diff --git a/homeassistant/components/camera/local_file.py b/homeassistant/components/camera/local_file.py
index 95d24c7d42e..95eade48568 100644
--- a/homeassistant/components/camera/local_file.py
+++ b/homeassistant/components/camera/local_file.py
@@ -11,31 +11,44 @@ import os
 import voluptuous as vol
 
 from homeassistant.const import CONF_NAME
-from homeassistant.components.camera import Camera, PLATFORM_SCHEMA
+from homeassistant.components.camera import (
+    Camera, CAMERA_SERVICE_SCHEMA, DOMAIN, PLATFORM_SCHEMA)
 from homeassistant.helpers import config_validation as cv
 
 _LOGGER = logging.getLogger(__name__)
 
 CONF_FILE_PATH = 'file_path'
-
 DEFAULT_NAME = 'Local File'
+SERVICE_UPDATE_FILE_PATH = 'local_file_update_file_path'
 
 PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend({
     vol.Required(CONF_FILE_PATH): cv.string,
     vol.Optional(CONF_NAME, default=DEFAULT_NAME): cv.string
 })
 
+CAMERA_SERVICE_UPDATE_FILE_PATH = CAMERA_SERVICE_SCHEMA.extend({
+    vol.Required(CONF_FILE_PATH): cv.string
+})
+
 
 def setup_platform(hass, config, add_devices, discovery_info=None):
     """Set up the Camera that works with local files."""
     file_path = config[CONF_FILE_PATH]
+    camera = LocalFile(config[CONF_NAME], file_path)
 
-    # check filepath given is readable
-    if not os.access(file_path, os.R_OK):
-        _LOGGER.warning("Could not read camera %s image from file: %s",
-                        config[CONF_NAME], file_path)
+    def update_file_path_service(call):
+        """Update the file path."""
+        file_path = call.data.get(CONF_FILE_PATH)
+        camera.update_file_path(file_path)
+        return True
 
-    add_devices([LocalFile(config[CONF_NAME], file_path)])
+    hass.services.register(
+        DOMAIN,
+        SERVICE_UPDATE_FILE_PATH,
+        update_file_path_service,
+        schema=CAMERA_SERVICE_UPDATE_FILE_PATH)
+
+    add_devices([camera])
 
 
 class LocalFile(Camera):
@@ -46,6 +59,7 @@ class LocalFile(Camera):
         super().__init__()
 
         self._name = name
+        self.check_file_path_access(file_path)
         self._file_path = file_path
         # Set content type of local file
         content, _ = mimetypes.guess_type(file_path)
@@ -61,7 +75,26 @@ class LocalFile(Camera):
             _LOGGER.warning("Could not read camera %s image from file: %s",
                             self._name, self._file_path)
 
+    def check_file_path_access(self, file_path):
+        """Check that filepath given is readable."""
+        if not os.access(file_path, os.R_OK):
+            _LOGGER.warning("Could not read camera %s image from file: %s",
+                            self._name, file_path)
+
+    def update_file_path(self, file_path):
+        """Update the file_path."""
+        self.check_file_path_access(file_path)
+        self._file_path = file_path
+        self.schedule_update_ha_state()
+
     @property
     def name(self):
         """Return the name of this camera."""
         return self._name
+
+    @property
+    def device_state_attributes(self):
+        """Return the camera state attributes."""
+        return {
+            'file_path': self._file_path,
+        }
diff --git a/homeassistant/components/camera/services.yaml b/homeassistant/components/camera/services.yaml
index b548f3d1ada..544fd0e6b8a 100644
--- a/homeassistant/components/camera/services.yaml
+++ b/homeassistant/components/camera/services.yaml
@@ -24,6 +24,16 @@ snapshot:
       description: Template of a Filename. Variable is entity_id.
       example: '/tmp/snapshot_{{ entity_id }}'
 
+local_file_update_file_path:
+  description: Update the file_path for a local_file camera.
+  fields:
+    entity_id:
+      description: Name(s) of entities to update.
+      example: 'camera.local_file'
+    file_path:
+      description: Path to the new image file.
+      example: '/images/newimage.jpg'
+
 onvif_ptz:
   description: Pan/Tilt/Zoom service for ONVIF camera.
   fields:
@@ -39,4 +49,3 @@ onvif_ptz:
     zoom:
       description: "Zoom. Allowed values: ZOOM_IN, ZOOM_OUT"
       example: "ZOOM_IN"
-
diff --git a/tests/components/camera/test_local_file.py b/tests/components/camera/test_local_file.py
index 1098c8c9233..40517ea1298 100644
--- a/tests/components/camera/test_local_file.py
+++ b/tests/components/camera/test_local_file.py
@@ -6,6 +6,9 @@ from unittest import mock
 # https://bugs.python.org/issue23004
 from mock_open import MockOpen
 
+from homeassistant.components.camera import DOMAIN
+from homeassistant.components.camera.local_file import (
+    SERVICE_UPDATE_FILE_PATH)
 from homeassistant.setup import async_setup_component
 
 from tests.common import mock_registry
@@ -115,3 +118,37 @@ def test_camera_content_type(hass, aiohttp_client):
     assert resp_4.content_type == 'image/jpeg'
     body = yield from resp_4.text()
     assert body == image
+
+
+async def test_update_file_path(hass):
+    """Test update_file_path service."""
+    # Setup platform
+
+    mock_registry(hass)
+
+    with mock.patch('os.path.isfile', mock.Mock(return_value=True)), \
+            mock.patch('os.access', mock.Mock(return_value=True)):
+        await async_setup_component(hass, 'camera', {
+            'camera': {
+                'platform': 'local_file',
+                'file_path': 'mock/path.jpg'
+            }
+        })
+
+        # Fetch state and check motion detection attribute
+        state = hass.states.get('camera.local_file')
+        assert state.attributes.get('friendly_name') == 'Local File'
+        assert state.attributes.get('file_path') == 'mock/path.jpg'
+
+        service_data = {
+            "entity_id": 'camera.local_file',
+            "file_path": 'new/path.jpg'
+        }
+
+        await hass.services.async_call(DOMAIN,
+                                       SERVICE_UPDATE_FILE_PATH,
+                                       service_data)
+        await hass.async_block_till_done()
+
+        state = hass.states.get('camera.local_file')
+        assert state.attributes.get('file_path') == 'new/path.jpg'