diff --git a/aws/resource_aws_instance.go b/aws/resource_aws_instance.go
index 52e088e2c8e..29024e1ebc5 100644
--- a/aws/resource_aws_instance.go
+++ b/aws/resource_aws_instance.go
@@ -822,11 +822,20 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 		if _, ok := d.GetOk("iam_instance_profile"); ok {
 			// Does not have an Iam Instance Profile associated with it, need to associate
 			if len(resp.IamInstanceProfileAssociations) == 0 {
-				_, err := conn.AssociateIamInstanceProfile(&ec2.AssociateIamInstanceProfileInput{
-					InstanceId: aws.String(d.Id()),
-					IamInstanceProfile: &ec2.IamInstanceProfileSpecification{
-						Name: aws.String(d.Get("iam_instance_profile").(string)),
-					},
+				err := resource.Retry(1*time.Minute, func() *resource.RetryError {
+					_, err := conn.AssociateIamInstanceProfile(&ec2.AssociateIamInstanceProfileInput{
+						InstanceId: aws.String(d.Id()),
+						IamInstanceProfile: &ec2.IamInstanceProfileSpecification{
+							Name: aws.String(d.Get("iam_instance_profile").(string)),
+						},
+					})
+					if err != nil {
+						if isAWSErr(err, "InvalidParameterValue", "Invalid IAM Instance Profile") {
+							return resource.RetryableError(err)
+						}
+						return resource.NonRetryableError(err)
+					}
+					return nil
 				})
 				if err != nil {
 					return err
@@ -836,11 +845,20 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 				// Has an Iam Instance Profile associated with it, need to replace the association
 				associationId := resp.IamInstanceProfileAssociations[0].AssociationId
 
-				_, err := conn.ReplaceIamInstanceProfileAssociation(&ec2.ReplaceIamInstanceProfileAssociationInput{
-					AssociationId: associationId,
-					IamInstanceProfile: &ec2.IamInstanceProfileSpecification{
-						Name: aws.String(d.Get("iam_instance_profile").(string)),
-					},
+				err := resource.Retry(1*time.Minute, func() *resource.RetryError {
+					_, err := conn.ReplaceIamInstanceProfileAssociation(&ec2.ReplaceIamInstanceProfileAssociationInput{
+						AssociationId: associationId,
+						IamInstanceProfile: &ec2.IamInstanceProfileSpecification{
+							Name: aws.String(d.Get("iam_instance_profile").(string)),
+						},
+					})
+					if err != nil {
+						if isAWSErr(err, "InvalidParameterValue", "Invalid IAM Instance Profile") {
+							return resource.RetryableError(err)
+						}
+						return resource.NonRetryableError(err)
+					}
+					return nil
 				})
 				if err != nil {
 					return err
diff --git a/aws/resource_aws_instance_test.go b/aws/resource_aws_instance_test.go
index 0c9f9e52a99..f2632c2929d 100644
--- a/aws/resource_aws_instance_test.go
+++ b/aws/resource_aws_instance_test.go
@@ -2072,18 +2072,13 @@ resource "aws_iam_role" "test" {
 	assume_role_policy = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Effect\":\"Allow\",\"Principal\":{\"Service\":[\"ec2.amazonaws.com\"]},\"Action\":[\"sts:AssumeRole\"]}]}"
 }
 
-resource "aws_iam_instance_profile" "test" {
-	name = "test-%s"
-	roles = ["${aws_iam_role.test.name}"]
-}
-
 resource "aws_instance" "foo" {
 	ami = "ami-4fccb37f"
 	instance_type = "m1.small"
 	tags {
 		bar = "baz"
 	}
-}`, rName, rName)
+}`, rName)
 }
 
 func testAccInstanceConfigWithInstanceProfile(rName string) string {