diff --git a/ansible/roles/cinder/tasks/external_ceph.yml b/ansible/roles/cinder/tasks/external_ceph.yml
index 03a7a7fe8d..c4da309d28 100644
--- a/ansible/roles/cinder/tasks/external_ceph.yml
+++ b/ansible/roles/cinder/tasks/external_ceph.yml
@@ -20,7 +20,7 @@
     - Restart {{ item.key }} container
 
 - name: Copy over Ceph keyring files for cinder-volume
-  copy:
+  template:
     src: "{{ node_custom_config }}/cinder/cinder-volume/{{ ceph_cinder_keyring }}"
     dest: "{{ node_config_directory }}/cinder-volume/"
     mode: "0660"
@@ -33,7 +33,7 @@
     - Restart cinder-volume container
 
 - name: Copy over Ceph keyring files for cinder-backup
-  copy:
+  template:
     src: "{{ node_custom_config }}/cinder/{{ item }}"
     dest: "{{ node_config_directory }}/cinder-backup/"
     mode: "0660"
diff --git a/ansible/roles/glance/tasks/external_ceph.yml b/ansible/roles/glance/tasks/external_ceph.yml
index 8f35332259..a37e896888 100644
--- a/ansible/roles/glance/tasks/external_ceph.yml
+++ b/ansible/roles/glance/tasks/external_ceph.yml
@@ -10,7 +10,7 @@
     - Restart glance-api container
 
 - name: Copy over ceph Glance keyring
-  copy:
+  template:
     src: "{{ node_custom_config }}/glance/{{ ceph_glance_keyring }}"
     dest: "{{ node_config_directory }}/glance-api/{{ ceph_glance_keyring }}"
     mode: "0660"
diff --git a/ansible/roles/gnocchi/tasks/external_ceph.yml b/ansible/roles/gnocchi/tasks/external_ceph.yml
index 01df7b167b..1f36b2483c 100644
--- a/ansible/roles/gnocchi/tasks/external_ceph.yml
+++ b/ansible/roles/gnocchi/tasks/external_ceph.yml
@@ -13,7 +13,7 @@
     - Restart {{ item.key }} container
 
 - name: Copy over ceph gnocchi keyring
-  copy:
+  template:
     src: "{{ node_custom_config }}/gnocchi/{{ ceph_gnocchi_keyring }}"
     dest: "{{ node_config_directory }}/{{ item.key }}/{{ ceph_gnocchi_keyring }}"
     mode: "0660"
diff --git a/ansible/roles/manila/tasks/external_ceph.yml b/ansible/roles/manila/tasks/external_ceph.yml
index c6f3bac771..7eedc5d3fa 100644
--- a/ansible/roles/manila/tasks/external_ceph.yml
+++ b/ansible/roles/manila/tasks/external_ceph.yml
@@ -11,7 +11,7 @@
     - Restart manila-share container
 
 - name: Copy over Ceph keyring files for manila
-  copy:
+  template:
     src: "{{ node_custom_config }}/manila/{{ ceph_manila_keyring }}"
     dest: "{{ node_config_directory }}/manila-share/{{ ceph_manila_keyring }}"
     mode: "0600"
diff --git a/ansible/roles/nova-cell/tasks/external_ceph.yml b/ansible/roles/nova-cell/tasks/external_ceph.yml
index 302880e4ec..d283f5547a 100644
--- a/ansible/roles/nova-cell/tasks/external_ceph.yml
+++ b/ansible/roles/nova-cell/tasks/external_ceph.yml
@@ -32,7 +32,7 @@
     - external_ceph_cephx_enabled | bool
 
 - name: Copy over ceph nova keyring file
-  copy:
+  template:
     src: "{{ nova_cephx_keyring_file.stat.path }}"
     dest: "{{ node_config_directory }}/{{ item }}/"
     mode: "0660"
@@ -47,7 +47,7 @@
     - Restart {{ item }} container
 
 - name: Copy over ceph cinder keyring file
-  copy:
+  template:
     src: "{{ cinder_cephx_keyring_file.stat.path }}"
     dest: "{{ node_config_directory }}/{{ item }}/"
     mode: "0660"
@@ -98,7 +98,7 @@
 - name: Extract nova key from file
   set_fact:
     nova_cephx_raw_key:
-      "{{ lookup('file', nova_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
+      "{{ lookup('template', nova_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
   changed_when: false
   run_once: True
   when:
@@ -108,7 +108,7 @@
 - name: Extract cinder key from file
   set_fact:
     cinder_cephx_raw_key:
-      "{{ lookup('file', cinder_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
+      "{{ lookup('template', cinder_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
   changed_when: false
   run_once: True
   when:
diff --git a/releasenotes/notes/external-ceph-variables-123093dceb1049b7.yaml b/releasenotes/notes/external-ceph-variables-123093dceb1049b7.yaml
new file mode 100644
index 0000000000..61b82c31b0
--- /dev/null
+++ b/releasenotes/notes/external-ceph-variables-123093dceb1049b7.yaml
@@ -0,0 +1,8 @@
+---
+features:
+  - |
+    Allows the use of variables in ceph conf and keyring files.
+    Consistently use template instead of copy. This has the added
+    advantage of allowing variables inside ceph conf files and keyrings.
+    Including but not limited to ansible lookup expressions.
+    `LP#1959565 <https://launchpad.net/bugs/1959565>`__