diff --git a/changelog.md b/changelog.md
index 55e745ba..b1570640 100644
--- a/changelog.md
+++ b/changelog.md
@@ -12,6 +12,7 @@ Saves from 6.x are not compatible with 7.0.
 * **[Mission Generation]** The A-10C II now uses separate radios for inter- and intra-flight comms (similar to other modern aircraft).
 * **[Modding]** Updated Community A-4E-C mod version support to 2.1.0 release.
 * **[Modding]** Add support for VSN F-4B and F-4C mod.
+* **[Modding]** Custom factions can now be defined in YAML as well as JSON. JSON support may be removed in the future if having both formats causes confusion.
 
 ## Fixes
 
diff --git a/game/factions/faction.py b/game/factions/faction.py
index 26eb3529..8bab8211 100644
--- a/game/factions/faction.py
+++ b/game/factions/faction.py
@@ -4,33 +4,32 @@ import itertools
 import logging
 from dataclasses import dataclass, field
 from functools import cached_property
-from typing import Optional, Dict, Type, List, Any, Iterator, TYPE_CHECKING
+from typing import Any, Dict, Iterator, List, Optional, TYPE_CHECKING, Type
 
 import dcs
 from dcs.countries import country_dict
-from dcs.unittype import ShipType, StaticType
-from dcs.unittype import UnitType as DcsUnitType
+from dcs.unittype import ShipType, StaticType, UnitType as DcsUnitType
 
+from game.armedforces.forcegroup import ForceGroup
 from game.data.building_data import (
-    WW2_ALLIES_BUILDINGS,
     DEFAULT_AVAILABLE_BUILDINGS,
-    WW2_GERMANY_BUILDINGS,
-    WW2_FREE,
-    REQUIRED_BUILDINGS,
     IADS_BUILDINGS,
+    REQUIRED_BUILDINGS,
+    WW2_ALLIES_BUILDINGS,
+    WW2_FREE,
+    WW2_GERMANY_BUILDINGS,
 )
 from game.data.doctrine import (
+    COLDWAR_DOCTRINE,
     Doctrine,
     MODERN_DOCTRINE,
-    COLDWAR_DOCTRINE,
     WWII_DOCTRINE,
 )
-from game.data.units import UnitClass
 from game.data.groups import GroupRole
+from game.data.units import UnitClass
 from game.dcs.aircrafttype import AircraftType
 from game.dcs.groundunittype import GroundUnitType
 from game.dcs.shipunittype import ShipUnitType
-from game.armedforces.forcegroup import ForceGroup
 from game.dcs.unittype import UnitType
 
 if TYPE_CHECKING:
@@ -168,7 +167,7 @@ class Faction:
         return sorted(air_defenses)
 
     @classmethod
-    def from_json(cls: Type[Faction], json: Dict[str, Any]) -> Faction:
+    def from_dict(cls: Type[Faction], json: Dict[str, Any]) -> Faction:
         faction = Faction(locales=json.get("locales"))
 
         faction.country = json.get("country", "/")
diff --git a/game/factions/factions.py b/game/factions/factions.py
index c22a2cae..99ae5449 100644
--- a/game/factions/factions.py
+++ b/game/factions/factions.py
@@ -5,6 +5,8 @@ import logging
 from collections.abc import Iterator
 from pathlib import Path
 
+import yaml
+
 from game import persistence
 from .faction import Faction
 
@@ -22,6 +24,7 @@ class Factions:
     @staticmethod
     def iter_faction_files_in(path: Path) -> Iterator[Path]:
         yield from path.glob("*.json")
+        yield from path.glob("*.yaml")
 
     @classmethod
     def iter_faction_files(cls) -> Iterator[Path]:
@@ -36,8 +39,11 @@ class Factions:
         for path in cls.iter_faction_files():
             try:
                 with path.open("r", encoding="utf-8") as fdata:
-                    data = json.load(fdata)
-                    faction = Faction.from_json(data)
+                    if path.suffix == ".yaml":
+                        data = yaml.safe_load(fdata)
+                    else:
+                        data = json.load(fdata)
+                    faction = Faction.from_dict(data)
                     factions[faction.name] = faction
                     logging.info("Loaded faction from %s", path)
             except Exception:
diff --git a/tests/test_factions.py b/tests/test_factions.py
index bec4c278..58e20667 100644
--- a/tests/test_factions.py
+++ b/tests/test_factions.py
@@ -1,40 +1,33 @@
 import json
-from pathlib import Path
 import unittest
-import pytest
+from pathlib import Path
 
-from dcs.helicopters import UH_1H, AH_64A
+import pytest
+from dcs.helicopters import AH_64A, UH_1H
 from dcs.planes import (
-    F_15C,
-    F_15E,
-    F_14B,
-    FA_18C_hornet,
-    F_16C_50,
-    A_10A,
     AV8BNA,
-    B_52H,
-    B_1B,
-    F_117A,
-    MQ_9_Reaper,
-    E_3A,
-    E_2C,
-    KC130,
-    KC_135,
+    A_10A,
     A_10C,
     A_10C_2,
+    B_1B,
+    B_52H,
+    E_2C,
+    E_3A,
+    FA_18C_hornet,
+    F_117A,
+    F_14B,
+    F_15C,
+    F_15E,
+    F_16C_50,
+    KC130,
+    KC_135,
+    MQ_9_Reaper,
 )
-from dcs.ships import (
-    Stennis,
-    LHA_Tarawa,
-    PERRY,
-    USS_Arleigh_Burke_IIa,
-    TICONDEROG,
-)
-from dcs.vehicles import Armor, Unarmed, Infantry, Artillery
+from dcs.ships import LHA_Tarawa, Stennis
+from dcs.vehicles import Armor, Artillery, Infantry, Unarmed
 
 from game.factions.faction import Faction
 
-
 THIS_DIR = Path(__file__).parent
 RESOURCES_DIR = THIS_DIR / "resources"
 
@@ -46,7 +39,7 @@ class TestFactionLoader(unittest.TestCase):
     @pytest.mark.skip(reason="Faction unit names in the json files are outdated")
     def test_load_valid_faction(self) -> None:
         with (RESOURCES_DIR / "valid_faction.json").open("r") as data:
-            faction = Faction.from_json(json.load(data))
+            faction = Faction.from_dict(json.load(data))
 
             self.assertEqual(faction.country, "USA")
             self.assertEqual(faction.name, "USA 2005")
@@ -109,7 +102,7 @@ class TestFactionLoader(unittest.TestCase):
 
         with (RESOURCES_DIR / "invalid_faction_country.json").open("r") as data:
             try:
-                Faction.from_json(json.load(data))
+                Faction.from_dict(json.load(data))
                 self.fail("Should have thrown assertion error")
             except AssertionError as e:
                 pass