diff --git a/aws/import_aws_iam_policy_test.go b/aws/import_aws_iam_policy_test.go
deleted file mode 100644
index 2dbd553bda7..00000000000
--- a/aws/import_aws_iam_policy_test.go
+++ /dev/null
@@ -1,88 +0,0 @@
-package aws
-
-import (
-	"fmt"
-	"testing"
-
-	"github.com/aws/aws-sdk-go/aws"
-	"github.com/aws/aws-sdk-go/aws/awserr"
-	"github.com/aws/aws-sdk-go/service/iam"
-
-	"github.com/hashicorp/terraform/helper/resource"
-	"github.com/hashicorp/terraform/terraform"
-)
-
-func testAccAwsIamPolicyConfig(suffix string) string {
-	return fmt.Sprintf(`
-resource "aws_iam_policy" "test_%[1]s" {
-    name = "test_policy_%[1]s"
-    path = "/"
-    description = "My test policy"
-    policy = <<EOF
-{
-  "Version": "2012-10-17",
-  "Statement": [
-    {
-      "Action": [
-        "ec2:Describe*"
-      ],
-      "Effect": "Allow",
-      "Resource": "*"
-    }
-  ]
-}
-EOF
-}
-`, suffix)
-}
-
-func TestAccAWSIAMPolicy_importBasic(t *testing.T) {
-	suffix := randomString(10)
-	resourceName := fmt.Sprintf("aws_iam_policy.test_%s", suffix)
-
-	resource.Test(t, resource.TestCase{
-		PreCheck:     func() { testAccPreCheck(t) },
-		Providers:    testAccProviders,
-		CheckDestroy: testAccCheckAWSPolicyDestroy,
-		Steps: []resource.TestStep{
-			{
-				Config: testAccAwsIamPolicyConfig(suffix),
-			},
-
-			{
-				ResourceName:      resourceName,
-				ImportState:       true,
-				ImportStateVerify: true,
-			},
-		},
-	})
-}
-
-func testAccCheckAWSPolicyDestroy(s *terraform.State) error {
-	iamconn := testAccProvider.Meta().(*AWSClient).iamconn
-
-	for _, rs := range s.RootModule().Resources {
-		if rs.Type != "aws_iam_policy" {
-			continue
-		}
-
-		// Try to get group
-		_, err := iamconn.GetPolicy(&iam.GetPolicyInput{
-			PolicyArn: aws.String(rs.Primary.ID),
-		})
-		if err == nil {
-			return fmt.Errorf("still exist.")
-		}
-
-		// Verify the error is what we want
-		ec2err, ok := err.(awserr.Error)
-		if !ok {
-			return err
-		}
-		if ec2err.Code() != "NoSuchEntity" {
-			return err
-		}
-	}
-
-	return nil
-}
diff --git a/aws/provider_test.go b/aws/provider_test.go
index f9d383f049d..b7f427897a0 100644
--- a/aws/provider_test.go
+++ b/aws/provider_test.go
@@ -112,6 +112,19 @@ func testAccCheckResourceAttrRegionalARN(resourceName, attributeName, arnService
 	}
 }
 
+// testAccCheckResourceAttrGlobalARN ensures the Terraform state exactly matches a formatted ARN without region
+func testAccCheckResourceAttrGlobalARN(resourceName, attributeName, arnService, arnResource string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		attributeValue := arn.ARN{
+			AccountID: testAccGetAccountID(),
+			Partition: testAccGetPartition(),
+			Resource:  arnResource,
+			Service:   arnService,
+		}.String()
+		return resource.TestCheckResourceAttr(resourceName, attributeName, attributeValue)(s)
+	}
+}
+
 // testAccGetAccountID returns the account ID of testAccProvider
 // Must be used returned within a resource.TestCheckFunc
 func testAccGetAccountID() string {
diff --git a/aws/resource_aws_iam_policy.go b/aws/resource_aws_iam_policy.go
index 33adf4f5c2e..a5c8449ba3a 100644
--- a/aws/resource_aws_iam_policy.go
+++ b/aws/resource_aws_iam_policy.go
@@ -2,13 +2,13 @@ package aws
 
 import (
 	"fmt"
+	"log"
 	"net/url"
 	"regexp"
+	"time"
 
 	"github.com/aws/aws-sdk-go/aws"
-	"github.com/aws/aws-sdk-go/aws/awserr"
 	"github.com/aws/aws-sdk-go/service/iam"
-
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/helper/schema"
 )
@@ -112,7 +112,9 @@ func resourceAwsIamPolicyCreate(d *schema.ResourceData, meta interface{}) error
 		return fmt.Errorf("Error creating IAM policy %s: %s", name, err)
 	}
 
-	return readIamPolicy(d, response.Policy)
+	d.SetId(*response.Policy.Arn)
+
+	return resourceAwsIamPolicyRead(d, meta)
 }
 
 func resourceAwsIamPolicyRead(d *schema.ResourceData, meta interface{}) error {
@@ -121,39 +123,93 @@ func resourceAwsIamPolicyRead(d *schema.ResourceData, meta interface{}) error {
 	getPolicyRequest := &iam.GetPolicyInput{
 		PolicyArn: aws.String(d.Id()),
 	}
+	log.Printf("[DEBUG] Getting IAM Policy: %s", getPolicyRequest)
 
-	getPolicyResponse, err := iamconn.GetPolicy(getPolicyRequest)
-	if err != nil {
-		if iamerr, ok := err.(awserr.Error); ok && iamerr.Code() == "NoSuchEntity" {
-			d.SetId("")
-			return nil
+	// Handle IAM eventual consistency
+	var getPolicyResponse *iam.GetPolicyOutput
+	err := resource.Retry(1*time.Minute, func() *resource.RetryError {
+		var err error
+		getPolicyResponse, err = iamconn.GetPolicy(getPolicyRequest)
+
+		if d.IsNewResource() && isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+			return resource.RetryableError(err)
 		}
+
+		if err != nil {
+			return resource.NonRetryableError(err)
+		}
+
+		return nil
+	})
+
+	if isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+		log.Printf("[WARN] IAM Policy (%s) not found, removing from state", d.Id())
+		d.SetId("")
+		return nil
+	}
+
+	if err != nil {
 		return fmt.Errorf("Error reading IAM policy %s: %s", d.Id(), err)
 	}
 
+	if getPolicyResponse == nil || getPolicyResponse.Policy == nil {
+		log.Printf("[WARN] IAM Policy (%s) not found, removing from state", d.Id())
+		d.SetId("")
+		return nil
+	}
+
+	d.Set("arn", getPolicyResponse.Policy.Arn)
+	d.Set("description", getPolicyResponse.Policy.Description)
+	d.Set("name", getPolicyResponse.Policy.PolicyName)
+	d.Set("path", getPolicyResponse.Policy.Path)
+
+	// Retrieve policy
+
 	getPolicyVersionRequest := &iam.GetPolicyVersionInput{
 		PolicyArn: aws.String(d.Id()),
 		VersionId: getPolicyResponse.Policy.DefaultVersionId,
 	}
+	log.Printf("[DEBUG] Getting IAM Policy Version: %s", getPolicyVersionRequest)
 
-	getPolicyVersionResponse, err := iamconn.GetPolicyVersion(getPolicyVersionRequest)
-	if err != nil {
-		if iamerr, ok := err.(awserr.Error); ok && iamerr.Code() == "NoSuchEntity" {
-			d.SetId("")
-			return nil
+	// Handle IAM eventual consistency
+	var getPolicyVersionResponse *iam.GetPolicyVersionOutput
+	err = resource.Retry(1*time.Minute, func() *resource.RetryError {
+		var err error
+		getPolicyVersionResponse, err = iamconn.GetPolicyVersion(getPolicyVersionRequest)
+
+		if isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+			return resource.RetryableError(err)
 		}
-		return fmt.Errorf("Error reading IAM policy version %s: %s", d.Id(), err)
+
+		if err != nil {
+			return resource.NonRetryableError(err)
+		}
+
+		return nil
+	})
+
+	if isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+		log.Printf("[WARN] IAM Policy (%s) not found, removing from state", d.Id())
+		d.SetId("")
+		return nil
 	}
 
-	policy, err := url.QueryUnescape(*getPolicyVersionResponse.PolicyVersion.Document)
 	if err != nil {
-		return err
+		return fmt.Errorf("Error reading IAM policy version %s: %s", d.Id(), err)
 	}
-	if err := d.Set("policy", policy); err != nil {
-		return err
+
+	policy := ""
+	if getPolicyVersionResponse != nil && getPolicyVersionResponse.PolicyVersion != nil {
+		var err error
+		policy, err = url.QueryUnescape(aws.StringValue(getPolicyVersionResponse.PolicyVersion.Document))
+		if err != nil {
+			return fmt.Errorf("error parsing policy: %s", err)
+		}
 	}
 
-	return readIamPolicy(d, getPolicyResponse.Policy)
+	d.Set("policy", policy)
+
+	return nil
 }
 
 func resourceAwsIamPolicyUpdate(d *schema.ResourceData, meta interface{}) error {
@@ -163,9 +219,6 @@ func resourceAwsIamPolicyUpdate(d *schema.ResourceData, meta interface{}) error
 		return err
 	}
 
-	if !d.HasChange("policy") {
-		return nil
-	}
 	request := &iam.CreatePolicyVersionInput{
 		PolicyArn:      aws.String(d.Id()),
 		PolicyDocument: aws.String(d.Get("policy").(string)),
@@ -175,7 +228,8 @@ func resourceAwsIamPolicyUpdate(d *schema.ResourceData, meta interface{}) error
 	if _, err := iamconn.CreatePolicyVersion(request); err != nil {
 		return fmt.Errorf("Error updating IAM policy %s: %s", d.Id(), err)
 	}
-	return nil
+
+	return resourceAwsIamPolicyRead(d, meta)
 }
 
 func resourceAwsIamPolicyDelete(d *schema.ResourceData, meta interface{}) error {
@@ -190,12 +244,14 @@ func resourceAwsIamPolicyDelete(d *schema.ResourceData, meta interface{}) error
 	}
 
 	_, err := iamconn.DeletePolicy(request)
+	if isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+		return nil
+	}
+
 	if err != nil {
-		if iamerr, ok := err.(awserr.Error); ok && iamerr.Code() == "NoSuchEntity" {
-			return nil
-		}
 		return fmt.Errorf("Error deleting IAM policy %s: %#v", d.Id(), err)
 	}
+
 	return nil
 }
 
@@ -275,18 +331,3 @@ func iamPolicyListVersions(arn string, iamconn *iam.IAM) ([]*iam.PolicyVersion,
 	}
 	return response.Versions, nil
 }
-
-func readIamPolicy(d *schema.ResourceData, policy *iam.Policy) error {
-	d.SetId(*policy.Arn)
-	d.Set("description", policy.Description)
-	if err := d.Set("path", policy.Path); err != nil {
-		return err
-	}
-	if err := d.Set("name", policy.PolicyName); err != nil {
-		return err
-	}
-	if err := d.Set("arn", policy.Arn); err != nil {
-		return err
-	}
-	return nil
-}
diff --git a/aws/resource_aws_iam_policy_test.go b/aws/resource_aws_iam_policy_test.go
index e26a4b57db9..88da6113d29 100644
--- a/aws/resource_aws_iam_policy_test.go
+++ b/aws/resource_aws_iam_policy_test.go
@@ -3,51 +3,164 @@ package aws
 import (
 	"fmt"
 	"regexp"
-	"strings"
 	"testing"
 
 	"github.com/aws/aws-sdk-go/aws"
 	"github.com/aws/aws-sdk-go/service/iam"
+	"github.com/hashicorp/terraform/helper/acctest"
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/terraform"
 )
 
-func TestAWSPolicy_namePrefix(t *testing.T) {
+func TestAccAWSIAMPolicy_basic(t *testing.T) {
 	var out iam.GetPolicyOutput
+	rName := acctest.RandomWithPrefix("tf-acc-test")
+	resourceName := "aws_iam_policy.test"
 
 	resource.Test(t, resource.TestCase{
 		PreCheck:     func() { testAccPreCheck(t) },
 		Providers:    testAccProviders,
-		CheckDestroy: testAccCheckAWSPolicyDestroy,
+		CheckDestroy: testAccCheckAWSIAMPolicyDestroy,
 		Steps: []resource.TestStep{
 			{
-				Config: testAccAWSPolicyPrefixNameConfig,
+				Config: testAccAWSIAMPolicyConfigName(rName),
 				Check: resource.ComposeTestCheckFunc(
-					testAccCheckAWSPolicyExists("aws_iam_policy.policy", &out),
-					testAccCheckAWSPolicyGeneratedNamePrefix(
-						"aws_iam_policy.policy", "test-policy-"),
-					resource.TestCheckResourceAttr("aws_iam_policy.policy", "description", ""),
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					testAccCheckResourceAttrGlobalARN(resourceName, "arn", "iam", fmt.Sprintf("policy/%s", rName)),
+					resource.TestCheckResourceAttr(resourceName, "description", ""),
+					resource.TestCheckResourceAttr(resourceName, "name", rName),
+					resource.TestCheckResourceAttr(resourceName, "path", "/"),
+					resource.TestCheckResourceAttr(resourceName, "policy", `{"Version":"2012-10-17","Statement":[{"Action":["ec2:Describe*"],"Effect":"Allow","Resource":"*"}]}`),
 				),
 			},
+			{
+				ResourceName:      resourceName,
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
 		},
 	})
 }
 
-func TestAWSPolicy_invalidJson(t *testing.T) {
+func TestAccAWSIAMPolicy_description(t *testing.T) {
+	var out iam.GetPolicyOutput
+	rName := acctest.RandomWithPrefix("tf-acc-test")
+	resourceName := "aws_iam_policy.test"
+
 	resource.Test(t, resource.TestCase{
 		PreCheck:     func() { testAccPreCheck(t) },
 		Providers:    testAccProviders,
-		CheckDestroy: testAccCheckAWSPolicyDestroy,
+		CheckDestroy: testAccCheckAWSIAMPolicyDestroy,
 		Steps: []resource.TestStep{
 			{
-				Config:      testAccAWSPolicyInvalidJsonConfig,
+				Config: testAccAWSIAMPolicyConfigDescription(rName, "description1"),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					resource.TestCheckResourceAttr(resourceName, "description", "description1"),
+				),
+			},
+			{
+				ResourceName:      resourceName,
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
+		},
+	})
+}
+
+func TestAccAWSIAMPolicy_namePrefix(t *testing.T) {
+	var out iam.GetPolicyOutput
+	namePrefix := "tf-acc-test-"
+	resourceName := "aws_iam_policy.test"
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckAWSIAMPolicyDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAWSIAMPolicyConfigNamePrefix(namePrefix),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					resource.TestMatchResourceAttr(resourceName, "name", regexp.MustCompile(fmt.Sprintf("^%s", namePrefix))),
+				),
+			},
+			{
+				ResourceName:            resourceName,
+				ImportState:             true,
+				ImportStateVerify:       true,
+				ImportStateVerifyIgnore: []string{"name_prefix"},
+			},
+		},
+	})
+}
+
+func TestAccAWSIAMPolicy_path(t *testing.T) {
+	var out iam.GetPolicyOutput
+	rName := acctest.RandomWithPrefix("tf-acc-test")
+	resourceName := "aws_iam_policy.test"
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckAWSIAMPolicyDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAWSIAMPolicyConfigPath(rName, "/path1/"),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					resource.TestCheckResourceAttr(resourceName, "path", "/path1/"),
+				),
+			},
+			{
+				ResourceName:      resourceName,
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
+		},
+	})
+}
+
+func TestAccAWSIAMPolicy_policy(t *testing.T) {
+	var out iam.GetPolicyOutput
+	rName := acctest.RandomWithPrefix("tf-acc-test")
+	resourceName := "aws_iam_policy.test"
+	policy1 := "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:Describe*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+	policy2 := "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckAWSIAMPolicyDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config:      testAccAWSIAMPolicyConfigPolicy(rName, "not-json"),
 				ExpectError: regexp.MustCompile("invalid JSON"),
 			},
+			{
+				Config: testAccAWSIAMPolicyConfigPolicy(rName, policy1),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					resource.TestCheckResourceAttr(resourceName, "policy", policy1),
+				),
+			},
+			{
+				Config: testAccAWSIAMPolicyConfigPolicy(rName, policy2),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAWSIAMPolicyExists(resourceName, &out),
+					resource.TestCheckResourceAttr(resourceName, "policy", policy2),
+				),
+			},
+			{
+				ResourceName:      resourceName,
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
 		},
 	})
 }
 
-func testAccCheckAWSPolicyExists(resource string, res *iam.GetPolicyOutput) resource.TestCheckFunc {
+func testAccCheckAWSIAMPolicyExists(resource string, res *iam.GetPolicyOutput) resource.TestCheckFunc {
 	return func(s *terraform.State) error {
 		rs, ok := s.RootModule().Resources[resource]
 		if !ok {
@@ -73,60 +186,75 @@ func testAccCheckAWSPolicyExists(resource string, res *iam.GetPolicyOutput) reso
 	}
 }
 
-func testAccCheckAWSPolicyGeneratedNamePrefix(resource, prefix string) resource.TestCheckFunc {
-	return func(s *terraform.State) error {
-		r, ok := s.RootModule().Resources[resource]
-		if !ok {
-			return fmt.Errorf("Resource not found")
+func testAccCheckAWSIAMPolicyDestroy(s *terraform.State) error {
+	iamconn := testAccProvider.Meta().(*AWSClient).iamconn
+
+	for _, rs := range s.RootModule().Resources {
+		if rs.Type != "aws_iam_policy" {
+			continue
 		}
-		name, ok := r.Primary.Attributes["name"]
-		if !ok {
-			return fmt.Errorf("Name attr not found: %#v", r.Primary.Attributes)
+
+		_, err := iamconn.GetPolicy(&iam.GetPolicyInput{
+			PolicyArn: aws.String(rs.Primary.ID),
+		})
+
+		if isAWSErr(err, iam.ErrCodeNoSuchEntityException, "") {
+			continue
 		}
-		if !strings.HasPrefix(name, prefix) {
-			return fmt.Errorf("Name: %q, does not have prefix: %q", name, prefix)
+
+		if err != nil {
+			return err
 		}
-		return nil
+
+		return fmt.Errorf("IAM Policy (%s) still exists", rs.Primary.ID)
 	}
+
+	return nil
+}
+
+func testAccAWSIAMPolicyConfigDescription(rName, description string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_policy" "test" {
+  description = %q
+  name        = %q
+  policy      = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:Describe*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+}
+`, description, rName)
 }
 
-const testAccAWSPolicyPrefixNameConfig = `
-resource "aws_iam_policy" "policy" {
-	name_prefix = "test-policy-"
-	path = "/"
-  policy = <<EOF
-{
-  "Version": "2012-10-17",
-  "Statement": [
-    {
-      "Action": [
-        "ec2:Describe*"
-      ],
-      "Effect": "Allow",
-      "Resource": "*"
-    }
-  ]
-}
-EOF
-}
-`
-const testAccAWSPolicyInvalidJsonConfig = `
-resource "aws_iam_policy" "policy" {
-	name_prefix = "test-policy-"
-	path = "/"
-  policy = <<EOF
-  {
-    "Version": "2012-10-17",
-    "Statement": [
-      {
-        "Action": [
-          "ec2:Describe*"
-        ],
-        "Effect": "Allow",
-        "Resource": "*"
-      }
-    ]
-  }
-  EOF
-}
-`
+func testAccAWSIAMPolicyConfigName(rName string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_policy" "test" {
+  name   = %q
+  policy = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:Describe*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+}
+`, rName)
+}
+
+func testAccAWSIAMPolicyConfigNamePrefix(namePrefix string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_policy" "test" {
+  name_prefix = %q
+  policy      = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:Describe*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+}
+`, namePrefix)
+}
+
+func testAccAWSIAMPolicyConfigPath(rName, path string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_policy" "test" {
+  name   = %q
+  path   = %q
+  policy = "{\"Version\":\"2012-10-17\",\"Statement\":[{\"Action\":[\"ec2:Describe*\"],\"Effect\":\"Allow\",\"Resource\":\"*\"}]}"
+}
+`, rName, path)
+}
+
+func testAccAWSIAMPolicyConfigPolicy(rName, policy string) string {
+	return fmt.Sprintf(`
+resource "aws_iam_policy" "test" {
+  name   = %q
+  policy = %q
+}
+`, rName, policy)
+}