diff --git a/moto/dynamodb2/models.py b/moto/dynamodb2/models.py
index a54c4f7d0..16e97ea2f 100644
--- a/moto/dynamodb2/models.py
+++ b/moto/dynamodb2/models.py
@@ -294,7 +294,7 @@ class Item(BaseModel):
 
 class Table(BaseModel):
 
-    def __init__(self, table_name, schema=None, attr=None, throughput=None, indexes=None, global_indexes=None):
+    def __init__(self, table_name, schema=None, attr=None, throughput=None, indexes=None, global_indexes=None, streams=None):
         self.name = table_name
         self.attr = attr
         self.schema = schema
@@ -325,10 +325,18 @@ class Table(BaseModel):
             'TimeToLiveStatus': 'DISABLED'  # One of 'ENABLING'|'DISABLING'|'ENABLED'|'DISABLED',
             # 'AttributeName': 'string'  # Can contain this
         }
+        self.set_stream_specification(streams)
 
     def _generate_arn(self, name):
         return 'arn:aws:dynamodb:us-east-1:123456789011:table/' + name
 
+    def set_stream_specification(self, streams):
+        self.stream_specification = streams
+        if streams and streams.get('StreamEnabled'):
+            self.latest_stream_label = datetime.datetime.utcnow().isoformat()
+        else:
+            self.latest_stream_label = None
+
     def describe(self, base_key='TableDescription'):
         results = {
             base_key: {
@@ -345,6 +353,11 @@ class Table(BaseModel):
                 'LocalSecondaryIndexes': [index for index in self.indexes],
             }
         }
+        if self.stream_specification:
+            results[base_key]['StreamSpecification'] = self.stream_specification
+        if self.latest_stream_label:
+            results[base_key]['LatestStreamLabel'] = self.latest_stream_label
+            results[base_key]['LatestStreamArn'] = self.table_arn + '/stream/' + self.latest_stream_label
         return results
 
     def __len__(self):
@@ -680,6 +693,13 @@ class DynamoDBBackend(BaseBackend):
         table.throughput = throughput
         return table
 
+    def update_table_streams(self, name, stream_specification):
+        table = self.tables[name]
+        if stream_specification['StreamEnabled'] and table.latest_stream_label:
+            raise ValueError('Table already has stream enabled')
+        table.set_stream_specification(stream_specification)
+        return table
+
     def update_table_global_indexes(self, name, global_index_updates):
         table = self.tables[name]
         gsis_by_name = dict((i['IndexName'], i) for i in table.global_indexes)
diff --git a/moto/dynamodb2/responses.py b/moto/dynamodb2/responses.py
index e2f1ef1cc..73bd3ae38 100644
--- a/moto/dynamodb2/responses.py
+++ b/moto/dynamodb2/responses.py
@@ -104,13 +104,16 @@ class DynamoHandler(BaseResponse):
         # getting the indexes
         global_indexes = body.get("GlobalSecondaryIndexes", [])
         local_secondary_indexes = body.get("LocalSecondaryIndexes", [])
+        # get the stream specification
+        streams = body.get("StreamSpecification")
 
         table = self.dynamodb_backend.create_table(table_name,
                                                    schema=key_schema,
                                                    throughput=throughput,
                                                    attr=attr,
                                                    global_indexes=global_indexes,
-                                                   indexes=local_secondary_indexes)
+                                                   indexes=local_secondary_indexes,
+                                                   streams=streams)
         if table is not None:
             return dynamo_json_dump(table.describe())
         else:
@@ -163,12 +166,16 @@ class DynamoHandler(BaseResponse):
 
     def update_table(self):
         name = self.body['TableName']
+        table = self.dynamodb_backend.get_table(name)
         if 'GlobalSecondaryIndexUpdates' in self.body:
             table = self.dynamodb_backend.update_table_global_indexes(
                 name, self.body['GlobalSecondaryIndexUpdates'])
         if 'ProvisionedThroughput' in self.body:
             throughput = self.body["ProvisionedThroughput"]
             table = self.dynamodb_backend.update_table_throughput(name, throughput)
+        if 'StreamSpecification' in self.body:
+            table = self.dynamodb_backend.update_table_streams(name, self.body['StreamSpecification'])
+        
         return dynamo_json_dump(table.describe())
 
     def describe_table(self):
diff --git a/tests/test_dynamodb2/test_dynamodb.py b/tests/test_dynamodb2/test_dynamodb.py
index afc919dd7..7f30bbccf 100644
--- a/tests/test_dynamodb2/test_dynamodb.py
+++ b/tests/test_dynamodb2/test_dynamodb.py
@@ -1336,3 +1336,62 @@ def test_query_global_secondary_index_when_created_via_update_table_resource():
     assert len(forum_and_subject_items) == 1
     assert forum_and_subject_items[0] == {'user_id': Decimal('1'), 'forum_name': 'cats',
                                           'subject': 'my pet is the cutest'}
+
+
+@mock_dynamodb2
+def test_dynamodb_streams_1():
+    conn = boto3.client('dynamodb', region_name='us-east-1')
+
+    resp = conn.create_table(
+        TableName='test-streams',
+        KeySchema=[{'AttributeName': 'id', 'KeyType': 'HASH'}],
+        AttributeDefinitions=[{'AttributeName': 'id', 'AttributeType': 'S'}],
+        ProvisionedThroughput={'ReadCapacityUnits': 1, 'WriteCapacityUnits': 1},
+        StreamSpecification={
+            'StreamEnabled': True,
+            'StreamViewType': 'NEW_AND_OLD_IMAGES'
+        }
+    )
+    
+    assert 'StreamSpecification' in resp['TableDescription']
+    assert resp['TableDescription']['StreamSpecification'] == {
+        'StreamEnabled': True,
+        'StreamViewType': 'NEW_AND_OLD_IMAGES'
+    }
+    assert 'LatestStreamLabel' in resp['TableDescription']
+    assert 'LatestStreamArn' in resp['TableDescription']
+    
+    resp = conn.delete_table(TableName='test-streams')
+
+    assert 'StreamSpecification' in resp['TableDescription']
+    
+
+@mock_dynamodb2
+def test_dynamodb_streams_2():
+    conn = boto3.client('dynamodb', region_name='us-east-1')
+
+    resp = conn.create_table(
+        TableName='test-stream-update',
+        KeySchema=[{'AttributeName': 'id', 'KeyType': 'HASH'}],
+        AttributeDefinitions=[{'AttributeName': 'id', 'AttributeType': 'S'}],
+        ProvisionedThroughput={'ReadCapacityUnits': 1, 'WriteCapacityUnits': 1},
+    )
+
+    assert 'StreamSpecification' not in resp['TableDescription']
+
+    resp = conn.update_table(
+        TableName='test-stream-update',
+        StreamSpecification={
+            'StreamEnabled': True,
+            'StreamViewType': 'NEW_IMAGE'
+        }
+    )
+
+    assert 'StreamSpecification' in resp['TableDescription']
+    assert resp['TableDescription']['StreamSpecification'] == {
+        'StreamEnabled': True,
+        'StreamViewType': 'NEW_IMAGE'
+    }
+    assert 'LatestStreamLabel' in resp['TableDescription']
+    assert 'LatestStreamArn' in resp['TableDescription']
+