diff --git a/homeassistant/components/device_tracker/owntracks.py b/homeassistant/components/device_tracker/owntracks.py
index b98c3a1636c..e81952eb770 100644
--- a/homeassistant/components/device_tracker/owntracks.py
+++ b/homeassistant/components/device_tracker/owntracks.py
@@ -10,14 +10,17 @@ import json
 import logging
 
 import homeassistant.components.mqtt as mqtt
+from homeassistant.const import (STATE_HOME, STATE_NOT_HOME)
 
 DEPENDENCIES = ['mqtt']
 
+CONF_TRANSITION_EVENTS = 'use_events'
 LOCATION_TOPIC = 'owntracks/+/+'
+EVENT_TOPIC = 'owntracks/+/+/event'
 
 
 def setup_scanner(hass, config, see):
-    """ Set up a OwnTracksks tracker. """
+    """ Set up an OwnTracks tracker. """
 
     def owntracks_location_update(topic, payload, qos):
         """ MQTT message received. """
@@ -48,6 +51,56 @@ def setup_scanner(hass, config, see):
 
         see(**kwargs)
 
-    mqtt.subscribe(hass, LOCATION_TOPIC, owntracks_location_update, 1)
+    def owntracks_event_update(topic, payload, qos):
+        """ MQTT event (geofences) received. """
+
+        # Docs on available data:
+        # http://owntracks.org/booklet/tech/json/#_typetransition
+        try:
+            data = json.loads(payload)
+        except ValueError:
+            # If invalid JSON
+            logging.getLogger(__name__).error(
+                'Unable to parse payload as JSON: %s', payload)
+            return
+
+        if not isinstance(data, dict) or data.get('_type') != 'transition':
+            return
+
+        # check if in "home" fence or other zone
+        location = ''
+        if data['event'] == 'enter':
+
+            if data['desc'] == 'home':
+                location = STATE_HOME
+            else:
+                location = data['desc']
+
+        elif data['event'] == 'leave':
+            location = STATE_NOT_HOME
+        else:
+            logging.getLogger(__name__).error(
+                'Misformatted mqtt msgs, _type=transition, event=%s',
+                data['event'])
+            return
+
+        parts = topic.split('/')
+        kwargs = {
+            'dev_id': '{}_{}'.format(parts[1], parts[2]),
+            'host_name': parts[1],
+            'gps': (data['lat'], data['lon']),
+            'location_name': location,
+        }
+        if 'acc' in data:
+            kwargs['gps_accuracy'] = data['acc']
+
+        see(**kwargs)
+
+    use_events = config.get(CONF_TRANSITION_EVENTS)
+
+    if use_events:
+        mqtt.subscribe(hass, EVENT_TOPIC, owntracks_event_update, 1)
+    else:
+        mqtt.subscribe(hass, LOCATION_TOPIC, owntracks_location_update, 1)
 
     return True