diff --git a/examples/annotated-skaffold.yaml b/examples/annotated-skaffold.yaml
index 89c8a5a13ee..bd9dc147f2d 100644
--- a/examples/annotated-skaffold.yaml
+++ b/examples/annotated-skaffold.yaml
@@ -106,15 +106,27 @@ deploy:
     # helm releases to deploy.
     # releases:
     # - name: skaffold-helm
-    #  chartPath: skaffold-helm
-    #  valuesFilePath: helm-skaffold-values.yaml
-    #  values:
-    #    image: skaffold-helm
-    #  namespace: skaffold
-    #  version: ""
-      # setValues get appended to the helm deploy with --set.
-    #  setValues:
+    #   chartPath: skaffold-helm
+    #   valuesFilePath: helm-skaffold-values.yaml
+    #   values:
+    #     image: skaffold-helm
+    #   namespace: skaffold
+    #   version: ""
+    #
+    #   # setValues get appended to the helm deploy with --set.
+    #   setValues:
     #    key: "value"
+    #
+    #   # packaged section allows to package chart setting specific version
+    #   # and/or appVersion using "helm package" command.
+    #   packaged:
+    #     # version is passed to "helm package --version" flag.
+    #     # Note that you can specify both static string or dynamic template.
+    #     version: {{ .CHART_VERSION }}-dirty
+    #     # appVersion is passed to "helm package --app-version" flag.
+    #     # Note that you can specify both static string or dynamic template.
+    #     appVersion: {{ .CHART_VERSION }}-dirty
+
 # profiles section has all the profile information which can be used to override any build or deploy configuration
 profiles:
   - name: gcb
diff --git a/pkg/skaffold/deploy/helm.go b/pkg/skaffold/deploy/helm.go
index 496766cbdaf..7824c620e93 100644
--- a/pkg/skaffold/deploy/helm.go
+++ b/pkg/skaffold/deploy/helm.go
@@ -24,6 +24,8 @@ import (
 	"io"
 	"os"
 	"os/exec"
+	"path/filepath"
+	"strings"
 
 	// k8syaml "k8s.io/apimachinery/pkg/util/yaml"
 	// "k8s.io/client-go/kubernetes/scheme"
@@ -128,9 +130,29 @@ func (h *HelmDeployer) deployRelease(out io.Writer, r v1alpha2.HelmRelease, buil
 
 	var args []string
 	if !isInstalled {
-		args = append(args, "install", "--name", releaseName, r.ChartPath)
+		args = append(args, "install", "--name", releaseName)
 	} else {
-		args = append(args, "upgrade", releaseName, r.ChartPath)
+		args = append(args, "upgrade", releaseName)
+	}
+
+	// There are 2 strategies:
+	// 1) Deploy chart directly from filesystem path or from repository
+	//    (like stable/kubernetes-dashboard). Version only applies to a
+	//    chart from repository.
+	// 2) Package chart into a .tgz archive with specific version and then deploy
+	//    that packaged chart. This way user can apply any version and appVersion
+	//    for the chart.
+	if r.Packaged == nil {
+		if r.Version != "" {
+			args = append(args, "--version", r.Version)
+		}
+		args = append(args, r.ChartPath)
+	} else {
+		chartPath, err := h.packageChart(r)
+		if err != nil {
+			return nil, errors.WithMessage(err, "cannot package chart")
+		}
+		args = append(args, chartPath)
 	}
 
 	var ns string
@@ -161,9 +183,6 @@ func (h *HelmDeployer) deployRelease(out io.Writer, r v1alpha2.HelmRelease, buil
 	if r.ValuesFilePath != "" {
 		args = append(args, "-f", r.ValuesFilePath)
 	}
-	if r.Version != "" {
-		args = append(args, "--version", r.Version)
-	}
 
 	if len(r.SetValues) != 0 {
 		for k, v := range r.SetValues {
@@ -184,6 +203,41 @@ func (h *HelmDeployer) deployRelease(out io.Writer, r v1alpha2.HelmRelease, buil
 	return h.getDeployResults(ns, r.Name), helmErr
 }
 
+// packageChart packages the chart and returns path to the chart archive file.
+// If this function returns an error, it will always be wrapped.
+func (h *HelmDeployer) packageChart(r v1alpha2.HelmRelease) (string, error) {
+	tmp := os.TempDir()
+	packageArgs := []string{"package", r.ChartPath, "--destination", tmp}
+	if r.Packaged.Version != "" {
+		v, err := concretize(r.Packaged.Version)
+		if err != nil {
+			return "", errors.Wrap(err, `concretize "packaged.version" template`)
+		}
+		packageArgs = append(packageArgs, "--version", v)
+	}
+	if r.Packaged.AppVersion != "" {
+		av, err := concretize(r.Packaged.AppVersion)
+		if err != nil {
+			return "", errors.Wrap(err, `concretize "packaged.appVersion" template`)
+		}
+		packageArgs = append(packageArgs, "--app-version", av)
+	}
+
+	buf := &bytes.Buffer{}
+	err := h.helm(buf, packageArgs...)
+	output := strings.TrimSpace(buf.String())
+	if err != nil {
+		return "", errors.Wrapf(err, "package chart into a .tgz archive (%s)", output)
+	}
+
+	fpath, err := extractChartFilename(output, tmp)
+	if err != nil {
+		return "", err
+	}
+
+	return filepath.Join(tmp, fpath), nil
+}
+
 func (h *HelmDeployer) getReleaseInfo(release string) (*bufio.Reader, error) {
 	var releaseInfo bytes.Buffer
 	if err := h.helm(&releaseInfo, "get", release); err != nil {
@@ -225,3 +279,25 @@ func evaluateReleaseName(nameTemplate string) (string, error) {
 
 	return util.ExecuteEnvTemplate(tmpl, nil)
 }
+
+// concretize parses and executes template s with OS environment variables.
+// If s is not a template but a simple string, returns unchanged s.
+func concretize(s string) (string, error) {
+	tmpl, err := util.ParseEnvTemplate(s)
+	if err != nil {
+		return "", errors.Wrap(err, "parsing template")
+	}
+
+	tmpl.Option("missingkey=error")
+	return util.ExecuteEnvTemplate(tmpl, nil)
+}
+
+func extractChartFilename(s, tmp string) (string, error) {
+	s = strings.TrimSpace(s)
+	idx := strings.Index(s, tmp)
+	if idx == -1 {
+		return "", errors.New("cannot locate packaged chart archive")
+	}
+
+	return s[idx+len(tmp):], nil
+}
diff --git a/pkg/skaffold/deploy/helm_test.go b/pkg/skaffold/deploy/helm_test.go
index 29ddce123bf..d71002163d1 100644
--- a/pkg/skaffold/deploy/helm_test.go
+++ b/pkg/skaffold/deploy/helm_test.go
@@ -295,3 +295,29 @@ func TestParseHelmRelease(t *testing.T) {
 		})
 	}
 }
+
+func TestExtractChartFilename(t *testing.T) {
+	testCases := map[string]struct {
+		input     string
+		tmp       string
+		output    string
+		shouldErr bool
+	}{
+		"1": {
+			input:     "Successfully packaged chart and saved it to: /var/folders/gm/rrs_712142x8vymmd7xq7h340000gn/T/foo-1.2.3-dirty.tgz\n",
+			tmp:       "/var/folders/gm/rrs_712142x8vymmd7xq7h340000gn/T/",
+			output:    "foo-1.2.3-dirty.tgz",
+			shouldErr: false,
+		},
+	}
+
+	for name, tc := range testCases {
+		t.Run(name, func(t *testing.T) {
+			out, err := extractChartFilename(tc.input, tc.tmp)
+			testutil.CheckError(t, tc.shouldErr, err)
+			if out != tc.output {
+				t.Errorf("Expected output to be %q but got %q", tc.output, out)
+			}
+		})
+	}
+}
diff --git a/pkg/skaffold/schema/v1alpha2/config.go b/pkg/skaffold/schema/v1alpha2/config.go
index 4ccab6958c5..efcef2607d1 100644
--- a/pkg/skaffold/schema/v1alpha2/config.go
+++ b/pkg/skaffold/schema/v1alpha2/config.go
@@ -137,6 +137,16 @@ type HelmRelease struct {
 	SetValues      map[string]string      `yaml:"setValues"`
 	Wait           bool                   `yaml:"wait"`
 	Overrides      map[string]interface{} `yaml:"overrides"`
+	Packaged       *HelmPackaged          `yaml:"packaged"`
+}
+
+// HelmPackaged represents parameters for packaging helm chart.
+type HelmPackaged struct {
+	// Version sets the version on the chart to this semver version.
+	Version string `yaml:"version"`
+
+	// AppVersion set the appVersion on the chart to this version
+	AppVersion string `yaml:"appVersion"`
 }
 
 // Artifact represents items that need to be built, along with the context in which