diff --git a/moto/core/responses.py b/moto/core/responses.py
index a5a1f3880..adad5d1de 100644
--- a/moto/core/responses.py
+++ b/moto/core/responses.py
@@ -1,4 +1,6 @@
 from __future__ import unicode_literals
+
+from collections import defaultdict
 import datetime
 import json
 import logging
@@ -330,6 +332,26 @@ class BaseResponse(_TemplateEnvironmentMixin):
 
         return results
 
+    def _parse_tag_specification(self, param_prefix):
+        tags = self._get_list_prefix(param_prefix)
+
+        results = defaultdict(dict)
+        for tag in tags:
+            resource_type = tag.pop("resource_type")
+
+            param_index = 1
+            while True:
+                key_name = 'tag.{0}._key'.format(param_index)
+                value_name = 'tag.{0}._value'.format(param_index)
+
+                try:
+                    results[resource_type][tag[key_name]] = tag[value_name]
+                except KeyError:
+                    break
+                param_index += 1
+
+        return results
+
     @property
     def request_json(self):
         return 'JSON' in self.querystring.get('ContentType', [])
diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 8be13d867..87d2d59e5 100755
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -141,6 +141,10 @@ class TaggedEC2Resource(BaseModel):
     def add_tag(self, key, value):
         self.ec2_backend.create_tags([self.id], {key: value})
 
+    def add_tags(self, tag_map):
+        for key, value in tag_map.items():
+            self.ec2_backend.create_tags([self.id], {key: value})
+
     def get_filter_value(self, filter_name):
         tags = self.get_tags()
 
@@ -638,6 +642,10 @@ class InstanceBackend(object):
         security_groups.extend(self.get_security_group_from_id(sg_id)
                                for sg_id in kwargs.pop("security_group_ids", []))
         self.reservations[new_reservation.id] = new_reservation
+
+        tags = kwargs.pop("tags", {})
+        instance_tags = tags.get('instance', {})
+
         for index in range(count):
             new_instance = Instance(
                 self,
@@ -647,6 +655,7 @@ class InstanceBackend(object):
                 **kwargs
             )
             new_reservation.instances.append(new_instance)
+            new_instance.add_tags(instance_tags)
             new_instance.setup_defaults()
         return new_reservation
 
diff --git a/moto/ec2/responses/instances.py b/moto/ec2/responses/instances.py
index d964fc22b..09ecb172b 100644
--- a/moto/ec2/responses/instances.py
+++ b/moto/ec2/responses/instances.py
@@ -47,13 +47,15 @@ class InstanceResponse(BaseResponse):
         associate_public_ip = self.querystring.get(
             "AssociatePublicIpAddress", [None])[0]
         key_name = self.querystring.get("KeyName", [None])[0]
+        tags = self._parse_tag_specification("TagSpecification")
 
         if self.is_not_dryrun('RunInstance'):
             new_reservation = self.ec2_backend.add_instances(
                 image_id, min_count, user_data, security_group_names,
                 instance_type=instance_type, placement=placement, subnet_id=subnet_id,
                 key_name=key_name, security_group_ids=security_group_ids,
-                nics=nics, private_ip=private_ip, associate_public_ip=associate_public_ip)
+                nics=nics, private_ip=private_ip, associate_public_ip=associate_public_ip,
+                tags=tags)
 
             template = self.response_template(EC2_RUN_INSTANCES)
             return template.render(reservation=new_reservation)
@@ -282,6 +284,14 @@ EC2_RUN_INSTANCES = """<RunInstancesResponse xmlns="http://ec2.amazonaws.com/doc
           <clientToken/>
           <hypervisor>xen</hypervisor>
           <ebsOptimized>false</ebsOptimized>
+          <tagSet>
+            {% for tag in instance.get_tags() %}
+              <item>
+                <key>{{ tag.key }}</key>
+                <value>{{ tag.value }}</value>
+              </item>
+            {% endfor %}
+          </tagSet>
           <networkInterfaceSet>
             {% for nic in instance.nics.values() %}
               <item>
diff --git a/tests/test_ec2/test_instances.py b/tests/test_ec2/test_instances.py
index 6687a7e6c..cb953f8cf 100644
--- a/tests/test_ec2/test_instances.py
+++ b/tests/test_ec2/test_instances.py
@@ -178,6 +178,44 @@ def test_get_paginated_instances():
     assert 'NextToken' not in resp2.keys()
 
 
+@mock_ec2
+def test_create_with_tags():
+    ec2 = boto3.client('ec2', region_name='us-west-2')
+    instances = ec2.run_instances(
+        ImageId='ami-123',
+        MinCount=1,
+        MaxCount=1,
+        InstanceType='t2.micro',
+        TagSpecifications=[
+            {
+                'ResourceType': 'instance',
+                'Tags': [
+                    {
+                        'Key': 'MY_TAG1',
+                        'Value': 'MY_VALUE1',
+                    },
+                    {
+                        'Key': 'MY_TAG2',
+                        'Value': 'MY_VALUE2',
+                    },
+                ],
+            },
+            {
+                'ResourceType': 'instance',
+                'Tags': [
+                    {
+                        'Key': 'MY_TAG3',
+                        'Value': 'MY_VALUE3',
+                    },
+                ]
+            },
+        ],
+    )
+    assert 'Tags' in instances['Instances'][0]
+    len(instances['Instances'][0]['Tags']).should.equal(3)
+
+
+
 @mock_ec2_deprecated
 def test_get_instances_filtering_by_state():
     conn = boto.connect_ec2()