diff --git a/stable/kiam/Chart.yaml b/stable/kiam/Chart.yaml
index 457baf7498..0e7309457f 100644
--- a/stable/kiam/Chart.yaml
+++ b/stable/kiam/Chart.yaml
@@ -1,5 +1,5 @@
 name: kiam
-version: 1.1.0
+version: 1.2.0
 appVersion: 2.8
 description: Integrate AWS IAM with Kubernetes
 keywords:
diff --git a/stable/kiam/README.md b/stable/kiam/README.md
index a444c90be4..fb97382471 100644
--- a/stable/kiam/README.md
+++ b/stable/kiam/README.md
@@ -124,6 +124,7 @@ Parameter | Description | Default
 `server.tlsFiles.key` | Base64 encoded strings for the server's private key | `null`
 `server.tolerations` | Tolerations to be applied to server pods | `[]`
 `server.updateStrategy` | Strategy for server DaemonSet updates (requires Kubernetes 1.6+) | `OnDelete`
+`server.useHostNetwork` | If true, use hostNetwork on server to bypass agent iptable rules | `false`
 `rbac.create` | If `true`, create & use RBAC resources | `true`
 `serviceAccounts.agent.create` | If true, create the agent service account | `true`
 `serviceAccounts.agent.name` | Name of the agent service account to use or create | `{{ kiam.agent.fullname }}`
diff --git a/stable/kiam/templates/server-daemonset.yaml b/stable/kiam/templates/server-daemonset.yaml
index d8fa495122..2e6c8096d0 100644
--- a/stable/kiam/templates/server-daemonset.yaml
+++ b/stable/kiam/templates/server-daemonset.yaml
@@ -30,6 +30,7 @@ spec:
       {{- end }}
     spec:
       serviceAccountName: {{ template "kiam.serviceAccountName.server" . }}
+      hostNetwork: {{ .Values.server.useHostNetwork }}
     {{- if .Values.server.nodeSelector }}
       nodeSelector:
 {{ toYaml .Values.server.nodeSelector | indent 8 }}
diff --git a/stable/kiam/values.yaml b/stable/kiam/values.yaml
index 3d5f091658..07c1cfc816 100644
--- a/stable/kiam/values.yaml
+++ b/stable/kiam/values.yaml
@@ -179,6 +179,9 @@ server:
   ## Session duration for STS tokens
   ##
   sessionDuration: 15m
+  ## Use hostNetwork for server
+  ## Set this to true when running the servers on the same nodes as the agents
+  useHostNetwork: false
 
 rbac:
   # Specifies whether RBAC resources should be created