diff --git a/cmd/ignite/cmd/vmcmd/exec.go b/cmd/ignite/cmd/vmcmd/exec.go
index 6f27fd1f2..994c7be3c 100644
--- a/cmd/ignite/cmd/vmcmd/exec.go
+++ b/cmd/ignite/cmd/vmcmd/exec.go
@@ -42,5 +42,6 @@ func NewCmdExec(out io.Writer, err io.Writer, in io.Reader) *cobra.Command {
 
 func addExecFlags(fs *pflag.FlagSet, ef *run.ExecFlags) {
 	fs.StringVarP(&ef.IdentityFile, "identity", "i", "", "Override the vm's default identity file")
-	fs.Uint32VarP(&ef.Timeout, "timeout", "t", 10, "Timeout waiting for connection in seconds")
+	fs.Uint32Var(&ef.Timeout, "timeout", 10, "Timeout waiting for connection in seconds")
+	fs.BoolVarP(&ef.Tty, "tty", "t", false, "Allocate a pseudo-TTY")
 }
diff --git a/cmd/ignite/run/exec.go b/cmd/ignite/run/exec.go
index 282bb3f18..55c22b3ae 100644
--- a/cmd/ignite/run/exec.go
+++ b/cmd/ignite/run/exec.go
@@ -2,7 +2,6 @@ package run
 
 import (
 	"fmt"
-	"io"
 	"io/ioutil"
 	"net"
 	"os"
@@ -16,9 +15,11 @@ import (
 	shellescape "gopkg.in/alessio/shellescape.v1"
 )
 
+// ExecFlags contains the flags supported by the exec command.
 type ExecFlags struct {
 	Timeout      uint32
 	IdentityFile string
+	Tty          bool
 }
 
 type execOptions struct {
@@ -27,6 +28,7 @@ type execOptions struct {
 	command []string
 }
 
+// NewExecOptions constructs and returns an execOptions.
 func (ef *ExecFlags) NewExecOptions(vmMatch string, command ...string) (eo *execOptions, err error) {
 	eo = &execOptions{
 		ExecFlags: ef,
@@ -37,6 +39,7 @@ func (ef *ExecFlags) NewExecOptions(vmMatch string, command ...string) (eo *exec
 	return
 }
 
+// Exec executes command in a VM based on the provided execOptions.
 func Exec(eo *execOptions) error {
 	// Check if the VM is running
 	if !eo.vm.Running() {
@@ -72,7 +75,7 @@ func Exec(eo *execOptions) error {
 
 	// Run the command, DO NOT wrap this error as the caller can check for the command exit
 	// code in the ssh.ExitError type
-	return runSSHCommand(client, eo.command)
+	return runSSHCommand(client, eo.Tty, eo.command)
 }
 
 func newSignerForKey(keyPath string) (ssh.Signer, error) {
@@ -96,7 +99,7 @@ func newSSHConfig(publicKey ssh.Signer, timeout uint32) *ssh.ClientConfig {
 	}
 }
 
-func runSSHCommand(client *ssh.Client, command []string) error {
+func runSSHCommand(client *ssh.Client, tty bool, command []string) error {
 	// create a session for the command
 	session, err := client.NewSession()
 	if err != nil {
@@ -104,32 +107,22 @@ func runSSHCommand(client *ssh.Client, command []string) error {
 	}
 	defer session.Close()
 
-	// get a pty
-	// TODO: should these be based on the host terminal?
-	// TODO: should we request something other than xterm?
-	// TODO: we should probably configure the terminal modes
-	modes := ssh.TerminalModes{}
-	if err := session.RequestPty("xterm", 80, 40, modes); err != nil {
-		return fmt.Errorf("request for pseudo terminal failed: %v", err)
+	if tty {
+		// get a pty
+		// TODO: should these be based on the host terminal?
+		// TODO: should we request something other than xterm?
+		// TODO: we should probably configure the terminal modes
+		modes := ssh.TerminalModes{}
+		if err := session.RequestPty("xterm", 80, 40, modes); err != nil {
+			return fmt.Errorf("request for pseudo terminal failed: %v", err)
+		}
 	}
 
-	// connect input / output
+	// Connect input / output
 	// TODO: these should come from the cobra command instead of hardcoding os.Stderr etc.
-	stderr, err := session.StderrPipe()
-	if err != nil {
-		return fmt.Errorf("failed to connect stderr: %v", err)
-	}
-	go io.Copy(os.Stderr, stderr)
-	stdout, err := session.StdoutPipe()
-	if err != nil {
-		return fmt.Errorf("failed to connect stdout: %v", err)
-	}
-	go io.Copy(os.Stdout, stdout)
-	stdin, err := session.StdinPipe()
-	if err != nil {
-		return fmt.Errorf("failed to connect stdin: %v", err)
-	}
-	go io.Copy(stdin, os.Stdin)
+	session.Stderr = os.Stderr
+	session.Stdout = os.Stdout
+	session.Stdin = os.Stdin
 
 	/*
 		Do not wrap this error so the caller can check for the exit code
diff --git a/docs/cli/ignite/ignite_exec.md b/docs/cli/ignite/ignite_exec.md
index d6ce8b795..0fd78ba1b 100644
--- a/docs/cli/ignite/ignite_exec.md
+++ b/docs/cli/ignite/ignite_exec.md
@@ -20,7 +20,8 @@ ignite exec <vm> <command...> [flags]
 ```
   -h, --help              help for exec
   -i, --identity string   Override the vm's default identity file
-  -t, --timeout uint32    Timeout waiting for connection in seconds (default 10)
+      --timeout uint32    Timeout waiting for connection in seconds (default 10)
+  -t, --tty               Allocate a pseudo-TTY
 ```
 
 ### Options inherited from parent commands
diff --git a/e2e/vm_exec_test.go b/e2e/vm_exec_test.go
new file mode 100644
index 000000000..ecec28aaa
--- /dev/null
+++ b/e2e/vm_exec_test.go
@@ -0,0 +1,60 @@
+package e2e
+
+import (
+	"fmt"
+	"os/exec"
+	"strings"
+	"testing"
+
+	"gotest.tools/assert"
+)
+
+func TestVMExecInteractive(t *testing.T) {
+	assert.Assert(t, e2eHome != "", "IGNITE_E2E_HOME should be set")
+
+	vmName := "e2e_test_ignite_exec_interactive"
+
+	runCmd := exec.Command(
+		igniteBin,
+		"run", "--name="+vmName,
+		"--ssh",
+		"weaveworks/ignite-ubuntu",
+	)
+	runOut, runErr := runCmd.CombinedOutput()
+
+	defer func() {
+		rmvCmd := exec.Command(
+			igniteBin,
+			"rm", "-f", vmName,
+		)
+		rmvOut, rmvErr := rmvCmd.CombinedOutput()
+		assert.Check(t, rmvErr, fmt.Sprintf("vm removal: \n%q\n%s", rmvCmd.Args, rmvOut))
+	}()
+
+	assert.Check(t, runErr, fmt.Sprintf("vm run: \n%q\n%s", runCmd.Args, runOut))
+
+	// Pass input data from host and write to a file inside the VM.
+	remoteFileName := "afile.txt"
+	inputContent := "foooo..."
+	input := strings.NewReader(inputContent)
+
+	execCmd := exec.Command(
+		igniteBin,
+		"exec", vmName,
+		"tee", remoteFileName,
+	)
+	execCmd.Stdin = input
+
+	execOut, execErr := execCmd.CombinedOutput()
+	assert.Check(t, execErr, fmt.Sprintf("exec: \n%q\n%s", execCmd.Args, execOut))
+
+	// Check the file content inside the VM.
+	catCmd := exec.Command(
+		igniteBin,
+		"exec", vmName,
+		"cat", remoteFileName,
+	)
+	catOut, catErr := catCmd.CombinedOutput()
+	assert.Check(t, catErr, fmt.Sprintf("cat: \n%q\n%s", catCmd.Args, catOut))
+	assert.Equal(t, string(catOut), inputContent, fmt.Sprintf("unexpected file content on host:\n\t(WNT): %q\n\t(GOT): %q", inputContent, string(catOut)))
+}