diff --git a/plugins/provisioners/puppet/provisioner/puppet.rb b/plugins/provisioners/puppet/provisioner/puppet.rb
index f1987dbd5..d1e124e85 100644
--- a/plugins/provisioners/puppet/provisioner/puppet.rb
+++ b/plugins/provisioners/puppet/provisioner/puppet.rb
@@ -62,12 +62,16 @@ module VagrantPlugins
           # Parse out the environment manifest path since puppet apply doesnt do that for us.
           environment_conf = File.join(environments_guest_path, @config.environment, "environment.conf")
           if @machine.communicate.test("test -e #{environment_conf}", sudo: true)
-            conf = @machine.communicate.sudo("cat #{environment_conf}") do | type, data|
+            @machine.communicate.sudo("cat #{environment_conf}") do | type, data|
               if type == :stdout
                 data.each_line do |line|
                   if line =~ /^\s*manifest\s+=\s+([^\s]+)/
                     @manifest_file = $1
-                    @manifest_file.gsub! '$basemodulepath:', "#{environments_guest_path}/#{@config.environment}/"
+                    @manifest_file.gsub! "$codedir", File.dirname(environments_guest_path)
+                    @manifest_file.gsub! "$environment", @config.environment
+                    if !@manifest_file.start_with? "/"
+                      @manifest_file = File.join(environments_guest_path, @config.environment, @manifest_file)
+                    end
                     @logger.debug("Using manifest from environment.conf: #{@manifest_file}")
                   end
                 end
@@ -85,7 +89,7 @@ module VagrantPlugins
 
           # In environment mode we still need to specify a manifest file, if its not, use the one from env config if specified.
           if !@manifest_file
-            @manifest_file = "#{environments_guest_path}/#{@config.environment}/manifests/site.pp"
+            @manifest_file = "#{environments_guest_path}/#{@config.environment}/manifests"
             parse_environment_metadata
           end
           # Check that the shared folders are properly shared
diff --git a/website/docs/source/v2/provisioning/puppet_apply.html.md b/website/docs/source/v2/provisioning/puppet_apply.html.md
index 89fe90195..b8f0a5f02 100644
--- a/website/docs/source/v2/provisioning/puppet_apply.html.md
+++ b/website/docs/source/v2/provisioning/puppet_apply.html.md
@@ -140,8 +140,9 @@ that the path is located in the "vm" at "/path/to/manifests".
 
 ## Environments
 
-If you are using Puppet 4 or higher, you can also specify the name of the
-Puppet environment and the path on the local disk to the environment files:
+If you are using Puppet 4 or higher, you can proivision using
+[Puppet Environments](https://docs.puppetlabs.com/puppet/latest/reference/environments.html) by specifying the name of the environment and the path on the
+local disk to the environment files:
 
 ```ruby
 Vagrant.configure("2") do |config|
@@ -152,6 +153,13 @@ Vagrant.configure("2") do |config|
 end
 ```
 
+The default manifest is the environment's `manifests` directory.
+If the environment has an `environment.conf` the manifest path is parsed
+from there. Relative paths are assumed to be relative to the directory of
+the environment. If the manifest setting in `environment.conf` use
+the Puppet variables `$codedir` or `$environment` they are resoled to
+the parent directory of `environment_path` and `environment` respectively.
+
 ## Modules
 
 Vagrant also supports provisioning with [Puppet modules](http://docs.puppetlabs.com/guides/modules.html).