diff --git a/docs/source/common/trainer.rst b/docs/source/common/trainer.rst
index 36dda97917e03..5ab86678ad015 100644
--- a/docs/source/common/trainer.rst
+++ b/docs/source/common/trainer.rst
@@ -184,12 +184,16 @@ Example::
 
     from pytorch_lightning import Trainer, seed_everything
 
-    seed_everything(42)
+    seed_everything(42, workers=True)
     # sets seeds for numpy, torch, python.random and PYTHONHASHSEED.
     model = Model()
     trainer = Trainer(deterministic=True)
 
 
+By setting ``workers=True`` in :func:`~pytorch_lightning.utilities.seed.seed_everything`, Lightning derives
+unique seeds across all dataloader workers and processes for :mod:`torch`, :mod:`numpy` and stdlib
+:mod:`random` number generators. When turned on, it ensures that e.g. data augmentations are not repeated across workers.
+
 -------
 
 Trainer flags
diff --git a/pytorch_lightning/trainer/data_loading.py b/pytorch_lightning/trainer/data_loading.py
index 8fd39dfe94a89..a361f6e6203c2 100644
--- a/pytorch_lightning/trainer/data_loading.py
+++ b/pytorch_lightning/trainer/data_loading.py
@@ -16,6 +16,7 @@
 import os
 from abc import ABC
 from copy import deepcopy
+from functools import partial
 from typing import Iterable, List, Optional, Tuple, Union
 
 from torch.utils.data import BatchSampler, DataLoader, RandomSampler, SequentialSampler
@@ -31,6 +32,7 @@
 from pytorch_lightning.utilities.debugging import InternalDebugger
 from pytorch_lightning.utilities.exceptions import MisconfigurationException
 from pytorch_lightning.utilities.model_helpers import is_overridden
+from pytorch_lightning.utilities.seed import pl_worker_init_function
 
 
 class TrainerDataLoadingMixin(ABC):
@@ -101,6 +103,10 @@ def _worker_check(self, dataloader: DataLoader, name: str) -> None:
                 f' in the `DataLoader` init to improve performance.'
             )
 
+    def auto_add_worker_init_fn(self, dataloader: DataLoader) -> None:
+        if int(os.environ.get("PL_SEED_WORKERS", 0)) and dataloader.worker_init_fn is None:
+            dataloader.worker_init_fn = partial(pl_worker_init_function, rank=self.global_rank)
+
     def auto_add_sampler(self, dataloader: DataLoader, shuffle: bool) -> DataLoader:
 
         # don't do anything if it's not a dataloader
@@ -234,6 +240,9 @@ def reset_train_dataloader(self, model: LightningModule) -> None:
         # check the workers recursively
         apply_to_collection(self.train_dataloader, DataLoader, self._worker_check, 'train dataloader')
 
+        # add worker_init_fn for correct seeding in worker processes
+        apply_to_collection(self.train_dataloader, DataLoader, self.auto_add_worker_init_fn)
+
         # wrap the sequence of train loaders to a CombinedLoader object for computing the num_training_batches
         self.train_dataloader = CombinedLoader(self.train_dataloader, self._multiple_trainloader_mode)
 
@@ -332,6 +341,9 @@ def _reset_eval_dataloader(
         # add samplers
         dataloaders = [self.auto_add_sampler(dl, shuffle=False) for dl in dataloaders if dl is not None]
 
+        # add worker_init_fn for correct seeding in worker processes
+        apply_to_collection(dataloaders, dtype=DataLoader, function=self.auto_add_worker_init_fn)
+
         loader_num_batches = []
 
         # determine number of batches
diff --git a/pytorch_lightning/utilities/seed.py b/pytorch_lightning/utilities/seed.py
index c3da02b7d2cdb..b7eaba72c1b02 100644
--- a/pytorch_lightning/utilities/seed.py
+++ b/pytorch_lightning/utilities/seed.py
@@ -21,22 +21,29 @@
 import numpy as np
 import torch
 
-from pytorch_lightning.utilities import rank_zero_warn
+from pytorch_lightning.utilities import _TORCH_GREATER_EQUAL_1_7, rank_zero_warn
+from pytorch_lightning.utilities.distributed import rank_zero_only
 
 log = logging.getLogger(__name__)
 
 
-def seed_everything(seed: Optional[int] = None) -> int:
+def seed_everything(seed: Optional[int] = None, workers: bool = False) -> int:
     """
     Function that sets seed for pseudo-random number generators in:
     pytorch, numpy, python.random
-    In addition, sets the env variable `PL_GLOBAL_SEED` which will be passed to
-    spawned subprocesses (e.g. ddp_spawn backend).
+    In addition, sets the following environment variables:
+
+    - `PL_GLOBAL_SEED`: will be passed to spawned subprocesses (e.g. ddp_spawn backend).
+    - `PL_SEED_WORKERS`: (optional) is set to 1 if ```workers=True``.
 
     Args:
         seed: the integer value seed for global random state in Lightning.
             If `None`, will read seed from `PL_GLOBAL_SEED` env variable
             or select it randomly.
+        workers: if set to ``True``, will properly configure all dataloaders passed to the
+            Trainer with a ``worker_init_fn``. If the user already provides such a function
+            for their dataloaders, setting this argument will have no influence. See also:
+            :func:`~pytorch_lightning.utilities.seed.pl_worker_init_function`.
     """
     max_seed_value = np.iinfo(np.uint32).max
     min_seed_value = np.iinfo(np.uint32).min
@@ -61,8 +68,36 @@ def seed_everything(seed: Optional[int] = None) -> int:
     np.random.seed(seed)
     torch.manual_seed(seed)
     torch.cuda.manual_seed_all(seed)
+
+    os.environ["PL_SEED_WORKERS"] = f"{int(workers)}"
+
     return seed
 
 
 def _select_seed_randomly(min_seed_value: int = 0, max_seed_value: int = 255) -> int:
     return random.randint(min_seed_value, max_seed_value)
+
+
+def pl_worker_init_function(worker_id: int, rank: Optional = None) -> None:  # pragma: no cover
+    """
+    The worker_init_fn that Lightning automatically adds to your dataloader if you previously set
+    set the seed with ``seed_everything(seed, workers=True)``.
+    See also the PyTorch documentation on
+    `randomness in DataLoaders <https://pytorch.org/docs/stable/notes/randomness.html#dataloader>`_.
+    """
+    # implementation notes: https://github.com/pytorch/pytorch/issues/5059#issuecomment-817392562
+    global_rank = rank if rank is not None else rank_zero_only.rank
+    process_seed = torch.initial_seed()
+    # back out the base seed so we can use all the bits
+    base_seed = process_seed - worker_id
+    ss = np.random.SeedSequence([base_seed, worker_id, global_rank])
+    # use 128 bits (4 x 32-bit words)
+    np.random.seed(ss.generate_state(4))
+    # Spawn distinct SeedSequences for the PyTorch PRNG and the stdlib random module
+    torch_ss, stdlib_ss = ss.spawn(2)
+    # PyTorch 1.7 and above takes a 64-bit seed
+    dtype = np.uint64 if _TORCH_GREATER_EQUAL_1_7 else np.uint32
+    torch.manual_seed(torch_ss.generate_state(1, dtype=dtype)[0])
+    # use 128 bits expressed as an integer
+    stdlib_seed = (stdlib_ss.generate_state(2, dtype=np.uint64).astype(object) * [1 << 64, 1]).sum()
+    random.seed(stdlib_seed)
diff --git a/requirements.txt b/requirements.txt
index 3faed306a488a..3438b1ea2189b 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,6 +1,6 @@
 # the default package dependencies
 
-numpy>=1.16.6
+numpy>=1.17.2
 torch>=1.4
 future>=0.17.1  # required for builtins in setup.py
 # pyyaml>=3.13
diff --git a/tests/trainer/test_data_loading.py b/tests/trainer/test_data_loading.py
index 382311c107958..831fc474336b6 100644
--- a/tests/trainer/test_data_loading.py
+++ b/tests/trainer/test_data_loading.py
@@ -11,7 +11,6 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
-
 import pytest
 from torch.utils.data import DataLoader
 from torch.utils.data.sampler import BatchSampler, SequentialSampler
@@ -72,7 +71,7 @@ def test_dataloader(self):
         return [self.create_dataset()] * self._numbers_test_dataloaders
 
 
-def check_replace_distrubuted_sampler(tmpdir, save_preds_on_dl_idx, accelerator, gpus, num_dl_idx, mode):
+def check_replace_distributed_sampler(tmpdir, save_preds_on_dl_idx, accelerator, gpus, num_dl_idx, mode):
     num_processes = 2
     limit_test_batches = 2
     trainer_args = {
@@ -100,8 +99,8 @@ def check_replace_distrubuted_sampler(tmpdir, save_preds_on_dl_idx, accelerator,
 
 @RunIf(min_gpus=2, special=True)
 @pytest.mark.parametrize("mode", [1, 2])
-def test_replace_distrubuted_sampler_custom_dataloader_custom_batch_sampler(tmpdir, mode):
-    check_replace_distrubuted_sampler(tmpdir, True, "ddp", 2, 2, mode)
+def test_replace_distributed_sampler_custom_dataloader_custom_batch_sampler(tmpdir, mode):
+    check_replace_distributed_sampler(tmpdir, True, "ddp", 2, 2, mode)
 
 
 @pytest.mark.parametrize("num_workers", [0, 1])
diff --git a/tests/trainer/test_dataloaders.py b/tests/trainer/test_dataloaders.py
index 89793ba71ed14..de3e83b54001a 100644
--- a/tests/trainer/test_dataloaders.py
+++ b/tests/trainer/test_dataloaders.py
@@ -13,12 +13,13 @@
 # limitations under the License.
 import os
 from unittest import mock
-from unittest.mock import patch
+from unittest.mock import Mock, patch
 
+import numpy
 import pytest
 import torch
 from torch.utils.data.dataloader import DataLoader
-from torch.utils.data.dataset import IterableDataset, Subset
+from torch.utils.data.dataset import Dataset, IterableDataset, Subset
 from torch.utils.data.distributed import DistributedSampler
 from torch.utils.data.sampler import SequentialSampler
 
@@ -635,6 +636,109 @@ def test_warning_with_few_workers_multi_loader(_, tmpdir, ckpt_path, stage):
             trainer.fit(model, train_dataloader=train_multi_dl, val_dataloaders=val_multi_dl)
 
 
+class NumpyRandomDataset(Dataset):
+    # this datset uses numpy instead of torch to produce random numbers
+    size = 16
+
+    def __getitem__(self, index):
+        return numpy.random.randint(0, 100, 3)
+
+    def __len__(self):
+        return self.size
+
+
+def _user_worker_init_fn(_):
+    pass
+
+
+def test_missing_worker_init_fn():
+    """ Test that naive worker seed initialization leads to undesired random state in subprocesses. """
+    dataset = NumpyRandomDataset()
+
+    seed_everything(0)
+    dataloader = DataLoader(dataset, batch_size=2, num_workers=2, shuffle=False)
+    batches0 = torch.cat([batch for batch in dataloader])
+
+    seed_everything(0)
+    dataloader = DataLoader(dataset, batch_size=2, num_workers=2, shuffle=False)
+    batches1 = torch.cat([batch for batch in dataloader])
+
+    is_duplicated = len(torch.unique(batches1, dim=0)) < len(dataset)
+    is_deterministic = torch.eq(batches0, batches1).all()
+
+    # depending on the OS, we either have
+    # 1) the same seed in all worker proceses, producing duplicate samples / augmentations, or
+    # 2) different seeds in each worker process, but they are not derived from the seed of the main process
+    assert not is_deterministic or is_duplicated
+
+
+def test_auto_add_worker_init_fn():
+    """ Test Trainer adds a default worker_init_fn to the dataloader when seed_everything() is used. """
+    dataset = Mock()
+    dataloader = DataLoader(dataset)
+    trainer = Trainer()
+
+    # without pl.seed_everything()
+    trainer.auto_add_worker_init_fn(dataloader)
+    assert dataloader.worker_init_fn is None
+
+    # with forcefully avoiding it
+    seed_everything(0, workers=False)
+    trainer.auto_add_worker_init_fn(dataloader)
+    assert dataloader.worker_init_fn is None
+
+    # when user already has a worker_init_fn
+    user_function = _user_worker_init_fn
+    dataloader.worker_init_fn = user_function
+    trainer.auto_add_worker_init_fn(dataloader)
+    assert dataloader.worker_init_fn is user_function
+    dataloader.worker_init_fn = None
+
+    # main use case
+    seed_everything(0, workers=True)
+    trainer.auto_add_worker_init_fn(dataloader)
+    assert dataloader.worker_init_fn is not None
+
+
+class MultiProcessModel(BoringModel):
+
+    def __init__(self):
+        super().__init__()
+        self.batches_seen = []
+
+    def training_step(self, batch, batch_idx):
+        self.batches_seen.append(batch)
+
+    def training_epoch_end(self, outputs):
+        world_size = 2
+        num_samples = NumpyRandomDataset.size
+        all_batches = torch.cat(self.batches_seen)
+        all_batches = self.all_gather(all_batches)
+        assert all_batches.shape[0] == world_size
+        all_batches = all_batches.view(-1, 3)
+        assert len(torch.unique(all_batches, dim=0)) == num_samples
+
+
+@RunIf(min_gpus=2)
+def test_auto_add_worker_init_fn_distributed(tmpdir, monkeypatch):
+    """ Test that the lightning worker_init_fn takes care of dataloaders in multi-gpu/multi-node training. """
+    dataset = NumpyRandomDataset()
+    num_workers = 2
+    batch_size = 2
+
+    dataloader = DataLoader(dataset, batch_size=batch_size, num_workers=num_workers)
+    seed_everything(0, workers=True)
+    trainer = Trainer(
+        default_root_dir=tmpdir,
+        max_epochs=1,
+        gpus=2,
+        accelerator="ddp_spawn",
+    )
+    model = MultiProcessModel()
+    model.val_dataloader = None
+    trainer.fit(model, train_dataloader=dataloader)
+
+
 def test_warning_with_iterable_dataset_and_len(tmpdir):
     """ Tests that a warning message is shown when an IterableDataset defines `__len__`. """
     model = BoringModel()