diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 209f64b..28d3d0f 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -101,8 +101,8 @@ Note:
 * profile `(dyn)variables` > any other `(dyn)variables`
 * profile `(dyn)variables` > profile's included `(dyn)variables`
 * imported `variables`/`dynvariables` > `(dyn)variables`
-* actions using variables are resolved at runtime (when action is executed)
-  and not when loading the config
+* actions/transformations  using variables are resolved at runtime
+  (when action/transformation is executed) and not when loading the config
 
 # Testing
 
diff --git a/dotdrop/action.py b/dotdrop/action.py
index fb3c78a..3e0b5bb 100644
--- a/dotdrop/action.py
+++ b/dotdrop/action.py
@@ -121,14 +121,20 @@ class Action(Cmd):
 
 class Transform(Cmd):
 
-    def transform(self, arg0, arg1):
+    def transform(self, arg0, arg1, templater=None, debug=False):
         """
         execute transformation with {0} and {1}
         where {0} is the file to transform
         and {1} is the result file
         """
         ret = 1
-        cmd = self.action.format(arg0, arg1)
+        action = self.action
+        if templater:
+            action = templater.generate_string(action)
+            if debug:
+                self.log.dbg('trans \"{}\" -> \"{}\"'.format(self.action,
+                                                             action))
+        cmd = action.format(arg0, arg1)
         if os.path.exists(arg1):
             msg = 'transformation \"{}\": destination exists: {}'
             self.log.warn(msg.format(cmd, arg1))
diff --git a/dotdrop/dotdrop.py b/dotdrop/dotdrop.py
index 193c276..4a3c201 100644
--- a/dotdrop/dotdrop.py
+++ b/dotdrop/dotdrop.py
@@ -133,7 +133,7 @@ def cmd_install(o):
             src = dotfile.src
             tmp = None
             if dotfile.trans_r:
-                tmp = apply_trans(o.dotpath, dotfile, debug=o.debug)
+                tmp = apply_trans(o.dotpath, dotfile, t, debug=o.debug)
                 if not tmp:
                     continue
                 src = tmp
@@ -224,7 +224,7 @@ def cmd_compare(o, tmp):
             # apply transformation
             if o.debug:
                 LOG.dbg('applying transformation before comparing')
-            tmpsrc = apply_trans(o.dotpath, dotfile, debug=o.debug)
+            tmpsrc = apply_trans(o.dotpath, dotfile, t, debug=o.debug)
             if not tmpsrc:
                 # could not apply trans
                 same = False
@@ -561,7 +561,7 @@ def _select(selections, dotfiles):
     return selected
 
 
-def apply_trans(dotpath, dotfile, debug=False):
+def apply_trans(dotpath, dotfile, templater, debug=False):
     """
     apply the read transformation to the dotfile
     return None if fails and new source if succeed
@@ -573,7 +573,7 @@ def apply_trans(dotpath, dotfile, debug=False):
         LOG.dbg('executing transformation {}'.format(trans))
     s = os.path.join(dotpath, src)
     temp = os.path.join(dotpath, new_src)
-    if not trans.transform(s, temp):
+    if not trans.transform(s, temp, templater=templater, debug=debug):
         msg = 'transformation \"{}\" failed for {}'
         LOG.err(msg.format(trans.key, dotfile.key))
         if new_src and os.path.exists(new_src):
diff --git a/dotdrop/updater.py b/dotdrop/updater.py
index 78c8634..b117a94 100644
--- a/dotdrop/updater.py
+++ b/dotdrop/updater.py
@@ -48,6 +48,11 @@ class Updater:
         self.debug = debug
         self.ignore = ignore
         self.showpatch = showpatch
+        self.templater = Templategen(variables=self.variables,
+                                     base=self.dotpath,
+                                     debug=self.debug)
+        # save template vars
+        self.tvars = self.templater.add_tmp_vars()
         self.log = Logger()
 
     def update_path(self, path):
@@ -110,7 +115,11 @@ class Updater:
         if self.debug:
             self.log.dbg('executing write transformation {}'.format(trans))
         tmp = get_unique_tmp_name()
-        if not trans.transform(path, tmp):
+        self.templater.restore_vars(self.tvars)
+        newvars = dotfile.get_dotfile_variables()
+        self.templater.add_tmp_vars(newvars=newvars)
+        if not trans.transform(path, tmp, templater=self.templater,
+                               debug=self.debug):
             msg = 'transformation \"{}\" failed for {}'
             self.log.err(msg.format(trans.key, dotfile.key))
             if os.path.exists(tmp):
@@ -136,9 +145,8 @@ class Updater:
 
     def _resolve_template(self, tpath):
         """resolve the template to a temporary file"""
-        t = Templategen(variables=self.variables, base=self.dotpath,
-                        debug=self.debug)
-        return t.generate(tpath)
+        self.templater.restore_vars(self.tvars)
+        return self.templater.generate(tpath)
 
     def _handle_file(self, path, dtpath, compare=True):
         """sync path (deployed file) and dtpath (dotdrop dotfile path)"""
diff --git a/tests-ng/transformations-template.sh b/tests-ng/transformations-template.sh
new file mode 100755
index 0000000..ee6b055
--- /dev/null
+++ b/tests-ng/transformations-template.sh
@@ -0,0 +1,144 @@
+#!/usr/bin/env bash
+# author: deadc0de6 (https://github.com/deadc0de6)
+# Copyright (c) 2019, deadc0de6
+#
+# test transformations using templates
+#
+
+# exit on first error
+set -e
+#set -v
+
+# all this crap to get current path
+rl="readlink -f"
+if ! ${rl} "${0}" >/dev/null 2>&1; then
+  rl="realpath"
+
+  if ! hash ${rl}; then
+    echo "\"${rl}\" not found !" && exit 1
+  fi
+fi
+cur=$(dirname "$(${rl} "${0}")")
+
+#hash dotdrop >/dev/null 2>&1
+#[ "$?" != "0" ] && echo "install dotdrop to run tests" && exit 1
+
+#echo "called with ${1}"
+
+# dotdrop path can be pass as argument
+ddpath="${cur}/../"
+[ "${1}" != "" ] && ddpath="${1}"
+[ ! -d ${ddpath} ] && echo "ddpath \"${ddpath}\" is not a directory" && exit 1
+
+export PYTHONPATH="${ddpath}:${PYTHONPATH}"
+bin="python3 -m dotdrop.dotdrop"
+
+echo "dotdrop path: ${ddpath}"
+echo "pythonpath: ${PYTHONPATH}"
+
+# get the helpers
+source ${cur}/helpers
+
+echo -e "$(tput setaf 6)==> RUNNING $(basename $BASH_SOURCE) <==$(tput sgr0)"
+
+################################################################
+# this is the test
+################################################################
+
+# the dotfile source
+tmps=`mktemp -d --suffix='-dotdrop-tests' || mktemp -d`
+mkdir -p ${tmps}/dotfiles
+echo "dotfiles source (dotpath): ${tmps}"
+# the dotfile destination
+tmpd=`mktemp -d --suffix='-dotdrop-tests' || mktemp -d`
+echo "dotfiles destination: ${tmpd}"
+
+# create the config file
+cfg="${tmps}/config.yaml"
+
+# token
+token="test-base64"
+tokend="compressed archive"
+touched="touched"
+
+cat > ${cfg} << _EOF
+trans_read:
+  r_echo_abs_src: echo "\$(cat {0}); {{@@ _dotfile_abs_src @@}}" > {1}
+  r_echo_var: echo "\$(cat {0}); {{@@ r_var @@}}" > {1}
+trans_write:
+  w_echo_key: echo "\$(cat {0}); {{@@ _dotfile_key @@}}" > {1}
+  w_echo_var: echo "\$(cat {0}); {{@@ w_var @@}}" > {1}
+variables:
+  r_var: readvar
+  w_var: writevar
+config:
+  backup: true
+  create: true
+  dotpath: dotfiles
+dotfiles:
+  f_def:
+    dst: ${tmpd}/def
+    src: def
+  f_abc:
+    dst: ${tmpd}/abc
+    src: abc
+    trans_read: r_echo_abs_src
+    trans_write: w_echo_key
+  d_ghi:
+    dst: ${tmpd}/ghi
+    src: ghi
+    trans_read: r_echo_var
+    trans_write: w_echo_var
+profiles:
+  p1:
+    dotfiles:
+    - f_abc
+    - f_def
+    - d_ghi
+_EOF
+#cat ${cfg}
+
+# create the dotfiles
+echo 'abc' > ${tmps}/dotfiles/abc
+echo 'marker' > ${tmps}/dotfiles/def
+echo 'ghi' > ${tmps}/dotfiles/ghi
+
+###########################
+# test install and compare
+###########################
+
+# install
+cd ${ddpath} | ${bin} install -f -c ${cfg} -p p1 -b -V
+
+# check dotfile
+[ ! -e ${tmpd}/def ] && exit 1
+[ ! -e ${tmpd}/abc ] && exit 1
+[ ! -e ${tmpd}/ghi ] && exit 1
+grep marker ${tmpd}/def
+cat ${tmpd}/abc
+grep "abc; ${tmps}/dotfiles/abc" ${tmpd}/abc
+cat ${tmpd}/ghi
+grep "ghi; readvar" ${tmpd}/ghi
+
+###########################
+# test update
+###########################
+
+# update single file
+cd ${ddpath} | ${bin} update -f -k -c ${cfg} -p p1 -b -V
+
+# checks
+[ ! -e ${tmps}/dotfiles/def ] && exit 1
+[ ! -e ${tmps}/dotfiles/abc ] && exit 1
+[ ! -e ${tmps}/dotfiles/ghi ] && exit 1
+grep marker ${tmps}/dotfiles/def
+cat ${tmps}/dotfiles/abc
+grep "abc; ${tmps}/dotfiles/abc; f_abc" ${tmps}/dotfiles/abc
+cat ${tmps}/dotfiles/ghi
+grep "ghi; readvar; writevar" ${tmps}/dotfiles/ghi
+
+## CLEANING
+rm -rf ${tmps} ${tmpd}
+
+echo "OK"
+exit 0