diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 91f16e4c9..162338196 100644
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -46,6 +46,7 @@ class Instance(BotoInstance):
         self.security_groups = security_groups
         self.instance_type = kwargs.get("instance_type", "m1.small")
         self.subnet_id = kwargs.get("subnet_id")
+        self.key_name = kwargs.get("key_name")
 
     @classmethod
     def create_from_cloudformation_json(cls, resource_name, cloudformation_json):
@@ -60,7 +61,8 @@ class Instance(BotoInstance):
             count=1,
             security_group_names=group_names,
             instance_type=properties.get("InstanceType", "m1.small"),
-            subnet_id=properties.get("SubnetId")
+            subnet_id=properties.get("SubnetId"),
+            key_name=properties.get("KeyName"),
         )
         return reservation.instances[0]
 
diff --git a/moto/ec2/responses/instances.py b/moto/ec2/responses/instances.py
index a153713c7..d3c2136fd 100644
--- a/moto/ec2/responses/instances.py
+++ b/moto/ec2/responses/instances.py
@@ -35,9 +35,11 @@ class InstanceResponse(BaseResponse):
         security_group_names = self._get_multi_param('SecurityGroup')
         instance_type = self.querystring.get("InstanceType", ["m1.small"])[0]
         subnet_id = self.querystring.get("SubnetId", [None])[0]
+        key_name = self.querystring.get("KeyName", [None])[0]
         new_reservation = ec2_backend.add_instances(
             image_id, min_count, user_data, security_group_names,
-            instance_type=instance_type, subnet_id=subnet_id)
+            instance_type=instance_type, subnet_id=subnet_id,
+            key_name=key_name)
         template = Template(EC2_RUN_INSTANCES)
         return template.render(reservation=new_reservation)
 
@@ -114,6 +116,7 @@ EC2_RUN_INSTANCES = """<RunInstancesResponse xmlns="http://ec2.amazonaws.com/doc
           <privateDnsName/>
           <dnsName/>
           <reason/>
+          <keyName>{{ instance.key_name }}</keyName>
           <amiLaunchIndex>0</amiLaunchIndex>
           <instanceType>{{ instance.instance_type }}</instanceType>
           <launchTime>2007-08-07T11:51:50.000Z</launchTime>
@@ -164,7 +167,7 @@ EC2_DESCRIBE_INSTANCES = """<DescribeInstancesResponse xmlns='http://ec2.amazona
                     <privateDnsName>ip-10.0.0.12.ec2.internal</privateDnsName>
                     <dnsName>ec2-46.51.219.63.compute-1.amazonaws.com</dnsName>
                     <reason/>
-                    <keyName>gsg-keypair</keyName>
+                    <keyName>{{ instance.key_name }}</keyName>
                     <amiLaunchIndex>0</amiLaunchIndex>
                     <productCodes/>
                     <instanceType>{{ instance.instance_type }}</instanceType>
diff --git a/tests/test_ec2/test_instances.py b/tests/test_ec2/test_instances.py
index 7d2b44570..3d52a76cc 100644
--- a/tests/test_ec2/test_instances.py
+++ b/tests/test_ec2/test_instances.py
@@ -201,3 +201,12 @@ def test_run_instance_with_subnet():
     instance = reservation.instances[0]
 
     instance.subnet_id.should.equal("subnet-abcd1234")
+
+
+@mock_ec2
+def test_run_instance_with_keypair():
+    conn = boto.connect_ec2('the_key', 'the_secret')
+    reservation = conn.run_instances('ami-1234abcd', key_name="keypair_name")
+    instance = reservation.instances[0]
+
+    instance.key_name.should.equal("keypair_name")