diff --git a/.github/workflows/workflow.yaml b/.github/workflows/workflow.yaml
index 00964ff9..187c4328 100644
--- a/.github/workflows/workflow.yaml
+++ b/.github/workflows/workflow.yaml
@@ -76,12 +76,35 @@ jobs:
       - run: flutter --version
         shell: bash
 
+  test_version_file:
+    runs-on: ${{ matrix.operating-system }}
+
+    strategy:
+      matrix:
+        operating-system: [ubuntu-latest]
+
+    steps:
+      - name: Clone repository
+        uses: actions/checkout@v4
+      - uses: ./
+        with:
+          channel: stable
+          flutter-version-file: test/pubspec.yaml
+      - name: Verify Dart version
+        run: dart --version | grep '2.18.6'
+        shell: bash
+      - name: Verify Flutter version
+        run: flutter --version | grep '3.3.10'
+        shell: bash
+
   test_print_output:
     runs-on: macos-latest
 
     steps:
       - name: Clone repository
         uses: actions/checkout@v4
+      - run: ./setup.sh -t -p -f test/pubspec.yaml   | grep '3.3.10'
+        shell: bash
       - run: ./setup.sh -t -p                        | grep 'stable'
         shell: bash
       - run: ./setup.sh -t -p                        | grep '3.7.7'
@@ -146,15 +169,15 @@ jobs:
         shell: bash
       - run: ./setup.sh -t -p -n 0 any               | grep 'flutter-macos-beta-0.11.13-x64-58c8489fcdb4e4ef6c010117584c9b23d15221aa'
         shell: bash
-      - run: ./setup.sh -t -p                        | grep '/Users/runner/work/_temp/flutter/stable-3.7.7-x64'
+      - run: ./setup.sh -t -p                        | grep '/Users/runner/hostedtoolcache/flutter/stable-3.7.7-x64'
         shell: bash
-      - run: ./setup.sh -t -p stable                 | grep '/Users/runner/work/_temp/flutter/stable-3.7.7-x64'
+      - run: ./setup.sh -t -p stable                 | grep '/Users/runner/hostedtoolcache/flutter/stable-3.7.7-x64'
         shell: bash
-      - run: ./setup.sh -t -p beta                   | grep '/Users/runner/work/_temp/flutter/beta-3.9.0-0.1.pre-x64'
+      - run: ./setup.sh -t -p beta                   | grep '/Users/runner/hostedtoolcache/flutter/beta-3.9.0-0.1.pre-x64'
         shell: bash
-      - run: ./setup.sh -t -p dev                    | grep '/Users/runner/work/_temp/flutter/dev-2.11.0-0.1.pre-x64'
+      - run: ./setup.sh -t -p dev                    | grep '/Users/runner/hostedtoolcache/flutter/dev-2.11.0-0.1.pre-x64'
         shell: bash
-      - run: ./setup.sh -t -p master                 | grep '/Users/runner/work/_temp/flutter/master-any-x64'
+      - run: ./setup.sh -t -p master                 | grep '/Users/runner/hostedtoolcache/flutter/master-any-x64'
         shell: bash
       - run: ./setup.sh -t -p -k 'custom-:channel:-:version:-:hash:'       | grep 'custom-stable-3.7.7-2ad6cd72c040113b47ee9055e722606a490ef0da'
         shell: bash
diff --git a/README.md b/README.md
index 3a139243..46c0efcf 100644
--- a/README.md
+++ b/README.md
@@ -5,9 +5,9 @@ macOS.
 
 The following sections show how to configure this action.
 
-## Flutter version
+## Specifying Flutter version
 
-Use specific version and channel:
+### Use specific version and channel
 
 ```yaml
 steps:
@@ -16,12 +16,52 @@ steps:
   - name: Set up Flutter
     uses: subosito/flutter-action@v2
     with:
+      channel: stable
       flutter-version: 3.19.0
+  - run: flutter --version
+```
+
+### Use version from pubspec.yaml
+
+This is inspired by [`actions/setup-go`](https://github.com/actions/setup-go).
+
+```yaml
+steps:
+  - name: Clone repository
+    uses: actions/checkout@v4
+  - name: Set up Flutter
+    uses: subosito/flutter-action@v2
+    with:
       channel: stable
+      flutter-version-file: pubspec.yaml # path to pubspec.yaml
   - run: flutter --version
 ```
 
-Use latest release for particular channel:
+> [!IMPORTANT]
+>
+> For `flutter-version-file` to work, you need to have the exact Flutter version
+> defined in your pubspec.yaml:
+>
+> **Good**
+>
+> ```yaml
+> environment:
+>   sdk: ">=3.3.0 <4.0.0"
+>   flutter: 3.19.0
+> ```
+>
+> **Bad**
+>
+> ```yaml
+> environment:
+>   sdk: ">=3.3.0 <4.0.0"
+>   flutter: ">= 3.19.0 <4.0.0"
+> ```
+
+> [!WARNING]
+>
+> Using `flutter-version-file` requires [`yq`][https://github.com/mikefarah/yq],
+> which is not pre-installed in `windows` images. Install it yourself.
 
 ```yaml
 steps:
@@ -34,7 +74,7 @@ steps:
   - run: flutter --version
 ```
 
-Use latest release for particular version and/or channel:
+### Use latest release for particular version and/or channel
 
 ```yaml
 steps:
@@ -43,12 +83,12 @@ steps:
   - name: Set up Flutter
     uses: subosito/flutter-action@v2
     with:
-      flutter-version: 1.22.x
       channel: dev
+      flutter-version: 1.22.x
   - run: flutter --version
 ```
 
-Use particular version on any channel:
+### Use particular version on any channel
 
 ```yaml
 steps:
@@ -57,12 +97,12 @@ steps:
   - name: Set up Flutter
     uses: subosito/flutter-action@v2
     with:
-      flutter-version: 3.x
       channel: any
+      flutter-version: 3.x
   - run: flutter --version
 ```
 
-Use particular git reference on master channel:
+### Use particular git reference on master channel
 
 ```yaml
 steps:
@@ -71,8 +111,8 @@ steps:
   - name: Set up Flutter
     uses: subosito/flutter-action@v2
     with:
-      flutter-version: 5b12b74 # tag, commit or branch
       channel: master
+      flutter-version: 5b12b74 # tag, commit or branch
   - run: flutter --version
 ```
 
@@ -94,7 +134,11 @@ steps:
   - run: flutter build appbundle
 ```
 
-Build for **iOS** (macOS runners only):
+### Build for iOS
+
+> [!NOTE]
+>
+> Building for iOS requires a macOS runner.
 
 ```yaml
 jobs:
@@ -112,7 +156,7 @@ jobs:
       - run: flutter build ios --release --no-codesign
 ```
 
-Build for the **web**:
+### Build for the web
 
 ```yaml
 steps:
@@ -121,13 +165,13 @@ steps:
   - name: Set up Flutter
     uses: subosito/flutter-action@v2
     with:
-      channel: "stable"
+      channel: stable
   - run: flutter pub get
   - run: flutter test
   - run: flutter build web
 ```
 
-Build for **Windows**:
+### Build for Windows
 
 ```yaml
 jobs:
@@ -143,7 +187,7 @@ jobs:
       - run: flutter build windows
 ```
 
-Build for **Linux** desktop:
+### Build for Linux desktop
 
 ```yaml
 jobs:
@@ -162,7 +206,11 @@ jobs:
       - run: flutter build linux
 ```
 
-Build for **macOS** desktop:
+### Build for macOS desktop
+
+> [!NOTE]
+>
+> Building for macOS requires a macOS runner.
 
 ```yaml
 jobs:
@@ -174,7 +222,7 @@ jobs:
       - name: Set up Flutter
         uses: subosito/flutter-action@v2
         with:
-          channel: "stable"
+          channel: stable
       - run: flutter build macos
 ```
 
@@ -220,7 +268,9 @@ steps:
     id: flutter-action
     with:
       channel: stable
-  - run: |
+  - name: Print outputs
+    shell: bash
+    run: |
       echo CACHE-PATH=${{ steps.flutter-action.outputs.CACHE-PATH }}
       echo CACHE-KEY=${{ steps.flutter-action.outputs.CACHE-KEY }}
       echo CHANNEL=${{ steps.flutter-action.outputs.CHANNEL }}
@@ -228,5 +278,4 @@ steps:
       echo ARCHITECTURE=${{ steps.flutter-action.outputs.ARCHITECTURE }}
       echo PUB-CACHE-PATH=${{ steps.flutter-action.outputs.PUB-CACHE-PATH }}
       echo PUB-CACHE-KEY=${{ steps.flutter-action.outputs.PUB-CACHE-KEY }}
-    shell: bash
 ```
diff --git a/action.yaml b/action.yaml
index 36cd8edd..6594f64f 100644
--- a/action.yaml
+++ b/action.yaml
@@ -6,14 +6,22 @@ branding:
   color: blue
 
 inputs:
-  flutter-version:
-    description: The Flutter version to make available on the path
-    required: false
-    default: any
   channel:
     description: The Flutter build release channel
     required: false
     default: stable
+  flutter-version:
+    description: The Flutter version to make available on the path
+    required: false
+    default: ""
+  flutter-version-file:
+    description: The pubspec.yaml file with exact Flutter version defined
+    required: false
+    default: ""
+  architecture:
+    description: The architecture of Flutter SDK executable (x64 or arm64)
+    required: false
+    default: "${{ runner.arch }}"
   cache:
     description: Cache the Flutter SDK
     required: false
@@ -21,31 +29,21 @@ inputs:
   cache-key:
     description: Identifier for the Flutter SDK cache
     required: false
-    default: "flutter-:os:-:channel:-:version:-:arch:-:hash:"
-  pub-cache-key:
-    description: Identifier for the Dart .pub-cache cache
-    required: false
-    default: "flutter-pub:os:-:channel:-:version:-:arch:-:hash:"
+    default: ""
   cache-path:
     description: Flutter SDK cache path
     required: false
-    default: "${{ runner.tool_cache }}/flutter/:channel:-:version:-:arch:"
+    default: ""
+  pub-cache-key:
+    description: Identifier for the Dart .pub-cache cache
+    required: false
+    default: ""
   pub-cache-path:
     description: Flutter pub cache path
     required: false
     default: default
-  architecture:
-    description: The architecture of Flutter SDK executable (x64 or arm64)
-    required: false
-    default: "${{ runner.arch }}"
 
 outputs:
-  CACHE-KEY:
-    value: "${{ steps.flutter-action.outputs.CACHE-KEY }}"
-    description: Key used to cache the Flutter SDK
-  CACHE-PATH:
-    value: "${{ steps.flutter-action.outputs.CACHE-PATH }}"
-    description: Path to Flutter SDK
   CHANNEL:
     value: "${{ steps.flutter-action.outputs.CHANNEL }}"
     description: The selected Flutter release channel
@@ -55,6 +53,12 @@ outputs:
   ARCHITECTURE:
     value: "${{ steps.flutter-action.outputs.ARCHITECTURE }}"
     description: The selected Flutter CPU architecture
+  CACHE-KEY:
+    value: "${{ steps.flutter-action.outputs.CACHE-KEY }}"
+    description: Key used to cache the Flutter SDK
+  CACHE-PATH:
+    value: "${{ steps.flutter-action.outputs.CACHE-PATH }}"
+    description: Path to Flutter SDK
   PUB-CACHE-KEY:
     value: "${{ steps.flutter-action.outputs.PUB-CACHE-KEY }}"
     description: Key used to cache the pub dependencies
@@ -74,12 +78,13 @@ runs:
       shell: bash
       run: |
         $GITHUB_ACTION_PATH/setup.sh -p \
-          -c '${{ inputs.cache-path }}' \
-          -k '${{ inputs.cache-key }}' \
-          -d '${{ inputs.pub-cache-path }}' \
-          -l '${{ inputs.pub-cache-key }}' \
           -n '${{ inputs.flutter-version }}' \
+          -f '${{ inputs.flutter-version-file }}' \
           -a '${{ inputs.architecture }}' \
+          -k '${{ inputs.cache-key }}' \
+          -c '${{ inputs.cache-path }}' \
+          -l '${{ inputs.pub-cache-key }}' \
+          -d '${{ inputs.pub-cache-path }}' \
           ${{ inputs.channel }}
 
     - name: Cache Flutter
@@ -105,7 +110,7 @@ runs:
       shell: bash
       run: |
         $GITHUB_ACTION_PATH/setup.sh \
-          -c '${{ steps.flutter-action.outputs.CACHE-PATH }}' \
           -n '${{ steps.flutter-action.outputs.VERSION }}' \
           -a '${{ steps.flutter-action.outputs.ARCHITECTURE }}' \
+          -c '${{ steps.flutter-action.outputs.CACHE-PATH }}' \
           ${{ steps.flutter-action.outputs.CHANNEL }}
diff --git a/setup.sh b/setup.sh
index b411a2b0..9cce2cc2 100755
--- a/setup.sh
+++ b/setup.sh
@@ -1,11 +1,12 @@
 #!/bin/bash
+set -eu
 
 check_command() {
 	command -v "$1" >/dev/null 2>&1
 }
 
 if ! check_command jq; then
-	echo "jq not found, please install it, https://stedolan.github.io/jq/download/"
+	echo "jq not found. Install it from https://stedolan.github.io/jq"
 	exit 1
 fi
 
@@ -76,8 +77,9 @@ PRINT_ONLY=""
 TEST_MODE=false
 ARCH=""
 VERSION=""
+VERSION_FILE=""
 
-while getopts 'tc:k:d:l:pa:n:' flag; do
+while getopts 'tc:k:d:l:pa:n:f:' flag; do
 	case "$flag" in
 	c) CACHE_PATH="$OPTARG" ;;
 	k) CACHE_KEY="$OPTARG" ;;
@@ -87,19 +89,35 @@ while getopts 'tc:k:d:l:pa:n:' flag; do
 	t) TEST_MODE=true ;;
 	a) ARCH="$(echo "$OPTARG" | awk '{print tolower($0)}')" ;;
 	n) VERSION="$OPTARG" ;;
+	f)
+		VERSION_FILE="$OPTARG"
+		if [ -n "$VERSION_FILE" ] && ! check_command yq; then
+			echo "yq not found. Install it from https://mikefarah.gitbook.io/yq"
+			exit 1
+		fi
+		;;
 	?) exit 2 ;;
 	esac
 done
 
 [ -z "$ARCH" ] && ARCH="$ARCH_NAME"
 
+if [ -n "$VERSION_FILE" ]; then
+	if [ -n "$VERSION" ]; then
+		echo "Cannot specify both a version and a version file"
+		exit 1
+	fi
+
+	VERSION="$(yq '.environment.flutter' "$VERSION_FILE")"
+fi
+
 ARR_CHANNEL=("${@:$OPTIND:1}")
-CHANNEL="${ARR_CHANNEL[0]}"
+CHANNEL="${ARR_CHANNEL[0]:-}"
 
 [ -z "$CHANNEL" ] && CHANNEL=stable
 [ -z "$VERSION" ] && VERSION=any
 [ -z "$ARCH" ] && ARCH=x64
-[ -z "$CACHE_PATH" ] && CACHE_PATH="$RUNNER_TEMP/flutter/:channel:-:version:-:arch:"
+[ -z "$CACHE_PATH" ] && CACHE_PATH="$RUNNER_TOOL_CACHE/flutter/:channel:-:version:-:arch:"
 [ -z "$CACHE_KEY" ] && CACHE_KEY="flutter-:os:-:channel:-:version:-:arch:-:hash:"
 [ -z "$PUB_CACHE_KEY" ] && PUB_CACHE_KEY="flutter-pub-:os:-:channel:-:version:-:arch:-:hash:"
 [ -z "$PUB_CACHE_PATH" ] && PUB_CACHE_PATH="default"
@@ -110,7 +128,7 @@ CHANNEL="${ARR_CHANNEL[0]}"
 # If `PUB_CACHE` is set already, then it should continue to be used. Otherwise, satisfy it
 # if the action requests a custom path, or set to the Dart default values depending
 # on the operating system.
-if [ -z "$PUB_CACHE" ]; then
+if [ -z "${PUB_CACHE:-}" ]; then
 	if [ "$PUB_CACHE_PATH" != "default" ]; then
 		PUB_CACHE="$PUB_CACHE_PATH"
 	elif [ "$OS_NAME" = "windows" ]; then
@@ -170,6 +188,7 @@ if [ "$PRINT_ONLY" = true ]; then
 	if [ "$TEST_MODE" = true ]; then
 		echo "CHANNEL=$info_channel"
 		echo "VERSION=$info_version"
+		# VERSION_FILE is not printed, because it is essentially same as VERSION
 		echo "ARCHITECTURE=$info_architecture"
 		echo "CACHE-KEY=$CACHE_KEY"
 		echo "CACHE-PATH=$CACHE_PATH"
@@ -181,12 +200,13 @@ if [ "$PRINT_ONLY" = true ]; then
 	{
 		echo "CHANNEL=$info_channel"
 		echo "VERSION=$info_version"
+		# VERSION_FILE is not printed, because it is essentially same as VERSION
 		echo "ARCHITECTURE=$info_architecture"
 		echo "CACHE-KEY=$CACHE_KEY"
 		echo "CACHE-PATH=$CACHE_PATH"
 		echo "PUB-CACHE-KEY=$PUB_CACHE_KEY"
 		echo "PUB-CACHE-PATH=$PUB_CACHE"
-	} >>"$GITHUB_OUTPUT"
+	} >>"${GITHUB_OUTPUT:-/dev/null}"
 
 	exit 0
 fi
@@ -207,10 +227,10 @@ fi
 {
 	echo "FLUTTER_ROOT=$CACHE_PATH"
 	echo "PUB_CACHE=$PUB_CACHE"
-} >>"$GITHUB_ENV"
+} >>"${GITHUB_ENV:-/dev/null}"
 
 {
 	echo "$CACHE_PATH/bin"
 	echo "$CACHE_PATH/bin/cache/dart-sdk/bin"
 	echo "$PUB_CACHE/bin"
-} >>"$GITHUB_PATH"
+} >>"${GITHUB_PATH:-/dev/null}"
diff --git a/test/pubspec.yaml b/test/pubspec.yaml
new file mode 100644
index 00000000..b4d58fad
--- /dev/null
+++ b/test/pubspec.yaml
@@ -0,0 +1,5 @@
+name: flutter_action_test
+
+environment:
+  dart: ">=2.18.0 <3.0.0"
+  flutter: 3.3.10