diff --git a/aws/resource_aws_lambda_function.go b/aws/resource_aws_lambda_function.go
index c10a3d4f7fbc..4a355afb8100 100644
--- a/aws/resource_aws_lambda_function.go
+++ b/aws/resource_aws_lambda_function.go
@@ -360,10 +360,8 @@ func resourceAwsLambdaFunctionCreate(d *schema.ResourceData, meta interface{}) e
 		params.Tags = tagsFromMapGeneric(v.(map[string]interface{}))
 	}
 
-	// IAM profiles can take ~10 seconds to propagate in AWS:
-	// http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/iam-roles-for-amazon-ec2.html#launch-instance-with-role-console
-	// Error creating Lambda function: InvalidParameterValueException: The role defined for the task cannot be assumed by Lambda.
-	err := resource.Retry(10*time.Minute, func() *resource.RetryError {
+	// IAM changes can take 1 minute to propagate in AWS
+	err := resource.Retry(1*time.Minute, func() *resource.RetryError {
 		_, err := conn.CreateFunction(params)
 		if err != nil {
 			log.Printf("[DEBUG] Error creating Lambda Function: %s", err)
@@ -386,7 +384,27 @@ func resourceAwsLambdaFunctionCreate(d *schema.ResourceData, meta interface{}) e
 		return nil
 	})
 	if err != nil {
-		return fmt.Errorf("Error creating Lambda function: %s", err)
+		if !isAWSErr(err, "InvalidParameterValueException", "Your request has been throttled by EC2") {
+			return fmt.Errorf("Error creating Lambda function: %s", err)
+		}
+		// Allow 9 more minutes for EC2 throttling
+		err := resource.Retry(9*time.Minute, func() *resource.RetryError {
+			_, err := conn.CreateFunction(params)
+			if err != nil {
+				log.Printf("[DEBUG] Error creating Lambda Function: %s", err)
+
+				if isAWSErr(err, "InvalidParameterValueException", "Your request has been throttled by EC2") {
+					log.Printf("[DEBUG] Received %s, retrying CreateFunction", err)
+					return resource.RetryableError(err)
+				}
+
+				return resource.NonRetryableError(err)
+			}
+			return nil
+		})
+		if err != nil {
+			return fmt.Errorf("Error creating Lambda function: %s", err)
+		}
 	}
 
 	d.SetId(d.Get("function_name").(string))
@@ -686,7 +704,8 @@ func resourceAwsLambdaFunctionUpdate(d *schema.ResourceData, meta interface{}) e
 	if configUpdate {
 		log.Printf("[DEBUG] Send Update Lambda Function Configuration request: %#v", configReq)
 
-		err := resource.Retry(10*time.Minute, func() *resource.RetryError {
+		// IAM changes can take 1 minute to propagate in AWS
+		err := resource.Retry(1*time.Minute, func() *resource.RetryError {
 			_, err := conn.UpdateFunctionConfiguration(configReq)
 			if err != nil {
 				log.Printf("[DEBUG] Received error modifying Lambda Function Configuration %s: %s", d.Id(), err)
@@ -704,7 +723,26 @@ func resourceAwsLambdaFunctionUpdate(d *schema.ResourceData, meta interface{}) e
 			return nil
 		})
 		if err != nil {
-			return fmt.Errorf("Error modifying Lambda Function Configuration %s: %s", d.Id(), err)
+			if !isAWSErr(err, "InvalidParameterValueException", "Your request has been throttled by EC2, please make sure you have enough API rate limit.") {
+				return fmt.Errorf("Error modifying Lambda Function Configuration %s: %s", d.Id(), err)
+			}
+			// Allow 9 more minutes for EC2 throttling
+			err := resource.Retry(9*time.Minute, func() *resource.RetryError {
+				_, err := conn.UpdateFunctionConfiguration(configReq)
+				if err != nil {
+					log.Printf("[DEBUG] Received error modifying Lambda Function Configuration %s: %s", d.Id(), err)
+
+					if isAWSErr(err, "InvalidParameterValueException", "Your request has been throttled by EC2, please make sure you have enough API rate limit.") {
+						log.Printf("[DEBUG] Received %s, retrying UpdateFunctionConfiguration", err)
+						return resource.RetryableError(err)
+					}
+					return resource.NonRetryableError(err)
+				}
+				return nil
+			})
+			if err != nil {
+				return fmt.Errorf("Error modifying Lambda Function Configuration %s: %s", d.Id(), err)
+			}
 		}
 
 		d.SetPartial("description")