diff --git a/heat/engine/resources/instance.py b/heat/engine/resources/instance.py
index c7ed05bdd..820141cee 100644
--- a/heat/engine/resources/instance.py
+++ b/heat/engine/resources/instance.py
@@ -434,10 +434,26 @@ class Instance(resource.Resource):
 
         return self.ipaddress or '0.0.0.0'
 
+    def _availability_zone(self):
+        '''
+        Return Server's Availability Zone, fetching it from Nova if necessary.
+        '''
+        availability_zone = self.properties[self.AVAILABILITY_ZONE]
+        if availability_zone is None:
+            try:
+                server = self.nova().servers.get(self.resource_id)
+                availability_zone = getattr(server,
+                                            'OS-EXT-AZ:availability_zone')
+            except Exception as e:
+                self.client_plugin().ignore_not_found(e)
+                return
+
+        return availability_zone
+
     def _resolve_attribute(self, name):
         res = None
         if name == self.AVAILABILITY_ZONE_ATTR:
-            res = self.properties[self.AVAILABILITY_ZONE]
+            res = self._availability_zone()
         elif name in self.ATTRIBUTES[1:]:
             res = self._ipaddress()
 
diff --git a/heat/tests/test_instance.py b/heat/tests/test_instance.py
index 49a38ad6f..92698c362 100644
--- a/heat/tests/test_instance.py
+++ b/heat/tests/test_instance.py
@@ -148,10 +148,13 @@ class InstancesTest(HeatTestCase):
         self.assertTrue(instance.id > 0)
 
         expected_ip = return_server.networks['public'][0]
+        expected_az = getattr(return_server, 'OS-EXT-AZ:availability_zone')
+
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicDnsName'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateDnsName'))
+        self.assertEqual(expected_az, instance.FnGetAtt('AvailabilityZone'))
 
         self.m.VerifyAll()
 
@@ -163,10 +166,13 @@ class InstancesTest(HeatTestCase):
         self.assertTrue(instance.id > 0)
 
         expected_ip = return_server.networks['public'][0]
+        expected_az = getattr(return_server, 'OS-EXT-AZ:availability_zone')
+
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicDnsName'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateDnsName'))
+        self.assertEqual(expected_az, instance.FnGetAtt('AvailabilityZone'))
 
         self.m.VerifyAll()
 
@@ -329,13 +335,28 @@ class InstancesTest(HeatTestCase):
         self.assertTrue(instance.id > 0)
 
         expected_ip = return_server.networks['public'][0]
+        expected_az = getattr(return_server, 'OS-EXT-AZ:availability_zone')
+
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateIp'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PublicDnsName'))
         self.assertEqual(expected_ip, instance.FnGetAtt('PrivateDnsName'))
+        self.assertEqual(expected_az, instance.FnGetAtt('AvailabilityZone'))
 
         self.m.VerifyAll()
 
+    def test_instance_create_resolve_az_attribute(self):
+        return_server = self.fc.servers.list()[1]
+        instance = self._setup_test_instance(return_server,
+                                             'create_resolve_az_attribute')
+        self.m.ReplayAll()
+        scheduler.TaskRunner(instance.create)()
+        expected_az = getattr(return_server, 'OS-EXT-AZ:availability_zone')
+        actual_az = instance._availability_zone()
+
+        self.assertEqual(expected_az, actual_az)
+        self.m.VerifyAll()
+
     def test_instance_create_image_name_err(self):
         stack_name = 'test_instance_create_image_name_err_stack'
         (tmpl, stack) = self._setup_test_stack(stack_name)
diff --git a/heat/tests/test_volume.py b/heat/tests/test_volume.py
index d514182ab..80519b999 100644
--- a/heat/tests/test_volume.py
+++ b/heat/tests/test_volume.py
@@ -219,11 +219,14 @@ class VolumeTest(BaseVolumeTest):
         nova.NovaClientPlugin._create().AndReturn(self.fc)
         self.m.StubOutWithMock(instance.Instance, 'handle_create')
         self.m.StubOutWithMock(instance.Instance, 'check_create_complete')
+        self.m.StubOutWithMock(instance.Instance, '_resolve_attribute')
         self.m.StubOutWithMock(vol.VolumeAttachment, 'handle_create')
         self.m.StubOutWithMock(vol.VolumeAttachment, 'check_create_complete')
 
         instance.Instance.handle_create().AndReturn(None)
         instance.Instance.check_create_complete(None).AndReturn(True)
+        instance.Instance._resolve_attribute(
+            'AvailabilityZone').MultipleTimes().AndReturn(None)
         cinder.CinderClientPlugin._create().AndReturn(
             self.cinder_fc)
         self.stub_ImageConstraint_validate()
diff --git a/heat/tests/v1_1/fakes.py b/heat/tests/v1_1/fakes.py
index 900b342e9..bed671177 100644
--- a/heat/tests/v1_1/fakes.py
+++ b/heat/tests/v1_1/fakes.py
@@ -109,6 +109,7 @@ class FakeHTTPClient(base_client.HTTPClient):
                                        "Image Version": "2.1"}},
                          {"id": "5678",
                           "name": "sample-server2",
+                          "OS-EXT-AZ:availability_zone": "nova2",
                           "OS-EXT-SRV-ATTR:instance_name":
                           "sample-server2",
                           "image": {"id": 2, "name": "sample image"},
@@ -163,6 +164,7 @@ class FakeHTTPClient(base_client.HTTPClient):
                           "name": "sample-server3",
                           "OS-EXT-SRV-ATTR:instance_name":
                           "sample-server3",
+                          "OS-EXT-AZ:availability_zone": "nova3",
                           "image": {"id": 3, "name": "sample image"},
                           "flavor": {"id": 3, "name": "m1.large"},
                           "hostId": "9e107d9d372bb6826bd81d3542a419d6",