diff --git a/changelog.d/1374.feature b/changelog.d/1374.feature
new file mode 100644
index 000000000..7ce8ca694
--- /dev/null
+++ b/changelog.d/1374.feature
@@ -0,0 +1,11 @@
+Add ability to specify realname by template.
+
+This deprecates the old mxid/reverse-mxid format (though it's still available).
+Behaves similar to nickTemplate. Available templating variables:
+
+* `$DISPLAY`: Matrix user display name
+* `$USERID`:User mxid
+* `$LOCALPART`: Matrix user localpart
+* `$REVERSEID`: User mxid with host and localpart swapped
+* `$IRCUSER`: IRC username
+
diff --git a/config.sample.yaml b/config.sample.yaml
index 82f16c532..3d645536a 100644
--- a/config.sample.yaml
+++ b/config.sample.yaml
@@ -404,8 +404,11 @@ ircService:
         # through the bridge e.g. caller ID as there is no way to /ACCEPT.
         # Default: "" (no user modes)
         # userModes: "R"
-        # The format of the realname defined for users, either mxid or reverse-mxid
-        realnameFormat: "mxid"
+        # The format of the realname defined for users. This MUST have either
+        # $DISPLAY, $USERID, $LOCALPART, $REVERSEID or $IRCUSER somewhere in it.
+        # The template to apply to every IRC client nick. 
+        # Note that realnames longer than 48 characters will be trucated.
+        realnameFormat: "$USERID"
         # The minimum time to wait between connection attempts if we were disconnected
         # due to throttling.
         # pingTimeoutMs: 600000
diff --git a/config.schema.yml b/config.schema.yml
index 1cf7a1eac..bbd53a50f 100644
--- a/config.schema.yml
+++ b/config.schema.yml
@@ -329,7 +329,7 @@ properties:
                                     type: "string"
                                 aliasTemplate:
                                     type: "string"
-                                    pattern: "^(#.*\\$CHANNEL|\\$CHANNEL)$"
+                                    pattern: "^(#.*\\$CHANNEL.*|\\$CHANNEL)$"
                                 whitelist:
                                     type: "array"
                                     items:
@@ -391,7 +391,7 @@ properties:
                                     type: "boolean"
                                 realnameFormat:
                                     type: "string"
-                                    enum: ["mxid","reverse-mxid"]
+                                    pattern: "\\$USERID|\\$LOCALPART|\\$DISPLAY|\\$REVERSEID|\\$IRCUSER"
                                 ipv6:
                                     type: "object"
                                     properties:
diff --git a/spec/unit/IdentGenerator.spec.js b/spec/unit/IdentGenerator.spec.js
index 30659a885..80bcfbb2d 100644
--- a/spec/unit/IdentGenerator.spec.js
+++ b/spec/unit/IdentGenerator.spec.js
@@ -65,7 +65,7 @@ describe("Username generation", function() {
         expect(info.username).toEqual(uname);
     });
 
-    it("should reverse the userID", async function() {
+    it("should reverse the userID according to legacy format", async function() {
         var userId = "@myreallylonguseridhere:localhost";
         const info = await identGenerator.getIrcNames(ircClientConfig, {
             getRealNameFormat: () => "reverse-mxid",
@@ -74,6 +74,21 @@ describe("Username generation", function() {
         expect(info.realname).toEqual("localhost:myreallylonguseridhere");
     });
 
+    it("should allow template userID", async function() {
+        var userId = "@mxuser:localhost";
+        const user = new MatrixUser(userId);
+        user.setDisplayName('bar');
+        ircClientConfig.getUsername = () => 'foo';
+        let info = await identGenerator.getIrcNames(ircClientConfig, {
+            getRealNameFormat: () => "$USERID_$REVERSEID_suffix",
+        }, user);
+        expect(info.realname).toEqual("@mxuser:localhost_localhost:mxuser_suffix");
+        info = await identGenerator.getIrcNames(ircClientConfig, {
+            getRealNameFormat: () => "$IRCUSER_$DISPLAY_$LOCALPART_suffix",
+        }, user);
+        expect(info.realname).toEqual("foo_bar_mxuser_suffix");
+    });
+
     it("should start with '_1' on an occupied user ID", async function() {
         const userId = "@myreallylonguseridhere:localhost";
         const uname = "myreal_1";
diff --git a/src/irc/IdentGenerator.ts b/src/irc/IdentGenerator.ts
index 7a2b5cf16..f1c17ba9d 100644
--- a/src/irc/IdentGenerator.ts
+++ b/src/irc/IdentGenerator.ts
@@ -20,6 +20,7 @@ import { DataStore } from "../datastore/DataStore";
 import { MatrixUser } from "matrix-appservice-bridge";
 import { IrcClientConfig } from "../models/IrcClientConfig";
 import { IrcServer } from "./IrcServer";
+import { renderTemplate } from "../util/Template";
 
 const log = getLogger("IdentGenerator");
 
@@ -66,18 +67,29 @@ export class IdentGenerator {
 
         let realname: string;
         if (!matrixUser) {
-            realname = IdentGenerator.sanitiseRealname(username || "");
+            realname = username || "";
         }
         else if (server.getRealNameFormat() === "mxid") {
-            realname = IdentGenerator.sanitiseRealname(matrixUser.getId());
+            realname = matrixUser.getId();
+            log.warn("** The IrcClient.realnameFormat config schema has changed, allowing legacy format for now. **");
+            log.warn("See https://github.com/matrix-org/matrix-appservice-irc/blob/master/CHANGELOG.md for details");
         }
         else if (server.getRealNameFormat() === "reverse-mxid") {
-            realname = IdentGenerator.sanitiseRealname(IdentGenerator.switchAroundMxid(matrixUser));
+            realname = IdentGenerator.switchAroundMxid(matrixUser);
+            log.warn("** The IrcClient.realnameFormat config schema has changed, allowing legacy format for now. **");
+            log.warn("See https://github.com/matrix-org/matrix-appservice-irc/blob/master/CHANGELOG.md for details");
         }
         else {
-            throw Error('Invalid value for realNameFormat');
+            realname = renderTemplate(server.getRealNameFormat(), {
+                userId: matrixUser.userId,
+                localpart: matrixUser.localpart,
+                display: matrixUser.getDisplayName() || "",
+                reverseId: IdentGenerator.switchAroundMxid(matrixUser),
+                ircUser: username || ""
+            });
         }
 
+        realname = IdentGenerator.sanitiseRealname(realname);
         realname = realname.substring(0, IdentGenerator.MAX_REAL_NAME_LENGTH);
 
         if (matrixUser) {