diff --git a/builtin/providers/aws/resource_aws_instance.go b/builtin/providers/aws/resource_aws_instance.go
index cf13619c0333..9307c13673ce 100644
--- a/builtin/providers/aws/resource_aws_instance.go
+++ b/builtin/providers/aws/resource_aws_instance.go
@@ -147,6 +147,11 @@ func resourceAwsInstance() *schema.Resource {
 				Optional: true,
 			},
 
+			"instance_initiated_shutdown_behavior": &schema.Schema{
+				Type:     schema.TypeString,
+				Optional: true,
+			},
+
 			"monitoring": &schema.Schema{
 				Type:     schema.TypeBool,
 				Optional: true,
@@ -331,17 +336,18 @@ func resourceAwsInstanceCreate(d *schema.ResourceData, meta interface{}) error {
 		Monitoring:            instanceOpts.Monitoring,
 		IamInstanceProfile:    instanceOpts.IAMInstanceProfile,
 		ImageId:               instanceOpts.ImageID,
-		InstanceType:          instanceOpts.InstanceType,
-		KeyName:               instanceOpts.KeyName,
-		MaxCount:              aws.Int64(int64(1)),
-		MinCount:              aws.Int64(int64(1)),
-		NetworkInterfaces:     instanceOpts.NetworkInterfaces,
-		Placement:             instanceOpts.Placement,
-		PrivateIpAddress:      instanceOpts.PrivateIPAddress,
-		SecurityGroupIds:      instanceOpts.SecurityGroupIDs,
-		SecurityGroups:        instanceOpts.SecurityGroups,
-		SubnetId:              instanceOpts.SubnetID,
-		UserData:              instanceOpts.UserData64,
+		InstanceInitiatedShutdownBehavior: instanceOpts.InstanceInitiatedShutdownBehavior,
+		InstanceType:                      instanceOpts.InstanceType,
+		KeyName:                           instanceOpts.KeyName,
+		MaxCount:                          aws.Int64(int64(1)),
+		MinCount:                          aws.Int64(int64(1)),
+		NetworkInterfaces:                 instanceOpts.NetworkInterfaces,
+		Placement:                         instanceOpts.Placement,
+		PrivateIpAddress:                  instanceOpts.PrivateIPAddress,
+		SecurityGroupIds:                  instanceOpts.SecurityGroupIDs,
+		SecurityGroups:                    instanceOpts.SecurityGroups,
+		SubnetId:                          instanceOpts.SubnetID,
+		UserData:                          instanceOpts.UserData64,
 	}
 
 	// Create the instance
@@ -578,6 +584,19 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 		}
 	}
 
+	if d.HasChange("instance_initiated_shutdown_behavior") {
+		log.Printf("[INFO] Modifying instance %s", d.Id())
+		_, err := conn.ModifyInstanceAttribute(&ec2.ModifyInstanceAttributeInput{
+			InstanceId: aws.String(d.Id()),
+			InstanceInitiatedShutdownBehavior: &ec2.AttributeValue{
+				Value: aws.String(d.Get("instance_initiated_shutdown_behavior").(string)),
+			},
+		})
+		if err != nil {
+			return err
+		}
+	}
+
 	if d.HasChange("monitoring") {
 		var mErr error
 		if d.Get("monitoring").(bool) {
@@ -878,22 +897,23 @@ func readBlockDeviceMappingsFromConfig(
 }
 
 type awsInstanceOpts struct {
-	BlockDeviceMappings   []*ec2.BlockDeviceMapping
-	DisableAPITermination *bool
-	EBSOptimized          *bool
-	Monitoring            *ec2.RunInstancesMonitoringEnabled
-	IAMInstanceProfile    *ec2.IamInstanceProfileSpecification
-	ImageID               *string
-	InstanceType          *string
-	KeyName               *string
-	NetworkInterfaces     []*ec2.InstanceNetworkInterfaceSpecification
-	Placement             *ec2.Placement
-	PrivateIPAddress      *string
-	SecurityGroupIDs      []*string
-	SecurityGroups        []*string
-	SpotPlacement         *ec2.SpotPlacement
-	SubnetID              *string
-	UserData64            *string
+	BlockDeviceMappings               []*ec2.BlockDeviceMapping
+	DisableAPITermination             *bool
+	EBSOptimized                      *bool
+	Monitoring                        *ec2.RunInstancesMonitoringEnabled
+	IAMInstanceProfile                *ec2.IamInstanceProfileSpecification
+	ImageID                           *string
+	InstanceInitiatedShutdownBehavior *string
+	InstanceType                      *string
+	KeyName                           *string
+	NetworkInterfaces                 []*ec2.InstanceNetworkInterfaceSpecification
+	Placement                         *ec2.Placement
+	PrivateIPAddress                  *string
+	SecurityGroupIDs                  []*string
+	SecurityGroups                    []*string
+	SpotPlacement                     *ec2.SpotPlacement
+	SubnetID                          *string
+	UserData64                        *string
 }
 
 func buildAwsInstanceOpts(
@@ -907,6 +927,10 @@ func buildAwsInstanceOpts(
 		InstanceType:          aws.String(d.Get("instance_type").(string)),
 	}
 
+	if v := d.Get("instance_initiated_shutdown_behavior").(string); v != "" {
+		opts.InstanceInitiatedShutdownBehavior = aws.String(v)
+	}
+
 	opts.Monitoring = &ec2.RunInstancesMonitoringEnabled{
 		Enabled: aws.Bool(d.Get("monitoring").(bool)),
 	}
diff --git a/website/source/docs/providers/aws/r/instance.html.markdown b/website/source/docs/providers/aws/r/instance.html.markdown
index 22cbe68cd1c6..ac4b342fbe28 100644
--- a/website/source/docs/providers/aws/r/instance.html.markdown
+++ b/website/source/docs/providers/aws/r/instance.html.markdown
@@ -36,6 +36,10 @@ The following arguments are supported:
      EBS-optimized.
 * `disable_api_termination` - (Optional) If true, enables [EC2 Instance
      Termination Protection](https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/terminating-instances.html#Using_ChangingDisableAPITermination)
+* `instance_initiated_shutdown_behavior` - (Optional) Shutdown behavior for the 
+instance. Amazon defaults this to `stop` for EBS-backed instances and 
+`terminate` for instance-store instances. Cannot be set on instance-store 
+instances. See [Shutdown Behavior](http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/terminating-instances.html#Using_ChangingInstanceInitiatedShutdownBehavior) for more information.
 * `instance_type` - (Required) The type of instance to start
 * `key_name` - (Optional) The key name to use for the instance.
 * `monitoring` - (Optional) If true, the launched EC2 instance will have detailed monitoring enabled. (Available since v0.6.0)