diff --git a/builtin/providers/vsphere/resource_vsphere_virtual_machine.go b/builtin/providers/vsphere/resource_vsphere_virtual_machine.go
index 15d4ccaf1..2752e0071 100644
--- a/builtin/providers/vsphere/resource_vsphere_virtual_machine.go
+++ b/builtin/providers/vsphere/resource_vsphere_virtual_machine.go
@@ -58,6 +58,10 @@ type cdrom struct {
 	path      string
 }
 
+type memoryAllocation struct {
+	reservation int64
+}
+
 type virtualMachine struct {
 	name                  string
 	folder                string
@@ -67,6 +71,7 @@ type virtualMachine struct {
 	datastore             string
 	vcpu                  int
 	memoryMb              int64
+	memoryAllocation      memoryAllocation
 	template              string
 	networkInterfaces     []networkInterface
 	hardDisks             []hardDisk
@@ -124,6 +129,13 @@ func resourceVSphereVirtualMachine() *schema.Resource {
 				ForceNew: true,
 			},
 
+			"memory_reservation": &schema.Schema{
+				Type:     schema.TypeInt,
+				Optional: true,
+				Default:  0,
+				ForceNew: true,
+			},
+
 			"datacenter": &schema.Schema{
 				Type:     schema.TypeString,
 				Optional: true,
@@ -371,6 +383,9 @@ func resourceVSphereVirtualMachineCreate(d *schema.ResourceData, meta interface{
 		name:     d.Get("name").(string),
 		vcpu:     d.Get("vcpu").(int),
 		memoryMb: int64(d.Get("memory").(int)),
+		memoryAllocation: memoryAllocation{
+			reservation: int64(d.Get("memory_reservation").(int)),
+		},
 	}
 
 	if v, ok := d.GetOk("folder"); ok {
@@ -672,6 +687,7 @@ func resourceVSphereVirtualMachineRead(d *schema.ResourceData, meta interface{})
 
 	d.Set("datacenter", dc)
 	d.Set("memory", mvm.Summary.Config.MemorySizeMB)
+	d.Set("memory_reservation", mvm.Summary.Config.MemoryReservation)
 	d.Set("cpu", mvm.Summary.Config.NumCpu)
 	d.Set("datastore", rootDatastore)
 
@@ -1104,7 +1120,10 @@ func (vm *virtualMachine) createVirtualMachine(c *govmomi.Client) error {
 		NumCPUs:           vm.vcpu,
 		NumCoresPerSocket: 1,
 		MemoryMB:          vm.memoryMb,
-		DeviceChange:      networkDevices,
+		MemoryAllocation: &types.ResourceAllocationInfo{
+			Reservation: vm.memoryAllocation.reservation,
+		},
+		DeviceChange: networkDevices,
 	}
 	log.Printf("[DEBUG] virtual machine config spec: %v", configSpec)
 
diff --git a/builtin/providers/vsphere/resource_vsphere_virtual_machine_test.go b/builtin/providers/vsphere/resource_vsphere_virtual_machine_test.go
index 264884b39..d98876fd6 100644
--- a/builtin/providers/vsphere/resource_vsphere_virtual_machine_test.go
+++ b/builtin/providers/vsphere/resource_vsphere_virtual_machine_test.go
@@ -61,6 +61,8 @@ func TestAccVSphereVirtualMachine_basic(t *testing.T) {
 						"vsphere_virtual_machine.foo", "vcpu", "2"),
 					resource.TestCheckResourceAttr(
 						"vsphere_virtual_machine.foo", "memory", "4096"),
+					resource.TestCheckResourceAttr(
+						"vsphere_virtual_machine.foo", "memory_reservation", "4096"),
 					resource.TestCheckResourceAttr(
 						"vsphere_virtual_machine.foo", "disk.#", "2"),
 					resource.TestCheckResourceAttr(
@@ -632,6 +634,7 @@ resource "vsphere_virtual_machine" "foo" {
 %s
     vcpu = 2
     memory = 4096
+    memory_reservation = 4096
     gateway = "%s"
     network_interface {
         label = "%s"
diff --git a/website/source/docs/providers/vsphere/r/virtual_machine.html.markdown b/website/source/docs/providers/vsphere/r/virtual_machine.html.markdown
index 87965428d..f1f0b3ba8 100644
--- a/website/source/docs/providers/vsphere/r/virtual_machine.html.markdown
+++ b/website/source/docs/providers/vsphere/r/virtual_machine.html.markdown
@@ -64,6 +64,7 @@ The following arguments are supported:
 * `name` - (Required) The virtual machine name
 * `vcpu` - (Required) The number of virtual CPUs to allocate to the virtual machine
 * `memory` - (Required) The amount of RAM (in MB) to allocate to the virtual machine
+* `memory_reservation` - (Optional) The amount of RAM (in MB) to reserve physical memory resource; defaults to 0 (means not to reserve)
 * `datacenter` - (Optional) The name of a Datacenter in which to launch the virtual machine
 * `cluster` - (Optional) Name of a Cluster in which to launch the virtual machine
 * `resource_pool` (Optional) The name of a Resource Pool in which to launch the virtual machine. Requires full path (see cluster example).