diff --git a/README.md b/README.md
index 9dd2ce7c..9b7a44ee 100644
--- a/README.md
+++ b/README.md
@@ -33,7 +33,7 @@ Each one of them builds on top of the previous example so you can progess from b
  * [es6-fruits](https://github.com/givanse/broccoli-babel-examples/tree/master/es6-fruits) - Execute a single ES6 script.
  * [es6-website](https://github.com/givanse/broccoli-babel-examples/tree/master/es6-website) - Build a simple website.
  * [es6-modules](https://github.com/givanse/broccoli-babel-examples/tree/master/es6-modules) - Handle modules and unit tests.
- 
+
 ## About source map
 
 Currently this plugin only supports inline source map. If you need
@@ -64,3 +64,40 @@ You don't always need this, review which features need the polyfill here: [ES6 F
 var esTranspiler = require('broccoli-babel-transpiler');
 var scriptTree = esTranspiler(inputTree, { browserPolyfill: true });
 ```
+
+## Plugins
+
+Use of custom plugins works similarly to `babel` itself. You would pass a `plugins` array in `options`:
+
+```js
+var esTranspiler = require('broccoli-babel-transpiler');
+var applyFeatureFlags = require('babel-plugin-feature-flags');
+
+var featureFlagPlugin = applyFeatureFlags({
+  import: { module: 'ember-metal/features' },
+  features: {
+    'ember-metal-blah': true
+  }
+});
+
+var scriptTree = esTranspiler(inputTree, {
+  plugins: [
+    featureFlagPlugin
+  ]
+});
+```
+
+### Caching
+
+broccoli-babel-transpiler uses a persistent cache to enable rebuilds to be significantly faster (by avoiding transpilation for files that have not changed).
+However, since a plugin can do many things to affect the transpiled output it must also influence the cache key to ensure transpiled files are rebuilt
+if the plugin changes (or the plugins configuration).
+
+In order to aid plugin developers in this process, broccoli-babel-transpiler will invoke two methods on a plugin so that it can augment the cache key:
+
+* `cacheKey` - This method is used to describe any runtime information that may want to invalidate the cached result of each file transpilation. This is
+  generally only needed when the configuration provided to the plugin is used to modify the AST output by a plugin like `babel-plugin-filter-imports` (module
+  exports to strip from a build), `babel-plugin-feature-flags` (configured features and current status to strip or embed in a final build), or
+  `babel-plugin-htmlbars-inline-precompile` (uses `ember-template-compiler.js` to compile inlined templates).
+* `baseDir` - This method is expected to return the plugins base dir. The provided `baseDir` is used to ensure the cache is invalidated if any of the
+  plugin's files change (including its deps). Each plugin should implement `baseDir` as: `Plugin.prototype.baseDir = function() { return \_\_dirname; };`.
diff --git a/fixtures/plugin-a/index.js b/fixtures/plugin-a/index.js
new file mode 100644
index 00000000..9d717bd7
--- /dev/null
+++ b/fixtures/plugin-a/index.js
@@ -0,0 +1,5 @@
+"use strict";
+
+module.exports = function() {
+  return 'plugin-a goes here but this isnt in plugin-b';
+};
diff --git a/fixtures/plugin-a/package.json b/fixtures/plugin-a/package.json
new file mode 100644
index 00000000..a30f2af2
--- /dev/null
+++ b/fixtures/plugin-a/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "plugin-a",
+  "version": "1.0.0",
+  "main": "index.js"
+}
diff --git a/fixtures/plugin-b/index.js b/fixtures/plugin-b/index.js
new file mode 100644
index 00000000..670c365e
--- /dev/null
+++ b/fixtures/plugin-b/index.js
@@ -0,0 +1,5 @@
+"use strict";
+
+module.exports = function() {
+  return 'plugin-b';
+};
diff --git a/fixtures/plugin-b/package.json b/fixtures/plugin-b/package.json
new file mode 100644
index 00000000..6fb018e6
--- /dev/null
+++ b/fixtures/plugin-b/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "plugin-b",
+  "version": "1.0.0",
+  "main": "index.js"
+}
diff --git a/index.js b/index.js
index 3c25f6cd..aeb1a7b3 100644
--- a/index.js
+++ b/index.js
@@ -9,6 +9,7 @@ var stringify  = require('json-stable-stringify');
 var mergeTrees = require('broccoli-merge-trees');
 var funnel     = require('broccoli-funnel');
 var crypto     = require('crypto');
+var hashForDep = require('hash-for-dep');
 
 function getExtensionsRegex(extensions) {
   return extensions.map(function(extension) {
@@ -34,6 +35,10 @@ function Babel(inputTree, _options) {
   Filter.call(this, inputTree, options);
 
   delete options.persist;
+
+  this.console = options.console || console;
+  delete options.console;
+
   this.options = options;
   this.moduleMetadata = {};
   this.extensions = this.options.filterExtensions || ['js'];
@@ -111,6 +116,66 @@ Babel.prototype.optionsHash = function() {
       hash[key] = (typeof value === 'function') ? (value + '') : value;
     }
 
+    if (options.plugins) {
+      hash.plugins = [];
+
+      var cacheableItems = options.plugins.slice();
+
+      for (var i = 0; i < cacheableItems.length; i++) {
+        var item = cacheableItems[i];
+
+        var type = typeof item;
+        var augmentsCacheKey = false;
+        var providesBaseDir = false;
+        var requiresBaseDir = true;
+
+        if (type === 'function') {
+          augmentsCacheKey = typeof item.cacheKey === 'function';
+          providesBaseDir = typeof item.baseDir === 'function';
+
+          if (augmentsCacheKey) {
+            hash.plugins.push(item.cacheKey());
+          }
+
+          if (providesBaseDir) {
+            var depHash = hashForDep(item.baseDir());
+
+            hash.plugins.push(depHash);
+          }
+
+          if (!providesBaseDir && requiresBaseDir){
+            // prevent caching completely if the plugin doesn't provide baseDir
+            // we cannot ensure that we aren't causing invalid caching pain...
+            this.console.warn('broccoli-babel-transpiler is opting out of caching due to a plugin that does not provide a caching strategy: `' + item + '`.');
+            hash.plugins.push((new Date).getTime() + '|' + Math.random());
+            break;
+          }
+        } else if (Array.isArray(item)) {
+          item.forEach(function(part) {
+            cacheableItems.push(part);
+          });
+
+          continue;
+        } else if (type !== 'object' || item === null) {
+          // handle native strings, numbers, or null (which can JSON.stringify properly)
+          hash.plugins.push(item);
+          continue;
+        } else if (type === 'object') {
+          // itereate all keys in the item and push them into the cache
+          var keys = Object.keys(item);
+          keys.forEach(function(key) {
+            cacheableItems.push(key);
+            cacheableItems.push(item[key]);
+          });
+          continue;
+        } else {
+          this.console.warn('broccoli-babel-transpiler is opting out of caching due to an non-cacheable item: `' + item + '` (' + type + ').');
+          hash.plugins.push((new Date).getTime() + '|' + Math.random());
+          break;
+        }
+      }
+    }
+
     this._optionsHash = crypto.createHash('md5').update(stringify(hash), 'utf8').digest('hex');
   }
 
diff --git a/package.json b/package.json
index 0270b7f4..746cf7a2 100644
--- a/package.json
+++ b/package.json
@@ -32,10 +32,11 @@
   "homepage": "https://github.com/babel/broccoli-babel-transpiler",
   "dependencies": {
     "babel-core": "^6.0.0",
-    "broccoli-persistent-filter": "^1.0.1",
     "broccoli-funnel": "^1.0.0",
     "broccoli-merge-trees": "^1.0.0",
+    "broccoli-persistent-filter": "^1.0.1",
     "clone": "^1.0.2",
+    "hash-for-dep": "^1.0.2",
     "json-stable-stringify": "^1.0.0"
   },
   "devDependencies": {
diff --git a/test.js b/test.js
index e9b259b8..dc625610 100644
--- a/test.js
+++ b/test.js
@@ -416,12 +416,19 @@ describe('consume broccoli-babel-transpiler options', function() {
 });
 
 describe('when options change', function() {
-  var originalHash, options;
+  var originalHash, options, fakeConsole, consoleMessages;
 
   beforeEach(function() {
+    fakeConsole = {
+      warn: function(message) { consoleMessages.push(message); }
+    };
+    consoleMessages = [];
+
     options = {
       bar: 1,
-      baz: function() {}
+      baz: function() {},
+      console: fakeConsole,
+      plugins: []
     };
 
     var babel = new Babel('foo', options);
@@ -431,13 +438,150 @@ describe('when options change', function() {
 
   it('clears cache for added properties', function() {
     options.foo = 1;
+    options.console = fakeConsole;
+    var babelNew = new Babel('foo', options);
+
+    expect(babelNew.optionsHash()).to.not.eql(originalHash);
+  });
+
+  it('includes object plugins cacheKey result in hash', function() {
+    options.plugins = [
+      { cacheKey: function() { return 'hi!'; }}
+    ];
+    options.console = fakeConsole;
+    var babelNew = new Babel('foo', options);
+
+    expect(babelNew.optionsHash()).to.not.eql(originalHash);
+  });
+
+  it('includes function plugins cacheKey result in hash', function() {
+    function fakePlugin() {}
+    fakePlugin.cacheKey = function() { return 'Hi!'; };
+
+    options.plugins = [
+      fakePlugin
+    ];
+    options.console = fakeConsole;
+    var babelNew = new Babel('foo', options);
+
+    expect(babelNew.optionsHash()).to.not.eql(originalHash);
+  });
+
+  it('includes string plugins in hash calculation', function() {
+    options.plugins = [
+      'foo'
+    ];
+    options.console = fakeConsole;
     var babelNew = new Babel('foo', options);
 
     expect(babelNew.optionsHash()).to.not.eql(originalHash);
   });
 
+  it('includes plugins specified with options in hash calculation when cacheable', function() {
+    var pluginOptions = { foo: 'bar' };
+    options.plugins = [
+      ['foo', pluginOptions]
+    ];
+    options.console = fakeConsole;
+    var first = new Babel('foo', options);
+    var firstOptions = first.optionsHash();
+
+    options.console = fakeConsole;
+    var second = new Babel('foo', options);
+    var secondOptions = second.optionsHash();
+    expect(firstOptions).to.eql(secondOptions);
+
+    pluginOptions.qux = 'huzzah';
+    options.console = fakeConsole;
+    var third = new Babel('foo', options);
+    var thirdOptions = third.optionsHash();
+
+    expect(firstOptions).to.not.eql(thirdOptions);
+  });
+
+  it('invalidates plugins specified with options when not-cacheable', function() {
+    function thing() { }
+    var pluginOptions = { foo: 'bar', thing: thing };
+    options.plugins = [
+      ['foo', pluginOptions]
+    ];
+    options.console = fakeConsole;
+    var first = new Babel('foo', options);
+    var firstOptions = first.optionsHash();
+
+    options.console = fakeConsole;
+    var second = new Babel('foo', options);
+    var secondOptions = second.optionsHash();
+    expect(firstOptions).to.not.eql(secondOptions);
+  });
+
+  it('plugins specified with options can have functions with `baseDir`', function() {
+    var dir = path.join(inputPath, 'plugin-a');
+    function thing() { }
+    thing.baseDir = function() { return dir; };
+    var pluginOptions = { foo: 'bar', thing: thing };
+    options.plugins = [
+      ['foo', pluginOptions]
+    ];
+
+    options.console = fakeConsole;
+    var first = new Babel('foo', options);
+    var firstOptions = first.optionsHash();
+
+    options.console = fakeConsole;
+    var second = new Babel('foo', options);
+    var secondOptions = second.optionsHash();
+    expect(firstOptions).to.eql(secondOptions);
+
+    dir = path.join(inputPath, 'plugin-b');
+    options.console = fakeConsole;
+    var third = new Babel('foo', options);
+    var thirdOptions = third.optionsHash();
+
+    expect(firstOptions).to.not.eql(thirdOptions);
+  });
+
+  it('a plugins `baseDir` method is used for hash generation', function() {
+    var dir = path.join(inputPath, 'plugin-a');
+
+    function plugin() {}
+    plugin.baseDir = function() {
+      return dir;
+    };
+    options.plugins = [ plugin ];
+
+    options.console = fakeConsole;
+    var first = new Babel('foo', options);
+    var firstOptions = first.optionsHash();
+
+    dir = path.join(inputPath, 'plugin-b');
+    options.console = fakeConsole;
+    var second = new Babel('foo', options);
+    var secondOptions = second.optionsHash();
+
+    expect(firstOptions).to.not.eql(secondOptions);
+  });
+
+  it('a plugin without a baseDir invalidates the cache every time', function() {
+    function plugin() {}
+    plugin.toString = function() { return '<derp plugin>'; };
+    options.plugins = [ plugin ];
+
+    options.console = fakeConsole;
+    var babel1 = new Babel('foo', options);
+    options.console = fakeConsole;
+    var babel2 = new Babel('foo', options);
+
+    expect(babel1.optionsHash()).to.not.eql(babel2.optionsHash());
+    expect(consoleMessages).to.eql([
+      'broccoli-babel-transpiler is opting out of caching due to a plugin that does not provide a caching strategy: `<derp plugin>`.',
+      'broccoli-babel-transpiler is opting out of caching due to a plugin that does not provide a caching strategy: `<derp plugin>`.'
+    ]);
+  });
+
   it('clears cache for updated properties', function() {
     options.bar = 2;
+    options.console = fakeConsole;
     var babelNew = new Babel('foo', options);
 
     expect(babelNew.optionsHash()).to.not.eql(originalHash);
@@ -445,6 +589,7 @@ describe('when options change', function() {
 
   it('clears cache for added methods', function() {
     options.foo = function() {};
+    options.console = fakeConsole;
     var babelNew = new Babel('foo', options);
 
     expect(babelNew.optionsHash()).to.not.eql(originalHash);
@@ -452,8 +597,9 @@ describe('when options change', function() {
 
   it('clears cache for updated methods', function() {
     options.baz = function() { return 1; };
+    options.console = fakeConsole;
     var babelNew = new Babel('foo', options);
 
     expect(babelNew.optionsHash()).to.not.eql(originalHash);
-  });   
+  });
 });