diff --git a/bin/pungi-koji b/bin/pungi-koji
index 46f2fdc5..632ab00a 100755
--- a/bin/pungi-koji
+++ b/bin/pungi-koji
@@ -18,7 +18,7 @@ if here != '/usr/bin':
     # Git checkout
     sys.path[0] = os.path.dirname(here)
 
-from pungi import __version__
+from pungi import get_full_version
 
 
 # force C locales
@@ -123,7 +123,7 @@ def main():
     opts, args = parser.parse_args()
 
     if opts.version:
-        print("pungi %s" % __version__)
+        print("pungi %s" % get_full_version())
         sys.exit(0)
 
     if opts.target_dir and opts.compose_dir:
@@ -208,6 +208,7 @@ def run_compose(compose):
 
     compose.write_status("STARTED")
     compose.log_info("Host: %s" % socket.gethostname())
+    compose.log_info("Pungi version: %s" % get_full_version())
     compose.log_info("User name: %s" % getpass.getuser())
     compose.log_info("Working directory: %s" % os.getcwd())
     compose.log_info("Command line: %s" % " ".join([pipes.quote(arg) for arg in sys.argv]))
diff --git a/pungi/__init__.py b/pungi/__init__.py
index b777be95..328c61b8 100644
--- a/pungi/__init__.py
+++ b/pungi/__init__.py
@@ -1 +1,24 @@
-__version__ = "4.0"
+# -*- coding: utf-8 -*-
+
+import os
+import re
+
+
+def get_full_version():
+    """
+    Find full version of Pungi: if running from git, this will return cleaned
+    output of `git describe`, otherwise it will look for installed version.
+    """
+    location = os.path.join(os.path.dirname(os.path.realpath(__file__)), '..')
+    if os.path.isdir(os.path.join(location, '.git')):
+        import subprocess
+        proc = subprocess.Popen(['git', '-C', location, 'describe', '--tags'],
+                                stdout=subprocess.PIPE)
+        output, _ = proc.communicate()
+        return re.sub(r'-1.fc\d\d?', '', output.strip().replace('pungi-', ''))
+    else:
+        import pkg_resources
+        try:
+            return pkg_resources.get_distribution('pungi').version
+        except pkg_resources.DistributionNotFound:
+            return 'unknown'
diff --git a/setup.py b/setup.py
index 666fd436..171b762f 100755
--- a/setup.py
+++ b/setup.py
@@ -25,7 +25,7 @@ packages = sorted(packages)
 
 setup(
     name            = "pungi",
-    version         = "4.1.8",  # make sure it matches with pungi.__version__
+    version         = "4.1.8",
     description     = "Distribution compose tool",
     url             = "https://pagure.io/pungi",
     author          = "Dennis Gilmore",