diff --git a/builtin/providers/aws/resource_aws_iam_group.go b/builtin/providers/aws/resource_aws_iam_group.go
index 45defaaaf9cb..8e29388235af 100644
--- a/builtin/providers/aws/resource_aws_iam_group.go
+++ b/builtin/providers/aws/resource_aws_iam_group.go
@@ -14,8 +14,7 @@ func resourceAwsIamGroup() *schema.Resource {
 	return &schema.Resource{
 		Create: resourceAwsIamGroupCreate,
 		Read:   resourceAwsIamGroupRead,
-		// TODO
-		//Update: resourceAwsIamGroupUpdate,
+		Update: resourceAwsIamGroupUpdate,
 		Delete: resourceAwsIamGroupDelete,
 
 		Schema: map[string]*schema.Schema{
@@ -30,13 +29,11 @@ func resourceAwsIamGroup() *schema.Resource {
 			"name": &schema.Schema{
 				Type:     schema.TypeString,
 				Required: true,
-				ForceNew: true,
 			},
 			"path": &schema.Schema{
 				Type:     schema.TypeString,
 				Optional: true,
 				Default:  "/",
-				ForceNew: true,
 			},
 		},
 	}
@@ -45,9 +42,10 @@ func resourceAwsIamGroup() *schema.Resource {
 func resourceAwsIamGroupCreate(d *schema.ResourceData, meta interface{}) error {
 	iamconn := meta.(*AWSClient).iamconn
 	name := d.Get("name").(string)
+	path := d.Get("path").(string)
 
 	request := &iam.CreateGroupInput{
-		Path:      aws.String(d.Get("path").(string)),
+		Path:      aws.String(path),
 		GroupName: aws.String(name),
 	}
 
@@ -60,9 +58,10 @@ func resourceAwsIamGroupCreate(d *schema.ResourceData, meta interface{}) error {
 
 func resourceAwsIamGroupRead(d *schema.ResourceData, meta interface{}) error {
 	iamconn := meta.(*AWSClient).iamconn
+	name := d.Get("name").(string)
 
 	request := &iam.GetGroupInput{
-		GroupName: aws.String(d.Id()),
+		GroupName: aws.String(name),
 	}
 
 	getResp, err := iamconn.GetGroup(request)
@@ -93,6 +92,26 @@ func resourceAwsIamGroupReadResult(d *schema.ResourceData, group *iam.Group) err
 	return nil
 }
 
+func resourceAwsIamGroupUpdate(d *schema.ResourceData, meta interface{}) error {
+	if d.HasChange("name") || d.HasChange("path") {
+		iamconn := meta.(*AWSClient).iamconn
+		on, nn := d.GetChange("name")
+		op, np := d.GetChange("path")
+
+		request := &iam.UpdateGroupInput{
+			GroupName:    aws.String(on.(string)),
+			NewGroupName: aws.String(nn.(string)),
+			NewPath:      aws.String(np.(string)),
+		}
+		_, err := iamconn.UpdateGroup(request)
+		if err != nil {
+			return fmt.Errorf("Error updating IAM Group %s: %s", d.Id(), err)
+		}
+		return resourceAwsIamGroupRead(d, meta)
+	}
+	return nil
+}
+
 func resourceAwsIamGroupDelete(d *schema.ResourceData, meta interface{}) error {
 	iamconn := meta.(*AWSClient).iamconn
 
diff --git a/builtin/providers/aws/resource_aws_iam_group_test.go b/builtin/providers/aws/resource_aws_iam_group_test.go
index 67a72733af38..977889bd655b 100644
--- a/builtin/providers/aws/resource_aws_iam_group_test.go
+++ b/builtin/providers/aws/resource_aws_iam_group_test.go
@@ -23,7 +23,14 @@ func TestAccAWSIAMGroup_basic(t *testing.T) {
 				Config: testAccAWSGroupConfig,
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckAWSGroupExists("aws_iam_group.group", &conf),
-					testAccCheckAWSGroupAttributes(&conf),
+					testAccCheckAWSGroupAttributes(&conf, "test-group", "/"),
+				),
+			},
+			resource.TestStep{
+				Config: testAccAWSGroupConfig2,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSGroupExists("aws_iam_group.group", &conf),
+					testAccCheckAWSGroupAttributes(&conf, "test-group2", "/funnypath/"),
 				),
 			},
 		},
@@ -85,14 +92,14 @@ func testAccCheckAWSGroupExists(n string, res *iam.GetGroupOutput) resource.Test
 	}
 }
 
-func testAccCheckAWSGroupAttributes(group *iam.GetGroupOutput) resource.TestCheckFunc {
+func testAccCheckAWSGroupAttributes(group *iam.GetGroupOutput, name string, path string) resource.TestCheckFunc {
 	return func(s *terraform.State) error {
-		if *group.Group.GroupName != "test-group" {
-			return fmt.Errorf("Bad name: %s", *group.Group.GroupName)
+		if *group.Group.GroupName != name {
+			return fmt.Errorf("Bad name: %s when %s was expected", *group.Group.GroupName, name)
 		}
 
-		if *group.Group.Path != "/" {
-			return fmt.Errorf("Bad path: %s", *group.Group.Path)
+		if *group.Group.Path != path {
+			return fmt.Errorf("Bad path: %s when %s was expected", *group.Group.Path, path)
 		}
 
 		return nil
@@ -105,3 +112,9 @@ resource "aws_iam_group" "group" {
 	path = "/"
 }
 `
+const testAccAWSGroupConfig2 = `
+resource "aws_iam_group" "group" {
+	name = "test-group2"
+	path = "/funnypath/"
+}
+`