diff --git a/moto/secretsmanager/exceptions.py b/moto/secretsmanager/exceptions.py
new file mode 100644
index 000000000..99d74f281
--- /dev/null
+++ b/moto/secretsmanager/exceptions.py
@@ -0,0 +1,15 @@
+from __future__ import unicode_literals
+from moto.core.exceptions import JsonRESTError
+
+
+class SecretsManagerClientError(JsonRESTError):
+    code = 400
+
+
+class ResourceNotFoundException(SecretsManagerClientError):
+    def __init__(self):
+        self.code = 404
+        super(ResourceNotFoundException, self).__init__(
+            "ResourceNotFoundException",
+            "Secrets Manager can't find the specified secret"
+        )
diff --git a/moto/secretsmanager/models.py b/moto/secretsmanager/models.py
index fb09d20e4..a553953d4 100644
--- a/moto/secretsmanager/models.py
+++ b/moto/secretsmanager/models.py
@@ -6,14 +6,17 @@ import json
 import boto3
 
 from moto.core import BaseBackend, BaseModel
+from .exceptions import ResourceNotFoundException
 
 
 class SecretsManager(BaseModel):
 
     def __init__(self, region_name, **kwargs):
+        self.region = region_name
         self.secret_id = kwargs.get('secret_id', '')
         self.version_id = kwargs.get('version_id', '')
         self.version_stage = kwargs.get('version_stage', '')
+        self.secret_string = ''
 
 
 class SecretsManagerBackend(BaseBackend):
@@ -22,15 +25,25 @@ class SecretsManagerBackend(BaseBackend):
         super(SecretsManagerBackend, self).__init__()
         self.region = region_name
         self.secret_id = kwargs.get('secret_id', '')
+        self.name = kwargs.get('name', '')
         self.createdate = int(time.time())
+        self.secret_string = ''
+
+    def reset(self):
+        region_name = self.region
+        self.__dict__ = {}
+        self.__init__(region_name)
 
     def get_secret_value(self, secret_id, version_id, version_stage):
 
+        if self.secret_id == '':
+            raise ResourceNotFoundException()
+
         response = json.dumps({
-            "ARN": self.secret_arn(),
+            "ARN": self.secret_arn(self.region, self.secret_id),
             "Name": self.secret_id,
             "VersionId": "A435958A-D821-4193-B719-B7769357AER4",
-            "SecretString": "mysecretstring",
+            "SecretString": self.secret_string,
             "VersionStages": [
                 "AWSCURRENT",
             ],
@@ -39,11 +52,26 @@ class SecretsManagerBackend(BaseBackend):
 
         return response
 
-    def secret_arn(self):
+    def create_secret(self, name, secret_string, **kwargs):
+
+        self.secret_string = secret_string
+        self.secret_id = name
+
+        response = json.dumps({
+            "ARN": self.secret_arn(self.region, name),
+            "Name": self.secret_id,
+            "VersionId": "A435958A-D821-4193-B719-B7769357AER4",
+        })
+
+        return response
+
+    def secret_arn(self, region, secret_id):
         return "arn:aws:secretsmanager:{0}:1234567890:secret:{1}-rIjad".format(
-            self.region, self.secret_id)
+            region, secret_id)
 
 
-available_regions = boto3.session.Session().get_available_regions("secretsmanager")
-print(available_regions)
-secretsmanager_backends = {region: SecretsManagerBackend(region_name=region) for region in available_regions}
+available_regions = (
+    boto3.session.Session().get_available_regions("secretsmanager")
+)
+secretsmanager_backends = {region: SecretsManagerBackend(region_name=region)
+                           for region in available_regions}
diff --git a/moto/secretsmanager/responses.py b/moto/secretsmanager/responses.py
index 144a254ec..52a838732 100644
--- a/moto/secretsmanager/responses.py
+++ b/moto/secretsmanager/responses.py
@@ -15,3 +15,11 @@ class SecretsManagerResponse(BaseResponse):
             secret_id=secret_id,
             version_id=version_id,
             version_stage=version_stage)
+
+    def create_secret(self):
+        name = self._get_param('Name')
+        secret_string = self._get_param('SecretString')
+        return secretsmanager_backends[self.region].create_secret(
+            name=name,
+            secret_string=secret_string
+        )
diff --git a/tests/test_secretsmanager/test_secretsmanager.py b/tests/test_secretsmanager/test_secretsmanager.py
index df4f0f69e..d5abd6abd 100644
--- a/tests/test_secretsmanager/test_secretsmanager.py
+++ b/tests/test_secretsmanager/test_secretsmanager.py
@@ -3,11 +3,33 @@ from __future__ import unicode_literals
 import boto3
 
 from moto import mock_secretsmanager
+from botocore.exceptions import ClientError
 import sure  # noqa
+from nose.tools import assert_raises
 
 @mock_secretsmanager
 def test_get_secret_value():
     conn = boto3.client('secretsmanager', region_name='us-west-2')
 
+    create_secret = conn.create_secret(Name='java-util-test-password',
+                                       SecretString="foosecret")
     result = conn.get_secret_value(SecretId='java-util-test-password')
-    assert result['SecretString'] == 'mysecretstring'
+    assert result['SecretString'] == 'foosecret'
+
+@mock_secretsmanager
+def test_get_secret_that_does_not_exist():
+    conn = boto3.client('secretsmanager', region_name='us-west-2')
+
+    with assert_raises(ClientError):
+        result = conn.get_secret_value(SecretId='i-dont-exist')
+
+@mock_secretsmanager
+def test_create_secret():
+    conn = boto3.client('secretsmanager', region_name='us-east-1')
+
+    result = conn.create_secret(Name='test-secret', SecretString="foosecret")
+    assert result['ARN'] == (
+        'arn:aws:secretsmanager:us-east-1:1234567890:secret:test-secret-rIjad')
+    assert result['Name'] == 'test-secret'
+    secret = conn.get_secret_value(SecretId='test-secret')
+    assert secret['SecretString'] == 'foosecret'
diff --git a/tests/test_secretsmanager/test_server.py b/tests/test_secretsmanager/test_server.py
index 142e9fe7d..2f73ece07 100644
--- a/tests/test_secretsmanager/test_server.py
+++ b/tests/test_secretsmanager/test_server.py
@@ -7,7 +7,7 @@ import moto.server as server
 from moto import mock_secretsmanager
 
 '''
-Test the different server responses
+Test the different server responses for secretsmanager
 '''
 
 
@@ -17,11 +17,52 @@ def test_get_secret_value():
     backend = server.create_backend_app("secretsmanager")
     test_client = backend.test_client()
 
-    res = test_client.post('/',
-                           data={"SecretId": "test", "VersionStage": "AWSCURRENT"},
+    create_secret = test_client.post('/',
+                           data={"Name": "test-secret",
+                                 "SecretString": "foo-secret"},
+                           headers={
+                               "X-Amz-Target": "secretsmanager.CreateSecret"},
+                           )
+    get_secret = test_client.post('/',
+                           data={"SecretId": "test-secret",
+                                 "VersionStage": "AWSCURRENT"},
                            headers={
                                "X-Amz-Target": "secretsmanager.GetSecretValue"},
                            )
 
+    json_data = json.loads(get_secret.data.decode("utf-8"))
+    assert json_data['SecretString'] == 'foo-secret'
+
+@mock_secretsmanager
+def test_get_secret_that_does_not_exist():
+
+    backend = server.create_backend_app("secretsmanager")
+    test_client = backend.test_client()
+
+    get_secret = test_client.post('/',
+                           data={"SecretId": "i-dont-exist",
+                                 "VersionStage": "AWSCURRENT"},
+                           headers={
+                               "X-Amz-Target": "secretsmanager.GetSecretValue"},
+                           )
+    json_data = json.loads(get_secret.data.decode("utf-8"))
+    assert json_data['message'] == "Secrets Manager can't find the specified secret"
+    assert json_data['__type'] == 'ResourceNotFoundException'
+
+@mock_secretsmanager
+def test_create_secret():
+
+    backend = server.create_backend_app("secretsmanager")
+    test_client = backend.test_client()
+
+    res = test_client.post('/',
+                           data={"Name": "test-secret",
+                                 "SecretString": "foo-secret"},
+                           headers={
+                               "X-Amz-Target": "secretsmanager.CreateSecret"},
+                           )
+
     json_data = json.loads(res.data.decode("utf-8"))
-    assert json_data['SecretString'] == "mysecretstring"
+    assert json_data['ARN'] == (
+        'arn:aws:secretsmanager:us-east-1:1234567890:secret:test-secret-rIjad')
+    assert json_data['Name'] == 'test-secret'