diff --git a/.github/workflows/versions.yml b/.github/workflows/versions.yml
index 459f33cdc..92ce860e9 100644
--- a/.github/workflows/versions.yml
+++ b/.github/workflows/versions.yml
@@ -3,14 +3,14 @@ name: versions
 on:
   pull_request:
     paths-ignore:
-      - '**.md'    
-  push:    
+      - '**.md'
+  push:
     branches:
       - main
       - releases/*
     paths-ignore:
       - '**.md'
-      
+
 jobs:
   local-cache:
     runs-on: ${{ matrix.os }}
@@ -84,12 +84,13 @@ jobs:
       fail-fast: false
       matrix:
         os: [ubuntu-latest, windows-latest, macos-latest]
+        node-version-file: ['__tests__/data/.nvmrc', '__tests__/data/.tool-versions']
     steps:
       - uses: actions/checkout@v2
       - name: Setup node from node version file
         uses: ./
         with:
-          node-version-file: '__tests__/data/.nvmrc'
+          node-version-file: ${{ matrix.node-version-file }}
       - name: Verify node
         run: __tests__/verify-node.sh 14
 
diff --git a/__tests__/data/.tool-versions b/__tests__/data/.tool-versions
new file mode 100644
index 000000000..317343f30
--- /dev/null
+++ b/__tests__/data/.tool-versions
@@ -0,0 +1 @@
+nodejs 14.0.0
diff --git a/__tests__/installer.test.ts b/__tests__/installer.test.ts
index 01f604a3c..12077d2e8 100644
--- a/__tests__/installer.test.ts
+++ b/__tests__/installer.test.ts
@@ -867,15 +867,17 @@ describe('setup-node', () => {
 describe('helper methods', () => {
   describe('parseNodeVersionFile', () => {
     each`
-      contents            | expected
-      ${'12'}             | ${'12'}
-      ${'12.3'}           | ${'12.3'}
-      ${'12.3.4'}         | ${'12.3.4'}
-      ${'v12.3.4'}        | ${'12.3.4'}
-      ${'lts/erbium'}     | ${'lts/erbium'}
-      ${'lts/*'}          | ${'lts/*'}
-      ${''}               | ${''}
-      ${'unknown format'} | ${'unknown format'}
+      contents                                     | expected
+      ${'12'}                                      | ${'12'}
+      ${'12.3'}                                    | ${'12.3'}
+      ${'12.3.4'}                                  | ${'12.3.4'}
+      ${'v12.3.4'}                                 | ${'12.3.4'}
+      ${'lts/erbium'}                              | ${'lts/erbium'}
+      ${'lts/*'}                                   | ${'lts/*'}
+      ${'nodejs 12.3.4'}                           | ${'12.3.4'}
+      ${'ruby 2.3.4\nnodejs 12.3.4\npython 3.4.5'} | ${'12.3.4'}
+      ${''}                                        | ${''}
+      ${'unknown format'}                          | ${'unknown format'}
     `.it('parses "$contents"', ({contents, expected}) => {
       expect(im.parseNodeVersionFile(contents)).toBe(expected);
     });
diff --git a/action.yml b/action.yml
index 879ac00b5..d7509c035 100644
--- a/action.yml
+++ b/action.yml
@@ -8,7 +8,7 @@ inputs:
   node-version:
     description: 'Version Spec of the version to use.  Examples: 12.x, 10.15.1, >=10.15.0'
   node-version-file:
-    description: 'File containing the version Spec of the version to use.  Examples: .nvmrc, .node-version'
+    description: 'File containing the version Spec of the version to use.  Examples: .nvmrc, .node-version, .tool-versions'
   architecture:
     description: 'Target architecture for Node to use. Examples: x86, x64. Will use system architecture by default.'
   check-latest:
@@ -25,17 +25,17 @@ inputs:
     description: 'Used to specify a package manager for caching in the default directory. Supported values: npm, yarn, pnpm'
   cache-dependency-path:
     description: 'Used to specify the path to a dependency file: package-lock.json, yarn.lock, etc. Supports wildcards or a list of file names for caching multiple dependencies.'
-# TODO: add input to control forcing to pull from cloud or dist. 
+# TODO: add input to control forcing to pull from cloud or dist.
 #       escape valve for someone having issues or needing the absolute latest which isn't cached yet
 # Deprecated option, do not use. Will not be supported after October 1, 2019
   version:
     description: 'Deprecated. Use node-version instead. Will not be supported after October 1, 2019'
     deprecationMessage: 'The version property will not be supported after October 1, 2019. Use node-version instead'
 outputs:
-  cache-hit: 
+  cache-hit:
     description: 'A boolean value to indicate if a cache was hit'
 runs:
   using: 'node12'
   main: 'dist/setup/index.js'
   post: 'dist/cache-save/index.js'
-  post-if: success()
\ No newline at end of file
+  post-if: success()
diff --git a/docs/advanced-usage.md b/docs/advanced-usage.md
index 960772f5c..49c8a1526 100644
--- a/docs/advanced-usage.md
+++ b/docs/advanced-usage.md
@@ -21,7 +21,7 @@ steps:
 
 ## Node version file
   
-The `node-version-file` input accepts a path to a file containing the version of Node.js to be used by a project, for example `.nvmrc` or `.node-version`. If both the `node-version` and the `node-version-file` inputs are provided then the `node-version` input is used. 
+The `node-version-file` input accepts a path to a file containing the version of Node.js to be used by a project, for example `.nvmrc`, `.node-version` or `.tool-versions`. If both the `node-version` and the `node-version-file` inputs are provided then the `node-version` input is used. 
 See [supported version syntax](https://github.com/actions/setup-node#supported-version-syntax) 
 > The action will search for the node version file relative to the repository root.
 
diff --git a/src/installer.ts b/src/installer.ts
index a9baae0a1..2a22e77c4 100644
--- a/src/installer.ts
+++ b/src/installer.ts
@@ -466,10 +466,14 @@ function translateArchToDistUrl(arch: string): string {
 }
 
 export function parseNodeVersionFile(contents: string): string {
-  let nodeVersion = contents.trim();
+  const found = contents.match(/^(?:nodejs\s+)?v?(?<version>[^\s]+)$/m);
+  const nodeVersion = found?.groups?.version;
 
-  if (/^v\d/.test(nodeVersion)) {
-    nodeVersion = nodeVersion.substring(1);
+  if (nodeVersion) {
+    return nodeVersion;
   }
-  return nodeVersion;
+
+  // In the case of an unknown format,
+  // return as is and evaluate the version separately.
+  return contents.trim();
 }