diff --git a/index.js b/index.js
index b48abd4..17a670d 100644
--- a/index.js
+++ b/index.js
@@ -16,31 +16,41 @@ HtmlWebpackPlugin.prototype.apply = function(compiler) {
     templateParams.htmlWebpackPlugin.assets = self.htmlWebpackPluginAssets(compiler, webpackStatsJson);
     templateParams.htmlWebpackPlugin.options = self.options;
 
-    var templateFile = self.options.template;
-    if (!templateFile) {
-      templateFile = path.join(__dirname, 'default_index.html');
-    }
+    var outputFilename = self.options.filename || 'index.html';
 
-    fs.readFile(templateFile, 'utf8', function(err, htmlTemplateContent) {
-      if (err) {
-        compiler.errors.push(new Error('HtmlWebpackPlugin: Unable to read HTML template "' + templateFile + '"'));
-      } else {
-        var html = tmpl(htmlTemplateContent, templateParams);
-        var outputFilename = self.options.filename || 'index.html';
-        compiler.assets[outputFilename] = {
-          source: function() {
-            return html;
-          },
-          size: function() {
-            return html.length;
-          }
-        };
-      }
+    if (self.options.templateContent) {
+      self.emitHtml(compiler, self.options.templateContent, templateParams, outputFilename);
       callback();
-    });
+    } else {
+      var templateFile = self.options.template;
+      if (!templateFile) {
+        templateFile = path.join(__dirname, 'default_index.html');
+      }
+
+      fs.readFile(templateFile, 'utf8', function(err, htmlTemplateContent) {
+        if (err) {
+          compiler.errors.push(new Error('HtmlWebpackPlugin: Unable to read HTML template "' + templateFile + '"'));
+        } else {
+          self.emitHtml(compiler, htmlTemplateContent, templateParams, outputFilename);
+        }
+        callback();
+      });
+    }
   });
 };
 
+HtmlWebpackPlugin.prototype.emitHtml = function(compiler, htmlTemplateContent, templateParams, outputFilename) {
+  var html = tmpl(htmlTemplateContent, templateParams);
+  compiler.assets[outputFilename] = {
+    source: function() {
+      return html;
+    },
+    size: function() {
+      return html.length;
+    }
+  };
+};
+
 HtmlWebpackPlugin.prototype.htmlWebpackPluginAssets = function(compiler, webpackStatsJson) {
   var assets = {};
   for (var chunk in webpackStatsJson.assetsByChunkName) {
diff --git a/spec/HtmlWebpackPluginSpec.js b/spec/HtmlWebpackPluginSpec.js
index b1f15f1..72619d8 100644
--- a/spec/HtmlWebpackPluginSpec.js
+++ b/spec/HtmlWebpackPluginSpec.js
@@ -55,7 +55,7 @@ describe('HtmlWebpackPlugin', function() {
     }, ['<script src="util_bundle.js"', '<script src="app_bundle.js"'], null, done);
   });
 
-  it('allows you to specify your own HTML template', function(done) {
+  it('allows you to specify your own HTML template file', function(done) {
     testHtmlPlugin({
       entry: {
         app: path.join(__dirname, 'fixtures/index.js')
@@ -69,6 +69,21 @@ describe('HtmlWebpackPlugin', function() {
     ['<script src="app_bundle.js"', 'Some unique text'], null, done);
   });
 
+  it('allows you to specify your own HTML template string', function(done) {
+    testHtmlPlugin({
+      entry: {app: path.join(__dirname, 'fixtures/index.js')},
+      output: {
+        path: OUTPUT_DIR,
+        filename: 'app_bundle.js'
+      },
+      plugins: [new HtmlWebpackPlugin({
+        templateContent: fs.readFileSync(path.join(__dirname, 'fixtures/test.html'), 'utf8')
+      })]
+    },
+    ['<script src="app_bundle.js"'], null, done);
+  });
+
+
   it('works with source maps', function(done) {
     testHtmlPlugin({
       devtool: 'sourcemap',