diff --git a/builtin/providers/aws/resource_aws_rds_cluster_instance.go b/builtin/providers/aws/resource_aws_rds_cluster_instance.go
index 59cf4c57c..09580cc89 100644
--- a/builtin/providers/aws/resource_aws_rds_cluster_instance.go
+++ b/builtin/providers/aws/resource_aws_rds_cluster_instance.go
@@ -58,13 +58,26 @@ func resourceAwsRDSClusterInstance() *schema.Resource {
 				Type:     schema.TypeBool,
 				Optional: true,
 				Default:  false,
-				ForceNew: true,
 			},
 
 			"instance_class": &schema.Schema{
 				Type:     schema.TypeString,
 				Required: true,
-				ForceNew: true,
+			},
+
+			"db_parameter_group_name": &schema.Schema{
+				Type:     schema.TypeString,
+				Optional: true,
+				Computed: true,
+			},
+
+			// apply_immediately is used to determine when the update modifications
+			// take place.
+			// See http://docs.aws.amazon.com/AmazonRDS/latest/UserGuide/Overview.DBInstance.Modifying.html
+			"apply_immediately": &schema.Schema{
+				Type:     schema.TypeBool,
+				Optional: true,
+				Computed: true,
 			},
 
 			"tags": tagsSchema(),
@@ -84,6 +97,10 @@ func resourceAwsRDSClusterInstanceCreate(d *schema.ResourceData, meta interface{
 		Tags:                tags,
 	}
 
+	if attr, ok := d.GetOk("db_parameter_group_name"); ok {
+		createOpts.DBParameterGroupName = aws.String(attr.(string))
+	}
+
 	if v := d.Get("identifier").(string); v != "" {
 		createOpts.DBInstanceIdentifier = aws.String(v)
 	} else {
@@ -169,6 +186,10 @@ func resourceAwsRDSClusterInstanceRead(d *schema.ResourceData, meta interface{})
 
 	d.Set("publicly_accessible", db.PubliclyAccessible)
 
+	if len(db.DBParameterGroups) > 0 {
+		d.Set("parameter_group_name", db.DBParameterGroups[0].DBParameterGroupName)
+	}
+
 	// Fetch and save tags
 	arn, err := buildRDSARN(d.Id(), meta)
 	if err != nil {
@@ -184,6 +205,50 @@ func resourceAwsRDSClusterInstanceRead(d *schema.ResourceData, meta interface{})
 
 func resourceAwsRDSClusterInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 	conn := meta.(*AWSClient).rdsconn
+	requestUpdate := false
+
+	req := &rds.ModifyDBInstanceInput{
+		ApplyImmediately:     aws.Bool(d.Get("apply_immediately").(bool)),
+		DBInstanceIdentifier: aws.String(d.Id()),
+	}
+
+	if d.HasChange("db_parameter_group_name") {
+		req.DBParameterGroupName = aws.String(d.Get("db_parameter_group_name").(string))
+		requestUpdate = true
+
+	}
+
+	if d.HasChange("instance_class") {
+		req.DBInstanceClass = aws.String(d.Get("instance_class").(string))
+		requestUpdate = true
+
+	}
+
+	log.Printf("[DEBUG] Send DB Instance Modification request: %#v", requestUpdate)
+	if requestUpdate {
+		log.Printf("[DEBUG] DB Instance Modification request: %#v", req)
+		_, err := conn.ModifyDBInstance(req)
+		if err != nil {
+			return fmt.Errorf("Error modifying DB Instance %s: %s", d.Id(), err)
+		}
+
+		// reuse db_instance refresh func
+		stateConf := &resource.StateChangeConf{
+			Pending:    []string{"creating", "backing-up", "modifying"},
+			Target:     []string{"available"},
+			Refresh:    resourceAwsDbInstanceStateRefreshFunc(d, meta),
+			Timeout:    40 * time.Minute,
+			MinTimeout: 10 * time.Second,
+			Delay:      10 * time.Second,
+		}
+
+		// Wait, catching any errors
+		_, err = stateConf.WaitForState()
+		if err != nil {
+			return err
+		}
+
+	}
 
 	if arn, err := buildRDSARN(d.Id(), meta); err == nil {
 		if err := setTagsRDS(conn, d, arn); err != nil {
diff --git a/builtin/providers/aws/resource_aws_rds_cluster_instance_test.go b/builtin/providers/aws/resource_aws_rds_cluster_instance_test.go
index a3b2d3a35..b832f89b6 100644
--- a/builtin/providers/aws/resource_aws_rds_cluster_instance_test.go
+++ b/builtin/providers/aws/resource_aws_rds_cluster_instance_test.go
@@ -177,10 +177,25 @@ resource "aws_rds_cluster" "default" {
 }
 
 resource "aws_rds_cluster_instance" "cluster_instances" {
-  identifier         = "tf-cluster-instance-%d"
-  cluster_identifier = "${aws_rds_cluster.default.id}"
-  instance_class     = "db.r3.large"
+  identifier              = "tf-cluster-instance-%d"
+  cluster_identifier      = "${aws_rds_cluster.default.id}"
+  instance_class          = "db.r3.large"
+  db_parameter_group_name = "${aws_db_parameter_group.bar.name}"
 }
 
+resource "aws_db_parameter_group" "bar" {
+  name   = "tfcluster-test-group"
+  family = "aurora5.6"
+
+  parameter {
+    name         = "back_log"
+    value        = "32767"
+    apply_method = "pending-reboot"
+  }
+
+  tags {
+    foo = "bar"
+  }
+}
 `, n, n)
 }