diff --git a/aws/resource_aws_spot_instance_request.go b/aws/resource_aws_spot_instance_request.go
index dade165e4fc..73aa7baefb8 100644
--- a/aws/resource_aws_spot_instance_request.go
+++ b/aws/resource_aws_spot_instance_request.go
@@ -10,6 +10,7 @@ import (
 	"github.com/aws/aws-sdk-go/service/ec2"
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/helper/schema"
+	"github.com/hashicorp/terraform/helper/validation"
 )
 
 func resourceAwsSpotInstanceRequest() *schema.Resource {
@@ -81,8 +82,13 @@ func resourceAwsSpotInstanceRequest() *schema.Resource {
 			s["instance_interruption_behaviour"] = &schema.Schema{
 				Type:     schema.TypeString,
 				Optional: true,
-				Default:  "terminate",
+				Default:  ec2.InstanceInterruptionBehaviorTerminate,
 				ForceNew: true,
+				ValidateFunc: validation.StringInSlice([]string{
+					ec2.InstanceInterruptionBehaviorTerminate,
+					ec2.InstanceInterruptionBehaviorStop,
+					ec2.InstanceInterruptionBehaviorHibernate,
+				}, false),
 			}
 			return s
 		}(),
@@ -115,7 +121,6 @@ func resourceAwsSpotInstanceRequestCreate(d *schema.ResourceData, meta interface
 			ImageId:             instanceOpts.ImageID,
 			InstanceType:        instanceOpts.InstanceType,
 			KeyName:             instanceOpts.KeyName,
-			Placement:           instanceOpts.SpotPlacement,
 			SecurityGroupIds:    instanceOpts.SecurityGroupIDs,
 			SecurityGroups:      instanceOpts.SecurityGroups,
 			SubnetId:            instanceOpts.SubnetID,
@@ -132,6 +137,11 @@ func resourceAwsSpotInstanceRequestCreate(d *schema.ResourceData, meta interface
 		spotOpts.LaunchGroup = aws.String(v.(string))
 	}
 
+	// Placement GroupName can only be specified when instanceInterruptionBehavior is not set or set to 'terminate'
+	if v, exists := d.GetOkExists("instance_interruption_behaviour"); v.(string) == ec2.InstanceInterruptionBehaviorTerminate || !exists {
+		spotOpts.LaunchSpecification.Placement = instanceOpts.SpotPlacement
+	}
+
 	// Make the spot instance request
 	log.Printf("[DEBUG] Requesting spot bid opts: %s", spotOpts)
 
diff --git a/aws/resource_aws_spot_instance_request_test.go b/aws/resource_aws_spot_instance_request_test.go
index 5d096abb627..3b9bad1e8d7 100644
--- a/aws/resource_aws_spot_instance_request_test.go
+++ b/aws/resource_aws_spot_instance_request_test.go
@@ -389,6 +389,56 @@ func testAccCheckAWSSpotInstanceRequestAttributesVPC(
 	}
 }
 
+func TestAccAWSSpotInstanceRequestInterruptStop(t *testing.T) {
+	var sir ec2.SpotInstanceRequest
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckAWSSpotInstanceRequestDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAWSSpotInstanceRequestInterruptConfig("stop"),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSSpotInstanceRequestExists(
+						"aws_spot_instance_request.foo", &sir),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "spot_bid_status", "fulfilled"),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "spot_request_state", "active"),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "instance_interruption_behaviour", "stop"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAWSSpotInstanceRequestInterruptHibernate(t *testing.T) {
+	var sir ec2.SpotInstanceRequest
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckAWSSpotInstanceRequestDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAWSSpotInstanceRequestInterruptConfig("hibernate"),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSSpotInstanceRequestExists(
+						"aws_spot_instance_request.foo", &sir),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "spot_bid_status", "fulfilled"),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "spot_request_state", "active"),
+					resource.TestCheckResourceAttr(
+						"aws_spot_instance_request.foo", "instance_interruption_behaviour", "hibernate"),
+				),
+			},
+		},
+	})
+}
+
 func testAccAWSSpotInstanceRequestConfig(rInt int) string {
 	return fmt.Sprintf(`
 	resource "aws_key_pair" "debugging" {
@@ -589,3 +639,21 @@ func testAccAWSSpotInstanceRequestConfig_getPasswordData(rInt int) string {
 	}
 	`, rInt)
 }
+
+func testAccAWSSpotInstanceRequestInterruptConfig(interruption_behavior string) string {
+	return fmt.Sprintf(`
+	resource "aws_spot_instance_request" "foo" {
+		ami = "ami-19e92861"
+		instance_type = "c5.large"
+
+		// base price is $0.067 hourly, so bidding above that should theoretically
+		// always fulfill
+		spot_price = "0.07"
+
+		// we wait for fulfillment because we want to inspect the launched instance
+		// and verify termination behavior
+		wait_for_fulfillment = true
+
+		instance_interruption_behaviour = "%s"
+	}`, interruption_behavior)
+}