diff --git a/flask/cli.py b/flask/cli.py
index e6e8f65f..befa29d3 100644
--- a/flask/cli.py
+++ b/flask/cli.py
@@ -9,7 +9,10 @@
     :license: BSD, see LICENSE for more details.
 """
 
+import ast
+import inspect
 import os
+import re
 import sys
 import traceback
 from functools import update_wrapper
@@ -55,20 +58,20 @@ def find_best_app(script_info, module):
             ' one.'.format(module=module.__name__)
         )
 
-    # Search for app factory callables.
+    # Search for app factory functions.
     for attr_name in ('create_app', 'make_app'):
         app_factory = getattr(module, attr_name, None)
 
-        if callable(app_factory):
+        if inspect.isfunction(app_factory):
             try:
                 app = call_factory(app_factory, script_info)
                 if isinstance(app, Flask):
                     return app
             except TypeError:
                 raise NoAppException(
-                    'Auto-detected "{callable}()" in module "{module}", but '
+                    'Auto-detected "{function}()" in module "{module}", but '
                     'could not call it without specifying arguments.'.format(
-                        callable=attr_name, module=module.__name__
+                        function=attr_name, module=module.__name__
                     )
                 )
 
@@ -150,10 +153,45 @@ def locate_app(script_info, app_id):
     if app_obj is None:
         app = find_best_app(script_info, mod)
     else:
-        app = getattr(mod, app_obj, None)
+        function_regex = r'^([\w_][\w_\d]*)\((.*)\)$'
+        match = re.match(function_regex, app_obj)
+        try:
+            if match:
+                function_name = match.group(1)
+                arguments = match.group(2)
+                if arguments:
+                    arguments = ast.literal_eval(
+                        "({arguments}, )".format(arguments=arguments))
+                else:
+                    arguments = ()
+                app_factory = getattr(mod, function_name, None)
+                app_factory_arg_names = getargspec(app_factory).args
+                if 'script_info' in app_factory_arg_names:
+                    app = app_factory(*arguments, script_info=script_info)
+                elif arguments:
+                    app = app_factory(*arguments)
+                elif not arguments and len(app_factory_arg_names) == 1:
+                    app = app_factory(script_info)
+                else:
+                    app = app_factory()
+            else:
+                attr = getattr(mod, app_obj, None)
+                if inspect.isfunction(attr):
+                    app = call_factory(attr, script_info)
+                else:
+                    app = attr
+        except TypeError as e:
+            new_error = NoAppException(
+                '{e}\nThe app factory "{factory}" in module "{module}" could'
+                ' not be called with the specified arguments (and a'
+                ' script_info argument automatically added if applicable).'
+                ' Did you make sure to use the right number of arguments as'
+                ' well as not using keyword arguments or'
+                ' non-literals?'.format(e=e, factory=app_obj, module=module))
+            reraise(NoAppException, new_error, sys.exc_info()[2])
         if app is None:
-            raise RuntimeError('Failed to find application in module "%s"'
-                               % module)
+            raise RuntimeError('Failed to find application in module '
+                               '"{name}"'.format(name=module))
 
     return app
 
diff --git a/tests/test_apps/cliapp/factory.py b/tests/test_apps/cliapp/factory.py
new file mode 100644
index 00000000..b0d4771e
--- /dev/null
+++ b/tests/test_apps/cliapp/factory.py
@@ -0,0 +1,15 @@
+from __future__ import absolute_import, print_function
+
+from flask import Flask
+
+
+def create_app():
+    return Flask('create_app')
+
+
+def create_app2(foo, bar):
+    return Flask("_".join(['create_app2', foo, bar]))
+
+
+def create_app3(foo, bar, script_info):
+    return Flask("_".join(['create_app3', foo, bar]))
diff --git a/tests/test_cli.py b/tests/test_cli.py
index 459d6ef9..4f92f50d 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -150,15 +150,31 @@ def test_locate_app(test_apps):
     script_info = ScriptInfo()
     assert locate_app(script_info, "cliapp.app").name == "testapp"
     assert locate_app(script_info, "cliapp.app:testapp").name == "testapp"
+    assert locate_app(script_info, "cliapp.factory").name == "create_app"
+    assert locate_app(
+        script_info, "cliapp.factory").name == "create_app"
+    assert locate_app(
+        script_info, "cliapp.factory:create_app").name == "create_app"
+    assert locate_app(
+        script_info, "cliapp.factory:create_app()").name == "create_app"
+    assert locate_app(
+        script_info, "cliapp.factory:create_app2('foo', 'bar')"
+    ).name == "create_app2_foo_bar"
+    assert locate_app(
+        script_info, "cliapp.factory:create_app3('baz', 'qux')"
+    ).name == "create_app3_baz_qux"
     assert locate_app(script_info, "cliapp.multiapp:app1").name == "app1"
-    pytest.raises(NoAppException, locate_app,
-                  script_info, "notanpp.py")
-    pytest.raises(NoAppException, locate_app,
-                  script_info, "cliapp/app")
-    pytest.raises(RuntimeError, locate_app,
-                  script_info, "cliapp.app:notanapp")
-    pytest.raises(NoAppException, locate_app,
-                  script_info, "cliapp.importerrorapp")
+    pytest.raises(
+        NoAppException, locate_app, script_info, "notanpp.py")
+    pytest.raises(
+        NoAppException, locate_app, script_info, "cliapp/app")
+    pytest.raises(
+        RuntimeError, locate_app, script_info, "cliapp.app:notanapp")
+    pytest.raises(
+        NoAppException, locate_app,
+        script_info, "cliapp.factory:create_app2('foo')")
+    pytest.raises(
+        NoAppException, locate_app, script_info, "cliapp.importerrorapp")
 
 
 def test_find_default_import_path(test_apps, monkeypatch, tmpdir):