diff --git a/builtin/providers/google/resource_compute_instance.go b/builtin/providers/google/resource_compute_instance.go
index 52b97c014..392a4de06 100644
--- a/builtin/providers/google/resource_compute_instance.go
+++ b/builtin/providers/google/resource_compute_instance.go
@@ -97,6 +97,13 @@ func resourceComputeInstance() *schema.Resource {
 				},
 			},
 
+			"can_ip_forward": &schema.Schema{
+				Type:     schema.TypeBool,
+				Optional: true,
+				Default:  false,
+				ForceNew: true,
+			},
+
 			"metadata": &schema.Schema{
 				Type:     schema.TypeList,
 				Optional: true,
@@ -230,6 +237,7 @@ func resourceComputeInstanceCreate(d *schema.ResourceData, meta interface{}) err
 
 	// Create the instance information
 	instance := compute.Instance{
+		CanIpForward:      d.Get("can_ip_forward").(bool),
 		Description:       d.Get("description").(string),
 		Disks:             disks,
 		MachineType:       machineType.SelfLink,
@@ -305,6 +313,8 @@ func resourceComputeInstanceRead(d *schema.ResourceData, meta interface{}) error
 		return fmt.Errorf("Error reading instance: %s", err)
 	}
 
+	d.Set("can_ip_forward", instance.CanIpForward)
+
 	// Set the networks
 	for i, iface := range instance.NetworkInterfaces {
 		prefix := fmt.Sprintf("network.%d", i)
diff --git a/builtin/providers/google/resource_compute_instance_test.go b/builtin/providers/google/resource_compute_instance_test.go
index 8759cf94f..bedd64f6a 100644
--- a/builtin/providers/google/resource_compute_instance_test.go
+++ b/builtin/providers/google/resource_compute_instance_test.go
@@ -225,6 +225,7 @@ resource "google_compute_instance" "foobar" {
 	name = "terraform-test"
 	machine_type = "n1-standard-1"
 	zone = "us-central1-a"
+	can_ip_forward = false
 	tags = ["foo", "bar"]
 
 	disk {
diff --git a/website/source/docs/providers/google/r/compute_instance.html.markdown b/website/source/docs/providers/google/r/compute_instance.html.markdown
index c9f0bd896..3511d51ec 100644
--- a/website/source/docs/providers/google/r/compute_instance.html.markdown
+++ b/website/source/docs/providers/google/r/compute_instance.html.markdown
@@ -47,6 +47,10 @@ The following arguments are supported:
 * `disk` - (Required) Disks to attach to the instance. This can be specified
     multiple times for multiple disks. Structure is documented below.
 
+* `can_ip_forward` - (Optional) Whether to allow sending and receiving of
+    packets with non-matching source or destination IPs.
+    This defaults to false.
+
 * `metadata` - (Optional) Metadata key/value pairs to make available from
     within the instance.