diff --git a/packstack/installer/engine_processors.py b/packstack/installer/engine_processors.py
index 0aa7ededa..5725ff0a8 100644
--- a/packstack/installer/engine_processors.py
+++ b/packstack/installer/engine_processors.py
@@ -1,10 +1,12 @@
 # -*- coding: utf-8 -*-
 
-from .common_utils import forceIP
+import os
+
+from .common_utils import ScriptRunner, forceIP
 from .exceptions import ParamProcessingError, NetworkError
 
 
-__all__ = ('ParamProcessingError', 'processHost')
+__all__ = ('ParamProcessingError', 'processHost', 'processSSHKey')
 
 
 
@@ -18,3 +20,13 @@ def processHost(param, process_args=None):
         return forceIP(param, allow_localhost=localhost)
     except NetworkError, ex:
         raise ParamProcessingError(str(ex))
+
+def processSSHKey(param, process_args=None):
+    if not param:
+        key_file = '%s/.ssh/id_rsa' % os.environ["HOME"]
+        local = ScriptRunner()
+        # create new ssh key
+        local.append('ssh-keygen -f %s -N ""' % key_file)
+        local.execute()
+        param = '%s.pub' % key_file
+    return param
diff --git a/packstack/plugins/sshkeys_000.py b/packstack/plugins/sshkeys_000.py
index e886be75f..300d4e751 100644
--- a/packstack/plugins/sshkeys_000.py
+++ b/packstack/plugins/sshkeys_000.py
@@ -5,7 +5,9 @@ Installs and configures ssh keys
 import glob
 import logging
 import os
+import tempfile
 
+import packstack.installer.engine_processors as process
 import packstack.installer.engine_validators as validate
 from packstack.installer import basedefs
 import packstack.installer.common_utils as utils
@@ -31,6 +33,7 @@ def initConfig(controllerObject):
                    "PROMPT"          : "Enter the path to your ssh Public key to install on servers",
                    "OPTION_LIST"     : [],
                    "VALIDATION_FUNC" : validate.validateFile,
+                   "PROCESSOR_FUNC"  : process.processSSHKey,
                    "DEFAULT_VALUE"   : (glob.glob(os.path.join(os.environ["HOME"], ".ssh/*.pub"))+[""])[0],
                    "MASK_INPUT"      : False,
                    "LOOSE_VALIDATION": False,
@@ -57,11 +60,10 @@ def initSequences(controller):
     ]
     controller.addSequence("ssh key setup", [], [], puppetsteps)
 
+
 def installKeys():
-    
     with open(controller.CONF["CONFIG_SSH_KEY"]) as fp:
         sshkeydata = fp.read().strip()
-
     for hostname in gethostlist(controller.CONF):
         if '/' in hostname:
             hostname = hostname.split('/')[0]
@@ -69,8 +71,7 @@ def installKeys():
         # TODO replace all that with ssh-copy-id
         server.append("mkdir -p ~/.ssh")
         server.append("chmod 500 ~/.ssh")
-        server.append("grep '%s' ~/.ssh/authorized_keys > /dev/null 2>&1 || echo %s >> ~/.ssh/authorized_keys"%(sshkeydata, sshkeydata))
+        server.append("grep '%s' ~/.ssh/authorized_keys > /dev/null 2>&1 || echo %s >> ~/.ssh/authorized_keys" % (sshkeydata, sshkeydata))
         server.append("chmod 400 ~/.ssh/authorized_keys")
         server.append("restorecon -r ~/.ssh")
         server.execute()
-