diff --git a/builtin/providers/aws/resource_aws_autoscaling_group.go b/builtin/providers/aws/resource_aws_autoscaling_group.go
index d5a87e33b..28b5da2fe 100644
--- a/builtin/providers/aws/resource_aws_autoscaling_group.go
+++ b/builtin/providers/aws/resource_aws_autoscaling_group.go
@@ -96,6 +96,11 @@ func resourceAwsAutoscalingGroup() *schema.Resource {
 				Set:      schema.HashString,
 			},
 
+			"placement_group": &schema.Schema{
+				Type:     schema.TypeString,
+				Optional: true,
+			},
+
 			"load_balancers": &schema.Schema{
 				Type:     schema.TypeSet,
 				Optional: true,
@@ -185,6 +190,10 @@ func resourceAwsAutoscalingGroupCreate(d *schema.ResourceData, meta interface{})
 		autoScalingGroupOpts.HealthCheckGracePeriod = aws.Int64(int64(v.(int)))
 	}
 
+	if v, ok := d.GetOk("placement_group"); ok {
+		autoScalingGroupOpts.PlacementGroup = aws.String(v.(string))
+	}
+
 	if v, ok := d.GetOk("load_balancers"); ok && v.(*schema.Set).Len() > 0 {
 		autoScalingGroupOpts.LoadBalancerNames = expandStringList(
 			v.(*schema.Set).List())
@@ -232,6 +241,7 @@ func resourceAwsAutoscalingGroupRead(d *schema.ResourceData, meta interface{}) e
 	d.Set("load_balancers", g.LoadBalancerNames)
 	d.Set("min_size", g.MinSize)
 	d.Set("max_size", g.MaxSize)
+	d.Set("placement_group", g.PlacementGroup)
 	d.Set("name", g.AutoScalingGroupName)
 	d.Set("tag", g.Tags)
 	d.Set("vpc_zone_identifier", strings.Split(*g.VPCZoneIdentifier, ","))
@@ -286,6 +296,10 @@ func resourceAwsAutoscalingGroupUpdate(d *schema.ResourceData, meta interface{})
 		}
 	}
 
+	if d.HasChange("placement_group") {
+		opts.PlacementGroup = aws.String(d.Get("placement_group").(string))
+	}
+
 	if d.HasChange("termination_policies") {
 		// If the termination policy is set to null, we need to explicitly set
 		// it back to "Default", or the API won't reset it for us.
diff --git a/builtin/providers/aws/resource_aws_autoscaling_group_test.go b/builtin/providers/aws/resource_aws_autoscaling_group_test.go
index 5f87bc3d0..0d7f2c734 100644
--- a/builtin/providers/aws/resource_aws_autoscaling_group_test.go
+++ b/builtin/providers/aws/resource_aws_autoscaling_group_test.go
@@ -49,6 +49,8 @@ func TestAccAWSAutoScalingGroup_basic(t *testing.T) {
 						"aws_autoscaling_group.bar", "termination_policies.0", "OldestInstance"),
 					resource.TestCheckResourceAttr(
 						"aws_autoscaling_group.bar", "termination_policies.1", "ClosestToNextInstanceHour"),
+					resource.TestCheckResourceAttr(
+						"aws_autoscaling_group.bar", "placement_group", "test"),
 				),
 			},
 
@@ -401,6 +403,11 @@ resource "aws_launch_configuration" "foobar" {
   instance_type = "t1.micro"
 }
 
+resource "aws_placement_group" "test" {
+  name = "test"
+  strategy = "cluster"
+}
+
 resource "aws_autoscaling_group" "bar" {
   availability_zones = ["us-west-2a"]
   name = "foobar3-terraform-test"
@@ -411,6 +418,7 @@ resource "aws_autoscaling_group" "bar" {
   desired_capacity = 4
   force_delete = true
   termination_policies = ["OldestInstance","ClosestToNextInstanceHour"]
+  placement_group = "${aws_placement_group.test.name}"
 
   launch_configuration = "${aws_launch_configuration.foobar.name}"
 
diff --git a/website/source/docs/providers/aws/r/autoscaling_group.html.markdown b/website/source/docs/providers/aws/r/autoscaling_group.html.markdown
index 6f2b0e511..522a31d6f 100644
--- a/website/source/docs/providers/aws/r/autoscaling_group.html.markdown
+++ b/website/source/docs/providers/aws/r/autoscaling_group.html.markdown
@@ -13,6 +13,11 @@ Provides an AutoScaling Group resource.
 ## Example Usage
 
 ```
+resource "aws_placement_group" "test" {
+  name = "test"
+  strategy = "cluster"
+}
+
 resource "aws_autoscaling_group" "bar" {
   availability_zones = ["us-east-1a"]
   name = "foobar3-terraform-test"
@@ -22,6 +27,7 @@ resource "aws_autoscaling_group" "bar" {
   health_check_type = "ELB"
   desired_capacity = 4
   force_delete = true
+  placement_group = "${aws_placement_group.test.id}"
   launch_configuration = "${aws_launch_configuration.foobar.name}"
 
   tag {
@@ -48,7 +54,7 @@ The following arguments are supported:
 * `availability_zones` - (Optional) A list of AZs to launch resources in.
    Required only if you do not specify any `vpc_zone_identifier`
 * `launch_configuration` - (Required) The name of the launch configuration to use.
-* `health_check_grace_period` - (Optional) Time after instance comes into service before checking health. 
+* `health_check_grace_period` - (Optional) Time after instance comes into service before checking health.
 * `health_check_type` - (Optional) "EC2" or "ELB". Controls how health checking is done.
 * `desired_capacity` - (Optional) The number of Amazon EC2 instances that
     should be running in the group. (See also [Waiting for
@@ -66,6 +72,7 @@ The following arguments are supported:
 * `vpc_zone_identifier` (Optional) A list of subnet IDs to launch resources in.
 * `termination_policies` (Optional) A list of policies to decide how the instances in the auto scale group should be terminated.
 * `tag` (Optional) A list of tag blocks. Tags documented below.
+* `placement_group` (Optional) The name of the placement group into which you'll launch your instances, if any.
 * `wait_for_capacity_timeout` (Default: "10m") A maximum
   [duration](https://golang.org/pkg/time/#ParseDuration) that Terraform should
   wait for ASG instances to be healthy before timing out.  (See also [Waiting