diff --git a/builtin/providers/aws/resource_aws_instance.go b/builtin/providers/aws/resource_aws_instance.go
index 10e58ccea..c1f9261fb 100644
--- a/builtin/providers/aws/resource_aws_instance.go
+++ b/builtin/providers/aws/resource_aws_instance.go
@@ -124,6 +124,7 @@ func resourceAwsInstance() *schema.Resource {
 				ForceNew: true,
 				Optional: true,
 			},
+			"tags": tagsSchema(),
 		},
 	}
 }
@@ -247,6 +248,12 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 		// persist the change...
 	}
 
+	if err := setTags(ec2conn, d); err != nil {
+		return err
+	} else {
+		d.SetPartial("tags")
+	}
+
 	return nil
 }
 
@@ -322,6 +329,7 @@ func resourceAwsInstanceRead(d *schema.ResourceData, meta interface{}) error {
 	d.Set("private_ip", instance.PrivateIpAddress)
 	d.Set("subnet_id", instance.SubnetId)
 	d.Set("ebs_optimized", instance.EbsOptimized)
+	d.Set("tags", tagsToMap(instance.Tags))
 
 	// Determine whether we're referring to security groups with
 	// IDs or names. We use a heuristic to figure this out. By default,
diff --git a/builtin/providers/aws/resource_aws_instance_test.go b/builtin/providers/aws/resource_aws_instance_test.go
index ec679fe1b..58952c84d 100644
--- a/builtin/providers/aws/resource_aws_instance_test.go
+++ b/builtin/providers/aws/resource_aws_instance_test.go
@@ -64,6 +64,8 @@ func TestAccAWSInstance_normal(t *testing.T) {
 	})
 }
 
+
+
 func TestAccAWSInstance_sourceDestCheck(t *testing.T) {
 	var v ec2.Instance
 
@@ -122,6 +124,34 @@ func TestAccAWSInstance_vpc(t *testing.T) {
 	})
 }
 
+func TestAccInstance_tags(t *testing.T) {
+	var v ec2.Instance
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckInstanceDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: testAccCheckInstanceConfigTags,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckInstanceExists("aws_instance.foo", &v),
+					testAccCheckTags(&v.Tags, "foo", "bar"),
+				),
+			},
+
+			resource.TestStep{
+				Config: testAccCheckInstanceConfigTagsUpdate,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckInstanceExists("aws_instance.foo", &v),
+					testAccCheckTags(&v.Tags, "foo", ""),
+					testAccCheckTags(&v.Tags, "bar", "baz"),
+				),
+			},
+		},
+	})
+}
+
 func testAccCheckInstanceDestroy(s *terraform.State) error {
 	conn := testAccProvider.ec2conn
 
@@ -261,3 +291,18 @@ resource "aws_instance" "foo" {
 	associate_public_ip_address = true
 }
 `
+
+const testAccCheckInstanceConfigTags = `
+resource "aws_instance" "foo" {
+	tags {
+		foo = "bar"
+	}
+}
+`
+
+const testAccCheckInstanceConfigTagsUpdate = `
+resource "aws_vpc" "foo" {
+	tags {
+		bar = "baz"
+	}
+}
diff --git a/website/source/docs/providers/aws/r/instance.html.markdown b/website/source/docs/providers/aws/r/instance.html.markdown
index 169c0eef6..794e17c19 100644
--- a/website/source/docs/providers/aws/r/instance.html.markdown
+++ b/website/source/docs/providers/aws/r/instance.html.markdown
@@ -19,6 +19,16 @@ resource "aws_instance" "web" {
 }
 ```
 
+# Create a new instance of the ami-1234 on an m1.small node with an AWS Tag naming it "HelloWorld"
+resource "aws_instance" "web" {
+    ami = "ami-1234"
+    instance_type = "m1.small"
+    tags {
+        Name = "HelloWorld"
+    }
+}
+```
+
 ## Argument Reference
 
 The following arguments are supported:
@@ -41,6 +51,7 @@ The following arguments are supported:
 * `user_data` - (Optional) The user data to provide when launching the instance.
 * `iam_instance_profile` - (Optional) The IAM Instance Profile to
   launch the instance with.
+* `tags` - (Optional) A mapping of tags to assign to the resource.
 
 ## Attributes Reference