download
+    file: "{{ downloads.flannel_cni }}"
+    tags: download
diff --git a/roles/network_plugin/flannel/tasks/main.yml b/roles/network_plugin/flannel/tasks/main.yml
index 573b51f19..037684fa4 100644
--- a/roles/network_plugin/flannel/tasks/main.yml
+++ b/roles/network_plugin/flannel/tasks/main.yml
@@ -1,83 +1,47 @@
 ---
-- name: Flannel | Set Flannel etcd configuration
-  command: |-
-    {{ bin_dir }}/etcdctl --peers={{ etcd_access_addresses }} \
-    set /{{ cluster_name }}/network/config \
-    '{ "Network": "{{ kube_pods_subnet }}", "SubnetLen": {{ kube_network_node_prefix }}, "Backend": { "Type": "{{ flannel_backend_type }}" } }'
-  delegate_to: "{{groups['etcd'][0]}}"
-  run_once: true
+- include: pre-upgrade.yml
 
-- name: Flannel | Create flannel certs directory
-  file:
-    dest: "{{ flannel_cert_dir }}"
-    state: directory
-    mode: 0750
-    owner: root
-    group: root
+- name: Flannel | Verify if br_netfilter module exists
+  shell: "modinfo br_netfilter"
+  register: modinfo_br_netfilter
+  failed_when: modinfo_br_netfilter.rc not in [0, 1]
+  changed_when: false
 
-- name: Flannel | Link etcd certificates for flanneld
-  file:
-    src: "{{ etcd_cert_dir }}/{{ item.s }}"
-    dest: "{{ flannel_cert_dir }}/{{ item.d }}"
-    state: hard
-    force: yes
+- name: Flannel | Enable br_netfilter module
+  modprobe:
+    name: br_netfilter
+    state: present
+  when: modinfo_br_netfilter.rc == 0
+
+# kube-proxy needs net.bridge.bridge-nf-call-iptables enabled when found if br_netfilter is not a module
+- name: Flannel | Check if bridge-nf-call-iptables key exists
+  command: "sysctl net.bridge.bridge-nf-call-iptables"
+  failed_when: false
+  changed_when: false
+  register: sysctl_bridge_nf_call_iptables
+
+- name: Flannel | Enable bridge-nf-call tables
+  sysctl:
+    name: "{{ item }}"
+    state: present
+    value: 1
+    reload: yes
+  when: modinfo_br_netfilter.rc == 1 and sysctl_bridge_nf_call_iptables.rc == 0
   with_items:
-    - {s: "ca.pem", d: "ca_cert.crt"}
-    - {s: "node-{{ inventory_hostname }}.pem", d: "cert.crt"}
-    - {s: "node-{{ inventory_hostname }}-key.pem", d: "key.pem"}
+    - net.bridge.bridge-nf-call-iptables
+    - net.bridge.bridge-nf-call-arptables
+    - net.bridge.bridge-nf-call-ip6tables
 
-- name: Flannel | Create flannel pod manifest
+- name: Flannel | Create cni-flannel-rbac manifest
   template:
-    src: flannel-pod.yml
-    dest: "{{kube_manifest_dir}}/flannel-pod.manifest"
-  notify: Flannel | delete default docker bridge
+    src: cni-flannel-rbac.yml.j2
+    dest: "{{ kube_config_dir }}/cni-flannel-rbac.yml"
+  register: flannel_rbac_manifest
+  when: inventory_hostname == groups['kube-master'][0] and rbac_enabled
 
-- name: Flannel | Wait for flannel subnet.env file presence
-  wait_for:
-    path: /run/flannel/subnet.env
-    delay: 5
-    timeout: 600
-
-- name: Flannel | Get flannel_subnet from subnet.env
-  shell: cat /run/flannel/subnet.env | awk -F'=' '$1 == "FLANNEL_SUBNET" {print $2}'
-  register: flannel_subnet_output
-  changed_when: false
-  check_mode: no
-
-- set_fact:
-    flannel_subnet: "{{ flannel_subnet_output.stdout }}"
-
-- name: Flannel | Get flannel_mtu from subnet.env
-  shell: cat /run/flannel/subnet.env | awk -F'=' '$1 == "FLANNEL_MTU" {print $2}'
-  register: flannel_mtu_output
-  changed_when: false
-  check_mode: no
-
-- set_fact:
-    flannel_mtu: "{{ flannel_mtu_output.stdout }}"
-
-- set_fact:
-    docker_options_file: >-
-      {%- if ansible_os_family == "Debian" -%}/etc/default/docker{%- elif ansible_os_family == "RedHat" -%}/etc/sysconfig/docker{%- endif -%}
-  tags: facts
-
-- set_fact:
-    docker_options_name: >-
-      {%- if ansible_os_family == "Debian" -%}DOCKER_OPTS{%- elif ansible_os_family == "RedHat" -%}other_args{%- endif -%}
-  tags: facts
-
-- set_fact:
-    docker_network_options: '"--bip={{ flannel_subnet }} --mtu={{ flannel_mtu }}"'
-
-- name: Flannel | Ensure path for docker network systemd drop-in
-  file:
-    path: "/etc/systemd/system/docker.service.d"
-    state: directory
-    owner: root
-
-- name: Flannel | Create docker network systemd drop-in
+- name: Flannel | Create cni-flannel manifest
   template:
-    src: flannel-options.conf.j2
-    dest: "/etc/systemd/system/docker.service.d/flannel-options.conf"
-  notify:
-    - Flannel | restart docker
+    src: cni-flannel.yml.j2
+    dest: "{{ kube_config_dir }}/cni-flannel.yml"
+  register: flannel_manifest
+  when: inventory_hostname == groups['kube-master'][0]
\ No newline at end of file
diff --git a/roles/network_plugin/flannel/tasks/pre-upgrade.yml b/roles/network_plugin/flannel/tasks/pre-upgrade.yml
new file mode 100644
index 000000000..6b6fcd54f
--- /dev/null
+++ b/roles/network_plugin/flannel/tasks/pre-upgrade.yml
@@ -0,0 +1,19 @@
+---
+- name: Flannel pre-upgrade | Purge legacy flannel systemd unit file
+  file:
+    path: "/etc/systemd/system/docker.service.d/flannel-options.conf"
+    state: absent
+  notify:
+    - Flannel | delete default docker bridge
+
+- name: Flannel pre-upgrade | Purge legacy Flannel static pod manifest
+  file:
+    path: "{{ kube_manifest_dir }}/flannel-pod.manifest"
+    state: absent
+  notify:
+    - Flannel | delete flannel interface
+
+- name: Flannel pre-upgrade | Remove Flannel's certificate directory not required by CNI
+  file:
+    dest: "{{ flannel_cert_dir }}"
+    state: absent
\ No newline at end of file
diff --git a/roles/network_plugin/flannel/templates/cni-flannel-rbac.yml.j2 b/roles/network_plugin/flannel/templates/cni-flannel-rbac.yml.j2
new file mode 100644
index 000000000..aafe2a0f5
--- /dev/null
+++ b/roles/network_plugin/flannel/templates/cni-flannel-rbac.yml.j2
@@ -0,0 +1,44 @@
+---
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: flannel
+  namespace: "{{system_namespace}}"
+---
+kind: ClusterRole
+apiVersion: rbac.authorization.k8s.io/v1beta1
+metadata:
+  name: flannel
+rules:
+  - apiGroups:
+      - ""
+    resources:
+      - pods
+    verbs:
+      - get
+  - apiGroups:
+      - ""
+    resources:
+      - nodes
+    verbs:
+      - list
+      - watch
+  - apiGroups:
+      - ""
+    resources:
+      - nodes/status
+    verbs:
+      - patch
+---
+kind: ClusterRoleBinding
+apiVersion: rbac.authorization.k8s.io/v1beta1
+metadata:
+  name: flannel
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: flannel
+subjects:
+- kind: ServiceAccount
+  name: flannel
+  namespace: "{{system_namespace}}"
\ No newline at end of file
diff --git a/roles/network_plugin/flannel/templates/cni-flannel.yml.j2 b/roles/network_plugin/flannel/templates/cni-flannel.yml.j2
new file mode 100644
index 000000000..0012228d7
--- /dev/null
+++ b/roles/network_plugin/flannel/templates/cni-flannel.yml.j2
@@ -0,0 +1,125 @@
+---
+kind: ConfigMap
+apiVersion: v1
+metadata:
+  name: kube-flannel-cfg
+  namespace: "{{system_namespace}}"
+  labels:
+    tier: node
+    app: flannel
+data:
+  cni-conf.json: |
+    {
+      "name":"cbr0",
+      "cniVersion":"0.3.1",
+      "plugins":[
+        {
+          "type":"flannel",
+          "delegate":{
+            "forceAddress":true,
+            "isDefaultGateway":true
+          }
+        },
+        {
+          "type":"portmap",
+          "capabilities":{
+            "portMappings":true
+          }
+        }
+      ]
+    }
+  net-conf.json: |
+    {
+      "Network": "{{ kube_pods_subnet }}",
+      "Backend": {
+        "Type": "{{ flannel_backend_type }}"
+      }
+    }
+---
+apiVersion: extensions/v1beta1
+kind: DaemonSet
+metadata:
+  name: kube-flannel
+  namespace: "{{system_namespace}}"
+  labels:
+    tier: node
+    k8s-app: flannel
+spec:
+  template:
+    metadata:
+      labels:
+        tier: node
+        k8s-app: flannel
+    spec:
+{% if rbac_enabled %}
+      serviceAccountName: flannel
+{% endif %}
+      containers:
+      - name: kube-flannel
+        image: {{ flannel_image_repo }}:{{ flannel_image_tag }}
+        imagePullPolicy: {{ k8s_image_pull_policy }}
+        resources:
+          limits:
+            cpu: {{ flannel_cpu_limit }}
+            memory: {{ flannel_memory_limit }}
+          requests:
+            cpu: {{ flannel_cpu_requests }}
+            memory: {{ flannel_memory_requests }}
+        command: [ "/opt/bin/flanneld", "--ip-masq", "--kube-subnet-mgr"{% if flannel_interface is defined %}, "--iface={{ flannel_interface }}"{% endif %} ]
+        securityContext:
+          privileged: true
+        env:
+        - name: POD_NAME
+          valueFrom:
+            fieldRef:
+              fieldPath: metadata.name
+        - name: POD_NAMESPACE
+          valueFrom:
+            fieldRef:
+              fieldPath: metadata.namespace
+        volumeMounts:
+        - name: run
+          mountPath: /run
+        - name: cni
+          mountPath: /etc/cni/net.d
+        - name: flannel-cfg
+          mountPath: /etc/kube-flannel/
+      - name: install-cni
+        image: {{ flannel_cni_image_repo }}:{{ flannel_cni_image_tag }}
+        command: ["/install-cni.sh"]
+        env:
+        # The CNI network config to install on each node.
+        - name: CNI_NETWORK_CONFIG
+          valueFrom:
+            configMapKeyRef:
+              name: kube-flannel-cfg
+              key: cni-conf.json
+        - name: CNI_CONF_NAME
+          value: "10-flannel.conflist"
+        volumeMounts:
+        - name: cni
+          mountPath: /host/etc/cni/net.d
+        - name: host-cni-bin
+          mountPath: /host/opt/cni/bin/
+      hostNetwork: true
+      tolerations:
+      - key: node-role.kubernetes.io/master
+        operator: Exists
+        effect: NoSchedule
+      volumes:
+        - name: run
+          hostPath:
+            path: /run
+        - name: cni
+          hostPath:
+            path: /etc/cni/net.d
+        - name: flannel-cfg
+          configMap:
+            name: kube-flannel-cfg
+        - name: host-cni-bin
+          hostPath:
+            path: /opt/cni/bin
+  updateStrategy:
+    rollingUpdate:
+      maxUnavailable: 1
+    type: RollingUpdate
\ No newline at end of file
diff --git a/roles/network_plugin/flannel/templates/flannel-options.conf.j2 b/roles/network_plugin/flannel/templates/flannel-options.conf.j2
deleted file mode 100644
index 9ee22b4bc..000000000
--- a/roles/network_plugin/flannel/templates/flannel-options.conf.j2
+++ /dev/null
@@ -1,6 +0,0 @@
-[Service]
-{% if ansible_os_family in ["CoreOS", "Container Linux by CoreOS"] %}
-Environment="DOCKER_OPT_BIP=--bip={{ flannel_subnet }} --mtu={{ flannel_mtu }}"
-{% else %}
-Environment="DOCKER_NETWORK_OPTIONS=--bip={{ flannel_subnet }} --mtu={{ flannel_mtu }}"
-{% endif %}
diff --git a/roles/network_plugin/flannel/templates/flannel-pod.yml b/roles/network_plugin/flannel/templates/flannel-pod.yml
deleted file mode 100644
index a6e075b8c..000000000
--- a/roles/network_plugin/flannel/templates/flannel-pod.yml
+++ /dev/null
@@ -1,47 +0,0 @@
----
-kind: "Pod"
-apiVersion: "v1"
-metadata:
-  name: "flannel"
-  namespace: "{{system_namespace}}"
-  labels:
-    app: "flannel"
-    version: "v0.1"
-spec:
-  tolerations:
-    - effect: NoSchedule
-      operator: Exists
-  volumes:
-    - name: "subnetenv"
-      hostPath:
-        path: "/run/flannel"
-    - name: "etcd-certs"
-      hostPath:
-        path: "{{ flannel_cert_dir }}"
-  containers:
-    - name: "flannel-container"
-      image: "{{ flannel_image_repo }}:{{ flannel_image_tag }}"
-      imagePullPolicy: {{ k8s_image_pull_policy }}
-      resources:
-        limits:
-          cpu: {{ flannel_cpu_limit }}
-          memory: {{ flannel_memory_limit }}
-        requests:
-          cpu: {{ flannel_cpu_requests }}
-          memory: {{ flannel_memory_requests }}
-      command:
-        - "/bin/sh"
-        - "-c"
-        - "/opt/bin/flanneld -etcd-endpoints {{ etcd_access_endpoint }} -etcd-prefix /{{ cluster_name }}/network -etcd-cafile {{ flannel_cert_dir }}/ca_cert.crt -etcd-certfile {{ flannel_cert_dir }}/cert.crt -etcd-keyfile {{ flannel_cert_dir }}/key.pem {% if flannel_interface is defined %}-iface {{ flannel_interface }}{% endif %} {% if flannel_public_ip is defined %}-public-ip {{ flannel_public_ip }}{% endif %}"
-      ports:
-        - hostPort: 10253
-          containerPort: 10253
-      volumeMounts:
-        - name: "subnetenv"
-          mountPath: "/run/flannel"
-        - name: "etcd-certs"
-          mountPath: "{{ flannel_cert_dir }}"
-          readOnly: true
-      securityContext:
-        privileged: true
-  hostNetwork: true