diff --git a/builtin/providers/aws/resource_aws_instance.go b/builtin/providers/aws/resource_aws_instance.go
index b32c72fe1..061c619ba 100644
--- a/builtin/providers/aws/resource_aws_instance.go
+++ b/builtin/providers/aws/resource_aws_instance.go
@@ -171,7 +171,6 @@ func resourceAwsInstance() *schema.Resource {
 
 			"iam_instance_profile": {
 				Type:     schema.TypeString,
-				ForceNew: true,
 				Optional: true,
 			},
 
@@ -608,6 +607,66 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 		d.SetPartial("tags")
 	}
 
+	if d.HasChange("iam_instance_profile") {
+		request := &ec2.DescribeIamInstanceProfileAssociationsInput{
+			Filters: []*ec2.Filter{
+				&ec2.Filter{
+					Name:   aws.String("instance-id"),
+					Values: []*string{aws.String(d.Id())},
+				},
+			},
+		}
+
+		resp, err := conn.DescribeIamInstanceProfileAssociations(request)
+		if err != nil {
+			return err
+		}
+
+		// An Iam Instance Profile has been provided and is pending a change
+		// This means it is an association or a replacement to an association
+		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)),
+					},
+				})
+				if err != nil {
+					return err
+				}
+
+			} else {
+				// 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)),
+					},
+				})
+				if err != nil {
+					return err
+				}
+			}
+			// An Iam Instance Profile has _not_ been provided but is pending a change. This means there is a pending removal
+		} else {
+			if len(resp.IamInstanceProfileAssociations) > 0 {
+				// Has an Iam Instance Profile associated with it, need to remove the association
+				associationId := resp.IamInstanceProfileAssociations[0].AssociationId
+
+				_, err := conn.DisassociateIamInstanceProfile(&ec2.DisassociateIamInstanceProfileInput{
+					AssociationId: associationId,
+				})
+				if err != nil {
+					return err
+				}
+			}
+		}
+	}
+
 	if d.HasChange("source_dest_check") || d.IsNewResource() {
 		// SourceDestCheck can only be set on VPC instances	// AWS will return an error of InvalidParameterCombination if we attempt
 		// to modify the source_dest_check of an instance in EC2 Classic
diff --git a/builtin/providers/aws/resource_aws_instance_test.go b/builtin/providers/aws/resource_aws_instance_test.go
index e6e2d62ef..aae53ecbd 100644
--- a/builtin/providers/aws/resource_aws_instance_test.go
+++ b/builtin/providers/aws/resource_aws_instance_test.go
@@ -8,6 +8,7 @@ import (
 	"github.com/aws/aws-sdk-go/aws"
 	"github.com/aws/aws-sdk-go/aws/awserr"
 	"github.com/aws/aws-sdk-go/service/ec2"
+	"github.com/hashicorp/terraform/helper/acctest"
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/helper/schema"
 	"github.com/hashicorp/terraform/terraform"
@@ -628,6 +629,43 @@ func TestAccAWSInstance_tags(t *testing.T) {
 	})
 }
 
+func TestAccAWSInstance_instanceProfileChange(t *testing.T) {
+	var v ec2.Instance
+	rName := acctest.RandString(5)
+
+	testCheckInstanceProfile := func() resource.TestCheckFunc {
+		return func(*terraform.State) error {
+			if v.IamInstanceProfile == nil {
+				return fmt.Errorf("Instance Profile is nil - we expected an InstanceProfile associated with the Instance")
+			}
+
+			return nil
+		}
+	}
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:      func() { testAccPreCheck(t) },
+		IDRefreshName: "aws_instance.foo",
+		Providers:     testAccProviders,
+		CheckDestroy:  testAccCheckInstanceDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccInstanceConfigWithoutInstanceProfile(rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckInstanceExists("aws_instance.foo", &v),
+				),
+			},
+			{
+				Config: testAccInstanceConfigAttachInstanceProfile(rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckInstanceExists("aws_instance.foo", &v),
+					testCheckInstanceProfile(),
+				),
+			},
+		},
+	})
+}
+
 func TestAccAWSInstance_privateIP(t *testing.T) {
 	var v ec2.Instance
 
@@ -1223,6 +1261,49 @@ resource "aws_instance" "foo" {
 }
 `
 
+func testAccInstanceConfigWithoutInstanceProfile(rName string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_role" "test" {
+	name = "test-%s"
+	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 = ["${aws_iam_role.test.name}"]
+}
+
+resource "aws_instance" "foo" {
+	ami = "ami-4fccb37f"
+	instance_type = "m1.small"
+	tags {
+		bar = "baz"
+	}
+}`, rName, rName)
+}
+
+func testAccInstanceConfigAttachInstanceProfile(rName string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_role" "test" {
+	name = "test-%s"
+	assume_role_policy = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Effect\":\"Allow\",\"Principal\":{\"Service\":[\"ec2.amazonaws.com\"]},\"Action\":[\"sts:AssumeRole\"]}]}"
+}
+
+resource "aws_iam_instance_profile" "test" {
+	name = "test-%s"
+	roles = ["${aws_iam_role.test.name}"]
+}
+
+resource "aws_instance" "foo" {
+	ami = "ami-4fccb37f"
+	instance_type = "m1.small"
+	iam_instance_profile = "${aws_iam_instance_profile.test.name}"
+	tags {
+		bar = "baz"
+	}
+}`, rName, rName)
+}
+
 const testAccInstanceConfigPrivateIP = `
 resource "aws_vpc" "foo" {
 	cidr_block = "10.1.0.0/16"