diff --git a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
index 4dbb5a375..b0acdd034 100644
--- a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
+++ b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
@@ -256,50 +256,18 @@ func resourceAwsElasticBeanstalkEnvironmentCreate(d *schema.ResourceData, meta i
 func resourceAwsElasticBeanstalkEnvironmentUpdate(d *schema.ResourceData, meta interface{}) error {
 	conn := meta.(*AWSClient).elasticbeanstalkconn
 
+	envId := d.Id()
+
+	updateOpts := elasticbeanstalk.UpdateEnvironmentInput{
+		EnvironmentId: aws.String(envId),
+	}
+
 	if d.HasChange("description") {
-		if err := resourceAwsElasticBeanstalkEnvironmentDescriptionUpdate(conn, d); err != nil {
-			return err
-		}
+		updateOpts.Description = aws.String(d.Get("description").(string))
 	}
 
 	if d.HasChange("solution_stack_name") {
-		if err := resourceAwsElasticBeanstalkEnvironmentSolutionStackUpdate(conn, d); err != nil {
-			return err
-		}
-	}
-
-	if d.HasChange("setting") {
-		if err := resourceAwsElasticBeanstalkEnvironmentOptionSettingsUpdate(conn, d); err != nil {
-			return err
-		}
-	}
-
-	return resourceAwsElasticBeanstalkEnvironmentRead(d, meta)
-}
-
-func resourceAwsElasticBeanstalkEnvironmentDescriptionUpdate(conn *elasticbeanstalk.ElasticBeanstalk, d *schema.ResourceData) error {
-	name := d.Get("name").(string)
-	desc := d.Get("description").(string)
-	envId := d.Id()
-
-	log.Printf("[DEBUG] Elastic Beanstalk application: %s, update description: %s", name, desc)
-
-	_, err := conn.UpdateEnvironment(&elasticbeanstalk.UpdateEnvironmentInput{
-		EnvironmentId: aws.String(envId),
-		Description:   aws.String(desc),
-	})
-
-	return err
-}
-
-func resourceAwsElasticBeanstalkEnvironmentOptionSettingsUpdate(conn *elasticbeanstalk.ElasticBeanstalk, d *schema.ResourceData) error {
-	name := d.Get("name").(string)
-	envId := d.Id()
-
-	log.Printf("[DEBUG] Elastic Beanstalk application: %s, update options", name)
-
-	req := &elasticbeanstalk.UpdateEnvironmentInput{
-		EnvironmentId: aws.String(envId),
+		updateOpts.SolutionStackName = aws.String(d.Get("solution_stack_name").(string))
 	}
 
 	if d.HasChange("setting") {
@@ -314,29 +282,36 @@ func resourceAwsElasticBeanstalkEnvironmentOptionSettingsUpdate(conn *elasticbea
 		os := o.(*schema.Set)
 		ns := n.(*schema.Set)
 
-		req.OptionSettings = extractOptionSettings(ns.Difference(os))
+		updateOpts.OptionSettings = extractOptionSettings(ns.Difference(os))
 	}
 
-	if _, err := conn.UpdateEnvironment(req); err != nil {
+	if d.HasChange("template_name") {
+		updateOpts.TemplateName = aws.String(d.Get("template_name").(string))
+	}
+
+	log.Printf("[DEBUG] Elastic Beanstalk Environment update opts: %s", updateOpts)
+	_, err := conn.UpdateEnvironment(&updateOpts)
+	if err != nil {
 		return err
 	}
 
-	return nil
-}
+	stateConf := &resource.StateChangeConf{
+		Pending:    []string{"Launching", "Updating"},
+		Target:     []string{"Ready"},
+		Refresh:    environmentStateRefreshFunc(conn, d.Id()),
+		Timeout:    10 * time.Minute,
+		Delay:      10 * time.Second,
+		MinTimeout: 3 * time.Second,
+	}
 
-func resourceAwsElasticBeanstalkEnvironmentSolutionStackUpdate(conn *elasticbeanstalk.ElasticBeanstalk, d *schema.ResourceData) error {
-	name := d.Get("name").(string)
-	solutionStack := d.Get("solution_stack_name").(string)
-	envId := d.Id()
+	_, err = stateConf.WaitForState()
+	if err != nil {
+		return fmt.Errorf(
+			"Error waiting for Elastic Beanstalk Environment (%s) to become ready: %s",
+			d.Id(), err)
+	}
 
-	log.Printf("[DEBUG] Elastic Beanstalk application: %s, update solution_stack_name: %s", name, solutionStack)
-
-	_, err := conn.UpdateEnvironment(&elasticbeanstalk.UpdateEnvironmentInput{
-		EnvironmentId:     aws.String(envId),
-		SolutionStackName: aws.String(solutionStack),
-	})
-
-	return err
+	return resourceAwsElasticBeanstalkEnvironmentRead(d, meta)
 }
 
 func resourceAwsElasticBeanstalkEnvironmentRead(d *schema.ResourceData, meta interface{}) error {
diff --git a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
index 5a9d14379..9d4b9eafa 100644
--- a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
+++ b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
@@ -105,6 +105,41 @@ func TestAccAWSBeanstalkEnv_cname_prefix(t *testing.T) {
 	})
 }
 
+func TestAccAWSBeanstalkEnv_config(t *testing.T) {
+	var app elasticbeanstalk.EnvironmentDescription
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckBeanstalkEnvDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: testAccBeanstalkConfigTemplate,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckBeanstalkEnvExists("aws_elastic_beanstalk_environment.tftest", &app),
+					testAccCheckBeanstalkEnvConfigValue("aws_elastic_beanstalk_environment.tftest", "1"),
+				),
+			},
+
+			resource.TestStep{
+				Config: testAccBeanstalkConfigTemplateUpdate,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckBeanstalkEnvExists("aws_elastic_beanstalk_environment.tftest", &app),
+					testAccCheckBeanstalkEnvConfigValue("aws_elastic_beanstalk_environment.tftest", "2"),
+				),
+			},
+
+			resource.TestStep{
+				Config: testAccBeanstalkConfigTemplateUpdate,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckBeanstalkEnvExists("aws_elastic_beanstalk_environment.tftest", &app),
+					testAccCheckBeanstalkEnvConfigValue("aws_elastic_beanstalk_environment.tftest", "3"),
+				),
+			},
+		},
+	})
+}
+
 func testAccCheckBeanstalkEnvDestroy(s *terraform.State) error {
 	conn := testAccProvider.Meta().(*AWSClient).elasticbeanstalkconn
 
@@ -192,6 +227,49 @@ func testAccCheckBeanstalkEnvTier(n string, app *elasticbeanstalk.EnvironmentDes
 	}
 }
 
+func testAccCheckBeanstalkEnvConfigValue(n string, expectedValue string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		conn := testAccProvider.Meta().(*AWSClient).elasticbeanstalkconn
+
+		rs, ok := s.RootModule().Resources[n]
+		if !ok {
+			return fmt.Errorf("Not found: %s", n)
+		}
+
+		if rs.Primary.ID == "" {
+			return fmt.Errorf("Elastic Beanstalk ENV is not set")
+		}
+
+		resp, err := conn.DescribeConfigurationOptions(&elasticbeanstalk.DescribeConfigurationOptionsInput{
+			ApplicationName: aws.String(rs.Primary.Attributes["application"]),
+			EnvironmentName: aws.String(rs.Primary.Attributes["name"]),
+			Options: []*elasticbeanstalk.OptionSpecification{
+				{
+					Namespace:  aws.String("aws:elasticbeanstalk:application:environment"),
+					OptionName: aws.String("TEMPLATE"),
+				},
+			},
+		})
+		if err != nil {
+			return err
+		}
+
+		if len(resp.Options) != 1 {
+			return fmt.Errorf("Found %d options, expected 1.", len(resp.Options))
+		}
+
+		log.Printf("[DEBUG] %d Elastic Beanstalk Option values returned.", len(resp.Options[0].ValueOptions))
+
+		for _, value := range resp.Options[0].ValueOptions {
+			if *value != expectedValue {
+				return fmt.Errorf("Option setting value: %s. Expected %s", value, expectedValue)
+			}
+		}
+
+		return nil
+	}
+}
+
 func describeBeanstalkEnv(conn *elasticbeanstalk.ElasticBeanstalk,
 	envID *string) (*elasticbeanstalk.EnvironmentDescription, error) {
 	describeBeanstalkEnvOpts := &elasticbeanstalk.DescribeEnvironmentsInput{
@@ -255,3 +333,84 @@ solution_stack_name = "64bit Amazon Linux running Python"
 }
 `, randString)
 }
+
+const testAccBeanstalkConfigTemplate = `
+resource "aws_elastic_beanstalk_application" "tftest" {
+  name = "tf-test-name"
+  description = "tf-test-desc"
+}
+
+resource "aws_elastic_beanstalk_environment" "tftest" {
+  name = "tf-test-name"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  template_name = "${aws_elastic_beanstalk_configuration_template.tftest.name}"
+}
+
+resource "aws_elastic_beanstalk_configuration_template" "tftest" {
+  name        = "tf-test-original"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  solution_stack_name = "64bit Amazon Linux running Python"
+
+  setting {
+    namespace = "aws:elasticbeanstalk:application:environment"
+    name      = "TEMPLATE"
+    value     = "1"
+ }
+}
+`
+
+const testAccBeanstalkConfigTemplateUpdate = `
+resource "aws_elastic_beanstalk_application" "tftest" {
+  name = "tf-test-name"
+  description = "tf-test-desc"
+}
+
+resource "aws_elastic_beanstalk_environment" "tftest" {
+  name = "tf-test-name"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  template_name = "${aws_elastic_beanstalk_configuration_template.tftest.name}"
+}
+
+resource "aws_elastic_beanstalk_configuration_template" "tftest" {
+  name        = "tf-test-updated"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  solution_stack_name = "64bit Amazon Linux running Python"
+
+  setting {
+    namespace = "aws:elasticbeanstalk:application:environment"
+    name      = "TEMPLATE"
+    value     = "2"
+  }
+}
+`
+
+const testAccBeanstalkConfigTemplateOverride = `
+resource "aws_elastic_beanstalk_application" "tftest" {
+  name = "tf-test-name"
+  description = "tf-test-desc"
+}
+
+resource "aws_elastic_beanstalk_environment" "tftest" {
+  name = "tf-test-name"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  template_name = "${aws_elastic_beanstalk_configuration_template.tftest.name}"
+
+  setting {
+    namespace = "aws:elasticbeanstalk:application:environment"
+    name      = "TEMPLATE"
+    value     = "3"
+  }
+}
+
+resource "aws_elastic_beanstalk_configuration_template" "tftest" {
+  name        = "tf-test-updated"
+  application = "${aws_elastic_beanstalk_application.tftest.name}"
+  solution_stack_name = "64bit Amazon Linux running Python"
+
+  setting {
+    namespace = "aws:elasticbeanstalk:application:environment"
+    name      = "TEMPLATE"
+    value     = "2"
+  }
+}
+`