diff --git a/pom.xml b/pom.xml
index 2325f9fb4..782bf3a59 100644
--- a/pom.xml
+++ b/pom.xml
@@ -34,7 +34,7 @@ THE SOFTWARE.
     </parent>
 
     <artifactId>ec2</artifactId>
-    <version>1.41</version>
+    <version>1.41-SNAPSHOT</version>
     <packaging>hpi</packaging>
     <name>Amazon EC2 plugin</name>
     <url>http://wiki.jenkins-ci.org/display/JENKINS/Amazon+EC2+Plugin</url>
diff --git a/src/main/java/hudson/plugins/ec2/AMITypeData.java b/src/main/java/hudson/plugins/ec2/AMITypeData.java
index 6cb3b623f..a47b85588 100644
--- a/src/main/java/hudson/plugins/ec2/AMITypeData.java
+++ b/src/main/java/hudson/plugins/ec2/AMITypeData.java
@@ -6,4 +6,6 @@ public abstract class AMITypeData extends AbstractDescribableImpl<AMITypeData> {
     public abstract boolean isWindows();
 
     public abstract boolean isUnix();
+
+    public abstract String getProductType();
 }
diff --git a/src/main/java/hudson/plugins/ec2/EC2Cloud.java b/src/main/java/hudson/plugins/ec2/EC2Cloud.java
index 39c849df1..f8de81642 100644
--- a/src/main/java/hudson/plugins/ec2/EC2Cloud.java
+++ b/src/main/java/hudson/plugins/ec2/EC2Cloud.java
@@ -18,6 +18,7 @@
  */
 package hudson.plugins.ec2;
 
+import static java.util.stream.Collectors.toList;
 import static javax.servlet.http.HttpServletResponse.SC_BAD_REQUEST;
 import static javax.servlet.http.HttpServletResponse.SC_INTERNAL_SERVER_ERROR;
 import com.amazonaws.ClientConfiguration;
@@ -36,6 +37,7 @@
 import com.cloudbees.plugins.credentials.SystemCredentialsProvider;
 import com.cloudbees.plugins.credentials.common.StandardListBoxModel;
 import com.cloudbees.plugins.credentials.domains.Domain;
+import com.google.common.collect.Ordering;
 import edu.umd.cs.findbugs.annotations.CheckForNull;
 import edu.umd.cs.findbugs.annotations.Nullable;
 import hudson.ProxyConfiguration;
@@ -54,24 +56,18 @@
 import java.io.PrintWriter;
 import java.io.StringReader;
 import java.io.StringWriter;
+import java.math.BigDecimal;
 import java.net.InetSocketAddress;
 import java.net.MalformedURLException;
 import java.net.Proxy;
 import java.net.URL;
 import java.text.DateFormat;
 import java.text.SimpleDateFormat;
-import java.util.ArrayList;
-import java.util.Collection;
-import java.util.Collections;
-import java.util.Date;
-import java.util.EnumSet;
-import java.util.HashSet;
-import java.util.List;
-import java.util.Set;
-import java.util.HashMap;
-import java.util.UUID;
+import java.util.*;
 import java.util.concurrent.Callable;
 import java.util.concurrent.TimeUnit;
+import java.util.function.Predicate;
+import java.util.Comparator;
 import java.util.logging.Level;
 import java.util.logging.LogRecord;
 import java.util.logging.Logger;
@@ -305,18 +301,80 @@ public SlaveTemplate getTemplate(String template) {
      * Gets {@link SlaveTemplate} that has the matching {@link Label}.
      */
     public SlaveTemplate getTemplate(Label label) {
-        for (SlaveTemplate t : templates) {
+        Predicate<SlaveTemplate> applicableForLabel = t -> {
             if (t.getMode() == Node.Mode.NORMAL) {
                 if (label == null || label.matches(t.getLabelSet())) {
-                    return t;
+                    return true;
                 }
             } else if (t.getMode() == Node.Mode.EXCLUSIVE) {
                 if (label != null && label.matches(t.getLabelSet())) {
-                    return t;
+                    return true;
                 }
             }
+            return false;
+        };
+
+        List<SlaveTemplate> applicableTemplates = templates.stream()
+                .filter(applicableForLabel)
+                .collect(toList());
+
+        if (applicableTemplates.isEmpty()) {
+            return null;
+        } else if (applicableTemplates.size() == 1) {
+            return applicableTemplates.get(0);
+        } else {
+            LOGGER.log(Level.INFO, "Found multiple applicable templates for label '" + label + "'. Selecting the cheapest.");
+            return selectCheapest(applicableTemplates);
         }
-        return null;
+    }
+
+    private SlaveTemplate selectCheapest(Collection<? extends SlaveTemplate> templates) {
+        class TemplatePrice {
+            private final SlaveTemplate template;
+            private final BigDecimal price;
+
+            private TemplatePrice(SlaveTemplate template, BigDecimal price) {
+                this.template = template;
+                this.price = price;
+            }
+        }
+
+        Ordering<TemplatePrice> priceLowestFirst = Ordering.natural().onResultOf(t -> t.price);
+
+        return templates.stream()
+                .map(template -> new TemplatePrice(template, getSpotInstancePrice(template)))
+                .sorted(priceLowestFirst)
+                .peek(tp -> LOGGER.log(Level.INFO, "Price for template " + tp.template + " of instance type " + tp.template.type + " in zone " + tp.template.zone + " is " + tp.price))
+                .findFirst()
+                .map(tp -> tp.template)
+                .orElse(null);
+    }
+
+    private BigDecimal getTemplatePrice(SlaveTemplate template) {
+        if (template.spotConfig != null) {
+            return getSpotInstancePrice(template);
+        } else {
+            return getEc2InstancePrice(template);
+        }
+    }
+
+    private BigDecimal getEc2InstancePrice(SlaveTemplate template) {
+        // TODO This is hard because the API for this is hard. For now just return 100 and call it a day.
+        return new BigDecimal(100);
+    }
+
+    private BigDecimal getSpotInstancePrice(SlaveTemplate template) {
+        DescribeSpotPriceHistoryRequest request = new DescribeSpotPriceHistoryRequest();
+        request.setAvailabilityZone(template.zone);
+        request.setInstanceTypes(Collections.singletonList(template.type.toString()));
+        request.setMaxResults(1);
+        request.setProductDescriptions(Collections.singletonList(template.amiType.getProductType()));
+
+        AmazonEC2 ec2 = connect();
+        DescribeSpotPriceHistoryResult response = ec2.describeSpotPriceHistory(request);
+
+        // We asked for one so we'll get one
+        return new BigDecimal(response.getSpotPriceHistory().get(0).getSpotPrice());
     }
 
     /**
diff --git a/src/main/java/hudson/plugins/ec2/UnixData.java b/src/main/java/hudson/plugins/ec2/UnixData.java
index f2a63e9be..2099f68af 100644
--- a/src/main/java/hudson/plugins/ec2/UnixData.java
+++ b/src/main/java/hudson/plugins/ec2/UnixData.java
@@ -93,6 +93,11 @@ public String getSshPort() {
         return sshPort == null || sshPort.isEmpty() ? "22" : sshPort;
     }
 
+    @Override
+    public String getProductType() {
+        return "Linux/UNIX";
+    }
+
     @Override
     public int hashCode() {
         final int prime = 31;
diff --git a/src/main/java/hudson/plugins/ec2/WindowsData.java b/src/main/java/hudson/plugins/ec2/WindowsData.java
index b18682355..94bd9f417 100644
--- a/src/main/java/hudson/plugins/ec2/WindowsData.java
+++ b/src/main/java/hudson/plugins/ec2/WindowsData.java
@@ -59,6 +59,11 @@ public String getDisplayName() {
         }
     }
 
+    @Override
+    public String getProductType() {
+        return "Windows";
+    }
+
     @Override
     public int hashCode() {
         final int prime = 31;
diff --git a/src/test/java/hudson/plugins/ec2/AmazonEC2CloudTest.java b/src/test/java/hudson/plugins/ec2/AmazonEC2CloudTest.java
index 64097e213..988e456fe 100644
--- a/src/test/java/hudson/plugins/ec2/AmazonEC2CloudTest.java
+++ b/src/test/java/hudson/plugins/ec2/AmazonEC2CloudTest.java
@@ -23,13 +23,26 @@
  */
 package hudson.plugins.ec2;
 
+import com.amazonaws.services.ec2.AmazonEC2;
+import com.amazonaws.services.ec2.model.DescribeSpotPriceHistoryRequest;
+import com.amazonaws.services.ec2.model.DescribeSpotPriceHistoryResult;
+import com.amazonaws.services.ec2.model.InstanceType;
+import com.amazonaws.services.ec2.model.SpotPrice;
+import hudson.model.Label;
+import hudson.model.Node;
 import hudson.slaves.Cloud;
-import org.junit.After;
-import org.junit.Before;
-import org.junit.Rule;
+import org.junit.*;
 import org.jvnet.hudson.test.JenkinsRule;
+import org.mockito.Mockito;
 
+import java.util.ArrayList;
 import java.util.Collections;
+import java.util.List;
+
+import static org.junit.Assert.assertEquals;
+import static org.mockito.Matchers.any;
+import static org.mockito.Mockito.doReturn;
+import static org.mockito.Mockito.spy;
 
 /**
  * @author Kohsuke Kawaguchi
@@ -52,10 +65,67 @@ public void tearDown() throws Exception {
     @After
     public void testConfigRoundtrip() throws Exception {
         AmazonEC2Cloud orig = new AmazonEC2Cloud("us-east-1", true, "abc", "us-east-1", "ghi", "3", Collections.<SlaveTemplate> emptyList(),"roleArn", "roleSessionName");
-        r.jenkins.clouds.add(orig);
+	r.jenkins.clouds.add(orig);
         r.submit(r.createWebClient().goTo("configure").getFormByName("config"));
 
         Cloud actual = r.jenkins.clouds.iterator().next();
         r.assertEqualBeans(orig, actual, "cloudName,region,useInstanceProfileForCredentials,accessId,privateKey,instanceCap,roleArn,roleSessionName");
     }
+
+    @Test
+    public void testCheapestSpotInstanceUsed() {
+
+        final String expensiveZone = "eu-west-1a";
+        final String middleZone = "eu-west-1b";
+        final String cheapZone = "eu-west-1c";
+
+        final String label = "myLabel";
+        SlaveTemplate expensiveSpot = new SlaveTemplate("1", expensiveZone, new SpotConfiguration("0.33"), "default", "foo", InstanceType.M1Large, false, label, Node.Mode.NORMAL, "", "bar", "bbb", "aaa", "10", "fff", null, "-Xmx1g", false, "subnet 456", null, null, false, null, "iamInstanceProfile", false, false, false, null, true, "", false, true);
+        SlaveTemplate cheapestSpot = new SlaveTemplate("2", cheapZone, new SpotConfiguration("0.33"), "default", "foo", InstanceType.M1Large, false, label, Node.Mode.NORMAL, "", "bar", "bbb", "aaa", "10", "fff", null, "-Xmx1g", false, "subnet 456", null, null, false, null, "iamInstanceProfile", false, false, false, null, true, "", false, true);
+        SlaveTemplate standard = new SlaveTemplate("3", "eu-west-1b", null, "default", "foo", InstanceType.M1Large, false, label, Node.Mode.NORMAL, "", "bar", "bbb", "aaa", "10", "fff", null, "-Xmx1g", false, "subnet 456", null, null, false, null, "iamInstanceProfile", false, false, false, null, true, "", false, true);
+        SlaveTemplate middleSpot = new SlaveTemplate("4", middleZone, new SpotConfiguration("0.33"), "default", "foo", InstanceType.M1Large, false, label, Node.Mode.NORMAL, "", "bar", "bbb", "aaa", "10", "fff", null, "-Xmx1g", false, "subnet 456", null, null, false, null, "iamInstanceProfile", false, false, false, null, true, "", false, true);
+
+        List<SlaveTemplate> templates = new ArrayList<>();
+        // The expensive one is first in the list. This is important.
+        templates.add(expensiveSpot);
+        templates.add(cheapestSpot);
+        templates.add(standard);
+        templates.add(middleSpot);
+
+        // Mock an Amazon EC2 Connection
+        AmazonEC2 ec2 = Mockito.mock(AmazonEC2.class);
+        Mockito.when(ec2.describeSpotPriceHistory(any(DescribeSpotPriceHistoryRequest.class))).thenAnswer(
+                invocation -> {
+                    final String zone = invocation.getArgumentAt(0, DescribeSpotPriceHistoryRequest.class).getAvailabilityZone();
+
+                    DescribeSpotPriceHistoryResult result = new DescribeSpotPriceHistoryResult();
+                    SpotPrice spotPrice = new SpotPrice();
+                    result.setSpotPriceHistory(Collections.singletonList(spotPrice));
+
+                    spotPrice.setAvailabilityZone(zone);
+                    spotPrice.setInstanceType(InstanceType.M1Large);
+
+                    if (zone.equals(expensiveZone)) {
+                        spotPrice.setSpotPrice("34.3");
+                    } else if (zone.equals(middleZone)) {
+                        spotPrice.setSpotPrice("1.12");
+                    } else if (zone.equals(cheapZone)) {
+                        spotPrice.setSpotPrice("0.3324");
+                    } else {
+                        // die
+                        throw new IllegalArgumentException("Can't recognise zone");
+                    }
+
+                    return result;
+                });
+
+        // Spy on the EC2Cloud object to intercept the call to .connect() and return our mocked cloud
+        EC2Cloud rawCloud = new AmazonEC2Cloud("", false, "", "eu-west-1", "", "", templates);
+        EC2Cloud spiedCloud = Mockito.spy(rawCloud);
+        doReturn(ec2).when(spiedCloud).connect();
+
+        SlaveTemplate template = spiedCloud.getTemplate(Label.parse(label).iterator().next());
+
+        assertEquals(cheapestSpot.ami, template.ami);
+    }
 }