diff --git a/builtin/providers/aws/resource_aws_instance.go b/builtin/providers/aws/resource_aws_instance.go
index 6ab161015..888877f2b 100644
--- a/builtin/providers/aws/resource_aws_instance.go
+++ b/builtin/providers/aws/resource_aws_instance.go
@@ -26,6 +26,7 @@ func resource_aws_instance_create(
 	runOpts := &ec2.RunInstances{
 		ImageId:      rs.Attributes["ami"],
 		InstanceType: rs.Attributes["instance_type"],
+		SubnetId:     rs.Attributes["subnet_id"],
 	}
 	log.Printf("[DEBUG] Run configuration: %#v", runOpts)
 	runResp, err := ec2conn.RunInstances(runOpts)
@@ -108,6 +109,7 @@ func resource_aws_instance_diff(
 			"ami":               diff.AttrTypeCreate,
 			"availability_zone": diff.AttrTypeCreate,
 			"instance_type":     diff.AttrTypeCreate,
+			"subnet_id":         diff.AttrTypeCreate,
 		},
 
 		ComputedAttrs: []string{
@@ -163,6 +165,15 @@ func resource_aws_instance_update_state(
 	s.Attributes["public_ip"] = instance.PublicIpAddress
 	s.Attributes["private_dns"] = instance.PrivateDNSName
 	s.Attributes["private_ip"] = instance.PrivateIpAddress
+	s.Attributes["subnet_id"] = instance.SubnetId
+	s.Dependencies = nil
+
+	if instance.SubnetId != "" {
+		s.Dependencies = append(s.Dependencies,
+			terraform.ResourceDependency{ID: instance.SubnetId},
+		)
+	}
+
 	return s, nil
 }
 
diff --git a/builtin/providers/aws/resource_aws_instance_test.go b/builtin/providers/aws/resource_aws_instance_test.go
index 59fbd3068..1dc8e9e6d 100644
--- a/builtin/providers/aws/resource_aws_instance_test.go
+++ b/builtin/providers/aws/resource_aws_instance_test.go
@@ -28,6 +28,25 @@ func TestAccAWSInstance(t *testing.T) {
 	})
 }
 
+func TestAccAWSInstance_vpc(t *testing.T) {
+	var v ec2.Instance
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckInstanceDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: testAccInstanceConfigVPC,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckInstanceExists(
+						"aws_instance.foo", &v),
+				),
+			},
+		},
+	})
+}
+
 func testAccCheckInstanceDestroy(s *terraform.State) error {
 	conn := testAccProvider.ec2conn
 
@@ -94,3 +113,21 @@ resource "aws_instance" "foo" {
 	instance_type = "m1.small"
 }
 `
+
+const testAccInstanceConfigVPC = `
+resource "aws_vpc" "foo" {
+	cidr_block = "10.1.0.0/16"
+}
+
+resource "aws_subnet" "foo" {
+	cidr_block = "10.1.1.0/24"
+	vpc_id = "${aws_vpc.foo.id}"
+}
+
+resource "aws_instance" "foo" {
+	# us-west-2
+	ami = "ami-4fccb37f"
+	instance_type = "m1.small"
+	subnet_id = "${aws_subnet.foo.id}"
+}
+`