diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6e66c468..adb5cc82 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,9 +13,13 @@ The format is based on [Keep a Changelog], and this project adheres to
 ### Changed
 
 - Use GitHub Actions for the CI build instead of Travis CI ([#353]).
+- Templates compiled with `cfndsl` have a pretty format ([#356]).
+- Update `cfndsl` requirement from < 1.0 to ~> 1 ([#356]). The changes in
+  version 1 are potentially breaking for projects using `cfndsl` templates.
 
 [Unreleased]: https://github.com/envato/stack_master/compare/v2.12.0...HEAD
 [#353]: https://github.com/envato/stack_master/pull/353
+[#356]: https://github.com/envato/stack_master/pull/356
 
 ## [2.12.0] - 2020-10-22
 
diff --git a/features/compile_with_cfndsl.feature b/features/compile_with_cfndsl.feature
new file mode 100644
index 00000000..ac86bddf
--- /dev/null
+++ b/features/compile_with_cfndsl.feature
@@ -0,0 +1,69 @@
+Feature: Compile command with a CfnDsl template
+
+  Scenario: Run compile stack on CfnDsl template
+    Given a file named "stack_master.yml" with:
+      """
+      template_compilers:
+        rb: cfndsl
+      stacks:
+        us_east_1:
+          myapp_vpc:
+            template: myapp_vpc.rb
+      """
+    And a directory named "parameters"
+    And a file named "parameters/myapp_vpc.yml" with:
+      """
+      KeyName: my-key
+      compile_time_parameters:
+        cidr_block: 10.200.0.0/16
+      """
+    And a directory named "templates"
+    And a file named "templates/myapp_vpc.rb" with:
+      """
+      CloudFormation do
+        Description "Test template"
+
+        Parameter("KeyName") do
+          Description "Key name"
+          Type "String"
+        end
+
+        VPC(:Vpc) do
+          CidrBlock external_parameters[:CidrBlock]
+        end
+
+        Output(:VpcId) do
+          Description "A VPC ID"
+          Value Ref("Vpc")
+        end
+      end
+      """
+    When I run `stack_master compile us-east-1 myapp-vpc`
+    Then the output should contain all of these lines:
+      | Executing compile on myapp-vpc in us-east-1 |
+      |   "AWSTemplateFormatVersion": "2010-09-09", |
+      |   "Description": "Test template",           |
+      |   "Parameters": {                           |
+      |     "KeyName": {                            |
+      |       "Type": "String"                      |
+      |       "Description": "Key name"             |
+      |     }                                       |
+      |   },                                        |
+      |   "Resources": {                            |
+      |     "Vpc": {                                |
+      |       "Properties": {                       |
+      |         "CidrBlock": "10.200.0.0/16"        |
+      |       },                                    |
+      |       "Type": "AWS::EC2::VPC"               |
+      |     }                                       |
+      |   },                                        |
+      |   "Outputs": {                              |
+      |     "VpcId": {                              |
+      |       "Description": "A VPC ID",            |
+      |       "Value": {                            |
+      |         "Ref": "Vpc"                        |
+      |       }                                     |
+      |     }                                       |
+      |   }                                         |
+      | }                                           |
+    And the exit status should be 0
diff --git a/features/compile_with_sparkle_formation.feature b/features/compile_with_sparkle_formation.feature
new file mode 100644
index 00000000..f673c5d3
--- /dev/null
+++ b/features/compile_with_sparkle_formation.feature
@@ -0,0 +1,71 @@
+Feature: Compile command with a SparkleFormation template
+
+  Scenario: Run compile stack on SparkleFormation template
+    Given a file named "stack_master.yml" with:
+      """
+      stacks:
+        us_east_1:
+          myapp_vpc:
+            template: myapp_vpc.rb
+      """
+    And a directory named "parameters"
+    And a file named "parameters/myapp_vpc.yml" with:
+      """
+      KeyName: my-key
+      compile_time_parameters:
+        cidr_block: 10.200.0.0/16
+      """
+    And a directory named "templates"
+    And a file named "templates/myapp_vpc.rb" with:
+      """
+      SparkleFormation.new(:myapp_vpc,
+                           compile_time_parameters: { cidr_block: { type: :string }}) do
+        description "Test template"
+
+        parameters.key_name do
+          description 'Key name'
+          type 'String'
+        end
+
+        resources.vpc do
+          type 'AWS::EC2::VPC'
+          properties do
+            cidr_block '10.200.0.0/16'
+          end
+        end
+
+        outputs.vpc_id do
+          description 'A VPC ID'
+          value ref!(:vpc)
+        end
+      end
+      """
+    When I run `stack_master compile us-east-1 myapp-vpc`
+    Then the output should contain all of these lines:
+      | Executing compile on myapp-vpc in us-east-1 |
+      | {                                           |
+      |   "Description": "Test template",           |
+      |   "Parameters": {                           |
+      |     "KeyName": {                            |
+      |       "Description": "Key name",            |
+      |       "Type": "String"                      |
+      |     }                                       |
+      |   },                                        |
+      |   "Resources": {                            |
+      |     "Vpc": {                                |
+      |       "Type": "AWS::EC2::VPC",              |
+      |       "Properties": {                       |
+      |         "CidrBlock": "10.200.0.0/16"        |
+      |       }                                     |
+      |     }                                       |
+      |   },                                        |
+      |   "Outputs": {                              |
+      |     "VpcId": {                              |
+      |       "Description": "A VPC ID",            |
+      |       "Value": {                            |
+      |         "Ref": "Vpc"                        |
+      |       }                                     |
+      |     }                                       |
+      |   }                                         |
+      | }                                           |
+    And the exit status should be 0
diff --git a/lib/stack_master/commands/compile.rb b/lib/stack_master/commands/compile.rb
index 9857042b..2d0dcebb 100644
--- a/lib/stack_master/commands/compile.rb
+++ b/lib/stack_master/commands/compile.rb
@@ -5,7 +5,7 @@ class Compile
       include Commander::UI
 
       def perform
-        puts(proposed_stack.template_body)
+        StackMaster.stdout.puts(proposed_stack.template_body)
       end
 
       private
diff --git a/lib/stack_master/template_compilers/cfndsl.rb b/lib/stack_master/template_compilers/cfndsl.rb
index 31599cb2..801c3d70 100644
--- a/lib/stack_master/template_compilers/cfndsl.rb
+++ b/lib/stack_master/template_compilers/cfndsl.rb
@@ -2,14 +2,15 @@ module StackMaster::TemplateCompilers
   class Cfndsl
     def self.require_dependencies
       require 'cfndsl'
+      require 'json'
     end
 
     def self.compile(template_dir, template, compile_time_parameters, _compiler_options = {})
-      CfnDsl.disable_binding
       CfnDsl::ExternalParameters.defaults.clear # Ensure there's no leakage across invocations
       CfnDsl::ExternalParameters.defaults(compile_time_parameters.symbolize_keys)
       template_file_path = File.join(template_dir, template)
-      ::CfnDsl.eval_file_with_extras(template_file_path).to_json
+      json_hash = ::CfnDsl.eval_file_with_extras(template_file_path).as_json
+      JSON.pretty_generate(json_hash)
     end
 
     StackMaster::TemplateCompiler.register(:cfndsl, self)
diff --git a/lib/stack_master/template_compilers/sparkle_formation.rb b/lib/stack_master/template_compilers/sparkle_formation.rb
index d779db9c..e4e932b2 100644
--- a/lib/stack_master/template_compilers/sparkle_formation.rb
+++ b/lib/stack_master/template_compilers/sparkle_formation.rb
@@ -22,7 +22,7 @@ def self.compile(template_dir, template, compile_time_parameters, compiler_optio
         sparkle_template.compile_state = create_state(definitions, compile_time_parameters)
       end
 
-      JSON.pretty_generate(sparkle_template)
+      JSON.pretty_generate(sparkle_template.dump)
     end
 
     private
diff --git a/spec/fixtures/templates/rb/cfndsl/sample-ctp-repeated.rb b/spec/fixtures/templates/rb/cfndsl/sample-ctp-repeated.rb
index efb9ad28..4da68513 100644
--- a/spec/fixtures/templates/rb/cfndsl/sample-ctp-repeated.rb
+++ b/spec/fixtures/templates/rb/cfndsl/sample-ctp-repeated.rb
@@ -10,7 +10,7 @@
   Output(:One,FnBase64( Ref("One")))
 
   EC2_Instance(:MyInstance) {
-    DisableApiTermination external_parameters["DisableApiTermination"]
+    DisableApiTermination external_parameters.fetch(:DisableApiTermination, "false")
     InstanceType external_parameters["InstanceType"]
     ImageId "ami-12345678"
   }
diff --git a/spec/stack_master/template_compilers/cfndsl_spec.rb b/spec/stack_master/template_compilers/cfndsl_spec.rb
index 28ee2101..94b907bb 100644
--- a/spec/stack_master/template_compilers/cfndsl_spec.rb
+++ b/spec/stack_master/template_compilers/cfndsl_spec.rb
@@ -36,7 +36,7 @@ def compile
         it 'does not leak compile time params across invocations' do
           expect {
             compile_time_parameters.delete("DisableApiTermination")
-          }.to change { JSON.parse(compile)["Resources"]["MyInstance"]["Properties"]["DisableApiTermination"] }.from('true').to(nil)
+          }.to change { JSON.parse(compile)["Resources"]["MyInstance"]["Properties"]["DisableApiTermination"] }.from('true').to('false')
         end
       end
     end
diff --git a/stack_master.gemspec b/stack_master.gemspec
index 69de0bcb..dd6a1d95 100644
--- a/stack_master.gemspec
+++ b/stack_master.gemspec
@@ -51,7 +51,7 @@ Gem::Specification.new do |spec|
   spec.add_dependency "sparkle_formation", "~> 3"
   spec.add_dependency "table_print"
   spec.add_dependency "deep_merge"
-  spec.add_dependency "cfndsl", "< 1.0"
+  spec.add_dependency "cfndsl", "~> 1"
   spec.add_dependency "multi_json"
   spec.add_dependency "hashdiff", "~> 1"
   spec.add_dependency "ejson_wrapper"