diff --git a/website/source/docs/providers/template/r/dir.html.md b/website/source/docs/providers/template/r/dir.html.md
index 7e0c03067..9ce700826 100644
--- a/website/source/docs/providers/template/r/dir.html.md
+++ b/website/source/docs/providers/template/r/dir.html.md
@@ -3,38 +3,87 @@ layout: "template"
 page_title: "Template: template_dir"
 sidebar_current: "docs-template-resource-dir"
 description: |-
-  Renders templates from a directory.
+  Renders a directory of templates.
 ---
 
 # template_dir
 
-Renders templates from a directory.
+Renders a directory containing templates into a separate directory of
+corresponding rendered files.
+
+`template_dir` is similar to [`template_file`](../d/file.html) but it walks
+a given source directory and treats every file it encounters as a template,
+rendering it to a corresponding file in the destination directory.
+
+~> **Note** When working with local files, Terraform will detect the resource
+as having been deleted each time a configuration is applied on a new machine
+where the destination dir is not present and will generate a diff to create
+it. This may cause "noise" in diffs in environments where configurations are
+routinely applied by many different users or within automation systems.
 
 ## Example Usage
+
+The following example shows how one might use this resource to produce a
+directory of configuration files to upload to a compute instance, using
+Amazon EC2 as a placeholder.
+
 ```hcl
-data "template_directory" "init" {
-  source_dir      = "${path.cwd}/templates"
-  destination_dir = "${path.cwd}/templates.generated"
+resource "template_dir" "config" {
+  source_dir      = "${path.module}/instance_config_templates"
+  destination_dir = "${path.cwd}/instance_config"
   
   vars {
-    consul_address = "${aws_instance.consul.private_ip}"
+    consul_addr = "${var.consul_addr}"
   }
 }
+
+resource "aws_instance" "server" {
+  ami           = "${var.server_ami}"
+  instance_type = "t2.micro"
+
+  connection {
+    # ...connection configuration...
+  }
+
+  provisioner "file" {
+    # Referencing the template_dir resource ensures that it will be
+    # created or updated before this aws_instance resource is provisioned.
+    source      = "${template_dir.config.destination_dir}"
+    destination = "/etc/myapp"
+  }
+}
+
+variable "consul_addr" {}
+
+variable "server_ami" {}
 ```
 
 ## Argument Reference
 
 The following arguments are supported:
 
-* `source_path` - (Required) Path to the directory where the files to template reside.
+* `source_dir` - (Required) Path to the directory where the files to template reside.
 
-* `destination_path` - (Required) Path to the directory where the templated files will be written.
+* `destination_dir` - (Required) Path to the directory where the templated files will be written.
 
 * `vars` - (Optional) Variables for interpolation within the template. Note
   that variables must all be primitives. Direct references to lists or maps
   will cause a validation error.
 
-NOTE: Any required parent directories are created automatically. Additionally, any external modification to either the files in the source or destination directories will trigger the resource to be re-created.
+Any required parent directories of `destination_dir` will be created
+automatically, and any pre-existing file or directory at that location will
+be deleted before template rendering begins.
+
+After rendering this resource remembers the content of both the source and
+destination directories in the Terraform state, and will plan to recreate the
+output directory if any changes are detected during the plan phase.
+
+Note that it is _not_ safe to use the `file` interpolation function to read
+files create by this resource, since that function can be evaluated before the
+destination directory has been created or updated. It *is* safe to use the
+generated files with resources that directly take filenames as arguments,
+as long as the path is constructed using the `destination_dir` attribute
+to create a dependency relationship with the `template_dir` resource.
 
 ## Template Syntax
 
@@ -44,7 +93,7 @@ but you only have access to the variables defined in the `vars` section.
 
 To access interpolations that are normally available to Terraform
 configuration (such as other variables, resource attributes, module
-outputs, etc.) you'll have to expose them via `vars` as shown below:
+outputs, etc.) you can expose them via `vars` as shown below:
 
 ```hcl
 resource "template_dir" "init" {
@@ -55,4 +104,13 @@ resource "template_dir" "init" {
     attr = "${aws_instance.foo.private_ip}"
   }
 }
-```
\ No newline at end of file
+```
+
+## Attributes
+
+This resource exports the following attributes:
+
+* `destination_dir` - The destination directory given in configuration.
+  Interpolate this attribute into other resource configurations to create
+  a dependency to ensure that the destination directory is populated before
+  another resource attempts to read it.