diff --git a/operator/poolboy_templating.py b/operator/poolboy_templating.py
index a2e3be0..acdfdda 100644
--- a/operator/poolboy_templating.py
+++ b/operator/poolboy_templating.py
@@ -201,7 +201,7 @@ class TemplateVariable(object):
         '''Variable may contain template string referencing other variables.'''
         def __init__(self, value):
             self.value = value
-            self.j2template = j2template_get(value) if '{{' in value else None
+            self.j2template = j2template_get(value) if '{{' in value or '{%' in value else None
 
         def get_typed_value(self):
             if self.j2template:
diff --git a/test/unittest-poolboy_templating.py b/test/unittest-poolboy_templating.py
index cac88ac..937e8f6 100755
--- a/test/unittest-poolboy_templating.py
+++ b/test/unittest-poolboy_templating.py
@@ -623,5 +623,17 @@ def test_45(self):
             True
         )
 
+    def test_46(self):
+        template = "{% if show_a %}a{% endif %}"
+        template_variables = {
+            "show_a": True,
+        }
+        self.assertEqual(
+            recursive_process_template_strings(
+                template, template_variables=template_variables
+            ),
+            "a",
+        )
+
 if __name__ == '__main__':
     unittest.main()