diff --git a/changelogs/fragments/414-rds_instance-tags-on-creation-from-snapshot.yml b/changelogs/fragments/414-rds_instance-tags-on-creation-from-snapshot.yml
new file mode 100644
index 00000000000..bac87b428c6
--- /dev/null
+++ b/changelogs/fragments/414-rds_instance-tags-on-creation-from-snapshot.yml
@@ -0,0 +1,2 @@
+bugfixes:
+- rds_instance - fixes bug preventing the use of tags when creating an RDS instance from a snapshot (https://github.com/ansible-collections/community.aws/issues/530).
diff --git a/plugins/modules/rds_instance.py b/plugins/modules/rds_instance.py
index 6e1312b739b..69d5836004f 100644
--- a/plugins/modules/rds_instance.py
+++ b/plugins/modules/rds_instance.py
@@ -861,7 +861,7 @@ def get_parameters(client, module, parameters, method_name):
     if parameters.get('ProcessorFeatures') == [] and not method_name == 'modify_db_instance':
         parameters.pop('ProcessorFeatures')
 
-    if method_name == 'create_db_instance' or method_name == 'create_db_instance_read_replica':
+    if method_name in ['create_db_instance', 'create_db_instance_read_replica', 'restore_db_instance_from_db_snapshot']:
         if parameters.get('Tags'):
             parameters['Tags'] = ansible_dict_to_boto3_tag_list(parameters['Tags'])