diff --git a/changelogs/fragments/326-launch_template_retry.yml b/changelogs/fragments/326-launch_template_retry.yml
new file mode 100644
index 00000000000..ab7506d8847
--- /dev/null
+++ b/changelogs/fragments/326-launch_template_retry.yml
@@ -0,0 +1,2 @@
+minor_changes:
+- ec2_launch_template - Add retries on common AWS failures (https://github.com/ansible-collections/community.aws/pull/326).
diff --git a/plugins/modules/ec2_launch_template.py b/plugins/modules/ec2_launch_template.py
index 4553a8e794d..4a35812cfb4 100644
--- a/plugins/modules/ec2_launch_template.py
+++ b/plugins/modules/ec2_launch_template.py
@@ -367,13 +367,14 @@
 from uuid import uuid4
 
 from ansible.module_utils._text import to_text
-from ansible_collections.amazon.aws.plugins.module_utils.core import AnsibleAWSModule, is_boto3_error_code, get_boto3_client_method_parameters
-from ansible.module_utils.common.dict_transformations import camel_dict_to_snake_dict, snake_dict_to_camel_dict
-from ansible_collections.amazon.aws.plugins.module_utils.ec2 import (ansible_dict_to_boto3_tag_list,
-                                                                     AWSRetry,
-                                                                     boto3_tag_list_to_ansible_dict,
-                                                                     ansible_dict_to_boto3_tag_list,
-                                                                     )
+from ansible.module_utils.common.dict_transformations import camel_dict_to_snake_dict
+from ansible.module_utils.common.dict_transformations import snake_dict_to_camel_dict
+
+from ansible_collections.amazon.aws.plugins.module_utils.core import AnsibleAWSModule
+from ansible_collections.amazon.aws.plugins.module_utils.core import is_boto3_error_code
+from ansible_collections.amazon.aws.plugins.module_utils.ec2 import AWSRetry
+from ansible_collections.amazon.aws.plugins.module_utils.ec2 import ansible_dict_to_boto3_tag_list
+from ansible_collections.amazon.aws.plugins.module_utils.ec2 import boto3_tag_list_to_ansible_dict
 
 try:
     from botocore.exceptions import ClientError, BotoCoreError, WaiterError
@@ -399,9 +400,9 @@ def existing_templates(module):
     matches = None
     try:
         if module.params.get('template_id'):
-            matches = ec2.describe_launch_templates(LaunchTemplateIds=[module.params.get('template_id')])
+            matches = ec2.describe_launch_templates(LaunchTemplateIds=[module.params.get('template_id')], aws_retry=True)
         elif module.params.get('template_name'):
-            matches = ec2.describe_launch_templates(LaunchTemplateNames=[module.params.get('template_name')])
+            matches = ec2.describe_launch_templates(LaunchTemplateNames=[module.params.get('template_name')], aws_retry=True)
     except is_boto3_error_code('InvalidLaunchTemplateName.NotFoundException') as e:
         # no named template was found, return nothing/empty versions
         return None, []
@@ -418,20 +419,18 @@ def existing_templates(module):
         template = matches['LaunchTemplates'][0]
         template_id, template_version, template_default = template['LaunchTemplateId'], template['LatestVersionNumber'], template['DefaultVersionNumber']
         try:
-            return template, ec2.describe_launch_template_versions(LaunchTemplateId=template_id)['LaunchTemplateVersions']
+            return template, ec2.describe_launch_template_versions(LaunchTemplateId=template_id, aws_retry=True)['LaunchTemplateVersions']
         except (ClientError, BotoCoreError, WaiterError) as e:
             module.fail_json_aws(e, msg='Could not find launch template versions for {0} (ID: {1}).'.format(template['LaunchTemplateName'], template_id))
 
 
 def params_to_launch_data(module, template_params):
     if template_params.get('tags'):
+        tag_list = ansible_dict_to_boto3_tag_list(template_params.get('tags'))
         template_params['tag_specifications'] = [
             {
                 'resource_type': r_type,
-                'tags': [
-                    {'Key': k, 'Value': v} for k, v
-                    in template_params['tags'].items()
-                ]
+                'tags': tag_list
             }
             for r_type in ('instance', 'volume')
         ]
@@ -456,6 +455,7 @@ def delete_template(module):
                 v_resp = ec2.delete_launch_template_versions(
                     LaunchTemplateId=template['LaunchTemplateId'],
                     Versions=non_default_versions,
+                    aws_retry=True,
                 )
                 if v_resp['UnsuccessfullyDeletedLaunchTemplateVersions']:
                     module.warn('Failed to delete template versions {0} on launch template {1}'.format(
@@ -468,6 +468,7 @@ def delete_template(module):
         try:
             resp = ec2.delete_launch_template(
                 LaunchTemplateId=template['LaunchTemplateId'],
+                aws_retry=True,
             )
         except (ClientError, BotoCoreError) as e:
             module.fail_json_aws(e, msg="Could not delete launch template {0}".format(template['LaunchTemplateId']))
diff --git a/tests/integration/targets/ec2_launch_template/aliases b/tests/integration/targets/ec2_launch_template/aliases
index 56927195182..157ce0c9d4c 100644
--- a/tests/integration/targets/ec2_launch_template/aliases
+++ b/tests/integration/targets/ec2_launch_template/aliases
@@ -1,2 +1,2 @@
 cloud/aws
-unsupported
+shippable/aws/group3
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/defaults/main.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/defaults/main.yml
index 9651b91642a..19eb792b91d 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/defaults/main.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/defaults/main.yml
@@ -1,18 +1,3 @@
 ---
-resource_prefix: ansible-test-default-group
-ec2_ami_image:
-  # https://wiki.centos.org/Cloud/AWS collected 2018-01-10
-  ap-northeast-1: ami-571e3c30
-  ap-northeast-2: ami-97cb19f9
-  ap-south-1: ami-11f0837e
-  ap-southeast-1: ami-30318f53
-  ap-southeast-2: ami-24959b47
-  ca-central-1: ami-daeb57be
-  eu-central-1: ami-7cbc6e13
-  eu-west-1: ami-0d063c6b
-  eu-west-2: ami-c22236a6
-  sa-east-1: ami-864f2dea
-  us-east-1: ami-ae7bfdb8
-  us-east-2: ami-9cbf9bf9
-  us-west-1: ami-7c280d1c
-  us-west-2: ami-0c2aba6c
+ec2_ami_name: amzn2-ami-hvm-2.*-x86_64-gp2
+test_role_name: ansible-test-{{ resource_prefix }}
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/cpu_options.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/cpu_options.yml
index 8d610a2ea75..b98c3dceaa8 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/cpu_options.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/cpu_options.yml
@@ -11,7 +11,7 @@
   - name: create c4.large instance with cpu_options
     ec2_launch_template:
       name: "{{ resource_prefix }}-c4large-1-threads-per-core"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       tags:
         TestId: "{{ resource_prefix }}"
       instance_type: c4.large
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/iam_instance_role.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/iam_instance_role.yml
index 5e9b7f563de..a303cc628cc 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/iam_instance_role.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/iam_instance_role.yml
@@ -1,30 +1,30 @@
 - block:
     - name: Create IAM role for test
       iam_role:
-        name: "{{ resource_prefix }}-test-policy"
+        name: "{{ test_role_name }}-1"
         assume_role_policy_document: "{{ lookup('file','assume-role-policy.json') }}"
         state: present
         create_instance_profile: yes
         managed_policy:
-        - AmazonS3ReadOnlyAccess
+        - AWSDenyAll
       register: iam_role
 
     - name: Create second IAM role for test
       iam_role:
-        name: "{{ resource_prefix }}-test-policy-2"
+        name: "{{ test_role_name }}-2"
         assume_role_policy_document: "{{ lookup('file','assume-role-policy.json') }}"
         state: present
         create_instance_profile: yes
         managed_policy:
-        - AmazonS3ReadOnlyAccess
+        - AWSDenyAll
       register: iam_role_2
 
     - name: Make instance with an instance_role
       ec2_launch_template:
         name: "{{ resource_prefix }}-test-instance-role"
-        image_id: "{{ ec2_ami_image[aws_region] }}"
+        image_id: "{{ ec2_ami_image }}"
         instance_type: t2.micro
-        iam_instance_profile: "{{ resource_prefix }}-test-policy"
+        iam_instance_profile: "{{ test_role_name }}-1"
       register: template_with_role
 
     - assert:
@@ -34,9 +34,9 @@
     - name: Create template again, with no change to instance_role
       ec2_launch_template:
         name: "{{ resource_prefix }}-test-instance-role"
-        image_id: "{{ ec2_ami_image[aws_region] }}"
+        image_id: "{{ ec2_ami_image }}"
         instance_type: t2.micro
-        iam_instance_profile: "{{ resource_prefix }}-test-policy"
+        iam_instance_profile: "{{ test_role_name }}-1"
       register: template_with_role
 
     - assert:
@@ -47,9 +47,9 @@
     - name: Update instance with new instance_role
       ec2_launch_template:
         name: "{{ resource_prefix }}-test-instance-role"
-        image_id: "{{ ec2_ami_image[aws_region] }}"
+        image_id: "{{ ec2_ami_image }}"
         instance_type: t2.micro
-        iam_instance_profile: "{{ resource_prefix }}-test-policy-2"
+        iam_instance_profile: "{{ test_role_name }}-2"
       register: template_with_updated_role
 
     - assert:
@@ -63,9 +63,9 @@
     - name: Re-set with same new instance_role
       ec2_launch_template:
         name: "{{ resource_prefix }}-test-instance-role"
-        image_id: "{{ ec2_ami_image[aws_region] }}"
+        image_id: "{{ ec2_ami_image }}"
         instance_type: t2.micro
-        iam_instance_profile: "{{ resource_prefix }}-test-policy-2"
+        iam_instance_profile: "{{ test_role_name }}-2"
       register: template_with_updated_role
 
     - assert:
@@ -84,20 +84,20 @@
       retries: 10
     - name: Delete IAM role for test
       iam_role:
-        name: "{{ resource_prefix }}-test-policy"
+        name: "{{ test_role_name }}-1"
         assume_role_policy_document: "{{ lookup('file','assume-role-policy.json') }}"
         state: absent
-        create_instance_profile: yes
+        delete_instance_profile: yes
       register: iam_removed
       until: iam_removed is not failed
       ignore_errors: yes
       retries: 10
     - name: Delete IAM role for test
       iam_role:
-        name: "{{ resource_prefix }}-test-policy-2"
+        name: "{{ test_role_name }}-2"
         assume_role_policy_document: "{{ lookup('file','assume-role-policy.json') }}"
         state: absent
-        create_instance_profile: yes
+        delete_instance_profile: yes
       register: iam_2_removed
       until: iam_2_removed is not failed
       ignore_errors: yes
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/main.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/main.yml
index 4976da276e0..d3b24d64181 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/main.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/main.yml
@@ -15,6 +15,16 @@
       security_token: "{{ security_token | default(omit) }}"
       region: "{{ aws_region }}"
   block:
+
+    - name: Find AMI to use
+      ec2_ami_info:
+        owners: 'amazon'
+        filters:
+          name: '{{ ec2_ami_name }}'
+      register: ec2_amis
+    - set_fact:
+        ec2_ami_image: '{{ ec2_amis.images[0].image_id }}'
+
     - include_tasks: cpu_options.yml
     - include_tasks: iam_instance_role.yml
     - include_tasks: versions.yml
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/tags_and_vpc_settings.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/tags_and_vpc_settings.yml
index 7da7f770af6..aab9e61b98f 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/tags_and_vpc_settings.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/tags_and_vpc_settings.yml
@@ -49,7 +49,7 @@
   - name: Make instance in the testing subnet created in the test VPC
     ec2_instance:
       name: "{{ resource_prefix }}-test-basic-vpc-create"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       user_data: |
         #cloud-config
         package_upgrade: true
@@ -71,7 +71,7 @@
   - name: Try to re-make the instance, hopefully this shows changed=False
     ec2_instance:
       name: "{{ resource_prefix }}-test-basic-vpc-create"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       user_data: |
         #cloud-config
         package_upgrade: true
@@ -96,7 +96,7 @@
   - name: Alter it by adding tags
     ec2_instance:
       name: "{{ resource_prefix }}-test-basic-vpc-create"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       tags:
         TestId: "{{ resource_prefix }}"
         Another: thing
@@ -113,11 +113,11 @@
       that:
         - check_tags.instances[0].tags.Another == 'thing'
         - check_tags.instances[0].tags.Something == 'else'
-  
+
   - name: Purge a tag
     ec2_instance:
       name: "{{ resource_prefix }}-test-basic-vpc-create"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       purge_tags: true
       tags:
         TestId: "{{ resource_prefix }}"
diff --git a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/versions.yml b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/versions.yml
index 9035467a60f..d188d9c2e51 100644
--- a/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/versions.yml
+++ b/tests/integration/targets/ec2_launch_template/playbooks/roles/ec2_launch_template/tasks/versions.yml
@@ -2,7 +2,7 @@
   - name: create simple instance template
     ec2_launch_template:
       name: "{{ resource_prefix }}-simple"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       tags:
         TestId: "{{ resource_prefix }}"
       instance_type: c4.large
@@ -20,7 +20,7 @@
     ec2_launch_template:
       name: "{{ resource_prefix }}-simple"
       default_version: 1
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       tags:
         TestId: "{{ resource_prefix }}"
       instance_type: m5.large
@@ -37,7 +37,7 @@
   - name: update simple instance template
     ec2_launch_template:
       name: "{{ resource_prefix }}-simple"
-      image_id: "{{ ec2_ami_image[aws_region] }}"
+      image_id: "{{ ec2_ami_image }}"
       tags:
         TestId: "{{ resource_prefix }}"
       instance_type: t3.medium