diff --git a/docs/charts.md b/docs/charts.md
index 3d4ae3a22131cac2d0130546bca26abdb07abe6c..5627c8600bdf0413fff112af32475caad5c5d3ec 100644
--- a/docs/charts.md
+++ b/docs/charts.md
@@ -849,6 +849,8 @@ considerations in mind:
 - The `Chart.yaml` will be overwritten by the generator.
 - Users will expect to modify such a chart's contents, so documentation
   should indicate how users can do so.
+- All occurances of `<CHARTNAME>` will be replaced with the specified chart
+  name so that starter charts can be used as templates.
 
 Currently the only way to add a chart to `$HELM_HOME/starters` is to manually
 copy it there. In your chart's documentation, you may want to explain that
diff --git a/pkg/chartutil/create.go b/pkg/chartutil/create.go
index 7a44aaed6fc3aa17d9923ad215301b677d862470..319a75e2f50e1b6777a259e0dba8b9e69ca10bd8 100644
--- a/pkg/chartutil/create.go
+++ b/pkg/chartutil/create.go
@@ -21,7 +21,6 @@ import (
 	"io/ioutil"
 	"os"
 	"path/filepath"
-	"strings"
 
 	"k8s.io/helm/pkg/proto/hapi/chart"
 )
@@ -297,6 +296,17 @@ func CreateFrom(chartfile *chart.Metadata, dest string, src string) error {
 	}
 
 	schart.Metadata = chartfile
+
+	var updatedTemplates []*chart.Template
+
+	for _, template := range schart.Templates {
+		newData := Transform(string(template.Data), "<CHARTNAME>", schart.Metadata.Name)
+		updatedTemplates = append(updatedTemplates, &chart.Template{Name: template.Name, Data: newData})
+	}
+
+	schart.Templates = updatedTemplates
+	schart.Values = &chart.Config{Raw: string(Transform(schart.Values.Raw, "<CHARTNAME>", schart.Metadata.Name))}
+
 	return SaveDir(schart, dest)
 }
 
@@ -364,27 +374,27 @@ func Create(chartfile *chart.Metadata, dir string) (string, error) {
 		{
 			// ingress.yaml
 			path:    filepath.Join(cdir, TemplatesDir, IngressFileName),
-			content: []byte(strings.Replace(defaultIngress, "<CHARTNAME>", chartfile.Name, -1)),
+			content: Transform(defaultIngress, "<CHARTNAME>", chartfile.Name),
 		},
 		{
 			// deployment.yaml
 			path:    filepath.Join(cdir, TemplatesDir, DeploymentName),
-			content: []byte(strings.Replace(defaultDeployment, "<CHARTNAME>", chartfile.Name, -1)),
+			content: Transform(defaultDeployment, "<CHARTNAME>", chartfile.Name),
 		},
 		{
 			// service.yaml
 			path:    filepath.Join(cdir, TemplatesDir, ServiceName),
-			content: []byte(strings.Replace(defaultService, "<CHARTNAME>", chartfile.Name, -1)),
+			content: Transform(defaultService, "<CHARTNAME>", chartfile.Name),
 		},
 		{
 			// NOTES.txt
 			path:    filepath.Join(cdir, TemplatesDir, NotesName),
-			content: []byte(strings.Replace(defaultNotes, "<CHARTNAME>", chartfile.Name, -1)),
+			content: Transform(defaultNotes, "<CHARTNAME>", chartfile.Name),
 		},
 		{
 			// _helpers.tpl
 			path:    filepath.Join(cdir, TemplatesDir, HelpersName),
-			content: []byte(strings.Replace(defaultHelpers, "<CHARTNAME>", chartfile.Name, -1)),
+			content: Transform(defaultHelpers, "<CHARTNAME>", chartfile.Name),
 		},
 	}
 
diff --git a/pkg/chartutil/create_test.go b/pkg/chartutil/create_test.go
index ee88972f43a82c3304d23ddc0400b17ceac7d0dc..e9af83ad2841a673ef0640c0f4cf693a81253da8 100644
--- a/pkg/chartutil/create_test.go
+++ b/pkg/chartutil/create_test.go
@@ -20,6 +20,7 @@ import (
 	"io/ioutil"
 	"os"
 	"path/filepath"
+	"strings"
 	"testing"
 
 	"k8s.io/helm/pkg/proto/hapi/chart"
@@ -125,4 +126,9 @@ func TestCreateFrom(t *testing.T) {
 			t.Errorf("Expected %s to be a file.", f)
 		}
 	}
+
+	// Ensure we replace `<CHARTNAME>`
+	if strings.Contains(mychart.Values.Raw, "<CHARTNAME>") {
+		t.Errorf("Did not expect %s to be present in %s", "<CHARTNAME>", mychart.Values.Raw)
+	}
 }
diff --git a/pkg/chartutil/testdata/mariner/values.yaml b/pkg/chartutil/testdata/mariner/values.yaml
index e1609e243b76dbaff2316d372533111a0201dcea..b0ccb008629ddbadb061c018701af3ebf15fa388 100644
--- a/pkg/chartutil/testdata/mariner/values.yaml
+++ b/pkg/chartutil/testdata/mariner/values.yaml
@@ -1,4 +1,7 @@
-# Default values for mariner.
+# Default values for <CHARTNAME>.
 # This is a YAML-formatted file. https://github.com/toml-lang/toml
 # Declare name/value pairs to be passed into your templates.
 # name: "value"
+
+<CHARTNAME>:
+  test: true
diff --git a/pkg/chartutil/transform.go b/pkg/chartutil/transform.go
new file mode 100644
index 0000000000000000000000000000000000000000..7cbb754fb325136adf3e999fd9b10ce607194ba4
--- /dev/null
+++ b/pkg/chartutil/transform.go
@@ -0,0 +1,25 @@
+/*
+Copyright 2016 The Kubernetes Authors All rights reserved.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package chartutil
+
+import "strings"
+
+// Transform performs a string replacement of the specified source for
+// a given key with the replacement string
+func Transform(src string, key string, replacement string) []byte {
+	return []byte(strings.Replace(src, key, replacement, -1))
+}