diff --git a/.drone.yml b/.drone.yml
index 0982b42..ba84784 100644
--- a/.drone.yml
+++ b/.drone.yml
@@ -16,7 +16,7 @@ pipeline:
   publish:
     image: plugins/docker
     repo: plugins/docker
-    tags: [ "latest", "1.12", "1" ]
+    tags: [ "latest", "1.13", "1" ]
     when:
       branch: master
       event: push
diff --git a/Dockerfile b/Dockerfile
index b71469b..34e8227 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,4 +1,4 @@
-FROM docker:1.12-dind
+FROM docker:1.13-dind
 
 ADD drone-docker /bin/
 ENTRYPOINT ["/usr/local/bin/dockerd-entrypoint.sh", "/bin/drone-docker"]
diff --git a/main.go b/main.go
index f8fe05b..5969295 100644
--- a/main.go
+++ b/main.go
@@ -75,6 +75,11 @@ func main() {
 			Usage:  "docker daemon IPv6 networking",
 			EnvVar: "PLUGIN_IPV6",
 		},
+		cli.BoolFlag{
+			Name:   "daemon.experimental",
+			Usage:  "docker daemon Experimental mode",
+			EnvVar: "PLUGIN_EXPERIMENTAL",
+		},
 		cli.BoolFlag{
 			Name:   "daemon.debug",
 			Usage:  "docker daemon executes in debug mode",
@@ -108,6 +113,11 @@ func main() {
 			Usage:  "build args",
 			EnvVar: "PLUGIN_BUILD_ARGS",
 		},
+		cli.BoolFlag{
+			Name:   "squash",
+			Usage:  "squash the layers at build time",
+			EnvVar: "PLUGIN_SQUASH",
+		},
 		cli.StringFlag{
 			Name:   "repo",
 			Usage:  "docker repository",
@@ -156,6 +166,7 @@ func run(c *cli.Context) error {
 			Context:    c.String("context"),
 			Tags:       c.StringSlice("tags"),
 			Args:       c.StringSlice("args"),
+			Squash:     c.Bool("squash"),
 			Repo:       c.String("repo"),
 		},
 		Daemon: Daemon{
@@ -170,6 +181,7 @@ func run(c *cli.Context) error {
 			Bip:           c.String("daemon.bip"),
 			DNS:           c.StringSlice("daemon.dns"),
 			MTU:           c.String("daemon.mtu"),
+			Experimental:  c.Bool("daemon.experimental"),
 		},
 	}
 
diff --git a/plugin.go b/plugin.go
index fae943c..fbfbc0a 100644
--- a/plugin.go
+++ b/plugin.go
@@ -28,6 +28,7 @@ type (
 		DNS           []string // Docker daemon dns server
 		MTU           string   // Docker daemon mtu setting
 		IPv6          bool     // Docker daemon IPv6 networking
+		Experimental  bool     // Docker daemon enable experimental mode
 	}
 
 	// Login defines Docker login parameters.
@@ -45,6 +46,7 @@ type (
 		Context    string   // Docker build context
 		Tags       []string // Docker build tags
 		Args       []string // Docker build args
+		Squash     bool     // Docker build squash
 		Repo       string   // Docker build repository
 	}
 
@@ -108,6 +110,11 @@ func (p Plugin) Exec() error {
 		fmt.Println("Registry credentials not provided. Guest mode enabled.")
 	}
 
+	if p.Build.Squash && !p.Daemon.Experimental {
+		fmt.Println("Squash build flag is only available when Docker deamon is started with experimental flag. Ignoring...")
+		p.Build.Squash = false
+	}
+
 	// add proxy build args
 	addProxyBuildArgs(&p.Build)
 
@@ -176,19 +183,23 @@ func commandInfo() *exec.Cmd {
 
 // helper function to create the docker build command.
 func commandBuild(build Build) *exec.Cmd {
-	cmd := exec.Command(
-		dockerExe, "build",
+	args := []string {
+		"build",
 		"--pull=true",
 		"--rm=true",
 		"-f", build.Dockerfile,
 		"-t", build.Name,
-	)
-
-	for _, arg := range build.Args {
-		cmd.Args = append(cmd.Args, "--build-arg", arg)
 	}
-	cmd.Args = append(cmd.Args, build.Context)
-	return cmd
+
+	args = append(args, build.Context)
+	if build.Squash {
+		args = append(args, "--squash")
+	}
+	for _, arg := range build.Args {
+		args = append(args, "--build-arg", arg)
+	}
+
+	return exec.Command(dockerExe, args...)
 }
 
 // helper function to add proxy values from the environment
@@ -276,6 +287,9 @@ func commandDaemon(daemon Daemon) *exec.Cmd {
 	if len(daemon.MTU) != 0 {
 		args = append(args, "--mtu", daemon.MTU)
 	}
+	if daemon.Experimental {
+		args = append(args, "--experimental")
+	}
 	return exec.Command(dockerExe, args...)
 }